Help..I Want To Be A Debt Free Wannabe

HopeTRMD

Hello Everyone,

I am sooooo nervous to send this post; this (talking about IT) together with my visit to the CAB is a major breakthrough for me...
I have recently taken my head out of the sand, for where it was deeply rooted it for the past 8 years!!! I have no life, just debts and bills. The fact is I owe over £55k in unsecured debts and was slowly dying in all aspects of my life from the shame and stain of it all. :embarasse
I finally, finally took the step to face it and went to the CAB. I now have a financial statement prepared. They advised that I should send letters to all my creditors (once I get a new non related current account opened) and correspond with them to take the pro rated reduced payments. For which I should set up individual standing orders for (10 in total!:eek: ) under my new current account.
CAB said I should feel free to come back for any further assistance during the process.

I can do this, I have no problem with this, and I can correspond and manage this. My questions are is it ok to manage this debt management plan alone (with the CAB alongside) or is it best for me to instead use Payplan, for which they gave me the leaflet for.
What about if they all don't accept the reduced payments? Is there any more clout given if Payplan are involved, in accepting my initial offer?
Am I viewed more favorably on my own than via a DMP,is there any different impact to my credit rating?
How do I know what my debt free date will be?
Can I involve Payplan at any stage or if you start alone you cannot engage them?
Sorry for the deluge of questions, my head is all over the place.
Time is of the essence because 10 deeply irate creditors :mad: will be a nightmare. I already faced 3+ weeks delay from my initial visit to CAB to my SOA interview so I don't want to take any more time in getting my offer out to my creditors. I am not sure if Payplan will add anything more to my situation. Plus the possible time in initiating them ....weeks (???) might just push me and my creditors over the edge.

Funny, that although I am at this early stage of seeing the light and taking some action, I feel strangely empowered and want to now press ahead.

But I just don't want to make any wrong moves at this rather crucial stage.

Appreciate any advice from you kind people, as again I want to join the debt free wannabe gang.
Can I?

Thanks in advance.

Hope To Reach My Destiny
xx


"Proud to be dealing with my debts"

silvadebtfree

welcome! i cant help you with practical advice as i'm new myself lol, but the people on here are great so i'm sure someone can. It's weird isn't it...once you face up to it you kind of get a bit obsessed lol

xx

Blackruby

Congratulations at taking this step, Hope, soon enough there will be people along who have much more knowledge than I about whether you can manage this yourself or you should involve Payplan, but maybe while you are waiting you could use the SOA calculator linked on this site and post it, then people can help you cut back on your outgoing to free up some cash to throw at the debts.

But congratulations on have your light bulb moment once again.

bozzy120

I'm fairly new myself so don't really have any advice to give but a huge well done on making the first steps, this is the start to a long challenging road ahead but it will be so, so worth it in the end! I had my LBM at the start of last month and it's so, so rewarding watching my debt come down and knowing all my hard work is paying off.

Best of luck, keep us updated with your progress!

HopeTRMD

Thanks alot for your welcome....
Yes you've got it in one. But its like a door has been opened..and I want to hit it head on.
I must sound rather hyped.... I'll awit the advice calmly.

Hope
x

beanielou

Well done on taking that first step
It is really up to you wether you do it yourself or through Payplan & you could always go to Payplan if you found it difficult dealing with it all yourself.

HopeTRMD

Many thanks all.
I am at the start of a LONG journey and already you guys just responding brings some comfort.

Lou..Good to know that I can change to Payplan if I don't use them on the outset. But should I use them from the outset?
I'll post my SOA later.

Hope
x

hypno06

Hi, and welcome.

There is a DMP mutual supporters thread on this board. I am not on a DMP so don't know the best way forward, because I have never been there, but those on that thread will have been there and done that, even if they still can't afford the t-shirt, so will be really well placed to answer your questions.

Some on there do their DMPs via payplan, CCCS etc, others do them alone. From what I gather, the National debtline website is helpful for those that do it themselves......might be worth you having a look at that site too.

Good luck, whichever way you do things - half the battle is taking control, and it seems as though you are ready to do that!

savingholmes

Hello and welcome - love your username and what it means.

Well done on the steps you have already taken. As well as Payplan there is also CCCS - they have an on-line debt remedy tool you can use if you can't get an appointment soon enough. While you are waiting for those things you could still set up your non-related account as you will need that whoever you go with.

Some people seem to prefer CCCS but I'm not on dmp so can't advise on that directly. There is a dmp support thread where you could perhaps ask questions you could also use the - ask a cccs counsellor a question thread at the top of the DFW board.

Finally - if you want to let us know your true state of affairs - and potentially offer some advice (the good, the bad and the ugly) then you could use the website makesenseofcards and use their soa calculator - you then fill in all your info and be extremely brave (I've done it) and reformat it for mse and copy and paste it on here. It helps us when everyone does in the same format as it is easier to see where yours differs from the "ideal".

