My Diary by Monkeyintrouble SOA now included

monkeyintrouble

Only just started looking on here yesterday and I am amazed at the great advice I've already been given so far. You all seem a great friendly bunch, many with similar problems to myself, some not as bad but sadly some a lot worse!
I thought I would start a diary so if people are interested they can monitor my actions and those of my creditors, just to make sure I am doing things right. Please if you see me do the wrong thing, or have any comments or advice please tell me. Well here goes;

I have been living above my means for some time and foolishly buried my head in the sand and ignored it. It hit me when one month I realised I had more money going out than coming in and was supplementing my spending using credit cards. Those two words now send a shiver down my spine!

Then when I looked into my finances I realised how much debt I was in. Over the years I had been overspending and "topping up" my finances by remortgages, personal loans, using credit cards......the list goes on. I am now in debt to the tune of about £32k (k is so much better than 000's)

Anyway, to cut a long story short, last month was the final straw. I was fed up with getting my wages paid into my bank account to find I was still overdrawn, before I even started paying the mountain of credit card statements etc. So I decided to check out the Citizens Advice and drew up a financial statement of income and expenditure, a list of priority debts (mortgage, council tax etc, you all know!). I enclosed a copy of my recent bank statements, a copy of my wage slip and an offer of reduced payment to all my creditors, worked out on a pro rata basis as advised by CAB. I sent all this to each and every creditor on 11th August and waited. Nothing! I then wrote to them all again on 30th August, and included my credit cards, cut up for security (oh that was a nice feeling cutting them up!)

I have had to chase most of these creditors ever since as they just continued sending me statements with late payment charges thrown on for good measure and my debts were increasing, even though I had requested they all temporary freeze the interest on my accounts until I am in a better position to pay them. I even told them I was putting my house on the market to release equity and would then pay them all off in full.

I found most of them very unsympathetic and wanting more than I can afford to pay. One card company and also a loan company took the outstanding balance out of my bank account without my permission even though I'd cancelled the DD (cc, loan and bank all the same company in this case) They did admit they had all received my letters but didnt reply as my account has to default before they would contact me. Seems my idea of keeping up payments, albeit reduced was not what they wanted!

Anyway, I phoned them all again this morning (what a monotonous task waiting to get through) and got a status on each account and finally I seem to be in the first stages of their system of defaulting. Although I have gone through all this, so far alone, I am now considering contacting CCCS on Monday and let them advise me further, and hopefully draw up a DMP.

Sorry for rambling on. Feel better now its off my chest ans Im starting to get my plan together. I feel its going to be quite a journey. I will keep you all posted. Thanks for reading chapter one of War and Peace!

monkeyintrouble

I will try and sort out a SOA as soon as possible. Need to get all my paperwork out and get the figures together

bank_of_slate

hi monkey.
use the https://www.makesenseofcards.com/soacalc.html to do your SOA!

Also, feel free to post on the daily chat thread to get to know some of the regulars...we even get together now and again to meet up!
...Linda xx

monkeyintrouble

Done it! Doesn't look good. Brings a stark reality to it all but you do have to face your DEMONS! Most amounts for minimum payments on cc's are approximate but you get the idea!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 670
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 25
Gas..................................... 25
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 24
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 75
Clothing................................ 10
Petrol/diesel........................... 75
Road tax................................ 19
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 12
Contents insurance...................... 13
Life assurance ......................... 18
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1157

Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 128000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79000....(670)......0
Total secured debts........... 79000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin cc......................3100......52........0
Halifax cc.....................2500......50........0
Barclaycard cc.................1700......40........0
lloydsTSB overdraft............1500......21........0
LloydsTSB......................4700......198.......0
MBNA loan......................5700......137.......0
MBNA cc........................1972......44........0
LloydsTSB cc...................2900......50........0
Mint cc........................6400......140.......0
Total unsecured debts..........30472.....732.......-

Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including secured debts)....... 1,157
Available for debt repayments........... 143
Monthly UNsecured debt repayments....... 732
Surplus(deficit if negative)............ -589

Personal Balance Sheet Summary
Total assets (things you own)........... 128,000
Total Secured debt...................... -79,000
Total Unsecured debt.................... -30,472
Net Assets.............................. 18,528

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.

PoorPrincess

Monkey,

Do you know the APR's of all of your Loans & Credit Cards.

Well Done for taking this first huge step & welcome

Princess

x

monkeyintrouble

PoorPrincess wrote: »

Monkey,

Do you know the APR's of all of your Loans & Credit Cards.

Well Done for taking this first huge step & welcome

Princess

x

Thanks Princess. No I dont know the apr's. On my statements it shows a monthly interest rate I think but I dont have them to hand at the mo. I'll sort them out and try and convert the monthly rate to an apr.

