Time to deal with my debts

Davet_2

I have looked at this site many times to help me deal with my debts and have now finally decided to post as I feel I am now in desperate need of help. I will post my SOA shortly. I am having sleepless nights due to my debts, and I have read other peoples posts saying it gets better once you post on here and deal with your debts head on.
The most concern I have is that I am worried about my job due to these debts, I do want to repay them but the interest is really hurting, I am an accountant and do not want these debts to affect my qualification, which I worked hard for. I posted some details with CCCS and it advised IVA or DMP, I would prefer DMP as I will repay all the money, but would like advice from other people who are in my situation. How will my credit be affected etc. (not that I want more, really for future mortgage purposes).

Davet_2

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1752
Partners monthly income after tax....... 455
Benefits................................ 183
Other income............................ 0
Total monthly income.................... 2390

Monthly Expense Details
Mortgage................................ 470
Secured loan repayments................. 855
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 40
Gas..................................... 50
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 25
Mobile phone............................ 50
TV Licence.............................. 11
Satellite/Cable TV...................... 17
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 25
Petrol/diesel........................... 20
Road tax................................ 10
Car Insurance........................... 25
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..................... 20
Contents insurance...................... 25
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2088

Assets
Cash.................................... 0
House value (Gross)..................... 175000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 176500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 126000...(470)......4.25
Secured Debt.................. 85000....(855)......12
Total secured debts........... 211000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Egg............................3500......70........19
Barclaycard....................9000......190.......20
HSBC Loan......................8000......160.......9.9
Burtons........................225.......10........30
HSBC Loan - wife...............2300......70........20
overdrafts.....................2000......0.........20
Argos card - wife..............500.......25........29.9
RBS - wife.....................800.......20........0
mint...........................2200......50........0
Barclaycard - wife.............1100......25........20
Egg - wife.....................750.......20........0
Total unsecured debts..........30375.....640.......-

Monthly Budget Summary
Total monthly income.................... 2,390
Expenses (including secured debts)....... 2,088
Available for debt repayments........... 302
Monthly UNsecured debt repayments....... 640
Surplus(deficit if negative)............ -338

Personal Balance Sheet Summary
Total assets (things you own)........... 176,500
Total Secured debt...................... -211,000
Total Unsecured debt.................... -30,375
Net Assets.............................. -64,875

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

======== Enter any other useful information below ========

I have 2 children & we only need to run 1 car as mine is a company car

Jesthar

Hi, Davit, and welcome

First off, congratulations on having your lightbulb moment and starting to deal with this!

Secondly, whatever happens, you need to keep up payments on your mortgage and secured loan, then your council tax and utility bills. All the unsecured debts come last.

From the look of it, you need to find some extra cash each month just to meet minumum payments, so let's see if we can save you some money:

Davet wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1752
Partners monthly income after tax....... 455
Benefits................................ 183
Other income............................ 0
Total monthly income.................... 2390

Monthly Expense Details
Mortgage................................ 470
Secured loan repayments................. 855
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 40 - could be better, I think - have you tried switching supplier?
Gas..................................... 50 - also could be better, I think - have you tried switching supplier?
Oil..................................... 0
Water rates............................. 40 - is this metered? If so, you might want to try some water saving tricks.
Telephone (land line)................... 25
Mobile phone............................ 50 - ouch! Can you switch/lower your tarrif or go PAYG?
TV Licence.............................. 11
Satellite/Cable TV...................... 17 - you should get rid of this if you can.
Internet Services....................... 0 - really? Or is this in with the phone?
Groceries etc. ......................... 250 - you can probably knock £50 off this easily, maybe a good bit more with care. Have a look at the Moneysaving Old Style boards for inspiration on stretching a food budget!
Clothing................................ 25 - this needs to be dropped for a while if possible, essentials only.
Petrol/diesel........................... 20
Road tax................................ 10
Car Insurance........................... 25 - have you checked for cheaper insurance?
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..................... 20 - seems very high!
Contents insurance...................... 25 - seems very high!
Life assurance ......................... 25 - no idea about average costs for this, but have you checked to see if this is the best deal you can get/
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2088

Assets
Cash.................................... 0
House value (Gross)..................... 175000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 176500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 126000...(470)......4.25
Secured Debt.................. 85000....(855)......12
Total secured debts........... 211000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Egg............................3500......70........19
Barclaycard....................9000......190.......20
HSBC Loan......................8000......160.......9.9
Burtons........................225.......10........30
HSBC Loan - wife...............2300......70........20
overdrafts.....................2000......0.........20
Argos card - wife..............500.......25........29.9
RBS - wife.....................800.......20........0
mint...........................2200......50........0
Barclaycard - wife.............1100......25........20
Egg - wife.....................750.......20........0
Total unsecured debts..........30375.....640.......-

Monthly Budget Summary
Total monthly income.................... 2,390
Expenses (including secured debts)....... 2,088
Available for debt repayments........... 302
Monthly UNsecured debt repayments....... 640
Surplus(deficit if negative)............ -338

Personal Balance Sheet Summary
Total assets (things you own)........... 176,500
Total Secured debt...................... -211,000
Total Unsecured debt.................... -30,375
Net Assets.............................. -64,875

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

======== Enter any other useful information below ========

I have 2 children & we only need to run 1 car as mine is a company car

Well, your income doesn't exceed your outgoings, which is good, but you don't have an enormous amount of leeway for saving extra money. Is there any chance you could balance transfer some of the cards to lower APRs, as some of them are nastily high - particularly the storecards? If you can do that, you may be able to manage a bit better.

Do you have any savings at all? If so, using some to clear the small, high interest rate debts (Burtons and Argos) might be a good idea. And if you haven't already done so, take a pair of scissors to the cards ASAP! Well, maybe keep the lowest APR one for emergencies, but keep it locked away!

