Cannot Afford Loan Repayments

nikki2804

Hiya I've been pointed to this thread by the loans thread and I would be most greatful for any advice.

Just copying and pasteing old post.

Okay well I wrote this thread out, saved in and it disappeared. So apologies if it reappears.

My partner had previously taken out a computing course through Advent Computers. We have looked into cancelling this but after taking advice from CAB etc we have accepted that we will need to pay for the finance. (Still think it was miss-sold but hey)

Now a lot has changed since he took out this course, originally he was living at home with parents etc. Now we have a baby, our own house and bills to pay etc.

Advent arranged in-house finance for him at £150 p/m repayments. We have written to them countless times asking to reduce the payments but they will not accept that we cannot pay. They did agree to drop the payments to £50 for 3 months but then it will jump right back up.

Now, I finish maternity leave in November but will be going back part time. I simply cannot afford to pay the childcare costs if I went back full time. So our income will drop to about £1500 p/m. This includes our minimal tax credits and our Child Benefit.

Monthly Incomings £1500

Monthly Outgoings

Rent £495
Council Tax £113
Car £165
Phone/Broadband £17.95
Mobile £25
Contents Insurance £5
Road Tax (savings Stamps) £10
Baby Milk £40 (at least)
Nappies £40
Groceries £80/£100
Gas/Electricity £100 (taken by DD)
Petrol £40 (minimum)
Welcome Finance £136
Loan Store £56
Credit Card £100
TV License £12

Total £1454.95

So I have £45.05 left incase of emergencies. This doesn’t take into account any clothes etc that I would need for my baby.

Does anyone have any advice for what I can do? Hopefully the above shows how little money we have to pay the finance.

Someone has advised ceasing all payments and letting it go as far as court, this way we could show a judge just how little we have. Apparently a judge would have the power to wipe the debt. I dont like this route though because I dont want to go damaging credit ratings plus im not to sure its all that true.

Please can some advise? Ill be most greatful for any information.

Billy_two_speakers

Do you mean http://www.adventtraining.co.uk

The company you name is a brand of computer sold by PC World

nikki2804

Yeah sorry its Advent Training. They sell computing course, I got confused. Im blaming lack of sleep and baby brain!!!

lossed

nikki2804 wrote: »

Hiya I've been pointed to this thread by the loans thread and I would be most greatful for any advice.

Just copying and pasteing old post.

Okay well I wrote this thread out, saved in and it disappeared. So apologies if it reappears.

My partner had previously taken out a computing course through Advent Computers. We have looked into cancelling this but after taking advice from CAB etc we have accepted that we will need to pay for the finance. (Still think it was miss-sold but hey)

Now a lot has changed since he took out this course, originally he was living at home with parents etc. Now we have a baby, our own house and bills to pay etc.

Advent arranged in-house finance for him at £150 p/m repayments. We have written to them countless times asking to reduce the payments but they will not accept that we cannot pay. They did agree to drop the payments to £50 for 3 months but then it will jump right back up.

Now, I finish maternity leave in November but will be going back part time. I simply cannot afford to pay the childcare costs if I went back full time. So our income will drop to about £1500 p/m. This includes our minimal tax credits and our Child Benefit.

Monthly Incomings £1500

Monthly Outgoings

Rent £495
Council Tax £113
Car £165
Phone/Broadband £17.95
Mobile £25
Contents Insurance £5
Road Tax (savings Stamps) £10
Baby Milk £40 (at least)
Nappies £40 ( i worked full time and washed my babies nappies) ?
Groceries £80/£100
Gas/Electricity £100 (taken by DD)
Petrol £40 (minimum)
Welcome Finance £136
Loan Store £56
Credit Card £100
TV License £12

Total £1454.95

So I have £45.05 left incase of emergencies. This doesn’t take into account any clothes etc that I would need for my baby.

Does anyone have any advice for what I can do? Hopefully the above shows how little money we have to pay the finance.

Someone has advised ceasing all payments and letting it go as far as court, this way we could show a judge just how little we have. Apparently a judge would have the power to wipe the debt. I dont like this route though because I dont want to go damaging credit ratings plus im not to sure its all that true.

Please can some advise? Ill be most greatful for any information.

I am no expert and just new to this my self. I have bought clothes from the charity shop before if i have needed something and could not afford new. took it home washed it , softland it, pressed it and worn it or dressed my grand daughter in it and when people have said oo i like that" i just say "thankyou". Fabulous baby clothes can be bought for 50p to £5. the reason i dont mind picking up baby clothes at the charity shop is. I have put lots of clothes in the charity shop belonging to DGD that Have been bought new and she has only wore 2 or 3 time. If you feel embarrassed about this, dont tell anyone your going and dont tell then you have been.

nikki2804

I've not got a problem buying items from charity shops. In fact I bought lots of bigger sizes when matalan (i know not a charity shop) had a huge clearance (lots of stuff 50p to £2.00) and I've gotten baby clothes from a lovely woman on Freecycle. But I now understand why my mum used to moan that I never stopped growing!!! Hes 4 months and already in 6-9 months clothes because hes really long!!!

