Ideas and Support needed to help clear debts.....

FedupofDebt_2

Hi Guys,
Apologies for no response's over the weekend, haven't been very well! Anyway, am back, so am now going to attempt to fill in the SOA - I look forward to your advice once I've posted it

Also, thanks Tixy - I will go through everything I have this evening and try and work out when last payments were made, and if debts are over and above 6 years old. Sorry for the short reply - am at work, and not really supposed to use net!

Will do SOA now. Thanks again everyone.x

FedupofDebt_2

Okay guys, here is my first draft of the SOA. This will need some tweaking, as I don't have details of my debts here at work with me, but here goes....

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................ 1136 I get paid every Friday, which doesn't help when trying to work out bills etc....
Partners monthly income after tax....... 0
Benefits................................ 400 This is Child Benefit and Tax Credits
Other income............................ 0
Total monthly income.................... 1536
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 320 Also paid weekly, it's £77 pw, but I pay £80 to make the figures easier
Management charge (leasehold property).. 0
Council tax............................. 68
Electricity............................. 30 This is a prepayment meter
Gas..................................... 30 This is also a prepayment meter
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 15
Mobile phone............................ 64 I know this seems expensive, but I have a Sim Only card for my brother atm, (he pays £34)
TV Licence.............................. 39 This is quarterly
Satellite/Cable TV...................... 44.5
Internet Services....................... 24.99
Groceries etc. ......................... 180
Clothing................................ 30 I don't save this for clothes, I buy as and when I need them
Petrol/diesel........................... 70
Road tax................................ 10 Again, I don't save, I buy when due
Car Insurance........................... 49 Inc breakdown
Car maintenance (including MOT)......... 30 I don't save this
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 8.99
Buildings insurance..................... 0
Contents insurance...................... 12.55
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 I don't save this,
Haircuts................................ 0
Entertainment........................... 57
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1243.03

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 900
Other assets............................ 0
Total Assets............................ 900

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
All Included...................10000.....0.........0
CCJ - Open Uni.................778.......30........0
Total unsecured debts..........10778.....30........-

Monthly Budget Summary
Total monthly income.................... 1,536
Expenses (including HP & secured debts). 1,243.03
Available for debt repayments........... 292.97
Monthly UNsecured debt repayments....... 30
Amount left after debt repayments....... 262.97
Personal Balance Sheet Summary
Total assets (things you own)........... 900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,778
Net Assets.............................. -9,878

Please, have a look, rip it to pieces, tell me what you'd change I'd appreciate it being looked at by somebody other than myself tbh. I don't think I have missed anything off...

Tixy

Hi fedup

Just want to check about your income figures - you have said this is weekly - to get the monthly figure in your SoA have you included it as 4times your weekly income or 4.33 times? (52weeks/12months).

Same question with benefit income.

Rent - you overpay by £3 per week - do you claim back the £156 at the end of the year? Or have 2weeks that you don't pay any?

Mobile - you pay £64, and your brother pays £34. Do you mean he repays £34 to you so that you overall outlay is only £30? If so then either reduce the figure to £30 or include £34 as other income. Does he pay you regularly and reliably? He might be better getting his own PAYG sim, easier for you and he might get a much cheaper deal with more mins and texts.

If TV licence is paid quarterly then you put 1/3 on the dd in the SoA so should be £13.

Landline, satellite and broadband total - £84.49 - this is way over the top, you should be able to get all in from one provider (or at most 2 providers for around £40). Shop around for a better deal as a prioirty or consider ditching satellite and just using freeview.

Groceries could be reduced a bit - should be able to feed 1 adult and child and a pet for £120 without having to do without much - check out the oldstyle board for tips of meal planning, drop a brand challenge, batch cooking from scratch. How old is your child btw?

Car insurance looks really high, especially on a car worth £900. Check comparsison sites to check you are getting a good deal. Also it may be cheaper to get seperate car ins and breakdown policies. (If switching use quidco to earn cashback).

Is your car maintenance (MOT, servicing, tyres etc) really £360 a year?

