First Step

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Well i have finally realised that i am upto my eyes in debt. I have contacted the Debt helpline and they will be sending me all the info packs out and should be with me by thursday, have also just opened up a new account with the halifax.

What i would like to know is i took out a joint secured loan with my wife (we have now seperated) and i dont wish to have any of this fallback on her, would i be able to transfer the loan soley into my name as i now live in the property and not her.

I have heard MBNA and Lloyds/TSB credit cards can be a pain when it comes to setting up a debt management plan, does anyone else have any experience with these companies.

All in i owe about £21000 to Lloyds for a loan and CC & £7500 to MBNA, my disposable income is approx £100 a month. Do you think they would be willing to accept my DMA. There is no equity in the property due to the secured loan.

I cant bear the thought of going BR as it could affect my job as i work for LGVT.

Thanks to everyone that helps me and for letting me join such a helpful friendly forum.

Your BudgetYour Income Amount
Your take home pay £1,350
Your partner's take home pay
Rent/board received
Pension received
Any other income received
Income Support
Jobseekers Allowance
Your Income Amount
Incapacity Benefit
Disability Living Allowance
Working Tax Credit
Child Benefit
Child Tax Credit
Child Support
Total income £1,350

Housing Amount Comment
Rent
Mortgage £400
Secured loans/2nd mortgage £300
Mortgage endowment premium
Service charge/ground rent
Water £28
Council tax £101
Gas £50
Electricity £50
Other household fuel
Household services
Building and contents insurance £26
Telephone, mobile & internet £55
TV licence £12
Satellite £21
Repairs and maintenance £25
Household appliance rental
Child maintenance
Childcare
Fines, CCJs, Decrees
Life insurance/pensions £110
Medical/accident insurance
Hire purchase
Transport
Vehicle spares and servicing £15
Road tax £15
Motor insurance £28
Vehicle breakdown cover
Fuel & parking £120
Public Transport
Food & housekeeping
Food, toiletries, cleaning £151
School meals/meals at work £35
Pets, pet food/insurance £20
Tobacco £90 Reduced from £150
Misc. goods & services
School trips/activities £3
Medicines/prescriptions £5
Dentist/opticians £13
Hairdressing £7
Union/professional fees
Laundry/dry cleaning
Education fees
Personal & leisure
Clothing & footwear £21
Newspapers/magazines
Sports, hobbies, entertainment £10
Children's pocket money £5
Church/charity donations
Sundries/emergencies/other costs
Sundries/emergencies £10
Loan from family/friend
Other
Total expenses £1,726

Additional information Comment
No of adults 2
Dependants 1
Totals Amount
Total income £1,350
Total expenses £1,726
Surplus (Deficit) (£376)



The figures in this budget are based on those supplied by you during the preparation of your Debt Remedy.
Your Creditor ListCreditor name Debt type Outstanding balance Contractual payment Ownership of debt
1 lloyds/tsb Credit Card £6,600 £133 Me
2 lloyds/tsb Personal Loan £14,000 £278 Me
3 lloyds/tsb Overdraft £550 £28 Me
4 MBNA Credit Card £8,000 £181 M

Comments

  • Deep_In_Debt
    Options
    Hi
    Welcome.
    Firstly, you say you contacted the Debt Helpline. If they are a fee charging company, please do not sign the paperwork when it arrives. Phone CCCS, National Debtline or CAB who provide the same, if not better, service than any fee charging company and ALL your money goes to the creditors rather than a percentage lining the pockets of the sharks.

    Sorry, rant over now!

    I have a dmp with CCCS and MBNA have been great with me. They are my largest creditor, I owe them approx 9k and had a bit of hassle from them in the beginning but they were the first to accept my dmp and freeze interest. I've not heard from them since March. There seem to be no reasons why some creditors treat people differently.

    Creditors do eventually accept the dmp. You just have to ride the storm for a couple of months. Best thing I did though!

    Good luck and keep posting.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • Deep_In_Debt
    Options
    Your life insurance/pensions seems high - can you reduce this or stop paying into your pension for a while?

    Meals at work - can you take sandwiches?

    I would slate you about the tobacco - but I smoke too, am trying to give up with the help of NHS and have cut my smoking drastically in the last couple of months.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • Samarkand
    Options
    Thanks Deep In Debt, it was the National Debtline that i contacted, my pension is taken direct from my wage and is a percentage, i suppose i could ask them to freeze payments for a while.
    Butty route is a good one and will start with that tonight.

    So glad that you have had success with MBNA, i will be writing all my letters once my info pack arrives this week.

    I did stop smoking last year but with my marriage breakup and all this debt i have started again, i must refer back to the doctors who prescribed me Champix, they worked a treat.

    Thanks again:beer:
  • Deep_In_Debt
    Options
    Hi
    Glad it was National Debtline you contacted. You maybe able to stop paying into your pension for a while, just until you get yourself sorted. Then when you have cleared your debts, you could always pay more later if you were in the position to do so.

    Yep, taking butties is not a bad thing. I have a subsidised restaurant where I work but it still costs about £3 per day for food so I take my own - it's cheaper and I can eat what I want.

