Debt Advice for new member

JIB

Hello everyone,

I am new to posting on the forum but have followed it closely for sometime. I am asking for help regarding my debts.

Figures -
Bank Loan - £4000
Credit cards - £8000
Overdraft - £2500
Short term Loans - £7000

Currently bring home each month - £1490

Now to explain how I got into this mess. I was made redundant a 3 years ago and have since taken on lesser paid roles which is when the short term loans became appealing (stupid I know but we all do stupid things when we are desperate.) However since then I have moved back home which has helped and I have been in my current job for about 9 months now earning the above amount. The issue is I can't shift the debt, I can't earn enough to shift the short term loans and begin on overdraft and credit cards.

Anyone have any suggestions on what I can do? I have checked my credit score and its currently 'fair' but no one will lend me any money. Also I am only 30 I don't want to go down the bankruptcy debt management help route as I know that will ruin any chance of me every being able to own my own home.

Thank you for any help you can offer it is really appreciated.

Jamie

Willing2Learn

Hi Jamie and welcome to the forum

If you are unable to 'shift the debt' on your current income, then you either need to increase your income by temporarily doing a second job, or you will need to default on your accounts so that the interest and fees are frozen, enabling you to make reduced repayments.

Either way, it would be useful to see your full Statement of Affairs (SOA). That way we will be able to give advice, support and guidance, targeted to your requirements.


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

JIB

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1486
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1486

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 388
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
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)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 438


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1
Other assets............................ 0
Total Assets............................ 1


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 4500.....(250)......3.3<
Loan...........................3000.....(138)......49.9
Total secured & HP debts...... 7500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax Credit Card............1200......33........19.9
HSBC Credit Card...............1500......37........21.9
Barclaycard....................5000......140.......21.9
satsuma........................116.......812.......535
satsuma........................36........362.......535
peachy.........................400.......100.......947
!!!!!!!!!!!!!..................627.......192.......1333
moneyboat......................800.......200.......939
cashasap.......................230.......199.......1271
mrlender.......................400.......151.......1239
Unclebuck......................300.......119.......1242
Onstride.......................609.......192.......315
My Jar.........................1412......116.......1081
Feratum........................412.......167.......1021
Total unsecured debts..........13042.....2820......-


Monthly Budget Summary
Total monthly income.................... 1,486
Expenses (including HP & secured debts). 438
Available for debt repayments........... 1,048
Monthly UNsecured debt repayments....... 2,820
Amount short for making debt repayments. -1,772

Personal Balance Sheet Summary
Total assets (things you own)........... 1
Total HP & Secured debt................. -7,500
Total Unsecured debt.................... -13,042
Net Assets.............................. -20,541

Willing2Learn

Thanks for completing your SOA. It is good that your family are allowing you live rent free without bills. It gives you a little breathing space.

The thing is though, and with respect, I do not think your SOA can be accurate. For example, if you own a car (on HP), then you must have associated costs for maintenance, MOT, insurance and parking.

Do you not pay for a mobile?

Also, what is the secured loan for? Is it secured against your car?

Do you not buy any food whatsoever? (I mean you must occasionally buy snacks, sandwich, coffee...that sort of thing).

Who cuts your hair, and is it free?

Are you not spending any money on presents for family birthdays etc?

fatbelly

There are a lot of payday lenders there. See what redress you can get

https://forums.moneysavingexpert.com/discussion/5289150/reclaiming-money-back-from-various-payday-loan-companies

then I think you need a debt management plan, and you should be able to get debt free in under 2 years. Your credit file will be rubbish for six years but you can use the other 4 to save a deposit.

One other thing - you said in your first post that you had a Bank Loan - £4000 and an Overdraft - £2500. I can't see either on your soa. Whoever they are with you need a bank account not with that bank, nor Halifax, HSBC or Barclays. This is so that your income remains secure and cannot be accessed by your creditors through right of set-off.

Karonher

If all your loan figures are right you have allocated £1174 pounds to pay Satsuma and the balance is only £152.

Is there anyway your family could help you out one more time? If they could stretch to lending you about £1000 you could add it to what you have over allocated and clear the payday loans in the next month or so.

[Deleted User]

If you've recently taken out the high risk short term loans, could you not try to return under the cooling off period? (Appreciate the SOA doesn't give age of debt) so if it's a case of just taken out and panic'd look into the cool off.