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I just don't know what to do anymore

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Hi moneysavers,
Im not new ive been a member for years but im so ashamed and embarrased at our financial situation (and also family members come on here) I have registered under a different name. So deep breath here go's.......
My husband and me are in serious financial debt currently £22K. I'll put my SOA on in a min. Ive read through the posts and have contacted CCCS who have advised us to have a DMP. Im just so confused by it all and to be honest the live help lady wasn't too crash hot! We have opened a bank account with the coop and I sort of felt like something might be getting sorted then today we've been served a notice seeking possesion for our house. Just when I thought it couldn't get much worse it does! We have sold everything of value on ebay and carboots but still got nothing. It keeps me awake at night and we struggle to buy food to feed the kids some days. I know its all our fault and take full responsibility. The debts have been caused by one consollidation loan after another. So hopefully someone can give advise. Heres a few questions i have regarding being on a DMP.
1) Do they check all your bank statements? Do we need to account for everything we buy. For example they reccomended we have £350 per month for food. Do we have to account for every penny? Will we get in "trouble" if we can't?
2) I dont understand how to record my husbands wages. He gets a basic amount, shift allowance and they operate a bonus scheme. Some months its more than others and we never know what it is until he gets his wage slip. I don't want to give CCCS a figure thats too high incase we have a crappy wage month but I also don't want to give them a lower figure then have problems because our repayment figure could have been higher.
3) Not that i have much left but if family/friends gave us stuff to sell on ebay do i have to tell them of the income or can the money be left in a paypal account?
4) when do i need to send my letters to the debtors? Im so scared to post them as I keep thinking that im gonna have the bailiffs at the door.

Im sorry for posting as there are so many people who are much worse off than me but I have noone to speak to. I can't tell my friends as im ashamed, i can't tell the family and although my husband is on board with getting things sorted hes so laidback hes horizontal! His attitude is 'if we aint got it they can't have it'
Well if you've managed to get to this point thanks so much for reading xx
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Comments

  • indebtanddesperate
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    My SOA
    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details
    Monthly income after tax................ 1050
    Partners monthly income after tax....... 0
    Benefits................................ 444
    Other income............................ 0
    Total monthly income.................... 1494


    Monthly Expense Details
    Mortgage................................ 0
    Secured loan repayments................. 0
    Rent.................................... 300
    Management charge (leasehold property).. 0
    Council tax............................. 135
    Electricity............................. 50
    Gas..................................... 42
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 10
    Mobile phone............................ 0
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 12
    Groceries etc. ......................... 150
    Clothing................................ 0
    Petrol/diesel........................... 60
    Road tax................................ 15
    Car Insurance........................... 20
    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................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 10
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 821


    Assets
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 200
    Other assets............................ 0
    Total Assets............................ 200


    No Secured Debt

    Unsecured Debts
    Description....................Debt......Monthly...APR
    halifax overdraft..............100.......5.........0
    halifax credit card............1800......35........15
    natwest overdraft..............1200......50........0
    natwest loan...................9800......241.......11
    nationwide loan................4250......138.......8
    littlewoods....................400.......10........0
    dorothy perkins ...............500.......20........29.9
    hfc credit card................4500......120.......29.9
    Total unsecured debts..........22550.....619.......-


    Monthly Budget Summary
    Total monthly income.................... 1,494
    Expenses (including secured debts)....... 821
    Available for debt repayments........... 673
    Monthly UNsecured debt repayments....... 619
    Surplus(deficit if negative)............ 54


    Personal Balance Sheet Summary
    Total assets (things you own)........... 200
    Total Secured debt...................... -0
    Total Unsecured debt.................... -22,550
    Net Assets.............................. -22,350


    Created using the SOA calculator at https://www.makesenseofcards.com.
  • RAS
    RAS Posts: 32,856 Forumite
    Name Dropper First Anniversary First Post
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    Hi and welcome.

    Sorry to hear about your situation. As yu know you are no worse or better than the rest of us, so take heart.

    If you stopped paying the unsecured debt, could you sort out the mortgage long enough to sell the house yourselves? Are you on an interest only mortgage?
    The person who has not made a mistake, has made nothing
  • Bargainfinder_3
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    Hiya,
    I know that it's frustrating to have a 'horizontal' husband - I know the feeling sometimes! But in a way, he's right here - don't let anyone hassle you. If you're dealing with an organisation then deal only with them.

    If you post your SAO, I'm sure there will be more knowledageble people along to help.

    Meanwhile, maybe this would help for some reading?
    http://www.payplan.com/frequently-asked-questions/debt-management-plans.php

    I hope that you get things sorted, you're in the right place ((hugs))
    Personal challenge: Do without as much as possible to pay off £12k by 07/2009!!!:T
    Bluejeans Challenge: Spend less - Eat less! Need to lose [STRIKE]4 [/STRIKE] 2.5 stone (:eek:) then maintain until my concert in Dec!!
    Cady's jam jar challenge.. how much will be in the pot?!