While Im on again, does anybody know how I go about arranging a DMP with CCCS? Im thinking of ringing them on Monday but by what I've seen on here it looks like you have to arrange an appointment. Is that a telephone appointment?

Jvic28

monkeyintrouble wrote: »

While Im on again, does anybody know how I go about arranging a DMP with CCCS? Im thinking of ringing them on Monday but by what I've seen on here it looks like you have to arrange an appointment. Is that a telephone appointment?

You can sort it all out online. I filled out mine whilst in work on a Saturday morning. http://www.cccs.co.uk/online-services/online-services.aspx

The whole DMP was arranged online and through the post. I have only had 1 phone call from them and that was for the review after 3 months.

Jvic28

monkeyintrouble wrote: »

Council tax............................. 92

Is this cost spread over 10 or 12 months. The council usually spread it over the 10 but if you call them they can spread it over 12 instead. Every little helps.

monkeyintrouble wrote: »

Electricity............................. 25
Gas..................................... 25

Is this the most competitive you can get? Have a check but if you switch ensure you use quidco or a similar cashback site to get the best out of switching.

monkeyintrouble wrote: »

Telephone (land line)................... 24
Mobile phone............................ 25
Satellite/Cable TV...................... 0
Internet Services....................... 0

In total you spend £49 on the phone. Make sure you are being economical here. I notice you haven't put a cost in for digital tv or the internet so do you really need a land line at all. Is your mobile on contract or PAYG? There are some good PAYG deals at the moment. For eg. Dolphin PAYG on Orange gives 300 free texts if you top up by £10 in a month.

monkeyintrouble wrote: »

Petrol/diesel........................... 75
Road tax................................ 19
Car Insurance........................... 32
Car maintenance (including MOT)......... 10

Do you need the car for work or could you commute using...wait for it....public transport. If you don't need a car for work it might be worth looking into. I once saved £30 a week in petrol costs by catching the train. £136 a month is a big chunk of money when you have your debts to pay.



Are you just providing for yourself or do you live with a partner? Just so we have an idea of your circumstances...it can help with ideas.

x

monkeyintrouble

Hi Jvic28
The landline phone is on an 18 month contract, but its a good deal anyway. For £24 a month I get free landline rental (I dont pay BT anything) free calls 24/7 including international and unlimited wireless broadband. Dont think I'll get much better than that!

As for the car. I only use it for work (well mostly) as it would probably take up to 2 hours to get there by public transport, and probably cost as much anyway. Not even worth selling and getting a cheaper one as I do need reliability and I've been down the old banger road before. False economy!

Thing is. I only want some time cos Im going to put my house on the market and downsize. So with the equity released I can pay off all my debts and start afresh. I just need my creditors to be patient with me now I have realised the error of my ways, freeze the interest so as not to increase my debts and in a short time, hopefully I can settle everything in full. Surely thats not too much to ask! Up to now though I haven't found the majority of creditors too sympathetic.

Anyway, good news today. I got confirmation of my new bank account so at least I can start fresh with that and reorganise my monthly finances. And as a bonus, stop the loan company taking unauthorised payments out of my account :j
Oh yeah, and I live alone. Half the reason Im struggling, only one income to pay all the bills.

I'll keep you all posted of any progress. Thanks all

Jvic28

monkeyintrouble wrote: »

Hi Jvic28
The landline phone is on an 18 month contract, but its a good deal anyway. For £24 a month I get free landline rental (I dont pay BT anything) free calls 24/7 including international and unlimited wireless broadband. Dont think I'll get much better than that!

That's pretty good. Maybe you can cut down your mobile costs if your landline is such a good deal.

I know you say it's only short term but with the market the way it is I really wouldn't hold your breath. You need to make a plan based on never downsizing as it isn't a given.

I also would like to move to a cheaper property and clear some debts. I'm currently in a new build apartment and would a like a cheap do-er upper. But I've not made any plans based on that.

Also, remember, if you get creditors to freeze interest, it will affect your credit rating and possibly your ability to obtain good rates on your mortgage deals in the future.

Just some food for thought.

Good Luck

monkeyintrouble

Thanks Jvic
Im stuck in a contract with the phone for over another 12 months so cant really do anything there.

Yes I understand the market problems with houses at the moment, but when I say short term I mean I will be selling when the market picks up, probably be at least another 2 years before that happens. But if that was not my goal, and my intention was to just pay all my creditors drastically reduced payments I daren't even think how many years that would take. So if my creditors are willing to wait maybe 2 or 3 years for full settlement, while Im slowly reducing the debt in the meantime, as opposed to say 15 or 20 years in dribs and drabs. Unless I win the lottery in the very near future! If i was in their shoes I know what I'd prefer!

I hope your moving plans eventually come to fruition.

Thanks for your interest...................Monkey