Is entertainment something specific or just a general guess? no haircuts?

You are actually showing a reasonable surplus of £262 each month. Are you making any repayments towards your other debts? If not then do you know what you are spending this money on? If the answer is no then you need to start a spending diary immediatley and write down every thing you buy (whether 50p or £50) keep a record for a couple of months and then you can start to see where it is going and hopefully cut it down.

Just some thoughts for you to consider
Tixy

DebtKiller

FedupofDebt wrote: »

Telephone (land line)................... 15
Satellite/Cable TV...................... 44.5
Internet Services....................... 24.99

Just the bit I spotted & thought I'd comment on. You are paying £85 pcm for telephone, tv and internet at present. I have telephone, internet and tv with Virgin Media for around £30pcm (fluctuates based on phone usage), although I did have to negotiate that over the phone (having seen very attractive rates for new customers and being a bit miffed that I was paying way more).

You could definitely look to reduce this, although your ability to negotiate may be hampered by the length of time you have been in a contract with your supplier.

DebtKiller

Tixy got in before me but very sound advice, especially:

Tixy wrote: »

Hi fedup
You are actually showing a reasonable surplus of £262 each month. Are you making any repayments towards your other debts? If not then do you know what you are spending this money on? If the answer is no then you need to start a spending diary immediatley and write down every thing you buy (whether 50p or £50) keep a record for a couple of months and then you can start to see where it is going and hopefully cut it down.

FedupofDebt_2

Tixy wrote: »

Hi fedup

Just want to check about your income figures - you have said this is weekly - to get the monthly figure in your SoA have you included it as 4times your weekly income or 4.33 times? (52weeks/12months).

Hi Tixy, no I didn't multiply by 4.33, I just multiplied by 4, and the same for the benefits as well, just straight by 4.

Tixy wrote: »

Rent - you overpay by £3 per week - do you claim back the £156 at the end of the year? Or have 2weeks that you don't pay any?.

No, I don't have any rent free weeks, I just pay £80, as its a nice round number, plus it keeps my account clear...

Tixy wrote: »

Mobile - you pay £64, and your brother pays £34. Do you mean he repays £34 to you so that you overall outlay is only £30? If so then either reduce the figure to £30 or include £34 as other income. Does he pay you regularly and reliably? He might be better getting his own PAYG sim, easier for you and he might get a much cheaper deal with more mins and texts.?.

Yes, well I only lent him my old Sim Only Sim, as he's working overseas for a while, and we thought it'd be cheaper for him to use it, rather than his PAYG sim, for the duration. But yes, he does pay up to be fair, so I will reduce my mobile outlay to £30...

Tixy wrote: »

Landline, satellite and broadband total - £84.49 - this is way over the top, you should be able to get all in from one provider (or at most 2 providers for around £40). Shop around for a better deal as a prioirty or consider ditching satellite and just using freeview..?.

I know this is expensive, but I've not long moved house and BT and Sky have me tied to contract, although i could reduce the Sky bill, as at the moment I have sports and movies and don't need either tbh, that should bring sky down to about £19 a month. My BB, I have unlimited downloads, thats why it's £24.99, as i download quite a lot of music (cheaper than buying CDS!)

Tixy wrote: »

Groceries could be reduced a bit - should be able to feed 1 adult and child and a pet for £120 without having to do without much - check out the oldstyle board for tips of meal planning, drop a brand challenge, batch cooking from scratch. How old is your child btw?..

I will check out those boards, thank you :-) She is 9 now. I have reduced my food bill an awful lot. I got a shock last month, as I went through my bank statement (which I never normaly do) and added up all the supermarket transactions...I had spent, in a 5 week period, a total of £511 - I have no idea how, but it shocked me into considering online shopping, and only once a month

Tixy wrote: »

Car insurance looks really high, especially on a car worth £900. Check comparsison sites to check you are getting a good deal. Also it may be cheaper to get seperate car ins and breakdown policies. (If switching use quidco to earn cashback).?..

