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In a spot of bother!

21 replies 3.7K views
xFedUpxxFedUpx Forumite
9 posts
First Post
Hiya long time lurker of this forum finally made an account.
What is the best way to go about my debts what i have stupidly racked up over the years. Our income is not great.
Any advice  Jade x

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Replies

  • sourcratessourcrates Forumite, Board Guide
    21.4K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
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    Welcome to the forum jade, how long is a piece of string ?
    In order to answer your question, you first must give us a run down of your income/expenditure/debts etc, you do this by going to the sticky thead and clicking on the SOA button taking you to stoozing.com (statement of affairs) fill it in as accuratly as you can, then format it for MSE when it asks you, then post it on this thread.

    We need figures and circumstances in order to be able to offer advice, as with debt solutions, one size does not fit all.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • xFedUpxxFedUpx Forumite
    9 posts
    First Post
    Hiya thank you.
    I have done the best i can, sadly i am unsure of the aprs, they are low thou apart from the credit cards and little woods. X
  • xFedUpxxFedUpx Forumite
    9 posts
    First Post
    [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.................... 0[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 0
    Partners monthly income after tax....... 1405
    Benefits................................ 740
    Other income............................ 0[b]
    Total monthly income.................... 2145[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 650
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 131
    Electricity............................. 90
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 0
    Mobile phone............................ 65
    TV Licence.............................. 13
    Satellite/Cable TV...................... 15
    Internet Services....................... 35
    Groceries etc. ......................... 350
    Clothing................................ 50
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 200
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 15
    Buildings insurance..................... 0
    Contents insurance...................... 22
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 20
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 1791[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 160000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 160000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 150000...(650)......0[b]
    Total secured & HP debts...... 150000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Zopa Loan......................7800......240.......0
    Tesco loan.....................17500.....302.......0
    Littlewoods....................2300......70........0
    Family.........................6500......200.......0
    Mbna cc........................6300......120.......0[b]
    Total unsecured debts..........40400.....932.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,145
    Expenses (including HP & secured debts). 1,791
    Available for debt repayments........... 354
    Monthly UNsecured debt repayments....... 932[b]
    Amount short for making debt repayments. -578[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 160,000
    Total HP & Secured debt................. -150,000
    Total Unsecured debt.................... -40,400[b]
    Net Assets.............................. -30,400[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • kazwookiekazwookie Forumite
    11.9K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    Hi

    What did you use the large loan money for?
    You can cut food, pop over to the old style board for thoughts and ideas, als oshop a brand below what you normally do.

    Good luck
    :) Sun, Sea :)

  • RobM99RobM99 Forumite
    415 posts
    100 Posts Third Anniversary Photogenic Name Dropper
    ✭✭
    Electricity seems high, try another supplier.
  • edited 12 July at 8:14PM
    fatbellyfatbelly Forumite
    15.4K posts
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
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    edited 12 July at 8:14PM
    A homeowner with 40k debt and £350 pcm available. Getting deja vu as it's very similar to my previous post.
    Safest strategy is a debt management plan but it will take a long time - over 9 years.
    You can use Stepchange or Payplan (neither charge a fee) or do-it-yourself
  • FatsdomFatsdom Forumite
    43 posts
    Ninth Anniversary 10 Posts Name Dropper Combo Breaker
    Knocking a tenner off clothes and haircuts would be a great start. 
  • xFedUpxxFedUpx Forumite
    9 posts
    First Post
    I will try better with food, we do have twins 3year old which is added cost.
    electricity is low  it was 130 at one point
    we live in a very cold house.
    I am also trying to find a part time job, just hard when my partner leaves the house at 7am and only return home gone 6pm and we dont drive.
    Would an iva be suitable, if so would they allow us to keep  payIng   partner parents as we still
    owe them money x

  • edited 12 July at 8:51PM
    RASRAS Forumite
    28.6K posts
    Part of the Furniture 10,000 Posts
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    edited 12 July at 8:51PM
    If you do an IVA you aren't allowed to pay anyone including the partner's parents any more than the percentage allowed to the other creditors, about 40% of expected payment. 

    Talk to a debt charity namely stepchange or national debt line. Not a fee charging compamy

    The person who has not made a mistake, has made nothing
  • natlienatlie Forumite
    1.6K posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭
    Hi

    I think given the difference between your income and outgoings that changes to you spending aren't going to help much and you are better off speaking to StepChange or similar about a DMP. I started my DMP this month and I now have money going in to pots for clothing and haircuts and things that i have never been able to afford, plus i am making a monthly payment to all my creditors. Its been life changing for me. I know it affects your credit rating but you already have your own house and so you are in a good place. 
    A DMP will also let you pay back your family debts. 
    I think you also need to review your spending habits too though as that is a significant amount of debt and you need to understand how it happened and how you can stop it happening again
    Nat
    DMP: £30,668 £29,109.15
    EF & Pots: £1455.01/£5000
    Debt Free: April Feb 2024
    Income from decluttering 2020: £102.80
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