Serious debt problems - please help me!

dack_2

Hi,
Following three years of illness (stress/depression) and losing my job I find myself in an impossible debt situation. I am already overdrawn by nearly £3000 (£4000 limit) and therefore will be unable to pay next months bills (most due around beginning of next month).

I had previously applied for a secured loan to cover my debts with the hope of returning to work soon but think my head was in the clouds (borrowing more to pay back what I can't afford). One of the companies I contacted got back to me, discussed my finances and suggested a DMP (Brytannic Financials). They said they could freeze interest and reduce payments to £150/month for all loans, CC's and overdraft (£35K total!). For this they would take 15% of each monthly payment.
Should I avoid this company? I agreed to this verbally on the phone but have not yet returned the authorisation for them to proceed.

Also, what calculator would you all prefer me to use when I post my SOA on here? The makesenseofcards one?

I will supply all required details and have many more questions later but for now I am off to open a new bank account

Thanks for your help.

Dack

Merlot

welcome to the board, if you post your SOA using makesense templete, it would enable us to advise you.

Under no circumstances, use any fee paying company for a DMP, please contact the CCCS (a debt charity) today and see what they can do for you.

http://www.cccs.co.uk/

Link above. I should note there is of course National Debtline or Payplan you could also contact, both free of charge too.


I will look in once you have posted your SOA. But please do not sign any agreement with the DMP company you have spoken to today.

Merlot.x.

dack_2

Many thanks Merlot, I suspected that would be the response. Will be working on my SOA this evening, will post ASAP.

Regards,
Dack

kazkaz

I started on a DMP in January this year. It was the best thing I'd done in a long time. I don't dread the phone ringing anymore or the postman arriving.

After looking at a few companies which charged a fee I found, with the help of this website, Payplan. They have been great from the first phone call to eight months in. I pay £150 a month which hopefully I can increase abit each year. At the moment it will take until 2020 :shocked: to pay be debt off but hopefully that will change if I can increase the payments each year

Kaz

chilli_dog

Hey Dack,

Your not alone, nearly everyone hits a financial brick wall every now and again. Your in the right place for good advice.

dack_2

@Kazkaz & chilli_dog: Thank you both so much for your replies, amazing how just a few words can be so encouraging.

Thank you

RAS

Hi

Please open another bank account and get your benefits paid into that ASAP. If you do not think you would pass muster on a normal bank account, get a basic account with a bank that has no ties with your current provider.

Although banks are not supposed to do this with benefits, there is nothing to stop them accepting the incoming money and preventing you from taking anyhting out.

have a look at www.entitledto.com to see if you can get more help and also read the up your income tab above. Other than mystery shopping which affect tax and benefits, many of these suggestions pay in vouchers which are OK.

dack_2

Thanks for the advice RAS. :beer:

I opened a new cash (basic type) account at Lloyds TSB today.

My debts are with Barclaycard, Morgan Stanley CC (now/soon to be Barclaycard), Natwest CC & Current Account O/D, HSBC CC, Tesco Personal Loan. My mortgage is also with HSBC.

Do you see any affiliation with Lloyds TSB here?

Thanks.

dack_2

Hello again all,

Just before I post my SOA I thought I should give you a little background on myself and my family (and anonymously
get it off my chest).
I am married with one teenage boy and, in case my nickname doesn't make it obvious, I'm a bloke.

After 10yrs in my previous job I spent the last 3+ yrs suffering from stress and depression, mostly caused by my employer (they
wouldn't admit it but that's another long story).
I felt forced to quit my job (health reasons) in the latter half of last year and have since been living almost entirely off
savings.

I did receive incapacity benefit for about 3 months and then was kicked off after seeing the DWP doctor (they don't listen
to a word you say ). I requested an appeal for the Incapacity Benefit. In the meantime I made a claim for income support and was
refused as I had some savings (I had some savings when I left work and used some to pay off credit cards reducing outgoings by
about £400/month, and used the rest to live on). Even though my savings were now below the threshold to get benefits they kept
delaying, I suspect due to the CC bills I paid off a few months earlier. I eventually got granted Income Support in June this year
after at least 4 seperate applications, having to send in full supporting documentation each time.

