Some advice needed please...

debt_daisy

Hi There,

After reading some of the posts on here I am pretty much in the same situations as some of you with regards to debt. I'm considering going on a dmp but am really worried about a few things. So here are my concerns and my story if you are kind enough to listen.

Ok so first will explain my financial situation. I have an average grad job with a good starting salary. I only work 39 weeks per year as is term time so I always have the option of working in the holidays to make more cash but tbh the job I have is very stressful and seeing as I can’t take holidays when I’m working I feel like I am entitled to some sort of holiday time, I know this sounds selfish if I have money problems but everyone needs a holiday right? I don’t mean I take the whole time off but I think if I literally worked all year round I would have a nervous breakdown.

Ok so back to the debt, I have several creditors who I owe money to:

GE Money- store card
Barclaycard credit card
Natwest credit card
Abbey credit card
Mint card

Egg Loan
Sainsbury’s Loan

I also have two student overdrafts and money that I owe to parents etc for helping me through university all of this is to the sum of around £23000...god this sounds so scary when I think of it like this but I want to start facing up to things.

So my financial situation is this, after paying a little over the minimums on cards and loans, money owed, rent, bills etc I literally have around £30 a month to live off, food and petrol included in this. This means that whatever money I pay off on cards usually gets used again to make ends meet and get me through the month.

Now I have two main concerns about doing a DMP, firstly I live in rented with my BF but my credit address is my home address and I am worried the above companies will hassle my poor Mum and also some of my cards were joint with my BF and although I have written to companies recently to ask them to change this I am worried he may be affected by my DMP.

I have rarely defaulted on payments, occasionally I have missed a few down to me missing dates rather than not having the money but am also thinking shall I just bite the bullet and try and sell things on eBay or temp more in holidays to make up the shortfall? I really want to work to getting this debt paid off or at least under control.

There is one other thing I need a car for work and I am worried that my current one is going to pack up in around another year etc so if I was to go on a DMP I’m guessing my chances of getting a car on HP or something similar would be out of the question? Not that ideally I want to do this, ideally I would be able to save and buy it outright, but I need to have transport and I think this would be the only way I could do it in the foreseeable future.

Ok so that is me, I just need advice to I stick with what I’m doing and try to pull more money from somewhere or do I do the DMP? It may be worth mentioning that have been to CAB and they advised a DMP and also I have tried the debt remedy on CCCS but have never got to the point of submitting it...I know you all said you found calling CCCS relatively easy but I did feel a little embarrassed when I called and the lady wasn’t overly helpful.

Thanks for listening, DD

sparky0107

Hiya hun,
Welcome to the forum, can you post your SOA (statement of Affairs) you'll need to include outstanding balances & APR's.

www.makesenseofcards.com for your SOA & www.whatsthecost.com for the snowball calculator. Once again welcome, once you get your SOA on here some very helpful people will be along to give you some great advice. Well done on having your lightbulb moment (LBM)

debt_daisy

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1050
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1050

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 375
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 50
Gas..................................... 0
Oil..................................... 0
Water rates............................. 11
Telephone (land line)................... 12.5
Mobile phone............................ 45
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 12.5
Groceries etc. ......................... 75
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 15
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..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 861

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................5650......130.......0
credit card....................1900......40........0
credit card....................2400......5.........0
overdraft......................2000......0.........0
overdraft......................2000......0.........0
loan...........................4000......90........0
loan...........................1300......50........0
credit card....................3000......50........0
credit card....................500.......10........0
store card.....................1000......40........0
Total unsecured debts..........23750.....415.......-

Monthly Budget Summary
Total monthly income.................... 1,050
Expenses (including secured debts)....... 861
Available for debt repayments........... 189
Monthly UNsecured debt repayments....... 415
Surplus(deficit if negative)............ -226

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total Secured debt...................... -0
Total Unsecured debt.................... -23,750
Net Assets.............................. -21,750

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

debt_daisy

can i just say that although the figure is out by -£226 some things I have estimated monthly as already paid my car insurance up to November, Food I just buy when necessary but I thought on average is between £30-40 per month between 2 adults, and also I have estimated my electricity by what my neighbour pays with same electrical set up near or less as in storage heaters etc and economy 7 for water heating etc. Hope this makes sense, any comments would help.

shinyhead

DD,

You've mentioned that some of the cards are joint. Are the statements in one or both names? I've always thought that a credit card account was in one name with others as authorised users-but the account holder remains responsible for the others'spending. So are these yours with BF as an authorised user, or the other way round? If the first then he won't get any hassle if that's what you're afraid of. If the latter then strictly speaking they shouldn't be included in your DMP as technically they're not in your name.

To avoid any hassle at home I suggest that you notify change of address ASAP and allow some time before going on a DMP. Take this opportunity to make sure they don't have your new phone number if you can, so everything with your creditors is in writing.

debt_daisy

Hi SH,

Thanks for your reply. I think you are right the cards aren't joint as such but he is an additional card holder. I am sure that CCCS told me that he would be affected but maybe that's becuase I said they were joint?! The only thing joint we do have is a joint account for our rent, bills etc which I am quite happy with but I guess if I do a DMP this could screw this up especially as it is with Natwest and some of my debts are with Natwest? I didn't really want to change this if I can avoid it?!

Circumstances have changed slightly at work in the last couple of days. There is the chance of me being able to get another qualification which could and should hopefully mean that I would be on more money or could do freelance. I am going to list all of my things on ebay thisevening also and see if that can help over the coming months. I just try and stay positive...Do you think a DMP sounds like the only option though? I am thinking if I have a pay increase this would be really helpful.

D.D

debt_daisy

that should have read freelnace in my spare time also.