Urgent advice needed please. Large Credit Card debt.

Stateofart · 2 February 2024 at 2:42PM

Do you need to shell out so much money on medical?

Floss · 2 February 2024 at 4:29PM

Stateofart said:

Do you need to shell out so much money on medical?

I think the OP clarified why early on in their posts:

"I pay £240 for private healthcare as I have a medical issue that will require an operation in the next 12 months. This is an essential payment for me otherwise a 5 year wait on the NHS."

RAS · 2 February 2024 at 7:20PM

In the short-term. Medium term, hopefully the OP's health problem will resolve and they'll have more to pay off the debts.

NeverendingDMP · 3 February 2024 at 12:49AM

When you have your operation will you need time of work for a bit/long term? and do you have sick pay? You don't need to answer or give details but if you are stopping paying your debts you should ideally use this money to save an emergency fund and also potentially save for a money to pay the rent after my op fund as you won't be able to chuck it on a card till your better. Also best to pay your landlord at the moment and not the c cards. The c cards might write, ring text etc but in all honesty they don't do anything that's too shocking. The fear/guilt factor is harder to deal with initially and any of the letters they send people on here can explain for you if your worried.
There's also nothing to say you can't ask for breathing space then work your budget so you are offering 4-500 a month between them all till after your op so you have a safety cushion. At which point if you wanted to you could offer them the amount you have worked out you can afford long term

katsu · 3 February 2024 at 9:58PM

CardiffGirl88 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......... 0
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 3600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 3600[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1325
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 80
Gas..................................... 145
Oil..................................... 0
Water rates............................. 75
This seems very high. I pay a lot less and the council tax doesn't suggest your house is huge so are you on a meter? If so, check for leaks and if not, can you get one? I'm sure you can save maybe half this or more. I feel like it should be half of this amount.

Telephone (land line)................... 0
Mobile phone............................ 30
If you are out of contract a SIM only would be about 10 ish.
TV Licence.............................. 0
Satellite/Cable TV...................... 22
With no TV is this stuff like Netflix? Can you reduce this? Seems possible.

Internet Services....................... 20
Groceries etc. ......................... 300
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 35
If you no longer use the car can you scrap or sell it instead of repairing it? Is it really worth spending more money on the car? The car insurance is half your current travel costs.

Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 70
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 240
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 25
Life assurance ......................... 28
No partner or kids live with you so why do you need this? I would cancel so maybe think about why you think you need this for over £350 a year.

Other insurance......................... 8
Can you get this item on the contents insurance and save money? It is £100 a year.

Presents (birthday, christmas etc)...... 50
£600 a year seems a lot. Do you really need to spend it on other people?

Haircuts................................ 10
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 2651[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 300[b]
Total Assets............................ 1800[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
MBNA Credit Card 1.............11500.....400.......29.3
Halifax Credit Card............15300.....500.......27.85
M&S Credit Card................13300.....340.......20.9
First Direct Loan..............2758......138.......0
MBNA Credit Card 2.............12800.....360.......15.22
RBS Credit Card................12000.....270.......17.5
Virgin Credit Card.............12300.....340.......20.01[b]
Total unsecured debts..........79958.....2348......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,600
Expenses (including HP & secured debts). 2,651
Available for debt repayments........... 949
Monthly UNsecured debt repayments....... 2,348[b]
Amount short for making debt repayments. -1,399[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 1,800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -79,958[b]
Net Assets.............................. -78,158[/b]

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

You've got advice on how to sort the big plan so I'll just offer some thoughts on the spending to try and give you ideas of places you can free up a bit of cash.

You say a lot of it was covid living. Are you now putting nothing on the cards? Making sure you only spend what you earn from now on is a big part of getting free.

I hope the above suggestions/ questions help you think if you can save a bit more money.

Well done for facing this.

fatbelly · 4 February 2024 at 12:07PM

I've only just read this.

The landlord is your priority. He wasn't allowing you to stay rent free, he was allowing you to go into arrears. I would have advised against that plan. By stopping paying the non-priority debts you can catch up at nearly £1k per month. Hopefully you can do that before the operation. That really is the most important thing and my other points are less so

By not making a decision on the car you are spending money on a depreciating asset. If you are not going to use it then the safe option is to advertise it as 'spares or repair' and be open about the faults. There are plenty of amateur mechanics who love a project.Don't think that you have to repair it first, as that would probably not be cosr effective, but do give it a wash and a hoover! I presume it's SORN'd, though you haven't said

The plan to do a self-managed dmp is sensible for now but once your situation is stabilised, back at work and recovered, consider giving your self a clean start for £680. Obviously review this advice when you get there

https://www.nationaldebtline.org/fact-sheet-library/bankruptcy-ew/

sourcrates · 4 February 2024 at 1:33PM

Oh my, the worst that will happen if you don`t pay you credit cards, is you might get a CCJ, and an order to pay £5 per month, or whatever is affordable.

Non payment of rent will see you being made homeless !!

Rent is a priority payment, credit cards are not, you must get your priority payments in the right order, your current plan is shocking, and your landlord should bare part of the blame for suggesting you pay your credit cards over your rent.

Although it was likely done with good intentions, its entirely the wrong strategy to take.

Urgent advice needed please. Large Credit Card debt.

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