My actual insurance is £39 a month, I have no no claims, so thats why it is quite high, although I've been driving a long time now. I will definately have a look at quidco - but don't really want to swap insurers until its due for renewal as could do with the NCD...also, my breakdown is with AA, insurance is Swiftcover, I just grouped the two together.

Tixy wrote: »

Is your car maintenance (MOT, servicing, tyres etc) really £360 a year?

No, my services are £130 a year, MOT £45, I just guessed at a figure, like I say, I don't save for these things, I just pay when they are needed.

Tixy wrote: »

Is entertainment something specific or just a general guess? no haircuts?

Absolutely, the £57 was for my gym membership, which I cannot cancel, they have me tied to contract atm.

Tixy wrote: »

You are actually showing a reasonable surplus of £262 each month. Are you making any repayments towards your other debts? If not then do you know what you are spending this money on? If the answer is no then you need to start a spending diary immediatley and write down every thing you buy (whether 50p or £50) keep a record for a couple of months and then you can start to see where it is going and hopefully cut it down.?

Yes I know, and I have no idea, I don't honestly think it helps that I get paid weekly, as I get myself into a right mess, and as I get paid on the Friday, its almost gone on the Monday. I can't carry on with living this way. I am not currently paying anything off the debts, that's through non being 100% sure on who I owe. I had a lot of paperwork when I moved house, that I can no longer find, so i'm hoping they will write to me again, so I'll know who I owe...I'm in a bit of a mess really. I'll definately do a spending diary, that's a great idea. I don't think its helped by my withdrawals from the cash machine, which gets spent at work on lunch, coffee etc..

Thanks again Tixy, you've been brilliant. x

FedupofDebt_2

DebtKiller wrote: »

Just the bit I spotted & thought I'd comment on. You are paying £85 pcm for telephone, tv and internet at present. I have telephone, internet and tv with Virgin Media for around £30pcm (fluctuates based on phone usage), although I did have to negotiate that over the phone (having seen very attractive rates for new customers and being a bit miffed that I was paying way more).

You could definitely look to reduce this, although your ability to negotiate may be hampered by the length of time you have been in a contract with your supplier.

Hi Debtkiller, yes I know, its extorniate isnt it. Unfortunately I cant get Virgin in my area at the moment, I can definately reduce my Sky bill, by having movies and sports knocked off, but my BB is the highest due to it being unlimited downloads, which I use for music etc. I wouldn't have the phone line if I could get away with it, as I use my mobile for everything, but apparantly I need the phone line for BB or something

ladybez

Hi, and welcome to the boards. One suggestion if you don't quite know where your money is going is to start a spending diary, where you detail every thing you spend, whether an 80p magazine of a £100 shop. You will me amazed where it goes and should highlight some areas you can save.

Tixy

FedupofDebt wrote: »

Hi Tixy, no I didn't multiply by 4.33, I just multiplied by 4, and the same for the benefits as well, just straight by 4.



No, I don't have any rent free weeks, I just pay £80, as its a nice round number, plus it keeps my account clear...

Yes, well I only lent him my old Sim Only Sim, as he's working overseas for a while, and we thought it'd be cheaper for him to use it, rather than his PAYG sim, for the duration. But yes, he does pay up to be fair, so I will reduce my mobile outlay to £30...

I know this is expensive, but I've not long moved house and BT and Sky have me tied to contract, although i could reduce the Sky bill, as at the moment I have sports and movies and don't need either tbh, that should bring sky down to about £19 a month. My BB, I have unlimited downloads, thats why it's £24.99, as i download quite a lot of music (cheaper than buying CDS!)

I will check out those boards, thank you :-) She is 9 now. I have reduced my food bill an awful lot. I got a shock last month, as I went through my bank statement (which I never normaly do) and added up all the supermarket transactions...I had spent, in a 5 week period, a total of £511 - I have no idea how, but it shocked me into considering online shopping, and only once a month

My actual insurance is £39 a month, I have no no claims, so thats why it is quite high, although I've been driving a long time now. I will definately have a look at quidco - but don't really want to swap insurers until its due for renewal as could do with the NCD...also, my breakdown is with AA, insurance is Swiftcover, I just grouped the two together.

