Help required with debt issues please

Baldybear

Hello all, I have a diary on the DFW board but was advised to post SOA here as get more advise.

If you want the background please go to DFW diary, basically breakdown of marriage, lots of bereavement and major health issues for DD.  And also me being too nice and helping people out with money and situations and now it has come back and hit me in the face, lesson learned will never help anyone out with money again.

My SOA

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

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

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 100

Partners monthly income after tax....... 1200

Benefits................................ 783

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

Total monthly income.................... 2083[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 585

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

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

Management charge (leasehold property).. 0

Council tax............................. 237

Electricity............................. 94

Gas..................................... 0

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

Water rates............................. 51

Telephone (land line)................... 49

Mobile phone............................ 0

TV Licence.............................. 14

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

Internet Services....................... 0

Groceries etc. ......................... 350

Clothing................................ 50

Petrol/diesel........................... 65

Road tax................................ 25

Car Insurance........................... 50

Car maintenance (including MOT)......... 45

Car parking............................. 10

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

Childcare/nursery....................... 30

Other child related expenses............ 10

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

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

Buildings insurance..................... 25

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

Life assurance ......................... 19

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

Presents (birthday, christmas etc)...... 15

Haircuts................................ 10

Entertainment........................... 15

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

Emergency fund.......................... 0[b]

Total monthly expenses.................. 1764[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 425000

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

Car(s).................................. 7500

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

Total Assets............................ 432500[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 63000....(585)......4.52[b]

Total secured & HP debts...... 63000.....-.........-   [/b]

[b]Unsecured Debts[/b]

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

SCC............................9499.94...250.......18.9

VCC............................13511.....339.......17.9

BCC............................15960.8...445.......18.9[b]

Total unsecured debts..........38971.74..1034......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,083

Expenses (including HP & secured debts). 1,764

Available for debt repayments........... 319

Monthly UNsecured debt repayments....... 1,034[b]

Amount short for making debt repayments. -715[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 432,500

Total HP & Secured debt................. -63,000

Total Unsecured debt.................... -38,971.74[b]

Net Assets.............................. 330,528.26[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Few Notes to add to help:  DH was paying more have averaged out what he is paying at the moment towards the household, this week was £400, last week was £150, it depends on what he feels like.  He keeps threatening to leave and then would only have the benefit amount to live on, which is Universal Credit £681, single person plus one child and also child benefit for one child.  I do earn but ad hoc so average £100 a month but would hope to earn more.

House insurance is building and contents included.  Phone is landline, broadband and basic tv package included.  I dont have sky or any streaming subscriptions.  DD watches youtube but free on phone with adverts.    Also Electricity is electric & gas DD combined.

The car costs are just for me, I havent included DH as he can pay his own this year, he has the money that he isnt giving me so apart from basic bills which he is contributing to above.

I dont feel I can cut back anywhere at all.  My only cut back is DH left I can take the council tax down by 25%, I could decrease the grocery bills as just me and DD.

In September DD will start full time school so will not have to pay the extra childcare costs and hopefully can up my work hours.  At the moment only do 15hrs so not a lot of time to find work to fit in anywhere.  As posted in diary I dont have anyone to ask to help with ad hoc childcare its all down to me and DD has lots of hospital apptmts so I have to take her to all of these, again no one to help.

I have applied for DLA as daughter has issues so hoping this will be awarded as then can claim this and carers allowance so will make a big difference in income.

I cant afford to pay debts now and have missed 2 payments so far.  Any advice would be appreciated.

fatbelly

It looks from the soa that you can't afford the contractual payments on the debts, which are three credit cards.

So stop paying. Somewhere down the line you can start a debt management plan.

For now

Get banking somewhere where you don't have debts
Save an emergency fund

ManyWays

This doesnt feel stable enough to make a long term plan at the moment, so there is little point in looking at the details and saying you need an emergency fund, no mobile? and things like that. 
You have 3 very large pretty cheap (low interest) credit card debts - I am guessing Santander, Virgin and Barclaycard? Banks tend to behave reasonably when you say you are in difficulty, I suggest you phone them all and say your husband is threatening to leave you, that he has stopped most of his contributions to the household budget and you won't be able to make any payments until September, when you hope to be able to increase your hours when you daughter goes to school. Ask them to freeze interest and not add any charges. 
Any money you can, you need to save into an account in your name that husband doesnt know about so you have some slush fund if he just walks out

EssexHebridean

OH OP I am sorry for the rotten situation you find yourself in. One way or the other you simply don't have the money to pay the debts right at the moment, and with no financial certainty from one month to the next it's really tricky to make a plan, isn't it. 

