Delayed Light Bulb Moment - HELP!!

tygar2

Hello Everyone. This is my first post but I have been reading tips on this wonderful site for a while. I need advise.

I actually had my light bulb moment a few months ago and am proud to say that in the first week of December I will be paying off my Virgin (MBNA) Credit card (33.9%)! The balance was £6500 in October. I have thrown everything at it and will have it gone by in time for Christmas! :T

The main problem is that my partner of 5 years (with whom I got in debt paying her school fees) graduated university a month ago and left me. I am now on my own....Time to get up and start marching......:mad:

Anyway below is my SOA. My question is do I move and crash on peoples sofas and slum it out for 2010 to reduce my debt by hopefully getting rid of one of the big ones or do I stay put and have some sort of stability and self worth (my rent is dirt cheap wonth find cheaper anywhere ever).The thought of leaving my small flat is destroying me inside. I will be homeless and have to sell off my few possessions and be uncertain where I live.However I am willing to do what I have to do. That is what Im debating. HELP!

Should I stay put and fiugure it out slowly or should I pull out all stops and possibly pay off Barclaycard loan by October but face the unceratinity and humiliation of crashing in friends and relative's houses? What should I do?

I want the hard but feasable option coz I have worked too hard on this to consider bankruptcy or DMP. Below are some additional facts:
Original debt in Sept 2007 was £56000 :eek:(contacted CCCS then, didnt like the sound of the DMP).
Debt as of September 2009 was £42000.
By next Week I will have it down to around £36000.
Did a credit score and my score is 428 (very poor).
My accounts are all up to date with no defaults.
Egg loan, Barclayloan and Barclaycard Loan all run till around September 2011 which will free up around £800/month.

I want the logical option. I have a small chance of overtime and can make occassional money via DJing. I am single, its all about me and I want this sorted!

I rather emotional hence I am asking for advise. Thank you all in advance!:A

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 2200
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 11
Satellite/Cable TV...................... 35
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 50
Petrol/diesel........................... 60
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 921

Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 1400
Total Assets............................ 3600

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
rbs overdraft..................1200......30........26
egg card.......................2650......60........17.9
cahoot loan....................6400......165.......17.9
barclays overdraft.............3500......20........9.9
egg loan.......................4500......235.......6.9
barclayloan....................5500......262.......13.9
barclaycard loan...............5500......296.......13.9
lloyds card....................950.......20........17.9
barclaycard....................6400......150.......13.9
Total unsecured debts..........36600.....1238......-

Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 921
Available for debt repayments........... 1,279
Monthly UNsecured debt repayments....... 1,238
Amount left after debt repayments....... 41
Personal Balance Sheet Summary
Total assets (things you own)........... 3,600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -36,600
Net Assets.............................. -33,000
Created using the SOA calculator.
Reproduced on Moneysavingexpert with permission, using IE browser.

RAS

tygar2 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1 ????
Number of cars owned.................... 1 _ do you absolutely need this?
Monthly Income Details
Monthly income after tax................ 2100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 2200
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 40 - this needs to be cut back - reduce now and then go PAYG
TV Licence.............................. 11
Satellite/Cable TV...................... 35 - you need to cut this down and then get rid - go freeview
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 50 - reduce this to £10 and wear what you have
Petrol/diesel........................... 60
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50 - do you have anything saved
Total monthly expenses.................. 921

Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 1400
Total Assets............................ 3600

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
rbs overdraft..................1200......30........26
egg card.......................2650......60........17.9
cahoot loan....................6400......165.......17.9
barclays overdraft.............3500......20........9.9
egg loan.......................4500......235.......6.9
barclayloan....................5500......262.......13.9
barclaycard loan...............5500......296.......13.9
lloyds card....................950.......20........17.9
barclaycard....................6400......150.......13.9
Total unsecured debts..........36600.....1238......-

Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 921
Available for debt repayments........... 1,279
Monthly UNsecured debt repayments....... 1,238
Amount left after debt repayments....... 41
Personal Balance Sheet Summary
Total assets (things you own)........... 3,600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -36,600
Net Assets.............................. -33,000
Created using the SOA calculator.
Reproduced on Moneysavingexpert with permission, using IE browser.

