I need help so badly

DevonGirl

LittleMissSkint wrote: »

I have enough in the house to do the next 2 or 3 days, after that I have nothing until Monday 19th as I had to pay MBNA to stop them calling me every 20 minutes. I have already borrowed so much off my mum to keep us going but it seems I will have no option.

ramblingtree wrote: »

I would say (although I'm no expert) if you're already defaulting then spend the money on food and unplug the phone. If family can help ok, but MBNA come after your family in terms of essentials.

I agree with Rambling Tree. MBNA can go whistle!!! When I first started my DMP (debt managment plan) some of my creditors would ring numerous times a day and their script would always say something like.. "I see you are £xxx behind in your payments with StupidBank - can I take a payment from you today"... It was easy at first to say NO and go through my debt schedule details, but after the 88th time you get a little bored!! I personally went online to all my accounts and removed my home phone number and hey presto, no more calls! It's nothing short of harrassment.

So please, with phone silenced or unplugged, take some time to get your paperwork together. Even if you just divide it into piles of creditors and then arrange it in date order, it's a start! If you have enough energy, maybe work out a Statement of Affairs (SOA) - there is a Sticky on this forum if you need help. You need to see exactly how much is coming in and going out per month. I know you've done a rough one in your earlier post, but the SOA will make sure you don't miss anything out. It's pretty sobering looking at the end figures, but it will help the professional advisor you're going to tomorrow to see what's going on.

I really hope everything works out for you :grouphug:

dancingfairy

There is a letter on here to get creditors to write to you only - will see if I can find it - if they persist in phoning you then they can be fined or have their financial licence removed - however unplugging the phone in the short term is proabably a very good idea -as you have discovered they will bully you into paying them and you need to start with the basics - roof, electric, gas, food etc and MBNA are at the bottom of the queue right now.
Will be back with the letter. Hang on.
df

Here we go : it's post number 4
http://forums.moneysavingexpert.com/showthread.html?t=963087
The important thing is do not sign it as some companies have been known to erm magic your signature onto things you have not signed so inital it or print your name or type it but do not sign it.

LittleMissSkint

dancingfairy wrote: »

Firstly I would advise filling out the SOA on this site:

You seem to have included most things on your budget already but if you fill that in 1) it will make sure you haven't forgotten anything - eg tv licence, prescriptions, clothes, holidays/presents/ dentists , car mot, car repairs etc etc
and 2) it will dothe sums for you - always handy.

O.K you've already had some advice whichis briliant -good start. SO National Debtline recommended a DAS and what did CCCS recommend if not a DAS? they must have some suggestion.
From what I know you need to get a really good look at your figures - you need to decide what you think is the best course of action based on what the professionals have said. It does appear from what has been said that you may not have enough spare income for a DAS so hence why I asked what CCCS advised.
I would go through the SOA thing though and put in everything you have forgotten to get a clear picture as you need to make sure your budget is liveable for the future as if you forget things it can throw you off i nthe future - make sure you account for everything. If you post it here it might give a few ideas.

df

CCCS said to send severe financial difficulty letters to the creditors and ask them to take token payments in the short term until we find a way to increase our income. I have been trying for months to increase our income and I can't. I don't want a short term solution I need to get something sorted once and for all. Here is the SOA: You were right I had missed things I think. I hope it is correct.

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................ 2700
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2700
Monthly Expense Details
Mortgage................................ 574
Secured/HP loan repayments.............. 272
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131
Electricity............................. 94
Gas..................................... 94
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11
Mobile phone............................ 10
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 500
Clothing................................ 30
Petrol/diesel........................... 30
Road tax................................ 37
Car Insurance........................... 17
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 20
Other child related expenses............ 440
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 30
Total monthly expenses.................. 2361

Assets
Cash.................................... 0
House value (Gross)..................... 87000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 92000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 87000....(574)......0
Hire Purchase (HP) debt ...... 9000.....(272)......0
Total secured & HP debts...... 96000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide.....................940.......40........0
Egg............................19000.....150.......0
Tesco Card ....................5200......55........0
Northern Rock..................15000.....154.......0
MBNA...........................10000.....139.......0
Coventry Loan..................18000.....144.......0
Council tax Arrears............2000......120.......0
Tesco Loan.....................15000.....279.......0
Total unsecured debts..........85140.....1081......-

Monthly Budget Summary
Total monthly income.................... 2,700
Expenses (including HP & secured debts). 2,361
Available for debt repayments........... 339
Monthly UNsecured debt repayments....... 1,081
Amount short for making debt repayments. -742
Personal Balance Sheet Summary
Total assets (things you own)........... 92,000
Total HP & Secured debt................. -96,000
Total Unsecured debt.................... -85,140
Net Assets.............................. -89,140

dancingfairy

Oh and don't worry about christmas yet - let's get you sorted on the right road first - there are some great threads on cheap things to/buy/make to make sure christmas is special and what your kids need is time spent together - even if it's a twilight walk looking at christmas lights, what actually matters is sorting things out, having a roof over your head and food and family around you.
Oh and let's not get ahead of ourselves about losing the house yet - start at the begining - one step at a time.
df

LittleMissSkint

dancingfairy wrote: »

Oh and don't worry about christmas yet - let's get you sorted on the right road first - there are some great threads on cheap things to/buy/make to make sure christmas is special and what your kids need is time spent together - even if it's a twilight walk looking at christmas lights, what actually matters is sorting things out, having a roof over your head and food and family around you.
Oh and let's not get ahead of ourselves about losing the house yet - start at the begining - one step at a time.
df

Thank you, I really do appreciate it. I just get all in a state. I totally agree it's so important that my kids are happy, the family is happy, fed, clothed and have a roof over our heads. We will all be so much happier when this is over.

whood

Keep your head up things will be fine.

dancingfairy

Right:
http://www.aib.gov.uk/MainNav/Services/debtorportal have a look here- I found it from the Scottish Goverments website and is all about the different debt solutions in Scotland - although the CCCS and National Debtline should be able to talk you through all the options as well.
There aren't that many people on here from Scotland (well not that many threads that relate to Scottish stuff) though - you can also try posting your SOA on the bankruptcy board - give me a minute and I will link you over there.
http://forums.moneysavingexpert.com/forumdisplay.html?f=136
You can do a debt management plan (DMP) with your 300 pounds a month left over to give to the creidtors - basically you pay your bills and what's left over is split fairly between your creditors - this is one solution although with your level of debt this would take a long time to pay off even if they all stopped interest and charges (which is what you ask them to do in a dmp).
Hopefully the website I have provided will help or the bankruptcy board as I don't know anything about Scottish debts- sorry.
Best of Luck getting it sorted though.
df

dancingfairy

Hang on - what's the 440 a month - other child expenses - can you break this down for us a bit please.
Thanks.
df

LittleMissSkint

dancingfairy wrote: »

Hang on - what's the 440 a month - other child expenses - can you break this down for us a bit please.
Thanks.
df

Yeah sorry, the £40 is for what I have to pay for my little girl to attend the local council nursery (they charge for snack) and the £400 is the maintenance for his other kids, I couldn't find a better category to put it under?

mothsinmywallet_2

I noticed from your SOA that your gas and electric are enormous - are you paying arrears? If not, you could see if you can shop around for a better deal. We pay £70 a month for both. Also run round turning lights off, don't use tumble dryer etc. There is also no child benefit included - do you get any?

Please don't be disheartened - small steps will give you back some control. There is really no point beating ourself up about past mistakes - you have made the first steps to sorting this out. Be brave! Bottomless help and support on these forums x