What now ? CCS, Debt and House Sold... what do I do ? (now with SOA)

Needofhelp_2

Right... 6 months ago I split with my wife etc moved out, and I got lumped with 90% of the debt etc.

Was living with nothing, well less than nothing.

But now, my house has sold, (hand keys over on Wed) and as advised via the CCS I stopped paying my CCs and debts and made token payments.

I owe about 25k ish and a student loan has just kicked in due to my COL rise at work.

I should get about 8k from the sale of the house.

What do I do now, should I speak to the CCS about who to pay what, or just split the 8k between all the people I owe and start making payments, even tho my credit history is shafted now...

Or do I pay the arrears and work on a deal with my creditors

Nargleblast

You could sit down and work out pro rata payments for your creditors i.e. each one gets the same percentage of the £8000 as the percentage of your total debt. EG If you owe one creditor £5000, that is 20% of your total debt so you would give them £1600, which is 20% of the money you have available. Then you would have to negotiate a deal with all your creditors for the rest. Alternatively, if you have been getting debt counselling advice already, I would contact them again and discuss it. Doing your own debt repayment arrangements only works if you are fully clued up in matters financial - for one thing, if we all were that clued up we wouldn't be in debt in the first place. Then, as you have recently been through tough times I would argue the last thing you need is the hassle of dealing with creditors on your own - the more professional help you can get the better.

Needofhelp_2

I am going to use the CCCS to sort it out, its just they are closed till Monday, and want to get my teeth into it today.

Had a play on the website, about starting a DMP but till the 8k comes through and off my debts I am abit lost still

Nargleblast

You can use this weekend to start collecting together info on your incomings and outgoings, try filling out the template on CCCS's website re a debt management plan. You could get a DMP up and running quite quickly, then when your £8000 came through you could renegotiate your DMP. The figures you agree on a DMP are not set in stone, they can be rejigged at any time if there are changes in your circumstances.

CLAPTON

Really need to see your SOA to give proper advice.

Once you make token payments and your lenders default your a/cs you will be unable to get any credit... so you need to consider things like how you pay deposits on flats, repair the car etc

so I would suggest you hold off paying that 8k for a while.

If you have no realistic prospect of paying the debts then holding onto the money for six months or so may give you the opportunity to make full and final offers to your creditors

post up an SOA

Needofhelp_2

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1562
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1562

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 13
Mobile phone............................ 55
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 25
Car Insurance........................... 25
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 36
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Child Maintencne........................ 200
Total monthly expenses.................. 1309


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Egg Visa.......................6050......123.......0
Egg Money......................1285......27........0
Student Loan Company...........4000......96........0
Barclays Over Draft............1400......15........0
Barclay Card...................2290......55........0
Allience and Leciter...........5000......108.......0
Halifax........................6041......120.......0
Virgin Card....................4580......90........0
Total unsecured debts..........30646.....634.......-


Monthly Budget Summary
Total monthly income.................... 1,562
Expenses (including HP & secured debts). 1,309
Available for debt repayments........... 253
Monthly UNsecured debt repayments....... 634
Amount short for making debt repayments. -381

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,646
Net Assets.............................. -30,646

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Needofhelp_2

I think the above is about right....

Currently not paying any of the debt, bar token payments of £10 to my creditors, bar the student loan company, who I have just found out defaulted me, (I forgot to tell them I moved and had not had any male sent on)

I am trying to get a flat mate to half the bills... but not got one yet

Needofhelp_2

Mobile phone is high, as part of the separation agreement, I pay for both mobiles.

I am on Tmobile 50% discount for life, and use it for calling the kids etc and she does the same.

Same for life insurance, I pay it incase anything happens to her. (I do not trust her to keep one in place, so I need to make sure kids do ok out of it)

Needofhelp_2

anybody above to give any advice ??

Nargleblast

Council Tax - as the only adult in the house are you claiming the single occupier discount from the council?

Mobile phone - are you tied into the contract or could you go Pay as you go? If not, have you tried cutting down on calls and texting instead as it's cheaper?

Clothing - do you need to include a sum for clothing? Will the clothes you already have last for a year or two without buying new?

Just a few suggestions to be going on with.

Needofhelp_2

mobile phone is for two, both on half price line rental till December

I pay hers so the kids can call and keep in touch, hence no excuse for no contact

mine is only 18 out of that total.. yes she is on a high tarriff...

I use my phone for work, and freelance work so need a decent amount of calls or texts