debt help

Joner205

HI all, im trying to get my finances in order as im currently in a lot of debt, £32k ish currently I can just about to pay the minimums and loan payments every month. and if I do overtime or hit bonus at work I can live a little bit etc ive done a SOA which ill add below. I know I can save a bit if I change my car and im trying to do this currently. Im looking for options to get my spending under control and ways to lower my expenses etc and ways to get rid of this debt ive built up. My main concerns are the overtime has been cut and ways to make bonus have been changed so the chances of getting this are greatly reduced now.

Joner205

[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.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2150

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

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

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

Total monthly income.................... 2150[/b][b]

Monthly Expense Details[/b]

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

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

Rent.................................... 543

Management charge (leasehold property).. 0

Council tax............................. 130

Electricity............................. 66

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

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

Water rates............................. 24

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

Mobile phone............................ 20

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

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

Internet Services....................... 28

Groceries etc. ......................... 217

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

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

Road tax................................ 28

Car Insurance........................... 25

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................. 0

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

Contents insurance...................... 10

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

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

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

Haircuts................................ 18

Entertainment........................... 0

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

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

Total monthly expenses.................. 1293[/b]

[b]

Assets[/b]

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

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

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

Car(s).................................. 1000

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

Total Assets............................ 1000[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

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

NatWest........................3977......49.71.....29.9

lloyds cc......................1481......65........30

paypal credit..................1940......78........25.9

jn.............................7800......219.......NaN

lloyds loan....................8108......253.......19.4

barclaycard....................2821......29........24.6

virgin.........................3019......31........26.5

tesco..........................3279......107.......25[b]

Total unsecured debts..........32425.....831.71....-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,150

Expenses (including HP & secured debts). 1,293

Available for debt repayments........... 857

Monthly UNsecured debt repayments....... 831.71[b]

Amount left after debt repayments....... 25.29[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 1,000

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

Total Unsecured debt.................... -32,425[b]

Net Assets.............................. -31,425[/b]

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

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

Joner205

Any help will be greatly received Thanks

Grumpelstiltskin

OK Number 1 a realistic SOA, you never pay to park your car? You never have a prescription? You never buy any clothes?

I think when you have a realistic SOA you will be in a minus.

So in that case stop paying all your unsecured debts and wait for them to default, in the meantime save an emergency fund.

Once they have defaulted start a DMP either self managed or through one of the charities.

You have to realize no more spending on credit.

You will be able to do this but it needs a complete change of mindset.

fatbelly

I just prepared a longer response, then lost it.

Conclusion was as above but worked through the thinking a little more.

The thing is that April is coming and any margin you now have will disappear when the rises in council tax, road tax and water hit, unless your wage rises by a good percentage.

One useful thing would be to check that your council tax has 25% single person discount, paid in 12 instalments as late in the month as possible and check turn2us in case you can get any means tested help.

sourcrates

Not much wiggle room on that budget, and as others suspect, you will likely be in negative figures if your actual spend was noted.

You rent, and have no significant assets, but would have some £700 disposable income, so debt management would be the obvious choice, you would have too much disposable income for a DRO to be granted, likewise the nuclear option of Bankruptcy would involve a 3 year IPA, I see no need for that on these figures.

ManyWays

Cheap rent! Is it a social tenancy (in which case, it too will be going up in April) or a flatshare? 
Change your car, you havent listed a car on finance, if your current one is only worth 1000, changing it isnt likely to generate much help? 
What sort of spending problem have you had, general tapping the cards too freely for years or more specific eg gambling? 

Joner205

I’ll adjust my SOA as I’ve obviously missed a few things.  Changing my car to a car with much cheaper and road tax and better on fuel I think would free £60/£70 a month. Debt is being to blasé with my money and not accepting my responsibility with my credit cards. I don’t gamble. My rent is cheap because it’s social housing. 

A few questions, if I default on my non secured debts would the six years start from the date of the first default? And if for say one didn’t default for like a long time (like I read can happen) could that one then default and be 18/24 months after everything else has cleared off my credit file. To make it clear I intend to pay everything back I owe. 

Thanks

Grumpelstiltskin

Each default will be 6 years from it's start date.

If you start a DMP before a debt defaults your credit report will be marked 'Arrangement to Pay' these don't go from your credit report until 6 years after the final payment is made, so if it takes you 4 years to repay it stays on your credit report for 10 years.

As you won't be using credit in the near future the default will be much better.

sourcrates

Joner205 said:

To make it clear I intend to pay everything back I owe. 

Thanks

Why on Earth would you do that?

Your debts will be sold for around 12p in the £, and whoever buys them will come looking for you to pay the full face value, at least initially, not many debtors ever do that, a lot end their DMP`s with partial settlements, not many pay back the full lot, and why should you.

Grumpelstiltskin

What you need to do now is cancel all debt payments and get a basic bank account with no overdraft with a bank that isn't connected to any of the banking groups you owe money to.

Do NOT use the bank account switch service but move all vital direct debits manually.

Do not contact any of your creditors, be prepared for phone calls, texts and E Mails but block all phone numbers and just look at any letters you receive by snail mail.

Nothing happens quickly in debt collection it could be many months before you start to get defaults but please use this period to get a good emergency fund  together.