Finally my SOA HEEELLLLLPPPPP!

freda

Hi H8money

You are missing a lot of things on your SOA, which may explain why you keep goin g over that overdraft limit:


Car tax and insurance - How much will this be in Feb 2007? That is only 6 months away. You need to divid the total amount by 6, and start putting that amount aside each month. If you don't, you'll end up in more debt.
Car MOT - again, you need to save each month for when the bill comes in
Car parking
Car maintenance/servicing - save each month as above
Other transport (i.e. buses, trains)
Landline
Mobile
Internet
Christmas/presents
Entertainments / going out / takeaways
Clothes / haircuts
Pet insurance?
Medical/dental costs
Pension contributions?
Gym/mag subscriptions?
Emergency fund savings (essential)



As awful as it seems, you really must include all of the above that are relevant to you iun your SOA, even if it makes it look as if you are spending way more than you earn. This is because you need to know where you are starting from, and what you really need *realistically* to live on.

Areas you could trim your outgoings (not many as so much missing):

Life insurance - if you have no kids, you don't really need this?

Can you seriously re-think the car? How much would you get if you sold it? How much would the bus or paying petrol money to your lift share partner cost you? You are currently spending £150+ £50 plus all the missing things every month to run it, that adds up to over £2400 every year. A lot of money for only £50 petrol miles each month?


Once you've done an updated SOA, you can look at your options in the light of the revisions (include the lodger income if it is guaranteed as of next month. Your options are:

- increase income /decrease expenditure so you can meet min payments with some left over to 'snowball'

- contact https://www.cccs.co.uk or https://www.payplan.co.uk for advice on a free debt management plan where the interest may be frozen and an agreement reached with your creditors on a reduced monthly amount which will enable you to afford your bills

- contact creditors yourself with an accurate SOA and repayment proposal asking for interest to be frozen.

- sell the house and rent (if you have equity to cover the debts, taking into account the costs associated with selling a house).

Which strategy you take depends on the outcome of your revised SOA.

h8money

I know a couple who are in a simialr situation but there outgoings are a lot more than there income, even more so than mine.

They have contacted all their creditors and basically said we cannot afford to pay you, all we can afford is £x amount each month. Can this actually be done??? I would assume it absolutely puts ur credit rating down the pan? IF that;s the case, would that be for life of until you got the debt paid off (which again inturn would prob be life!).

CLAPTON

the priority is for you to rework the SoA to get the best picture possible because only then can one realistically discuss the possibilities.

can you get rid of the car?

how much equity is in the house?

h8money

You are missing a lot of things on your SOA, which may explain why you keep goin g over that overdraft limit:


Car tax and insurance - How much will this be in Feb 2007? That is only 6 months away. You need to divid the total amount by 6, and start putting that amount aside each month. If you don't, you'll end up in more debt.

OK, THAT'S A GOOD IDEA....NOT SURE ON COST AT THIS TIME. WILL DO SOME DIGGING.

Car MOT - again, you need to save each month for when the bill comes in
DOESN'T NEED ONE FOR ANOTHER 3 YRS.

Car parking
I DONT HAVE TO PAY AT WORK AS IT'S FRE AND WHEN I GO ANYWHERE I MAKE SURE I PARK WHERE I DONT HAVE TO PAY!

Car maintenance/servicing - save each month as above
SERVICING FREE UNDER WARRANTY.

Other transport (i.e. buses, trains)
NEVER USE THEM!

Landline
DONT HAVE ONE, MOBILE IS CHEAPER

Mobile
£35 AS INCLUDED ABOVE

Internet
USE MY PARENTS, IT'S FREE!

Christmas/presents
HMMM... NOT THOUGHT OF THIS ONE

Entertainments / going out / takeaways
NOT ALOT JUST LATELY! I'D SAY MAX £50 PM

Clothes / haircuts
MY HAIR IS SO IN NEED OF A CUT NOT HAD ONE SINCE JAN! AND CLOTHES??? THAT STOPPED A WHILE AGO! SO £ZERO!

Pet insurance?
NOT INSURED

Medical/dental costs
COVERED BY OTHER MEANS

Pension contributions?
ALREADY TAKEN OUT OF WAGES EACH MONTH SO I NEVER SEE IT.

Gym/mag subscriptions?
GYM STOPPED AGES AGO, WASTE OF MONEY AND NO MAG SUBS!

Emergency fund savings (essential) SAVINGS! I WISH! NO SPARE CASH TO SAVE!



As awful as it seems, you really must include all of the above that are relevant to you iun your SOA, even if it makes it look as if you are spending way more than you earn. This is because you need to know where you are starting from, and what you really need *realistically* to live on.

Areas you could trim your outgoings (not many as so much missing):

Life insurance - if you have no kids, you don't really need this?
YES I DO! HOW ELSE WOULD MY MORTGAGE BE PAID OFF IF ANYTHING HAPPENED! WOULD NOT WANT TO LEAVE THAT TO MY PARENTS!

Can you seriously re-think the car? HAVE THOUGHT ABOUT IT BUT NOT POSS. How much would you get if you sold it? How much would the bus or paying petrol money to your lift share partner cost you? I ALREADY CAR SHARE AND THE PUBLIC TRANSPORT IS DIABOLICAL AND DOES NOT RUN ROUND MY SHIFT PATTERN! You are currently spending £150+ £50 plus all the missing things every month to run it, that adds up to over £2400 every year. A lot of money for only £50 petrol miles each month?


Once you've done an updated SOA, you can look at your options in the light of the revisions (include the lodger income if it is guaranteed as of next month. Your options are:

- increase income /decrease expenditure so you can meet min payments with some left over to 'snowball'
I CANT SEE WHERE EXPENDITURE CAN BE DECREASED ANYMORE!

- contact https://www.cccs.co.uk or https://www.payplan.co.uk for advice on a free debt management plan where the interest may be frozen and an agreement reached with your creditors on a reduced monthly amount which will enable you to afford your bills
WILL THIS AFFECT MY CREDIT RATING?

- contact creditors yourself with an accurate SOA and repayment proposal asking for interest to be frozen.

- sell the house and rent (if you have equity to cover the debts, taking into account the costs associated with selling a house).
THE EQUITY WONT COVER ALL MY DEBTS AND I HAVE NO WHERE ELSE TO GO!!! NOT AN OPTION!

Which strategy you take depends on the outcome of your revised SOA.[/QUOTE]

bikerqueen

If you died, your house would be sold which would pay off the mortgage. You would be dead. your parents wouldn't have a problem.

Toto

Yes you can offer your creditors less, it's called a DMP. But, yes it would mess up your credit rating. This would stay for 6 years. You would be best getting payplan, cccs or the CAB to help with that. You can do it yourself by sending all creditors a SOA and a letter explaining your situation. You have to divide up disposable income so they all get a pro rata amount (national debtline has a great website with fact sheets explaining this).

The way I see it you need to do something and you need to be prepared to sacrifice. You won't be able to pay the creditors less than the regular monthly payments and keep a spotless credit rating. You can keep your credit rating if you are prepared to make serious sacrifices in order to keep up the current payments. This means cancelling everything that isn't really needed, including insurances, selling things, finding ways to make extra money. It isn't fun and it isn't easy, there is no magic pill I am afraid.

poppy_f1

can i ask is the £270 from the lodger including bills and council tax?