I am swamped in debt- HELP!

katsu · 29 December 2023 at 10:32AM

wanttogetmylifetogether said:

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

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

Monthly Income Details[/b]
Monthly income after tax................ 1956
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 1956[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 635
Secured/HP loan repayments.............. 0
Rent.................................... 470

How long until this drops by the £50?

Management charge (leasehold property).. 0
Council tax............................. 224
Electricity............................. 50
Gas..................................... 80
Oil..................................... 0
Water rates............................. 40

Are you on a meter? If not, likely one will save you money.

Telephone (land line)................... 0
Mobile phone............................ 45

Is your handset paid off so you can do sim only and reduce this?

TV Licence.............................. 14
Satellite/Cable TV...................... 51

Can you cancel all the non-internet services?

Internet Services....................... 0
Groceries etc. ......................... 175
Clothing................................ 0
Petrol/diesel........................... 80
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................. 28
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 8

As you live alone and don't have dependents, are you required to have this for the shared equity or could you think of cancelling?

Other insurance......................... 9

I know this is only £9 but what is it?

Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1914[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 125000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(635)......4.1[b]
Total secured & HP debts...... 135000....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Aqua...........................999.......0.........0
Fluid..........................3000......0.........0
Creation.......................1700......0.........0
Capital one ...................1750......0.........0
Oplo...........................5000......0.........0
Zopa...........................13000.....0.........0
Virgin.........................1750......0.........0
Barclaycard....................700.......0.........0[b]
Total unsecured debts..........27899.....0.........- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 1,956
Expenses (including HP & secured debts). 1,914
Available for debt repayments........... 42
Monthly UNsecured debt repayments....... 0[b]
Amount left after debt repayments....... 42[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 125,000
Total HP & Secured debt................. -135,000
Total Unsecured debt.................... -27,899[b]
Net Assets.............................. -37,899[/b]

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

****** please note
*company car
*shared ownership house - hence rent and mortgage
*no APR - as all defaulted

money boat payday loan- I forgot - don’t know the amount as I don’t have the other letters but I assume around 1000- orginal £350 with interest 700. Plus court fees I guess 1000

Your situation is really tough. But Martin always says there are options.

You've got very little room in your budget so the places we can find savings aren't much, but let's give it a go. I've added some ideas above.

Do you watch a lot of TV? It's only £14 a month but if you don't watch it or use iplayer, then maybe cancel the license and add that to savings from satellite package?

Can you get a second job? Uber or deliveroo type work or local pizza delivery or a few hours a week in a pub for eg?

All the surveys and shopping receipt type apps don't add up to a lot of money but your budget is very tight so I wold start doing all those to get yourself some money for personal treats.

Is your place 2 bedroom? Can you take in a lodger for Monday to Friday or a few months full-time? You'd need to check it's permitted of course

If people don't buy cars for a while, do you want to stay in the work? It's OK either way but worth thinking about maybe?

sourcrates · 29 December 2023 at 11:04AM

MrFrugalFever said:

Sorry to hear of your loss.

I'm unsure as to why you would have been advised NOT to consider an IVA, this is generally for people in your situation (especially home owners).

The OP only has £42 disposable income, and that figure is debatable, they simply don`t have enough money to make an IVA viable, minimum monthly IVA payment has to be at least £100.

Andyjflet · 29 December 2023 at 11:09AM

Thought I would add a bit more as out situations were/are similar.

1. I took a lodger Monday to Friday at £400 a month
2. Took extra work with Post Office Xmas casuals and Amazon Flex
3. Sold all I could, lived minimalistic
4. Cut all TV licence and other subscriptions

I also focused on my health, ate better and started running (lost 3 stone)

MrFrugalFever · 29 December 2023 at 12:11PM

sourcrates said:

MrFrugalFever said:

Sorry to hear of your loss.

I'm unsure as to why you would have been advised NOT to consider an IVA, this is generally for people in your situation (especially home owners).

The OP only has £42 disposable income, and that figure is debatable, they simply don`t have enough money to make an IVA viable, minimum monthly IVA payment has to be at least £100.

Ah I see, I did not realise they had minimum monthly payments of that much. Yes there's not much trimming of any fat on the SOA, the biggest expense is Mortgage AND Rent & Council Tax, that's what is really hurting the monthly income.

