End of my tether

Lightattheendofthetunnel1978

Hi all. I’m really struggling with my debt that is spiralling out of control. I’ve had issues with gambling in the past but am resolving this. 

I have 4 credit cards and a loan of £9k totalling around £23k. 

I’m also going through a divorce where I will be getting some equity but when is another question. 

I just get paid and then have no money - when you have children that look to do things with you that becomes so difficult. 

Once I have cleared this debt I’ll actually have a good disposable income to treat the kids more. But it’s all I can think about and only seems to be increasing. Life is very hard right now. Sometimes it seems too much. I need some advice to try and turn my finances around as I’m constantly under pressure. 

Grumpelstiltskin

OK Welcome to the board.

If you can't afford to pay your unsecured debts then stop paying them

They come at the bottom of the list, you should pay essential debts, utilities, council tax etc and make sure you have enough to live on.

Start by reading this thread.
In Debt and Wannabe Debt Free? First Steps! — MoneySavingExpert Forum

Cancel all your direct debits for your debts now as it is the 1st of the month tomorrow.

tacpot12

Sorry to hear you are struggling. Have you checked that you are claiming any benefits you might be entitled to? You can use the benefits calculators available at entitledto.co.uk and turn2us.org.uk  

You should also check to see if there is any assistance available from your local council. Ours is still running their Household Support Fund that they started in the pandemic. 

You should probably post a Statement of Affairs on this thread - there is a tool at SOA Calculator (lemonfool.co.uk) - once your are happy with your SOA, you cselect the MSE button to create a SOA that you can copy and paste into the thread - the SOA Calculator gives you instructions on what to do.  

stu12345_2

treat the forum as an online friendly money solution service  where you always remain anonymous.
some questions. may I ask to be blunt.
do you have enough food until you get paid.
are you behind with rent mortgage utilities, tax, fines, 
are you maxed out on credit cards.
do you feel so low as it's a danger to your wellbeing 
are you eating and sleeping properly 

I think it's important not to just look at debt solutions , but to look at the mental stress it does, and divorce is the second most stressful thing in the world after death of a loved one 

money worries enter our thoughts multiple times a day, even multiple times an hour, sometimes it's during our sleep we can escape them.

I'm a straight talking guy on here, I can be blunt, buts that's just me, I'm still in debt myself but have solutions to sort it and doing so 

but it still enters my thoughts a lot.
 Sending you my best wishes, hang in there!!

Lightattheendofthetunnel1978

[tt][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 2

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

Monthly Income Details[/b]

Monthly income after tax................ 2100

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

Benefits................................ 0

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

Total monthly income.................... 2100[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 625

Management charge (leasehold property).. 0

Council tax............................. 112

Electricity............................. 30

Gas..................................... 39

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

Water rates............................. 13

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

Mobile phone............................ 25

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 26

Groceries etc. ......................... 100

Clothing................................ 0

Petrol/diesel........................... 210

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

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

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

Childcare/nursery....................... 0

Other child related expenses............ 343

Medical (prescriptions, dentist etc).... 15

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

Buildings insurance..................... 0

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

Life assurance ......................... 15

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

Presents (birthday, christmas etc)...... 0

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

Entertainment........................... 46

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

Emergency fund.......................... 25[b]

Total monthly expenses.................. 1624[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 80000

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

Car(s).................................. 2000

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

Total Assets............................ 82000[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

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

Credit Card....................4795......167.......0

Credit Card....................5308......115.......0

Credit Card....................4007......60........0

Loan...........................7868......250.......0

Loan...........................860.......96........0

Credit Card....................1407......50........0[b]

Total unsecured debts..........24245.....738.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,100

Expenses (including HP & secured debts). 1,624

Available for debt repayments........... 476

Monthly UNsecured debt repayments....... 738[b]

Amount short for making debt repayments. -262[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 82,000

Total HP & Secured debt................. -0

Total Unsecured debt.................... -24,245[b]

Net Assets.............................. 57,755[/b]

[i][/i][/tt]

Lightattheendofthetunnel1978

I have to date managed to ensure no bills have been missed. There is equity in my house but the ex wife and children live there so this isn’t an option. 

I’ve looked for a consolidation loan but due to the amount of credit I currently hold that is not an option. 

Grumpelstiltskin

Under no circumstances even think about a loan, all it does is move the debt sideways.

Are all your debts 0% or have you missed the interest rates off?

As long as you are paying essential debts don't pay the unsecured ones until you have sorted a solution out.

stu12345_2

the food is just for you, you get no child benefit cos the kids live with your ex, is that right.

you have put 2 kids in Household, I'm confused about this point, do you have kids in your household living with you or not.
if they don't , mark it as no kids living with you

What's the child related expenses , these are huge, tell me what this covers exactly 
why no road tax car insurance mot serving costs

you have your credit cards and loan as all zero% interest is that right 

Lightattheendofthetunnel1978

343 is child maintenance. I put 2 children as they do come to me at weekends so are still my children. 

Sorry. Road tax is £20 annually and MOT/Service and insurance have just been paid annually. (Part of the credit card debt) so that would double it if I put it again. 

Currently not paying interest on credit cards. 

Yes no child benefit - and food is for me unless kids come over. 

stu12345_2

even if car costs are paid upfront list it by dividing by 12 , cos they are a cost anyway and come around again.
 who decided your child maintenance costs, was it mutually agreed, I think it's way too high

when I got divorced my wife and I agreed an amount, she knew I was in debt, she knew the debts were related to the money I spent on the matrimonial house, she knew high maintenance meant I had nothing left to feed or entertain daughter when I got access to her.

I mean your wife gets the child benefit and I assume she works also 

Floss

No contents insurance?
No haircuts - I presume you DIY?
No presents ever, not even for your kids?

Put your car costs in as a monthly figure as Stu says, as you need to save up to pay them next year.