OK - How do i approach the ppl im in arrears with ??

dottyanne

Ok after doing a thorough SOA, i feel that if i stick to a budget (may need some help from you guys to determine a realistic one!). Then i can manage monthly repayments on bills/debts.

However the problem i'm in is that if you look at my SOA, i'm in quite a bit of arrears, whats the best way to sort them as if i try to play catch up again (which i have been doing!) im never going to get straight as it will take all the money i should be putting away for mortgage, c/tax etc??

Any ideas please?????????

thanks in advance, dotty xx

lynzpower

morning dotty!
Hope your well

How much did you work out in your SOA left each month before you start paying your creditors?

As Chortle says, paying off Inland revenue has to be a priority.

dottyanne

Hiya Lynz (is it Lindsey btw) cause thats my name too!!!!!!

Erm, this is the problem - ive never (!!!!) really done a budget befre and the figures i put in my SOA for food etc - its a new thing - first week of doing it this week so i dont quite know if its realistic or not yet?? £50 per week for everything - food wise, etc.....

My SOA is as follows, this was posted a few days ago...........:-

Monthly Direct Debits (personal)

Abbey Mortgage (6.50%) – 774.30
G E Money Serviving Limited (secured Loan) – 208.92
T V Licence – 11.07
Powergen – 120.00
Sky Digital -42.50
Direct Line (life) – 20.05
Direct Line (contents) – 36.36
Egg Card – 40.00 (15.9% Apr)
Egg Loan – 361.80 (7.7% Apr) Payable Till Dec 2011
Rbs Personal Loan – 61.39 (paid Off In August This Year)
United Utilities - 49.82

All Up To Date At The Moment!! - Not now though!!

Monthly Bills (personal)

Council Tax – 98.00 – Up To Date
Kids School Dinners/snack Money – 111.00
Kids After School Club – 60.00
Food (approx) – 200.00
Oh Smoking – 125.00

All Up To Date At The Moment!!

Debts (personal)

Ground Rent – 200.00 Overdue – To Be Paid In Full
Capital One Cc – Me – O/s Approx – 300.00 (17.9%) Up To Date
Barclaycard – Oh – O/s Approx – 858.24 (limit 700.00) Overdue- They Want 175.00 Asap
Bt – Home Phone – 154.51 – Overdue All Due
Capital One Cc – Oh – O/s Approx – 1015.00 (limit 1000.000 Overdue – They Want 130.63 Asap
Robinson Way Debt Collectors (british Gas) – Oh – Approx 608.00 – 20.00 Per Month – Overdue
Scotcall Debt Collections Agency (dss) – Oh – 3630.64 – 10.00 Per Month - Up To Date
Inland Revenue – Tax Credits Overpayment – 646.12 – Overdue Since November 2005 – Not Paid Anything!!
Great Universal – Me – O/s 651.83 – Payments Of £30 Per Month – Up To Date
RBS OVERDRAFT - 4000.00
Dad – 3100.00
Mum – 500.00
Brother – Car Loan – 37.19 Per Month – Up To Date

NOT EVEN TAKEN ANYTHING INTO ACCOUNT FOR SAVING FOR BIRTHDAYS AND CHRISTMAS ETC...............
Business Direct Debits

Shop Rent – 368.33
Motorline Insurance (van) – 52.14
United Utilities – 20.88
National Insurance – 10.50
Cardnet Charge – 25.57
Virtual Lease (every 3 Months) 84.60
Matsu – 30.00
Direct Line (car Insurance) – 50.00

Was Also 240.12 Hp Each Month On Van But Dad Has Paid This Off As Van For Sale – Will Be Paying Him Back Fully When Van Is Sold

All Up Todate At The Moment!!!!

Business Bills

Car Tax – 90.75 Due End Of This Month *******
Accountant – June 05 – 94.00 – Overdue
Accountant – Oct 05 – 94.00 – Overdue
Accountant – Jan 06 – 94.00 - Overdue
Cars Debt Recovery – 93.71 - 47.00 Overdue (due By 17/3/06) The Rest By Same Time Next Month
Business Rates – O/s 538.00 Overdue For Last Year – Have Written To See If They Will Spread Over This Year With New Bill
O2 (business Mobile ) – 60.45 – Overdue
Bt – Business Phone – 80.14 – Overdue
Inland Revenue – 05 Jul 05 – 120.85 Overdue
Inland Revenue – 05 Aug 05 – 96.68 Overdue
Inland Revenue – 05 Sep 05 – 96.68 Overdue
Inland Revenue – 05 Oct 05 – 120.85 Overdue
Inland Revenue – 05 Nov 05 – 96.68 Overdue
Inland Revenue – 05 Jan 06 – 64.21 Overdue
Inland Revenue – 05 Feb 06 – 96.68 – Overdue

Petrol & Diesel – Approx £40 Per Month

I Don’t Think Ive Missed Anything Off If I Have I Will Let You All Know!!

Income

I Get 178.57 Per Week Tax Credits
Oh Gets 147.00 Per Week Wages (if We Can Afford To Pay Him)
Cleaning Job (me) 50.00 Per Week
Dad Rent 90.00 Per Week
Child Benefit – 39.80 Per Week
Ex Husband – 25.00 Week (not Reliable)

Then I Take Whatever The Business Can Afford To Pay Me???

So Without My Income – 2298.27 Month

At The Moment My Husband Is Being Re- Assesed For His 3 Kids By Csa So We Will Have This As An Additional Bill Each Month Too (estimate No More Than About £60 Per Month)

Ok any ideas - PLEASE?????????? xx

lynzpower

Yes its Lyndsey!! Nice to meet another one, seems to be quite a few of us on here!