This whole process left me feeling awful. I had tried a number of different types of anti-depressants in the previous two years and
none seemed to work effectively. I returned to my doctor to try again and got a different type. Within a week of starting them I
felt the most suicidal I have ever felt! Not a nice thought I know, it scared the c**p out of me! I stopped taking them immediately
and over the next few weeks started to feel much better.

It was around this time that the Incapacity Benefit appeal papers came
through and I was actually scared of meeting with a panel of decision-makers and was feeling much better so didn't return the
papers. Looking back I think I was just feeling much better than the previous few weeks, when I was suicidal, but in reality no
better than I have been for the last few years.

As a result of not returning the papers the appeal was cancelled and my Income support stopped (BAH! - It was reduced rate anyway,
who cares!!!). Feeling I had no other option I signed-on for Jobseekers Allowance. Three weeks of dealing with that system and I
feel almost suicidal again!! (no offense intended to any JC+ workers).

I am almost ready to 'actively seek work' but I need a
little time with no pressures (benefits applying/re-applying, money worries), whereas my wife is willing and able to get a
full-time job, but lacks needed direction and help. After discussing with my wife, we have agreed for her to sign-on for JSA
instead of me, in the hope that, at least in the short term, I will get some 'peace' and she will get some help to find work. She
made her JSA application today.

So, as it stands, the only benefits we receive are JSA, childs tax credit and child benefit. I also, at the moment, receive a
monthly payment to cover the mortgage from the mortgage income protection plan I have. This may stop or be reduced soon as I told
them I felt forced to claim JSA and I now have to see their doctor. I was tempted to go on the sick again but what I really want is
a little time to get back into working and claiming sick and going through all the associated red tape and interviews seems really
daunting to me.

Finally, I have in the recent years found a way of making some money fairly consistently online but I must be in the right mood to
do it (not stressed and angry). This will likely provide me with some additional tax-free income but cannot be declared as income
because it is not guaranteed (and I am unemployed).

As for my debt situation, watch this space...

Sorry for such a long post, I realise it wasn't all necessary for you to comment on my SOA (coming soon!) but I think it was
necessary for me.

Thanks for listening!
Dack

dack_2

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 688.07
Other income............................ 300
Total monthly income.................... 988.07

Monthly Expense Details
Mortgage................................ 300
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 35
Gas..................................... 43
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 31.5
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 20
Groceries etc. ......................... 300
Clothing................................ 30
Petrol/diesel........................... 30
Road tax................................ 13.5
Car Insurance........................... 50
Car maintenance (including MOT)......... 12
Car parking............................. 0
Other travel............................ 12
Childcare/nursery....................... 0
Other child related expenses............ 25
Medical (prescriptions, dentist etc).... 3.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 2
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 15
Total monthly expenses.................. 1117.5

Assets
Cash.................................... 0
House value (Gross)..................... 50000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 51000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 8175.....(300)......6.25
Total secured debts........... 8175......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................4430......100.......0
Credit Card....................5338......140.......0
Credit Card....................600.......30........0
Personal Loan..................18406.....263.......0
Overdraft......................4000......0.........0
Credit Card....................3765......90........0
Total unsecured debts..........36539.....623.......-

Monthly Budget Summary
Total monthly income.................... 988.07
Expenses (including secured debts)....... 1,117.5
Available for debt repayments........... -129.43
Monthly UNsecured debt repayments....... 623
Surplus(deficit if negative)............ -752.43

Personal Balance Sheet Summary
Total assets (things you own)........... 51,000
Total Secured debt...................... -8,175
Total Unsecured debt.................... -36,539
Net Assets.............................. 6,286

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


I know there are many ways I can reduce my outgoings and lord knows I have to so please pummel me with advice/suggestions/ridicule and I will do my very best to comply.

Regards,

Dack

P.S. Also, can you please point me to a thread that details the process when using, for instance, cccs or Payplan and others' experiences with them?

dack_2

A few notes:

1. Been gettting free Sky Movies (only have basic subscription) for 7+ years so very reluctant to end it.
2. Internet is expensive because it is a quality company with reliable connection needed for my online money-making exploits.
3. Tobacco of £40/mth included with groceries (both smoke).
4. Not sure of APR's but can find out if needed (they are not all zero as the SOA implies).
5. Stuck in £50 month mobile contract for another 2 months I believe.
6. If no change in one month (job-wise) will sell car.

Dack