Newbie in need of help!

Rach2186

Hi all,

I have been through all of the articles and made a checklist of things I need to do to hopefully get a handle on my debt.

A bit of backstory..I had no idea I was in debt until my husband left me and subsequently left me with a lot of unpaid council tax and phone contracts. The agreement between us was I would pay rent he would pay bills and I foolishly opened all accounts.

I owe 10k mostly with Equita and lowell. Lowell have been accommodating, equita have been a nightmare and refused all offers of repayment plans and I am constantly in fear of aggressive bailiffs.

Ex husband is of course not willing to help pay any of this, I am a student nurse with two young children living on a minimal bursary and tax credits.

Any advice RE equita? They are my priority debt at the moment as all other creditors have agreed to freeze interest for 12 months and accept £1 per month

I am getting shamefully close to cashing the childrens ISAs in to pay them off. Im fully willing to budget and work hard to get debt free asap!

All advice welcomed!!:D

sourcrates

Hi,

I assume equita are chasing the unpaid council tax, bayliffs have a habit of been awkward in order to get maximum money out of you, best advice I can give you is just to pay them whatever you can afford, dont engage with them at all, and certainly dont allow them access to your property.

Pay off as much as you can, as soon as you can, dont look to them to accept the payments, just pay and ignore the rhetoric, eventually it will be paid off, at your own pace, not theirs.

Rach2186

Thank you, as the other creditors are happily accepting £1pm for 12 months my priority is getting the equita debts cleared asap so once I've fully sorted my budget and cut costs whatever I have left will go to them

EssexHebridean

Welcome Rach - and sorry to hear that you've been left in the lurch by someone you had every right to trust - that sucks.

I'd say the first step is to put together your SOA (Statement of Affairs) as that will give you a proper written down budget to work to and also a clear picture of precisely what you can afford to throw at the debt. You'll find the link to the SOA calculator we recommend in my signature and also in the "Sticky" thread at the top of the board. Pop the completed SOA (Format for MSE when you've filled it in) in to this thread and we can take a look and see if there's any savings to be made that you may have missed.

Rach2186

Thank you, I have taken a day off to dedicate to sorting everything out. SOA is first on my list

Rach2186

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

Monthly Income Details
Monthly income after tax................ 580
Partners monthly income after tax....... 0
Benefits................................ 1670
Other income............................ 0
Total monthly income.................... 2250

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 177
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 35
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 47
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 175
Road tax................................ 0
Car Insurance........................... 90
Car maintenance (including MOT)......... 0
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 300
Haircuts................................ 30
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2386


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 7406.....(177)......11.6
Total secured & HP debts...... 7406......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,250
Expenses (including HP & secured debts). 2,386
Available for debt repayments........... -136
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -136

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -7,406
Total Unsecured debt.................... -0
Net Assets.............................. -7,406

I havent added the debts in yet as I am unburying my head and opening letters!

a_silver_lining

Hi Rach,

I just wanted to wish you the best of luck for the future. I've been in a similar position many years ago (although without children) and felt that it would be an endless journey. To be honest, just not having her in my life lifted such a weight that the financial difficulties she left didn't feel so heavy. You'll get there

Rach2186 wrote: »

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

Monthly Income Details
Monthly income after tax................ 580
Partners monthly income after tax....... 0
Benefits................................ 1670
Other income............................ 0
Total monthly income.................... 2250

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 177
Rent.................................... 950 Is there any possibility of you moving your family to a smaller home, or a cheaper part of town? Rent is almost half your income.
Management charge (leasehold property).. 0
Council tax............................. 35 As a student and the only adult in your home you should not be paying council tax. Contact the council and have payments stopped and claim back any money they owe you from the date your ex left
Electricity............................. 100 Even combined with gas this seems very high for the three of you. Are there arrears? Can you check back on bills and see if £100 is accurate?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 45 High for one contract. Is this nearing the end of a contract? Could you call them and see if you can reduce the cost of your contract, by say taking less data? And then when the contract ends get a pay as you go sim for £10ish.
TV Licence.............................. 12
Satellite/Cable TV...................... 47 This is an expense you could easily loose by watching iplayer catch up or freeview
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 175
Road tax................................ 0
Car Insurance........................... 90
Car maintenance (including MOT)......... 0
Car parking............................. 20 Can you park further out in free parking and walk in?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 300 This may be an expense you'll need to cut down until you have qualified. Even reducing it by a 3rd will be £1200 off your debt a year. Can you list out all the birthdays and christmas recipients and allocate a lower budget. Maybe buy in sales and through the year so you're getting cheaper bargains?
Haircuts................................ 30
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0 Something needs to be here, maybe your present £100 could move here for a year to build you a 1k fund for emergencies
Total monthly expenses.................. 2386


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 7406.....(177)......11.6
Total secured & HP debts...... 7406......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,250
Expenses (including HP & secured debts). 2,386
Available for debt repayments........... -136
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -136

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -7,406
Total Unsecured debt.................... -0
Net Assets.............................. -7,406

I havent added the debts in yet as I am unburying my head and opening letters!

