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stuck in a debt spiral
allthe7s
Posts: 187 Forumite
I'm spiralling into debt again and I can't see a way out without having to ask for help which I am so embarrassed to have to do.
for reference I've been bankrupt previously. I was doing well and managed to get a mortgage last year.
I came into a lot of money but blew it all and am now massively struggling with living within my means again
The only thing I can think is to ask my parents to lend me enough to clear both credit cards (under £1000 but high interest) and then pay them back interest free. I am getting myself so worked up at the thought of this as they think I am managing my finances well now.
Earning more is not an option I'm currently in the best paid job I've ever had, and I do as much overtime as I'm allowed (not allowed a second job due to role).
for reference I've been bankrupt previously. I was doing well and managed to get a mortgage last year.
I came into a lot of money but blew it all and am now massively struggling with living within my means again
The only thing I can think is to ask my parents to lend me enough to clear both credit cards (under £1000 but high interest) and then pay them back interest free. I am getting myself so worked up at the thought of this as they think I am managing my finances well now.
Earning more is not an option I'm currently in the best paid job I've ever had, and I do as much overtime as I'm allowed (not allowed a second job due to role).
Preparing to go bankrupt April 2020
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Comments
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I can`t see two credit cards with balances that low been much of a deal breaker here, paying them off or just not paying them, won`t leave you that much better off surely ?
It likely to be your spending elsewhere that is causing the real issues, if you post up your SOA the forum can make suggestions for you.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
yeah thats the problem, I'm currently spending on them because my outgoings are more than my incoming and I can't seem to get a grip on it. I'll do an SOA tonightPreparing to go bankrupt April 20200
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Looks like a root and branch reform may be necessary then.
Look forward to seeing the SOA.
Don`t worry, there is always a way out.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
I personally wouldn’t ask your parents to pay off your cards. You will still be in debt to them and in my experience borrowing to and from family is problematic. If you are using the cards to live off you need to address that foremost. If you have under £1k of debt surely you could get a 0% interest card or was your bankruptcy recent? I would say you have a budgeting rather than debt problem as obviously you cannot continue to spend more than you earn. I look forward to seeing the soa. I would post it with as accurate figures as you can. Usually the overspending is groceries, takeaways and holidays.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
The 365 Day 1p Challenge 2025 #1 £667.95/£40.95
Save £12k in 2025 #1 £6000/£15000 -
This is my income including a payment from DH towards bills. Their car and phone and other personal bills are not included nor their wage.[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 3Number of children in household......... 1 adult sized teenNumber of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 2000Partners monthly income after tax....... 0Benefits................................ 158Other income............................ 400[b]Total monthly income.................... 2558[/b][b]Monthly Expense Details[/b]Mortgage................................ 585Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (leasehold property).. 0Council tax............................. 180Electricity............................. 150Gas..................................... 0Oil..................................... 0Water rates............................. 38Telephone (land line)................... 0Mobile phone............................ 34TV Licence.............................. 13.66Satellite/Cable TV...................... 11Internet Services....................... 35Groceries etc. ......................... 614Clothing................................ 25Petrol/diesel........................... 50Road tax................................ 1.66Car Insurance........................... 50Car maintenance (including MOT)......... 7.08Car parking............................. 1Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 160Medical (prescriptions, dentist etc).... 13.95Pet insurance/vet bills................. 72.75Buildings insurance..................... 0Contents insurance...................... 21Life assurance ......................... 35Other insurance......................... 0Presents (birthday, christmas etc)...... 125Haircuts................................ 10Entertainment........................... 250Holiday................................. 200Emergency fund.......................... 0Lotto................................... 16Takeaways............................... 60[b]Total monthly expenses.................. 2759.1[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 165000Shares and bonds........................ 0Car(s).................................. 7000Other assets............................ 5000[b]Total Assets............................ 177000[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 0........(585)......0[b]Total secured & HP debts...... 0.........-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRVirgin card....................1400......25........0Zopa...........................422.......29........34Capital one....................500.......25........0Family.........................7000......250.......0[b]Total unsecured debts..........9322......329.......- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 2,558Expenses (including HP & secured debts). 2,759.1Available for debt repayments........... -201.1Monthly UNsecured debt repayments....... 329[b]Amount short for making debt repayments. -530.1[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 177,000Total HP & Secured debt................. -0Total Unsecured debt.................... -9,322[b]Net Assets.............................. 167,678[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]Preparing to go bankrupt April 20200
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Presents and entertainment could be reduced dramatically.If you go down to the woods today you better not go alone.1
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Who is the third adult and what is their contribution to household bills -is that the other income?What else is your partner paying towards - does your SOA take that into account or is your wage covering pretty much all the household expenses?What is the family debt for?All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.0 -
I'm assuming your contents insurance includes building insurance? You need both, but even so, that figure looks high. My buildings + contents on a 2 up 2 down terrace (val around 400k) is 120 per year. It's always cheaper to pay insurance up front rather than monthly if you can get to a place to make that possible.
