does this look right

Mimi_Arc_en_ciel

ok, i dont know the apr% etc on OH's debts but ive done a SOA so i can check the amount spare for the letter below. Does this look ok?

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 850
Benefits................................ 0
Other income............................ 75.2
Total monthly income.................... 1925.2

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 395
Management charge (leasehold property).. 0
Council tax............................. 102
Electricity............................. 44
Gas..................................... 50
Oil..................................... 0
Water rates............................. 17
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 11.95
Satellite/Cable TV...................... 44.74
Internet Services....................... 17
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 32.03
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 140
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
CCJ..................................... 50
Total monthly expenses.................. 1283.72

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

Monthly Budget Summary
Total monthly income.................... 1,925.2
Expenses (including secured debts)....... 1,283.72
Available for debt repayments........... 641.48
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 641.48

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

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

And this is the letter i am sending to ALL the companies involved in OH's debts to see if they accept the payments - want to try and sort this first without having to involve anyone else.

---

Mr. XX XXXXX

XXXXXXXXXXXX

XXXXXXXXXXXX

XXXXXXXXXXXX

XXXXXXXX

2nd November 2008

RE: Outstanding debt (REF: XXXXXXX)

Dear Sir/Madam,

With reference to the above account, I am currently in £27,350 worth of debts with various companies and am writing to everyone involved to ask that they accept the following payments. At the moment me, my partner and our daughter are surviving on my wages which pay all the bills etc. My partner has gone back to work as to pay of my debts and we will have £696.50 spare every month to pay back into my debts. I have worked out a percentage for each company and it is as follows:


Company Name ......................Outstanding Debt .....Percentage of Debt .....Amount offered

McKenzie Hall ............................£15,700 .............................57% ..............................£399.00
Alliance and Leicester ...............£6,800 ...............................25%............................... £175.00
Lowell Portfolio I ........................ £1,754 ..............................6% .................................£42.00
Barclays Credit Card ...................£1,680 ..............................6% .................................£42.00
TBI Finance ...................................£737 ...............................3% ...................................£21.00
First Credit Ltd ..............................£679 ...............................2.5% ................................£17.50
Totals: ......................................£27,350............................. 99.5% ...........................£696.50


As you can see from the above calculations, I have tried to do the re-payments fair and each company will be re-paid within 39 months.

If the re-payments are not agreeable with every company I will have no other option but to declare myself bankrupt but I am hoping this is a last resort.

I am appealing to you all to assist me on these matters, I know I have buried my head in sand on the matters of my finance in the past but I realize now that I need to grow up and sort my finances out, not only for my sake but for the sake of my family’s.

I understand that by law you are not allowed to refuse any money sent to yourself in regards to my debts so I will be sending payments via cheque for the above amount starting on the XXXXXXX and will continue every month until the debt has been repaid.

Also, this letter is also to confirm that my partner, XXXXXXXXXXX can speak to any of your representatives on my behalf and she can be contacted on XXXXX XXXXXX as I work away a lot of the time and am unable to take personal calls at work. XXXX knows of the situation and is the best person for you to deal with at present.

Thank you for your patience


Mr. XXXX XXXXXX

---

Now i realise that the figures are different in the SOA and the letter - My OH gets over time so i have only put his basic wage in and also i know the child care costs are EXPENSIVE - atm because i havent actually started my new job we arent entitled to help, she has only just started child care to get her used to it and is only in there one day a week atm - i was hoping to be starting my new job this week but it hasnt worked out how i would of liked it to - We have been told by tax credits we will recieve help with child care and OH's company will start the busy bees scheme for this so that figure will be reduced.

In theory - does this look like a good solution?

p.s - i know the phone bill on the mobile is high but im tied to the contract for another 5 months and that is the min i can pay - also i know the gas and electric seem high - they are combined and it works out at £94 a month so ive just shared it between them.

Also - we are moving soon and our new rent will be roughly a hundred pound cheaper

dominos

Sorry can't help but didn't want to read and run. Hopefully someone will be along soon to help you out.
Good luck

Gemmzie

It seems like you're over committing yourself by about £50 a month and this isn't good for a DMP.
How did you get the figures? You should start with the total amount you have available and then use that for the pro-rata payments

dancingfairy

Hi. I am concerned that you are spending 44.74 a month on cable/satelite which you can't afford right now.


Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 395
Management charge (leasehold property).. 0
Council tax............................. 102 pay over 12 months
Electricity............................. 44
Gas..................................... 50
Oil..................................... 0
Water rates............................. 17
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 11.95
Satellite/Cable TV...................... 44.74 needs to go.
Internet Services....................... 17
Groceries etc. ......................... 200 how many for?
Clothing................................ 30
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 32.03
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 140 can you get childcare vouchers ?
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 nothing?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 you really need some insurance surely?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 need to allow some
Haircuts................................ 0
Entertainment........................... 0 you need some
Holiday................................. 0
Emergency fund.......................... 0 you need something here
CCJ..................................... 50
Total monthly expenses.................. 1283.72

Hi. I am not sure whether you were planning on sending the SOA with the letter but it didn't look quite right to me. What are the mim. payments he needs to make each month - is he anywhere near being able to meet them? Also have you asked CCCS/CAB etc for advice even if you are more comfortable doing your own dmp. Sorry for all the questions.
df

dancingfairy

Oh and have you phone the phone co. and asked to reduce your mobile to a lower package as you can't afford it. They may be able to lower it - you need to ask them.
Also when are you thinking about moving as you could switch electric and gas as well.
df

whitewing

Should be able to cut £50 a month off groceries - see Old Style board.