Hi

Wel done for starting this. What are limits on your cards?

gardis

Howdy

Sorry to hear about your relationship, though it sounds like you're a fighter )

I personally couldn't live with out a home- and I notice there is a child mentioned on your SOA, what would happen if you bunked elsewhere with the child?

I do think you could cut back on groceries and clothing for now.

We had a similar level of debt and a higher income but the only way we could survive (we have 2 children also) was through a self managed DMP. It has not only hugely improved our day to day living, reduced our stress and increased the quality time we all spend together but it has also enabled us to start making tracks in to paying it off properly. Our credit score was shot by the huge amount of available credit/debt anyway, so a few late payments vs peace of mind seemed a good balance for us.

tygar2

RAS wrote: »

Hi

Wel done for starting this. What are limits on your cards?

Hello

Thanks for the quick reply.

My cards are pretty much maxxed out. Car is essential for work and I am looking into reducing my phone bill to £20/month within 2 months but cannot at the moment coz orange wont let me. The Cable T.V is a sky contract (broadband, landline,T.V) which runs out in April and includes line rental. The clothing allowance I can live without and I have £600 of emergency cash with the local credit union.

thanks for trying to help.

tygar2

gardis wrote: »

Howdy

Sorry to hear about your relationship, though it sounds like you're a fighter )

I personally couldn't live with out a home- and I notice there is a child mentioned on your SOA, what would happen if you bunked elsewhere with the child?

I do think you could cut back on groceries and clothing for now.

We had a similar level of debt and a higher income but the only way we could survive (we have 2 children also) was through a self managed DMP. It has not only hugely improved our day to day living, reduced our stress and increased the quality time we all spend together but it has also enabled us to start making tracks in to paying it off properly. Our credit score was shot by the huge amount of available credit/debt anyway, so a few late payments vs peace of mind seemed a good balance for us.

Thanks for the quick reply. I made an error. I do not have children! Its just me and my mess! I was offerred a DMP by MBNA but told it would impact my credit file for 6 years.

I m thinking my situation will improve in less than two years (3 loans run out and free up £800/month) but the trade off is two years of hardship if I stay put! Or maybe a year of hell if I leave my home and throw absolutely everything at this (I reckon I will have approximately £350/month extra to throw at my debt every month meaning I could create some kind of snowball - trade off? Uncertain quality of life!!. I just dont know!!

Maybe Im missing something about DMPs. Please advise coz my credit rating is really poor anyway but am thinking it will improve within 2 years as oppossed to a 6 year mark on my file? Have I got it wrong? Please advise and thank you!

talana

Other assets............................ 1400

If you don't mind me asking, what are these other assets.
Could you not cash them out (whatever they are) and use those funds to pay down the debts?

Cash.................................... 1000

Also the £1000 you have in the bank is actually losing you money when you simultaneously have such debts.
Please use it to pay off debt.

gardis

I'm uncertain how the DMP truelly affects the credit rating. My husband managed to get a small car loan last month though (£5k) after our last car died and was un fixable. This is less than a year in to a DMP. Does that help at all? His credit file has one default from MBNA on it, if we'd realised that was the case we'd have worked to pay that debt off soonest.

As it happens, we've cleared one over draft (£750) 1 loan (£8k) and 1 credit card (£400) since March thanks to the DMP. We even have (wait for it) money to buy each other christmas presents this year (gasp) that'll be the first time since we met 8 years ago! After a long, stressful period of debt weighing heavy on our shoulders, a bad credit file almost seems a blessing to us. I realise it is a big step to take and not for everyone. But for me at least, having a plan helped my state of mind.

