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Credit card debts

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  • Looking4silverlining
    Looking4silverlining Posts: 97 Forumite
    10 Posts First Anniversary Name Dropper
    Hi gang.

    My income is rough, it changes a bit but this was from last year so I could get an idea. This year will possibly be less.
    Some of the cards have interest free promotions (on part of the total amounts) for a few more months but because a lot of them are coming to an end this year Im panicking.

    Statement of Affairs and Personal Balance Sheet

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

    Monthly Income Details[/b]
    Monthly income after tax................ 938.95
    Partners monthly income after tax....... 0
    Benefits................................ 260
    Other income............................ 0[b]
    Total monthly income.................... 1198.95[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 270
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 90
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 45
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 30
    Groceries etc. ......................... 400
    Clothing................................ 5
    Petrol/diesel........................... 40
    Road tax................................ 30
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 38
    Car parking............................. 0
    Other travel............................ 5
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 12
    Haircuts................................ 0
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 1055[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 9000
    Other assets............................ 0[b]
    Total Assets............................ 9000[/b]
    [b]
    No Secured nor Hire Purchase Debts[/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Halifax Credit Card............4798......65........29.85
    MBNA Credit card...............2493......106.......24.66
    Barclaycard Credit ca..........5386......140.......17.83
    Barclays Bank overdra..........650.......0.........29.93
    BB Loan Santander..............4643......70.25.....5
    Tesco Credit card..............6169......126.......NaN
    Lloyds Credit card.............2491......64........23.85
    Lloyds Credit card.............3286......47........29.85[b]
    Total unsecured debts..........29916.....618.25....-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,198.95
    Expenses (including HP & secured debts). 1,055
    Available for debt repayments........... 143.95
    Monthly UNsecured debt repayments....... 618.25[b]
    Amount short for making debt repayments. -474.3[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 9,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -29,916[b]
    Net Assets.............................. -20,916[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • Martico
    Martico Posts: 1,178 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Thanks! I'll let others with better knowledge comment on next best step, but I suspect it will be to stop paying those non priority creditors and go forward with a DMP, saving the £143 monthly surplus you will then have for an emergency fund to help see you through until those debts default and you can start to offer token payments. On the budget, for which I am on more solid ground, even with adjustments you won't be able to service those debts as they stand.

    But it'd still be worth seeing if you can strengthen that budget. The items that stand out for me are your mobile phone bill and groceries spend. If you can move mobile onto a SIM-only, that can reduce from £45 to around £10. And groceries for one person can certainly reduce from £400 per month with some good shopping and meal planning. 

    But in all honesty, while those tweaks will be of some help, they won't be enough to bring your budget up to the level required to start meeting your debt obligations. 

    Wait for others to reply, many have more experience than me on the debt management process once it becomes unsustainable
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,087 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Is that groceries just for one person? That is high and could be reduced by using budget brands and meal planning. Why no council tax or water rates or contents insurance? No TV licence?

    At that level of debt and with your income I think you need to be looking at a debt solution like a DMP. As you have no house to protect bankruptcy could be an option but the car would have to go. I assume that is necessary for work. 
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  • EssexHebridean
    EssexHebridean Posts: 24,477 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Looking4silverlining said:
    Hi gang.

    My income is rough, it changes a bit but this was from last year so I could get an idea. This year will possibly be less. It would be better to do the SOA based on the lowest you expect your income to be, really.
    Some of the cards have interest free promotions (on part of the total amounts) for a few more months but because a lot of them are coming to an end this year Im panicking.