Also, have you ever been hit with any charges on your credit cards or store accounts? If so, you need to start claiming them back, as they have been ruled unfair by the courts.

I think it might be a good idea for you to contact one of the debt management charities such as PayPlan or CCCS, or at least the CAB. I'm not sure if going on a DMP would affect your Accountancy status, though?

~Jes

Jesthar

Forgot to ask - have you missed any/many payments on your cards? If not, you might want to at least give Martin's Credit Card Shuffle a try a a starting point, you might get somewhere:

http://www.moneysavingexpert.com/cards/cut-credit-card-interest

~Jes

lunar

Hi, welcome to the forums and well done for having your light bulb moment. keep on posting here and you will get loads oof help and support.

Do you pay council tax over 10 or 12 months, changing it to 12 would lover your monthly payment a little.

do you have things you could list on ebay to try getting rid of your smaller high interest cards? its amazing what you can make on there, ut be quick and get things listed asap as it is better to get things sold before christmas.

Be careful if you apply for 0% cards, dont ruin your credit rating by applying for loads. try applying for 1 card then wait a couple of months.

take a look at the challenge threads and see which you think you could benifit from.

I had more debt than you when i started and the first few months were really tough. my outgoings were over my incomings by £400! the only way i managed without going on a DMP was through ebay and working extra shifts till i got my outgoings to less than my income. once you get to that stage you can take a look at the snowball calculator at www.whatsthecost.com i found it really motivating.

you will get loads of advice on here, just keep on posting.

GeorgeUK

Hi Dave

Well done on posting. Alot of people find it quite daunting but we'll try to be gentle.

Secured loan repayments................. 855 (was this a previous debt consolidation?

Council tax............................. 130
If paying over 10 months, can you ask to pay if over 12?

Electricity............................. 40
Gas..................................... 50
Have a look at the price comparison sites to see if you are getting the best deal. Switch off everything at night and use energy saving bulbs.

Water rates............................. 40
Are you suing a water hippo to cut down the amount of water used in the cistern?

Mobile phone............................ 50
PAYG?

Telephone (land line)................... 25
Satellite/Cable TV...................... 17
Internet Services....................... 0
Is this combined in a package?

Groceries etc. ......................... 250
How many is this for? Have you moved down a brand (shops own)? Have a look at the old style board for mealplans to help with budgeting and making a shopping list.

Clothing................................ 25
Can this be cut down?

Petrol/diesel........................... 20
Road tax................................ 10
Car Insurance........................... 25
Doesn't seem to get used much - do you need a car?

Car maintenance (including MOT)......... 0
You should have something for this if you have a car, even just averaging last years bill

Buildings insurance..................... 20
Contents insurance...................... 25
Life assurance ......................... 25
Again, i'd look at the comparison sites to see if you are getting the best deal (uswitch, moneysupermarket)

Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Nothing for any of these?

As well as moving your balances, you may be able to get a 0% credit card. Virgin are offerring 16 months at 0% - 3% min payment 1st month then £25 min thereafter.

You may also get offers from your existing cards and as an existing customer, this shouldn't require a credit check. It is often better to have the card with a nil balance before transferring though. You can usually have about 3 credit checks in a 6 month period before your credit score is affected.

RAS

Hi

A few things to get you going

You have nothing in for presents, holidays, entertainment and medical. Do you not ever have any of these?

if you have £85K secured loan, have you spent a lot on the hosue, or do you have vast quantities of stuff you have bought that could be sold on amazon, e-bay or at car boot sales?

Do you really need the car?

Can the missus work extra hours-you have no childcare listed so I assume they are both at school?

Depending on the age of the children, you can cut back the food bill to £150-200 permonth.

I suspect that actually you have been spending quite a lot, so you both need to keep strict spending diaries, sign up to £10 per week challenges and learn how to use the freebies, clicks and survey sites. ALso sign up to www.freecycle.org if you are no already memebers.

Davet_2

Thankyou for replying

Unfortunately I have tried applying for a new lower rate card but I got turned down. all the other cards are pretty much upto their limits. I can just afford to pay all the bills but this leaves no money for food, so this goes on a c/c. I est costs for food we probably spend less than the £250 i put on it is between £150-£250 p/month I would say. I was going off what CCCS put on for food.
Do you think it is wise asking current c/cards for lower rates? I have 2 barclaycards (one was barclaycard, one was goldfish) that i wanted to put now onto one account since they bought out goldfish, i rang customer services, in India, and the reply I got was you have to pay the amount on the statements, I really dont think they knew what I was getting at, If only I could deal with someone that is not reading from a script. I do know barclaycard offer 6.9% until paid in full and thought I could try doing that after transferring all to one account if possible. Any ideas or numbers to help me with barclaycard.
Thanks

Davet_2

Just some more info

I have 2 kids - 2 years and one at 4 months.

My wife is on maternity that is why things are especially difficult right now, she is due back in feb, hopefully when she goes back money will be better. She cant return just yet as I have a lot of work commitments until end of Jan, she works when i return home normally.

I spent a lot of money I know, I did have a gambling problem which hopefully now I am over, I had stopped for a year but fell back into it for a period this year and lost another 2k. Have now stopped again and cancelled all my accounts with online gaming sites.

RAS

Hi

Well done for tackling the problem. You might want to join this thread http://forums.moneysavingexpert.com/showthread.html?t=1090463, where some of our members who have had similiar problems help each other out.

GeorgeUK

Sorry CTN - that is classed as a spam post. You're not supposed to give commercial links unless you have permission from the board administrators.

To "write off" unsecured debts, you are probably referring to requesting copies of the credit agreement (cost £1), for which there are plenty of template letters available on this site.