    Budget: a mathematical confirmation of your suspicions.
  • indebtanddesperate
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    Ahhh thanks guys for your kind words, it means a lot
    We dont have a mortgage, we rent from the council and im so scared of loosing the house. If we do they wont rehouse us and we can't afford to private rent
  • strumpet
    strumpet Posts: 652 Forumite
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    I may be wrong, but if you rent from the council and you have kids, I didn't think they were allowed to turf you out. I thought they had an obligation to house you albeit not necessarily where you are now.

    Big super-duper cyber Strumpet hugs!

    Strumpet
    xxx
    NIL ILLEGITIMUS CARBORUNDUM!
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  • shadowdragon
    shadowdragon Posts: 1,686 Forumite
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    Ahhh thanks guys for your kind words, it means a lot
    We dont have a mortgage, we rent from the council and im so scared of loosing the house. If we do they wont rehouse us and we can't afford to private rent

    Why would you loose the house, do you have rent arrears? If you do ring them up and see if you could make a more managable payment of the arrears, councils are social housing and eviction is a last resort for them (based on what I have read on the forums). Its been said on the Bankruptcy board that council rent arrears were included in a BC order, the council just wiped the arrears and the tenant just carried on (i think this is what happened anyway was a few weeks ago, because I commented on how silly it would be for them to evict someone because of arrears, only to have to rehome them due to them being homeless with a young family!!)
    "Well, that sounds like a pretty good deal. But I think I got a better one. How about I give you the finger, and you give me my phone call"
    "There is no spoon
    "

    ~~MSE BSC member #172~~
  • Leaf
    Leaf Posts: 86 Forumite
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    Hi there, indebtanddespesperate.
    You most definitely are not alone, particularly of late!
    I am a council employee in housing. As social landlords, eviction is the very last option! You have been served with a notice of intent to seek possession, I assume. This is the very first legal step a RSL (registered social landlord - the council being one) takes. It is taken to 'protect (their) interest in the debt.' Firstly, and most importantly, talk to a member of the debt recovery team and advise them of your situation. Ask for an appointment with a Housing Benefit Advisor and ensure you are claiming any benefits you may be entitled to. Make a reasonable agreement with the Debt recovery officer. This may start as "current rent (rebated or not dependant on circumstance) plus and additional £3.00 per week off the arrears. Once an agreed repayment plan is in place and you adhere to it, the chances of eviction are very very very very slim!
    I am not an expert in Debt Management Plans and it would be foolish of me to offer advice. CCCS are extremely good (I am on a DMP with them) and are very non-judgemental, which I understand you would appreciate considering your comments about being embarassed. I was too, at first ;-)
    From what I understand as I was setting up the plan, you should declare the income your husband earns as the basic. Bonuses are variable and cannot be built in as it is not a constant. Unless he suddenly and regularly earns a significant amount greater, this would then be something you would need to review with them.
    Monies earned from ebay sales and car boot sales, unless done at a business level (hahaha.. unlikely) are not classed as regular income (this is stuff you have already bought and are now 'sacrificing', so not really anything to do debt, as such. If, however, the proceeds are placed in a bank account, it may complicate things if you need to review your income and expenditure I&E) at a later date.
    When you submit your I&E in preparation for the plan, the advice you will be given in terms of day to day expenses, like groceries, is based on a matrix... a calculation devised for this sort of purpose. It is pretty standard and unless you contest wildly on any given outgoing, no proof as to your expenses is questioned.
    If you decide to go with the DMP (and yours seems a perfect case for doing so, IMHO) you will be sent a registration pack. This will give you all the information you need to inform your creditors. If you decide to go this route, you will be given a CCCS ref number. AS SOON AS YOU GET THIS RING ALL YOUR CREDITORS!!!
    :j Proud to be dealing with my debts:j
  • Leaf
    Leaf Posts: 86 Forumite
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    Oops...
    (cont'd)
    Let them know you are setting up a DMP and give them the ref. Then sigh relief as their attitude (in general) takes on a differnet and more co-operative stance.
    I wish you all the very best for the future.
    Leaf
    :j Proud to be dealing with my debts:j
  • indebtanddesperate
    Options
    Hi Leaf
    Thanks so much for your advise. Its good to know that there is a way to sort this out. I guess for so long i havn't been able to see the wood for the trees!
    Regards the rent. Its £75 per week but due to the rest of the debts being on direct debit before we have had chance to pay the rent the moneys been swallowed up! Anyway the notice seeking possesion is for £446.14 (up to the end of this week) then £75 will be added on each week for the rent.

    Finally got my OH to ring them (im a wimp!) and they have said it will be ok as long as its paid by 23/8 (pay day) It just will mean that our first month on the DMP will be really tight. It might sound daft but I was really looking forward to buy some food shopping. Currently we are living on about £20 per week if we're lucky and although we havn't told our family, just to feed our kids we always manage to 'pop round' just when its teatime/lunchtime.
  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
    Options
    Cancel the debts direct debits and start paying token payments of £1 with a letter explaining that you are going onto a DMP (National Debtline have a template), that'll give you some breathing room to attack your rent arrears.
    No longer using this account for new posts from 2013
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