SOA - Drowning in credit card debt but worried about DMP

ReformedSpender_2

Hello, apologies if I do this all wrong. I've been in touch with Payplan and filled in my details for them, waiting for them to contact me now. I'm really worried about how I'm going to cope being on a DMP, how long it's going to set up, whether all my creditors will go for it. I really really need my credit card providers to freeze the interest. Is this likely. I have a 101 questions, this site is amazing, and I really hope to find support on here whilst I tackle my debt. Feeling like I'm sinking at the moment...

So this is my SOA, any suggestions, do the amounts look feasible? I've always been terrible at budgeting hence my current problems.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1664
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1664

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 15
Gas..................................... 15
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 120
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 965

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 500
Total Assets............................ 500

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
egg loan.......................1461.51...151.......7.9
first direct loan..............7950.69...240.......9.9
virgin mastercard..............5194.33...100.......16
egg card.......................6186.01...125.......17.9
first direct overdraf..........500.......0.........0
first direct visa..............393.66....11........0
Halifax mastercard.............2097.15...46........16
Total unsecured debts..........23783.35..673.......-

Monthly Budget Summary
Total monthly income.................... 1,664
Expenses (including secured debts)....... 965
Available for debt repayments........... 699
Monthly UNsecured debt repayments....... 673
Surplus(deficit if negative)............ 26

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total Secured debt...................... -0
Total Unsecured debt.................... -23,783.35
Net Assets.............................. -23,283.35

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

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Horace

Hi and welcome. Two things on your SOA stick out for me - your entertainment and groceries.

Go to moneysaving oldstyle board for tips on meal planning and how to cut your shopping budget.

Go to freebies board to see if you can pick up some free cinema tickets or whatever (do surveys and change points you earn into vouchers for days out etc).

Keep a spending diary to see where you are frittering away money.

Having just had another look at your SOA you say that you are paying £25 for prescriptions - can you not switch to a pre-payment card as this works out a lot cheaper?

If you have stuff you no longer use or wear - sell them on ebay.

trancebabe

Welcome to the boards ReformedSpender - you're in the right place

I'm sure you're about to be hit with loads of great advice but taking a brief look at your SOA, I think you could maybe look at your entertainment spend and see what can be cut from that, lower your mobile contract and do you really need to spend on clothes every month ? Even if you spent every other month you could save £120 in the first year
What's the other travel?? Have a look at some of the challenges to reduce your grocery bill (not sure how many in your household but I feed 5 for less than that and one of those is in nappies)

anyway... Good luck with it - be proud to be dealing with your debt :0)

ReformedSpender_2

Thanks for your comments Horace, the £25 takes into account the fact that I am very shortsighted and my eyes are still changing, so I generally need to get new lenses in my glasses every 18 months or so, I also wear contacts as I cycle a lot, although I get them online from Tesco which works out fairly cheap. I'm also on anti-depressants, but after paying out £20 on prescriptions alone this month I have investigated the pre-pay option on the NHS website.

Entertainment and food. Foodwise, I tend to cook from scratch, and I don't buy ready meals, I was guestimating a bit, but as I only cook for one, and don't have a freezer (or room for one) I find it a bit tricky to eat as economically as I would like. I'm a big fan of casseroles, daals etc which can be eaten all week, and 4 days out of five have packed lunches.

Entertainment, I know it's highish, but I live in London and am single which is probably a factor. I am trying to stay in more, and got season one of the Wire out from the library (£1 a week) to keep me occupied in September!

The main problem for me is the interest rates, I spoke to my bank yesterday and they were really unsympathetic because I was 54p over my o/d limit (caused by them taking £1.66 interest) so that's another £25 charge to add to next months outgoing too. I feel sick.

ReformedSpender_2

Right, the £90 travel is £80 for a student rate zone 1-3 oyster card, and the extra £10 for bicycle related stuff - new tyres, service, etc, can go months without needing to spend on it, and then get 3 punctures in a row.

My mobile contract is £20 a month, which includes unlimited texts, also I'm tied in for the next 18months, or I'd switch to PAYG. I don't pay for a landline though, my landlord does.

The SOA thing on makingsenseofcards seemed to be making me put an amount in for clothes before it would calculate, I'd originally left it blank. I tend to only buy clothes on eBay now as it's cheaper and I don't really like high st stuff. (I've also sold practically all my saleable stuff on there recently), but I don't really go clothes shopping for the sake of it.

So entertainment and food seem to be the main ones I need to concentrate on.

pepe2008

Well, the plus points are that you are renting...so keep paying it and you'll still have a home...and the fact that, at the moment, you are earning enough to cover your current repayments.

First of all CUT UP THE CREDIT CARDS!! You can use a debit card.
Dont spend what you have not got...easy to say, harder to do...but not impossible to do.

Unless things have gone too far with your Credit Scoring, try to swap some debt into interest free accounts.....DONT USE A NEW CARD FOR SPENDING THOUGH!! or maybe to lower interest loans, but dont get screwed on early repayment charges etc.

You seem to have realised your situation in time, now you can manage it without doing any long term damage to your Cr Ref.

pepe2008

Well, the plus points are that you are renting...so keep paying it and you'll still have a home...and the fact that, at the moment, you are earning enough to cover your current repayments.

First of all CUT UP THE CREDIT CARDS!! You can use a debit card.
Dont spend what you have not got...easy to say, harder to do...but not impossible.

Unless things have gone too far with your Credit Scoring, try to swap some debt into interest free accounts.....DONT USE A NEW CARD FOR SPENDING THOUGH!! or maybe to lower interest loans, but dont get screwed on early repayment charges etc.

You seem to have realised your situation in time, now you can manage it without doing any long term damage to your Cr Ref.

Yes, a debt management plan could be an option, but these have an adverse effect on your Credit History and could affect your rating ( what happens when you need to change rented accom? ) so try to avoid if poss.

Take control yourself at this stage, but get serious about it! Itcan be a narrow path.