£18k in debt, DMP?

alona1

Hi,

So I've realised I'm in £18k unsecured debt and I've been looking into my options. An IVA isn't for me - my partner has just done this so I know how it works. He's also just lost his job.

So I spoke to Gregory Pennington, not realising at the time that they charge for their services which I understand can cause trouble with creditors as your paying GP but not them. So I have an interview with Payplan today. Is there anything I should know? I have never missed a payment or anything however I am worried that I will receive defaults from my creditors, does this happen?

Any advice, greatly appreciated.

Merlot

Firstly, welcome to the board. You mention your Partner has an IVA and has lost his job, he needs to seek advice immediately from the CAB or a Debt charity, his creditors could seek bankruptcy if he is unable to maintain his IVA - seek help today on that one.

Payplan are great as are CCCS, you will receive defaults and will receive phone calls etc from your creditors at first, but with our help, we can guide you though it.

£18K isn't a huge amount of debt, why are you opting for a DMP? Could you repay this yourself without the need for a DMP, post your SOA (incomings and outgoings) and we will advise you on reducing your outgoings in order to repay your debts.

Merlot.x.

GeorgeUK

If you haven't missed payments, a DMP may not be required.
Post up a SOA and we'll see if there are any savings to be made. Payplan will probably want to see a SOA too.
http://www.makesenseofcards.com/soacalc.html

alona1

Thanks for the reply, here is my SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1383
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1383

Monthly Expense Details
Mortgage................................ 735
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 35
Gas..................................... 40
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 15
Mobile phone............................ 27.5
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15
Buildings insurance..................... 14
Contents insurance...................... 14
Life assurance ......................... 18
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1190.5

Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 151500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 132000...(735)......0
Total secured debts........... 132000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................4641......140.......0
Credit Cards...................10976.....270.......0
Overdrafts.....................2194......50........0
Total unsecured debts..........17811.....460.......-

Monthly Budget Summary
Total monthly income.................... 1,383
Expenses (including secured debts)....... 1,190.5
Available for debt repayments........... 192.5
Monthly UNsecured debt repayments....... 460
Surplus(deficit if negative)............ -267.5

Personal Balance Sheet Summary
Total assets (things you own)........... 151,500
Total Secured debt...................... -132,000
Total Unsecured debt.................... -17,811
Net Assets.............................. 1,689

I also owe my parents £1000.

Merlot

alona1 wrote: »

Thanks for the reply, here is my SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1383
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1383

Monthly Expense Details
Mortgage................................ 735 - can you change to an interest only mortgage for the time being?
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122 - Do you live on your own?
Electricity............................. 35
Gas..................................... 40
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 15
Mobile phone............................ 27.5 - get rid off
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 5 - gosh this is cheap! Who is your provider?
Groceries etc. ......................... 0 - you obviously eat? We need a budget figure?
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 15
Buildings insurance..................... 14
Contents insurance...................... 14
Life assurance ......................... 18
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1190.5

Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 151500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 132000...(735)......0
Total secured debts........... 132000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................4641......140.......0
Credit Cards...................10976.....270.......0
Overdrafts.....................2194......50........0
Total unsecured debts..........17811.....460.......-

Monthly Budget Summary
Total monthly income.................... 1,383
Expenses (including secured debts)....... 1,190.5
Available for debt repayments........... 192.5
Monthly UNsecured debt repayments....... 460
Surplus(deficit if negative)............ -267.5

Personal Balance Sheet Summary
Total assets (things you own)........... 151,500
Total Secured debt...................... -132,000
Total Unsecured debt.................... -17,811
Net Assets.............................. 1,689

I also owe my parents £1000.

I have added a couple of comments in above, Your SOA isn't complete, no budget for food, entertainment etc. How on earth did you get a mortgage of £700 + a month on your income, does your BF live with you, if so, you need to speak to someone today if he can't pay the IVA it will fail, and it can lead to bankruptcy and they can force you to sell the house, how much is the house worth?

I am not trying to frighten you, but I am being honest in giving you the whole picture.

Before we can offer anymore advice we need answers to the above.

Merlot.x.

GeorgeUK

The mortgage is taking more than half your income. It's going to be a struggle with that.
You probably eat too so something for monthly grocery shop should be added.
Are the APR's unknown or 0%?

So far the only thing i can advise is:
Council tax - if paying over 10 months, ask to pay over 12
water rates - are you metered? do you use a hipo?
mobile - change to PAYG?

rubydoiwannabee

Hi there and welcome to the boards,
Well done on facing up to your debts that is the first hurdle jumped!!

A quick observation on your SOA, you need to factor in 'living' expenses because you do need to live, so include a small amount each month for presents, emergencies, haircuts etc. When you talk to Payplan they will ensure you do this.

You may not need to do a DMP you might just need to watch your spending and throw all the savings you will make from the tips on this board to your debts.

Very best of luck and keep posting.

alona1

Our living in expenses are just on what we get from my BF doing bits of work and from that he contributes to the bills too so it does vary. He started a new job last week so we'll hopefully be in a better situation.

Merlot, from the comments above (I think I've got them all):

- The mortgage is interest only, I reduced it as soon as he lost his job.
- The BF lives with me (joint mortgage).
- Mobile phone (I work for O2 so get it cheap, I use this for works use and use it from home instead of the landline).
- Broadband (I work for O2 so get it cheap).
- The APRs - I dont actually know.
- Water rates - I checked out what the cost would be with a meter and it worked out more expensive.

Hope I've answered everything.

Merlot

So to clairify, your BF has a new job, and is still paying his IVA?

alona1

Merlot wrote: »

So to clairify, your BF has a new job, and is still paying his IVA?

The IVA was put on hold for 4 months and he's just started a new job, yeah.

Also, I have looked at consolidation loans and transferring balances to 0% cards, etc but I cant seem to get anymore credit.

Merlot

You need to speak to the CCCS or Payplan, but I don't think from your figures on your SOA, you don't have enough left to repay your debts on a DMP, the CCCS will make you budget for everything, food, entertainment etc. Can you post a joint SOA, and include the IVA monthly figure, it will give us a better understanding of your situation.