Need urgent debt advice and not sure where to start

jamiesmack

Hi all,

I don't know if this is in the right place, so please delete if its not.

I am really struggling with credit card debt, and I dont know how to get out of it. The debt started small, and has been creeping up slowly. I have around £11000 across 3 different credit cards, and I am really struggling to make the repayments.

My wife only thinks I have debts of around £3000 - £4000 at worst. I cant tell her the truth as our 4 yr old son passed away 12 months ago, and her mum passed away 3 months ago. I dont think she could handle this. As the repayments have crept up on our bank statement I have lied and told her I was paying extra to get them paid off quickly.

My wife works full time, earning £21000 p/a, but I am self employed. We have just relocated to a completely new area, so I am trying to establish the business from scratch again, meaning my income is very small indeed.

In addition to the credit card debt, I also have some hp finance on some business equipment, which I am managing to pay direct from the business account at the minute.

I dont know where to turn with this, and feel like I cant take any more. can anyone help?

worriedDan

Jamie, I am so sorry to read what you have been through. It's absolutely no wonder that finances have not been a priority, so don't beat yourself up. I can also totally understand why you have not told your wife. Ultimately, she will need to know, but I can understand why you have protected her from the full extent.

The good news is that there will be a solution for you. In the grand scheme of things, 11k is not a huge amount of money. Have you considered contacting Stepchange for some advice?

jamiesmack

Hi Dan,

Thank you for replying. I had looked at stepchange, but dont i need to speak to someone on the phone? I am incredibly nervous on the phone, and Im not sure it would help

Bewildered_Banshee

Hi
I'm so sorry to hear you've had such a bad time, and can understand you not wanting to worry your wife.

Step change are lovely to speak to but also have an online chat facility which I used whilst trying to get the courage to speak up.

Have you looked at transferring your c.c to a 0% card - might take some pressure off.

There are solutions out there and realising you've got a problem is a huge step.

I've found the help on here fantastic so don't be afraid to ask.

Good luck.

worriedDan

Hi Jamie,

They also offer a web chat facility that you could use?

EssexHebridean

Ahh Jamie didn't want to read and run - you've had so much to deal with. Well done for facing the situation head on and looking to get it resolved - I agree with the others that Stepchange's web chat facility is a great way forwards for you until you can get the nerve fully up to talk to them on the phone - that probably won't take as long as you think either - you've already faced the worst of it.

Maybe think about putting yourself together an SOA (Statement of Affairs) - you'll find a link to the template we recommend in the "Sticky" post at the top of this board - fill it in as accurate as you possibly can and post it back in here and we'll be able to see if there are any areas where you might be able to make savings that you've missed, too.

sourcrates

Hi Jamie,

Dont carry on struggling to make the minimum payments, there really is no need to do so, there are a number of debt solutions in place to help you.

All you have to do to access this help is to ask, its as simple as that.

Stepchange have an online "debt remedy tool", you just punch in your details, and it spits out a solution that may suit you, most likely it will be an informal debt management plan that will suit you the best, but other options may apply as well.

Debt affects a great many people, you are not the first, you wont be the last, the debt charities deal with this kind of thing every day, there is no judgement, most on here are, or have been, in the same place you are now.

You have to treat it like any other problem, it needs solving, it may seem like a mountain to climb right now, but you can have a DMP up and running by next month if you wish, the solutions are available, its deciding on the right one for you, then implementing it, it really is that simple, don't carry on struggling to make payments, when all they need to do is ask for help.

As mentioned above, a "statement of affairs" (SOA) will give us all a bit more information, and allow people to make positive suggestions on your situation :

http://www.stoozing.com/calculator/soa.php

jamiesmack

Sorry its taken so long to reply to you on the thread, Im afraid I lost my bottle for a while and buried my head in the sand.

Can I ask a bit more about debt management plans before I do my soa? If you enter into one of these, dont the creditors just keep pursuing you for the money? Im not sure I understand the benefit of them

[Deleted User]

The benefit is that you will have agreed a repayment plan with them, so they don't need to keep chasing you all the time.

jamiesmack

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 1200
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 70
Telephone (land line)................... 30
Mobile phone............................ 60
TV Licence.............................. 12.25
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 400
Clothing................................ 40
Petrol/diesel........................... 150
Road tax................................ 60
Car Insurance........................... 80
Car maintenance (including MOT)......... 20
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 18
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2108.25


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 10000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card debt tota..........17500.....0.........18.9
Total unsecured debts..........17500.....0.........-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 2,108.25
Available for debt repayments........... 91.75
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 91.75

Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,500
Net Assets.............................. -7,500

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

jamiesmack

My Income is set to rise significantly in the next 12 months, as my new business is only now getting established. Would this mean a dmp would be the best option for me, as I can then increase my repayments?