I'm sure others will be along to help too

EssexHebridean

Comments in red as usual...

Rach2186 wrote: »

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

Monthly Income Details
Monthly income after tax................ 580
Partners monthly income after tax....... 0
Benefits................................ 1670 Have you checked this is everything you're entitled to?
Other income............................ 0
Total monthly income.................... 2250

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 177 How long to run on this?
Rent.................................... 950 Ouchy - this is a massive proportion of your income.
Management charge (leasehold property).. 0
Council tax............................. 35
Electricity............................. 100 Is this just electric or combined with gas?
Either way check your tariff is the best you can get and turn heating down a notch. If you're all electric and you're on economy 7 make sure you fully understand how it works.
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 45 This is high - look to ditch for SIM only as soon as you can
TV Licence.............................. 12 £12.37 I think?
Satellite/Cable TV...................... 47 TV, Landline & internet?
Internet Services....................... 0
Groceries etc. ......................... 300 You can reduce this a bit by careful shopping, meal planning and possibly altering where you shop.
Clothing................................ 50 Every month? You can cut that - essentials only for the littlies and a total amnesty for you for a while...
Petrol/diesel........................... 175 Read Martin's guide to driving economically and remember to shop about for best value fuel
Road tax................................ 0 Zero rated?
Car Insurance........................... 90 Best deal you can get? It's pretty high.
Car maintenance (including MOT)......... 0
Car parking............................. 20 Can this be cut by parking further away and walking?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 0Hopefully you've just forgotten this as I'd be worried if you insure your pet but not the rest of you & your kids worldly goods!
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 300 £300 a MONTH????? Please tell me that's annual...
Haircuts................................ 30 This is a lot for a monthly figure.
Entertainment........................... 20 Sure this is realistic?
Holiday................................. 0
Emergency fund.......................... 0 You need to get this sorted - aim for £500 as a starting point
Total monthly expenses.................. 2386


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 7406.....(177)......11.6
Total secured & HP debts...... 7406......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,250
Expenses (including HP & secured debts). 2,386
Available for debt repayments........... -136
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -136 Suspect this will improve when you correct the present figure... in which case the usual question - do you have the surplus that is then shown at the end of the month?

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -7,406
Total Unsecured debt.................... -0
Net Assets.............................. -7,406

I havent added the debts in yet as I am unburying my head and opening letters!

OK redo the SOA with anything you've forgotten (contents insurance!) and the correct presents figure. And in the meantime make a cuppa, sit down at the table and get those letters opened. What's the worst that could happen? I PROMISE you you'll feel better when they're not sitting there staring accusingly at you any more!

Baibelle well spotted on the Council tax! :T

Rach2186

Parking is essential, I commute quite far and am forced to use park and ride

On hold to sky as we speak trying to cancel contract

Presents is annual! My bad, I forgot to divide it by 12..ill amend that!

Electric is so high in this flat due to rubbish storage heaters. I have electric arrears which I am paying off within my bill

I live in a tiny flat as it is, that is the standard rent for around here unfortunately. I dont qualify for council housing nor can I afford to save for a deposit to move.

My contents insurance is included in my bank account.

Car insurance is high as I am a fairly new driver

I have a year left on my phone then I will be moving to pay as you go

My surplus is now showing as £234. Hopefully more once I have slashed costs elsewhere

I have £1300 in an isa for my children, I am debating using this to pay a chunk off, although the guilt at even thinking about this is eating me up!

I am now sat with a pile of letters ready to face this head on. Thank you for your support

Dobbibill

Good luck with sky.

When you have paid the arrears off on the Electric, do a comparison to see if you are able to get a better tariff. (also check with your LL that it's OK with them to switch)

Are you sure your contents is covered as part of your bank account? I've heard of Home Emergency cover with a fee paying account but not home insurance. (I could be wrong but do check if only for peace of mind).
Also if you do pay a fee for your bank account that will need to be added to your SOA.

Use cashback sites to try and reduce car insurance cost when the renewal is due.

You'll feel much better when the letter are opened and you can see what your dealing with - you've made a good start already with the SOA.

tallyhoh

I don't see why you shouldn't use the children's ISAs, it will be used to benefit them in the long run & you can repay when you have sorted the debts.