Serious debt problems - please help me!

dack_2

Could someone please respond to the above.

Thanks

chilli_dog

Dont worry Dack, the people with the info will be on soon, it can get a bit quiet on here in the day with people working etc.

I cant really comment on your SOA, as im not that clued up on what's best.

This is my last day off today, back at work on monday, boo hoo!!!!

Merlot

dack wrote: »

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 - Can you go on interest only for a while
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 35
Gas..................................... 43
Oil..................................... 0
Water rates............................. 42 - this is too high, do you have a meter?
Telephone (land line)................... 31.5
Mobile phone............................ 50 - Got to go
TV Licence.............................. 12
Satellite/Cable TV...................... 21 - got to go
Internet Services....................... 20 - you need to reduce this
Groceries etc. ......................... 300 - knock this down by £100, and stop the smoking, you can't afford it
Clothing................................ 30 - surely not every month, its too much
Petrol/diesel........................... 30 - car has to go
Road tax................................ 13.5 - car has to go
Car Insurance........................... 50 - car has to go
Car maintenance (including MOT)......... 12 - car has to go
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 - This is too much
Contents insurance...................... 15 - this is too much
Life assurance ......................... 0 - you need this, very very important
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 2
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 15 - can't afford this
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?

I have added some comments in above, you are not going to like them. You are spending over £700 too much per month, does your OH work? You need to increase your income, and do you receive child benefit and tax credits, you don't seem to be getting enough benefits, and although its great earning a wee bit from the internet, it isn't a job and shouldn't be seen as such.

Your top priority is increasing your income, and getting rid of all non essentials, car, sky, mobile phone. If you take away everything I suggested, its only a saving of approx £200 per month, you are still £500 short per month.

I do not wish to be harsh, you are going to up end up in further debt if you do not start to tackle this today.

You need advice from CCCS, National debtline or Payplan, google them.

Merlot.x.

RAS

dack wrote: »

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 - you need to cut back on calls. Have a read of the telephone section on here and use the codes to get free/reduced cost calls
Mobile phone............................ 50 - sorry but you need to go for the lowest tariff and then reduce to PAYG on these.
TV Licence.............................. 12
Satellite/Cable TV...................... 21 - you cannot afford this. Use freeview
Internet Services....................... 20
Groceries etc. ......................... 300 - for three of you this is high. You could cut £100 of this
Clothing................................ 30 - at the mo, you need to use what you have other than shoes and underwear. Sign up for www,freecycle.org
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 -see if you can get these cheaper and switch via www.quidco.com
Contents insurance...................... 15 - ditto
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 - at the mo you cannot afford this - use freecycle and look at all the ideas for cheap/fre pressies on here
Haircuts................................ 2
Entertainment........................... 20 - ditto
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?

You need to talk to one of the debt charities ASAP see here http://www.moneysavingexpert.com/loans/debt-help-plan#help - you can get your living expenses in budget but you need a low cost DMP or similiar to sort out the borrowings.

ajaney

dack wrote: »

Statement of Affairs and Personal Balance Sheet
I'm fairly new but will have a go!
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 should there not be an entry here?
Electricity............................. 35 Have you ever switched? Have you checked the meter readings yourself? Seems ok tho
Gas..................................... 43 as above
oil..................................... 0
Water rates............................. 42 on meter or is this monthly rates? water meter may save
Telephone (land line)................... 31.5
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 20
Groceries etc. ......................... 300 try the old style boards, meal plans, aldi/lidl
Clothing................................ 30
Petrol/diesel........................... 30
Road tax................................ 13.5
Car Insurance........................... 50 seems high if for 1 car. have you tried comparison sites? use cashback site to buy
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?

hope this helps a little

forgot to say can you get a cheaper mobile deal - its really high.

Ames

I'm pretty sure that you can both claim JSA at the same time. I know appeals are daunting but sometimes they're a necessary evil. I think there's a minimum period before you can reapply for IB, if I were you I'd check it out and do that. If possible you need to reapply this month, because ESA starts next month and it's going to be a lot tougher to claim. If you feel well enough to work, there should be a disability advisor at the JC+, they can help you find work that's suitable, and put conditions on the work you're told to apply for. You can claim JSA and turn down jobs that aren't suitable because of your condition without it affecting your claim.

