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Drowning in debt, don't know where to start
Meagainsttheworld
Posts: 12 Forumite
Hi everyone,
I hope you're all well and thank you to all who reply with their advice and experiences.
I have got myself tangled up in quite the spiral of debt between my limited company and personal debt.
I have a large amount of debt and Im becoming overwhelmed now with not really knowing where to begin, who to pay/not pay, should I default, what are my options, go full nuclear, leave the country.
It should be noted I have preexisting chronic and multiple mental health diagnoses including ADHD, OCD, recurrent depression and anxiety and history of substance abuse.
My income can vary greatly between months from 0 if no work to upto 20,000-25,000 gross before corp tax and divided tax tax, if lots of work so it can be very difficult to make an accurate budget.
I am getting lost in all my debts. I believe I have now settled all my priority debts according to business debt line eg income tax and council tax, utilities, mortgage payments upto date. Leaving me with multiple non-priority debts - credit cards and business loans with myself as personal guarantor and I don't really know how I should go about making a plan or fixing the problem.
I have included below my current SOA below, if anyone is able to make sense of this complex situation and advise on my options it would be greatly appreciated.
Many [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]
I hope you're all well and thank you to all who reply with their advice and experiences.
I have got myself tangled up in quite the spiral of debt between my limited company and personal debt.
I have a large amount of debt and Im becoming overwhelmed now with not really knowing where to begin, who to pay/not pay, should I default, what are my options, go full nuclear, leave the country.
It should be noted I have preexisting chronic and multiple mental health diagnoses including ADHD, OCD, recurrent depression and anxiety and history of substance abuse.
My income can vary greatly between months from 0 if no work to upto 20,000-25,000 gross before corp tax and divided tax tax, if lots of work so it can be very difficult to make an accurate budget.
I am getting lost in all my debts. I believe I have now settled all my priority debts according to business debt line eg income tax and council tax, utilities, mortgage payments upto date. Leaving me with multiple non-priority debts - credit cards and business loans with myself as personal guarantor and I don't really know how I should go about making a plan or fixing the problem.
I have included below my current SOA below, if anyone is able to make sense of this complex situation and advise on my options it would be greatly appreciated.
Many [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.................... 2[b]
Monthly Income Details[/b]
Monthly income after tax................ 10000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 10000[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 2801
Secured/HP loan repayments.............. 3244
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 191
Electricity............................. 315.41
Gas..................................... 104
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 104
TV Licence.............................. 13.37
Satellite/Cable TV...................... 179.98
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 1000
Petrol/diesel........................... 0
Road tax................................ 16.68
Car Insurance........................... 380
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 130
Pet insurance/vet bills................. 0
Buildings insurance..................... 200
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 1000
Haircuts................................ 100
Entertainment........................... 0
Holiday................................. 2000
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0[b]
Total monthly expenses.................. 12009.44[/b]
[b]
Assets[/b]
Cash.................................... 31091.6
House value (Gross)..................... 950000
Shares and bonds........................ 95363.7
Car(s).................................. 0
Other assets............................ 182686[b]
Total Assets............................ 1259141.3[/b]
[b]
Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 546779...(2801).....4.69
Hire Purchase (HP) debt ...... 46687.6..(844)......8.91<
Business PCP PG Car............0........(2400).....0[b]
Total secured & HP debts...... 593466.6..-.........- [/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Bonvoy Amex....................18361.4...400.......35.2
MBNA...........................14268.2...222.9.....34.54
Halifax........................7695......154.......25
Zopa personal loan.............12000.....309.6.....9.05
COMPANY PG IW..................9992.2....724.7.....0
COMPANY PG WO..................22000.....2564......0
company PG FC..................57952.7...1308......16.8
company. PG FC.................67417.....1687......12.26
M&S............................6224.41...156.......20.9
Fluid..........................4628.56...203.4.....32.5
HSBC...........................10756.5...300.......24.9[b]
0
Comments
-
Are you really spending £12,000 a year on clothing and the same on gifts plus £24k on holidays? Seems very high for someone with no partner or children and you could rapidly clear your personal debt by cutting most of that out for a short period of time.2
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Does your SOA include business as well as personal debt?
