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  • FIRST POST
    • Gamechanger8
    • By Gamechanger8 10th Nov 19, 4:15 PM
    • 5Posts
    • 6Thanks
    Gamechanger8
    At breaking point!
    • #1
    • 10th Nov 19, 4:15 PM
    At breaking point! 10th Nov 19 at 4:15 PM
    Hello all, i have been reading many posts over a period of time now, and now its my time to face up to my situation, i have been in and out of debt since i was 18 years old, now 36.
    4 years ago I owed £3000 with a overdraft with Lloyds, as there fees had changed I knew I would be in trouble with this, I went to the bank & took a loan out for £21k & paid off my overdraft & credit cards.
    stupidly I kept the credit cards & over a 4 year period I have maxed them out again, mainly building a comfortable family home (private rent) getting by while my wife was on maternity leave & our wedding last year. no excuses I have been irresponsible & only myself to blame.

    As of today I owe around £38k
    I earn around £26k take home
    Take home pay is £360 a week on a flat week & £450 a week with overtime (most weeks)
    Overtime I do between 8-13 hours a week have been doing this as long as I can remember mainly just to keep my head above water.

    My wife pays our bills I give her £160 a week plus I pay for our weekly shop £60-£80 a week (planned meals)

    Unsecured Debt:
    Lloyds Loan:£17849
    Lloyds credit card:£4400
    Barclaycard credit card:£7000
    Halifax credit card:£1700
    Mbna credit card:£4000
    Nationwide:credit card £3000
    Next:£600

    Other outgoings:
    Petrol:£30 every two weeks
    Car tax:£28 pcm
    Car insurance:£19 pcm
    Gym:£5 a week
    Amazon Music:£7.99 pcm
    Netflix:£8.99 pcm
    o2 sim only: £20

    I know I am in trouble, I was considering a IVA as a option, what would happen if I did go down that route with regards to earning overtime? I mainly do overtime to keep my head above water, I work my day off in the week & a extra afternoon shift.

    Any help or advice you could give me would be much appreciated, this is my first step to moving forward, just getting things in order before I seek help from a organization like step change.

    kind regards Leigh.
Page 1
    • MovingForwards
    • By MovingForwards 10th Nov 19, 4:32 PM
    • 2,655 Posts
    • 3,135 Thanks
    MovingForwards
    • #2
    • 10th Nov 19, 4:32 PM
    • #2
    • 10th Nov 19, 4:32 PM
    You need to do a full statement of affairs as we can't see where your money goes, what your payments are, Apr, where could be cut back etc.
    • fannyadams
    • By fannyadams 10th Nov 19, 4:40 PM
    • 1,645 Posts
    • 2,503 Thanks
    fannyadams
    • #3
    • 10th Nov 19, 4:40 PM
    • #3
    • 10th Nov 19, 4:40 PM
    Hi Leigh, welcome to MSE.

    If you put a full statement of affairs thingy uploaded to here it'll give the DFWs something to chew on.

    I think this is one that you can use.

