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Dazed and Confused by information!

Hi everyone!

This is my 1st post so bear with me! I've been lurking on the boards for the past few days as my OH and I decided to tackle the debt after being refused a consolidation loan to lump everything together (i'll do a SOA tonight and post it) due to me having too much credit used already - i laughed at the bank manager when he said 'well if you reduced your credit card that you have with us then we could help you' erm thats why am here!. Basically over the past ten years we have lived the life of riley, been all over the world etc etc, you know the story! But am 29 and said at the beginning of this year that we needed to get handle on things as we are also wanting to start a family :D. We both earn decent monthly incomes but our minimum payments are not good and we could never actually make any headway to clear the balance. I tried to speak to Lloyds re them perhaps lowering the interest on my card but i may as well have spoken to the dog :rotfl:. The debts have mounted to just over £40,000 :eek:that includes CC's, a Loan, OD and a store card and I feel quite ashamed to be honest and we have had several arguments re my spending and his drinking guinness BUT we both agree that we are BOTH to blame. The 1st thing we did 4 weeks ago was to stop smoking :A, went through what we owe and now am at the stage of researching DM, I will admit i was sceptical about a plan maybe it was pride but they do say 'Pride comes before a fall'.

However my question to you guys who are doing DMP now.
1. Do i go with a fee based company or non-profit ie CCCS or Payplan - i had thought about CCCS after reading your posts but went onto the IVA forum and most people were with other orgs
2. DMP or IVA?
3. Will i become sane again????

ta muchly for any advice, i like to know the facts before i dive in to summat.

Will def post SOA later (as am at work at the mo!)

Thanks
LBM - September 09 :T
DMP start - November 09
Total Debt - £42K :eek:
They say golf is like life, but don't believe them. Golf is more complicated than that. ~Gardner Dickinson
«1

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi Helz and Welcome to DFW

    1. I would definatley stay start by getting advice from either CCCS or Payplan. They are the only people you will get impartial advice from (well except for us of course!). You never want to do a DMP with a commerical fee charging company. If an IVA is right for you then you can look at this again (but thats part of 2)
    2. Impossible to say from this info you have given. IVAs are only suitable for a relatively small number of people. Personally I would investigate a DMP first but if CCCS say either an IVA or even bankruptcy is the way forward then I'd consider those options as well. The problem with IVAs is a proportion seem to fail which then leads to bankruptcy. A DMP is in theory much more flexible to changing circumstances.
    3. Yes definatley - I guarantee you will!

    Will keep a look out for your SoA. Might be worth marking the SoA as to which debts are in your name, which are his and which are joint as it may be that you each need a different solution.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Thanks Tixy!

    My OH has been inundated with phone calls from these companies and i am extremely wary. BUT i keep reading all of the good stuff from CCCS and payplan so going to give them a call later

    Will def do that with the SOA, most of its in my name like!
    LBM - September 09 :T
    DMP start - November 09
    Total Debt - £42K :eek:
    They say golf is like life, but don't believe them. Golf is more complicated than that. ~Gardner Dickinson
  • Hi

    This is my first post can someone please tell me where I can find this SOA form to complete.

    Thank you
    Beckie
  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi Beckie

    Use this link http://www.makesenseofcards.com/soacalc.html and it takes you to the form.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • RAS
    RAS Posts: 35,828 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Helz1980 wrote: »
    Thanks Tixy!

    My OH has been inundated with phone calls from these companies and i am extremely wary. BUT i keep reading all of the good stuff from CCCS and payplan so going to give them a call later

    Will def do that with the SOA, most of its in my name like!

    Hi

    The debt charities are listed here: http://www.moneysavingexpert.com/loans/debt-help-plan#help

    Payplan is not a debt charity but does offer fee-free debt management plans.

    I would strongly advise that you take this a step at the time; and suggest that if IVA companies are riging you all the time it might be because they can smell £5-7000 fees a mile off.

    Please remember that an IVA is for 5 years andif it fails then you may have to go bankrupt (it is an Insolvenecty arrangment after all). if there is any risk that you might get pregnant in next 5 years, you need to think long and hard before considering one.

    Also you can switch DMP providers but not IVA providers.
    If you've have not made a mistake, you've made nothing
  • gfplux
    gfplux Posts: 4,985 Forumite
    Part of the Furniture 1,000 Posts Photogenic Hung up my suit!
    Hello helz1970,
    You have taken a great step posting on this board.

