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geniegal
Starting Member
1 Posts |
 Posted - 14 February 2010 : 16:37:11
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Hello – this is my situation – can anyone offer any situations as to the best solution for me?
Me and hubby are both self employed (SE), with non regular income. I have only just been SE for under a year, earning nothing til now and suddenly it’s taking off with £800 worth of sales this week (£110 already in the bank and the rest spread out over the next 3 months). I really need to concentrate on my business now and not return to supply teaching. (I live in a rural area and supply work is v patchy at best.)
Hubby earns between £500 - £1000 a month
We get 535 child tax credit plus 135 child benefit per month
Debts: I owe
4260 – Lloyds credit card –payement approx £80 month
5209 – Barclaycard – pay approx £90 monthly
4197 – virgin card - £95 monthly
5952 – Lloyds loan #1 - £350 montly
5953- Lloyds loan #2 - £150 monthly
total debts = 25, 571
total monthly payments = 765
As well as this hubby owes 1500 on Lloyds credit card = 30 monthly payment
Plus owes roughly £8 – 10 k to creditors. He put it all in hands of churchwood financial who are appalling, they will not even tell steve how much he now owes. We did look at changing this using business debt line, but it would have meant us contacting the creditors to find out how much he owes each one and he will categorically not do that or let me do that. So it’s a catch 22.
Monthly payment for these debts = £257
We get 535 plus 132 benefits a month =667. At the moment hubby is making about 800 –1000 a month.
I have added up our monthly outgongs. Absolutely everything comes to 2265 incl all these debt repayments.
So over the next few months we will have a shortfall of about £600 monthly, that’s worse case scenario if I don’t make any more sales.
What I want to know is the best course of action for me? I am a homeowner with a good credit rating (I own our home on my own). My bank wont lend me any more money now I’m self employed. My mortgage co wont increase the mortagage.
I am going to try to get virgin credit card to accept a balance transfer fromone of the other cards, but what if they don’t? Is the only course of action open to me a secured loan?
Many, many thanks for your help
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Melanie Giles
Debt Diva Expert
554 Posts |
Posted - 15 February 2010 : 17:49:45
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Hi there geniegal and welcome to the forum
Glad to hear that your business is doing well, and I can understand why you don't want to rely on supply teaching. My daughter is a supply teacher, and she really struggles to get a full week of work most weeks.
It appears that you are struggling to meet your ongoing contractual repayments to creditors, and require some assistance or breathing space until you can see how the new business shapes up. In order that you can understand more about the solutions available to you to deal with your current situation, I would recommend a chat with an insolvency practitioner who can provide advice about the advantages, disadvantages and implications of each solution, so that you can decide which one best suits your circumstances and where you want to be in the future.
I does not sound as if your current repayment plan is working, so it might be time to take a fresh look at what is available and who can help you. Good luck and do let us know how you get on. |
Melanie Giles is a Licensed Insolvency Practitioner with over 23 years experience of helping people to budget more efficiently or resolving their financial difficulties. Melanie is a director of the IVA Advice Bureau, a leading provider of insolvency services with specific experience of voluntary arrangements, debt management and bankruptcy assistance.
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No idea what to do