    https://www.moneysavingexpert.com/banking/Budget-planning/#bplanner

    They'll need ALL the info as MovinG Forwards has said, then you're more likely to get help.
    All the best
    --
    FA
    just in case you need to know:
    HWTHMBO - He Who Thinks He Must Be Obeyed
    DS#1 - my teenaged son
    DS#2 - my other teenaged son
    Barkin Things - my two retired greyhounds
    • D_M_E
    • By D_M_E 10th Nov 19, 4:53 PM
    • 2,844 Posts
    • 73,415 Thanks
    D_M_E
    • #4
    • 10th Nov 19, 4:53 PM
    • #4
    • 10th Nov 19, 4:53 PM
    Fill in the SOA at https://www.lemonfool.co.uk/financecalculators/ format for MSE and post here and people can look over it and suggest areas where you may be able to save.
    • Gamechanger8
    • By Gamechanger8 10th Nov 19, 6:09 PM
    • 5 Posts
    • 6 Thanks
    Gamechanger8
    • #5
    • 10th Nov 19, 6:09 PM
    • #5
    • 10th Nov 19, 6:09 PM
    Thanks for the replies i will get a SOA sorted asap
    • monkey1000
    • By monkey1000 10th Nov 19, 6:12 PM
    • 13 Posts
    • 26 Thanks
    monkey1000
    • #6
    • 10th Nov 19, 6:12 PM
    • #6
    • 10th Nov 19, 6:12 PM
    I was in the same situation as you, and I took out a debt management plan, so agreed what I could afford after bills, and have been paying it for the last 5 years. It gets recalculated every year. Iíve got 1 year left. My debts were much larger than yours, but had 2 salaries as well.
    • Gamechanger8
    • By Gamechanger8 10th Nov 19, 7:10 PM
    • 5 Posts
    • 6 Thanks
    Gamechanger8
    • #7
    • 10th Nov 19, 7:10 PM
    • #7
    • 10th Nov 19, 7:10 PM
    Hi nice to hear from you & appreciate your reply, may I ask who you went to for help?
    Obviously I am going to put up a SOA tomorrow, with all of my outgoing’s but truth is I’m drowning & need some real help. Thanks for your time leigh.
    • Willing2Learn
    • By Willing2Learn 10th Nov 19, 7:19 PM
    • 4,755 Posts
    • 4,304 Thanks
    Willing2Learn
    • #8
    • 10th Nov 19, 7:19 PM
    • #8
    • 10th Nov 19, 7:19 PM
    As well as completing and posting your SOA on this thread, I would also recommend filling out the budget sheet with National Debtline. You can then contact them by telephone on Monday/Tuesday to discuss your options (0808 808 4000)

    https://tools.nationaldebtline.org/yourbudget/
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 10th Nov 19, 9:14 PM
    • 18,754 Posts
    • 17,667 Thanks
    sourcrates
    • #9
    • 10th Nov 19, 9:14 PM
    • #9
    • 10th Nov 19, 9:14 PM
    Hi nice to hear from you & appreciate your reply, may I ask who you went to for help?
    Obviously I am going to put up a SOA tomorrow, with all of my outgoingís but truth is Iím drowning & need some real help. Thanks for your time leigh.
    Originally posted by Gamechanger8
    National Debtline, stepchange, payplan, all offer free debt advice and free debt management plans.
    Do not use a fee charging private company, you do not need to pay for advice, or debt management, be careful when you use a search engine as these pirates pay to be the top hits, for obvious reasons.
    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:
    forumteam@moneysavingexpert.com.
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • Gamechanger8
    • By Gamechanger8 12th Nov 19, 7:49 PM
    • 5 Posts
    • 6 Thanks
    Gamechanger8
    Anyone else got a link for a SOA please I’ve tried a cpl now & keep losing the information or they crash.
    • sourcrates
    • By sourcrates 12th Nov 19, 8:09 PM
    • 18,754 Posts
    • 17,667 Thanks
    sourcrates
    Anyone else got a link for a SOA please Iíve tried a cpl now & keep losing the information or they crash.
    Originally posted by Gamechanger8
    This is the one we use now :
    https://www.lemonfool.co.uk/financecalculators/soa.php
    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:
    forumteam@moneysavingexpert.com.
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • Gamechanger8
    • By Gamechanger8 12th Nov 19, 8:11 PM
    • 5 Posts
    • 6 Thanks
    Gamechanger8
    Take home pay: 1900
    2 adults 2 children

    Unsecured Debt:
    Lloyds Loan:£17849 - £397 pcm
    Lloyds credit card:£4400 - £100 pcm
    Barclaycard credit card:£7000- £200 pcm
    Halifax credit card:£1700- £45 pcm
    Mbna credit card:£4000 - £65 pcm
    Nationwide:credit card £3000- £35 pcm
    Next:£600- £30 pcm

