Looking for Advice Please

TotallyBrassic

Please find below my SOA, I am unsure what else to do in terms of trimming things. We have no mobiles, no sky, don't really go out, and basically still find ourselves in a position...like many others I know.. of constantly robbing Peter to pay Paul. Somehow we are paying these minimums, usually by cutting back on essentials.

I know the electricity looks high, we have a prepayment meter, (through choice..not in debt with them and never have been,) but the price of putting electricity in has doubled in my opinion. The gas is still low because no heating on that will also double in winter.

Without telling too much of our business, we have a disabled child so therefore a DLA car, so apart from petrol no expense is incurred through this, but it is not an asset either.

My question is without going bankrupt, can we arrange a dmp ourselves?
Does it badly effect your Credit Rating?
How long for?
If things turn around can you still pay these debts off more quickly?

I have been lurking for ages in here, and have taken lots of advice from other peoples stories, but never had the courage to post my own!

I would like to add that I want to pay my debts back, I am not trying to get out of paying them at all, just wondered if there was a way of doing it which would allow the re-growth of our credit rating in case we ever need to sell this house and buy another.
We are a family of 6 people, 2 Adults, 4x Teenagers, ( all with pt jobs/college or school) they do try hard to keep their own heads above water which is lovely.

Sorry to totally ramble I am feeling a little desperate.
Thanks in advance for any help.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 900
Partners monthly income after tax....... 705
Benefits................................ 520
Other income............................ 0
Total monthly income.................... 2125

Monthly Expense Details
Mortgage................................ 720
Secured loan repayments................. 204
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 96
Electricity............................. 100
Gas..................................... 40
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 20
Mobile phone............................ 0
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 10
Petrol/diesel........................... 60
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 6.2
Buildings insurance..................... 30
Contents insurance...................... 0
Life assurance ......................... 43
Other insurance......................... 17
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1692.2

Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 150000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94000....(720)......7
Secured Debt.................. 22000....(204)......11
Total secured debts........... 116000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Egg 1..........................3489......75........16.9
Egg 2..........................3408......89........21.9
Halifax 1......................1792......35.33.....0
Halifax P Loan.................8146......149.......0
Currys.........................460.......18........0
PC world.......................480.......16........0
Grattan........................613.93....34.9......0
Additions......................553.79....27........0
Next...........................563.14....53.1......0
Virgin.........................499.......23.48.....0
Mint...........................3888.96...90........0
Halifax 2......................3223......0.........64
Total unsecured debts..........27116.82..610.81....-

Monthly Budget Summary
Total monthly income.................... 2,125
Expenses (including secured debts)....... 1,692.2
Available for debt repayments........... 432.8
Monthly UNsecured debt repayments....... 610.81
Surplus(deficit if negative)............ -178.01

Personal Balance Sheet Summary
Total assets (things you own)........... 150,000
Total Secured debt...................... -116,000
Total Unsecured debt.................... -27,116.82
Net Assets.............................. 6,883.18

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

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.


TotallyBrassic.xx

Deep_In_Debt

Hi and welcome
Yes, you can sort your own dmp and it will trash your credit file I'm afraid for all the time that you are on the dmp and for 6 years after your last payment.

Have you contacted one of the free debt charities such as CCCS, CAB or National Debtline. They do free dmp's but if you would like to go it alone, they can all help you with dealing with your creditors etc.

Good luck.

sarriep

Hi TotallyBrassic (I so know how THAT feels!!)

You've probably read about CCCS on these boards - try contacting them as they ar the experts! IMO a DMP looks like a way forward for you. Your amount left over for debt repayments is the sort of figure that should go dowm ok with your creditors. You could do it yourself but I know some companies treat you more favourabl;y if a respected company like CCCS are involved. (They also give great advice)

I'm no expert on costs (we've got HUGE debts :eek: ) but your electricity really seems extortionate! Try turning your appliances off and then on one by one to see what's using the most -there may be a way of economising on this!

I'm not great at living on a budget but we're really trying! Maybe your grocery budget could be cut a bit?

Your credit rating will be shot BUT do you want credit again? Apart from our mortgage I know we don't. Ever. I got a lot of satisfaction cutting up my credit cards and looking forward to never using them again. Living with a new way of thinking is the way forward. I wand to educate my kids in this way too to help stop them from ever getting in the mess we're in.