I wanted to say well done. You're obviously putting a lot of thought into what you're trying to achieve, and working together to do so. Don't forget to enjoy the journey as well as the eventual happy ending.

Mimi_Arc_en_ciel

dancingfairy wrote: »

Hi. I am concerned that you are spending 44.74 a month on cable/satelite which you can't afford right now.


Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 395
Management charge (leasehold property).. 0
Council tax............................. 102 pay over 12 months
Electricity............................. 44
Gas..................................... 50
Oil..................................... 0
Water rates............................. 17
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 11.95
Satellite/Cable TV...................... 44.74 needs to go.
Internet Services....................... 17
Groceries etc. ......................... 200 how many for?
Clothing................................ 30
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 32.03
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 140 can you get childcare vouchers ?
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 nothing?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 you really need some insurance surely?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 need to allow some
Haircuts................................ 0
Entertainment........................... 0 you need some
Holiday................................. 0
Emergency fund.......................... 0 you need something here
CCJ..................................... 50
Total monthly expenses.................. 1283.72

Hi. I am not sure whether you were planning on sending the SOA with the letter but it didn't look quite right to me. What are the mim. payments he needs to make each month - is he anywhere near being able to meet them? Also have you asked CCCS/CAB etc for advice even if you are more comfortable doing your own dmp. Sorry for all the questions.
df

Hiya, sorry if you read the little bit underneath after everything i put i stated that were moving house so that we will have an extra £100, also i put OH's wages as £1000 and he actually gets more than this as he works OT - £1000 is minimum so i thought it would be best to put that. My wages are a rough guess - i'll be on 16k a year so guessed around £850 left after tax. The council tax is paid over 12 months, its £102 a month.

The groceries is for 2 adults and a baby so ive included nappies, milk etc in there.

Medical - the only medical things we have needed (apart from paracetamol) in the last 2 years is my medicine which i have an exemption card for so i dont pay for prescriptions.

contents insurance were trying to sort out

Birthdays and christmas - i dont buy presents for birthdays unless its DD - xmas, i save on a monthly basis up until Oct - £30 a month. The £50 over budget and the £30 xmas i havent included. Because we are moving we will have extra money where we are paying less rent so i have just equalled them out. (it makes sense in my head lol)

entertainment - is our sky im afraid to say lol I have spoken to a few DMP companies and they allow for sky b ut this will be cancelled when the contract runs out - as will the mobile phone (they wont change the contract for 5 months and said if i stop paying they will take me to court to get the remaining 5 months contract fees)

Emergency fund - im ashamed to say i rely on my mum and dad at the moment! I will sort this out but at the moment i would rther throw everything at the debts and then sort it.

Child vouchers - again i put at the bottom, because i havent started my new job yet were not entitled to them just yet but have been told to ring up when i go back to work and they will sort it for me.

Gemmzie

39 is just over three years and your SOA doesn't allow for that period. I think you should speak to CCCS or/and Payplan and have a chat about figures.

You need to budget for emergency funds etc. Little one will be approx 4 by then, they'll need new clothes/furniture etc in that time.

You're being a bit too tight on yourself I think

savingholmes

Hello and welcome

I would recommend that you take some advice too from CCCS or Payplan. You don't want to over-commit yourself and then default.... I know you are eager to repay debt which is great but on a dmp I understand you do need to put some money together for an emergency fund as you won't be able to borrow if your washing machine blows up or some other problem arises...

CCCS and Payplan I understand are free and that they take at least some of the hassle out of a dmp... Was there a particular reason you were avoiding using the free debt charities?

Mimi_Arc_en_ciel

savingholmes wrote: »

Hello and welcome

I would recommend that you take some advice too from CCCS or Payplan. You don't want to over-commit yourself and then default.... I know you are eager to repay debt which is great but on a dmp I understand you do need to put some money together for an emergency fund as you won't be able to borrow if your washing machine blows up or some other problem arises...

CCCS and Payplan I understand are free and that they take at least some of the hassle out of a dmp... Was there a particular reason you were avoiding using the free debt charities?

Heard some horror stories about people on a dmp through an organisation so figured we'd be as easier doing it ourselves. When we spoke to CCCS they told us they couldnt help us.

As i said - if it was an emergency then my parents would help out and DD already in a bed (with a detachable side bumper) so she wont need furniture for a bit.

It looks like we've over commited but thats on the basis that my OH will bring home £1000, for the past year he has been bringing in £1500 minimum but dec is usually a bad month and he doesnt get much over time (he still gets some tho so will always be over £1000 but ive put this just in case he gets no over time, ever, which hasnt ever happened at the company he works for)

If we had an extreme emergency - I dont have ANY debts so i would be able to borrow but i really dont want to

Mimi_Arc_en_ciel

Incisor wrote: »

On current info, it looks like you will be able to pay off over 4 or 5 years, so going bankrupt may be too drastic. Do please post the amounts, term and APR of the debts to see if there may be scope to juggle them around.

nah he wont go bankrupt its more of a "if you can not help Jay with a DMP then he will go bankrupt" but i really doubt it will come to that.

As ive already put - i dont know/have the APR's so can not put these - Its starting to get annoying re-writing everything but i know people are trying to help so i'll be accomodating lol