Newbie looking for help

Ambertartan12

Hi All,

Thanks for taking the time to read my message, I have accumulated a lot of debt and I'm at the stage where I don't know where to turn to make a start on the road out of it.  

I am a single Mum on a good salary and I am overwhelmed with the debt management plans, Trust deeds, remortgaging options!  I would really like to avoid a Trust deed.

All help is greatly received,  thanks!

Statement of Affairs and Personal Balance Sheet

 

Household Information

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

Number of children in household......... 1

Number of cars owned.................... 1

 

Monthly Income Details[/b]

Monthly income after tax................ 3465

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

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

Other income............................ 250

Total monthly income.................... 3715

 

Monthly Expense Details[/b]

Mortgage................................ 522

Secured/HP loan repayments.............. 261.75

Rent.................................... 0

Management charge (leasehold property).. 10

Council tax............................. 187

Electricity............................. 100

Gas..................................... 80

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

Water rates............................. 0

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

Mobile phone............................ 165

TV Licence.............................. 13.25

Satellite/Cable TV...................... 69

Internet Services....................... 41

Groceries etc. ......................... 500

Clothing................................ 100

Petrol/diesel........................... 100

Road tax................................ 15

Car Insurance........................... 40

Car maintenance (including MOT)......... 40

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

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

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

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 25

Buildings insurance..................... 20

Contents insurance...................... 20

Life assurance ......................... 30

Other insurance......................... 17

Presents (birthday, christmas etc)...... 50

Haircuts................................ 70

Entertainment........................... 50

Holiday................................. 250

Emergency fund.......................... 100

Total monthly expenses.................. 2875.95

 

Assets

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

House value (Gross)..................... 160000

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

Car(s).................................. 10000

Other assets............................ 0

Total Assets............................ 170000

 

Secured & HP Debts

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

Mortgage...................... 101895...(522)......2.43

Hire Purchase (HP) debt ...... 15707....(261.7)....10.9

Total secured & HP debts...... 117602

 

Unsecured Debts

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

TSB Credit Card................8983.35...290.......30.95

TSB Overdraft..................2000......40........0

TSB Loan.......................7659.21...252.1.....0

Very...........................892.35....30........44.9

Creation.......................2807......100.2.....0

Zopa Loan......................21957.1...422.2.....23.6

Zopa Loan......................10241.3...320.......25.5

ZOPA Credit Card...............2150.09...94.85.....29.65

MBNA...........................2666.13...67.52.....29.58

Virgin.........................1240.5....45.21.....26.4

Fluid..........................3130.16...83........30.34

ONMO...........................2313.48...121.5.....22.46

Total unsecured debts..........66040.67.....1866.58

 

Monthly Budget Summary

Total monthly income.................... 3715

Expenses (including HP & secured debts). 2875.95

Available for debt repayments........... 839.05

Monthly UNsecured debt repayments....... 1866.58

Amount short for making debt repayments. -1027.53

 

Personal Balance Sheet Summary

Total assets (things you own)........... 170000

Total HP & Secured debt................. -117602

Total Unsecured debt.................... -66040.67

Net Assets.............................. -13642.67

fatbelly

Are you in Scotland?


It may well be that one of the Scotland-specific options suits you. I don't know enough to comment on them


You could start with a debt management plan and see how it goes but 66k debt and £800 available will take a long time. You could tweak that up a bit ( food, clothing, entertainment, holidays) but you still won't be able to meet the contractual payments.

Definitely don't try to secure the debt on your property.

Emmia

Obvious costs to cut are the £165 you're apparently spending on a mobile phone (are you tied to a contract?), the £250 you're budgeting for a holiday and potentially the £100 a month on clothing...

The £69 satellite/cable should also go (Freeview is available).

You've got nothing in your budget for prescriptions or dentistry.

FlorayG

£165 a month on a mobile phone? Surely that's not correct?

Ambertartan12

Thank you,  yes my phone bill is £165 for tied in contracts under my name.  I will contact the company and see if they can help.  I am struggling with the asking for help part at the moment.

Ambertartan12

fatbelly said:

Are you in Scotland?


It may well be that one of the Scotland-specific options suits you. I don't know enough to comment on them


You could start with a debt management plan and see how it goes but 66k debt and £800 available will take a long time. You could tweak that up a bit ( food, clothing, entertainment, holidays) but you still won't be able to meet the contractual payments.

Definitely don't try to secure the debt on your property.

Yes in Scotland.  Sorry, this is all a bit overwhelming, also everytime I try to reply to someone it doesnt appear.  Thank you, I really didn't want to involve my property.

sourcrates

Ambertartan12 said:

Thank you,  yes my phone bill is £165 for tied in contracts under my name.  I will contact the company and see if they can help.  I am struggling with the asking for help part at the moment.

Well I`m afraid you may have to be a little more aggressive in your cost cutting tactics, the simplest way is to just default on payment, add the debt to your total, and opt for PAYG sim cards instead.

The service provider is not going to accept lower payments, that is almost certain, so you need to take matters into your own hands, along with the other items you can do without above, that will give you over £500 more per month in your debt busting fund.

Another, rather important point is to understand that you currently have at least 13 lines of credit actively running, that`s an awful lot of credit, you must address the circumstances that led to you accruing such vast amounts of debt, so that once you do clear your current indebtedness, you don`t start sliding down the same slippery slope once more.

Emmia

Something else to bear in mind, when does your current mortgage rate run out?

You'll be paying a lot more than 2.43% when you get a new deal. Current fixes are around 2% - 4% higher (LTV dependent) which will add to your monthly payment.

fatbelly

When in a hole, stop digging.

Stop the payments to your creditors, keep the mortgage going.

Sort out your banking so that you are not banking where you have debts

Make the savings that you can, start an emergency fund.

Start a dmp and see how things go.

Ambertartan12

Emmia said:

Obvious costs to cut are the £165 you're apparently spending on a mobile phone (are you tied to a contract?), the £250 you're budgeting for a holiday and potentially the £100 a month on clothing...

The £69 satellite/cable should also go (Freeview is available).

You've got nothing in your budget for prescriptions or dentistry.

Hi,  I am tied into telephone contracts for myself and my son.  I will contact EE and explain my situation.  I'll also call Sky and cancel if I can however not sure what my contract status is with them.  My son is autistic and goes through a lot of clothes!, I will do my best to reduce this however his sensory needs make it difficult.   We do not pay for prescriptions in Scotland and Dental care is minimal for us, I can adjust the figures to reflect that. Again I really appreciate your advice.

Ambertartan12

fatbelly said:

When in a hole, stop digging.

Stop the payments to your creditors, keep the mortgage going.

Sort out your banking so that you are not banking where you have debts

Make the savings that you can, start an emergency fund.

Start a dmp and see how things go.

Thank you, do you advise how to start the debt management plan?  Is there someone who can help me with this?