Reality check

petrafyde

fizz190 wrote: »

Hiya,

Just to add to the messages of support...

I did a DIY DMP (ie I negotiated with all the creditors myself, gulp), got all to agree payments and most to freeze interest. The result - I felt I could breathe again for the first time in years! Although it took a little while to finalise everything, it was a great feeling to know I wasn't hiding anymore and was taking charge.

Now I'm bang up to date with all my debts (although occassionally slip up with GUS's demands for 4 weekly rather than monthly payments - grr), and looking forward to being debt free in about a year.

Good luck!

Fizz

Nice one Fizz, I'm going to try and do that myself too

Honky_tonk

OH MY! What an awesome response! Thanks ever so much for all the kind words and ideas and smilies! I shall endeavour to put my SOA up very soon!

Ms-Pacman

If you use a debt management plan make sure you are not being charged to use it as I've come accross a few who tak e anice chunk each month as a fee.
I is possible to do this for free.

KME91

I set up my own DMP, negotiated with my creditors myself. it was hard work but i can see now that there's light at the end of the tunnel. it was such a relief to have everything out in the open, and be doing something about it.

the way i have my plan set up, i have a couple of debts that are paid by standing order. if i have a good month and have extra money from overtime or whatever, i can make an extra payment to get that figure that little bit lower.

i used to dread the post, i wouldn't open it out of worry. but now i look forward to my statements every month, to see how much more i've achieved every month!

it's made such a difference to me, i'm less stressed, less depressed, and i have a manageable budget and can see what i'm achieving. setting it up myself also gives me confidence, if i can do that, i can do anything! to be fair sometimes i do get depressed about how long it's going to take to pay everything off, but i try to focus on the positives.

good luck

Honky_tonk

Morning All, I think I may have miss posted this a few minutes ago but hey ho.Here is my SOA as discussed. Points to mention: We only run 1 car, Mrs HT is temping at the mo (hope that'll change soon), 2 adults + 1 mini me as well as child maint. for my daughter all included.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1752
Partners monthly income after tax....... 1170
Benefits................................ 110
Other income............................ 0
Total monthly income.................... 3032

Monthly Expense Details
Mortgage................................ 258
Secured loan repayments................. 0
Rent.................................... 359
Management charge (leasehold property).. 0
Council tax............................. 114
Electricity............................. 33
Gas..................................... 19
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 11.5
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 240
Clothing................................ 40
Petrol/diesel........................... 130
Road tax................................ 15
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 25
Childcare/nursery....................... 800
Other child related expenses............ 165
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 20
Gas/elec maint.......................... 36
Kids (pocket Money etc)................. 10
Dentist/Optician........................ 10
Tobacco................................. 20
Total monthly expenses.................. 2538.5

Assets
Cash.................................... 0
House value (Gross)..................... 79000
Shares and bonds........................ 0
Car(s).................................. 100
Other assets............................ 0
Total Assets............................ 79100

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 58000....(258)......0
Total secured debts........... 58000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................9443......158.......0
Credit Card....................1094......24........0
Overdraft......................1800......0.........0
Loan From Family...............700.......50........0
Credit Card....................3135......85........0
Credit Card....................3771......98........0
Credit Card....................1813......54........0
Credit Card....................2215......66........0
Credit Card....................650.......14........0
Loan...........................12742.....107.......0
Credit Card....................1082......33........0
Credit Card....................1563......32........0
Overdraft......................1500......0.........0
Total unsecured debts..........41508.....721.......-

Monthly Budget Summary
Total monthly income.................... 3,032
Expenses (including secured debts)....... 2,538.5
Available for debt repayments........... 493.5
Monthly UNsecured debt repayments....... 721
Surplus(deficit if negative)............ -227.5

Personal Balance Sheet Summary
Total assets (things you own)........... 79,100
Total Secured debt...................... -58,000
Total Unsecured debt.................... -41,508
Net Assets.............................. -20,408

Dont know what to say now except.......SCARY EH?!?!
Thanks
HT

Jacks_xxx

Hiya Honkytonk,

Just a quickie cos I'm flying out of the door but will update when I have elevenses at work!

My first thought is that youy might actualy be better off if your OH stayed at home or had a p/t job for a while.

Punch all of your details without her wages into entitledto.com and see if tax credits etc would make up the shortfall.

http://www.moneysavingexpert.com/protect/benefits-check?gclid=CISBqaumq5YCFSSzEAodtwwN0w

Secondly, you're going to need to look up the interest rates of all the debts cos they are crucial to paying it all off as fast and as cheaply as possible.

When you have them, punch it all into the Snowball calculator and see what it says. (Warning - like so many things, it's a bit scary the first time! )

More later hon, Must dash!

