Help please? SOA below.....

smartiedriver_2

Hi, I'm brand new here, so this seems best place to start..... my SOA is below. I entered into an IVA in June 2007 with £77k of unsecured debt. I live at home with my parents (age 29, how embarrassing) and have no assets like property, etc.

I work for a bank, so bankruptcy was not an option. I took my IVA through Debt Free Direct.

Problem is, they are now (annual review) trying to increase my IVA repayments to £900 a month. I only got a £100 a YEAR payrise this year, so how they think they can justify this increase is beyond me. I just don't know what to do, can anyone help me please?

Many thanks in advance.............................

SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 4

Monthly Income Details
Monthly income after tax................ 1492
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1492

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 150
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 13
Mobile phone............................ 32
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 8.08
Groceries etc. ......................... 40
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 5
Car Insurance........................... 29.56
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25.8
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 19.65
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Income protection....................... 25.76
Specsavers ............................. 10
(Unnamed monthly expense)............... 0
IVA repayments ......................... 643
Total monthly expenses.................. 1283.8


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Mum - loan for car.............3700......100.......0
Total unsecured debts..........3700......100.......-


Monthly Budget Summary
Total monthly income.................... 1,492
Expenses (including HP & secured debts). 1,283.8
Available for debt repayments........... 208.2
Monthly UNsecured debt repayments....... 100
Amount left after debt repayments....... 108.2

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,700
Net Assets.............................. -1,700

smartiedriver_2

Oh, and I should add that I never seem to have any cash left over, I am always having to borrow off my Mum which is awful at my age, esp. as my parents know nothing of my financial difficulties.............

daily_2

Why are you paying income protection and life assurance?

Ames

You've got prescriptions and specsavers seperate, does that mean that the prescriptions are actually prescriptions? You could get a pre pay certificate, they're a lot cheaper than paying for them individually if you have more than one a month on average.

firesidemaid

do you need to spend so much on your mobile - you can get great deals for a lot less?

also, what is the other travel for if you have a car?

can you get a second job?

again, what is the life assurance for - do you have dependents?

are you being realistic re. your food costs - ie. does this include all your work lunches?

Richard_Cocks

32 a month on a mobile?

45/mo on life insurance/income protection (protection for what dependents?)

Plus the fact it looks like you're spending less than you're earning by around 200 a month.

Taking that into account a 250 increase on the IVA and they're not being unreasonable (from their perspective, they won't consider the parental loan high priority).

On the other hand are you sure you only spend 40 a month on groceries? That's very disciplined.

You also say, "my parents know nothing of my financial difficulties". You should remedy this. Their advice would be better than any advice that can be disposed over an internet forum...

firesidemaid

smartiedriver wrote: »

Oh, and I should add that I never seem to have any cash left over, I am always having to borrow off my Mum which is awful at my age, esp. as my parents know nothing of my financial difficulties.............

if they knew of your financial difficulties then they may temporarily charge you less rent etc.

mitty_2

With that much debt, maybe it's worth going bankrupt and having a career change, unless you absoultely love working in the bank - it's gonna take a long time to clear on an IVA and with no assets to protect bankrupcy looks a good solution in my opinion - Hope it gets better whatever you decide.

lisainglasgow

Have you started a spending diary? If you think you have £200 left by these calculations but in reality you don't then you need to see where it is going - drinks and sweets, or the odd pint here and there add up over a full month.

smartiedriver_2

The prescriptions is actually dental cover with Denplan - I had two crowns about three years ago that cost me over £600 and as I can't afford to fork that out again I pay monthly for dental cover.

I pay the life and CI cover because if I couldn't work for any reason I need an income, and if I were to die my debts need to be cleared from my estate; my family couldn't clear them..

My mobile is a fixed contract with another 13 months to go - it was a 24 month contract. I have enquired about reducing it but T-Mobile will not permit it until I only have 2 months left to go. It is 800 mins & unlimited txts.

The groceries section is purely lunches and/or food at work; my main food bills are covered by my parents and my housekeeping to them.

I absolutely cannot tell my parents they would be horrified and worried, they are both in their 70s and think people with £5k of debt are irresponsible and shouldn't be allowed bank accounts.

The career change would be an option if there were more jobs around at present, but sadly there's not a lot going in any sector at the minute.

The "other travel" cost is my daily bus fare... I commute to London on the train - the cost of which I have already deducted from my net income as it is a work season ticket loan scheme. The bus fare is across London, its cheaper than the tube. This is also why I don't have a second job - I did when I worked locally, but now I leave home at 06:45 and return at 19:30, there isn't much time for a second job.

I will definitely give the spending diary a go - thank you for that suggestion. If I can at least identify where the money's going it might help.................


Thanks everyone

Ames

If you die your debts die with you, so it's an expense you really don't need.