Help..I Want To Be A Debt Free Wannabe

HopeTRMD

Hello,

You have nothing to say sorry for. Thank you for your bluntness. I have been living without too much analysis for years; that is what has got me into this situation.

I guess I find it a bit strange and daunting because, things are just the way they are and I have been robbing Peter to pay Paul to maintain them……just living, at least I thought I was.

Anyway here it goes....
My Gas direct debit went up from £43 to £50 with the recent price hike.
My recent gas January statement showed my account to be £73 in debit. This was based on an estimated reading.

The estimation was a bit out, not in my favour. But not sure if I should give my current reading as I don’t want any unknown adjustments? Plus I think with spring around the corner the bill will square up. But Yes I guess I am a bit of a heat freak, I just cannot function when I’m cold……I have introduced ing more cost saving tips at home and I actually felt ok with my £73 debit. This is the best it has ever been over winter. So I am determined to keep it up.

Re satellite I split up the cost as the SOA required, but my current provider for landline phone, tv, cable internet is all in one and works out at £35 package I add about £5+ on calls. Is that not reasonable for all 3, not sure if I would gain much more by splitting up my services?

My son has health issues which he sees specialists for under my health insurance at work. The excess for the cover is £200 annually for us.
The rest: I wear contact lenses and prescription glasses, non NHS supplements for my son and alternative anti depressant remedies for me (sorry to throw that in!) I have not been to the dentist in years just to avoid the expense…oh dear!

My grocery bill is a juggling act, but both of us have allergies and intolerances and the costs are higher for even the basics. I do try and cut back and will continue to...I'll check out the forums.

The car insurance acttually includes AA cover it works out at £10 for AA and £40 is for the insurance… That was the best deal I could find and is not up for renewal until Dec 09!

My other insurance is a recent addition; it is unemployment insurance providing £1000 income cover… like that’s gonna cover it but better than nothing!

Gifts.. has been one of my downfalls and this has been for close family! I thought this is an excellent amount, but u obviously do not agree. Compared to where I was (you do not want to know!) I have come 0 to zero with this one!!
I have cut adults out of the equation (apart from the occasional token gesture!) and now limit to kids only. I will continue to fight this demon. Thank you for further highlighting this to me.

Now my mobile is my close companion. I will literally have to come back home if I left it! I started to investigate the tariff options, even got my pac number But got distracted from this by other things that have gone on recently. My Pac number expires today? What does that mean? Can I get another pac straight away? Anyway I will follow this up to reduce my bill.

My clothes shoppaholic days have been over for ages. I already don’t buy clothes for myself anymore. But CAB advised that I should include some for me and my son
(seasonal wear, uniform, kit, trainers ,shoes (he goes through them !!! ) Is £30 to much? Will my creditors not accept this?

I do a lot of commuting to visit my elderly mum and run any errands. That kind of takes most of the chunk of the fuel cost. For me my car is a necessity.

Other child related costs include lunch box school meals, work meals (£50 on my CAB form for this) and £40 for school activities (swimming /and school contributions.

I was aware and CAB confirmed that Bankruptcy is not available to me due to my profession.:eek:

Thank you again for the advice. You took the time to look at my situation and for that I am grateful.

It makes me think that much deeper which can only be a good thing...


Hope
To Reach My Destiny
x

elsie52

Hi Hope TRMD

Well done for posting and taking the first steps to being DEBT FREE !!!!.:beer:

We are with Payplan, and have been for just over a year. Our experience has been nothing but good, and for the first time we have money for everything, Bills, Groceries, and life's emergencies. Our debts are being paid regularly and the amount is going down. Nothing is bought on credit, only cash and its a good feeling. Don't get me wrong, its scary, and sometimes it hits me that we still have 3 years to go. But what would have been the alternative??..:eek::eek:. So its onwards and upwards......Good luck to you, speak to either CCCS or Payplan, and they will more than likely be able to help you. Don't worry, Panic or anything else....it will get sorted.:T:T

TurnaroundSue

Hi :hello: and welcome to the boards. I would say that it would be a good a idea to start a spending diary. Write everything down, and I mean everything, from that bar of chocolate to those pair of shoes. This will help you to see where you money is going every month and will help you cut out those unnecessary spends. Martin's tantra (not sure if that is the right word) is to say to yourself..... Do I need this or do I want this? Ask yourself that question with each time you spend and you will soon be aware how little you need and how much you just want.