And, sorry to say, but cuts to groceries, takeaways and entertainment would free up a big chunk of money. And Lotto is unaffordable.
But even those trims to your outgoings may only bring you to break-even before servicing your unsecured debt. I'll leave it to those better qualified than me to advise on that debt0 -
In addition to the questions above, it's great that you've made a start on your SOA, but it's not clear what the amounts are for eg is that clothes for just you (ie the children pay their own), for just your entertainment or the whole family etc. This makes it difficult to know which are excessive. It's probably worth a note by each entry what this covers eg the house, two mobile contracts etcStatement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.phpFor free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.0
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UPDATED with more detail
This is my income including a payment from DH towards bills. Their car and phone and other personal bills are not included nor their wage.[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 3 DD 18 no income no contributions in full time education.Number of children in household......... 1 adult sized teenNumber of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 2000Partners monthly income after tax....... 0Benefits................................ 158Other income............................ 400[b] this is what DH contributes towards billsTotal monthly income.................... 2558[/b][b]Monthly Expense Details[/b]Mortgage................................ 585Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (leasehold property).. 0Council tax............................. 180Electricity............................. 150 (Inc gas too)Gas..................................... 0Oil..................................... 0Water rates............................. 38Telephone (land line)................... 0Mobile phone............................ 34 (mine & 1 teens phone, DH pays the other 2)TV Licence.............................. 13.66Satellite/Cable TV...................... 11Internet Services....................... 35Groceries etc. ......................... 614Clothing................................ 25 mine and teens clothes, most of theirs included in gifts.Petrol/diesel........................... 50Road tax................................ 1.66Car Insurance........................... 50Car maintenance (including MOT)......... 7.08Car parking............................. 1Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 160 (includes pocket money, bus fares for school etc)Medical (prescriptions, dentist etc).... 13.95Pet insurance/vet bills................. 72.75 (Includes grooming, insurance and vets)Buildings & Contents insurance........... 21Life insurance & critical care ............... 35Other insurance......................... 0Presents (birthday, christmas etc)...... 125Haircuts................................ 10Entertainment........................... 250 this is for all 4 of us.Holiday................................. 200Emergency fund.......................... 0Lotto................................... 16Takeaways............................... 60[b]Total monthly expenses.................. 2759.1[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 165000Shares and bonds........................ 0Car(s).................................. 7000Other assets............................ 5000[b]Total Assets............................ 177000[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 0........(585)......0[b]Total secured & HP debts...... 0.........-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRVirgin card....................1400......25........0Zopa...........................422.......29........34Capital one....................500.......25........0Family.........................7000......250.......0[b]Total unsecured debts..........9322......329.......- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 2,558Expenses (including HP & secured debts). 2,759.1Available for debt repayments........... -201.1Monthly UNsecured debt repayments....... 329[b]Amount short for making debt repayments. -530.1[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 177,000Total HP & Secured debt................. -0Total Unsecured debt.................... -9,322[b]Net Assets.............................. 167,678[/b]Preparing to go bankrupt April 20201
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