DVardysShadow

Gut feeling, your rent is so cheap, stay put if you can. If you try and cut down on that, you are as you say dependent on friends sofas and that only goes so far - you might end up having to rent somewhere more expensive.

tygar2

talana wrote: »

If you don't mind me asking, what are these other assets.
Could you not cash them out (whatever they are) and use those funds to pay down the debts?



Also the £1000 you have in the bank is actually losing you money when you simultaneously have such debts.
Please use it to pay off debt.

Hi. The other assets is my disco equipment which I use to try and make extra cash. I've downsised it already and will sell the lot if buisness fizzles out.

The £1000 is made up of £600 I have with the local credit union and £400 cash which will go to my payments.

With the state of my affairs am I better off leaving home and slumming it for year and hopefully pay off around £5000 or am I better off staying put and just making the minimum payments till my loans are paid off in 2011?

The indecision is killing me! Also can someone tell me the true effect of a DMP? Is there a long term impact? If so, how long? How long does it take a bad credit file to recover?

Im living as though Im on a DMP anyway (but paying interest) and meeting my minimum payments so am wondering if I should just formalise things and get peace of mind, stay in my home and hopefully freeze interest

or if I should carry on as I am indefinately as I am iving on the edge making at least the required minimum payments to avoid having a DMP mark on my credit file until my loans are paid in 2011

or if I should throw my all into my repayments and give up my home and few belongings to accelarate repayments for a year. With this route I am hoping to repay the Barclaycard loan (Current balance £5300) within the next year which will free up £296/month which will go towards further snowballing.
A friend has offered me a small spare room rent free for 4 months then £300/month (see why I say my flat is cheap?). However it increases my commute to work by an hour and I lose my independence, furnishings (ebay sale!),self worth and freedom - ah well!
By cutting out my rent and bills I am hoping to have £300/month extra (raising about £2000 in 6 months) I also estimate getting around £700 from my security deposit and sale of white goods and furniture Selling my dj gear would possibly raise another £1000 all of which (approx £3700) which should be about enough to barclaycard loan which is now reducing in balance by about £200/month anyway and is estimated to have a balance is around £3900 in June 2010)

The downside of this wonderful plan is that I will lose everything.Emotions and fear of the unknown are getting in the way which is why Im asking.

So...just how bad is a DMP on your credit file? Is my situation bad enough to warrant one? (Will have extra cash in 2011). Im single and want to take responsibility so am not looking for an easy way out. How long does it stay on your file? How do future lenders view it? Which do you think is the best route for me? Im asking coz I plan on getting a mortage at some point within the next 4 years. MBNA told me the payment management plan they offerred me would stain my credit file for 6 years!!

Many thanks

tygar2

DVardysShadow wrote: »

Gut feeling, your rent is so cheap, stay put if you can. If you try and cut down on that, you are as you say dependent on friends sofas and that only goes so far - you might end up having to rent somewhere more expensive.

You hit the nail on the head! Thats whats killing me! That's my gut feeling too but Im struggling to keep calm as this debt situation is driving me mad! I keep feeling I can do a little bit more! I feel like I should give it my all! It costs me about £530/month to live here inc bills. The avarage houseshare room price is around £350/month! How much is the approx £200 saving really worth?!!! The main problem is that I have been offered 4 months rent free! - Should I be looking a gift horse in the mouth? Can I afford to? Im so confused!!

Queen.Bess

Hi tygar, and welcome!

Personally I would stay put, as stated in post #8, you would be relying on friend generosity and you wouldn't be independent. Looking at your outgoings, you've answered my mobile phone and sky query, but have you compared your utility bills as they seem a little high. I live with DH in a 2 bed mid-terrace and our 3 main bills (gas, elec and water) are £15 DD and we're in credit on all of them.

Just a thought - do you have contents insurance at all as you've not listed it? I'm thinking mostly about your disco equipment and maybe other valuable items.

Also, and tell me to naff off if it's too sensitive, but is there anyway you could speak to your ex and get her to pay some of the fees you so very kindly paid out for her? I would be most agrieved if I was you!

Finaly, tygar, I wish you all the best and keep in touch!