My soa and offer to creditors - which way now?

JoJoB

Hello, I'm trying to get a grip on things as they have started spiralling again, and not sure if I am too late to halt the inevitable (eg bankruptcy etc). Would also appreciate any advice as to how much individual lenders might agree to receive in payment as part of a dmp, and whether any of the lenders I'm with are particularly intransigent.

There is much room for improvement on my spending (the grocery bill could do with some work - I'm sure it's the odd bottle of wine that bumps it up somewhat). Don't want to get rid of sky as I'm in a weird tv reception blackspot and it's the only way I can get a picture (and I've just started the contract so not sure I can get out of it for a year). The travel bill is bad, but no way to get that down unless OH quits his job.

The cc's are beginning to spiral again as Oh is often using them to pay for his train ticket as we just never seem to be able to make it to the end of the month with enough money to last. But we have been a bit extravagent occasionally with the odd chinese when we knew we really shouldn't. But the rest of the time we shop in charity shops and are pretty frugal, don't run a car etc.

We live in a small 2 bed flat which with the new baby we are rapidly outgrowing, but just in negative equity so not sure what to do - can't stick it out till the housing market picks up, might be years! Sometimes feel like just handing back the keys and giving up, renting looks suddenly very attractive rather than being trapped here (although it has been a lovely home for us).

Any input appreciated!

Soa in next post for clarity

JoJoB

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1327
Partners monthly income after tax....... 0
Benefits................................ 200
Other income............................ 0
Total monthly income.................... 1527
Monthly Expense Details
Mortgage................................ 450
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 40
Council tax............................. 100
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 18
Telephone (land line)................... 30
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 18
Internet Services....................... 7
Groceries etc. ......................... 220
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 320
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 16
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 10
Other insurance......................... 10
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 30
Emergency fund.......................... 20
Total monthly expenses.................. 1511

Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 90000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 93000....(450)......5
Total secured & HP debts...... 93000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
mbna card......................800.......20........25
barclaycard....................2000......45........20
egg card.......................3500......100.......24
Total unsecured debts..........6300......165.......-

Monthly Budget Summary
Total monthly income.................... 1,527
Expenses (including HP & secured debts). 1,511
Available for debt repayments........... 16
Monthly UNsecured debt repayments....... 165
Amount short for making debt repayments. -149
Personal Balance Sheet Summary
Total assets (things you own)........... 90,000
Total HP & Secured debt................. -93,000
Total Unsecured debt.................... -6,300
Net Assets.............................. -9,300
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

JoJoB

I guess what I'm worried about is that we are having to live off the credit cards to some extent now. We put the house on the market in order to pay off debts and start afresh etc about 2 months before everything went bang. So now we won't make any money if we sell (and have redemmption charge if we do so before 2010). We did pay off about 8k on our debts last year in an angelic attempt to clear everything, but things are getting bad again.

OH may also be getting made redundant in the summer, so we are a bit in limbo as to how best to proceed.

topbadger

JoJoB wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1327
Partners monthly income after tax....... 0
Benefits................................ 200
Other income............................ 0
Total monthly income.................... 1527
Monthly Expense Details
Mortgage................................ 450
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 40
Council tax............................. 100
Electricity............................. 100 - I know there's no gas but still seems a bit expensive?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 18
Telephone (land line)................... 30
Mobile phone............................ 10
TV Licence.............................. 10 should be £12
Satellite/Cable TV...................... 18
Internet Services....................... 7
Groceries etc. ......................... 220 Can you reduce this?
Clothing................................ 30 Again, can this be reduced?
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 320 Ouch! But if OH needs to get to work, I guess there's not much you can do
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 16
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 10
Other insurance......................... 10
Presents (birthday, christmas etc)...... 30 Another area that could be cut to a bare minimum
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 30 Maybe skip the holiday until things are looking up?
Emergency fund.......................... 20
Total monthly expenses.................. 1509

Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 90000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 93000....(450)......5
Total secured & HP debts...... 93000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
mbna card......................800.......20........25
barclaycard....................2000......45........20
egg card.......................3500......100.......24
Total unsecured debts..........6300......165.......-

Monthly Budget Summary
Total monthly income.................... 1,527
Expenses (including HP & secured debts). 1,509
Available for debt repayments........... 18
Monthly UNsecured debt repayments....... 165
Amount short for making debt repayments. -147
Personal Balance Sheet Summary
Total assets (things you own)........... 90,000
Total HP & Secured debt................. -93,000
Total Unsecured debt.................... -6,300
Net Assets.............................. -9,300
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

A few suggestions of where it might be cut back, though (electricity aside) nothing seems too excessive, other than those APRs on the credit cards! Any chance of getting 0% cards and balance transferring (as long as you cut up the old ones, of course! )

JoJoB

Thanks Topbadger.