    Statement of Affairs and Personal Balance Sheet

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

    Monthly Income Details[/b]
    Monthly income after tax................ 938.95
    Partners monthly income after tax....... 0
    Benefits................................ 260 Have you checked you aren't entitled to anything else here?
    Other income............................ 0[b]
    Total monthly income.................... 1198.95[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 270 This is remarkably low - is that figure definitely correct?
    Management charge (leasehold property).. 0
    Council tax............................. 0 How come no council tax?
    Electricity............................. 90 Are you ensuring that accurate readings are being used for billing - that's a pretty low figure for someone on electricity-only these days. 
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0 How come nothing here?
    Telephone (land line)................... 0
    Mobile phone............................ 45 This is high and can definitely be reduced once the current contract ends.
    TV Licence.............................. 0 You never watch live TV or use iPlayer at all?
    Satellite/Cable TV...................... 0
    Internet Services....................... 30
    Groceries etc. ......................... 400 Goodness - this is very high! A definite saving to me made here - you ought to be able to halve that for a single person - think meal planning, cooking from scratch not buying pre-prepared and shopping from a list. 
    Clothing................................ 5
    Petrol/diesel........................... 40
    Road tax................................ 30 
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 38
    Car parking............................. 0
    Other travel............................ 5
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 20 Are you making use of a pre-paid prescription certificate if relevant to keep costs down?
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0 False economy not having this I'm afraid - this is one to get sorted out right away. If the worst should happen, future self will thank you for it! 
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 12
    Haircuts................................ 0 You never have a haircut at all? 
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0 You need to start saving something here[b]
    Total monthly expenses.................. 1055[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 9000
    Other assets............................ 0[b]
    Total Assets............................ 9000[/b]
    [b]
    No Secured nor Hire Purchase Debts[/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Halifax Credit Card............4798......65........29.85
    MBNA Credit card...............2493......106.......24.66
    Barclaycard Credit ca..........5386......140.......17.83
    Barclays Bank overdra..........650.......0.........29.93
    BB Loan Santander..............4643......70.25.....5
    Tesco Credit card..............6169......126.......NaN
    Lloyds Credit card.............2491......64........23.85
    Lloyds Credit card.............3286......47........29.85[b]
    Total unsecured debts..........29916.....618.25....-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,198.95
    Expenses (including HP & secured debts). 1,055
    Available for debt repayments........... 143.95
    Monthly UNsecured debt repayments....... 618.25[b]
    Amount short for making debt repayments. -474.3[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 9,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -29,916[b]
    Net Assets.............................. -20,916[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    the shortfall you have on the SOA is such that by the time the various bits that appear to have been missed are taken into account, there doesn't look like there is any chance of making a substantial enough saving to keep up the repayments as they are. Others have more knowledge than I do, but it looks like you MAY be a candidate for a DRO judging from your level of debt - perhaps @fatbelly or @sourcrates could give their views on this? (I should add that I don't know what the other conditions for a DRO are - hence tagging our resident experts in!) Failing that, a DMP (Debt Management Plan) could be a way forwards, as it is the payments to debt that are pushing you firmly into the red. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    Balance as at 31/08/25 = £ 95,450.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • fatbelly
    fatbelly Posts: 23,083 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    There's a 9k car in here. The limit in a DRO is 2k.

    The limit for surplus income is £75

    And the op is right up against the limit for debt total.
  • Looking4silverlining
    Looking4silverlining Posts: 97 Forumite
    10 Posts First Anniversary Name Dropper
    Martico said:
    Thanks! I'll let others with better knowledge comment on next best step, but I suspect it will be to stop paying those non priority creditors and go forward with a DMP, saving the £143 monthly surplus you will then have for an emergency fund to help see you through until those debts default and you can start to offer token payments. On the budget, for which I am on more solid ground, even with adjustments you won't be able to service those debts as they stand.

    But it'd still be worth seeing if you can strengthen that budget. The items that stand out for me are your mobile phone bill and groceries spend. If you can move mobile onto a SIM-only, that can reduce from £45 to around £10. And groceries for one person can certainly reduce from £400 per month with some good shopping and meal planning. 

    But in all honesty, while those tweaks will be of some help, they won't be enough to bring your budget up to the level required to start meeting your debt obligations. 

    Wait for others to reply, many have more experience than me on the debt management process once it becomes unsustainable
    Good morning.
    The groceries spend does kind of have everything in it, dog food, household stuff, medicines etc and Im accounting for getting bus's to the shops because I have to pay ULEZ on my van every time I go out of the door. The mobile phone bill is high, ill look into it. It was quite hard to work out because I am self employed so have lots of other costs that are supposed to be covered by work but work is so damn slow after Covid, so depressing.
  • EssexHebridean
    EssexHebridean Posts: 24,477 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    fatbelly said:
    There's a 9k car in here. The limit in a DRO is 2k.

    The limit for surplus income is £75

    And the op is right up against the limit for debt total.
    Blast - missed the car - sorry OP! Thanks Fatbelly! 


    Can you make sure that your shopping is always done on days when you are already using the van for work? That will reduce the travel aspect a bit. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    Balance as at 31/08/25 = £ 95,450.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Looking4silverlining
    Looking4silverlining Posts: 97 Forumite
    10 Posts First Anniversary Name Dropper
    enthusiasticsaver said:
    Is that groceries just for one person? That is high and could be reduced by using budget brands and meal planning. Why no council tax or water rates or contents insurance? No TV licence?

    At that level of debt and with your income I think you need to be looking at a debt solution like a DMP. As you have no house to protect bankruptcy could be an option but the car would have to go. I assume that is necessary for work. 
    Good morning.
    The groceries spend does kind of have everything in it, dog food, household stuff, medicines etc And I've accounted for my travel to and from the shops as my van has to pay ULEZ every time I go out.
    No council tax because I pay rent and the landlord says its paid for. The water is included in the rent and no I don't pay a TV licence these days. Contents insurance??? Ive never been in a position to afford anything like this. Its a long story. I don't feel that I want to spill my life out to everybody on here. Its all explainable. The car is not a car its my van that is my only way of earning income. Its looking more and more likely that I will have to sell the van.
  • Looking4silverlining
    Looking4silverlining Posts: 97 Forumite
    10 Posts First Anniversary Name Dropper
    fatbelly said:
    There's a 9k car in here. The limit in a DRO is 2k.

    The limit for surplus income is £75

    And the op is right up against the limit for debt total.
    Good morning.
    The £9k is my business van, the only thing I earn any money with. 
    Not sure what the op is?

  • Martico
    Martico Posts: 1,178 Forumite
    1,000 Posts Third Anniversary Name Dropper
    OP stands for "Original Poster", ie you
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