In debt trouble and would appreciate any help

LondonRiversof

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... [b]

Monthly Income Details[/b]
Monthly income after tax................ 2160
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2160

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 866
Management charge (leasehold property).. 0
Council tax............................. 189
Electricity............................. 100
Gas..................................... 75
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 15
Satellite/Cable TV...................... 15
Internet Services....................... 50
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 140
Road tax................................ 15
Car Insurance........................... 75
Car maintenance (including MOT)......... 45
Car parking............................. 60
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 8
Entertainment........................... 25
Holiday................................. 20
Emergency fund.......................... 25[b]
Total monthly expenses.................. 2088[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 550
Car(s).................................. 2100
Other assets............................ 0[b]
Total Assets............................ 2650[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
HFAX Overdraft.................450.......0.........0
Updraft 3 Loans................12000.....0.........0
Cap One CC.....................300.......0.........0
Zopa CC........................1600......0.........0
Zable CC.......................800.......0.........0
Updraft loans *3...............12000.....0.........0
118118 CC......................2700......0.........0
Jaja CC........................2400......0.........0
Marbles CC ....................5800......0.........0
MyCommunity Bank Loan..........5200......0.........0
Tesco CC.......................650.......0.........0
Wave CC........................650.......0.........0
Lendable Loan..................2500......0.........0[b]
Total unsecured debts..........47050.....0.........- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,160
Expenses (including HP & secured debts). 2,088
Available for debt repayments........... 72
Monthly Unsecured debt repayments....... 0[b]
Amount left after debt repayments....... 72[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 2,650
Total HP & Secured debt................. -0
Total Unsecured debt.................... -47,050[b]
Net Assets.............................. -44,400[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using Firefox browser.[/i][/font]

This is 100% my own fault not helped by my rent almost doubling but I ran it all up. I ran up a lot of debt, refinanced through loans and ran up multiple credit card debts again. I ended up with repayments of £1400 odd per month. I stopped paying and they are all now defaulted. I didn't start repayment plans, initially as I had my head in the sand. But I built up overwhelming anxiety and couldn't face it. Now I'm defending 2 in court with slim hope of success as they supplied relevant paperwork .

It is a wake up call and I've realized I'm not currently able to handle the stress.

Some questions I have.

I want to set up repayment plans on all the others to try and avoid further court issues. How will 2 CCJS will affect it?

How severe will my repayments be on a CCJ? - Total between both will be around 4k

Is DM the best option now? The inc/exp isn't final as I've had to estimate a few things. My son rents a room off me for £100 which I've included in my income but is that the best way to disclose it? Tenancy is in my name only (He pays for his own food.)

sourcrates

Payments for debt management and county court judgements are set according to your available disposable income as a whole.

You should have completed an income/expenditure form for the court as part of your defence, hopefully it was accurate, if it wasn`t and the court payment is set too high, you can re-apply to the court to get it lowered.

caprikid1

Surely this has got Bankruptcy written all over it ?

Grumpy_chap

Does the OP understand what they spent on? So they can prevent a repeat?

LondonRiversof

Yes, I will never take out credit again.

I spent quite a lot initially when my father was seriously ill travelling to hospital etc (Not an excuse) And I helped my mum with a joint debt when he passed and his pension ended leaving her in difficulty.(Again my choice, no excuses) I continued to spend, refinance and spend. The monthly repayments were too high for me to handle, and it took me to long to get a handle on it. Instead of stopping spending I refinanced and ran the cards back up incurring the masses of interest on top. Since stopping this cycle I am keeping within my budget. I can take an old frozen pension in just under 2 years, which could get me around 30k ish and would enable me to pay a good chunk of the debts off.

sourcrates

I`m guessing these payments would have been unaffordable to you long before your rent increased.

47k of debt with less than £100 to service it, would suggest an insolvency solution will be required to solve this, as you have nothing to allocate on a monthly basis, you are just inside the disposable income threshold for a DRO, and I`m thinking that`s what you should look at doing.

LondonRiversof

Thank you all for your input. I will investigate DRO as I have not come across the term before.

fatbelly

You will find that on your figures you are just inside the criteria for a Debt Relief Order.

https://www.gov.uk/guidance/how-to-get-a-debt-relief-order-dro

This is a free strategy so no harm in going for it as if it works it's get out of jail free time. You can only have one in 6 years.

Most are done through Citizens Advice or Money Wellness though there is a complete list in that document. Note that Stepchange don't do them.

ManyWays

If your debts are a bit bigger so a DRO is not an option, then bankruptcy is your best choice. Your car valuation suggests it will not be a problem for a DRO and would not be at risk in bankruptcy

Any form of insolvency (IVA, bankruptcy, DRO) can make it hard to get a new private tenancy, but so will a CCJ. Getting a firm of insolvency now gives you the clean start you need.

LondonRiversof

Thanks again, I am reading up on this and hadn't wanted to go the bankruptcy route. I had hoped to get though to the age I can take my pension from an old scheme. That would get me 30/35k in 2 years time.*This isn't my current main pension)

I borrowed this money and I not trying to get out of it.

I'm re looking at my income and expenditure and I feel with some tweaks I may be able to go to over £100 per month. (So having read about DRO I don't think that's an option.

The replies have given me real food for thought.

I will do some more research and possibly speak with one of the firms mentioned like Citizens advice. I am coming out of a bad place, have lost 5 stone in weight and trying to be a better human.(So if I can avoid a form of bankruptcy I am keen to try it.I realize this advice so far is coming from people who know far more than I do)

I'm also keen to follow the money saving advice on here. Thank you to all who replied. I won't lie and reading the replies late last night led to a sleepless night. (But that's on me and I needed to face reality)

MEM62

 I had hoped to get though to the age I can take my pension from an old scheme. That would get me 30/35k in 2 years time.*This isn't my current main pension)

This is not a solution. Your pension is for your retirement and your future-self will very much regret being robbed to pay for current debts. You may not look at it as you 'main' pension but there is no such thing. ALL of your pensions form your pot. It is already the case that many people under-estimate the amount of pension provision needed for a comfortable life and therefore do not have sufficient squirreles away.

Seriously, find a solution that does not involve robbing your pension.