    For additional advise and help why not look here http://www.cccs.co.uk/ and here www.nationaldebtline.co.uk/ They both offer help for FREE.
    Also here www.payplan.com/index.php




    Make out your SOA and post it here. (link - http://www.makesenseofcards.com/soacalc.html ) This will automatically total the numbers. It can be saved (see the help) and you can change it every day if you want.
    When making out your SOA (Statement Of Affairs) try not to guess at the figures, dig out the paperwork! However remember a partial completed one is better than none.
    It is in fact one of the most IMPORTANT things you will ever do to start on the road to recovery.
    If you want a lot of help on this forum, posting your SOA is the first and most important step. After it is done it is very easy to keep it up to date.
    In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with.
    If you post it on the forum answer the obvious questions before they are asked so you get immediate feedback, such as :-
    If there is “other” Income explain what it is
    Mortgage – interest only or not.
    What is the age of any children.
    Council tax is it over 10 or 12 months.
    Electricity and gas any arrears.
    Water rates meter yes or no.
    Mobiles, how many and when are the contracts up for renewal.
    If no contents insurance is it include with buildings insurance.
    If pets cost money, what are they.
    House or flat value, has it been valued by an Estate Agent and when.
    The more that can explain about the financial figures and circumstances the quicker the post will get advise rather than lots of questions.
    When you have posted it and it does not look right or you want to change it, do so and repost it.


    Examine yourself, is this really your “light bulb moment.” If you find plenty of reasons and excuses not to act immediately then the bulb has not come on properly. If you can not do without (this is a general list) - A Sky contract, Mobile Phones, Two cars, Lottery tickets, Air fresheners, Cloths for a year, Charity contributions, Savings for a child, Presents, Holidays, Fitness/Sports Membership, then again the bulb has not come on properly.


    Good Luck
    There will be no Brexit dividend for Britain.
  • Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 1689
    Partners monthly income after tax....... 1400
    Benefits................................ 0
    Other income............................ 300 (OH is a retained fireman)
    Total monthly income.................... 3389

    Monthly Expense Details
    Mortgage................................ 664
    Secured/HP loan repayments.............. 163
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 98
    Electricity............................. 10
    Gas..................................... 10
    Oil..................................... 55
    Water rates............................. 24.25
    Telephone (land line)................... 40.5 (internet included - BT)
    Mobile phone............................ 60 (both mobiles, no option of provider due to where we live - middle of nowhere!)
    TV Licence.............................. 11.95
    Satellite/Cable TV...................... 39
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 50
    Petrol/diesel........................... 180
    Road tax................................ 20
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 90
    Car parking............................. 15
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 14
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 22.5
    Contents insurance...................... 0
    Life assurance ......................... 54
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 76
    Haircuts................................ 25
    Entertainment........................... 250
    Holiday................................. 50
    Emergency fund.......................... 0
    Golf membership......................... 80 (OH is Captain)
    Dog..................................... 5
    Dentist................................. 10.5
    Home Friendly Society................... 25
    Total monthly expenses.................. 2372.7

    Assets
    Cash.................................... 0
    House value (Gross)..................... 135000
    Shares and bonds........................ 0
    Car(s).................................. 5800
    Other assets............................ 0
    Total Assets............................ 140800

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 123000...(664)......3.5%
    Hire Purchase (HP) debt ...... 6000.....(163)......0%
    Total secured & HP debts...... 129000....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Virgin Credit Card.............6171.9....101.3.....16.6
    Virgin Credit Card.............5669.44...71.6......16.6
    Lloyds.........................9084.74...260.......20.9
    Lloyds Overdraft...............3500......0.........?
    HFC............................249.......19.68.....19.92
    Northern Rock Loan.............3000......98........?
    Dorothy Perkins card...........1100......43.88.....29.9
    Post Office....................4692......113.......0
    Lloyds.........................5696......170.......20.9

    Summary of Monthly Income, expense and surplus

    Total monthly income: £
    Expenses (incl. HP & secured debts): £
    Available for debt repayments: £
    Unsecured debt repayments: £ Surplus (shortfall if negative) £

    Personal Balance Sheet Summary
    Assets: £ Secured & HP Debt £
    Unsecured Debt £ Net Assets £

    right thats it, i think and looking at that it doesnt make sense, because we have surplus at the end. Could be because we have only quit smoking 1month?

    Helz
    LBM - September 09 :T
    DMP start - November 09
    Total Debt - £42K :eek:
    They say golf is like life, but don't believe them. Golf is more complicated than that. ~Gardner Dickinson
  • spoke to payplan and they said they couldnt help us but said we should pull together our own informal arrangement with our creditors. Then OH was talking to some fee-company and looking at their figures we would be paying them 5grand!!

