Drowning...Need a liferaft

jlanky81

A newby to this site after a recommendation from a work colleague.

Currently in a really low place at the moment and think I probably needed to reach this rock bottom as a wake-up call but feel very isolated and alone because I feel too ashamed and embarrassed to speak to my friends about my debt.

I currently owe about £15,858 as a consolidation loan and 2 credit cards balances Ended up with my bank having to give me an informal overdraft request this month when I went over my limit. Unfortunately, after doing a monthly budget I've discovered that I'm still about £150 short of my monthly outgoings this month so I approached my bank for an overdraft increase; but was refused and they don't seem to wanna know. Decided to try selling unwanted stuff on Amazon to try to make up the deficit as I aren't sure where else to turn.

Advice to help me get on the path to a debt free existance and some hope that there is a light somewhere at the end of the tunnel for me would be greatly appreciated.

Bismarck

Well done for posting...

Can't say anything in detail without knowing more about your situation - but you should try and get some help from CCCS or CAB or talk to your friends....you need to do this or you'll burst! IF they are good friends you'll find out to your advantage and if the problem's doing this to you then a good friend would want to be able to help emotionally.

Stick around and some more help will arrive...folks on here are good like that...

poorandindenial

Hello there

First things first, we need a bit more info before we can give you any decent advice (don't worry, most people have better advice to give than me). Could you complete a full SOA and post it here so that we can see your current situation. Then people will look through your incomings and outgoings and see where they can help you to save money. You might also want to check out the up your income board for ideas for ways to make cash.

Link to tool to help you with SOA: Click here

Link to list of debt charities - they won't charge you for their services

mum2one

Youve done the hardest step there is, youve had your lightbulb moment, and looked at your total debts.

The 1st thing I would suggest is post a SOA (statement of affairs), listing all incomings and all outgoings, and there may be ways that other people can suggest where you may be able to do cut backs.

Also check out the old style boards, there an absolute god sends re recipies, what to use instead of x,y,z etc.

x

thevinternet

Hi there, welcome to the greatest forum ever! It's helped me out no end, so hopefully it will do the same for you.

You say you owe 15k, can you give us a break down of the loan and the cards with the % on please? I'm guessing you took out a loan and then respent on your cards, just like I did?:o

Also if you get a chance, you could post an SOA, which basically shows all your incomings and outgoings, then we might be able to help to show you ways of saving money.

In the meantime...

1. Can you get a new credit card, with 0% on balance transfers, and transfer a balance across? You absolutely MUST NOT spend on it though - if I do this I usually cut the card up as soon as I've made the BT to stop me using it whatsoever. You don't need the card to make payments to the credit card account.

2. Is there any chance of taking a second job? This is what I've done at weekends, and it has two advantages...you make more money every month, and you aren't out spending in the shops on a Saturday!

V xxx

poorandindenial

thevinternet wrote: »

I'm guessing you took out a loan and then respent on your cards, just like I did?:o

Yup me too, several times

jlanky81 wrote:

Currently in a really low place at the moment and think I probably needed to reach this rock bottom as a wake-up call but feel very isolated and alone because I feel too ashamed and embarrassed to speak to my friends about my debt.

No need to be embarrassed or ashamed on here, we are all in the same boat (or have been) and no-one will judge you on this board. Check out my little bundle of debt, not one person has criticised me for it, just supported me to sort it out.:D

jlanky81

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1100.56
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1100.56

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 325
Management charge (leasehold flat)...... 0
Council tax............................. 55
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 10
Mobile phone............................ 40
TV Licence.............................. 11.61
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
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)...... 0
Haircuts................................ 0
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 771.61

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Consolidation Loan.............14090.....270.......0
Barclaycard....................1000......25........0
Eggcard........................750.......25........0
Total unsecured debts..........15840.....320.......-

Monthly Budget Summary
Total monthly income.................... 1,100.56
Expenses (including secure debts)....... 771.61
Available for debt repayments........... 328.95
Monthly UNsecured debt repayments....... 320
Surplus(deficit if negative)............ 8.95

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -15,840
Personal net worth...................... -15,840

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

poorandindenial

jlanky81 wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1100.56
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1100.56

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 325
Management charge (leasehold flat)...... 0
Council tax............................. 55
Electricity............................. 25 (I don't think this is bad but it never hurts to check that you are with the cheapest supplier and also to recheck things like using energy saving lightbulbs and going on a real'turn the lights off, don't leave things on standby' type drive)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 10
Mobile phone............................ 40 (this is really quite high, can you reduce your contract if you are on pay monthly, you might also do well to ditch any contract and go PAYG if you haven't already)
TV Licence.............................. 11.61
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 200 (you can probably trim this down, how many people is it feeding?? Check out the moneysaving old style board for ways to cut the cost of groceries)
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
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)...... 0
Haircuts................................ 0
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 771.61

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Consolidation Loan.............14090.....270.......0
Barclaycard....................1000......25........0
Eggcard........................750.......25........0
Total unsecured debts..........15840.....320.......-

Monthly Budget Summary
Total monthly income.................... 1,100.56
Expenses (including secure debts)....... 771.61
Available for debt repayments........... 328.95
Monthly UNsecured debt repayments....... 320
Surplus(deficit if negative)............ 8.95

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -15,840
Personal net worth...................... -15,840

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

OK, most of it isn't looking to bad, I have just highlighted a couple of areas that you can probably cut down.

According to this there is a very small surplus at the end of the month, I suspect there are things that cost that you haven't factored into your SOA, try keeping a spending diary for a few weeks and then take some time to review what you have spent money on and see if you can identify any further areas for cutting back. You also haven't put in any leeway for birthdays and other things that crop up from time to time.

You have factored in an emergency fund but don't show any cash in your assets, is this a new plan??

All your debts are showing as 0% APR, is this right?

Sorry, lots more questions for you;)

LilacPixie

Do you live alone?? if so £200 per month is quite high for groceries. I spend that for us which is 2 adults one child and 2 spoiled cats. I learned lots by going over to the old style board and asking for meal plans and they were all very obliging.

jlanky81

I live alone. The food bill is quite high because I don't have a freezer (just a fridge), which means I have to buy fresh food each week, so usually spend between £40-£50 each week.

I am on a 18 month contract with my mobile, which normally works out between £30-£40, depending on if I go over my text message allowance.

Loan APR is 8.9%
Barclaycard APR is 14.9%
Eggcard APR is 17.9%

LilacPixie

Fresh food is fine but honestly you can half your shopping bill without a freezer. an extra £100 a month would go a long way to clearing that egg card balance.