Help & Advice Needed Please

Need_to_get_straight

I can't put things off any longer and my outgoings are more then my incomings by about £200 a month. I am not in any areears currently but due to unexpected repairs and a large hike in CC rates I can't see how I can make all my payments from March onwards. At the moment there's little chance of me getting a loan at a decent rate so that I can pay the CC debt off - and believe me I would never want another credit card, I've learned my lesson the hard way!

I have spoken with the National Debtline and it looks like my best option is to go for a Debt Management Plan.

I can afford quite large payments to my creditors, probably about three quarters of what I should be paying them. I'm just concerned that if I go down this route where does it leave me if there are any unexpected expenses? I'm thinking of things like car repairs, my car is already quite old and I obviously can't afford to buy a newer one. Plus things like the boiler breaking down etc.

Also, what are people's experiences of creditors accepting lower payments, do they tend to challenge them as a matter of course and do they tend to freeze the interest.

Thanks

poorandindenial

Hi there ntsg

The best place to start is to complete a statement of affairs:

www.makesenseofcards.com - has a handy calculator to help you

You need to include provision for things such as car maintenance, birthday/xmas presents and entertainment and then you are left with a realistic look at what you have (post it on here and we can probably help you trim back further)

Everyone has a slightly different experience with creditors (and each recditor is different in their approach) but you may well have some success getting interest frozen etc. If you want professional support to do this then contact one of these orgs

http://www.moneysavingexpert.com/loans/debt-help-plan#help

they won't charge you a penny (NEVER pay for this sort of help) and they have fairly strict allowances for all the spend categories so that you HAVE to have provision for certain things (and are restricted on provision for other things)

There is a DMP mutual support thread (use the search if it has dropped off the front page) and everyone on there has been through, is currently in or is thinking about a DMP, there will be loads of experience that people have shared in there as well as people replying to this thread.

All the best taking control back of your debt

Naomim

hi and welcome,

You've come to the right place. Befor you jump into thinking about a DMP, why don't you post up an SOA (statement of affairs) so we can have a look through and see if there isn't a way through this.

The link is HERE

I have found that by doing this, organising my DD's and being a bit frugal, I have managed to free up around £200 a month.

You'd be amazed at where you spend the pennies

Naomi x

Need_to_get_straight

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2373
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2373
Monthly Expense Details
Mortgage................................ 400
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 10
Satellite/Cable TV...................... 35
Internet Services....................... 0
Groceries etc. ......................... 125
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 1110

Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 127000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(400)......6
Total secured & HP debts...... 110000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Cards...................38867.....929.......35
LOANS..........................14200.....655.......5.9
Total unsecured debts..........53067.....1584......-

Monthly Budget Summary
Total monthly income.................... 2,373
Expenses (including HP & secured debts). 1,110
Available for debt repayments........... 1,263
Monthly UNsecured debt repayments....... 1,584
Amount short for making debt repayments. -321
Personal Balance Sheet Summary
Total assets (things you own)........... 127,000
Total HP & Secured debt................. -110,000
Total Unsecured debt.................... -53,067
Net Assets.............................. -36,067
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

I've summed all my CC debts into one and shown the highest APR applied.

Need_to_get_straight

One more thing...

I need to open a basic bank account - any recommendations!

bank_of_slate

Need_to_get_straight wrote: »

One more thing...

I need to open a basic bank account - any recommendations!

Make sure you open one at a bank that is not linked to any of the banks that you owe money to
...Linda xx

Need_to_get_straight

bank_of_slate wrote: »

Make sure you open one at a bank that is not linked to any of the banks that you owe money to
...Linda xx

Thanks, I've just found the thread on basic bank accounts!

CLAPTON

does your partner have any income?

Need_to_get_straight

CLAPTON wrote: »

does your partner have any income?

He does and has only a small loan. He can help toa certain extent and is aware of my problem but I am concious that it is my debt and I need to pay it off. I reckon I can afford around £1,100 a month to pay creditors and I am not trying to avoid paying it's just I can't afford to pay everybody all at once at the moment!!

Naomim

Need_to_get_straight wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2373
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2373
Monthly Expense Details
Mortgage................................ 400
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20
Mobile phone............................ 35Can you cut this down. Go down a package if contract or go on Payg
TV Licence.............................. 10More like £12
Satellite/Cable TV...................... 35Cut this out and stick to freeview for now
Internet Services....................... 0
Groceries etc. ......................... 125
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30Going to have to go au naturelle for a while!
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 1110

Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 127000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(400)......6
Total secured & HP debts...... 110000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Cards...................38867.....929.......35
LOANS..........................14200.....655.......5.9
Total unsecured debts..........53067.....1584......-

Monthly Budget Summary
Total monthly income.................... 2,373
Expenses (including HP & secured debts). 1,110
Available for debt repayments........... 1,263
Monthly UNsecured debt repayments....... 1,584
Amount short for making debt repayments. -321
Personal Balance Sheet Summary
Total assets (things you own)........... 127,000
Total HP & Secured debt................. -110,000
Total Unsecured debt.................... -53,067
Net Assets.............................. -36,067
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

I've summed all my CC debts into one and shown the highest APR applied.

Hi sorry for the very delayed response, I lost you there for a while To be honest it looks like there isn't too much you can cut back on. The total you have down for debt repayments.. is that just the minimum you need to make?

Does your job give you the opportunity to have a 2nd job or is there anyway you can make some money from selling bits, ebay, amazon, music magpie, mystery shopping?

Put your credit cards and loans into the snowball calaculator with the correct APR's and see what that says too.
http://www.whatsthecost.com/snowball.aspx

HTH

Naomi x

RAS

it would help to see those credit card debts in detail rather than as a lump sum.

Can you list them all with Aprs minimum payments and maximum limits?

Do you have any PPI on any of these debts?

Have you been charged for late payments etc on any of them in the last 6 years.

reclaim now.