SOA - MessyMum :(

MessyMum

Hi,

Posted a couple of times now and only just done my SOA.
I have spoken to CCCS and also have a phone interview with PayPlan tomorrow.
I am so worried about what to do, I know i have taken the first step in admiting the debt but I am just so worried that we are going to lose our house.

CCCS have advised us just to make token £1 payments to our unsecured debts until our situation has changed, they didn't explain though what happens when we do this, will will get taken to court for the money??

I have applied for a part time job with sainsburys to help up our income but haven't heard anything yet. Christmas is cancelled, i managed to get a few bits for our little boy earlier in the year but have told everyone else not to expect pressies from us.

I am just worried sick

Monthly Income Details[/b]
Monthly income after tax................ 728
Partners monthly income after tax....... 1165
Benefits................................ 122
Other income............................ 0
Total monthly income.................... 2015
Monthly Expense Details
Mortgage................................ 722
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 67
Council tax............................. 100
Electricity............................. 75 - Owe Eon £300 for gas & electric so can't change
Gas..................................... 75
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 15
Mobile phone............................ 60 - this is for 2, both locked into contracts for another 12 months
TV Licence.............................. 12
Satellite/Cable TV...................... 17 - can't cancel until Feb 09
Internet Services....................... 20 - can't cancel until Jul 09
Groceries etc. ......................... 240
Clothing................................ 0
Petrol/diesel........................... 347 - this is for 2 cars, both needed for work
Road tax................................ 25
Car Insurance........................... 85 - for 2 cars
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...................... 0
Life assurance ......................... 25 - for 2
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1920

Assets
Cash.................................... 0
House value (Gross)..................... 115000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 118000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 113......(722)......7.33
Total secured debts........... 113.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC - Overdraft...............1400......0.........0
HSBC - Overdraft...............300.......0.........0
HSBC - Personal Loan...........8300......178.......0
Northern Rock - Loan...........10900.....79.5......0
Egg - Credit Card..............800.......30........0
Abbey - Credit Card............2500......67........0
HSBC - Credit Card.............1000......40........0
Total unsecured debts..........25200.....394.5.....-

Monthly Budget Summary
Total monthly income.................... 2,015
Expenses (including secured debts)...... 1,920
Available for debt repayments........... 95
Monthly UNsecured debt repayments....... 394.5
Surplus(deficit if negative)............ -299.5
Personal Balance Sheet Summary
Total assets (things you own)........... 118,000
Total Secured debt...................... -113
Total Unsecured debt.................... -25,200
Net Assets.............................. 92,687
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.[/font]

Oh our mortgage is with Northern Rock, we have the mortgage and an unsecured loan with them so I don't think we would be able to sell the house.

Many thanks for any comments you have

piglet39

Just a quickie - are you not entitled to any tax credits? Family income up to £58K should get something!

Piglet

Uniscots97

So its 3 you are feeding? The first place I'd start is the grocery bill. Get onto the OS board, there's lots of good ideas there. Make sure no take aways, cook from scratch and even pre-prepare things and freeze them. Don't be afraid of yellow stickered items in your supermarket. The next is the fuel bill for the 2 cars, this is really high. I realise its necessary but try and fill up where its cheapest in your area (petrolprices.com), keep your tyres properly inflated (check weekly or twice weekly if you are doing a lot of miles), no sharp braking or acclerating and this should drop your fuel bill by at least 10% if not more. Can either of you not car share with someone from your work? Or if there's someone from you work who normally gets public transport in your area why not see if they want a lift over the colder months, the money they chip in for petrol is money saved by you.
Your gas and electric seem high too, how big is the place you are heating? Check out the Gas and Electricity thread on the OS board, its got lots of good tips (e.g. leaving the oven door open after cooking to let the heat from the oven circulate).

MessyMum

we get about £80 a month child benefit and £42 a month tax credit, i put it in the benifit section (is this right?).

We both live 25 miles away from where we work in opporsite directions no one from either works lives near us.
I was going to look for a new job nearer to home but with the current job situations I don't want to move.
The figures for the Petrol and food are figures that CCCS said to put in, to be honest I think we will get them in for lower than that.

As i said before, we owe EON about £300 on our gas and electric so i think its to help pay off that.

we are really lucky that we get free childcare (family look after our 1 year old) and my MIL buys us nappies every couple of weeks.

