Struggling with monthly payments

ste1406

Hi everyone.

I have finally decided that trying to juggle my monthly payments is becoming a real struggle and I need to face up to my debts. I am not really sure how I go about this and have posted a Statement of Affairs showing my budget.
Do I need to go through a debt management company to deal with my creditors or can i do it myself. If I can get this sorted out I feel it will be a weight off my shoulders as I am being bombarded with letters and phone calls about missed payments but realise I can't bury my head in the sand hoping they will go away.
Any advice would really be appreciated.

Statement of Affairs and Personal Balance Sheet:-

Household Information:-
Number of adults in household.................... 2
Number of children in household.................. 3
Number of cars owned.............................. 1

Monthly Income Details:-

Monthly income after tax.......................... 1260
Partners monthly income after tax.............. 0
Benefits................................................ 698
Other income......................................... 0
Total monthly income.............................. 1958

Monthly Expense Details:-

Mortgage.............................................. 455
Secured/HP loan repayments.................... 42
Council tax............................................ 92
Electricity............................................. 55
Gas..................................................... 40
Water rates.......................................... 25
Telephone (land line).............................. 15
Mobile phone......................................... 25
TV Licence........................................... 12
Satellite/Cable TV.................................. 22
Internet Services................................... 20
Groceries etc. ...................................... 440
Clothing............................................... 50
Petrol/diesel......................................... 140
Road tax.............................................. 20
Car Insurance....................................... 38
Car maintenance (including MOT)............. 10
Other travel (School Bus Fare)................. 20
Other child related expenses (School Dinners for 2)... 56
Medical (prescriptions, dentist etc)........... 10
Buildings insurance................................. 11
Contents insurance................................ 11
Life assurance ...................................... 7
Other insurance..................................... 20
Presents (birthday, christmas etc)............ 20
Haircuts............................................... 15
Entertainment....................................... 40
Emergency fund.................................... 10
School Trips/Activities............................ 12
Total monthly expenses.......................... 1733

Assets:-

House value (Gross)...................80000
Car........................................ 3000
Total Assets............................ 83000

Secured & HP Debts:-

Description.........................Debt............Monthly.......APR

Mortgage...................... ....63000...........(455).........5.49
Secured Debt......................5000...........(42)...........5.49
Total secured & HP debts......68000

Unsecured Debts

Description....................Debt......Monthly...APR

Capital One Card...............2000......90.......28.4
Capital One Card...............1600......70.......28.8
Capital One Card...............340.......17........26
Aktiv Capital....................1100......12........0
Barclays Overdraft............1000......10........0
Alliance & Leicester...........2400......90........10.9
Halifax Card.....................2300......23........15.9
Bank of Scotland Card.......7100......98........15.9
Associates Card...............1700......65........23.9
Total unsecured debts......19540.....475.......

Monthly Budget Summary

Total monthly income...............................1,958
Expenses (including HP & secured debts).....1,733
Available for debt repayments................... 225
Monthly UNsecured debt repayments.......... 475
Amount short for making debt repayments.. -250

Personal Balance Sheet Summary
Total assets (things you own)........... 83,000
Total HP & Secured debt................. -68,000
Total Unsecured debt.................... -19,540

Net Assets................................... -4,540

Tixy

Hi Ste

Sorry for the brief post - will look through your SoA in detail when I get home this evening - in the meantime you say you are getting hassled by creditors - how much are you in arrears by? Do you have arrears on any priority bills such as mortgage, council tax or utilities?

ste1406

Tixy wrote: »

Hi Ste

Sorry for the brief post - will look through your SoA in detail when I get home this evening - in the meantime you say you are getting hassled by creditors - how much are you in arrears by? Do you have arrears on any priority bills such as mortgage, council tax or utilities?

many thanks for your reply. I have no arrears on any priority bills, the only arrears I have at present are a missed payment on two of the capital one cards and a missed payment on the bank of scotland card but they have sent me letters and telephone calls chasing these. i don't really know what to do because i don't want to tell them that i will meet the required payment when i can't. i just seem to be struggling from month to month.

MrsPorridge

Hi and welcome to the site. Well done on taking the first step and filling out the SOA. Just a couple of things I've noticed (others will be along shortly).

I appreciate that there are 2 adults and 3 kids, but £440 per month and £56 per month is a awful lot of money on food. I spend £150 ish for 2 adults and 1 child. Do you or your partner cook from scratch? Can't you do packed lunches for the children to take to school? Have a look on the Old Style forums for ideas for meals, low cost and grocery challenges.

I think your satellite/cable TV will have to go for the moment, also maybe the clothing and the emergency fund.

What is the "other insurance" for?

WASHER

ste1406 wrote: »

Hi everyone.

I have finally decided that trying to juggle my monthly payments is becoming a real struggle and I need to face up to my debts. I am not really sure how I go about this and have posted a Statement of Affairs showing my budget.
Do I need to go through a debt management company to deal with my creditors or can i do it myself. If I can get this sorted out I feel it will be a weight off my shoulders as I am being bombarded with letters and phone calls about missed payments but realise I can't bury my head in the sand hoping they will go away.
Any advice would really be appreciated.