If so you need to separate it outIf you go down to the woods today you better not go alone.1 -
What's the monthly £3244 secured loan and your holiday , clothes, gifts are way way too high.
and so is your satellite TV, gas and electricity
easy cutting back will solve an awful lot hereChristians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
Over the last 12 months yes I have spent impulsively and beyond my means leading to the credit card debt build up. I have stopped both of those spends now for at least the last 12 months and I am selling clothes to make some extra money.Keep_pedalling said:Are you really spending £12,000 a year on clothing and the same on gifts plus £24k on holidays? Seems very high for someone with no partner or children and you could rapidly clear your personal debt by cutting most of that out for a short period of time.0 -
how can you sell a holiday
and if you have stopped these holidays gifts clothes spending, why are you still listing them
that money spent on them is now in the credit card debt monthly repayments which you correctly list.
but you are no longer still spending on these outrageous amounts if you have stopped , hence don't list them as monthly amounts
Christians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
2400 is a business PCP for a company car. This was purchased so as to reduce corporation tax liability which it did by about 30k. If I gave it back I would end up with a corporation tax liability due to the hmrc. (100% first year allowance on fully electric cars)stu12345_2 said:What's the monthly £3244 secured loan and your holiday , clothes, gifts are way way too high.
and so is your satellite TV, gas and electricity
easy cutting back will solve an awful lot here
844 is hire purchase car in my personal name - my intention was to sell this car and had been trying to do so last 12 months but it has become unsellable over the last 12 months. I have a right to terminate the agreement and give the car back but the contract states I need to of paid half of the total amount of the agreement...which I am 3k short of. So if I give that car back I assume the company will then send me a bill for at least 3k I owe them plus there are some minor damages to car - scuffs to alloys and missing second key I expect they will add to the charge too. And then this would get added to the non priority debt pile0 -
redo your SAO with the clothes, gifts, holidays removed as you said you have stopped spending these per month
if the car is worth peanuts, let the car finance company take the hit, they did their future value wrong, their problem. EVs are worth peanuts second hand and hand it back once you have paid the 3k
I'm sure you will find £3 k by not paying a creditor or two for a month
make sure you don't just say please collect car, cos they will sell it and hound you for the difference they got at auction and the full total remaining. some have been caught out that way.
tell them you are exercising your right for voluntary termination under the cc act rules of 50% of grand total been paid
get it in writing no more money is then owed before you do
I did it twice I got the repairs done before I returned it cos, they don't actually sent it to a garage to repair it, they work out how much less it is worth at an auction cos that's where it will go to ultimately
second immobilser key is £50 to £125 at keysmiths
alloy wheel repair £100Christians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
Yes.Grumpelstiltskin said:Does your SOA include business as well as personal debt?
If so you need to separate it out
I have a limited company which I am the sole director and any work I do comes directly into the limited company and I then pay myself mainly via dividends.
The debts I have listed with PG next to them are business loans with myself as personal guarantor on the loans.0 -
ok will do.stu12345_2 said:redi your SAO with the clothes, gifts, holidays removed as you said you have stopped spending these per month0 -
Redone SOA without holidays, clothes, [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 1Number of children in household......... 0Number of cars owned.................... 2[b]Monthly Income Details[/b]Monthly income after tax................ 10000Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 10000[/b][b]Monthly Expense Details[/b]Mortgage................................ 2801Secured/HP loan repayments.............. 3244Rent.................................... 0Management charge (leasehold property).. 0Council tax............................. 191Electricity............................. 315.41Gas..................................... 104Oil..................................... 0Water rates............................. 30Telephone (land line)................... 0Mobile phone............................ 104TV Licence.............................. 13.37Satellite/Cable TV...................... 179.98Internet Services....................... 0Groceries etc. ......................... 200Clothing................................ 1000Petrol/diesel........................... 0Road tax................................ 16.68Car Insurance........................... 380Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 130Pet insurance/vet bills................. 0Buildings insurance..................... 200Contents insurance...................... 0Life assurance ......................... 0Other insurance......................... 0Presents (birthday, christmas etc)...... 0Haircuts................................ 0Entertainment........................... 0Holiday................................. 0Emergency fund.......................... 0(Unnamed monthly expense)............... 0[b]Total monthly expenses.................. 8909.44[/b][b]Assets[/b]Cash.................................... 31091.6House value (Gross)..................... 950000Shares and bonds........................ 95363.7Car(s).................................. 0Other assets............................ 182686[b]Total Assets............................ 1259141.3[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 546779...(2801).....4.69Hire Purchase (HP) debt ...... 46687.6..(844)......8.91<Business PCP PG Car............0........(2400).....0[b]Total secured & HP debts...... 593466.6..-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRBonvoy Amex....................18361.4...400.......35.2MBNA...........................14268.2...222.9.....34.54Halifax........................7695......154.......25Zopa personal loan.............12000.....309.6.....9.05COMPANY PG IW..................9992.2....724.7.....0COMPANY PG WO..................22000.....2564......0company PG FC..................57952.7...1308......16.8company. PG FC.................67417.....1687......12.26M&S............................6224.41...156.......20.9Fluid..........................4628.56...203.4.....32.5HSBC...........................10756.5...300.......24.9[b]0
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