TotallyBroke

How much of the £75 of gas and electric is paying off the £300. Ring them and try and negotiate to pay normal amount and a smaller amount on the arrears. Tell them thast cccs have advised that you to only pay £1 but you would prefer to pay a more realistic amount.
Some water bills are paid over 10 months instead of 12. If yours too finishes in february ask if you can have until april to pay it.
Reduce the phone bill. With such huge mobiles you should not be making many calls on the home phone.
Although you are still in contract ring mobile companies and see if they will consider reducing atleast one of the tariffs. Explain you are in difficulties. They may drop one down by £10.
Car insurances are quite high even for two cars. Try a price comparison site now and see if it can be dropped. You also do not have any provision for servicing your cars in your soa and if you are doing those sort of miles then I think you should.

MessyMum

Well, things aren't great but fingers crossed we are on the long slow road to recovery

We spoke to Payplan who say we haven't enough spare cash to go on a DMP, they were really helpful though and are sending us letters to pass on to the creditors to offer token £1 payments until things change.
We have opened a new back account (under payplan advice) so our wages will go in and then our mortgage etc can come out of there.

I have applied for a job at our local supermarket its an extra 12 hours a week (currently do 22.5 at my usual job). fingers crossed i'll get it then we should be able to apply for a DMP.

The only thing i'm not clear on is what happens to the creditors in the mean time?? will the balifs be round???

Thanks to all for your advice, its been very helpful and we are looking into changing cars/insurance/mobiles etc

TotallyBroke

MessyMum wrote: »

Hi,

Monthly Income Details[/b]
Monthly income after tax................ 728
Partners monthly income after tax....... 1165
Benefits................................ 122
Other income............................ 0
Total monthly income.................... 2015
Monthly Expense Details
Mortgage................................ 722
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 67
Council tax............................. 100
Electricity............................. 75 - Owe Eon £300 for gas & electric so can't changeHow many months left to pay the £300 arrears?
Gas..................................... 75What is normal amount without the arrears? Put arrears amount and payment into debt section.
Oil..................................... 0
Water rates............................. 35Did you ask them to pay the rest of the year over the next 4 months instead of 2.
Telephone (land line)................... 15
Mobile phone............................ 60 - this is for 2, both locked into contracts for another 12 months Have you phoned them up and asked them to reduce the tariff on these as you are struggling financially
TV Licence.............................. 12
Satellite/Cable TV...................... 17 - can't cancel until Feb 09
Internet Services....................... 20 - can't cancel until Jul 09
Groceries etc. ......................... 240Buy nothing this week apart from bread and milk. Use up everything in your freezer and cupboards. Then meal plan and only buy waht you need for the week.
Clothing................................ 0
Petrol/diesel........................... 347 - this is for 2 cars, both needed for work
Road tax................................ 25
Car Insurance........................... 85 - for 2 cars
Car maintenance (including MOT)......... 0You really need to put something down here so that you start getting used to putting it away each month
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...................... 0
Life assurance ......................... 25 - for 2
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1920

Assets
Cash.................................... 0
House value (Gross)..................... 115000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 118000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 113......(722)......7.33
Total secured debts........... 113.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
HSBC - Overdraft...............1400......0.........0
HSBC - Overdraft...............300.......0.........0
HSBC - Personal Loan...........8300......178.......0
Northern Rock - Loan...........10900.....79.5......0
Egg - Credit Card..............800.......30........0
Abbey - Credit Card............2500......67........0
HSBC - Credit Card.............1000......40........0
Total unsecured debts..........25200.....394.5.....-

Monthly Budget Summary
Total monthly income.................... 2,015
Expenses (including secured debts)...... 1,920
Available for debt repayments........... 95
Monthly UNsecured debt repayments....... 394.5
Surplus(deficit if negative)............ -299.5
Personal Balance Sheet Summary
Total assets (things you own)........... 118,000
Total Secured debt...................... -113
Total Unsecured debt.................... -25,200
Net Assets.............................. 92,687
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.[/font]

Oh our mortgage is with Northern Rock, we have the mortgage and an unsecured loan with them so I don't think we would be able to sell the house.

Many thanks for any comments you have

Write to all of these telling them you are speaking with a debt management company. Send them £1 cheque each and cancel all direct debits. This will save £380. So for December you could have £380 plus any saved shopping money.
HSBC - Overdraft...............1400......0.........0 1
HSBC - Overdraft...............300.......0.........0 1
HSBC - Personal Loan...........8300......178.......0 1
Northern Rock - Loan...........10900.....79.5......0 1
Egg - Credit Card..............800.......30........0 1
Abbey - Credit Card............2500......67........0 1
HSBC - Credit Card.............1000......40........0 1

Use that to pay off the gas and electric. This will lower your direct debit with them to add to the saved £380/480. You could pay off egg by Feb 09. You could pay off HSBC by May 09. Abbey by October 09.
With your new job it could be even quicker. You can then (with a better soa) go back to making the regular payments on the loans and putting all spare cash onto the highest interest one.