    Other outgoings:
    Payment to wife who sorts all household bills £160 pw
    Shopping £60-80pw (planned meals)
    Petrol:£60 pcm
    Car tax:£28 pcm
    Car insurance:£19 pcm
    Gym:£5 a week
    Amazon Music:£7.99 pcm
    Netflix:£8.99 pcm
    o2 sim only: £20 pcm
    • EssexHebridean
    • By EssexHebridean 13th Nov 19, 12:46 PM
    • 9,779 Posts
    • 49,776 Thanks
    EssexHebridean
    OP can you use the standard template for the SOA do you think - what you've posted seems to switch between weekly and monthly amounts and this makes it incredibly difficult to see what's going on. It also leaves out a lot of essential stuff like clothing, medical/dental costs, haircuts and a lot more. Does the transfer to your wife cover mortgage or rent, council tax etc as well as utilities, for example? If your money for shopping the whole spend or does she contribute there as well?

    Looking at what you've posted though you're in around 38k of debt which is a lot for someone on that income - I'm not surprised you're feeling the strain. just from a quick scan of what you've posted it looks to me like you're in deficit every month so you're right to try to tackle the situation now before it gets any worse.
    Last edited by EssexHebridean; 13-11-2019 at 12:48 PM.
    MORTGAGE FREE 30/09/2016
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    • Andyjflet
    • By Andyjflet 13th Nov 19, 1:23 PM
    • 156 Posts
    • 136 Thanks
    Andyjflet
    The good news is that by stopping Netflix / Gym and Amazon you are saving £22 a month which you can start to put towards a snowball system on the debts. Start with Next for a quick win, pay the minimums on the other debts until Next is cleared. I have had prior experience with Next back in 2004 and I would never touch them again to be honest.

    You also need to sit down with your OH and sort a budget, transferring as much to the debt as you can, do you have an emergency fund ?
    Baby Step 1 - £0 saved for emergency fund
    M&S Loan £14708 inc interest full term
    Santander 0% CC £1283
    Sainsburys 0% CC £2612
    Hitachi Loan 0% £216 ends March 2020
    • tallyhoh
    • By tallyhoh 13th Nov 19, 4:14 PM
    • 2,212 Posts
    • 2,349 Thanks
    tallyhoh
    I think there is an awful lot missing from your SOA. Stuff like car maintenance, MOT + service.

    Do you buy birthday, christmas presents etc or have a haircut etc?
    Tallyhoh!

    Stopped Smoking October 2000. Saved £21,840 so far!
    • Greenqueen
    • By Greenqueen 14th Nov 19, 12:34 PM
    • 344 Posts
    • 588 Thanks
    Greenqueen
    Look again at the figures for gym (+ Netflix and Amazon) is £450 over a year. For somebody trying to cut costs these should be the first things to be cancelled. Exercise at home/in the park and watch Freeview.
    • bloomfelt
    • By bloomfelt 16th Nov 19, 4:19 PM
    • 206 Posts
    • 997 Thanks
    bloomfelt
    I think there is an awful lot missing from your SOA. Stuff like car maintenance, MOT + service.

    Do you buy birthday, christmas presents etc or have a haircut etc?
    Originally posted by tallyhoh
    Looking at your outgoings that you have put on there they total around £1500 a month which by my reckoning gives you £400 disposable each month.
    Like tallyho says what are you missing off - document everything including if you buy yourself lunch or a coffee on the go during your work week, takeaways, pints with the lads or days out with the family. They all add up and unless you are true to yourself with these you will never get yourself out of debt.

    One little tip i was given is start working toward your smallest debt first - it should be the easiest to clear and will give you a boost when you clear it, as AndyJflet reccomends with your Next.
    Next has fairly high interest too so you probably aren't making much impact with the minimum payment the more you can put in each month will clear it much quicker.
    Last edited by bloomfelt; 16-11-2019 at 4:22 PM.
    £10 a day December £66.18/£310
    £10 a day November £685.74/£300
    £10 a day October £69.09/£310

    Next 05/11/19 - £776.30
    current - £675.36
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