Hi, long time reader, first time poster.

blackbug

Finally decided to sort my act out properly. After extreme bugetting (got a new smaller car, cheapest utilities, spending about 20 a week on food, cancelling mobile) all these things are just a drop in the ocean compared to the money I spend maintaining the bills/debts. And just as I manage to end the month with as much as I started then something comes along that needs paying or fixing.

I've filled in the debt remedy forms on cccs and it suggests either an IVA (preferred) or a DMP. I'm leaning toward the IVA, not only would it probably be a shorter solution but I'm assuming it offers me greater protection and a more stable payment amout (DMPs sound fine, but what it the banks suddenly decide they do want interest?).

In short, I've got around £70k of unsecured debt but thankfully I'm in a well paid job.

I'm not entirely sure what the purpose of this post was, so: Hello!

bedhair

Hello and welcome!
You are definately in the right place for some great advice.
Try posting a SOA (sticky at the top) and people will be able to advise you further.
Well done for taking the first step.

KipKip_2

Hi Blackbug

welcome to MSE!

WEll done on taking the first steps twaords clearing your debt, and we're all here to help you with advice on your journey!

I dont really know much about IVA or DMP but im sure someone will come along shortly to help you !

KipKip

Horace

Hello Blackbug.

Why not post your statement of affairs so that we can see what is coming in, what is going out and ways to free up money to pay debts. https://www.makesenseofcards.com/soacalc.html

misspoppy

Hi

You should research IVA's thoroughly as many seem to want you to release equity after a certain amount of time. I think you should talk this through with a not for profit debt counsellor.

blackbug

Okay, I'll use that tool and see what numbers it comes up with. Thanks.

And thanks for the "hello"s

blackbug

This is what that tool says...


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.................... 1

Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 766
Secured/HP loan repayments.............. 80
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 52
Gas..................................... 32
Oil..................................... 0
Water rates............................. 19
Telephone (land line)................... 19 (includes internet)
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 90
Clothing................................ 5
Petrol/diesel........................... 145
Road tax................................ 12
Car Insurance........................... 41
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 40 (including food)
Buildings insurance..................... 22
Contents insurance...................... 0 (included)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 0
Entertainment........................... 5
Holiday................................. 0
Emergency fund.......................... 15
Smoking................................. 100
Total monthly expenses.................. 1590


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 3500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 131000...(766)......0
Secured Debt.................. 5000.....(80).......0
Total secured & HP debts...... 136000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco..........................9240......240.......0
Halifax........................8200......125.......0
Overdraft......................0.........0.........0
Mastercard.....................1250......40........0
Visa...........................11800.....295.......0
NR Loan........................29600.....175.......0
Barclays Overdraft.............1900......30........0
Barclays Loan..................1105......50........0
Total unsecured debts..........63095.....955.......-


Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 1,590
Available for debt repayments........... 810
Monthly UNsecured debt repayments....... 955
Amount short for making debt repayments. -145

Personal Balance Sheet Summary
Total assets (things you own)........... 3,500
Total HP & Secured debt................. -136,000
Total Unsecured debt.................... -63,095
Net Assets.............................. -195,595

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

bargainbetty

Hi,

You're not massively short of your monthly target. I hate to say it, but quitting smoking would help you hugely on that!

Do you have stuff you can Ebay, boot sale etc to bring in some immediate pennies? Have a really good root through all your cupboards and work out what you can use up and save on the regular outgoings too.

Do you have the option of getting a part-time job? Bar work, or a shift or two at weekends in a local shop? Gets you out and about, as well as bringing in money.

The next big one is card tarting. You haven't listed APRs on the cards, but the numbers don't look like low interest levels. Do you have enough space on any card (or split between them) to empty one of the smaller debts? You can check to see if you qualify for a low-life-of-balance transfer, and then fill it back up off the highest interest card. You still have the same debt, but you will spend less servicing it.

I hope this helps,
Good luck x

blackbug

bargainbetty wrote: »

You're not massively short of your monthly target. I hate to say it, but quitting smoking would help you hugely on that!

No, a lot of months I hit the target. Then something comes out of the blue to swipe my legs away. Like spending £1000 to fix up a car thinking it would last me years only to have almost everything in the heating system go shortly after. And yes, smoking. I gave up for five years a while back but started up again annoyingly after some personal issues got on top of me, I've reduced my smoking down a lot (by about £70). But I would like to quit some time, not even for financial reasons.

Do you have stuff you can Ebay, boot sale etc to bring in some immediate pennies? Have a really good root through all your cupboards and work out what you can use up and save on the regular outgoings too.

I've sold a lot of what I can lay my hands on around the house. So I think I'm out of options there. I've considered if there's anything I can make and sell on there.

Do you have the option of getting a part-time job? Bar work, or a shift or two at weekends in a local shop? Gets you out and about, as well as bringing in money.

My weekday work hours are irregular so I wouldn't be able to commit to a weekday second job. Weekend work I'm not sure about, but I'm unsure what I could do that is above minimum wage (I'm in the 40% bracket from my day job). But is an option, regardless of income.

The next big one is card tarting. You haven't listed APRs on the cards, but the numbers don't look like low interest levels. Do you have enough space on any card (or split between them) to empty one of the smaller debts? You can check to see if you qualify for a low-life-of-balance transfer, and then fill it back up off the highest interest card. You still have the same debt, but you will spend less servicing it.

Yes, I didn't have the rates to hand. I should state that Halifax, Mastercard and Visa are the cards. The rest are loans. Loans I've picked up along the way to clear card balances! I've done some card tarting, but there might be a few left.

I hope this helps

The conversation alone helps, let alone the advice. Thanks!

bargainbetty

This is why we are all here! I had some rough stuff, and the people here were all fab about letting me vent and offering useful advice.

Look, if you take and IVA or a DMP it will stay on your record a long old time. If you can do this yourself, and it sounds like you have the drive and financial position to do it, then I would try. Give it six months and re-assess your position?

PM me if you want to go over the card tarting. I've got my overall debt down to £600 on cards from £8k in a couple of years, and I have paid less than £200 interest the whole time! I hate giving those smug g*ts money.

Have a good one x

TurnaroundSue

Hi and welcome! You haven't put your house value into your assets box, and even though it doesn't change the monthly disposable income, it will make your net position look better and then in turn that will make you feel better.

Could you take in a lodger for a while which will help you pay off your debts? I'm not sure of the limit, but I know you can earn a certain amount through this means without having to pay any tax on it.

Good luck and well done for coming to the best place in the world for help, advice and support