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In debt (£50k) and need some serious help - delicate position
I’m in quite a bad position and I’m after some guidance if possible please to make sure i make the correct decisions here.
I’m not really looking to excuse my position but some useful context is that I have AuDHD, CPTSD and spending has been one of the things I have really struggled to control. I have had therapy and coaching over the last year and I have really got to a position that is much more manageable.
In the last 12 months we have also welcomed a daughter to our family and had a wedding. I could kind of see this coming but I didn’t know what to do or how to approach it all.
The problem I guess is that I am just going into a job that requires UK Security Clearance - I have declared all of this debt on my form and been fully transparent, but there is a risk I do not get the clearance which would have a significant impact on me. The SC is only 2 weeks in progress. I have advised them that I may enter a DMP.
Is it the right thing to do to enter a DMP? Is there anything I am missing? Should we enter a DMP as a couple or should my wife stay out of it and manage her debts separately if she can? We have only just married so no debts are joint or in her name and we have no joint account.
Will me going into a DMP impact her? Thank you for all of your advice. The SoA is rough but broadly accurate.
My taxable pay each month is £4500 but I do have a salary sacrifice car and cycle scheme which I think is around a £1000 deduction in total with BIK etc before tax.
My car scheme ends in November and I am looking at removing this or getting a much cheaper car.
[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......... 2
Number of cars owned.................... 1[b]
Monthly Income Details[/b]
Monthly income after tax................ 3200
Partners monthly income after tax....... 2000
Benefits................................ 0
Other income............................ 104.2[b]
Total monthly income.................... 5304.2[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1250
Management charge (leasehold property).. 0
Council tax............................. 168
Electricity............................. 200
Gas..................................... 70
Oil..................................... 0
Water rates............................. 100
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 14
Satellite/Cable TV...................... 30
Internet Services....................... 30
Groceries etc. ......................... 600
Clothing................................ 100
Petrol/diesel........................... 50
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 700
Other child related expenses............ 210
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 110
Haircuts................................ 100
Entertainment........................... 200
Holiday................................. 150
Emergency fund.......................... 0[b]
Total monthly expenses.................. 4392[/b]
[b]
Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0[b]
Total Assets............................ 800[/b]
[b]
No Secured nor Hire Purchase Debts[/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Sainsbury’s CC.................5314......300.......35
Sainsbury’s Loan...............18000.....495.......11.7
Virgin Cc......................2593.37...100.......30[b]
Total unsecured debts..........25907.37..895.......- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 5,304.2
Expenses (including HP & secured debts). 4,392
Available for debt repayments........... 912.2
Monthly UNsecured debt repayments....... 895[b]
Amount left after debt repayments....... 17.2[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -25,907.37[b]
Net Assets.............................. -25,107.37[/b]
[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
Comments
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Hi, your SOA is showing around 25k of debt but you state you have 50k as the title?About 28k of debt to deal with…1
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Sorry! Yes I will update this ASAP.birdsfoottrefoil said:Hi, your SOA is showing around 25k of debt but you state you have 50k as the title?0 -
Statement of Affairs and Personal Balance SheetHousehold InformationNumber of adults in household........... 2Number of children in household......... 1Number of cars owned.................... 1[b]Monthly Income DetailsMonthly income after tax................ 3200Partners monthly income after tax....... 2000Benefits................................ 0Other income............................ 104.2Total monthly income.................... 5304.2Monthly Expense DetailsMortgage................................ 0Secured/HP loan repayments.............. 0Rent.................................... 1250Management charge (leasehold property).. 0Council tax............................. 168Electricity............................. 200Gas..................................... 70Oil..................................... 0Water rates............................. 100Telephone (land line)................... 0Mobile phone............................ 50TV Licence.............................. 14Satellite/Cable TV...................... 30Internet Services....................... 30Groceries etc. ......................... 600Clothing................................ 100Petrol/diesel........................... 50Road tax................................ 20Car Insurance........................... 30Car maintenance (including MOT)......... 50Car parking............................. 0Other travel............................ 100Childcare/nursery....................... 700Other child related expenses............ 210Medical (prescriptions, dentist etc).... 40Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 10Life assurance ......................... 10Other insurance......................... 10Presents (birthday, christmas etc)...... 110Haircuts................................ 100Entertainment........................... 200Holiday................................. 150Emergency fund.......................... 0Total monthly expenses.................. 4402AssetsCash.................................... 0House value (Gross)..................... 0Shares and bonds........................ 0Car(s).................................. 700Other assets............................ 0Total Assets............................ 700
No Secured nor Hire Purchase DebtsUnsecured DebtsDescription....................Debt......Monthly...APRSainsburys CC..................5314......200.......35Sainsburys Loan................18000.....495.......11.7Virgin CC......................2594......100.......30Klarna.........................500.......120.......0Paypal CC......................1100......100.......30First CC.......................2400......100.......25Barclays CC....................2400......150.......35Barclays OD....................500.......100.......0Amex ..........................6500......300.......50Monzo Flex.....................500.......100.......0Monzo OD.......................1500......100.......35Creation Consum................1000......120.......0Capital On Tap CC..............4500......300.......30[b]Total unsecured debts..........46808.....2285......- [/b]Monthly Budget SummaryTotal monthly income.................... 5,304.2Expenses (including HP & secured debts). 4,402Available for debt repayments........... 902.2Monthly UNsecured debt repayments....... 2,285Amount short for making debt repayments. -1,382.8Personal Balance Sheet SummaryTotal assets (things you own)........... 700Total HP & Secured debt................. -0Total Unsecured debt.................... -46,808Net Assets.............................. -46,1080 -
As a newbie, you can't edit your previous post, you need 10 posts to do that.
