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Almost £14,000 in debt and unsure what to do
Hi,
I'm in my late 20s and have been in debt most of my adult life. Right now it's totalling £13,450 over 4 credit cards (3 are 0 interest right now) and 2 loans. I'm afraid it's going to increase over the next few months with Christmas and my cars MOT (I need the car for work).
I have been working as I physically can to get extra money to pay it off, but it is very slow going. I also find it really frustrating how spread out it all is, but I don't think my credit score is good enough for any decent consolidation.
I keep seeing adverts for debt help and advice, but when I drill down it always mentions things like IVAs. I would like to buy a house in my lifetime and something being in my credit score for 6 years seems like a huge commitment.
Right now I'm in the financial position that I'd be fine if I didn't have to pay these debts off, but I keep getting into more debt because I'm having to pay these monthly payments and I cant help but think there must be a better way.
Thank you
Comments
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Well when you`re in a hole, its best to stop digging, you don`t need an IVA, so best suggestion is stop looking to social media, as that is all they promote on there, and you don`t need any more borrowing, so forget consolidation loans, your bank is not the way out of this either.
13k is not the worst case of debt we have seen, but you have to understand that any debt solution will ruin your credit file for the next 6 years, that cannot be avoided, ideally a statement of affairs will tell us the best way out of this for you, its all dependant on your income/expenditure etc.
The (stoozing.com) link is in my signature.
I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter2 -
You need a proper budget that means no further spending on the cards. Cut them up and post your SOA.
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Forget Christmas. Your real friends will understand. Anyone else doesn't matter.
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[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......... 0
Number of cars owned.................... 1[b]
Monthly Income Details[/b]
Monthly income after tax................ 2068
Partners monthly income after tax....... 266
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2334[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 802.8
Management charge (leasehold property).. 0
Council tax............................. 153
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 82
Telephone (land line)................... 0
Mobile phone............................ 34
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 23
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 160
Road tax................................ 0
Car Insurance........................... 74
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 20
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1693.8[/b]
[b]
Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 0[/b]
[b]
No Secured nor Hire Purchase Debts[/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Loan...........................2847.02...284.7.....29.6
Loan...........................2956.02...295.7.....18.1
Credit card....................2696.2....80.98.....30.34
Credit card....................1716.83...20........31.9
Credit card....................2208.12...49.28.....28.67
Credit card....................1049.27...10.59.....26.09[b]
Total unsecured debts..........13473.46..741.25....- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,334
Expenses (including HP & secured debts). 1,693.8
Available for debt repayments........... 640.2
Monthly UNsecured debt repayments....... 741.25[b]
Amount short for making debt repayments. -101.05[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,473.46[b]
Net Assets.............................. -13,473.46[/b]
[i]Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
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I did my best however income varies from month to month depending on how much extra work we get.
I have cut down as much as I can without destroying my mental health and I am working as hard as I physically can. So is my wife. We are bith disabled, not eligible for benefits but not able to work harder than we currently are.
I just feel like there must be a better way for me to deal with this debt rather than it being so spread out with so many different monthly payments.
0 -
OK A few comments.
Car expenses yet you don't list a car as an asset.
Could you please add names of companies for the loans and credit cards.
Food, no chance of that being enough unless you rely on food banks and/or Olio.
If you go down to the woods today you better not go alone.0 -
We pay 60 a week for a food shop on average. We alternate every other week, so I pay £120 a month, my wife pays the other £120.
I cannot sell my car I need it for work. Surely an asset is something I am able to sell?
0 -
[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......... 0
Number of cars owned.................... 1[b]
Monthly Income Details[/b]
Monthly income after tax................ 2068
Partners monthly income after tax....... 266
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2334[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 802.8
Management charge (leasehold property).. 0
Council tax............................. 153
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 82
Telephone (land line)................... 0
Mobile phone............................ 34
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 23
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 160
Road tax................................ 0
Car Insurance........................... 74
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 20
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1693.8[/b]
[b]
Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0[b]
Total Assets............................ 4000[/b]
[b]
No Secured nor Hire Purchase Debts[/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Loan Plata.....................2847.02...284.7.....29.6
Loan Lendable..................2956.02...295.7.....18.1
Credit card Capital 1..........2696.2....80.98.....30.34
Marbles credit card............1049.27...10.59.....26.09
Jaja credit card...............2208.12...49.28.....28.67
Barclaycard....................1716.83...20........31.9[b]
Total unsecured debts..........13473.46..741.25....- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,334
Expenses (including HP & secured debts). 1,693.8
Available for debt repayments........... 640.2
Monthly UNsecured debt repayments....... 741.25[b]
Amount short for making debt repayments. -101.05[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,473.46[b]
Net Assets.............................. -9,473.46[/b]
[i]Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
0 -
An asset is something you own that has a value.
Are you sure that one or both of you don't qualify for PIP ?
If you go down to the woods today you better not go alone.0 -
Dave Ramsay would say you don't have a spending problem, you have an income problem.
Given any increase in income you personally get will be subject to tax and NI, it really is best if your wife earns more as jointly you'll benefit for the full wage packet.
Secondly, you've added your wife's income into the budget, so if she's pay £120 every fortnight for groceries, your joint expenditure is £240 every 4 weeks. And since there are 4.3 weeks in a calendar month your grocery spend is £258 pcm. And you should be saving every month towards the MOT so it doesn't go on cards.
You don't need to redo the SOA every time you respond to queries. You've enough posts to edit if necessary, but maybe wait until others have responded.
You've indicated that 3 cards are on 0% right now, can you respond separately telling us which ones and when the deals end, please.
The basic is that if you put together a sustainable budget you can afford about £4-500 towards you debt. So you are already running a negative balance every month. Which will get larger when the 0% deals end.
So you'll owe another £5-10k by this time next year. That situation needs to stop now.
Either your wife earns enough to make up the deficit or you jointly choose to stop paying now, save like fury until the debts default and pay what you can afford to clear the debt over the next 3-4 years.
To what extent is your wife aware of the financial problems?
If you've have not made a mistake, you've made nothing1
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