Okay, have added up my debt...now need some reassurance!

Saz_81

Okay, I've added it all up - currently £23,150 (give or take) and could really do with some advice or at least reassurance!

It breaks down to
CC - 8000
CC - 8200
CC - 700
CC - 1500
O/D - 1500 (although only at £1000 at the moment)
Loan - 2900 left
and a storecard of 350

This is a combination of lots of things but mainly getting married, a rubbish husband, getting a divorce and spending too long temping and in part time work. All my responsibility anyway, and basically all my fault

My take home pay is about £1070 - I have just separated from my husband and have moved back in with my parents who have taken pity on me and are are very kindly not charging me any rent or housekeeping.

I just did the CCCS thing - and spoke to one of their counsellors online. They recommended a DMP - but that quotes me paying back about £750 a month as a lump sum - I really don't think I can cope with that. Plus, I know there is no guarantee they would even agree to it

I just can't see a way out. I can't stay at home forever but i can't afford to move out especially if I get a DMP. I just feel like I'll be i debt forever. I commute to work (quite a long way) so I can't really get a second job - although I have signed up to do mystery shopping for a bit of "breathing space" money!

Anyway, I'd be grateful for any words of encouragement or just someone to help me see things a different way. (I find the totals in your signatures very encouraging and you've all done brilliantly!)

Okay, good to get this off my chest! I can do it right? Right?

Tixy

Hi and welcome

Well done for facing your debts.

Presumably CCCS went through a detailed budget to come up with the £750? they must think you have that much available for debt repayments.

Have you done a statement of affairs - I would do this using this link - http://www.makesenseofcards.com/soacalc.html and post the results on here. This will show how much you should have available for debt repayments each month. If you don't have £750 then you need to keep a spending diary to work out where the extra money is being spent. We can also take a look to see if you expenditure in any area is likely to be considered by CCCS as excessive (which could be why they think you can afford more than you do).

Remember if you go on a DMP (at say the £750) should your circumstances change - such as you movign out and your outgoings going up you can alway renegotiate the amount you pay each month. But whilst your living costs are low you may as well pay off as much as you can.

But yes one way or another you can do this. There will be a suitable solution for you, some manage to pay back hefty debts quite quickly, others pay small debts off over a long period, its all to do with your own circumstances, there is no one size fits all solution.

Have you anything you could sell to raise money to put towards your debts? anything from when you didn't live with your parents that you no longer need? or clothes/books/cds/ etc, every bit helps.

Good luck.

niccatw

Hey Saz... Off course you can do it That's why we're all here. And you've made the first - and perhaps hardest - step! (well, after leaving your rubbish husband I guess! I'm sorry you've huch a hard time and thank god for parents huh?) You'll get lots of support from folks on the forum - some of it is blunt and too the point, but it's always well meant (if it's anything else, that's what the wee warning triangle in the corner is for).

As you'll see from my signature, I'm in a bit more debt than you are. I personally decided not to go down the DMP route as (at the moment) I can cover my debts with my income (I also took in a lodger and got a second job). However, if it ghets too much for me, Id certaqinly look back into it.

First off, folks will ask to see you statement of affairs (SOA) to see all your incomings and outgoings. If you can, dig out all the paperwork and find the APRs on the credit cards - that will folks will be more able to see areas that you could perhaps cut back on.

This link will take you to the SOA calculator http://www.makesenseofcards.com/soacalc.html It'll also take you to the "snowball" calculator (if you go back to home page and look under calculator link), which lets you see when cards might be paid off by depending on how much you can pay per month.

Good luck with it

savingmummy

Of course you can do it!!!
Do a accutate SOA include EVERYTHING down to the 50p newspapers etc.

I think you are lucky in the sense that your with your parents and for FREE!! Personally i would say Don`t rush to move out just yet, concentrate on getting the debts down while you can!!

If your stopping at your parents and not paying anything for that you must have a lot to put into the debts - which is fab!!
Until we see a full SOA we can`t really see what you have to throw at the debts, if you post it here we can give you advise on what to do,

For now you need to be really strict with your outgoings (hard i know!!) but it pays off!
I become debtfree last week BUT i really was strict - NO sky NO meals/take outs NO mobile, NO this and that and it worked for me!!
You have done the first big step by posting here and looking for advise so you will be fine xx

tyllwyd

If it was me, if you are going down the road of setting up a DMP, I'd probably include an amount for rent/contribution to bills for my parents from day one - it's not really fair to expect them to support you indefinitely (or they might be willing to put it aside in a savings account so they could help you out in an emergency). Are your minimum payments at the moment more than £750? If you don't go down the road of a DMP, how quickly do you think they will start coming down?

Saz_81

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1070
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1070
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20
Clothing................................ 25
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 165

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................8200......205.......0
Credit card....................8000......220.......0
Credit card....................1500......40........0
Storecard......................350.......20........0
Overdraft......................1500......0.........0
Personal loan..................2900......179.......7.9
Credit card....................700.......25........0
Total unsecured debts..........23150.....689.......-

Monthly Budget Summary
Total monthly income.................... 1,070
Expenses (including HP & secured debts). 165
Available for debt repayments........... 905
Monthly UNsecured debt repayments....... 689
Amount left after debt repayments....... 216
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -23,150
Net Assets.............................. -23,150
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser.

Saz_81

And thanks to everyone for their replies so far, it rreally means a lot you would take the time (feel a bit emotional actually haha!)

WASHER

I would recommend you put at least £150 rent/housekeeping in, you cannot live for free, even if you offer your kind mum some money and she refuses, put it in a savings account.

You said you travel along way to work, £20 doesn't get you far, is this correct.

Is your mobile allowance enough? If you don't pay any rent, you should aleast pay for your food IMO.

WASHER.x.

zarazara

Hi there! yes of course you can do it!!!!!!!!!!! looking at your SOA I think there are areas where you can but back, groceries,mobile,clothes, cut them by 50%. As you are in so much debt I feel its unwise to be "doing" xmas and birthdays, so simply tell people you stil love them but cannot buy them stuff, a phone call or home made card/notelet will do.Entertainment could be no more than £15 a month too. thats £65+ saved a month extra. So, £1070 -£750 =£320. Your expenses will be £100 approx leaving you with in excess of £200 a month to give your parents/save/pay off debt even quicker. Of course its possible!

zarazara

and dont forget CUT UP THOSE STORE CARDS AND CREDIT CARDS. no more temptation. Be strong. we are all here for you.

savingmummy

Saz_81 wrote: »

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1070
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1070
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20 is this payg?
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20
Clothing................................ 25 use what you have for now
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 reduce this for the time being. £10 pp and only buy for certain people maybe??
Haircuts................................ 0
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 165

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................8200......205.......0 Credit card....................8000......220.......0
Credit card....................1500......40........0
Storecard......................350.......20........0
Overdraft......................1500......0.........0
Personal loan..................2900......179.......7.9
Credit card....................700.......25........0
Total unsecured debts..........23150.....689.......-

find out APR`s!! Work on the highest Apr debts.

Monthly Budget Summary
Total monthly income.................... 1,070
Expenses (including HP & secured debts). 165
Available for debt repayments........... 905
Monthly UNsecured debt repayments....... 689
Amount left after debt repayments....... 216 where does this go?????
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -23,150
Net Assets.............................. -23,150
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser.

Have you anything to sell on ebay? you spend a lot on clothing so maybe things you no longer wear or things that still have tags on

Presents really need to be reduced for now! I dont know how many people you have to buy for but set a budget ot cut back on who you buy for.

You have £200+ over each month...........you need to see where this is going!!

LOSE the cards