Statement of Affairs and Personal Balance Sheet:-

Household Information:-
Number of adults in household.................... 2
Number of children in household.................. 3
Number of cars owned.............................. 1

Monthly Income Details:-

Monthly income after tax.......................... 1260
Partners monthly income after tax.............. 0
Benefits................................................ 698
Other income......................................... 0
Total monthly income.............................. 1958

Monthly Expense Details:-

Mortgage.............................................. 455
Secured/HP loan repayments.................... 42
Council tax............................................ 92
Electricity............................................. 55
Gas..................................................... 40
Water rates.......................................... 25
Telephone (land line).............................. 15
Mobile phone......................................... 25 _ you can't afford this
TV Licence........................................... 12
Satellite/Cable TV.................................. 22 - you can't afford this
Internet Services................................... 20 - Can you get a cheaper deal than this?
Groceries etc. ...................................... 440 - seems alot, can you reduce this by £25 this month and reduce further next, look at it as a challenge.
Clothing............................................... 50 - This is high, use supermarkets and primark
Petrol/diesel......................................... 140
Road tax.............................................. 20
Car Insurance....................................... 38
Car maintenance (including MOT)............. 10
Other travel (School Bus Fare)................. 20
Other child related expenses (School Dinners for 2)... 56 - This is alot, unless you qualify for free lunches, I'm sorry to say you can't afford this, packups are far far cheaper.
Medical (prescriptions, dentist etc)........... 10
Buildings insurance................................. 11
Contents insurance................................ 11
Life assurance ...................................... 7
Other insurance..................................... 20 - what's this?
Presents (birthday, christmas etc)............ 20
Haircuts............................................... 15
Entertainment....................................... 40
Emergency fund.................................... 10
School Trips/Activities............................ 12
Total monthly expenses.......................... 1733

Assets:-

House value (Gross)...................80000
Car........................................ 3000
Total Assets............................ 83000

Secured & HP Debts:-

Description.........................Debt............Monthly.......APR

Mortgage...................... ....63000...........(455).........5.49
Secured Debt......................5000...........(42)...........5.49
Total secured & HP debts......68000

Unsecured Debts

Description....................Debt......Monthly...APR

Capital One Card...............2000......90.......28.4
Capital One Card...............1600......70.......28.8
Capital One Card...............340.......17........26
Aktiv Capital....................1100......12........0
Barclays Overdraft............1000......10........0
Alliance & Leicester...........2400......90........10.9
Halifax Card.....................2300......23........15.9
Bank of Scotland Card.......7100......98........15.9
Associates Card...............1700......65........23.9
Total unsecured debts......19540.....475.......

Monthly Budget Summary

Total monthly income...............................1,958
Expenses (including HP & secured debts).....1,733
Available for debt repayments................... 225
Monthly UNsecured debt repayments.......... 475
Amount short for making debt repayments.. -250

Personal Balance Sheet Summary
Total assets (things you own)........... 83,000
Total HP & Secured debt................. -68,000
Total Unsecured debt.................... -19,540

Net Assets................................... -4,540

I can see why you are struggling, you are short by £250 per month. If you saved on those things I have commented on above, you could save £100 per month.

Can I suggest you call the CCCS, a debt charity for advice, its free and they won't judge you.

In the meantime, I suggest you offer token payments to all unsecured creditors (your priority besides food, is the mortgage/council tax/gas/elec/water and any secured loans), the rest can whistle, you cannot give what you haven't got. I will get you templete letters in a mo which you can send off to your creditors, you will get phone calls, do not agree to anything over the phone with them, better still get an answering machine or caller display and write a letter to them telling them all communication in writing only please. DO NOT SIGN THE LETTERS - TYPE YOUR NAME ONLY.

WASHER

http://forums.moneysavingexpert.com/showthread.html?t=963087

Post 52 is the letter you need to offer token payments.

ste1406

WASHER wrote: »

http://forums.moneysavingexpert.com/showthread.html?t=963087

Post 52 is the letter you need to offer token payments.

Many thanks for looking at my post and giving your advice, it is much appreciated. I do need to look at our spending habits, especially in the clothes and food department and the sky will have to go. i'll also look around for cheaper deals for my internet.
the £20.00 other insurance is £12.99 per month boiler cover to npower as my boiler is quite old, approx 12 yrs, and it broke down twice last year, i can't afford to replace it but i'm sure the call out fees alone would warrant paying this, the other £6.99 per month is for homeserve plumbing and drainage cover.

Tixy

Hi Ste

Can't think of much to add in addition to the suggestions already made.

With regards to boiler cover you may want to look at this article http://www.moneysavingexpert.com/utilities/boiler-insurance to see if you can get cheaper cover elsewhere.

ste1406

thanks everyone for the replies. it is much appreciated.
when i send my letters to my creditors, should i included token payments. i have done my own dmp and worked out what pro rata payments should be, should i offer pro rata payments and send them, or should i just send the letters to start with and see what responses i get. thank you.

ste1406

ste1406 wrote: »

thanks everyone for the replies. it is much appreciated.
when i send my letters to my creditors, should i included token payments. i have done my own dmp and worked out what pro rata payments should be, should i offer pro rata payments and send them, or should i just send the letters to start with and see what responses i get. thank you.

anyone!!:o

Tixy

I think people do either Ste.

You may find that some won't ever formally agree to your payment level but its always best to start paying even if they don't. They always cash the payments. You could either send them with your letter or wait and send them after payday (or whenever in the month you intend to pay them going forward). As long as you stick to whatever you tell them you will do.