is a debt management plan a good idea?

joanne2008

I am struggling big time i have credit card minimum repayments of £280 per month.
I am overdrawn over a £1000
and I have just been told my hours have been cut too to 20 hours if i was too continue paying this amount to my credit cards i would.
I have also recieved an over payment bill from tax credits (thats another story) and they require me to pay £80 per month for a year.
I called them today to say my wages had gone down and could i make smaller payment and they said they need to look at my finances to see what i can afford to pay!! After the bills i have £124 per month for shopping. Do i pay my £80 per month tax bill and see the citizen advice to sort out my debt once and for all or do i get the amount cut that i need to pay inland revenue i really dont want to be in debt to them or any of them really.
What do i do, never been in this position before, i have been stupid i know.
The scary thing is i have cut up all my credit cards so have nothing to 'fall back on' incase of no money for shopping etc (mind you thats what got me into this mess):o
Whats best to do ?
help.

skintandscared_2

Hi joanne. Welcome to the board - and don't panic. There are so many people here in a similar situation. This will be the best step you've taken so far (after cutting up your cards) so well done you.

First thing you need to do is complete a statement of affairs (SOA) so we can see what your situation is. That will determine whether you can make cutbacks in certain areas, to give you enough to live on AND pay off your debts, or whether you need to get help from one of the debt charities. Use this link to complete your SOA and let's see if we can help.

http://www.makesenseofcards.com/soacalc.html

joanne2008

HI where do i post my SOA?

LilacPixie

just post it here in this thread Joanne.

joanne2008

Ok thanks here goes....

joanne2008

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 60
Partners monthly income after tax....... 0
Benefits................................ 1021
Other income............................ 165
Total monthly income.................... 1246

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 595
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 117
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 10
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 0
Petrol/diesel........................... 0
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................. 0
Buildings insurance..................... 0
Contents insurance...................... 10.88
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 844.83

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
mbna credit card ..............2193.92...15.18.....24.9
capital one card...............1296.44...64.82.....18.82
tesco credit card..............1077.29...32........16
tax cred overpayment...........973.16....80........0
natwest credit card............2713.06...61........14
Total unsecured debts..........8253.87...253.......-

Monthly Budget Summary
Total monthly income.................... 1,246
Expenses (including secured debts)....... 844.83
Available for debt repayments........... 401.17
Monthly UNsecured debt repayments....... 253
Surplus(deficit if negative)............ 148.17

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -8,253.87
Net Assets.............................. -8,253.87

Created using the SOA calculator at https://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.

joanne2008

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 60
Partners monthly income after tax....... 0
Benefits................................ 1021
Other income............................ 165
Total monthly income.................... 1246

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 595
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 117
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 30
Mobile phone............................ 10
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10.88
Life assurance ......................... 0
Other insurance......................... 11.5
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 896.33

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
mbna credit card ..............2193.92...15.18.....24.9
capital one card...............1296.44...64.82.....18.82
tesco credit card..............1077.29...32........16
tax cred overpayment...........973.16....80........0
natwest credit card............2713.06...61........14
Total unsecured debts..........8253.87...253.......-

Monthly Budget Summary
Total monthly income.................... 1,246
Expenses (including secured debts)....... 896.33
Available for debt repayments........... 349.67
Monthly UNsecured debt repayments....... 253
Surplus(deficit if negative)............ 96.67

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -8,253.87
Net Assets.............................. -8,253.87

Created using the SOA calculator at https://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


REVISED VERSION SORRY MISSED SOMETHING OFF.

skintandscared_2

joanne - do you have a child, or is this just for you? There is something under "other child related expenses"? If so, is £80 a month for groceries right?! That's VERY good if it is!

What job do you do where you get £60 for 20 hours work??!!!!!

With nothing for clothing, presents, emergency fund or entertainment, I'd imagine that your "surplus" of just under £100 doesn't actually exist by the end of the month, yes?

I can't see anywhere on your SOA where I think you could make any real savings to be honest. But I think your surplus available for debt repayments of just under £350 would be enough for CCCS or Payplan to be able to take you on for a DMP. I think it would be well worth talking to them.

joanne2008

yes i have a daughter.
Yes at the moment we are spending £20 per week on food to try to get our over draft down.
I am a registered childminder and have just lost my full timer leaving me with just one part timer hense why i only get £60 per week now.


Jo

skintandscared_2

Well that's very good for groceries - well done you!! The SOA is MONTHLY figures hun, so you might want to adjust that to say £240, not £60. That will alter the figures a bit. Is it worth advertising your childminding services on postcards in local newsagents (near the local school) for another full-time child or children? (I don't know what the legal limit is for one person) I know how hard good childminders are to find!!

joanne2008

yes i am advertising everywhere at the moment, in the hope that someone wants me. The legal limit is different depending on your overal foor space i can care for 3 children.
So need another 2 to be full capacity fingers crossed.

Thanks for your help.

Jo