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  • FIRST POST
    • sara77
    • By sara77 2nd Jan 18, 10:48 AM
    • 10Posts
    • 10Thanks
    sara77
    In a mess
    • #1
    • 2nd Jan 18, 10:48 AM
    In a mess 2nd Jan 18 at 10:48 AM
    Hi

    Hoping you can help me or at least advise me what my best options would be.

    I!!!8217;m in a mess(again ) with finances and even though I haven!!!8217;t missed any payments yet, it won!!!8217;t be long until that happens.

    The 2 loan and catalogue payments are high and once they have been paid I!!!8217;m not left with much and have been using credit cards to pay for day to day items, I am now seriously close to hitting the limits with these so will be left with nothing unless I stop paying the debts off. I!!!8217;ve attached my SOA (not got the APRs to hand) as a starter for 10. I can!!!8217;t get any more credit so that is not an option. I don!!!8217;t think I want to go down the debt management plan as the creditors can still contact you and send debt collectors knocking ( I don!!!8217;t think I could take the stress of this again !!!8211;did the DMP last time I was in a mess !!!61516;). I need my car to travel to work, take my nan to medical appointments and to pick up my niece once a week.

    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1350
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1350


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 400
    Management charge (leasehold property).. 0
    Council tax............................. 90
    Electricity............................. 30
    Gas..................................... 30
    Oil..................................... 0
    Water rates............................. 45.58
    Telephone (land line)................... 10
    Mobile phone............................ 20
    TV Licence.............................. 12
    Satellite/Cable TV...................... 15
    Internet Services....................... 10
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 50
    Road tax................................ 9.68
    Car Insurance........................... 30
    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................. 25
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 35
    Holiday................................. 0
    Emergency fund.......................... 20
    (Unnamed monthly expense)............... 0
    Total monthly expenses.................. 1032.26



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 4000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan 1 ........................15000.....280.......0
    Loan 2.........................10000.....222.......0
    Credit Card 1..................1900......120.......0
    Catelogue......................1850......100...... .0
    Credit Card 4..................500.......25........0
    Credit Card 3..................900.......25........0
    Credit Card 2..................900.......25........0
    Total unsecured debts..........31050.....797.......-



    Monthly Budget Summary

    Total monthly income.................... 1,350
    Expenses (including HP & secured debts). 1,032.26
    Available for debt repayments........... 317.74
    Monthly UNsecured debt repayments....... 797
    Amount short for making debt repayments. -479.26


    Personal Balance Sheet Summary
    Total assets (things you own)........... 4,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -31,050
    Net Assets.............................. -27,050



    TIA
    S
Page 2
    • sara77
    • By sara77 3rd Jan 18, 8:30 AM
    • 10 Posts
    • 10 Thanks
    sara77
    Hey Sara77, who are your loans with? Rather than an IVA or going bankrupt there may be another solution.
    Originally posted by datlex
    Tesco and Creation finance
    • sara77
    • By sara77 3rd Jan 18, 8:33 AM
    • 10 Posts
    • 10 Thanks
    sara77
    Hi,

    You have no property to protect, and few assets.

    With such a shortfall in disposable income, itís likely a DMP would take a very long time, an IVA would not be possible for the same reason.