At present, you may need to list the debts in the correct format, then the revised total debt and an indication of your monthly deficit.If you've have not made a mistake, you've made nothing0 -
Sorry I’m a bit confused I thought I had done that?RAS said:As a newbie, you can't edit your previous post, you need 10 posts to do that.
At present, you may need to list the debts in the correct format, then the revised total debt and an indication of your monthly deficit.0 -
Well, after I wrote post, I suspect. The system will allow a completely new post, not editing an old one, yet.
Whatever, it's good. Keep your finances and your partner's debts and finances separate (no joint accounts) but since you are listing her income in your SOA, you need to at least total her debt and monthly payments.
Your first task is to find a banking group to whom you owe nothing, and organise a new basic bank account, which requires no credit check. I'd suggest that beyond that you hold fire until your understand how the Security Clearance goes and then check how debt options are viewed (the insolvency options may not be viable, and you might need to check whether there's a preference for debt charity managed DMPs or you can go DIY).If you've have not made a mistake, you've made nothing0 -
Ok! Thank you for your adviceRAS said:Well, after I wrote post, I suspect. The system will allow a completely new post, not editing an old one, yet.
Whatever, it's good. Keep your finances and your partner's debts and finances separate (no joint accounts) but since you are listing her income in your SOA, you need to at least total her debt and monthly payments.
Your first task is to find a banking group to whom you owe nothing, and organise a new basic bank account, which requires no credit check. I'd suggest that beyond that you hold fire until your understand how the Security Clearance goes and then check how debt options are viewed (the insolvency options may not be viable, and you might need to check whether there's a preference for debt charity managed DMPs or you can go DIY).0 -
With regard to the Security Clearance, I had to jump through a few hoops when I got my job with a major bank, biggest issue was that during lockdown I got two other jobs, PO and Amazon, when I filled out the application I didnt mention these as it was 3 years later, and for short periods, anyway the bank thought I was hiding something and demanded references from those sites, was very traumatic, thought I was going to lose the opportunity and took a few weeks to get the PO to respond, but they eventually did. My point is dont hide anything, they will find out......
Just as a side note, I didnt enter a DMP and had £65k worth of debt back in 2018, I followed the Dave Ramsey baby steps, I still listen to the podcasts now, cleared my debt, bought a house and now have savings and investments. It can be done, the baby steps are a simple format to follow.Baby Step 6/7 . £16000 saved and invested. £47,000 deposit paid on new home DEBT FREE !!!
Currently Negotiating with HMRC !0 -
Thank you for this. Yes of course I have disclosed all of my debt for SCAndyjflet said:With regard to the Security Clearance, I had to jump through a few hoops when I got my job with a major bank, biggest issue was that during lockdown I got two other jobs, PO and Amazon, when I filled out the application I didnt mention these as it was 3 years later, and for short periods, anyway the bank thought I was hiding something and demanded references from those sites, was very traumatic, thought I was going to lose the opportunity and took a few weeks to get the PO to respond, but they eventually did. My point is dont hide anything, they will find out......
Just as a side note, I didnt enter a DMP and had £65k worth of debt back in 2018, I followed the Dave Ramsey baby steps, I still listen to the podcasts now, cleared my debt, bought a house and now have savings and investments. It can be done, the baby steps are a simple format to follow.0 -
A security clearance is basically just a risk assessment. In the case of financial position and history, the two big concerns are how much it leaves you open to blackmail, or to betray your confidences for money.
By declaring all your debts, and managing them correctly, you have negated the blackmail option. The second is more difficult, a lot of it depends on how you accrued the debt itself. For example, someone who has built up the majority of their debts through gambling has an ongoing pressure point, whereas someone whose debts were due to time-limited, historic or one-off circumstances, such as having a baby, is a lower risk.
Nobody can tell you if you’ll pass the process or not, it’s all down to individual circumstances, and to some extent, the person making the assessment. I did hold a security clearance once with an active CCJ and defaults, so it really is on a case by case basis.1
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