    I hear what you are saying about smoking - I was similar - debts started me smoking me again! Yes, I know, a bit ironic! Anyway, NHS do free stop smoking sessions once a week, where you support each other - it might be worth a try? I also use nicotine gum, I know it's expensive to initally buy but if you work out how much you spend on ciggies and work it out, it may work out cheaper for the initial cost.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • RAS
    RAS Posts: 32,829 Forumite
    Name Dropper First Anniversary First Post
    Options
    Samarkand wrote: »
    All in i owe about £21000 to Lloyds for a loan and CC & £7500 to MBNA, my disposable income is approx £100 a month.

    Your BudgetYour Income Amount
    Your take home pay £1,350
    Total income £1,350 - is this before or after the pension is deducted?

    Housing Amount Comment

    Mortgage £400
    Secured loans/2nd mortgage £300
    Water £28
    Council tax £101 - is this after the single person's allowance?
    Gas £50
    Electricity £50
    Building and contents insurance £26
    Telephone, mobile & internet £55 - this is high look for a lower package and reduce your useage.
    TV licence £12
    Satellite £21 - this has to go - use freeview instead.
    Repairs and maintenance £25
    Life insurance/pensions £110
    Vehicle spares and servicing £15
    Road tax £15
    Motor insurance £28
    Fuel & parking £120
    Food, toiletries, cleaning £151 for one this is high - you can cut £50 off this
    School meals/meals at work £35 - start taking pack-ups
    Pets, pet food/insurance £20
    Tobacco £90 Reduced from £150 - go to roll-ups immeditaly and then stop - the choice is stark - you cannot afford this.
    School trips/activities £3
    Medicines/prescriptions £5
    Dentist/opticians £13
    Hairdressing £7
    Clothing & footwear £21 - cut this - you need new shoes when essential and undewear. Otherwise wear what you have.
    Newspapers/magazines
    Sports, hobbies, entertainment £10 - you cannot afford this
    Children's pocket money £5 ???????????
    Church/charity donations
    Sundries/emergencies/other costs
    Sundries/emergencies £10 - you cannot afford this
    Total expenses £1,726

    Additional information Comment
    No of adults 2
    Dependants 1
    Totals Amount
    Total income £1,350
    Total expenses £1,726
    Surplus (Deficit) (£376)
    my disposable income is approx £100 a month.

    You do not have any disposable income at all at the moment - just a huge deficit.

    The figures in this budget are based on those supplied by you during the preparation of your Debt Remedy.
    Your Creditor ListCreditor name Debt type Outstanding balance Contractual payment Ownership of debt
    1 lloyds/tsb Credit Card £6,600 £133 Me
    2 lloyds/tsb Personal Loan £14,000 £278 Me
    3 lloyds/tsb Overdraft £550 £28 Me
    4 MBNA Credit Card £8,000 £181 M

    is this in addtion to the secured debt?


    Hi we need to know the APRS on those debts before we can advise you, but you simply are not earning enough to cover your committment and the situation will get worse if you do not take urgent action

    have you spoken to any of the debt charities?

    What do you have to sell that would help cut your most expensive debt?

    Can you take a lodger - tax free income?

    Can you get a part-time job?

    Do you really, really have to have car - as that could save you £100 permonth or more .

    Or could you car share?

    And become smoke free.
    The person who has not made a mistake, has made nothing
  • Deep_In_Debt
    Options
    I know a lot of people recommend taking in a lodger but being a single person myself and having taken in lodgers myself...yes, it's tax free income, but your bills increase and you don't get the single person's council tax allowance. Taking in lodgers worked out more expensive for me in the end as the rent didn't cover the extra.

    Don't want to put you off but just something to think about.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • Samarkand
    Options
    Ras, i have to have a car as i live in a semi-rural area with no chance of getting public transport to work, i also work shifts so second job isnt that easy although i am looking for extra work.
    Lodger is out of the window, i have my stepson living with me who i have told to get a job and start paying, also have my little girl everytime i am off.

    Dont really have any expensive items i could sell although a clear out to ebay could be worth while..

    Will speak to the Boss when on days next week and blag all the overtime, will also have a word with the pensions people.

    Thanks everyone
  • RAS
    RAS Posts: 32,829 Forumite
    Name Dropper First Anniversary First Post
    Options
    Thanks for the explanations
    Samarkand wrote: »
    Lodger is out of the window, i have my stepson living with me who i have told to get a job and start paying, also have my little girl everytime i am off..

    I assume this is your ex wife's son? If he is on benefits then just about all his income needs to come to you. Plainly you will not be able to get single person's CT allowance if you have him in the house.

    If he does not start earning, then really he needs to go and live with mum, as you will go under if you have to keep him and get no income to support him. Harsh but we see a lot of parents of young adults who are in dire straits because they do not require them to help support the household.
    Samarkand wrote: »
    Dont really have any expensive items i could sell although a clear out to ebay could be worth while.

    E-bay changes soon and a lot of people are going to stop trading. Also think of amazon and car boot sales.
    Samarkand wrote: »
    Will speak to the Boss when on days next week and blag all the overtime, will also have a word with the pensions people.

    Good idea.
    The person who has not made a mistake, has made nothing
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