Hope that helps!

trancebabe

Dack - You do sound like you've had a rough ride and the things I would have said about your SOA have already been covered but just wanted to say that, if you're serious about sorting out our debt you need to recognise the what's nice to have from the essentials and work from there.

It's nice to have SKy TV for example - but you'll still be breathing after you've cancelled it and installed a freeview box.

Ever thought about jointly giving up smoking ?? I know it's hard but there's some great support threads here for people wanting to give up...

Best of luck with it anyway - I hope you can get on track and feel better about everything soon
x

dack_2

Merlot; RAS; ajaney; Ames; trancebabe;

Thankyou all for your responses.

Mortgage - The 'other income' in the SOA is £300 from HSBC Life from my Mortgage Income Protection plan. My mortgage is also with HSBC. As they are currently paying out on the policy I think I would not be able to move to interest only. Is this correct?

Water - Would a meter likely reduce the cost for just three of us (we don't use a lot of water either)

Mobile - calling them later to cancel or at very least reduce plan to minimum until end of contract (I'm sure its not far away) then switch to PAYG only if needed

Sattellite - Understood, I'm getting rid :eek: . Is freeview only available with digital terrestrial? In South Wales we don't get it for some time yet I believe

Internet - No contract on this so can cancel at any time though I will need to find a reliable alternative first

Groceries - This was kind of a guess but I tried to include a few things we have tended to buy in excess lately so it was realistic as things stand now. Excesses include tobacco and alcohol I will look at the MSE boards and articles over the weekend and see how we can reduce it substantially

Clothing - This figure (£30) was a guess and thinking carefully about it I imagine it averages (£10) and that is mostly for my son. I don't remember the last time I purchased an article of clothing or footwear.

Car - Am ok with selling the car but have two hangups:
1. Wife may find it easier to find work if we have transport.
2. My parents paid for a weekend away for the two of us whilst they take my son away with them for a week. Its all paid for but is about 100 miles away so I need a car. They don't know about my debt problems and I'm not ready to tell them. I also think the weekend would do us some good.
I may try and hang on to the car for another month.

Buildings & Contents Ins - Will check Quidco for these

Any suggestions on Life Assurance - Quidco also?

Emergency Fund - lol, felt like I should put something in here We don't have anything remotely like an emergency fund!!! Sorry.

Landline (BT) - Calls are excessive. I need internet so can't ask BT for incoming calls only. Is there such a thing as a phone that can receive calls but not make them? (I don't want to remove the phone altogether as I receive most of my calls on my landline). Will also check the phone section of MSE.

Council Tax - We receive full council tax benefit. I forgot to add this to the benefits in the SOA. For this reason I also left it out of the outgoings, will include it on my revised SOA.

ELEC & GAS - Recently a couple of young lads knocked my door told a few porkies and convinced me to sign over to npower for both gas and elec. A few days later swalec knocked my door wanting me back. I agreed because I felt manipulated by npower. Swalec only moved back the elec, so now I have Gas with npower and elec with Swalec. Do the recent switches mean I cannot switch again now or that I will lose out in any way?
Will check out Quidco for these also.

Car Ins is high because of previous claims and me accepting last renewal instead of shopping around . Getting rid soon anyway so I guess it doesn't matter.

Other travel - This is 60p per day for my son's bus to school (he walks home)

@Ames: You mentioned re-applying for IB, I will look into this. Could you please explain what the ESA is that you refer to? Thanks.


Thank you all, I will look further into your suggestions, do what I can now and plan anything I can't do now. Will also try and come up with a revised SOA.

Just a couple of questions:

1. Should I call cccs now or wait until I have trimmed my outgoings as much as possible?
2. If I were successful in re-applying for IB would my wife's JSA be affected?

Cheers, :beer:

Dack

chilli_dog

Call the CCCS asap, they can get busy and it still gives you time to do a budget

chilli_dog

Dack, the CCCS will help you to sort out your budget. They wont make you live like a pauper.

A creditor would prefer the same amount each month without fail rather than slightly more one month, then miss a month etc etc.