Although you tell me what is outstanding, Im not sure what each is per month. Ie without the debts, how much is the phone line? Have you taken into account on this SOA all your cutbacks? Ie are you continuing with your sky and so on.

Sometimes doing a revised SOA with a total of whats left over and where is the easiest thing to do here. iF your heads still a bit see if you can get your OH to have a look over it and see.

xxx

dottyanne

lynzpower wrote:

Yes its Lyndsey!! Nice to meet another one, seems to be quite a few of us on here!

Although you tell me what is outstanding, Im not sure what each is per month. Ie without the debts, how much is the phone line? Have you taken into account on this SOA all your cutbacks? Ie are you continuing with your sky and so on.

Sometimes doing a revised SOA with a total of whats left over and where is the easiest thing to do here. iF your heads still a bit see if you can get your OH to have a look over it and see.

xxx

Hiya Lynz

ok
Ground Rent – 200.00 Overdue – To Be Paid In Full (this is £100 per year normally - so once up to date would have to put aside approx - £8.35 per month - however its nearly April now??)
Capital One Cc – Me – O/s Approx – 300.00 (17.9%) Up To Date (Approx minimum payments are under £10 per month)
Barclaycard – Oh – O/s Approx – 858.24 (limit 700.00) Overdue- They Want 175.00 Asap (His approx minimum payments - when up to date would be around £18.00 per month)
Bt – Home Phone – 154.51 – Overdue All Due (would be approx £50 per month inc Broadband)
Capital One Cc – Oh – O/s Approx – 1015.00 (limit 1000.000 Overdue – They Want 130.63 Asap (when up to date minimum payments would be around £20 per month)
Robinson Way Debt Collectors (british Gas) – Oh – Approx 608.00 – 20.00 Per Month – Overdue (as stated £20 per month until repaid)
Scotcall Debt Collections Agency (dss) – Oh – 3630.64 – 10.00 Per Month - Up To Date (£10 per month until repaid)
Inland Revenue – Tax Credits Overpayment – 646.12 – Overdue Since November 2005 – Not Paid Anything!! (not a clue what to do about repaying this??)
Great Universal – Me – O/s 651.83 – Payments Of £30 Per Month – Up To Date (£30 per month until repaid)
RBS OVERDRAFT - 4000.00 (how do i get rid of this???)
Dad – 3100.00 (paying £0 per month at mo)
Mum – 500.00 Paying £0 per month at mo)
Brother – Car Loan – 37.19 Per Month – Up To Date (39.19 per month for about another 18 months or so i will check and verify this?)

NOT EVEN TAKEN ANYTHING INTO ACCOUNT FOR SAVING FOR BIRTHDAYS AND CHRISTMAS ETC...............

lynzpower

Id say, dont worry about the overdraft yet. Im not even counting my overdraft in my debt at the moment, although, I will soon enough.

What you need to do, without panicking, is work out EXACTLY what it is that you have left over, after you pay your monthly payments on everything. I know what a nightmare it is for you as you are not sure what you have got going in with the business and all that, but did you come up with any figures.

Ie once I pay all my debts and food, and bills and shared account and travelcard im left with 220 a month. Thats my example. Can you do the same? x

dottyanne

lynzpower wrote:

Id say, dont worry about the overdraft yet. Im not even counting my overdraft in my debt at the moment, although, I will soon enough.

What you need to do, without panicking, is work out EXACTLY what it is that you have left over, after you pay your monthly payments on everything. I know what a nightmare it is for you as you are not sure what you have got going in with the business and all that, but did you come up with any figures.

Ie once I pay all my debts and food, and bills and shared account and travelcard im left with 220 a month. Thats my example. Can you do the same? x

So work out the payments for everything including minimum repayments - i can do that but what about the arrears in the meantime or will that come out of whats (if anything) left over?

Just to let you know - cancelling after school club tomorrow as of next week so thats £60 per month saved (although have to let tax credits know as they pay 70% of this), but its still a saving for us.......

Also, cancelling Accountant to do wage slips and PAYE as my husband can find a programme enabling me to do this myself - saving about £90 per quarter.

Do you think its a good idea to pay DD for phone and spread the cost monthly? they may let me add arrears into this? i dunno - what do you think??

Madboffin

Hi folks, Don't know if you've considered this or been advised about PAYPLAN. I contacted them inmJanuary and they helped puttogether a very detailed income/expenditure table, they are FREE (the best price) and have all the info on what allowances are usually acceptable for almost every outgoing possible. In my case, at that time, I had zip disposable income after paying all priority creditors but PAYPLAN still managed to help with letters contacting creditors. I've managed to arrange a nominal £1 payment to all creditors without fear of interest or penalty for 6 months until I can do something about freeing up some cash (freed up £3100 p.a. to date by following ML's tips) and there is no note placed on credit files about defaults. Did I mention its FREE?
estimated totally debt free by 2017
good luck,

lynzpower

Dont worry about the arrears in your sums just now. Do you know what you have left over after all the standard payments have gone out ?

wylie_2

Hello all,
There are quite a few routes to getting debt help but you must be aware that most of them have a 'favoured' solution. This usually depends on how they are funded and may not always be in the best interest of the client.

I would advise either ... take advice from a range of debt solution companies & Charities and compare with the help of an IFA.

Or use a company who look at the complete picture and give you all the options for you to decide. ( At this point I had better declare that I'm associated with one such company who provides a free service)

I have heard of many people struggling for up to 10 years with payment plan that could have been settled in a year!

Get good advice before you act

good luck

dottyanne

Hi - i really want to do this myself first - well at least try.........

I know id be ok if i caught up on arrears and stuck to a budget......where do i start tho??