Help/ advice needed please

Brett88

Hi yes  i know we could save on  the food bill slightly   This also includes  e-liquid for us both and  nappies for 3 children.
I Just dont know what to do at all

kimwp

Don't worry, you will get through this.

As your income doesn't cover your living costs, let alone your debt repayments, it feels like you need to contact one of the debt charities and enter a formal arrangement with your creditors. Make sure to contact one of the charities and not one of the companies trying to make money out of you - try CAB, Stepchange, Payplan, National DebtLine.

You can (and should) cut back on certain things (suggested by posters above), but for the sake of not getting into further debt and ideally building up an emergency fund for appliance breakdowns etc. It doesn't feel like this is an accurate SOA given the number of children you have, so I'd recommend going through bank statements to get an accurate figure for each category. 

sourcrates

The OP cannot enter a formal arrangement with anyone, as they have no disposable income to draw on.

They are also homeowners with a £1,140 monetary deficit each month, in a house with no equity, so basically they are insolvent in all but name, even without the car, there would still be a deficit of around £800 a month.

A drastic cutback of your spending is needed, and its needed now, i assume you are currently paying these debts with credit cards or similar, i think you realise that cannot go on indefinetly, I would agree with fatbelly that you need to be informing your creditors of your situation, take any covid-19 payment breaks you can get, then continue with £1 token payments for the time being.

Long term you need to be increasing your income, and cut back on your spending, paying as much off the debts as you can, write and ask for interest to be frozen/stopped altogether, this is about as serious as it gets, the only other alternative is to sell your house and rent somewere, even then you will be left with a big shortfall to pay, you are short of options here unfortunatly.

Brett88

Hi this is the figure we have give myself
because if go through bank statements it would be double this as  we have been wreck-less spenders For a very long  time.
Trying to make a change   If  im going to be judged then this isn't the place for help.

kimwp

sourcrates said:

The OP cannot enter a formal arrangement with anyone, as they have no disposable income to draw on.

They are also homeowners with a £1,140 monetary deficit each month, in a house with no equity, so basically they are insolvent in all but name, even without the car, there would still be a deficit of around £800 a month.

@sourcrates Oops, sorry, meant "formal arrangement" as taking formal steps, rather than continuing to struggle.

DiamondLil

Brett88 said:

Hi this is the figure we have give myself
because if go through bank statements it would be double this as  we have been wreck-less spenders For a very long  time.
Trying to make a change   If  im going to be judged then this isn't the place for help.

No-one on here will judge you Brett; most have been where you are now.

Brett88

Thank you
im willing to hand the car back but  the car is  with 7000

sourcrates

Brett at worst my debt was over 130k including a mortgage shortfall, my entire outlook on life had to change  to deal with it, it meant losing the house, and taking an IVA in my case, there is no quick fix when you are a homeowner.

You could just declare bankrupcy, but you may lose everything, although the positive aspect would be a fresh start with no debt for you all.

However, as your house has no equity, you may be allowed to keep it, you should take advice on this as a possible way forward -

https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/is-bankruptcy-right-for-you/will-you-lose-your-home-bankruptcy/

Theres no judgement here, just pointing out facts, people tend to gloss over normally.

Weimsrock

Brett88
Completely sympathise with you struggling with this over your head, especially with 3 young children. My advice is that you must seek professional advice from CAB or Stepchange in order to start the ball rolling to address the issue. I’d stop making payments on the non-priority debts (credit cards/ loans) and stash the money away as emergency funds because whatever the advice received is, your access to credit is going to turn off overnight very soon. You will find a way out of the situation for you and your family as long as you take steps to address it now. I wouldn’t be overly precious about the house either as at zero £ equity and a £580 mortgage payment this is a big liability, not to mention that house prices could drop further due to COVID. Be open to all options presented and as long as your 3 children your partner and you are healthy then that’s all that ultimately matters

kimwp

Brett88 said:

Hi this is the figure we have give myself
because if go through bank statements it would be double this as  we have been wreck-less spenders For a very long  time.
Trying to make a change   If  im going to be judged then this isn't the place for help.

Ok. If I have said something upsetting, then I really apologise. There is definitely no judgement from me, my only aim is to try to help you get out of this. I'm pretty sure that's the same for most people on here.

The advice is always to present an accurate SOA, because then that's when you can get the most helpful advice. For example, you might show a high spend in a certain area, but then the discussion will show that the high spend is not possible to reduce.

Have you looked at what bankruptcy would involve?