SOA and Diary of a Former Debt Denier

goodeys

Hi Folks,

Well, I have finally realised that we really are up the creek without a paddle. We are getting harrassed by, doorstop collectors, telephone calls (don't answer the phone anymore as I am too scared) and by post. I know that somethings needs to be done but I just don't know what. To be honest I don't even know the exact amounts that we owe as for some of the debts we never get anything other than phone calls which I will not answer.

Please can someone help me sort this out, I really don;t know where to start. We had debt before the birth of my son last feb but it was always paid on time, then I was sick for about 6 months afterwards and my husband had to give up work so we just let the debts stack up and ignored everything as we didn;t have any money to our name.

Here is the SOA (some of the amounts are guesstimates as the companies haven't given us any balances for months and I sure that loads of charges and interest may have been added)

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1 (10 Months old)
Number of cars owned.................... 2 (one is off the road so no cost)
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 2000
Benefits................................ 261
Other income............................ 0
Total monthly income.................... 2261
Monthly Expense Details
Mortgage................................ 980 (880 PM but we owe 1800 and have agreed to pay an extra £100 per month towards the arrears, variable so could go up or down)
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 53 (owe £250 and this amount is included in the monthly repayments)
Gas..................................... 50 (owe £100 and this is included in months repayments)
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 35
Mobile phone............................ 47 (haven't paid this month so cut off and in an 18month contract which I cannot get out of and will not let me lower the plan)
TV Licence.............................. 11 (DD)
Satellite/Cable TV...................... 20 (Sky, Do not want to give up Sky1 its our only entertainment)
Internet Services....................... 0
Groceries etc. ......................... 400 (Trying to cut by £100 this month)
Clothing................................ 10 (For my ever growing son)
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 10
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20 (£15 CTF)
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0 (Missed a payment so therefore they cancelled)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 (estimate just buy as I need to)
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2001

Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 187000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 139000...(980)......0
Total secured debts........... 139000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Private Hospitals..............1200......0.........0 (Need to sort out some repayment)
Capital One Card...............131.81....7.........0 (Monthly DD)
Sky Card.......................557.84....17........0 (Monthly DD)
Littlewoods....................2320......0.........0 (Not paying them anything currently)
Natwest Overdraft..............1678......0.........0 (Not paying them anything currently)

Natwest Loan...................3400......0.........0 (Not paying them anything currently should be £202 pm)

BT.............................388.......20........0 (Morrcroft Collections come to our door for this)
HFC............................1242......0.........0 ((Not paying them anything currently)
HSBC Gold CC...................4100......0.........0 (Not paying them anything currently should be £140)
HSBC Bank......................8585......40........0 Arranged repayment
HSBC CC........................7400......20........0 Arranged repayment
Total unsecured debts..........31002.65..104.......-

Monthly Budget Summary
Total monthly income.................... 2,261
Expenses (including secured debts)...... 2,001
Available for debt repayments........... 260
Monthly UNsecured debt repayments....... 104
Amount left after debt repayments....... 156
Personal Balance Sheet Summary
Total assets (things you own)........... 187,000
Total Secured debt...................... -139,000
Total Unsecured debt.................... -31,002.65
Net Assets.............................. 16,997.35
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.[/font

Please can someone help me, how to I try to sort this out. I have written to a few in the past and I don;t seem to hear back from them or they want to know my expenditure which I send them and then I never hear back.

Please please help. I want the calls and worry to stop.

~Beanie~

Other than your groceries bill which I reckon you could halve at least, I don't see a great deal that you can cut down on.

You really need to speak to CCCS or PayPlan, who can advise you of the best course of action for you.

CCCS - http://www.cccs.co.uk/ - 0800 138 1111

PayPlan - http://www.payplan.com/ - 0800 917 7823

Good luck x

goodeys

I suppose that my first step has to be to find out how much I owe all of these little !!!!!!s. Is there a letter template on here that I can use? After that then I guess that I write again and offer them a payment? Or should I start paying them the payment now, and really how much should I be offering each one (obviously cannot afford the minimum)?

Any ideas on this would be fab and I would be forever in your debt, I have so much already a but more cannot hurt!

Sea78

Hi, I would agree that you really need to contact CCCS or Payplan - even if just for advice. They will guide you and help you decide what is the best plan of action really.
Love the term debt denier btw!!

xxx

goodeys

Just a little update on my debt hell.

