Up a certain creek without a paddle - any way out without a DMP?

Allypops

I thought I had my LBM last year and then earlier this year but no. I have had a rude awakening when I tried shuffling cards to O% and realised the extent of how bad things really are. We (DH and me) owe a ridiculous amount of money and when I went on the CCCS site, it recommended a DMP. Thing is, I would still rather try and avoid it if at all possible as we got ourselves into this and I would like to get ourselves out without having no prospects of remortgage or moving in the future albeit several years away - we will need an additional bedroom within a few years. Can anyone see any way forward.

I mistakenly missed a payment on a catalogue recently which has now made my credit rating drop from 999 to 700 so this may also have a bearing but everything else is up to date but we are relying on CCs for day to day stuff now. As leaseholders we will also be having a very large bill in the next few months for about 10k (nice:eek:}

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 2275
Benefits................................ 130
Other income............................ 0
Total monthly income.................... 3405
Monthly Expense Details
Mortgage................................ 1017
Secured/HP loan repayments.............. 165
Rent.................................... 0
Management charge (leasehold property).. 40
Council tax............................. 115
Electricity............................. 60
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 35
Mobile phone............................ 60
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 280
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 20
Car Insurance........................... 45
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 35
Other insurance......................... 45
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30
Entertainment........................... 30
Holiday................................. 100
Emergency fund.......................... 50
Total monthly expenses.................. 2579

Assets
Cash.................................... 250
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 3500 (OH - absolute necessity)
Other assets............................ 0
Total Assets............................ 163750

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 144000...(1017).....6.99
Secured Debt.................. 10000....(165)......6.5
Total secured & HP debts...... 154000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds tsb loan................15000.....340.......14
lloyds tsb c/c 1...............6000......140.......11
lloyds tsb c/c 2...............5000......120.......10
OVERDRAFT ABBEY................400.......5.........0
overdraft TSB..................3000......35........0
Post Office c/c................1500......20........0
M&S Credit card................1500......20........20.9
virgin c/c 2...................6000......150.......0
virgin c/c 1...................2850......100.......34
Total unsecured debts..........41250.....930.......-

Monthly Budget Summary
Total monthly income.................... 3,405
Expenses (including HP & secured debts). 2,579
Available for debt repayments........... 826
Monthly UNsecured debt repayments....... 930
Amount short for making debt repayments. -104
Personal Balance Sheet Summary
Total assets (things you own)........... 163,750
Total HP & Secured debt................. -154,000
Total Unsecured debt.................... -41,250
Net Assets.............................. -31,500
Created using the SOA calculator at makesense of cards
Reproduced on Moneysavingexpert with permission, using IE browser.

The figure for shopping are what I want to be spending and what I am heading for now as it was about £600. I am trying to pick up tips from the oldstyler board
We have just been living beyond our means since, well, forever. DH is a heavy smoker (30 a day) - luckily I gave up nearly 10 years ago although you'd never know it from my bank account. We had takeaways sesveral times a week and if not it was M&S's finest. I am trying to reform and have started making food from scratch and even making my own bread but I fear it may be too late. I realise that I have let my family, in particular my 2 small children who rely on me, down and really need some honest (but not too harsh) advice on what, if anything, can be done. I have finally accepted that buryng head in sand or carrying on regardless are not options.

WASHER

Allypops wrote: »

I thought I had my LBM last year and then earlier this year but no. I have had a rude awakening when I tried shuffling cards to O% and realised the extent of how bad things really are. We (DH and me) owe a ridiculous amount of money and when I went on the CCCS site, it recommended a DMP. Thing is, I would still rather try and avoid it if at all possible as we got ourselves into this and I would like to get ourselves out without having no prospects of remortgage or moving in the future albeit several years away - we will need an additional bedroom within a few years. Can anyone see any way forward.

I mistakenly missed a payment on a catalogue recently which has now made my credit rating drop from 999 to 700 so this may also have a bearing but everything else is up to date but we are relying on CCs for day to day stuff now. As leaseholders we will also be having a very large bill in the next few months for about 10k (nice:eek:}

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 2275
Benefits................................ 130
Other income............................ 0
Total monthly income.................... 3405
Monthly Expense Details
Mortgage................................ 1017 Is this interest or repayment only?
Secured/HP loan repayments.............. 165
Rent.................................... 0
Management charge (leasehold property).. 40
Council tax............................. 115
Electricity............................. 60
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 35
Mobile phone............................ 60 - This is far too high, reduce your packages if you have been with them for at least 9 months
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 280 - This is in my opinion a difficult one if you have been spending £600 per month, I think you will find it difficult, I did and I still exceed my budget every month.
Clothing................................ 50 - too much
Petrol/diesel........................... 160
Road tax................................ 20
Car Insurance........................... 45
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 35
Other insurance......................... 45 - what are these?
Presents (birthday, christmas etc)...... 50 - too much
Haircuts................................ 30 - too much each month
Entertainment........................... 30
Holiday................................. 100 - you can't afford a holiday - sorry
Emergency fund.......................... 50 - you can't afford an emergency fund either - sorry
Total monthly expenses.................. 2579

Assets
Cash.................................... 250
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 3500 (OH - absolute necessity)
Other assets............................ 0
Total Assets............................ 163750

