We are in a bit of a mess...

Webbigail

...my husband and I have got ourselves into a financial mess. We have a few credit cards and a couple of personal loans and a mortgage on our property with no equity due to the credit crunch and fall in the market.

We have been paying the minimum payments on all our debts and have not got anyone knocking on our door or sending the nasty letters I keep reading about.

The problem is we are at a stage now where we are paying all our bills and breaking even. I dont include food in "bills" so basically we can keep everyone happy but cant eat and cant see that the debts will reduce until we are collecting our pension!

I have spoken to Payplan and they are calling me back tomorrow to discuss a DMP but I am worried they wont consider us as we havent got anyone knocking on the door yet (mind you it will only be a matter of time if we carry on as we are).

Any suggestions? Would love to hear from anyone who is a similar position.

Thanks

MessyMare

Posting your soa would be useful, there's a link to it on the forum I'm sure all the lovely helpful peeps here will be able to give that a good going over and see some savings you might not have thought of

Webbigail

Thanks, been looking for the SOA but can't seem to find it, can you guide me?

Tixy

A DMP sounds like it might be the way forward but it would help if you could post a statement of affairs as Colleen suggest (http://www.makesenseofcards.com/soacalc.html). This will give you a clear picture of your position and will help you when you speak to Payplan tomorrow. It will also help us advise you as to what options you have.

You don't have to have DCAs knocking to enter a DMP, if you can afford basic living costs and all your debt repayments then you should be eligible.

And food is more important than debt repayments

typical_blonde

Hi Webbigail,
Sadly I have no magic wand to help you with, but just wanted to send you a 'hug'. I know what you're going through. We, ordinary honest people, couldn't see the financial shannigans that the banks were up to, so we felt safe and secure. Now that it's all gone belly up we are the ones paying (literally). If we'd been the type to sit on our backsides all day and take money from the Government with all the help that entails we wouldn't be noticing any difference now. Please keep your chin up, things HAVE to get better, at the very least we will have learnt the skill of budgeting by the time there is an upturn. Over the last few months I have learnt to bake bread, grow veg (I have a patio so everything is in tubs) and to make meals from first principles rather than grabbing the first thing I find in the supermarket. There are nice people here and someone with expertise will help you, but if you need to chat, please feel free.

Webbigail

Thank you for your quick replies, I will post my SOA as soon as I find it! We are so angry about the whole thing and keep asking the same question I am sure other are asking "how did it get to this?"

On the up side I am very much in the "we have to sort it now" mindset so hopefully Payplan will give me some ideas.

How long does a DMP last? I am worried they will say it will take 50 years?! We owe about 34K and have been paying £650 a month on minimum payments but really can only afford about £250.

Daffykjs

You can definitely go onto a DMP even if you have been keeping up with payments!

Come and visit us here if you like. there are lots of us and some never missed a payment until getting to the point where a DMP was needed! and ALL are glad they went for a DMP!

http://forums.moneysavingexpert.com/showthread.html?t=1735087&page=57

LeeSouthEast

Do post your SOA. You'll be amazed how much money we can help you save

david_hellier

Flagged, await SOA

Webbigail

Summary

Monthly Budget SummaryAmount(£)Total monthly income2,949Monthly expenses (incl. HP & secured loans)2,381Available for debt repayments568UNsecured debt repayments646Amount short for making debt repayments-78

Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)3,000Total Secured & HP Debt-0Total Unsecured Debt-34,900Net Assets-31,900
Household Information

Number of adults in household2Number of children in household1Number of cars owned1
Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax988Partners monthly income1800Benefits161Other income0Total monthly income2949

ExpensesAmount(£)Mortgage1411Secured/HP loan payments0Rent0Management charge (leasehold property)0Council tax141Electricity60Gas30Oil0Water Rates31Telephone (land line)20Mobile phone40TV Licence12Satellite/Cable TV25Internet services0Groceries etc.0Clothing0Petrol/diesel50Road tax0Car Insurance0Car maintenance (including MOT)0Car Parking0Other travel0Childcare/nursery300Other child related expenses150Medical (prescriptions, dentists, opticians etc.)18Pet Insurance/Vet bills12Buildings Insurance32Contents Insurance0Life Assurance49Other Insurance0Presents (birthday, christmas etc.)0Haircuts0Entertainment0Holiday0Emergency Fund0Total monthly expenses2381

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage0(1411) 0Secured & HP Debt totals0- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)FD Loan48001210FD Loan47001250Virgin Credit Card174002000FD Credit Card42001000Egg Credit Card38001000Unsecured Debt totals34900646-

Asset DescriptionValue (£)Cash0House Value (Gross)0Shares and bonds0Car(s)3000Other assets (e.g. endowments, jewellery etc) 0Total Assets3000


Please note this is a rough guide, I have not included our property as an Asset because we do not have any equity in fact we are probably in negative equity. The mortgage payment might seem high but it includes a secured debt repayment as well. I havent included any money for food, birthdays, haircuts etc because we dont have any left :-(

Also the £150 under other child related expenses is child maintenance for my step child.

I know there are some things we can cut back on like Sky TV and mobile phone etc but I dont think it will be enough for us to do nothing about the debts.

All comments welcome :-) (still smiling! Just!)

Horace

Did you click the MSE button to format it for here because it is so cramped it is nigh on impossible to read:eek: