Advice from Your Experience ?

Loui22

Hi, 

I am wondering if anyone can advise me from experience how they have managed to pay off their debts...
It may not sound like much to some and i know that people are worse off than me but, I have £8727.81 of debt and its keeping me awake at night time. 

I have very 3 young children whom are missing out due to me having to pay this off, as it means i am unable to take them places, buy them less for their birthdays, miss a couple of school friends parties here and there etc.. 

I know its not the most important thing being able to buy them things or to take them to places but being separated and going through a divorce just isn't easy to navigate when their father is able to do what I can't with them. (Although they never complain and are very happy...i still feel that guilt) 

So my question really is, has anyone been able to pay this kind of amount off within a year? How did you manage to do it? I don't have much spare income but work full time. I have listed things that i don't need on eBay and marketplace etc.. and have never missed any payments to my debtors..

They are the likes of Credit Cards x 2 .. a Loan and Solicitors fees. 

Any ideas appreciated. 

Thanks 

EssexHebridean

Your first port of call is to complete a Statement of Affairs - the link is in my signature below. This gets all your income and expenditure in one place, gives you a solid written budget to work from, and most importantly, shows you what you have surplus each month that can be put towards paying to debts. 

If you format for MSE and post back into this thread (copy and paste) we can advise better. 

badmemory

Don't worry about the children as they are young and really only want your time.

RAS

I presume dad is paying the required CMS payments to you?

tacpot12

I personally didn't manage to pay that much off in a year. It's tough unless your costs are really under control and with three young children, you're so unlikely to have your costs under complete control that it's probably a bad idea even setting it as a target, as you might be discouraged when it's clear you are going to fail. 

I realise that my comment is also discouraging you, BUT I've made it to try to help you set a realistic target that you can achieve. It took me about two years to clear £12,000 of debt; it was hard, but so worth it to be free of the worry. 

Your children will still be young when this debt is paid and you can then treat them a bit more, but as has been said earlier, the main thing they need is time with you. Create your Statement of Affairs (SoA). Put together a realistic plan based on the SoA, and try to stick to it as best you can. 

Best wishes 

ManyWays

Paying that in a year when interest is being added and you are a single parent is likely to be really hard. It depends a lot on how large your "spare income" really is, we often see people who dont have any at all because their budget isnt realistic. So could you post a Statement of Affrairs (see https://www.stoozing.com/soa.php) then we could talk specifics and may have positive suggestions, rather than generalities or experience that may not be that relevant for you. .

Loui22

[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.........  3

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

Monthly Income Details[/b]

Monthly income after tax................ 2008

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

Benefits................................ 899

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

Total monthly income.................... 2907[/b][b]

Monthly Expense Details[/b]

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

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

Rent.................................... 850

Management charge (leasehold property).. 0

Council tax............................. 106

Electricity............................. 60

Gas..................................... 120

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

Water rates............................. 54

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

Mobile phone............................ 30

TV Licence.............................. 12

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

Internet Services....................... 25

Groceries etc. ......................... 400

Clothing................................ 20

Petrol/diesel........................... 120

Road tax................................ 19.25

Car Insurance........................... 50.97

Car maintenance (including MOT)......... 20

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

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

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

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

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

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

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

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

Life assurance ......................... 0

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

Presents (birthday, christmas etc)...... 30

Haircuts................................ 20

Entertainment........................... 40

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

Emergency fund.......................... 0

Kids Drama.............................. 60

Kids Dancing............................ 50[b]

Total monthly expenses.................. 2087.22[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 0

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

Car(s).................................. 5000

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

Total Assets............................ 5000[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

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

M&S Card.......................616.83....100.......25

Sainsburys loan................3258.59...182.......10

Virgin Card....................3999.69...150.......24

Solicitor......................4000......0.........0[b]

Total unsecured debts..........11875.11..432.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,907

Expenses (including HP & secured debts). 2,087.22

Available for debt repayments........... 819.78

Monthly UNsecured debt repayments....... 432[b]

Amount left after debt repayments....... 387.78[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 5,000

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

Total Unsecured debt.................... -11,875.11[b]

Net Assets.............................. -6,875.11[/b]

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

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

Loui22

I havent put a payment in to the solicitor as i need to make an agreement with them.. theyve asked for £976 as an upfront payment this month but obviously i don't have that spare so hoping they may accept £50 per month (wishfull thinking maybe) 

ManyWays

Groceries etc. ......................... 400 - that has to include toiletries and cleaning stuff. It's not generous

Clothing................................ 20 - that is way too little for an adult and 3 children. The children will need new clothes, shoes and school uniform 

Medical (prescriptions, dentist etc).... 0 - you really need a bit in for the odd prescription and dentist check up. 

Contents insurance...................... 0 - that isnt safe

Presents (birthday, christmas etc)...... 30 - so you spend £60 each on a child's birthday and the same for xmas, and never give anyone else presents at all? 

Emergency fund.......................... 0 - that isnt safe 

Kids Drama.............................. 60 - does this include any clothes/shoes they need and any costs for exams 

Kids Dancing............................ 50 - does this include any clothes/shoes they need and any costs for exams 

I think you are at least £100 short on those, probably £150
So your surplus each month is more like £250 and the solicitor may want most of that.

I dont think there is any way you will be able to clear all the cards and loans this year, or even most of them. 

sourcrates

The solicitor has no more right to your money than any other non priority creditor.

I too think you have under budgeted in some areas, have you considered debt management at all?

You could perhaps halve what you are currently paying Inc. the solicitors debt, by spreading the debt over a longer period of time, and paying less per month. 

MEM62

Loui22 said:

Monthly Income Details[/b]

Monthly income after tax................ 2008

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

Benefits................................ 899

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

Total monthly income.................... 2907[/b][b]

Does this include the payment from the father?