Some advice please...

shellsuit

Hi Linda, yes, Steve can get his new quote at the end of Feb (which will almost halve that payment) because of his no claims bonus or something (can you tell I don't drive?! lol)

fatbelly

Hi Shell

I've had a play around with your figures. With him bringing in 300 pw and you 400 pm, and tax credits (around 10 pw?) and child benefit (28.40 pw) i think your total income is going to be around 1850.

Ignoring creditors for the moment, allowing you a bit more for household expenses (smoking's in there somewhere) and filling in the gaps on road tax and petrol, I think your reasonable expenditure is around 1400.

That's 450 available, but your contractual amounts total 688 because all your forms of borrowing are high interest (enormously high? you are paying over 8k per year on total debts of 20k!).

A consolidation loan might work here but it would need to be at a low interest rate. And it sounds like you do not have a very good credit rating.

I'm thinking CCCS for a debt management plan. Interest should get frozen eventually and 20k could then get paid off in around 4 years, maybe less if your salary increases again.

How does that sound?

(edit) urgh - just noticed you have been getting 40 pw tax credits - that does sound like an overpayment. Doesn't change the overall advice but they'll be clawing it back, I suspect.

shellsuit

Hi FB, thanks for the advice, I've just been looking on the CCCS site and it looks as if it could be promising.

When they say they will arrange for you to see a counsillor (sp?), what does this entail?

Do you speak to them on the phone, do you visit an office or do they come to see you in your own home?

I tried the bank for a consolodation loan but the interest rates were ridiculous (for example, to put the 2 loans together, we would have only been something like £20 a month better off plus back to 5 years again to pay them off instead of 2 years and 3.5 years)

Glittermonkey

I had a similar problem with working and childcare. I had to try and fit my work round the ex but he doesnt do normal hours so it was hard.

Then when my child started school i too would of had problems again, so i've started working night shifts.

It isnt ideal as i still have my baby at home until she goes to nursery so catching up on sleep is hard but my ex does help out by looking after her so i can sleep.

Now i bring in 1000k more per month than what i did only working part time, i dont pay a fortune on childcare and she spends more time with her dad, so suits us all.

fatbelly

shellnsteve wrote:

I've just been looking on the CCCS site and it looks as if it could be promising. When they say they will arrange for you to see a counsillor (sp?), what does this entail? Do you speak to them on the phone, do you visit an office or do they come to see you in your own home?

CCCS do all their business by phone and post. If you have a browse around this forum, they are pretty well thought of.

Once or twice I've got the impression that they have suggested IVAs a little too enthusiastically. If you get into that sort of conversation with them, ask what the advantages are for you over bankruptcy.

Definitely worth a call.

Conor_3

Have you informed Tax Credits people about your drop in income?

severussnape

hi shell

we were overpaid by tax credits two years ago what they did was stop any payments until we had paid back the amount we owed.i think as it is their fault they can't demand it all back, but if you are going to go for a DMP you realy should exclude any payments from the IR as you won't kno9w when you are going to get them. make sure you tell cccs about this.

is there no way of getting your meter changed back.

severussnape

sorry for the errors in spelling in last post

just read the response about cccs offering IVAs too much. another company is payplan we are doing our DMP through them.they weren't so keen on IVAs as you could have to remortgage you house for the equity.

if you don't like what cccs say you could try them instead

Conor_3

£150-£200 A QUARTER ON ELECTRIC? What you doing, running the streetlamp outside your house too? My quarterly bill for electric has never exceeded £55. We have kids (alot of washing) and an electric cooker.

Smoking 20 a day is £35 a week, £140 a month, £1680 a year so if you want an incentive to keep off the habit, there it is.

You can get broadband for £15 a month saving you £120 a year.

mintymoneysaver

Do you have to wait till Feb to swap your car insurance? It does seem really high...