MrFrugalFever · 29 December 2023 at 12:13PM

Andyjflet said:

Morning and well done for posting, I too am a car salesman, and yes its been tough when that basic isnt supported by walk ins and phone enquiries, the good news is, as you know, there is still something you can do about it. From a professional point of view, I'm 55 and been selling all my life, my earnings were £64k last year.

Can you move to another dealer for a higher basic? I went to £25k at a dealer group and now £35k basic as a sales manager. GSM is £50k basic.
Can you use your time to upsell Gap and Gard on all deals? Are you honestly talking to all customers about it.
I did extra days in the office when I was in debt, I worked event weekends even though I was rota off.
Can you get a promotion in the area to sales manager and increase the basic?
Change your selling style to increase your conversion rate?

I followed the Dave Ramsey Baby steps and got out of debt.

The market is picking up so I think this year will be better for sure!

I too am in same sales environment, on the positive / flip side, its got the potential to really increase earnings and get the OP out of debt in no time, they only need a couple of bumper years of take home £3-4k monthly (fairly achievable in the environment with hard work) and debt is virtually gone.

wanttogetmylifetogether · 29 December 2023 at 12:40PM

fatbelly said:

wanttogetmylifetogether said:

fatbelly said:

Council tax seems very high for a single adult. Something going on there?

I am behind on payments and thats the increased payment to stop it going to court.

Rent is also higher as I have 2500 in rent arrears, so paying off another 50 a month

Those are both priority debts so it is right to pay them preferentially.

if you are considering insolvency then you can stop paying the council tax.

It would be a calculated risk but with 10k negative equity you could consider bankruptcy. The only problem would be if house prices rose sharply in the 3 years they have to deal with it

This is what worries me as i live in a pretty unique property as as a firsttime buyer - shared ownership, detached, freehold, with balcony garden parking 2 bed it will likely have a lot of interest. I was one on 19 applicants for the property so as soon as the housing market picks up, likely the price will go up and beyond what I paid for it.

wanttogetmylifetogether · 29 December 2023 at 12:46PM

MrFrugalFever said:

Sorry to hear of your loss.

I'm unsure as to why you would have been advised NOT to consider an IVA, this is generally for people in your situation (especially home owners).

How does your company show the company car, is it fed in as 'income' then taken out as tax on your payslip due to being an active demonstrator or is it a fixed monthly payment via credit sale as just your car? If the latter, they'll check Insolvency register and you will no longer be eligible. Factor this in if a car is required. In most cases if going the Bankruptcy/IVA route you'll be able to keep a car up to market value of £3,000 I believe.

As your pay is variable, an IVA could be worse for you because bumper months will be treated like windfalls.

There's definitely a route out for you but not without consequence. The other thing that may need to be checked/considered for insolvency - depending on which manufacturer you represent, may exclude you from selling finance or proposing and managing finance proposals at least.

Have you tried self-managing these debts first by writing to all creditors (non-priority debts) and offering token monthly gestures?

Whichever route you decide, try to build up an emergency fund of at least £1,000.

Thank you for your comment, i beleive its becuase IVA's have minimum of £100 payment, and with being on a variabable wage, if they set it at £1900, and £100 payment. If one month I then earn say £2500- i have to pay 50% of the 'extra' commission I earn towards the IVA. Which if I can get my earning up, could be a whole chunk of money. And in step changes view, I could be doing another route thats not insolvency.

My company car is a taxable benefit so my tax code is lower (596l) i think off the top of my head. So I don't think it can be taken off me.

Step change have said about applying for breathing space for 3 months just to figure out my plan, then make £1 gestures (for max 1 year) until I can plan my route.

They also mentioned asking the council to see if I can roll the 'deficit' of this year over to next for the CT, however they said its unlikely.

wanttogetmylifetogether · 29 December 2023 at 12:52PM

Andyjflet said:

Morning and well done for posting, I too am a car salesman, and yes its been tough when that basic isnt supported by walk ins and phone enquiries, the good news is, as you know, there is still something you can do about it. From a professional point of view, I'm 55 and been selling all my life, my earnings were £64k last year.

Can you move to another dealer for a higher basic? I went to £25k at a dealer group and now £35k basic as a sales manager. GSM is £50k basic.
Can you use your time to upsell Gap and Gard on all deals? Are you honestly talking to all customers about it.
I did extra days in the office when I was in debt, I worked event weekends even though I was rota off.
Can you get a promotion in the area to sales manager and increase the basic?
Change your selling style to increase your conversion rate?