My question to them and DH has become 'but do you NEED it or just WANT it?'

Good luck and keep posting!

Sx

TotallyBrassic

Thanks for your replies, I have contacted CCCS and am awaiting an interview with them. It's this credit rating thing that has been stopping us doing something, because we don't miss payments(though this will be the case soon anyway) it's hard to let go of it and just admit defeat! lol
I think we will be happier just letting go of the stress and trying to be positive about a DMP instead of seeing it as a negative thing.
There is still this nagging doubt too that we will now be in this house for upto 10 years unable to sell or even rent because our credit rating will be shot
Oh well, we got ourselves into this mess....gotta get ourselves out of it too.

xx

sarriep

I so agree.
I used to live in fear of debt recovery agencies, default notices on credit cards, not being able to get credit, not having a good credit rating.... but now, it's bl*&$y credit that's gotten me into this mess! (And my ridiculous spending, DHs gambling.......) so BRING IT ON!!!!
I was actually quite pleased we got our first default notice today! How bizarre that that's good news!
It's quite amazing how my views on money and spending have changed. If someone had said before I could cut my insurance, utility bills etc I would have kind of thought 'so what?' (I know, I know that's shocking!) but now I get quite excited about shaving off a few pounds here and a few pounds there!

Best of luck and keep posting!
Sx

sarriep

Oh and I believe there are some mortgage companies who specialise in dealing with us with a poor credit history - Charcoal is one - it might be woth discussing your worries with them!

Jvic28

TotallyBrassic wrote: »

My question is without going bankrupt, can we arrange a dmp ourselves?

Yes you can but why not give CCCS or Payplan a try. They can help set up a DMP without cost to yourselves. They will let you know if a DMP is suitable or not.

totallybrassic wrote: »

Does it badly effect your Credit Rating?
How long for?
If things turn around can you still pay these debts off more quickly?

If you come into money you can still put it towards the debt to pay off more quickly. Hard to say how badly your credit will be affected but any late payments/defaults etc will show on your credit report for 6 years.

Jvic28

Jvic28 wrote: »

Yes you can but why not give CCCS or Payplan a try. They can help set up a DMP without cost to yourselves. They will let you know if a DMP is suitable or not..

Woops, just read the posts and you've already done that. Well done and good luck.

LoulaBelle

HI Totally Brassic,

Welcome to the board and for having the courage to post your SOA - its always a step in the right direction, is there anyway either yourself or partner could get a second part time job for a while to start clobbering those cards??

Also have a good de-clutter and ebay, ebay, ebay! Why not get a load of stuff together - get the whole family to gather some stuff and go and do a car boot sale tomorrow - its wonderful weather (well it is today - haven't seen tomorrows forecast)

Is the whole family aware of the situation - I know it may be a lot to ask but could any of the teenagers help pay a little towards keep - even £5 a week?

Also groceries - you may be able to cut back a bit here with buying the 'value' range and meal planning.

Cut the clothing allowance - I'm sure you all have enough to get buy in for now.

Your life assurance looks high - have you checked comparison websites or are you tied to your mortgage lenders one?

Can you ask your council if you can pay over 12 months instead of 10 months if you are not already doing so?

All the best LoulaBelle

Burlesque_Babe

I wouldn't worry for now about your credit rating - as you're not going to be applying for credit anymore although I empathise as mine became 'clean' last months after waiting 6 years for 2 defaults and a tiny CCJ to drop off.

If you can avoid CCJ's they are your priority on your credit file, defaults are viewed almost as poorly by companies but to be honest are only going to be relevant if you're looking to change mortgage companies in the next 6 years or so.

Getting arrangements in place and formulating a plan are more important than what's marked (or may be marked ) on your credit file at the moment.

Bismarck

sarriep wrote: »

Living with a new way of thinking is the way forward. I wand to educate my kids in this way too to help stop them from ever getting in the mess we're in.

My question to them and DH has become 'but do you NEED it or just WANT it?'

valuable life skills....I'm still learning them even now but the bottom line is "where's the money coming from to pay for it?"

kids now know that magazines aren't a right at up to £3 a pop and takeaways aren't an essential item...or eating out.....