Whether you contact the creditors and ask them to freeze the accounts, or simply stop paying with a view to holding out for defaults and then entering into a DMP, the key thing is now to make sure that you ringfence that slack in your budget that not paying the debts will create, and as above, make sure that is stashed somewhere secure that only you can access. 

A new basic bank account is a must - make sure you open it manually not using the current account switch service. You will need to manually change over the direct debits you want to continue being paid. 

Baldybear

fatbelly said:

It looks from the soa that you can't afford the contractual payments on the debts, which are three credit cards.

So stop paying. Somewhere down the line you can start a debt management plan.

For now

Get banking somewhere where you don't have debts
Save an emergency fund

Hello thanks for the input, no debts with bank I have, all at Sains, Virgin and Barclays and with Natwest so think that should be ok.  Am trying to save as much as I can.

Baldybear

ManyWays said:

This doesnt feel stable enough to make a long term plan at the moment, so there is little point in looking at the details and saying you need an emergency fund, no mobile? and things like that. 
You have 3 very large pretty cheap (low interest) credit card debts - I am guessing Santander, Virgin and Barclaycard? Banks tend to behave reasonably when you say you are in difficulty, I suggest you phone them all and say your husband is threatening to leave you, that he has stopped most of his contributions to the household budget and you won't be able to make any payments until September, when you hope to be able to increase your hours when you daughter goes to school. Ask them to freeze interest and not add any charges. 
Any money you can, you need to save into an account in your name that husband doesnt know about so you have some slush fund if he just walks out

Thank you for your reply, yes forgot to add I pay £22 for my mobile bill.  I dont have savings have used everything to service debt.  Your are right about the CC's but sainsburys not santander.  I will call them and take your advice on what to say.

All my accounts are separate dont have shared accounts, he just transfers from his bank to mine on payday.  Have cancelled all the CC's  DD a long time ago and been manually paying them as and when until now.

I am trying to save as much as I can, have just done a new spreadsheet with what is in and out and just generally trying to up my income as much as I can.  Am looking much into the future with just me and DD and need to prepare for that.

Baldybear

EssexHebridean said:

OH OP I am sorry for the rotten situation you find yourself in. One way or the other you simply don't have the money to pay the debts right at the moment, and with no financial certainty from one month to the next it's really tricky to make a plan, isn't it. 

Whether you contact the creditors and ask them to freeze the accounts, or simply stop paying with a view to holding out for defaults and then entering into a DMP, the key thing is now to make sure that you ringfence that slack in your budget that not paying the debts will create, and as above, make sure that is stashed somewhere secure that only you can access. 

A new basic bank account is a must - make sure you open it manually not using the current account switch service. You will need to manually change over the direct debits you want to continue being paid. 

@EssexHebridean Thank you so much for your reply, just life has been awful and my health and mental health is suffering as much as it can be plus more but somehow only have myself to sort it out so just trying to get on tope of it as much as I can.

I will ask to freeze accounts, i have already stopped paying as have no spare money to do so.  Again as above all accounts are in my name only.

Do I need a basic bank account elsewhere, debts are not connected to main bank?  My account is only in my name and has no overdraft just standard select account, no fees etc.?

Grumpelstiltskin

You know Sainsbury's Bank now belongs to Nat West?

Sale of Core Banking Business to Natwest Group | Sainsbury's

Baldybear

Grumpelstiltskin said:

You know Sainsbury's Bank now belongs to Nat West?

Sale of Core Banking Business to Natwest Group | Sainsbury's

Hello no I didnt know that thank you, will go investigate other accounts

sourcrates

Monzo is a good call, or any stand alone bank with whom you have no prior debts will do.

Baldybear

sourcrates said:

Monzo is a good call, or any stand alone bank with whom you have no prior debts will do.

Thank you will sort something tomorrow