That would be a good place to start. You do need to bear in mind however - that we will encourage you to cut your costs and throw lots of money at your debt. What you submit to your creditors tho should perhaps have a little more fat in it as in future you won't have access to credit for life's little or big emergencies and you will need some kind of savings fund to deal with them.

Hope that helps - good luck and well done for starting!

HopeTRMD

Hello,

Cheers HTRMD….is what I am holding onto!!

Thanks so much for your responses.
I appreciate the pointers…so I will add my question on the DMP thread tomorrow (or is that today!) and hopefully get some advice on the options for this issue.
Here is my SOA (the good, bad and ugly!!)
CAB advised that the entire surplus should be offered to my creditors. No further allowances were made for contingencies??

Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1830
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 80
Total monthly income.................... 1990
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 35
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 260
Clothing................................ 30
Petrol/diesel........................... 120
Road tax................................ 16
Car Insurance........................... 50
Car maintenance (including MOT)......... 16
Car parking............................. 0
Other travel............................ 25
Childcare/nursery....................... 180
Other child related expenses............ 90
Medical (prescriptions, dentist etc).... 35
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 34
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1538

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 400

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................3495......104.......15.9
Credit Card....................2521......64........23.9
Credit Card....................7693......177.......24.93
Loan...........................10000.....250.......17.9
Credit Card....................3382......102.......20.47
Credit Card....................6767......144.......22.9
Credit Card....................6859......145.......19.9
Credit Card....................1332......35........18.9
Credit Card....................9973......290.......15.7
Credit Card....................3062......80........19.9
Total unsecured debts..........55084.....1391......-

Monthly Budget Summary
Total monthly income.................... 1,990
Expenses (including HP & secured debts). 1,538
Available for debt repayments........... 452
Monthly UNsecured debt repayments....... 1,391
Amount short for making debt repayments. -939
Personal Balance Sheet Summary
Total assets (things you own)........... 400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -55,084
Net Assets.............................. -54,684
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.


Look forward to your responses later, later on…..

Hope
x

justruth

HopeTRMD wrote: »

Hello,

Cheers HTRMD….is what I am holding onto!!

Thanks so much for your responses.
I appreciate the pointers…so I will add my question on the DMP thread tomorrow (or is that today!) and hopefully get some advice on the options for this issue.
Here is my SOA (the good, bad and ugly!!)
CAB advised that the entire surplus should be offered to my creditors. No further allowances were made for contingencies??

Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1830
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 80
Total monthly income.................... 1990
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 35
Gas..................................... 50 This is high, are you in arrears? If not are you paying too much through monthly direct debit? Could you become more neregy efficient to cut these bills down.
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 35 Any way of reducing the package down to something more affordable?
TV Licence.............................. 12
Satellite/Cable TV...................... 10 Sorry to be blunt but you cannot afford this, switch to freeview.
Internet Services....................... 10
Groceries etc. ......................... 260 This is really high. WIth careful meal planning etc you could probably halve this! This is for one adult and one child. Check out the OS board for tips.
Clothing................................ 30 Cut down on this for the immediate future.
Petrol/diesel........................... 120Any way to cut this? Do you really need a car?
Road tax................................ 16
Car Insurance........................... 50 This is really high, when is it up for renewal?
Car maintenance (including MOT)......... 16
Car parking............................. 0
Other travel............................ 25
Childcare/nursery....................... 180
Other child related expenses............ 90 What are these?
Medical (prescriptions, dentist etc).... 35 Who are these for?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 34 What other insurance?
Presents (birthday, christmas etc)...... 25 Sorry to be blunt again but you really cant afford this either. Only buy for really close family.
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1538

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 400

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................3495......104.......15.9
Credit Card....................2521......64........23.9
Credit Card....................7693......177.......24.93
Loan...........................10000.....250.......17.9
Credit Card....................3382......102.......20.47
Credit Card....................6767......144.......22.9
Credit Card....................6859......145.......19.9
Credit Card....................1332......35........18.9
Credit Card....................9973......290.......15.7
Credit Card....................3062......80........19.9
Total unsecured debts..........55084.....1391......-

Monthly Budget Summary
Total monthly income.................... 1,990
Expenses (including HP & secured debts). 1,538
Available for debt repayments........... 452
Monthly UNsecured debt repayments....... 1,391
Amount short for making debt repayments. -939
Personal Balance Sheet Summary
Total assets (things you own)........... 400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -55,084
Net Assets.............................. -54,684
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.


Look forward to your responses later, later on…..

Hope
x

I'm sorry I can't be more help especially on the DMP front but I do congratulate you on tackling your debt.

Did the CAB offer any advice regarding bankruptcy? I only ask as you have very little in the way of assets.