Using disposables is probably just personal preference but I was really ill when I came out of hospital so there were used for ease. May look into the washable ones. Anyone know where these are reasonably priced?

I should probably add that after my maternity ends I will be looking for a job at night. This way I can avoid paying Child Care Costs and still spend some precious time with my baby.

Already do party plan (both companies with no outley costs) but TBH there not doing so good atm as ive just started up. Avon is doing okayish. I do surveys, cash back sites etc. I'm trying desperatley to try and get some money put by. Ive ebayed everything that we don't use. I buy my own clothes from Ebay (i.e jumpers for Winter - I had none) since Primark have inflated there prices.

I am at college also doing a night course but I have checked and im not entitled to any bursaries .

Probably doesn't help that were trying for a deposit to try for a mortgage but were paying more for rent than what we would be for a mortgage.

Tixy

Have you tried negotiating a rent reduction with your landlord? If there are lots of empty properties to rent nearby the landlord may be willing to accept a little less for a guaranteed tenant? Maybe ask for 10% reduction for 12months? (You could even point out that it woul be cheaper to get a mortgage).

I have heard people say Lidl apparently do good cheap disposable nappies (I have no idea personally I don't have kids) but could be worth trying them?

Is the £165 car - a car loan or car expenses? If a loan where is car insurance?
You need to split out your debts from the household expenses. If you need to pay less than the contracted payments to any debt then really should treat all unsecured creditors the same and offer them all a bit less rather than one a lot less.
Can you do a list of your debt balances, the monthly payments and the interest APR.

nikki2804

Car Finance - £165 p/m (finishes September 2011)

Car Insurance was paid in a lump sum so not due until August 2010

Welcome Finance - £136 p/m (60% finishes June 2011 - partners consolidation loan)

Loan Store £56 p/m (again partners debt, disputing this as they won't provide statements and by my calculations should now be clear!)

Virgin CC - £100 p/m - will be clear in the next 4 months - 0% as a BT

Advent - wanting £150 p/m

Alo have a sofa and freezer on finance although these are 0% and equate to about £30 p/m

I think thats all the debt

My rent/landlord is through a tenancy company. They would just tell me to !!!!!! off - ive tried already

nikki2804

Also, if my partner and I got married (will only happen once the debt is long gone) would then get his "black marks" on my credit rating?

CLAPTON

nikki2804 wrote: »

Also, if my partner and I got married (will only happen once the debt is long gone) would then get his "black marks" on my credit rating?

getting married in itself makes no difference to credit ratings but having any joint debts or current a/cs will cause a financial association which will damage the 'better' credit rating.


Its best if you can post up a full SOA format here
http://www.makesenseofcards.com/soacalc.html

you need to include ALL the things you buy including all the one -offs or yearly things....like car insurance, MOT .. even if you have paid for this year you need to include an amount each month so you actually have the money saved up when you actually need it rather than just getting additional credit credit.

Also unless you include everything, its impossible to see the various realistic options for dealing with the debts as one can't see how much money is actually available for debt repayments

nikki2804

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 500
Partners monthly income after tax....... 1000
Benefits................................ 178
Other income............................ 0
Total monthly income.................... 1678
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 34
Rent.................................... 495
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11.75
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 6.25
Groceries etc. ......................... 90
Clothing................................ 20
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 3.95
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1128.95

Assets
Cash.................................... 0
House value (Gross)..................... 2618
Shares and bonds........................ 2000
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 7118

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 750......(34).......0
Total secured & HP debts...... 750.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Car Finance....................7.6.......165.......6.9
Virgin.........................263.......100.......0
Welcome Finance................2500......136.......60
Advent.........................5000......150.......7.9
Total unsecured debts..........7770.6....551.......-

Monthly Budget Summary
Total monthly income.................... 1,678
Expenses (including HP & secured debts). 1,128.95
Available for debt repayments........... 549.05
Monthly UNsecured debt repayments....... 551
Amount short for making debt repayments. -1.95
Personal Balance Sheet Summary
Total assets (things you own)........... 7,118
Total HP & Secured debt................. -750
Total Unsecured debt.................... -7,770.6
Net Assets.............................. -1,402.6
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.


Ok, doing that has made me realise its worse than what I thought.
I've missed off the Loan Store because I'm disputing that. No statements so I don't know whats owing or interest APR etc.

Savings cant be touched at all. The shares are my mums (im getting them as a present towards my house deposit)

RAS

nikki2804 wrote: »

Assets
Cash.................................... 0
House value (Gross)..................... 2618 - what is this ?
Shares and bonds........................ 2000 - if they are mum's these are not yours so do not list them
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 7118

What is the house value?