Help Please

Pool

Thanks for this, I was actually paying Council Tax over 12 months but when the council sent me letters saying I was behind I said I intended to pay over 12 months as it helped me budget better, they were having absoloutely none of it!

I will look closely into the CCA's

I do check my meter readings every quarter.

My meals mainly consist of Soups/Pasta very low priced items.

The house I am paying tax on is in the correct band and always has been.

Pool

Sorry about this BUMP

Pool

Anyone, please help.

MrsTinks

your water rates are way high for one person, you can't afford a holiday, you can probably reduce your grocery spend, don't buy any new clothes for a while and reduce your mobile package.

Looking at the numbers you need to either up your income or look at a DMP - Debt Management Plan. The prime problem here is that you entered into an IVA... My personal experience of IVAs is very limited unfortunately but maybe someone else can help you with that.

Could you move somewhere cheaper until you have paid off your debts? Back home maybe?

slig

Hi, here are my thoughts on your spending, I think there is room for you to free up a lot more cash each month. Others can advise on the best course of action re your debts, it may be worth you contacting a debt charity like CCCS too.

Pool wrote: »

Summary

Monthly Budget SummaryAmount(£)
Total monthly income1,300 Can you increase your hours/get a few bar shifts at the weekend/bring in a few pounds via ebay?
Monthly expenses (incl. HP & secured loans)1,250
Available for debt repayments50
UNsecured debt repayments0
Amount left after debt repayments50

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own)1,500
Total Secured & HP Debt-0
Total Unsecured Debt-15,000Net Assets-13,500
Household Information

Number of adults in household 1
Number of children in household
Number of cars owned 1
Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax1300
Partners monthly income0
Benefits0Other income0
Total monthly income1300

ExpensesAmount(£)
Mortgage0Secured/HP loan payments0
Rent550 This is a lot, any chance your could move somewhere cheaper? Eg a shared house
Management charge (leasehold property)0
Council tax80
Electricity30
Gas30
Oil0
Water Rates30
Telephone (land line)11
Mobile phone40 This is really expensive, when your contract ends can you get one of those good PAYG free text/internet deals instead? Any chance your network will let you go down a tariff for now?
TV Licence12
Satellite/Cable TV0
Internet services10
Groceries etc.100 This could be reduced a bit - I spend £80 a month and that is having whatever I want. You say you eat pasta and soup, but if you are buying ready made sauces and tinned soup you are wasting money. If you cook from scratch you could improve your finances and your diet. Head over to the old style board for ideas.
Clothing30 Cut this to £0 for the time being
Petrol/diesel100
Road tax12
Car Insurance45
Car maintenance (including MOT)25
Car Parking0
Other travel40
Childcare/nursery0
Other child related expenses0
Medical (prescriptions, dentists, opticians etc.)14
Pet Insurance/Vet bills0
Buildings Insurance0
Contents Insurance13
Life Assurance0
Other Insurance0
Presents (birthday, christmas etc.)20 This can be reduced I think
Haircuts8
Entertainment25 This is not bad, but for now you could probably shave a few more pounds off it
Holiday25 I don't think you can afford a holiday at the moment
Emergency Fund0
Total monthly expenses1250

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage0(0) 0Secured & HP Debt totals0- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)EGG LOAN800000HSBC OVERDRAFT + LOAN550000BLACK HORSE LOAN150000Unsecured Debt totals150000-

Asset DescriptionValue (£)Cash0House Value (Gross)0Shares and bonds0Car(s)1500Other assets (e.g. endowments, jewellery etc) 0Total Assets1500

Pool

Thanks, I will contact CCCS when I get home tonight.

Comments - Salaried work, Not allowed a second job as I operate machinery and that would be in breach of my contract with current employer. Moving back home is not an option, this is the reason I am in debt in the first place as I moved out as soon as I finished my A levels.
I am currently looking for a smaller property, to save approx 100 per month. House share if I'm honest brings a lot of trust issues into play in terms of the others you are living with, I don't think I could deal with that. Clothing includes things like Re-soling shoes etc, I don't think this is excessive in the slightest (maybe wrong!!)

Thanks for your comments

GeorgeUK

Rent...550
This is getting close to half your wage. Is there anywhere cheaper that you could get or possibly share with someone?

Electricity...30
Gas...30
These aren't too bad, but if it does increase, go to the price comparison sites. Make sure you turn off anything electric that you are not using rather than leaving it on standby. Try using energy saving lightbulbs too.

Water Rates...30
Do you use a water hippo or something similar to use less water when flushing the cistern?

Mobile phone...40
PAYG? Can you change to a cheaper tariff?

Telephone (land line)...11
Satellite/Cable TV...0
Internet services...10
Is this a package deal?

Groceries etc...100
Try to make everything from scratch - it's cheaper. The oldstyle board has alot of good food advice - if you don't have a slow cooker it might be worth investing in one.

Clothing...30
Can you make do for now or reduce this? Do you look in charity shops for bargains?

Petrol/diesel...100
Other travel...40
Would it be possible/cheaper to use alternative/public transport?

Car Insurance...45
Contents Insurance...13
Again, check the comparison sites to see if you are getting the best deal.

Presents (birthday, christmas etc.)...20
Can't really afford this much every month.

Holiday...25
Emergency Fund...0
I'd reduce the holiday fund and put some away for emergencies.


Are you able to get a 2nd job or evening work?
Do you have any old stuff in the house that you want rid of and could possibly ebay? You'd be surprised what some people will buy.

You may not have enough funds available right now for the charities to set up a Debt Management Plan (DMP) for you, but they should be able to advise as to the best way forward. CCCS and Payplan are the 2 main ones we recommend. I believe CCCS have a debt remedy questionnaire that you can fill in to see what may be advised.

If your debts have been passed to a Debt Collection Agency (DCA) and are no longer with the original creditor, you will usually not be getting interest or charges added to the balance. You may be able to set up your own DMP and pay a token amount each month to the creditors. The alternative to this is that they may try to get a CCJ from the court if you do not pay. The judge would decide what a fair amount for you to pay would be and you would be required to pay this or bailiffs may be called in.

If the debt is not enforcable or you are able to defend any court claim (due perhaps to unlawful charges having been added) then you may be able to either not pay for another 4.5 years after which the debt would probably become statute barred or possibly be able to make a reduced Full and Final settlement offer. Right now i think checking the CCA's to see if they are enforcable would be your best option.

If you make a CCA request from a creditor, it is a legal requirement for them to comply within 12 working days. If they do not produce the CCA then the debt is unenforcable until a properly executed CCA is produced. They are however allowed to provide a reproduction without your signature as a CCA which is why i was wondering if you had a copy of the original to see if all the required terms are on it. If they were to try to enforce the CCA, they would need to go to court where they would need to produce the original signed CCA which would need to have all the terms on it.

Here's some older threads that deal with this.
Details: http://forums.moneysavingexpert.com/showthread.html?t=578486
Legislation: http://forums.moneysavingexpert.com/showthread.html?t=1496721
The user never-in-doubt also posted a thread with various template letters you may be able to utilise.
http://forums.moneysavingexpert.com/showthread.html?t=2060575