Author Topic: Dont know what to do?  (Read 2415 times)

LAM83

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Dont know what to do?
« on: Jan 27, 2011, 10:09:42 PM »
Me and husband seem to be in a real mess at the moment and i'm just not sure what to do.
 
Are debt is as follows;
 
HP Car loan      21000  paid at £354 per month
Halifax loan      10000  paid at 250 per month till 2013
Mint card         4000  paid at £95 per month
egg                 2000 paid at £80 per month ( above minimum payment)
yorkshire bank   credit card 3000    paid at 75 per month
yorkshire bank overdraft 1300 paid at 25 per week (taking it off of us)
barclaycard     500     paid at £5 per month
Halifax overdraft   500   costing 30 a month
Debenhams card   180   paid at £7+ a month
 
 
ontop of this we have
 
Rent    635
2 car insurances 100
council tax 95
tv     13
2 phone bills 70
computer  25
eye laser surgery 30
child maintenance 200
 
 
We have tried selling the car but cant get enough to pay the remainder of what we owe, we are hoping to hand it back after half the repayments, although i'm not sure if it's as simple as that???.    We are trying to renegotiate the maintenance (which is going down like a lead balloon as you can imagine)
 
Problem is when we bought the car got eye surgery etc my husband had a fulltime day job and a part time evening job,  he was made redundant and is now a full time student.
 
I only work part time and my husband is self employed and also out of his earnings has about £70 fuel costs per week.   Problem is his work is not always stable.   We are at the moment covering the repayments but i'm aware that paying minimum payments we are probably not making any progress.  We are so up and down some weeks we only have enough for bills and nothing more.
 
Just dont know what to do, whether to struggle on or ???? i dont even know what the other option is.
 
We cant get a consolidation loan i have already tried.
 
:-(
 

Rosie

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Re: Dont know what to do?
« Reply #1 on: Jan 27, 2011, 11:23:46 PM »
Hi there, I'm no finance or debt adviser, just another person in debt really, the difference is I have just another two years to go and mine is finished.  Like you I was in nearly £40k of debt, credit cards, loans and once one was paid off, I would max it out again just getting by to live really, so I know how you feel.  The difference with me and you is that I have a mortgage, but I see you pay rent, so you don't own your own property sort of thing....what I am trying to say is if you don't have any assets, like my partner, he had nothing, he was living with his mum still at the time and he worked for himself roofing, so just a small company but the recession hit him hard and once the work dried up so did his money, he had no choice but to go bankrupt.  I telephoned the County Court, asked for Bankruptcy forms and they sent them, we got out all the creditors that were chasing him for payments, even down to his washing machine, mobilw phone bill. loans, credit cards and listed them all.  He then sat outside the court, because it was a first come first serve basis and was seen that same day.  The court clerk went through all his forms, stamped them and then said to wait to be seen by the Judge.  We went in and my heart sank for him, it seemed like he'd lost everything - BUT it was over with in 5 minutes and the judge declared him bankrupt and all his debts were taken care of.  He can't get any credit and NOR does he want any anymore, so that's no hardship, he has been a different person and all that worry has gone.  If I were you, I'm not telling you to go and do it, but personally I would apply for it if I were in your shoes.  I wish you all the luck whatever you decide to do, we've been there and I know it's hard especially nowerdays with us not knowing how long we have a job for.  You take care and think about what I've said,,,don't feel ashamed if you do go down the road of bankruptcy, whilst we were there at the court that day, there were lots others in the same boat as us too and to have all that worry lifted ....well you just cant put a price on it...pardon the pun!!! Good luck always, Rosie. ;)

Rosie

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Re: Dont know what to do?
« Reply #2 on: Jan 27, 2011, 11:47:48 PM »
Sorry, I fogot to mention the Judge will take the cars off you, but if you think about it, if he grants you bankruptcy, then all that money that you would usually have to find each month for your debts won't be there anymore, so you can save and get a cheaper runaround, until you get back on your feet.  Also if you do apply for bandruptcy, please, please don't raise your hopes that it will most definitley be granted, just incase you are refused, but to me you sound worse off than my partner was, so my fingers will be crossed for you if you do decide to go with it.x 

AshleyPark

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Re: Dont know what to do?
« Reply #3 on: Jan 28, 2011, 09:48:49 AM »
Hi LAM83,
 
It is difficult to offer advice without knowing your full picture (IE your income)
 You should never have to just struggle on and accept it and there are options available to you but without knowing your income i could not give an accurate solution.
 
Have you spoke to anyone about your plight? 
I would suggest completing a full income and expenditure (Most Financial Solutions companies have templates on their website, try cccs.co.uk)
I would also reccommend that you ensure the first payments you make are council tax and your rent. These are what are known as priority debts.
 
I will try and advise more if you can confirm your income figures.
 
Lee
 
 
 
 
Ashley Park Debt Solutions Ltd
 http://www.ashleypa

LAM83

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Re: Dont know what to do?
« Reply #4 on: Jan 28, 2011, 06:34:05 PM »
Thanks Rosie, I dont really know the ins and outs of bankruptcy,  the debts are spread between us, so some in my names some in husbands so i'm assuming this would require us both to go bankrupt?  We have 2 small children and have to provide a roof etc for them so i'm not sure if this an option for us, do you litterally have to give us everything?
 
