Advice Needed Please

Darren92

Hi  newbie here inneed of some sort of advice please.
Me and my wife are in some serious debt. We currently been paying small token payments to our debts  but we are still paying the mortgage  and secured loan. How long can i possible keep paying small payments.
The secured loan still has 72 payments to go if this helps. Cheers

Number of adults in household........... 2

Number of children in household......... 3

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 1650

Partners monthly income after tax....... 0

Benefits................................ 770

Other income............................ 0[b]

Total monthly income.................... 2420[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 602

Secured/HP loan repayments.............. 505

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 122

Electricity............................. 105

Gas..................................... 0

Oil..................................... 0

Water rates............................. 52

Telephone (land line)................... 0

Mobile phone............................ 90

TV Licence.............................. 12

Satellite/Cable TV...................... 25

Internet Services....................... 25

Groceries etc. ......................... 450

Clothing................................ 40

Petrol/diesel........................... 120

Road tax................................ 10

Car Insurance........................... 55

Car maintenance (including MOT)......... 30

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 20

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 17

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 40

Haircuts................................ 0

Entertainment........................... 50

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 2370[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 1

Other assets............................ 0[b]

Total Assets............................ 1[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 139000...(602)......2.49

Secured Debt.................. 23000....(505)......15.5[b]

Total secured & HP debts...... 162000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Joint Loan.....................19000.....281.......3.7

My loan........................13000.....305.......11.2

Store Credit...................1700......55........0[b]

Total unsecured debts..........33700.....641.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,420

Expenses (including HP & secured debts). 2,370

Available for debt repayments........... 50 Monthly UNsecured debt repayments....... 641[b]

Amount short for making debt repayments. -591[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 1

Total HP & Secured debt................. -162,000

Total Unsecured debt.................... -33,700[b]

Net Assets.............................. -195,699[/b]

sourcrates

Indefinitely if you have to, with only £50 disposable income your choices are very limited.

Your budget dosen`t look that bad, what you need is more income, you could possibly cut something from the groceries spend, but you are in a hell of a mess with those loans, long term you may want to look at debt mangement, its a tough one, if you can gather about £100 per month together and get the interest stopped, your still looking at a 30 year plus DMP, which really is unrealistic.

However once the secured loan has gone, you will be able to reduce that timescale conciderably, but thats 5 years away yet.

Token payments are all you can afford right now.

Darren92

If i just continue has i am by paying a £1 and contiune paying the secured loan  can anything  happen to me legally with the creditors.

Darren92

Morning all
Been up most of the night with worry and the reality of the situation.
What can the creditors do to me if i cant afford no payment for years to come  as my income is not going to improve in the distant future.

RAS

What is the secured debt, car or is it secured on the house?
And you need to include the house value

Darren92

Err house
house is around 160k

andys15

What was the secured loan for?  The interest rate is very high. 

How was you able to get in so much debt with such little income?  Have you lost an income?  

Darren92

Home improvements.
Ye lost alot of income so put me in a bad spot. Duno what to do pal

andys15

Why is the interest rate so high on the secured loan?  

You are going to need to speak to a debt charity. There is nothing in the SOA that is going to touch your debts. 

Your mobile phones are crazy in your situation, and you might be able to shave off a bit here and there but it won’t touch the sides. 

All you can do is try and up your income considerably, but even then you need to speak to professionals today. 

andys15

Looking at your SOA. If you binned all the non essentials. The phones, the internet, sky, entertainment, clothes, and take £100 of your grocery’s, then you would have an extra £290. You are still getting about £300 more into debt every month. 

What’s the car worth?  

RAS

You need to start by talking to one of the debt charities
You've no equity in the house and no way to pay off the unsecured debts in a reasonable time frame.
For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux
They'll understand your options and be able to help you.