If you are happy with your phone why don't you get a sim only. My ds has a vodafone sim only for £20 per month and for that he gets 600 minutes and unlimited texts - for £15 my dd gets 150 minutes and 1000 texts. Also for anything you purchase go through a site called www.quidco.com . It is a cashback site and will give you money for buying things that you were going to buy anyway. In the last 8 months we have made £400 going through quidco and with the sim only contract we had £90 for each of them (still pending) so really one of the sims was practically for free!

I notice also that you mention that your other child related expenses includes work meals - do you take your own or is this what you allocate to buy something from the shop with? If not, then you really must start taking your own food from home. This will save you a fortune and also the same with your ds.

Once again, well done for posting and reaching your lbm - you have done the hardest bit and even though it will be a real challenge to clear your debt, with the support and help from the wonderful peeps on this site, your grit and determination it wont be too long until you will start seeing your debt reducing and you getting your life back under control.;)

Good luck,

sugarpants_2

Good luck with all your debts hun. Youve done well to go to CAB. I hope yo manage to get things sorted asap.

Tixy

Hello Hope :hello:

Just wanted to say good luck. I too hope your reach your destiny! Sorry I can't offer specific advice on the DMP, from reading other people's threads some people manage very well on self managed DMPs, other people say that their creditors listened better to CCCS/Payplan. I expect it partly depends on how well you can manage the creditors attitudes and abuse. If you're the sort of person who can be very firm and explain yourself well in a professional manner in letters you may well be fine on your own. (Never talk to creditors by phone!). I'm guessing if bankruptcy isn't an option you may be something like an accountant and used to writing business letters.

Re the mobile - I'm like you my phone is welded to me, my constant companion and I have to say I'd be very pleased if my bill was only £35.

Only extra comment I have on your SOA is just to check you are getting your 25% Council tax reduction?

Good luck
Tixy

MissShoes

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 is this with the singleadult discount?
Electricity............................. 35this seems high
Gas..................................... 50 ditto
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 35 is this the cheapest it can be?
TV Licence.............................. 12
Satellite/Cable TV...................... 10 get rid, use freeview
Internet Services....................... 10
Groceries etc. ......................... 260 you could get this right down, more than halve it
Clothing................................ 30
Petrol/diesel........................... 120 this is high- car share/public transport/walking?
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

Hi HTRMD and welcome! I've put my thoughts in red but I'm sure mroe people will see things I've missed. I think the gas and electricity you can massively reduce and the groceries you can mero than halve- check out the o/s board for tips and ideas- maybe doing a weekly/monthly food planner and dropping down a brand?

I'll keep popping in to see how you're getting on- good luck!!!

Love Miss Shoes xx :T

HopeTRMD

Hello…. Thanks to all your advice … I have been posting on the DMP thread!!
They together with you guys encouraged me to take action and call.
I felt totally strained in just facing it but I did…

I spoke with Payplan who took some initial details… they are going to call me on Wednesday for a full interview.
I also completed the CSCS online debt remedy!!! which recommended an IVA /a DMP. I opted for 9 years and 8 months of DMP. The docs are on there way to me…

Elsie52, TurnaroundSue, Sugarpants, Tixy & MissShoes…big thanks for the hello and SOA review and advice.
Do I need this or do I want this? Is a good one!
My council tax unfortunately already has the 25% allowance deducted and I do indeed take my own lunch to work, the budget is for these specific items.

Following my call on Wed on with Payplan I hopefully will be in a position on which DMP to go with..:eek:

Keep you posted.
Hope

milliejon

Hi HopeTRMD

I just wanted to say hello, and good luck on your journey. I'm on a self managed DMP using the National Debtline for template letters and advice etc. Whatever way you decide to go will be good - the important thing is that you'd had your lightbulb moment and you want to do something about it.

You sound very positive, and this will help you. Good luck!

HopeTRMD

Hi Milliejon, Thanks alot for the welcome…..

My LBM will be my saving grace....its started already.

Keep you posted.

Hope
x