Debts and Sinking

WASHER

Looking at your SOA again, you don't appear to have much to cut back on other than the sky (I appreciate your views on pet insurance), you need to cut back initially somewhere to break even, you have a shortfall of £37 each month. You then have to consider if you can live within that SOA for the forseeable future, no holidays/no new furniture or appliances etc etc.

Personally I think its too tight to live on that SOA for a long time without you or your wife getting fed up with the situation, I would be inclined to go the DMP route, they could reduce your outgoings to creditors, could get some of the interest if not all frozen and this will enable you to live a little. Yes it will affect your credit rating and could mean that you will have to save up for the washing machine if it breaks down, but repaying debts is never easy, why make it more difficult? The likes of the CCCS can and do make it easier for many people to repay the debts by using a DMP.

dancingfairy

Mortgage................................ 1153
Secured/HP loan repayments.............. 155
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 157
Electricity............................. 53 this and gas seem rather high combined - do you have a really old house? can you check you are with the best company on the best deal - check whether you can get these cheaper.
Gas..................................... 53
Oil..................................... 0
Water rates............................. 38 have you checked out a water meter? might be cheaper might not but worth a quick check
Telephone (land line)................... 29
Mobile phone............................ 10
TV Licence.............................. 13
Satellite/Cable TV...................... 25 this could go if needs must
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 80
Road tax................................ 25
Car Insurance........................... 71 have you shopped around for this?
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 73
Buildings insurance..................... 14
Contents insurance...................... 14 have you shopped around for these? you may be able to get a good deal with them combined?
Life assurance ......................... 21
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2299

Well that's my 2p's worth on your SOA - I think the reasons for and against a dmp have already pretty much been covered already.
Good Luck with whatever option you go with.
df

Archie97

My wife and I have gone through and we will spend all weekend deciding on the plan we'll follow.

It's clear we can spend a lot less....so like Little Vic's I think we need to knuckle down and do it.

What a difference a few days make.

Thanks all

username2003

First the disclaimer - I am no expert at all, so if anyone else suggests I am wrong here, listen to them - the people who provide regular help on SOAs etc will know much more than me.

But have you thought about asking for a 1 month mortgage payment holiday? you could use the 1150 to pay off your smallest CC.

You would then next month have an extra 250 [what you currently pay on your smallest CC], to cover your shortfall and concentrate the additional 200 on the highest APR CC.

You would need to think about this very carefully, it will cost in the long run on your mortgage, but would seem to sort out your shortfall problem because 1 of the CCs is gone.

I'd be interested to know what others think of this .-I did something simililar in terms of paying off 1 debt even though it wasnt the highest APR to free up monies for other debt- at my LBM. [it was not a mortgage repayment though- you will need proper advice on the concequences of this.].

theoretica

Even without taking a mortgage holiday in a few months you will be clear of that smallest credit card and your finances should be easier.

Just one potential warning: I have read on here about people who wanted a DMP but were told that the charities could not help arrange one as the minimum payments could all, just, be met.

Archie97

:T I would once again like to thanks all of those who replied and gave us advice/help on this site.

My wife and I, like Little Vics, have also decided we will do this ourselves and in the past weeks what a transformation.

Our situation is not as tough as others and I'm also trying to help others where I can.

Learning.

tori.k

Archie97 wrote: »

Thank you ever so much for your quick reply Tixy.

Sorry that was an error on the £1153 and I've reduced the groceries, but our pets are receiving treatment and if we come out then no cover......couldn't do that love them to much and one of the few things left that make me smile. I've put the SOA on again. We've just renewed our phone so this was first payment estimate. Thereafter, I expect it to drop.

IT was a debt management company DissolveDebt, who were helpful.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2798
Partners monthly income after tax....... 300 any chance of uping this? take a look at the uping income thread for some good ideas
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3098
Monthly Expense Details
Mortgage................................ 1153
Secured/HP loan repayments.............. 155
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 157
Electricity............................. 53 this is massive for 2, compare prices and go thru a cashback site EG quidco and look on the oldstyle board for ideas to cut back on gas & electric
Gas..................................... 53 see above
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 29 go for an all service provider tele/tv/bband can be done for less than £40
Mobile phone............................ 10
TV Licence.............................. 13
Satellite/Cable TV...................... 25
Internet Services....................... 15
Groceries etc. ......................... 200 this can be brought down look to the oldstyle board for some good ideas for meal planning and making the most of what you have
Clothing................................ 20
Petrol/diesel........................... 80
Road tax................................ 25
Car Insurance........................... 71
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 73
Buildings insurance..................... 14
Contents insurance...................... 14
Life assurance ......................... 21
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2299

Assets
Cash.................................... 0
House value (Gross)..................... 222000
Shares and bonds........................ 0
Car(s).................................. 11200
Other assets............................ 0
Total Assets............................ 233200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 208000...(1153).....0
Secured Debt.................. 10000....(155)......7.9
Total secured & HP debts...... 218000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Load...........................16000.....168.......6.4
Credit Card TVisa..............1040......260.......0
CC NWest.......................1255......29........0
Overdraft......................3000......0.........0
CC TSB.........................4708......99........0
CC RBS.........................12700.....280.......0
Total unsecured debts..........38703.....836.......-

Monthly Budget Summary
Total monthly income.................... 3,098
Expenses (including HP & secured debts). 2,299
Available for debt repayments........... 799
Monthly UNsecured debt repayments....... 836
Amount short for making debt repayments. -37
Personal Balance Sheet Summary
Total assets (things you own)........... 233,200
Total HP & Secured debt................. -218,000
Total Unsecured debt.................... -38,703
Net Assets.............................. -23,503

just thought id add my 2 pennies worth, do look at cashback sites like quidco is amazing how much money you can make back.
with "belts in and and a lot of willpower" you can easy make the books balance as long as you are both on the same page moneywise.
My personal view would be have four hard months to clear the visa, then as long as you dont add to the debt, do budget so that you can have a bit of a life even if its just a trip to the cinema (on a orange wednesday of course;))
good luck and best wishes

dancingfairy

Fair enough - am glad you have made a decision. Do note that things can and do change over time so you may want to redo your SOA from time to time and if things become too difficult the option of the DMP would still remain and if things change you can always seek advice from the charities again.
Good Luck and I hope you become debt free soon and feel better now you are tackling it.
df

dancingfairy

Would also look at cheap things you can do as well/or even free!
Depending on what you like doing you can go for walks, visit museums, etc - with christmas coming up you can see lights being turned on, go to carol concerts - lots of things, free talks, join your local library (or make more use of it), take up photgraphy - if you've got a digital camera and a few cards you'll be away, hm pizza for treats / hm curries - etc or even having a cheap bottle of wine at home rather than a meal in an expensive restaraunt. - The trick is to be creative.
Good Luck
df

Thrifty_Pixie

Hi there..the good news is that you've seen the light and have come to the right place. There are some really friendly and knowledgeable people on this site, and if you're determined to change your situation they will help a lot

Apart from the things that others have mentioned, does your OH work for that £300? Or is that benefits of some sort? If it's the latter I would seriously suggest that they need to find a job as you really can't afford to only have one salary coming in.

Also, I see you have two cars worth around £11k? Do you NEED two cars? If your OH isn't working I see no reason for two. Also, they seem quite pricey for your level of debt - maybe sell them and replace with cheaper ones.

Just my 2p's worth. Good luck!