I followed the Dave Ramsey Baby steps and got out of debt.

The market is picking up so I think this year will be better for sure!

Thank you for your comment. I have just receive a promotion (not sure why I haven't hit any of my targets- i assume its a retention plan) SO my basic is now £26k rather than the 22,500 it was before. This was my first pay check with that.

I think, yes, you are right, certainly my performance has peeked and troughed through my grieving process, when I get back on the 2nd I need to go 'in' and just push for everything. Good idea about working extra days, certainly something to think about.

Hopefully it does pick up and I certainly need it.

wanttogetmylifetogether · 29 December 2023 at 12:56PM

katsu said:

wanttogetmylifetogether said:

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

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

Monthly Income Details[/b]
Monthly income after tax................ 1956
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 1956[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 635
Secured/HP loan repayments.............. 0
Rent.................................... 470

How long until this drops by the £50?

Management charge (leasehold property).. 0
Council tax............................. 224
Electricity............................. 50
Gas..................................... 80
Oil..................................... 0
Water rates............................. 40

Are you on a meter? If not, likely one will save you money.

Telephone (land line)................... 0
Mobile phone............................ 45

Is your handset paid off so you can do sim only and reduce this?

TV Licence.............................. 14
Satellite/Cable TV...................... 51

Can you cancel all the non-internet services?

Internet Services....................... 0
Groceries etc. ......................... 175
Clothing................................ 0
Petrol/diesel........................... 80
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................. 28
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 8

As you live alone and don't have dependents, are you required to have this for the shared equity or could you think of cancelling?

Other insurance......................... 9

I know this is only £9 but what is it?

Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1914[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 125000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(635)......4.1[b]
Total secured & HP debts...... 135000....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Aqua...........................999.......0.........0
Fluid..........................3000......0.........0
Creation.......................1700......0.........0
Capital one ...................1750......0.........0
Oplo...........................5000......0.........0
Zopa...........................13000.....0.........0
Virgin.........................1750......0.........0
Barclaycard....................700.......0.........0[b]
Total unsecured debts..........27899.....0.........- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 1,956
Expenses (including HP & secured debts). 1,914
Available for debt repayments........... 42
Monthly UNsecured debt repayments....... 0[b]
Amount left after debt repayments....... 42[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 125,000
Total HP & Secured debt................. -135,000
Total Unsecured debt.................... -27,899[b]
Net Assets.............................. -37,899[/b]

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

****** please note
*company car
*shared ownership house - hence rent and mortgage
*no APR - as all defaulted

money boat payday loan- I forgot - don’t know the amount as I don’t have the other letters but I assume around 1000- orginal £350 with interest 700. Plus court fees I guess 1000

Your situation is really tough. But Martin always says there are options.

You've got very little room in your budget so the places we can find savings aren't much, but let's give it a go. I've added some ideas above.

Do you watch a lot of TV? It's only £14 a month but if you don't watch it or use iplayer, then maybe cancel the license and add that to savings from satellite package?

Can you get a second job? Uber or deliveroo type work or local pizza delivery or a few hours a week in a pub for eg?

All the surveys and shopping receipt type apps don't add up to a lot of money but your budget is very tight so I wold start doing all those to get yourself some money for personal treats.

Is your place 2 bedroom? Can you take in a lodger for Monday to Friday or a few months full-time? You'd need to check it's permitted of course

If people don't buy cars for a while, do you want to stay in the work? It's OK either way but worth thinking about maybe?

Thank you for your comment.

As a single person with zero cash, unfortunatly yes, I do watch a lot of tv, its pretty much the only thing that gives me comfort right now.

I'll have a look into amazon flex and deliveroo certainly worth looking into.

Any apps you can recommend?

I would have a lodger but my second bedroom is off of my bedroom so not too sure how I feel about that, plus I dont think i'm allowed with the shared ownership

wanttogetmylifetogether · 29 December 2023 at 12:59PM

MrFrugalFever said:
I too am in same sales environment, on the positive / flip side, its got the potential to really increase earnings and get the OP out of debt in no time, they only need a couple of bumper years of take home £3-4k monthly (fairly achievable in the environment with hard work) and debt is virtually gone.

I think this the most frustrating part as I know I can earn the extra income, and I know it will come, its just this interim period now where I have zero cash and a lot of creditors. Hopefully we are looking at 6months of this MAX.

I am swamped in debt- HELP!

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