I have called the National Debtline and they are sending me out a load of gumf and have also advised me that I need to write to all of my creditors and offer them a token payment of £1.00 until my personal circumstances improve. Basically I just need to concentrate on reducing the arrears on my mortgage and keep upto with the forthcoming payments, pay my countil tax on time and stick to paying my gas and elec too.

Feel so much better about it now, of course they can always ingore my please to accept £1 but at least I have a starting point! :T

Supreme_2

Get rid of Sky. You clearly can't actually afford it. Freeview is now a very viable alternative.

goodeys

I know that I should but for the sake of saving £20 per month I refuse to get rid of Sky, I love Sky1 too much. We never go out at all...ever.... as it's too expensive for a babysitter so I really don't think that one little luxury is being too extravagant. Plus I know that we would end up hiring DVDs at £4.00 a pop from Blockbusters. We have already given up booze, fags and takeaways (only since New Year! ha ha) so I can't facing giving up the telly just yet!

Supreme_2

goodeys wrote: »

I know that I should but for the sake of saving £20 per month I refuse to get rid of Sky, I love Sky1 too much. We never go out at all...ever.... as it's too expensive for a babysitter so I really don't think that one little luxury is being too extravagant. Plus I know that we would end up hiring DVDs at £4.00 a pop from Blockbusters. We have already given up booze, fags and takeaways (only since New Year! ha ha) so I can't facing giving up the telly just yet!

You have £30k of debt. £20 a month is a saving you need to make.

I am sorry, but it's obvious. If you weren't in £30k of debt then by all means have Sky, but you are, so lets get sensible here.

Freeview is not that bad, so get rid of Sky and get it.

RAS

Since you have mortgage and other priority debts, you need to sort them aout first, as CCCS suggest.

You also need to stop paying the Trust Fund - nice idea, but what matters most the roof over his head now or a few quid later?

Your grocreies could be cut by £200-300 per month and you need to give up Sky if only for a year.

Since you cannot do a DMP at the moment, you need to

1. Explore the Boost Your Income thread http://www.moneysavingexpert.com/protect/make-money
2. Sign up for www.freecycle.org and stop buying stuff for your son. He will be just as happy in second hand clothes with pre-loved toys and will thank you in spades in later years. You can also get household goods, DVDs, etc for free on there.
3. Go through every one of those accounts and check for PPI and penalty fees. can you claim the PPI? If not you have almost certainly been mis-sold and need to reclaim the payments. Reclaim all those penalty charges as well. OK, it may only reduce your debts but that will help.
4. Get some life assurance urgently. You have a child and a mortgage. Simple term insurance is only going to be £10-12 per month if you do not have pre-exisiting conditions.

goodeys

Many thanks all for your suggestions. I have now compiled a 'TO DO' list so that I can get my !!! moving and also a 'Goals' List

To Do

• Join Freecycle (have signed up today and awaiting reply from moderator)
• Write letter offering token payment (will do today by 13:00)
• Book appointment to print letters as I have no working printer (2pm appointment for computer use at the local Library today)
• Call vodafone again and beg to get out of my contract or lower the payments (complete by 8.1.09)
• Write to Natwest re bank charges financial hardship request statements (by 8.1.09)
• Sort out stuff for eBay (Complete by 8.1.09)
• List all stuff on eBay (Complete by 10.1.09)
• Call DWP re JSA and start looking for a part time job (by 12.01.09)

Goals

• Keep shopping bill to £300 or under each month
• Stop smoking on 9.01.09 as duty frees will have run out
• Call sky and lower package to the bare minimum that includes Sky1 and E4
• Change to a cheaper phone/internet deal
• Sort out Life Assurance (will be dear tho me thinks as I have a history now of mental health issues PND and my husband has had cancer)

I am sure that I will add to these but this is where i have got so far this morning.

Any other suggestion welcome (apart from cancelling Sky!) :rotfl:

Kimonokawaii

goodeys wrote: »

I know that I should but for the sake of saving £20 per month I refuse to get rid of Sky, I love Sky1 too much. We never go out at all...ever.... as it's too expensive for a babysitter so I really don't think that one little luxury is being too extravagant. Plus I know that we would end up hiring DVDs at £4.00 a pop from Blockbusters. We have already given up booze, fags and takeaways (only since New Year! ha ha) so I can't facing giving up the telly just yet!

Get rid!!!!!!!!! :money: Martin would shout at you!!!!!! Luxuries are out.