DMP vs Full & Final settlement and advice on SOA

RAS

Hi

You will not get full and finals if you have been paying the minimums.

You do need to list the APrs for all those debts, then minimums and the maxs for the CCs and the number of paytments outstanding for the loans.

Can you explain why 3 adults and only two incomes?

icecube2009

sammy115 wrote: »

Hi Ice

Even if you borrowed £20k of your inlaws you already have a mortgage and a secured debt. You will then have to find payments to service the debts still outstanding and your inlaws and the secured debt. It is a recipe for disaster.

BB - will do some savings for you. You then need to contact CCS or payplan and start a DMP - maybe in twelve months time or so when you have readjusted the spending and being making regular payments to a DMP you could revisit the situation again.

yeah but if we could pay all the unsecrued debts off by offering F+F's we would just have to pay our mortgage & car loan (car loan for 3 more years) then the £200 (£350 in 3 years) would go to the in laws

icecube2009

RAS wrote: »

Hi

You will not get full and finals if you have been paying the minimums.

You do need to list the APrs for all those debts, then minimums and the maxs for the CCs and the number of paytments outstanding for the loans.

Can you explain why 3 adults and only two incomes?

because my 23 year old son is here & has been unemployed since before christmas, he is trying really hard to find work, but once he does he wants to move in with his GF

icecube2009

RAS wrote: »

Hi

You will not get full and finals if you have been paying the minimums.

so is it not worth stopping paying the minimums now & trying for F&F's in a few months

RAS

I assume your son is signed on? In your situation he needs to contribute that to the household income.

hampsterpoo

Hi welcome to the boards

Older and wiser people will come along and sort your SOA out better than I can
a few things
Groceries etc pop over to the OS board for some tips of cutting down and meal planning
Satellite & cable what do you get for that price, phone internet included ?
Mobile - can you change
You need to post the APRs on your cards and loans to get a fuller truer figure.

Start doing the daily clicks , ebaying stuff to get extra income, boot sales.
£40 a month on clothing sorry that has to stop you can afford it.

As you say you are borrowing from one to pay another, you can borrow and pay off FF but as I see it you have to change your spending habits as well other wise you wont be any better off in the long run.It took me a while to learn that and Im still learning it.Im here for the long run not a fun run :rotfl:

Burlesque_Babe

You may want to ask Fermi to merge the threads

OK - my thoughts in red

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3 who is the 3rd adult? Do they have an income?
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 700
Partners monthly income after tax....... 1350
Benefits................................ 0
Other income............................ 130 is this from the 3rd adult?
Total monthly income.................... 2180

Monthly Expense Details
Mortgage................................ 732 are you locked in? If not, can you change - what is your interest rate?
Secured loan repayments................. 160 APR? call them - when I was paying off my debt, I called and they reduced the APR because I was paying reguarly.
Hire Purchase (HP) repayments........... 44
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 30 )
Gas..................................... 35 )high - look to swap and then start doing weekly meter readings and switch everything off, you'll be shocked at how much you are paying for stuff on standby
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 45 - ouch, this is a lot,if in a contract, call and ask to go on lowest tariff. If not locked in, ditch and go PAYG.
TV Licence.............................. 12
Satellite/Cable TV...................... 30 - swap to Freeview
Internet Services....................... 0
Groceries etc. ......................... 300 - high. Batch cook, cook from scratch, meal plan, ditch takeaways. Have a look on the Old Style board for ways to reduce this.
Clothing................................ 40 - stop buying. At £40 a month you must have wardrobes full. Spend nothing for 6 months unless it's underwear and after that use ebay/Tesco./Asda etc
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 32 - swap - this is high unless you have little no claims. Use the comparison websites and then use Quidco to get cashback. What car do you drive?
Car maintenance (including MOT)......... 10
Car parking............................. 50 - per month? why is it so high?
Other travel............................ 20 - what is this?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14 - swap to a pre-pay prescription if this is all for medication
Pet insurance/vet bills................. 7
Buildings insurance..................... 15)
Contents insurance...................... 15) jointly they are high, again use comparison websites and then use Quidco for cashback.
Life assurance ......................... 30 - if you feel you definitely need it (check the T+C's for exactly what is covered), have a look for a cheaper provider
Other insurance......................... 15 - what is this for?
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0 - you need to add something here
Entertainment........................... 0 - and here
Holiday................................. 0
Emergency fund.......................... 10 - no point in this with debt to be honest
Total monthly expenses.................. 1870


