In debt (£50k) and need some serious help - delicate position

katsu

Hiya.  You've a lot going on and it would be hard to cover all those payments but there are quite a few areas I suggest you take a look at below. Hopefully it will give you some ideas.

Good luck with the SC process. I hope you hear soon and that you get the outcome you are looking for. 

thealphan said:

Statement of Affairs and Personal Balance Sheet

Household Information

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

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

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

Monthly Income Details

Monthly income after tax................ 3200

Partners monthly income after tax....... 2000

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

Other income............................ 104.2

Total monthly income.................... 5304.2

Monthly Expense Details

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

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

Rent.................................... 1250

Management charge (leasehold property).. 0

Council tax............................. 168

Electricity............................. 200 - this seems really high. Are you sure it's accurate? Submit meter readings frequently and check your total spend last year to see what you really do spend.

Gas..................................... 70 - as above is summer now so are you spending this much? 

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

Water rates............................. 100 - this seems crazy high. Are you sure it's right? On a meter? 

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

Mobile phone............................ 50 - SIM only deals? 

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

Satellite/Cable TV...................... 30 - can you cancel this for now? 

Internet Services....................... 30

Groceries etc. ......................... 600

Clothing................................ 100 - are you spending it every month/ saving it it can you cut back here. You have kids and they grow so it's not possible to spend 0

Petrol/diesel........................... 50

Road tax................................ 20

Car Insurance........................... 30

Car maintenance (including MOT)......... 50 - are you saving this? Your car is on a lease so do you definitely spend also £600 a year? 

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......................... 10 - do you need this? 

Presents (birthday, christmas etc)...... 110 - time to cut back here. 

Haircuts................................ 100 - this seems high. Have you discussed with your wife how to reduce?

Entertainment........................... 200 - what is this? How can you cut it back

Holiday................................. 150 - I think you need the holiday or entertainment savings, not both. They are over 4k a year or 10% of your debt. 

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

Total monthly expenses.................. 4402

Assets

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

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

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

Car(s).................................. 700

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

Total Assets............................ 700

No Secured nor Hire Purchase Debts

Unsecured Debts

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

Sainsburys CC..................5314......200.......35

Sainsburys Loan................18000.....495.......11.7

Virgin CC......................2594......100.......30

Klarna.........................500.......120.......0

Paypal CC......................1100......100.......30

First CC.......................2400......100.......25

Barclays CC....................2400......150.......35

Barclays OD....................500.......100.......0

Amex ..........................6500......300.......50

Monzo Flex.....................500.......100.......0

Monzo OD.......................1500......100.......35

Creation Consum................1000......120.......0

Capital On Tap CC..............4500......300.......30[b]

Total unsecured debts..........46808.....2285......-  [/b]

Monthly Budget Summary

Total monthly income.................... 5,304.2

Expenses (including HP & secured debts). 4,402

Available for debt repayments........... 902.2

Monthly UNsecured debt repayments....... 2,285

Amount short for making debt repayments. -1,382.8

Personal Balance Sheet Summary

Total assets (things you own)........... 700

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

Total Unsecured debt.................... -46,808

Net Assets.............................. -46,108

I've added some ideas above for you and hope they help you think about where you can cut back/ ideas to discuss with your wife. 

RAS

Just noted that you have Amex in the mix. They are much more likely to go for a CCJ than UK based lenders, so if you want to avoid them at all cost, you'd need to prioritise them.

I assume Klarna is BNPL, so that'll clear soon? Then let everything else default and save while you wait. Definitely reduce the present, hair cuts, nets and holiday spends, massively. You just can't afford them.