I need help

-taff

Your budget looks very very tight. You have no savings and you're spending more than you earn on debt servicing. Have you addressed the reasons you went into debt? Such as, the credit cards must have been used to buy something, was that something normal day to day expenses, or was it emergency items?

I assumen the medical is mostly contact lenses. You could switch to buying different contacts, such as gas permeable or soft, which would be a one off fee for the year. Even buying them as a one off and buying the solutions would be cheaper over the year by a couple of hundred pounds.

Can you increase working hours or get another part time job, can you do the surveys/swagbucks/competitions to see what you can earn, have you sold any unecessaries via ebay/facebook [preferably the latter as there aren't any fees]

You car is by far the most expensive thing. Could you get a smaller cheaper version?

FailedTeacher

From a quick glance I would wonder if the car expense can be reduced but I'm in agreement that things are looking tight around the margins. Is there options to work overtime? Is there any bonus' available in your work? Can you refinance to make cheaper repayments?

Moving back in with your parents until you are in a better financial position is an option to consider. But that can be difficult and not necessarily providing a significance improvement to your finances to be worth it.

Food needs to be prioritised along with other basic needs. Looking after yourself mentally can help improve things financially.

What about sharing accommodation?

Hope you find a solution.

Kindest Regards,

tealady

Just a few thoughts
1)Could you move to another HA property nearer to work?
2) Would they let you go on a water meter
3) What are your bank fees, is it an overdraft fee? What do you get for this money?

determined_new_ms

you are paying £204 for breakdown and phone cover you can get this at a better price. autoaid is £43 for the year and it is my understanding that phone ins isn't worth the paper it is written on! Ditch this bank acc and get a free one

do you *need* internet when you have a mobile? Surely you can use your allowance?

presents I would say you can't afford this right now

look at taking on pt work in evenings/weekends

I would speak to one of the debt charities about what your options are either a DMP or an IVA.

I would think giving up your social housing property should be the very last resort as you won't get one again

tallyhoh

I think the car is killing you. Can you find a job nearer home?

DawnW

I agree with DNMS, you are in a fortunate position to have a HA tenancy, and if you give it up, you would be very unlikely to get another, and this could disadvantage you in the future. As another poster mentioned, a transfer to nearer your work is a possibility though - can you look into this? Or look for a job nearer home? It is certainly your car expenses that stand out.

How did the debt accumulate? Was it through buying specific items (in which case can you sell some of them?) or was it through routine expenses such as those listed on your SOA? Have you been in touch with one of the free debt charities?

Wishing you all the best - I would be looking at the Stepchange website right now, you have options beyond abandoning your home.

robpw2

you can get mobile insurance from £1 a month and break down insurance doesn't have to be expensive - you should stop paying the bank £17 a month immediately and whats more you may be able to claim this money back if you can prove you weren't able to afford it,


could you perhaps consider buying a cheap car and avoiding the £160 odd a month to lease one

robpw2

Have you looked at ways to make extra money ?
can you do any extra part time work?
fill in surveys
sell items you may have on ebay etc

have you looked at switching your suppliers etc - all these things may get you some extra income

National_Debtline

Hi Helen


Welcome to the forum. Unfortunately your budget is extremely tight. Realistically can you really live off £50 per month for your food shopping? That's less than £2 per day and you must prioritise feeding yourself properly.


When deciding what to do next you will need to consider what's most important to you. Is it keeping your car, your flat or protecting your credit file? Unless you move back in with your parents it's looking unlikely you will be able to afford your credit cards. You can get in touch with one of the free debt advice agencies to talk through your options to deal with those. Good luck with everything.


Susie
@natdebtline

EssexHebridean

Helenforman wrote: »

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1075 This is quite a low income for someone living in their own home - anything you can do to increase? Have you checked you're not entitled to any benefits?
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1075

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 319.93

Management charge (leasehold property).. 0
Council tax............................. 93 Single person discount applied here?
And are you paying over 12 months rather than the standard 10?
Electricity............................. 23.36 Your utilities look a reasonable cost but as ever keep an eye to make sure you're on the right tariff
Gas..................................... 30
Oil..................................... 0
Water rates............................. 35.16 Is this metered? If not then it will almost certainly be worth switching, for you.
Telephone (land line)................... 0
Mobile phone............................ 22.99 If you're close to the end of your contract or already out of contract look to switch to SIM only.
TV Licence.............................. 12.12 Sure? I thought this had increased to 12.37 now - mine certainly has?
Satellite/Cable TV...................... 0
Internet Services....................... 17.99 Best value you can get? If you have data on your mobile contract can you use that and cancel the home internet connection?
Groceries etc. ......................... 50 I suspect not - this really would be incredibly low even for a single person.
Clothing................................ 0
Petrol/diesel........................... 100 Read Martin's guide about driving economically and also cut out ANY unneeded journeys - think about any times you can walk instead of taking the car.
Road tax................................ 0 Zero rated vehicle?
Car Insurance........................... 36
Car maintenance (including MOT)......... 0 Is EVERYTHING included in the lease agreement? Even things like tyres, wiper blades, screenwash?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 32.5 Bin the contract contact lenses for the time being - wear them less often and buy over the internet earning cashback as you do so.
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 7.16
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 Hate to say it but you might need to cut this for a while until you can increase your income.
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Car lease............................... 158.36 In hindsight taking this out was a real mistake on your income
Bank fees............................... 18 Is this an overdraft fee or a packaged bank account fee?
Total monthly expenses.................. 986.57

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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................3300......80........0 definitely on 0%? When does that rate finish?
Credit card....................2100......50........0 As above.
Total unsecured debts..........5400......130.......-

Monthly Budget Summary[/b]
Total monthly income.................... 1,075
Expenses (including HP & secured debts). 986.57
Available for debt repayments........... 88.43
Monthly UNsecured debt repayments....... 130
Amount short for making debt repayments. -41.57

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,400
Net Assets.............................. -5,400

First thing, grab whatever extra income you can to meet the shortfall - so surveys for example, won't earn you a fortune but might be enough to at least stop you being in negative. Can you increase hours at work? Get a job with a better hourly rate? The new year is always a good time to look to change employment as so many folk think about making a move at that time.

I think you need to have a long hard think about the car. Currently it's costing you nearly £300 a month that you simply don't have - do you *need* it or it it truthfully a want? Personally I think whoever let you take on a lease deal that was such a high percentage of your earnings after priority payments were taken account of should be taken outside, put against a wall and shot, but there you go. Nobody ever said pushers of car finance deals were ethical or responsible, did they! Cost up what your travel to/from work would cost using public transport and see how it compares.

There's not so much else to give in that SOA unfortunately. I take it when you say the debt has built up over the last few years this is as a result of just covering a shortfall each month? You're not still using cards I hope? Particularly if they are 0% cards using them for general spending is a really bad idea!