Breaking news to partner!!

Ando · 24 May 2009 at 11:16PM

Hello all, Having a terrible time at the minute. I have managed to accumalate large debts, not with a lifestyle overhaul, just to live while I tried to get my business to recover.
Problem is my partner doesn't know a thing about the situation. I am petrified of what she will say or do when she finds out. We have been together for 10 years and we have 2 kids.
Things aren't as bad as CCJs, defaults or debt collectors,but it's getting that way. What's the best way to go about this?

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Horace · 24 May 2009 at 11:20PM

Hi and welcome

If you can post your SOA (Statement of Affairs) https://www.makesenseofcards.com/soacalc.html and follow the instructions to copy and past it here. We can have a pick over it and make some suggestions.

If you have been together 10 years then you need to be honest with her - say that due to the recession that you are finding it a struggle and that you can no longer afford everything that she wants. (sorry if this last bit sounds rude - but really she needs to know).

Ando · 24 May 2009 at 11:58PM

Okay here it is. Cripes that was hard and painfull

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 100
Other income............................ 0
Total monthly income.................... 1600

Monthly Expense Details
Mortgage................................ 326
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 90
Gas..................................... 40
Oil..................................... 0
Water rates............................. 12
Telephone (land line)................... 30
Mobile phone............................ 35
TV Licence.............................. 10
Satellite/Cable TV...................... 42
Internet Services....................... 0
Groceries etc. ......................... 380
Clothing................................ 50
Petrol/diesel........................... 40
Road tax................................ 13
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 100
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 17
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1445

Assets
Cash.................................... 0
House value (Gross)..................... 78000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 81000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 52000....(326)......1.95
Total secured & HP debts...... 52000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
egg...........................13200.....200.......0
MBNA...........................8200......160.......34.9
barclaycard....................4200......100.......0
loan...........................3000......224.......0
overdraft......................2000......20........0
marbles........................2500......60........0
Total unsecured debts..........33100.....764.......-

Monthly Budget Summary
Total monthly income.................... 1,600
Expenses (including HP & secured debts). 1,445
Available for debt repayments........... 155
Monthly UNsecured debt repayments....... 764
Amount short for making debt repayments. -609

Personal Balance Sheet Summary
Total assets (things you own)........... 81,000
Total HP & Secured debt................. -52,000
Total Unsecured debt.................... -33,100
Net Assets.............................. -4,100

Bismarck · 25 May 2009 at 12:10AM

evening....

been there, done that....I'm still living to tell the tale!

well done for posting...not easy getting it down on paper...

you know it won't be pleasant and there are some great folks at showing how to make the changes that need to be done.

couldn't help noticing that you have 2 kids and only £100 in benefits, is that child benefit, if so what is the score regarding tax credits?

on another "good" note, your priority debts should be OK for the time being - these are the ones that can really hurt you if you don't make them.

take it from me : tell your partner. it may take a long time to sort but you can't do it on your own and it's hard enough trying to fix it without having to do it in secret.

gotta go but take care and keep posting....

Bis

Merlinexcalibur · 25 May 2009 at 12:21AM

TV Licence is £12 (bar a few pennies) now.

Satellite/Cable TV...................... 42

That cut be could. Unless, as I note you don't have anything for internet services, it's an all inclusive package.

Medical (prescriptions, dentist etc).... 100

This I don't know but you may be elligible for free prescriptions but I am not sure if your income is 'low' enough to qualify. Might be worth you looking it up online.

BitterAndTwisted · 25 May 2009 at 12:34AM

Ando wrote: »

Things aren't as bad as CCJs, defaults or debt collectors, but it's getting that way. What's the best way to go about this?

Print out your SOA, buy a bottle of (cheap) wine and put the kids to bed. Once she's drunk the first glass, break it to her gently. I'm sure it'll be a huge weight off your shoulders and I'm sure if your relationship is rock-solid she'll support you in your new cost-cutting, frugal life-style. The kids might even enjoy the challenge as well.

There's a huge amount of scope to reduce your costs and it'll make you feel like you're making real headway. Getting rid of that second car should be the first step, I reckon. You'll find a huge amount of practical advice and support on here. Good luck: it probably isn't going to be as bad as you think it is.

Barneysmom · 25 May 2009 at 12:45AM

Hello, thanks for plucking up the courage to post your soa.
I think it would be wise to tell her as soon as possible, only you know her and how she might react. She'll be upset but at least when it's out in the open you can deal with it together.

Your prescriptions Have you looked into buying an anual certificate, it might work out cheaper if you did it that way - that's if you should be paying at all. Have a look at the site and see?

http://www.nhsbsa.nhs.uk/1127.aspx

I think if you stay on here and lood at the old style Moneysaving board there are loads of ways to cut the cost of your grocery bill. This is also a good site.

http://frugal-cooking.co.uk/recipe/193/batch-bake-minced-beef-recipe

MBNA...........................8200......160...... .34.9

Is there any way of transferring this loan to one of the other as the rate is very high?

SueP19 · 25 May 2009 at 7:23AM

Hi Ando, I been exactly where you are right now
There will be tears and anger, but you have to remember that is the shock talking. In the end with me I took the line that with my OH that he had ignored everything and gone gaily along leaving me to cope, even though the signs were there. I asked him is he was not guilty of burying his head in the sand.
I am sure your OH knows things are not good, so be brave and tell her.
On an SOA point do go to the benefits website to make sure you are getting enough benefit, it may be that you are just above the limit but you should get WFTC. If your self employed I am sure your Accountant could help you with this.
Good luck

Changingme · 25 May 2009 at 8:10AM

I have 2 children and get £132.80 a month for child benefit this is the one you get from birth till 16 get this checked.

Primula · 25 May 2009 at 9:54AM

Hello and welcome
I also think you should tell your partner, it will be difficult but you need to do it and then you can both try and sort things out together. I'm guessing you didn't spend all the money on yourself or on gamling or anything like that?
There are quite a lot of savings you could make on your SoA:-
Electricity
Phones
Food
Clothing
Medical? £100 seems high
Haircuts.
But you really need to tell your partner or she will just expect to carry on living as before.
Also, on the salary you are on, my opinion is that two cars is a luxury you cannot really afford and going by your petrol costs, you dont seem to use them all that much? So you could save a fair bit by getting rid of one of the cars.
Anyway, just a few wee suggestions. Good luck. I'm going to subscribe and will be back to see how you get on. Do keep us updated!
P

Ando · 25 May 2009 at 10:32AM

Bismarck wrote: »

couldn't help noticing that you have 2 kids and only £100 in benefits, is that child benefit, if so what is the score regarding tax credits?

Bis

We get about £70 pm tax credits. The family allowance goes straight into the OHs bank which she has.

Sorry I kinda guessed that one

Breaking news to partner!!

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