Love Jacks xxx

Honky_tonk

Hi Jacks,

I ran through that scenario last night and it seems we'd get no more than we already do. So the little left over after paying for the childcare is still worth its weight (I think)
I knew someone would mention interest rates, I was zipping through the form thinking "interest rates?" Do I need them if I am edging into the world of DMP? I know the DMP folks will need them of course. If its worth shoving them on here then I shall see what I can do.

On an updating note! My mortgage has just increased this very morning! Nice but at least its fixed for the next few years. So I guess I'll have to update the whole thing, which to be honest isnt as difficult as I am trying to make it sound:D (first smiley!)

Anyway,

thanks for looking, tis nice to share my burden!

RAS

Hi

The situation at the moment might be solveable without the DMP but without more information on your debts it is difficult to tell.

We need to know APRS and maximum limits on all the CCs and the OD and to know the APR and number of outstanding payments on the loans.

A DMP will affect your credit rating for the next 6 years, possibly more.

Just also to explain that there is a DMP SOA, which is the one where you ensure that you budget for a decent life style and then allocate the remainder to creditors.

ON DFW we also look at the other sort of SOA, where we pare stuff down to the bone with the intention of hitting some expensive debts which then means that you can afford the rest of the debt longer-term.

IIf the missus is just temping, what sort of salary would she get if she got permanant work? and how old is mini-me?

Honky_tonk

Hello Ras,

Ok I see the reasoning behind it now. I will gather and post later today.
If wife does get the perm. role its looking to be nearer the £1400 pcm mark. Clearly better than the current £1170. Of course this all means nothing without all the required info (APRs etc) and the firm she is with signing it off! So fingers crossed there.

Mini-me is just over a year and starting to stamp his authority!

Thanks

Jacks_xxx

Honky_tonk wrote: »

Hi Jacks,

I ran through that scenario last night and it seems we'd get no more than we already do. So the little left over after paying for the childcare is still worth its weight (I think)
I knew someone would mention interest rates, I was zipping through the form thinking "interest rates?" Do I need them if I am edging into the world of DMP? I know the DMP folks will need them of course. If its worth shoving them on here then I shall see what I can do.

On an updating note! My mortgage has just increased this very morning! Nice but at least its fixed for the next few years. So I guess I'll have to update the whole thing, which to be honest isnt as difficult as I am trying to make it sound:D (first smiley!)

Anyway,

thanks for looking, tis nice to share my burden!

I'm glad you've got the hang of smileys hon!

I just wanted to bang on about your OH quitting work some more by telling you about how it worked for us. (Sorry - I have the nagging gene! )

I couldn't believe it when jacking in my job was the solution to our debt problems but when we did the sums it was incontrovertible.

If I quit

• we didn't have to pay childcare,
• we got more tax credits,
• our petrol consumption went down,
• our grocery bill went down because I had time to think about it - no rushed impulse convenience buys anymore!
• I didn't need to buy work clothes any more - and I used to spend a fortune on lipstick, tights and new tops keeping up with the other girls.
• I no longer needed to spend money on work socialising that we were expected to do. (or bloody collections, Secret Santa, Christmas dos or sponsor forms! :mad: )
• No more £3 coffees or £4 chicken salads cos I was hungry knackered, and in a rush...Ditto for takeaways and convenience food.

When we added it up it just made sense for me to have p/t job near home at a time when I wouldn't need to pay for childcare.

But enough about us! :rolleyes:

Your OH's take home after childcare is deducted is about £92.50 per week - right?

if you start deducting things like travel and work clothes from that as well it's not going to be long before you're in deficit.

(Just to put this into perspective: she could make the same money working two shifts a week in the local supermarket whilst you were around to look after Mini-me.
Does she want to kill me now???? :eek::D )

If she didn't work you'd get more tax credits, you'd pay less on any DMP you start. Your grocery bill would shrink and maybe things like mobile phone, clothing Petrol, would shrink as well.

(On the flip side: Your heating bill may go up and you may not have enough money to enter a DMP on only one income. )

I'm not advocating it my lovely, financial considerations are not the only factors in play here.

I'm just saying think outside the box, and do all the sums before you dismiss any option that comes up.

My hubby was proudly telling someone the other day that the reason we have (almost) kicked debts @r$e is my willingness to be flexible and creative about absolutely everything and carrying him along with me like a sack of potatoes!

He gives himself no credit there but he has a point. It's getting out of the rut of the same old thinking, and not doing what the debt companies expect most people to do (Just pay the minimums. When you start to struggle borrow more money..) that'll get you out of this.

There endest today's lecture my lovely. It's time to get the brekkie on!

Love Jacks xxx