What's The Damage?

Before I list exactly what my debts are, I would like to make the point that I am not proud of being in this position, nor am I ashamed. In the 48 years I have been on this planet I have never had unmanageable debt, so it has all come as a bit of a shock. I will even admit in the past to being somewhat dismissive of people who found themselves with unmanageable debt, believing that they had in some way been irresponsible and should suffer the consequences. I only mention this so that others may choose to get off their high horse and have some understanding of how some people get to this position.Over the past twelve months I managed to convince myself that sinking deeper into the mire was the right thing to do, call me naive, call me foolish but at least acknowledge that what I was doing was in my mind for the best.

So what do I owe and who do I owe it too:

Barclays Bank Business Overdraft £10,000
Halifax Personal Overdraft £1,500
Halifax Personal Loan £4,500
Virgin Credit Card £6,000
Companies House Penalty £700

Last but not least a theoretical debt on my business premises. I presently have 11 years left on my lease at an annual rent of £8,400. Whilst I'm not in arrears with my rent, the day I close my business, the landlord does in theory have a right to the remaining 11 years rent. I haven't got a clue how this one will play out, but of course I will keep you all updated.

In respect of any assets, I do own my own home (well Northern Rock actually own it of course until the mortgage is paid) and I do have a motorbike along with the normal household stuff like a couple of TV's, computer etc.

Should I be posting my assets on an open forum? Sure, why not? To hide the information suggests I may intend to be deceitful and economical with the truth when it comes to dealing with my creditors. This will not be the case. I plan to work on a principle of absolute honesty, if for no other reason than it will help me sleep better at night.

I presently owe £118,000 on my mortgage and based on recent sales of similar houses on the same street, I'm guesstimating a value of around £130,000.

So there you have it.... Not a pretty picture, but an honest one.

My next post will outline what action I've taken so far. Thanks for reading!