    Going to speak to CCCS in the morning

    Am really confused by my SOA cos we must just be drastically overspending! unless i have filled it in wrong

    from a still dazed and confused
    LBM - September 09 :T
    DMP start - November 09
    Total Debt - £42K :eek:
    They say golf is like life, but don't believe them. Golf is more complicated than that. ~Gardner Dickinson
  • tallyhoh
    tallyhoh Posts: 2,307 Forumite
    Part of the Furniture 1,000 Posts
    I think that your SOA is missing some figures, could you try posting it again?
    Tallyhoh! Stopped Smoking October 2000. Saved £29382.50 so far!
  • Tixy
    Tixy Posts: 31,455 Forumite
    Helz1980 wrote: »
    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 1689
    Partners monthly income after tax....... 1400
    Benefits................................ 0
    Other income............................ 300 (OH is a retained fireman)
    Total monthly income.................... 3389

    Monthly Expense Details
    Mortgage................................ 664
    Secured/HP loan repayments.............. 163 Is this a car?
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 98
    Electricity............................. 10 seems suprisingly low?
    Gas..................................... 10
    Oil..................................... 55
    Water rates............................. 24.25
    Telephone (land line)................... 40.5 (internet included - BT)
    Mobile phone............................ 60 (both mobiles, no option of provider due to where we live - middle of nowhere!)
    TV Licence.............................. 11.95
    Satellite/Cable TV...................... 39 drop some channels? or switch to freeview?
    Internet Services....................... 0
    Groceries etc. ......................... 200 could be reduced a little more
    Clothing................................ 50 could cut out for a short while
    Petrol/diesel........................... 180
    Road tax................................ 20
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 90 seems high? is this right figure?
    Car parking............................. 15
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 14
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 22.5
    Contents insurance...................... 0
    Life assurance ......................... 54
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 76 high, but best to be realistic if thats what you spend - hopefully you can work on reducing this
    Haircuts................................ 25
    Entertainment........................... 250 could be reduced, anything specific here?
    Holiday................................. 50
    Emergency fund.......................... 0
    Golf membership......................... 80 (OH is Captain) if you have this then definatley consider reducing other entertainment budget
    Dog..................................... 5
    Dentist................................. 10.5
    Home Friendly Society................... 25 is this savings? how much saved?
    Total monthly expenses.................. 2372.7

    Assets
    Cash.................................... 0
    House value (Gross)..................... 135000
    Shares and bonds........................ 0
    Car(s).................................. 5800
    Other assets............................ 0
    Total Assets............................ 140800

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 123000...(664)......3.5%
    Hire Purchase (HP) debt ...... 6000.....(163)......0% assume not really 0%
    Total secured & HP debts...... 129000....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Virgin Credit Card.............6171.9....101.3.....16.6
    Virgin Credit Card.............5669.44...71.6......16.6
    Lloyds.........................9084.74...260.......20.9
    Lloyds Overdraft...............3500......0.........? look on statements for APR
    HFC............................249.......19.68.....19.92
    Northern Rock Loan.............3000......98........?
    Dorothy Perkins card...........1100......43.88.....29.9 high rate - card to target first
    Post Office....................4692......113.......0
    Lloyds.........................5696......170.......20.9

    Summary of Monthly Income, expense and surplus

    Total monthly income: £ 3389
    Expenses (incl. HP & secured debts): £ 2373
    Available for debt repayments: £ 1016
    Unsecured debt repayments: £ 877.46
    Surplus (shortfall if negative) £138.54

    Personal Balance Sheet Summary
    Assets: £ 140800
    Secured & HP Debt £ 129000
    Unsecured Debt £ 39,163.08
    Net Assets £ -27363

    right thats it, i think and looking at that it doesnt make sense, because we have surplus at the end. Could be because we have only quit smoking 1month?

    Helz

    Hi Helz

    I have completed the summary info above with the figures from your SoA and made a few comments/suggestions on your expenditure.
    The problem most people have is that the write out a budget but don't realise exactly how much the are spending on 'bits and bobs' such as magazines, top up trips for food, lottery tickets, lunches at work, etc etc. The way to track down the missing surplus is to keep a spending diary for a couple of months, where you write down everything you spend (even just 50p on a bar of chocolate).

    Whilst your supermarket shop could be lower - you may find that if you do a spending diary you have actually been spending more historically, same for clothes (I note the DPerkins card).

    I expect Payplan couldn't help because of your surplus. You can manage your minimum repayments and if you can just make a few cutbacks you could start to really tackle your debts. You don't need a commercial debt company and an IVA would not be suitable for you. They are only interested in earning their fees.

    Whenever you are tempted to purchase something ask yourself do you really need it? At the moment you have combined overall liabilities of £27,363, so it might help to think that the money you earn is not actually yours and every purchase you make is with borrowed money.

    Ideally debts should be tackled highest APR first which would be your store card. However as a small boost some people like to tackle a small debt first - so your HFC would be a good example of this - if you stick to this budget (or improve it) that debt could be cleared in 2months.

    Hope this helps
    Tixy
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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