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 144000...(1017).....6.99
Secured Debt.................. 10000....(165)......6.5
Total secured & HP debts...... 154000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds tsb loan................15000.....340.......14
lloyds tsb c/c 1...............6000......140.......11
lloyds tsb c/c 2...............5000......120.......10
OVERDRAFT ABBEY................400.......5.........0
overdraft TSB..................3000......35........0
Post Office c/c................1500......20........0
M&S Credit card................1500......20........20.9
virgin c/c 2...................6000......150.......0
virgin c/c 1...................2850......100.......34
Total unsecured debts..........41250.....930.......-

Monthly Budget Summary
Total monthly income.................... 3,405
Expenses (including HP & secured debts). 2,579
Available for debt repayments........... 826
Monthly UNsecured debt repayments....... 930
Amount short for making debt repayments. -104
Personal Balance Sheet Summary
Total assets (things you own)........... 163,750
Total HP & Secured debt................. -154,000
Total Unsecured debt.................... -41,250
Net Assets.............................. -31,500
Created using the SOA calculator at makesense of cards
Reproduced on Moneysavingexpert with permission, using IE browser.

The figure for shopping are what I want to be spending and what I am heading for now as it was about £600. I am trying to pick up tips from the oldstyler board
We have just been living beyond our means since, well, forever. DH is a heavy smoker (30 a day) - luckily I gave up nearly 10 years ago although you'd never know it from my bank account. We had takeaways sesveral times a week and if not it was M&S's finest. I am trying to reform and have started making food from scratch and even making my own bread but I fear it may be too late. I realise that I have let my family, in particular my 2 small children who rely on me, down and really need some honest (but not too harsh) advice on what, if anything, can be done. I have finally accepted that buryng head in sand or carrying on regardless are not options.

Welcome to DFW.

I have added comments in above, I can see at least £200 savings per month which will make you break even, so long as the washing machine etc doesn't break down.

I notice that you will get a bill for £10,000 shortly, you should have that in your SOA each month, is it annual?, no it can't be it seems alot, how frequent is the payment?

I would contact the CCCS for advice, it will not affect your credit rating for taking advice, their website has some useful info on it.

I wish you well, its not going to be easy but with the support of the DFW board you can make a huge difference.

WASHER

Shoe_Gal

Well done for posting and facing up to things, this is poistive, it's not letting your family down :A

I'm sure people will be along soon with loads of practical advise, but looking at your SOA if you cut dowm on clothing, entertainment and holiday funds you could balance the books - so hard work should mean you can avoid a DMP if you want to

Good luck, take care

tiny_courageous

Mobiles could be reduced, and is it realistic to be saving for a holiday when you're struggling? Telephone and internet looks expensive too, look at combined packages.
The 10k you'll have to pay in the next few months, do you have savings or any plans of how to tackle that already?

Anyway, you've done the first step, which is the biggest one. Congratulations and good luck. Is hubby on board and aware of the situation?

Allypops

Thanks all. I will look into the mobile phones (the 60 is for mine and DH's) His is 40 mine 20 but I could easily go PAYG cos I don't use it much at all.

Fair point about the holiday! And I am sure my family would rather I sort myself out than buY them pressies (apart from the kids).

Clothing shouldn't be needed for a bit so yes I can drop that for now and the emergency fund can go. Haircuts can be cut (haha).

The other insurances were top up life insurance to cover loan and something else - i'm actually not sure - critical illness cover maybe (will have to check)

the £10000 was for some major works and is a one-off. apparently they will give 2 years to pay rather than usual 12 months because of the current economic situation (general not mine ) but that's not going to solve the problem in our case.

The mortgage is repayment.

I'm really not sure what I can get the grocery shopping down to - I was going to try 280 a month but accept that will be very tight and maybe a bit ambitious especially as my local supermarket is Waitrose!

I've just changed energy supplier and about to change broadband/landline and cancel digital TV so have put the new figures in as that's what I think it will be but perhaps I can get it cheaper.

Grateful for any advice - i need it!

WASHER

24 months to repay, thats £416.00 per month! Did you know that this work was going to cost this? How on earth can you afford £416? You need to speak to the CCCS or National Debt Line as soon as possible. You need to add this figure into your SOA (I know it will look bad, but at least its an honest SOA)

Allypops

Yes, once the 10k bill is there, there wont really be much option other than to go to CCCS or similar....

We were informed of what the works would cost but not much we can do about it as everything was in accordance with the terms of the leasehold. Bummer

Will need to work out whether overtime is possibility or whether it would be worth increasing my hours but would mean an after school club for a while which wasn't what i had planned

That extra bedroom when needed may have to be selling up and renting but would the possibility of renting be affected by having had a DMP?

I actually feel sick!_pale_

WASHER

You say your house is worth £160K and that your mortgage is £144k, once you have paid fees and the buyer knocks a grand off the asking price you will only be left with approx £10K - only enough to repay the bill due in.

You need to speak to the CCCS now.

I'm not saying all this to make you feel worse, but to give you my honest opinion.

Allypops

washer - Yes I think CCCS is my next port of call and do whatever I can in the meantime. I don't think I wanted to accept that it had got that far.

Tiny courageous - yep DH knows but seems to have even more trouble than me in dealing with money. He thinks the lottery is the answer.


Oh poo

Smashing

Allypops wrote: »

I'm really not sure what I can get the grocery shopping down to - I was going to try 280 a month but accept that will be very tight and maybe a bit ambitious especially as my local supermarket is Waitrose!

You need to consider using internet shopping - you'll have more choice store-wise (check out the sainsburys basics thread in food shopping & groceries) and it will help prevent impulse purchases. You make a budget and stick to it.

Allypops

yes, i think i should stop going to waitrose, I like their stuff but I can't afford it.

Internet shopping is probably the best option as I will defo buy off-liste!