Assets
Cash.................................... 0
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 195000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 166000...(732)......0 Secured Debt.................. 7000.....(160)......0
Hire Purchase (HP) debt ...... 800......(44).......0
Total secured & HP debts...... 173800....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
lloyds card me.................10000.....200.......0
lloyds card dh.................10000.....200.......0
egg loan me....................5000......110.......0
other card dh..................2000......40........0
loan dh........................1000......200.......0
egg card me....................5000......100.......0
Total unsecured debts..........33000.....850.......-


Monthly Budget Summary
Total monthly income.................... 2,180
Expenses (including HP & secured debts). 1,870
Available for debt repayments........... 310
Monthly UNsecured debt repayments....... 850
Amount short for making debt repayments. -540

Personal Balance Sheet Summary
Total assets (things you own)........... 195,000
Total HP & Secured debt................. -173,800
Total Unsecured debt.................... -33,000
Net Assets.............................. -11,000

Hi - you need to add all the APR's for your debts.

There are lots of ways to pull in your belt with some shuffling around, I reckon at least £150 a month, perhaps more.

Burlesque_Babe

I've replied to your other thread. It would be worth PM'ing Fermi and asking for them to be merged.

RAS

icecube2009 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 700
Partners monthly income after tax....... 1350
Benefits................................ 0
Other income............................ 130
Total monthly income.................... 2180

have you checked https://www.entitledto.com in case you can get WTC?

Monthly Expense Details
Mortgage................................ 732 repayment or interest only?
Secured loan repayments................. 160 - secured on what?
Hire Purchase (HP) repayments........... 44 - for what?
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 30
Gas..................................... 35
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 45 - this needs to be reduced and go PAYG with minimal use.
TV Licence.............................. 12
Satellite/Cable TV...................... 30 - and this needs to go
Internet Services....................... 0
Groceries etc. ......................... 300 - you can cut this by one third easily
Clothing................................ 40 - wear what you already own. Shoes and knockers only.
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 50
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 7
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 30
Other insurance......................... 15
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1870


Assets
Cash.................................... 0
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 195000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 166000...(732)......0
Secured Debt.................. 7000.....(160)......0
Hire Purchase (HP) debt ...... 800......(44).......0
Total secured & HP debts...... 173800....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
lloyds card me.................10000.....200.......0
lloyds card dh.................10000.....200.......0
egg loan me....................5000......110.......0
other card dh..................2000......40........0
loan dh........................1000......200.......0
egg card me....................5000......100.......0
Total unsecured debts..........33000.....850.......-


Monthly Budget Summary
Total monthly income.................... 2,180
Expenses (including HP & secured debts). 1,870
Available for debt repayments........... 310
Monthly UNsecured debt repayments....... 850
Amount short for making debt repayments. -540

Personal Balance Sheet Summary
Total assets (things you own)........... 195,000
Total HP & Secured debt................. -173,800
Total Unsecured debt.................... -33,000
Net Assets.............................. -11,000

You could find another £200 in that budget, and in the circumstance you need to do that.

Can you sell the car and use public transport since you are not making long journeys?

What did you spend the money on? Anything you can sell or put on e-bay, amazon or car-boot?

Can any of you get a second part-time job?

Can then kids get part-time jobs?

Join https://www.freecycle.org and sign up for https://www.quidco.com.

And post those APRs as they will dictate which debts you need to pay off first.

How much equity do you have?

Burlesque_Babe

icecube2009 wrote: »

what if we now stopped paying our creditors and went into arrears then offered the F+F's in a few months?

your credit file would be shot to pieces for 6 years as you'd have to be heading towards defaults before F+Fs are accepted. Really not worth it. Have a look at re-working your budget, you have a lot of slack you can pull in.