Help!! I am 30k in debt and in desperate need of help

Joanne444

I am very new to this so please be kind.  I have been searching the net most of the day trying to see how I can start sorting my debt out.  It has been escalating for over 10 years, robbing Peter to pay Paul.  I have a full time job been with the company 10 years my salary is 29k take home £1,900 per month.  I have been renting for over 15 years as unable to get a mortgage 15 years ago and once your start renting you can never get out of it especially with debt.  I pay the minimum payments each month, i am not behind on any payments but once I have paid the minimum payment i am back using the card for food, fuel etc so am never ever going to reduce my debt.  I have been looking at DMP and IVA's but so worried i could loose the house i am renting if they find out how much debt i am in, then where will i be.  I am single and have two adult children, one still lives at home and pays me £300 per month.  No-one knows my situation i am far to embarrassed to talk to anybody hence why i am on here!!  Here's hoping someone can help please.

Moneyminded

Well done for taking the first step and realising that you have an issue. The next step is to get clarity over what you have coming in and how that is currently being spent. Have a look over your bank statements and complete a statement of affairs https://www.lemonfool.co.uk/financecalculators/soa.php people will then be able to offer advice specific to your circumstances. 

Willing2Learn

Hi Joanne444 and welcome to the forum 

In order to give advice, guidance and support, we need you to complete your Statement of Affairs (SOA).  This will list all your monthly income, expenses, debts and assets.  When you complete your SOA, please remember to click on the 'format for MSE' button near the bottom of the form, before you copy & paste the whole lot into this thread.

https://www.lemonfool.co.uk/financecalculators/soa.php

Edit:  Cross-posted with Moneyminded lol

-taff

One thing about completing your SOA is that it be currently accurate, not a wish list of budgeting, so go through your spends to see where you are spending money over the last three months for example.

ceb1995

Is there a possibility of your adult children contributing more? 

Joanne444

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 1929
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 300[b]
Total monthly income.................... 2229[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 725
Management charge (leasehold property).. 0
Council tax............................. 171
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 21
Telephone (land line)................... 0
Mobile phone............................ 24
TV Licence.............................. 13
Satellite/Cable TV...................... 64
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 21
Car Insurance........................... 27
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 70
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1636[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0[b]
Total Assets............................ 1000[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Barclaycard....................8000......190.......0
Pay Pal........................4000......120.......0
Virgin CC......................2500......30........0
Hitachi........................1000......257.......0
Halifax CC.....................1500......42........0
Argos..........................500.......15........0
Next...........................630.......32........0
JD Williams....................490.......30........0
Secure Trust Bank..............1000......35........0
Aqua CC........................700.......47........0
Lloyds CC......................1500......42........0[b]
Total unsecured debts..........21820.....840.......-  [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,229
Expenses (including HP & secured debts). 1,636
Available for debt repayments........... 593
Monthly UNsecured debt repayments....... 840[b]
Amount short for making debt repayments. -247[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -21,820[b]
Net Assets.............................. -20,820[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

monetxchange

Well done for making the first step of seeking help. The first thing I'd say is this doesn't seem to be an accurate SOA. No criticism. I know how overwhelming it is at the beginning. For example, you've put you don't spend anything at all on clothes, which you obviously do with JD Williams debt. Get 12 months of bank statements and add up everything you've spent in three last year for each category and then divide by 12.

Then we can advise where you can trim. The good news is you haven't got an insurmountable shortfall. Lots can be saved on to get you started. For example, getting rid of satellite TV, cutting down your utilities bills, stop with the excessive presents. The main thing is your adult child needs to contribute properly. £300 doesn't come close to covering their food, bills and board and it's good for them to learn how to pay their way.

You also need to get contents insurance. Imagine how much worse of you'd be if you lost everything you own and had to pay to get it all back again.

Don't worry. There's always a way forward.

Willing2Learn

My thoughts on your SOA:

Are your council tax payments spread across 10 or 12 months?
Are your water rates payments spread across 10 or 12 months?  Is it metered?
Are you stuck in a contract for your Satellite/Cable TV?  If not, then this could be greatly reduced.
You need to budget something each month toward clothing.
Your car maintenance costs (including MOT) are unrealistic.  This amount needs to be increased.
You need home contents insurance, to cover you against losses.
You could knock the buying of presents on the head while you pay down your debts.  Just let people know not to get you anything at the moment.
You need to budget something for Entertainment.
An Emergency Fund (EF) is probably the most important category.  It requires funding.  Having an EF means you do not have to rely on credit when something goes wrong.
Are your unsecured debts really all at 0% APR?

You could do a DMP.  I believe it would take 4 or 5 years to settle your accounts.  But your SOA needs to be accurate first.


I agree that your adult son/daughter who lives with you ideally needs to contribute the market rate for room and board...

Joanne444

Thank you for the replies, the debt with JD Williams, Next and Argos are accounts I opened to help me with Xmas and birthday presents, no-one knows about my debit.  My son has already mentioned he is thinking about moving out and living with his girlfriend (she doesn't pay any rent, so neither would he).  He is only with me because he knows how hard it is being on my own and trying to survive, if I ask him for the going rate he will definately move out, I will then be even more lonely and £300 down.  I have looked into renting a 2 bed property but the current market I would be paying more than £725 plus I would need to find 2 months deposit and also am sure they will do a credit check and that's not good, basically everything is rubbish and its all getting too much and each day its getting harder and harder.

Joanne444

Also, having a DMP will my employer need to know and also the company I rent my house with?  If I rent a new property will a DMP affect this, will they need to know?  I have looked into cashing my pension in (only 50) i cant do that until 55.

Willing2Learn

Joanne444, I know it is easy for me to say, but don't let it get to you.  I also rent and I previously self-managed a DMP.  I understand what you are saying about your son, so maybe it is best not to raise his rent. 

Take another look at your SOA.  If a debt solution is to work, then you need to have a realistic SOA.  If you unsure how much to budget for some of the categories, then you need to go through your annual statements to find out where your money is being spent.  You could also start keeping a spending, just to keep track. 


Don't worry.  It may feel that "basically everything is rubbish" and that "it is all getting too much", but a solution is possible if you tidy up your SOA.  Soon things will feel easier and easier.


To give you some 'breathing space', I suggest that you send to all your creditors a letter requesting that they freeze your accounts while you are seeking advice.  I recommend you request they are put on hold for 60 days.  You can use the letter template linked below:

https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx