I'm new - be gentle!

Platypus13

Hi everyone, I'm an MSE virgin - here goes...

I have debts of roughly £6000 from when I was a student. An overdraft with Barclays has been passed to 1st Credit as a lump sum and a mistake on a loan agreement has meant that I have ended up with an outstanding loan becoming a lump sum, non-credit debt. As it stands, none of my debts are increasing the longer I wait before getting round to negotiating with my creditors.

I have lived in shared houses for a good few years now and have moved around a lot. I'm not on the electoral role and yet within a few months of moving debt-collectors letters start arriving without fail. I can't think of any legal way for them to have found me.

My plan is to set up a savings account and pay in the amount I could afford to my creditors each month. This way at least I'll make some interest on my money before paying off my debts in one lump payment. However, I am currently receiving a wave of letters (at least 3 a week - how did they get my address?!) and phonecalls (at least one, sometimes two, a day). I have not replied or answered once, as I have no idea where I stand and I know debt-collector call centre agents to be very aggressive.

Can anybody let me know if I can continue to follow my plan or if real legal action will be taken before I reach my goal. Basically I need advice of some/any kind!

Thanks in advance!

AMG2B

Hi Platypus, I'm afraid I'm not an expert on these things, but I know that everyone will suggest that you fill in a SOA (see the stickies at the top of the thread) so that people can suggest ways of saving additional money to throw at your debts

Platypus13

Part of my problem is that I travel and incur a lot of expenses through work and so need to leave myself a float each month but I'll take a look - thanks.

angelicmary85

Hi Platypus and welcome MSE!

As suggested, post up your SOA. Then, the fab guys and gals here will rip it apart in order to save you a few quid!

You need to add everything onto your SOA so we can get a better understanding of exactly what is going on with your account!

Also, you can join in with the other threads on the board to up your income and you could join us on the payment a day thread (or PAD) which is a really friendly thread and really motivational (but highly addictive!)

Best of luck with your debt free journey x

Platypus13

Well, here's my first stab!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1100

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 20
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 20
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Float for work expenses................. 200
Total monthly expenses.................. 970


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
1st Credit (lump sum)..........3500......0.........0
Co-op (lump sum)...............2600......0.........0
Catalogue (lump sum)...........400.......0.........0
Total unsecured debts..........6500......0.........-


Monthly Budget Summary
Total monthly income.................... 1,100
Expenses (including HP & secured debts). 970
Available for debt repayments........... 130
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 130

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,500
Net Assets.............................. -6,500

Hack away!!

I live in a shared house but I'm single, so I've indicated myself as a household of one.

angelicmary85

Platypus13 wrote: »

Well, here's my first stab!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1100

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 20
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 20 Is this just for you or a shared bill?
Mobile phone............................ 40 Could you get a cheaper tarriff or go PAYG?
TV Licence.............................. 0 Why don't you pay this?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150 This is high if it's just for you - look at the old style board for ways to cut this down
Clothing................................ 40 Every month? Maybe just buy essentail things.
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 150 Do you really have to spend this??
Holiday................................. 0
Emergency fund.......................... 0
Float for work expenses................. 200
Total monthly expenses.................. 970


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
1st Credit (lump sum)..........3500......0.........0
Co-op (lump sum)...............2600......0.........0
Catalogue (lump sum)...........400.......0.........0
Total unsecured debts..........6500......0.........-


Monthly Budget Summary
Total monthly income.................... 1,100
Expenses (including HP & secured debts). 970
Available for debt repayments........... 130
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 130

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,500
Net Assets.............................. -6,500

Hack away!!

I live in a shared house but I'm single, so I've indicated myself as a household of one.

Made a few comments in red.

Try keeping a spending diary to see where your money is going and then stop spending it!

I'm not sure if it's too late or not (not an expert at sorting out creditors!) but could you try to send them letters offering token payments?

Platypus13

Ah yes - the entertainment budget... Honestly, I'd like to be able to spend more on it! I'm only mid-twenties and would love to be able to keep a semblance of a social life but if needs must I'd honestly try to cut back in other areas first.

The clothing budget is what I'd LIKE to spend but I guess I can "charity shop" it! Just like old times.

The amounts for bills are the share that I pay of the total house bills and the TV license is included amongst that. I am constantly turning lights off in unoccupid rooms and turning the heating down in winter but with four people sharing it's difficult to really curtail wastage.

theoretica

I don't understand your float being something you spend each month. From your words I understood it as being money you wanted to keep in your bank, and if spent can't you reclaim it from work? If that is so it would be better under assets not monthly spending.

angelicmary85

Platypus13 wrote: »

Ah yes - the entertainment budget... Honestly, I'd like to be able to spend more on it! I'm only mid-twenties and would love to be able to keep a semblance of a social life but if needs must I'd honestly try to cut back in other areas first.

The clothing budget is what I'd LIKE to spend but I guess I can "charity shop" it! Just like old times.

The amounts for bills are the share that I pay of the total house bills and the TV license is included amongst that. I am constantly turning lights off in unoccupid rooms and turning the heating down in winter but with four people sharing it's difficult to really curtail wastage.

I'm only 23 but don't spend that much on entertainment!!

So if you'd like to spend 40quid on clothes, I'm guessing that you don't already do so which means that you've also got that 'spare' aswel?

Fire_Fox

I'd be inclined to access your credit reports - Experian, Equifax - and see how things stand: I would imagine this is how your creditors are (legally) learning of your whereabouts. If you have debt collectors chasing you I find it hard to believe that your debts are not incurring interest and late charges - usually interest is only frozen when you go onto a Debt Management Plan or similar.

Platypus13

Theoretica - I considered putting my float in assets but when I see that word I immediately see the word 'seized' after it. It's absolutely essential that I have that money to do my work. Sometimes I spend more (hotelrooms etc) and sometimes less.

angelicmary - maybe I'm not as angelic as I should be. I live in a city and any kind of socialising/entertainment unfortunately costs. I can only try to be more parsimonious (spelling?) and reign it in. Maybe I'm not creative enough with my ideas of fun for free.

Fire Fox - My debts are definitely not incurring interest, this I have checked.