OMG it really is that bad!

esnooky

think i need to explain a few things!!!

I have a joint mortgage with my mum she lives in the Granny flat we had built on the back of the bungalow. so my figures do look strange.

Basically i pay the morg,tv licence broadband and she pays ctax, gas and elec, and pet and household insurance!! and food.

Basically all was well until my mum got herself into massive debt and ended up going to pay plan, however that was not before i thought i could bail her out and ended getting myself into that old position of having to live on the credit cards as each month all my money went on credit card payments.

I got a new more stressful job to increase my income and lost my Child Tax credit !! so that really didn't help!

now because i have a joint mortgage with my mum my credit rating is now blinking awful!! I have never defaulted on a debt however have been late!!! so that is just as from what i can tell!

I have heard of these credit card solicitor thingys that say they can reduce your credit card debt because of something to do with the credit agreement?? anyone have a clue.

I admit I got myself into this and need to get myself out!!! i have a 9year old daughter and at the moment no life as everyday is worry stress and praying for some divine intervention to get me out of this. I am happy to consolodate my loans and know i can afford to pay a loan if only i could get one!!! please please please help!!!!!!

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1917
Partners monthly income after tax....... 0
Benefits................................ 143
Other income............................ 0
Total monthly income.................... 2060

Monthly Expense Details
Mortgage................................ 780
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 25
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 14
Car Insurance........................... 22.4
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
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........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 978.52


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 600
Other assets............................ 0
Total Assets............................ 600


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 149000...(780)......0
Total secured & HP debts...... 149000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
C CARD.........................9663.08...220.......23.9
C CARD.........................9321.54...150.......20.65
C CARD.........................11768.4...353.......20
PERS LOAN......................5929.5....237.1.....6.6
C CARD ........................3833.81...106.9.....32
Total unsecured debts..........40516.33..1067......-


Monthly Budget Summary
Total monthly income.................... 2,060
Expenses (including HP & secured debts). 978.52
Available for debt repayments........... 1,081.48
Monthly UNsecured debt repayments....... 1,067
Amount left after debt repayments....... 14.48

Personal Balance Sheet Summary
Total assets (things you own)........... 600
Total HP & Secured debt................. -149,000
Total Unsecured debt.................... -40,516.33
Net Assets.............................. -188,916.33

Glitterari

esnooky wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1917
Partners monthly income after tax....... 0
Benefits................................ 143
Other income............................ 0
Total monthly income.................... 2060

Monthly Expense Details
Mortgage................................ 780
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0 - does your mum pay water bill too?
Telephone (land line)................... 10
Mobile phone............................ 25 - is this the cheapest deal you can get?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 5
Groceries etc. ......................... 0
Clothing................................ 0 - is mum buying this?
Petrol/diesel........................... 60
Road tax................................ 14
Car Insurance........................... 22.4 - again the cheapest? You say below your car is only worth £600 - is this insurance fully comp?
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
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 - nothing here?
Haircuts................................ 0
Entertainment........................... 0 - nothing here?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 978.52


Assets
Cash.................................... 0
House value (Gross)..................... 0 - how much is the house worth?
Shares and bonds........................ 0
Car(s).................................. 600
Other assets............................ 0
Total Assets............................ 600


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 149000...(780)......0
Total secured & HP debts...... 149000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
C CARD.........................9663.08...220.......23.9
C CARD.........................9321.54...150.......20.65
C CARD.........................11768.4...353.......20
PERS LOAN......................5929.5....237.1.....6.6
C CARD ........................3833.81...106.9.....32
Total unsecured debts..........40516.33..1067......-


Monthly Budget Summary
Total monthly income.................... 2,060
Expenses (including HP & secured debts). 978.52
Available for debt repayments........... 1,081.48
Monthly UNsecured debt repayments....... 1,067
Amount left after debt repayments....... 14.48

Personal Balance Sheet Summary
Total assets (things you own)........... 600
Total HP & Secured debt................. -149,000
Total Unsecured debt.................... -40,516.33
Net Assets.............................. -188,916.33

Well, you have enough coming in to meet all of your minimum repayments but you don't seem to have allowed for things such as birthdays and entertainment.


What is Mum's situation now? Is she working? In receipt of benefits? Is her debt gone now? It would probably be useful to know what she's paying on her side of things to make sure that you're paying the least possible on things like utilities, food, etc. Might be worth re-doing the SOA with her figures worked in.


Just a few things we could do with knowing to get a better idea of what to suggest.

The solicitors you're talking about sound like the ones that either claim to write off your debts (debt relief orders - DRO's) or reclaim PPI (Payment Protection Insurance) for you. You can reclaim the PPI yourself for free and if it's about DRO's you wouldn't be eligible as you own your own home and your debt is over £15k.

Consolidation is generally never advised or recommended.

GeorgeUK

Those "credit card solicitor thingys" are probably best avoided. The government was so concerned by them that they are regulated by the Ministry of Justice. Basically all debts that require a credit agreement must have certain terms on the agreement if it was made before April 2007. If the terms are not all there, the debt may be unenforcable. If you were to challenge them, they would almost certainly put a default on your account if you stopped paying.

Alot of people here do it themselves as a CCA request only costs £1. Creditors have been known to take this to court though so we usually only advise this if you have defaulted on payments and are being threatened with court action from the creditors.

As you are meeting your payments, i would just continue as you are for now.

Do you know the details of your mothers DMP?
Is it only her unsecured debts she has defaulted on?

Both of you could start reclaiming any bank or credit card charges you have had as well as the payment protection insurance if it was missold.

About the only other thing i can suggest to reduce the debt is to switch the mortgage to interest only. There isn't really anything else you could cut back on.

It woudl be best to pay the minimum to all debts and throw anything left at the 32% ccard. Not only does this have the highest APR, but also the lowest balance. If you can get this to a nil balance you may be able to get a balance transfer offer as an existing customer - this shouldn't require a credit search either.

Do you have any old credit cards that you don't use?
You should see if you can get a BT offer with these.