£20k in debt is it easier to just go bankrupt?

24

Comments

  • Oakdene
    Oakdene Posts: 2,560 Forumite
    Combo Breaker First Post
    I note you have a child living with you, but no child benefit. Do they live with you full time?
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydio’n ddolen,
    Dau enaid ond un taith.
  • fatbelly
    fatbelly Posts: 20,454 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    To answer your first question, I wouldn't see this as a bankruptcy situation, at least not at the moment. You would probably lose your car and have an Income Payment Arrangement of £500 x 36, and there is a £680 fee.

    You may need a debt management plan if you can't turn this around but it doesn't look like a disaster to me. Your spending is not too bad but I would use all the resources on this site next time your car insurance renewal comes around. Your soa does need something for car maintenance, and the miscellaneous things at the end of the list.

    If you can get 0% deals you can juggle credit cards and let your monthly payment reduce your debt by that amount.

    Interesting that your monthly shortfall is £86 and that is the amount of child benefit for one child is about that.
  • Oakdene
    Oakdene Posts: 2,560 Forumite
    Combo Breaker First Post
    With the exception of checking to ensure you are receiving the 25% discount for single adult occupancy for council tax, I don't really see where you can save.

    The groceries is about right, though could you try shopping at Lidl/Aldi if you don't already?
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydio’n ddolen,
    Dau enaid ond un taith.
  • MarkMr
    MarkMr Posts: 10 Forumite
    Willing2Learn wrote: »
    Hello again. Well done on the formatting!!!

    The three unsecured debts. Are they loans or cards? If they are cards, what is your combined total credit limit?


    Thanks, the debts are credit cards. One has a £14k limit, the other two are at their max £8k limit.



    I don't think 0% juggling is possible with my current low credit rating.
  • MarkMr
    MarkMr Posts: 10 Forumite
    Oakdene wrote: »
    I note you have a child living with you, but no child benefit. Do they live with you full time?


    Just at the weekend. I was self employed previously to getting this job.


    Oakdene wrote: »
    With the exception of checking to ensure you are receiving the 25% discount for single adult occupancy for council tax, I don't really see where you can save.

    The groceries is about right, though could you try shopping at Lidl/Aldi if you don't already?


    I am getting the 25% single person discount. I already shop at aldi. I generally live quite frugally. Hardly ever eat out or spend on clothing that isn't an immediate need.
  • Oakdene
    Oakdene Posts: 2,560 Forumite
    Combo Breaker First Post
    MarkMr wrote: »
    Just at the weekend. I was self employed previously to getting this job.






    I am getting the 25% single person discount. I already shop at aldi. I generally live quite frugally. Hardly ever eat out or spend on clothing that isn't an immediate need.


    Ok, I think you can shave a fair chunk off the groceries then. My teenage daughter lives with me full time & my son comes every other weekend, I tend to spend £30 a week on groceries, which includes toiletries & cleaning products.
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydio’n ddolen,
    Dau enaid ond un taith.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    First Anniversary Name Dropper First Post Photogenic
    MarkMr wrote: »
    Thanks, the debts are credit cards. One has a £14k limit, the other two are at their max £8k limit.



    I don't think 0% juggling is possible with my current low credit rating.
    You may have some wiggle room.

    Here, have a look at the MSE article Balance Transfer Credit Cards Up to 36mths 0%, 2.49% fee.


    There is an eligibility checker within the article. Give it a go. It only records a 'soft' search on your credit report so as not to have a negative impact. If you can squeeze a 0% for 3 years, that would give you an opportunity to significantly reduce the unsecured debt. :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • sourcrates
    sourcrates Posts: 28,834 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Oakdene wrote: »
    Ok, I think you can shave a fair chunk off the groceries then. My teenage daughter lives with me full time & my son comes every other weekend, I tend to spend £30 a week on groceries, which includes toiletries & cleaning products.
    What do you eat ?
    Seriously you have to live, and £30 is very low, twice that amount would still be low.
    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-letter
  • D_M_E
    D_M_E Posts: 3,008 Forumite
    Name Dropper First Anniversary First Post
    Water for one person seems high - is that on a meter?

    Is the council tax over 10 months? If so, ask council if you can pay over 12 months.

    Nothing for entertainment - what about day out when the child comes to visit?

    EDIT - there's not many SOA's on the forum with a low mobile bill such as yours - but is it contract or is this the total on a PAYG SIM?
  • Oakdene
    Oakdene Posts: 2,560 Forumite
    Combo Breaker First Post
    sourcrates wrote: »
    What do you eat ?
    Seriously you have to live, and £30 is very low, twice that amount would still be low.


    I cook everything from scratch & leftovers is usually my lunch the following day. My daughter takes lunch to school. I use different things, such as lentils & beans, to bulk out meals/
    Dwy galon, un dyhead,
    Dwy dafod ond un iaith,
    Dwy raff yn cydio’n ddolen,
    Dau enaid ond un taith.
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