No, my services are £130 a year, MOT £45, I just guessed at a figure, like I say, I don't save for these things, I just pay when they are needed.

Absolutely, the £57 was for my gym membership, which I cannot cancel, they have me tied to contract atm.

Yes I know, and I have no idea, I don't honestly think it helps that I get paid weekly, as I get myself into a right mess, and as I get paid on the Friday, its almost gone on the Monday. I can't carry on with living this way. I am not currently paying anything off the debts, that's through non being 100% sure on who I owe. I had a lot of paperwork when I moved house, that I can no longer find, so i'm hoping they will write to me again, so I'll know who I owe...I'm in a bit of a mess really. I'll definately do a spending diary, that's a great idea. I don't think its helped by my withdrawals from the cash machine, which gets spent at work on lunch, coffee etc..

Thanks again Tixy, you've been brilliant. x

Hi

Its probably more complicated to get a sytem in place when you are paid weekly but have a lot of monthly bills. I'm sure some people who are could give you some advice as to how they make their money work but in the meantime I would suggest you have 2 bank accounts, a weekly account and a monthly account. So your weekly wages and benefits get paid into the weekly account. Then work out your weekly costs that you incur every week (such as rent, groceries, petrol money, elec & gas and maybe a bit for bits & bobs), then set up a standing order for the remainder of your wages to be paid over to the monthly account. Then you set up all the monthly dds from this account.
Ideally you'll also have a 3rd account for savings/emergency fund which you pay a SO to each week.

At the moment you have understated your income as in some months you have 5paydays. So on average your monthly income would be £1230 and you benefits £433 - so thats an extra £127 each month - good news!

Also how long have you been paying an extra £3 rent? I know it seems like its not a lot but it does add up over a year, e.g it would pay for your TV licence for a year or pay for a takeaway each month. You need to at some point either claim this back or pay less, no reason your landlord should have more money than entitled to.

I'd also suggest you try to start some savings for if and when your creditors write to you, so that you may be in a position to make some reduced full & final settlement offers. (But remember not to offer anything until you've checked whether a debt is statute barred;)).

The spending diary is essential - either have a little notebook and carry it round with you or some people set up a spreadsheet (but if you do this make sure you don't forget things by asking for and keeping receipts).

Coffee and lunches at work all need to be cut right down. Start taking your own lunches and either a bottle of water or a flask. Or (depending on your job) could you take in a jar of coffee to keep costs down.

Good luck, I'm sure once you start to take more control of your money, and pay a bit more attention to where its going you feel much better.

FedupofDebt_2

Hi Tixy,

Again, thank you for spending the time to help – I appreciate it. Now then, the multiple bank accounts idea sounds fantastic, but my credit rating is that bad at the moment, that I can’t open anymore. I have one currently with the Halifax, and they won’t even let me upgrade it, even though I’ve been with them years, and they can see how much money goes through a month L

I’ve always paid the extra £3, well I only moved into the house at the end of July, so not that long really, it’s owned by a Housing Association, so I won’t be over paying really, I guess if I let it build up enough, I can have a rent free week soon…..I’ll have a chat with them.

I will start a savings account, I think I have one already (empty mind you), so I shall start transferring a little bit across every week. I will definitely do the spending diary, I’ll get myself a little notebook and take it around with it, it will definitely be interesting to find out where my money goes…I’ll no doubt be shocked when I see it in black and white.

I have this week, started taking my lunch with me to work, it will save a fortune, and as I work in an office, it’s easily done too, save on those 30p tea’s and 50p coffees throughout the day! There is a water machine here also, so that’s free.

I will definitely start to feel happier once I have control of my finances again yes J When I get home this evening, I’m going to redo my SOA, I’m going to try and work out who I owe money too and how much, and work on the amounts I spend on bills. Would you mind having another luck through once complete?

Also, would you say I need to use CCCS or Payplan with regards to my debts, or could I manage things myself?

Thanks again, you’re a star.