Ashely Park,    I get 110 a week my husband was getting around 550 a week but we are suppose to save some of that for tax but havent really done that since August, big mess.    Unfortunately Jan is a bad month in his line of work so for the next 3 weeks we will only get 350 a week so it's going to be extremely tight. Should be back to 550 after that.
 
 

Rosie

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Re: Dont know what to do?
« Reply #5 on: Jan 28, 2011, 11:35:15 PM »
Hi Lam83, well to be honest I don't know how it works where a couple are involved, but I do know that my partner was left with everything else he owned, like the tv, stereo, ect and the only thing the judge said had to be taken was going to be the car, but it wasn't worth much, probably about £800 but he was going for job interviews at the time, so he was told after the court attendance that day that he could keep the car because he needed it to get back on his feet.  Nothing changed other than all his creditors being paid off and he can't get credit for something like 5 or 8 years, which he won't ever want again anyway, basically it means with the money you go on to earn thereafter it's yours and what you can't afford with it you just have to go without, but you get the chance to start with a clean slate.  If you owned property, then of course they would say that you do have money tied up in it and will ask you to sell and pay your creditors from that I would assume, but he didn't have any assets at all.  I think you should go and speak to your Citizans Advice Bureau and ask to see a debt advisor there, what can you lose just by asking.  I know I make it sound so easy, but if I'm honest with you, it was over a couple of weeks to get the forms, get it to the court after filling every single creditor he owed to and then the court day, which took literally five minutes to go through and another woman that was before us that we got chatting to, she was in their five minutes too.  Please go and speak to someone more professional than me though, because I don't want to tell you wrong.  I think if the Judge can see that you can no way afford it with money coming in and the money having to go out, especially trying to keep two young kiddies too, it's got to be worth looking into.  I don't want to cause you even more problems though, so please go and speak to your CAB and ask them how to go about it or if there's another way.  I am in a Debt Management Plan and have been for the past 7 years now, I have another two more to go, but what a struggle it has been, but I had no choice because I co-own my property with my elderly parents and I didn't want them to know about my personal debt, so I've had to deal with it and it's been so hard, basically you can join a Debt Management Co. mine is Payplan, they ask you to fill in your outgoings and incomings and they write to your creditors with smaller amounts to offer them, based on what money you have left over once all your usual bills are paid, then they pay each creditor a pro-rata amount each to make it fair to each one, so they are getting the same percentage of the debt owed sort of thing.  I still have struggled though, but it stopped all the creditors chasing me with court orders.  Have a think about it, but don't do your head in with it, go see the CAB and see what they have to say, actually you could even call Payplan and ask to speak to a debt advisor there, thinking about it that's what the CAB will put you on to anyways, so look up their number on here and call them, they deal with bankruptcy and Debt Management Plans so they can professionally advise you better than me.  I do feel so sorry for you though and I wish you all the very best and hope it all works out just fine for you - so go on Lam get and make that call, no matter either way you'll feel like you've had a huge weight lifted from you.xx

LAM83

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Re: Dont know what to do?
« Reply #6 on: Jan 29, 2011, 09:17:54 AM »
I've just been looking at debt mangement plans, i think this may be an option for us, i'll give payplan a call and see what they think.  Even to have 1 payment instead of loads would be such a weight of my mind.   It's coming to the point where i cant really afford to leave the house, and the thought of buying something nice is so far away, it's all just very depressing and really stressful.   Although we did spend the money so i suppose we do have to take responsibility for it, alhtough a large proportion of what we have and do spend on Credit cards is just trying to get by. It's a never ending cycle.
 
Thanks for replying x
 

AshleyPark

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Re: Dont know what to do?
« Reply #7 on: Jan 31, 2011, 09:34:42 AM »
Payplan and CCCS are a good place to start.  I would always say speak to at least two providers of Debt Help as they should always offer you the same product and then you just have to decide who you would like to work with until your debts are paid back.
Ashley Park Debt Solutions Ltd
 http://www.ashleypa

James Falla

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Re: Dont know what to do?
« Reply #8 on: Jan 31, 2011, 07:14:52 PM »
Hi there Lam83
 
How did you get on speaking to Payplan about a DMP? In reference to the car you have on HP, if you no longer want/need this vehicle, you can simply stop making the HP payments. The car will then be repossessed which would leave you with a shortfall on the HP finance. However, this would simply then be an unsecured debt which would be treated in the same way as any others.
 
Given you are renting, bankruptcy or a debt relief order may well get you out of debt faster than a debt management plan. Hopefully payplan will have helped you to understand your disposable income. If you feel you can repay your debt in a sensible time using a DMP then that may be a good option for you, If not, then it will not hurt to consider bankruptcy.
 
Rosie is correct that in bankruptcy you can keep all of your reasonable household items. You can also keep a vehicle worth less than £1500 as long as you ave a reasonable need for it.
 
Let us know how you got on with Payplan.
Debt Expert & Author
beatmydebt.com

JohnSmith2011

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Re: Dont know what to do?
« Reply #9 on: Feb 05, 2011, 04:55:44 PM »
first thing, take a deep breath, you sound like you have rerached your limit.

AshleyPark

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Re: Dont know what to do?
« Reply #10 on: Feb 07, 2011, 10:15:59 AM »
Hope all went well with Payplan?
Ashley Park Debt Solutions Ltd
 http://www.ashleypa