Writing to creditors individually

Pollyanna79

Ok I have gone through it again @Grumpelstiltskin . The £418 is kids clubs and sports, I have reduced this slightly as we don't need to pay for one of them anymore, and written it in as kids clubs. Have added for presents. Entertainment is £40 a week for the weekend - so maybe lunch in a cafe, or entrance to something.

Here it is amended:

[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.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 2392

Partners monthly income after tax....... 1000

Benefits................................ 648

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

Total monthly income.................... 4040[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 1370

Secured/HP loan repayments.............. 618

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

Management charge (leasehold property).. 0

Council tax............................. 176

Electricity............................. 278

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

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

Water rates............................. 73

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

Mobile phone............................ 45

TV Licence.............................. 15

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

Internet Services....................... 55

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

Clothing................................ 120

Petrol/diesel........................... 328

Road tax................................ 30

Car Insurance........................... 76

Car maintenance (including MOT)......... 50

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

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

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

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

Medical (prescriptions, dentist etc).... 20

Pet insurance/vet bills................. 34

Buildings insurance..................... 39

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

Life assurance ......................... 38

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

Presents (birthday, christmas etc)...... 50

Haircuts................................ 40

Entertainment........................... 160

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

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

union fees.............................. 14

kids after school/sports clubs.......... 368

dentist/optician........................ 50[b]

Total monthly expenses.................. 4447[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 370000

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

Car(s).................................. 8000

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

Total Assets............................ 378000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 206.019..(1370).....4.81

Secured Debt.................. 46349....(618)......11.72[b]

Total secured & HP debts...... 46555.02..-.........-   [/b]

[b]Unsecured Debts[/b]

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

Santander......................2816......78........23.8

barclaycard....................14978.....456.......25.4

asda loan......................13366.....334.......10.55

NUBA...........................89........25........34.54

Creation (bed).................2423......76........0

lloyds.........................7961......189.......26.63

tesco..........................9008......177.......16.65

barclaycard 2..................5000......55........34

debenhams......................7126......181.......34.59

virgin.........................5398......150.......24.9

next...........................2541......126.......24.9

mbna...........................397.......25........24.54[b]

Total unsecured debts..........71103.....1872......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,040

Expenses (including HP & secured debts). 4,447

Available for debt repayments........... -407

Monthly UNsecured debt repayments....... 1,872[b]

Amount short for making debt repayments. -2,279[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 378,000

Total HP & Secured debt................. -46,555.02

Total Unsecured debt.................... -71,103[b]

Net Assets.............................. 260,341.98[/b]

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

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

ManyWays

this year husband (business owner) has only been able to pay himself £1000 per month, where it should be £2000 per month.
is this a temporary downturn or likely to continue? 

The groceries amount at £400 looks implausibly low

fatbelly

Your unsecured debts are not your problem. You are £400  short of making regular monthly expenditure and secured debt.

I take it the secured debt is a secured loan on the house. If it is something else, you might have options.

But as things stand you have to find £400 more income or reduce expenditure £400

Pollyanna79

Thank you so much both of you - @ManyWays I think it will continue like that for a while, at half the amount.  Groceries we try to stick to £85 a week - the business debtline said they thought it was too low too so I put it up to £100 to cover occasional top up shops: 

it’s really helpful to have these comments - thank you @fatbelly for summarising it like that, sometimes it’s too hard to see the wood for the trees 

Smudgeismydog

Well done for posting and taking the first steps to dealing with this.

I agree that it’s always best to get the debt position out in the open with your partner. I would also urge you to consider how the debt was accrued, this is important as it’s likely to mean lifestyle changes.

If your partner was aware of the shortfall in household income, would he have scope to increase his income from the business?

ManyWays

I think your husband needs to rethink this business and consider getting a job that pays more than 1000 a month.

Another option is to end literally all the childrens clubs and halve the entertainment and pay NOTHING to any of the unsecured debts.

when does your current mortgage fix and who is the mortgage lender?