    Whatís stopping you going bankrupt ?
    Originally posted by sourcrates
    I work for a government agency so would need to check with HR to make sure it wouldn't be a problem.
    • clairebeth
    • By clairebeth 3rd Jan 18, 12:53 PM
    • 160 Posts
    • 69 Thanks
    clairebeth
    Hi, I have no real knowledge of debt solutions, but I wonder, if you are single and have no dependents, is there anything stopping you getting a second job? You say you take your Nan to appointments etc...perhaps you have the qualities that wild be suitable for being a home help/carer? You could work weekends or overnight. When I was a student I used to do 'sleepovers' which was literally staying overnight in someone's house, maybe help them to the toilet and intro bed and was paid £50 for it,.them got up and went to uni. Just a suggestion. But if you really don't want to go down the other routes, then increasing your income is the only solution. Have a look at Dave Ramsey UK Babysteppers on Facebook or budget_newbie_paying_off_debt amongst others on Instagram for inspiration. All the best!
    • uphillstruggler
    • By uphillstruggler 3rd Jan 18, 1:57 PM
    • 141 Posts
    • 791 Thanks
    uphillstruggler
    As others have said, don't be afraid to call StepChange. My biggest regret was trying to keep everything together, get together every penny I could and make repayments when it was not feasible in any way. Had I defaulted on my debts earlier, they would probably already have dropped off my file now. Instead I tried to do the "right" thing by making those repayments, and driving myself into the ground in the process. StepChange were brilliant. I had a self-managed plan where I paid my creditors a token fee per month. Get help now; there is light at the end of the tunnel. Good luck and all the best.
    US
    Last edited by uphillstruggler; 03-01-2018 at 2:00 PM.
    Emergencies account: £500/500
    Groceries Feb 2018: EUR74.52/150 NSD Feb 2018: 1/8
    • NekoZombie
    • By NekoZombie 3rd Jan 18, 2:12 PM
    • 1,623 Posts
    • 1,505 Thanks
    NekoZombie
    Sarah you must be feeling a lot of strain and worry at the moment, as this is a big debt in comparison to your earnings. Do call StepChange at the very least you will get some emotional support which will help to no end.
    BCSC Member 70
    .
    • datlex
    • By datlex 4th Jan 18, 12:10 AM
    • 1,651 Posts
    • 1,548 Thanks
    datlex
    Speak to the loan companies and see if you can come to an arrangement with them. They won't want you to default and not pay them. The bottom line is you can not afford to pay what you don't have. It may take longer to pay but it should be at a more affordable rate. I personally had a loan with first direct reduced from £250 to £75 due to difficulties I was in simply because I spoke to them before I missed payments or defaulted. I paid off the loan in full, actually quicker than I had expected to when the arrangement was first set up. Heck they might even be able to offer you a payment holiday as part of the arrangement which should allow you to tackle a credit card.
    • sourcrates
    • By sourcrates 4th Jan 18, 12:30 AM
    • 14,304 Posts
    • 13,517 Thanks
    sourcrates
    If you were lucky, and all your creditors stopped interest and charges, it would take you nearly 9 years @ £300 per month, to repay your current balance.

    If you could bring in more money, obviously that term would reduce, if interest wasn!!!8217;t stopped, then the term would be significantly longer.

    Bankrupcy would last one year, be on your file for a further 5 years, and you would have to pay an IPA for 3 years.

    That!!!8217;s your choices.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • cathrob
    • By cathrob 7th Jan 18, 5:20 PM
    • 8 Posts
    • 9 Thanks
    cathrob
    I was in same situation. Using credit to pay down debts. It got so bad i finally told husband. What a relief. Stepchange have been great. My first payment just been taken. 3 out of 8 creditors already accepted. Its still early days and scary but u have to do something. It cant go on x
    • sourcrates
    • By sourcrates 7th Jan 18, 5:48 PM
    • 14,304 Posts
    • 13,517 Thanks
    sourcrates
    As others have said, don't be afraid to call StepChange. My biggest regret was trying to keep everything together, get together every penny I could and make repayments when it was not feasible in any way. Had I defaulted on my debts earlier, they would probably already have dropped off my file now. Instead I tried to do the "right" thing by making those repayments, and driving myself into the ground in the process. StepChange were brilliant. I had a self-managed plan where I paid my creditors a token fee per month. Get help now; there is light at the end of the tunnel. Good luck and all the best.
    US
    Originally posted by uphillstruggler
    Have to agree wholeheartedly with this.

    I have read so many posts from people who throw all there money at debts they are never likley to clear using normal repayment methods, going without food, heating, whatever, just in order to pay the creditors.

    Itís not nessessary, too many people wait far too long, instead of asking for help sooner, the help is there, all you have to do is ask for it, far better not to wait.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • enthusiasticsaver
    • By enthusiasticsaver 7th Jan 18, 9:16 PM
    • 6,601 Posts
    • 13,820 Thanks
    enthusiasticsaver
    I am afraid that Bankruptcy looks like the best option to me but I am not sure that you will be able to keep the car if it is worth £4k. I am sure there are others who know more but I thought you could keep a car if it was worth £1k or less.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • pennystretcher
    • By pennystretcher 11th Jan 18, 8:51 PM
    • 386 Posts
    • 1,448 Thanks
    pennystretcher
    Water rates - are you on a meter? If not, might work out cheaper?
    Electricity and gas - £60 a month is a lot. I have a 3-bed semi and I pay £35pm and that covers up winter months easily enough...dig out those jumpers and turn down heating...
    Satellite/Cable TV - you cannot afford this. If you are not tied into a contract get rid of it.
    Mortgage free
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