We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Got worried due to debts

Options
Hi all, great support here as always. Got lot of debts, now I have difficulty to pay minimum payments on credit cards and loan. Was actually trapped in balance transferred and eventually paying high interest after all offers expired, after all my income expenditure calculations I have got 200 pounds disposable money now every month and minimum payments of all credit cards and loan are around 950 pounds, total debts around 48k. All are unsecured, I have no house or any other asset, in house me and my wife with three children. Got car worth around 1300 pounds.
Please advise me the options as my nights are sleepless. Barclaycard, M&S card, Tesco and Lloyds loan.
«13

Comments

  • sourcrates
    sourcrates Posts: 31,520 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    edited 16 December 2017 at 7:24PM
    Hi John,

    An SOA is the normal starting point, (statement of affairs) however, from what you say, having no assets and a large debt, it could be some kind of insolvency, or bankruptcy, may be the answer.

    Do the SOA first, that`ll give us a better idea of where your at :

    http://www.stoozing.com/calculator/soa.php
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • What about IVA or dmp ?
  • sourcrates
    sourcrates Posts: 31,520 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    john3105 wrote: »
    What about IVA or dmp ?

    All options are open, but an SOA will narrow it down.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 600
    Partners monthly income after tax....... 0
    Benefits................................ 1120
    Other income............................ 0
    Total monthly income.................... 1720


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 580
    Management charge (leasehold property).. 0
    Council tax............................. 100
    Electricity............................. 50
    Gas..................................... 75
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 20
    Mobile phone............................ 30
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 20
    Groceries etc. ......................... 425
    Clothing................................ 50
    Petrol/diesel........................... 50
    Road tax................................ 20
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 45
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 15
    Haircuts................................ 15
    Entertainment........................... 15
    Holiday................................. 0
    Emergency fund.......................... 40
    Total monthly expenses.................. 1663



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1300
    Other assets............................ 0
    Total Assets............................ 1300


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    m&s............................13500.....350.......0
    barclaycard1...................14000.....260.......0
    barclayscard2..................5500......120.......0
    lloyds loan....................18000.....350.......0
    tesco credit...................1600......35........0
    Total unsecured debts..........52600.....1115......-



    Monthly Budget Summary

    Total monthly income.................... 1,720
    Expenses (including HP & secured debts). 1,663
    Available for debt repayments........... 57
    Monthly UNsecured debt repayments....... 1,115
    Amount short for making debt repayments. -1,058


    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,300
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -52,600
    Net Assets.............................. -51,300
  • Karonher
    Karonher Posts: 958 Forumite
    Part of the Furniture 500 Posts Name Dropper
    john3105 wrote: »
    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 600 Can you increas this?
    Partners monthly income after tax....... 0Can your partner work some hours - around yours and childcare?
    Benefits................................ 1120
    Other income............................ 0
    Total monthly income.................... 1720


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 580
    Management charge (leasehold property).. 0
    Council tax............................. 100
    Electricity............................. 50 This is high - can you shop around or turn things off?
    Gas..................................... 75 Same as electricity
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 20
    Mobile phone............................ 30 How many phones - look for £5 sim only - provider may agree to drop cost if you explain circumstances
    TV Licence.............................. 13
    Satellite/Cable TV...................... 0
    Internet Services....................... 20
    Groceries etc. ......................... 425 This is high - I am sure this could come down by up to £100
    Clothing................................ 50
    Petrol/diesel........................... 50
    Road tax................................ 20
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 45
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0 You need something here
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 15
    Haircuts................................ 15
    Entertainment........................... 15
    Holiday................................. 0
    Emergency fund.......................... 40
    Total monthly expenses.................. 1663



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1300
    Other assets............................ 0
    Total Assets............................ 1300


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    m&s............................13500.....350.......0
    barclaycard1...................14000.....260.......0
    barclayscard2..................5500......120.......0
    lloyds loan....................18000.....350.......0
    tesco credit...................1600......35........0
    Total unsecured debts..........52600.....1115......-



    Monthly Budget Summary

    Total monthly income.................... 1,720
    Expenses (including HP & secured debts). 1,663
    Available for debt repayments........... 57
    Monthly UNsecured debt repayments....... 1,115
    Amount short for making debt repayments. -1,058


    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,300
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -52,600
    Net Assets.............................. -51,300

    As the cut backs will not cover much of the shortfall, earning more seems to be a better option. Is there a reason for what looks like part time hours? Is there a reason why your wife does not work - even around your hours?
    Aiming to make £7,500 online in 2022
  • sourcrates
    sourcrates Posts: 31,520 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Over £1000 shortfall in payments, how are you managing to service these debts at present ?

    Its all very well saying you have to increase your income, but that's not as easy as it sounds, yes there may be plenty of seasonal work at present, but your debt is far too big for it to make much of a dent.

    You don't have much disposable income, so an IVA would not be possible on these figures, likewise a DMP would take forever.

    Based on this information i would say Bankruptcy is your only realistic option, you can go on putting sticking plasters on the open wound, but that wont heal it.

    Some hard decisions need to be made here, i suggest getting advice from stepchange/national debtline, see if they reach the same conclusion.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • thanks, only option is to minimise expenses, what should be possible disposable income for IVA, as self employed I think bankruptcy not in interest.

    Spoke to M&S credit card people few days ago, they are very helpful and sending income expenditure form to me. so will ask them to freeze interest with token payment for sometime.

    But on other hand BARCLAYCARD people are cruel, they are very rude and not helpful, I told them my 15 years history never missed any payments, I told them it will be difficult for me to pay next months minimum payment as financial difficulty and they took income expensive details similar which i mentioned here, The rude lady told me only option to make you default now, and talk to stepchange, you have 30 days, today i found my cards are blocked even still due time to pay minimum payment by 7th january 2018.
  • after all unfair dealing by barclaycard people, should i ignore them and make some emergency fund to deal with them after year or 2.
  • sourcrates
    sourcrates Posts: 31,520 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    john3105 wrote: »
    thanks, only option is to minimise expenses, what should be possible disposable income for IVA, as self employed I think bankruptcy not in interest.

    Right, understood, realistically you would need in the region of £200 plus surplus income a month, i`ve seen IVA`s for less than this, but various factors come into play, especially when your self employed and your income is erratic.

    I think a first step would be to try to cut back on your budget as much as you can, if extra work is available, take it, for a stop gap with the debts, stop paying them, and save the money up for an emergency fund, then in a few months, just pay each one a token payment (not a fan of token payments, but in your case it may just help).

    Seek advice as advised before.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Karonher wrote: »
    As the cut backs will not cover much of the shortfall, earning more seems to be a better option. Is there a reason for what looks like part time hours? Is there a reason why your wife does not work - even around your hours?

    3 young children,, so wife can not take time to work. its already enough work to take care of 3 young children.

    regarding food expenses, can reduced by £50, say £350,
    after all decrease expenses, can spare £200 as a disposable amount.

    If you think, I can talk to stepchange or just i wait to deal my self after getting default, i see in both cases i have to be defaulted anyway.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.