Definitely need to address the grocery bill, yes.

Holiday has been half paid for so difficult to get out of now and it's only a week in a tent in the Lakes, so not the most extravagent - and our first holiday in 5 years so really need the break. There won't be another holiday for the forseeable future after that though, so should I take the £30 of the soa completley?

I suppose I could cut down presents too - that was to include 5 nieces and nephews, mother's day, me OH and baby so works out at less than £3 each already!

Electric - yes I was shocked too, but then all my friends seem to be putting about £40 a week on their gas and electric, so £100 in relation to that seems a lot cheaper! I am working on cutting costs in that area though.

It just seems that even with some cutbacks the figures still don't add up, and things are likely to get worse rather than better as OH may be made redundant.

JoJoB

Trying to break down what I spend £220 on each month for groceries.

Figured at least £80 per month goes on baby milk and nappies, so that means I am spending £140 per month on food, toiletries etc (I would estimate we spend £20 per week on alcohol, some weeks more if I'm honest, I really think that is the one thing we need to get control of).

Is £140 per month on food and toiletries for family of 3 very exhorbitant do you think? I do use coupons and cut costs that way, and shop at whoopsie time!

We never have a night out or go to the pub, or even the cinema, so I guess having the odd drink indoors has turned into our social life.

Clothes - I put £30 down as an estimate but could get away with less. Difficult with a growing baby, but we do buy a lot in charity shops. And I have about 2 tops that fit me and nothing I can wear in the summer so envisage having to buy a few things soon.

The hot water has broken down again and so we will have to pay out for that again soon, in the meantime boiling kettles for a bath will probably send the electric bill soaring again.

RAS

Hi

You need to join www.freecycle.org. This is like e-bay but the goods are free. You do have to collect them, so that may restrict your geographic area.

What do you mean the hot water has broken down again? if someone repaired it and the job has not lasted, is it there problem rather than yours?

You can skip baths until the water is repaired. Have a wash-down. One kettle full for that.

When the water is working, how many hours a day do you have it switched on?

Do you have energy saving lamps installed - they save you a tenner a year each.

Go round and switch off everything except the fridge and freezer.

And check the rating on those. ONe TV programme showed a guy whose fridge was costing £360 to run and it was cheaper for him to buy a new one.

head over to the old style Money saving forum. They will get your grocery bills down.

Also read the boost your income thread here http://www.moneysavingexpert.com/protect/make-money

And

have you got PPI on any of those cards, or on anything else you have used in the last 6 years?

And have you any late payment or penalty charges on any account that you can reclaim?

JoJoB

Thanks RAS, I've joined freecycle and do pick up baby bits from them.

I'd love the old plumber to come fix the job (looks like immersion heater has spontaneously combusted - 3rd time in 3 years), but can't find his number or advert - I know, very disorganised of me not to keep it safe.

We all have a bath every 3 or 4 days - baby uses water first then me then OH, rest of the time it's just wash-downs. When the water is working I have it on for 45 minutes to heat up the tank per day.

Certainly will look into reducing energy bills though. New fridge freezer so the rating is ok on that score. No tumble dryer or anything very energy consuming like that - but we are in the house all day with tv and laptop on a lot.

I think even if I manage to cut back by £100 per month we are going to be struggling indefinitely though with the current cc and loan repayments so thinking of going the dmp route.

Anyone had any experience with my creditors on a dmp? Would be interested to know their attitudes to such a thing. Thanks.

JoJoB

And I realised I left off Blackhorse loan from my soa which stands at £2500 at 140 per month.

trina2010

theres one thing im not seeing here.....positivity!
youve taken the hardest step which is to admit to the full extent of your debt and ask for help!

What you do from here is up to you, but its only what you will make of it.

I would suggest that you nip over to the Oldstyle board where they can help you out a lot with your grocery budget, bulk cooking etc so you can fill up that nice new fridge/freezer!
The up your income board could have some interesting things for you, working in your own time and setting your own hours, whether its ebaying, doing a little mystery shopping or joining something like avon.
avon etc could be a good choice for you, if you can get an area in walking distance you could also take the little one with you, fresh air, also being out of the house means you arent using the tv and laptop etc therefore reducing energy costs at the same time.

There are many things you can do to get out of this, the more you are willing to try, the more options that will open up.

This is not the end....only the beginning!

Good luck