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

zarazara

a bit off topic but MANY CONGRATULATIONS savingmummy in becoming debt free.

[Deleted User]

As other people have said really, attack the highest interest rate debts first.
But you list nearly all of them as zero APR. Are these frozen accounts or on trial periods? If they're on interest free trial periods, the interest will start to kick in soon. Beware of that.
I understand what you say about part-time work, I work in an industry that's basically run on temporary contractors, so the money's decent and you can reduce debts when you're working, but get a month or two break in between and you end up where you started. It's very frustrating, but now you have a plan, which was my enlightening first step.
I would say also be sure to keep a spreadsheet. I update mine every month with current balance of all 6 debts, a total remaining debt calculation and a "how much has been reduced this month" calculation (a simple this month total minus last month total). I also have a graph based on the total debt remaining amount and it's rewarding to look at a picture of the line gradually going downwards, although slightly dishearting to see the bumps back up where I've been between contracts.
Lastly, be patient. It can be a bit of a downer when 6 months down the line, feeling like a long time, your debt has only really gone down by £500-odd, but it's a slow process and every little bit reduces the interest you're paying too.
Keep your chin up and keep plugging away. Eventually it will all be worth it.

Choo_Choo_4

Saz - firstly well done on getting this far and coming on here to ask for some advice and secondly of course you can do it ... before you know it, you'll be the one dishing out advice to SAZ_82

Now £750 per month is a LOT of money and is actually MORE than what your creditors must be looking for in minimum contributions each month - by my reckoning, they'd be asking around £600pm in total (albeit these are min. payments) - so technically you wouldn't be insolvent.

But let's face facts - you do NOT have £750 left over each month or you wouldn't be here???

Re-do your Statement of Affairs. Speak to your parents and tell them that you want to pay them a monthly rent while you're staying with them. They may not want to take it and if they insist then ask them to put it away for you (for a rainy day ... there's plenty of those around here:() - say £150-£200 per month - they can do you up a letter to confirm that you pay this into the house as a form of rent (covering board and bills) - this way if and when you do move out into rented accommodation you'll not have to suddenly add £300-400 onto your expenditure (it will just have to increase by £100-£150)

Also give yourself a realistic allowance for Food & Household Goods - you have to eat! Even if you give yourself £130 per month - no creditor will argue with this! It's much less than what the guidelines would sugggest ... whether you actually spend this or put it away or treat yourself to a nice meal once in a blue moon.

Again - if and when you move into rented accommodation then this will also need to go into your expenditure.

So basically, that means that your monthly payment in a debt solution plan (be it a DMP or IVA - don't close your mind to this without finding out what it's all about first) has decreased by £350 or so ...

Most of your other expenditure doesn't look realistic either - Washer's right, £20 per month for travel won't take you too far so make sure you're not underestimating.

Remember Saz that if you do set up a DMP (or IVA) then the monthly contribution that you agree has to be realistic. There's no point agreeing to pay £600 per month to struggle after 2 months and be right back to square one!

Make sure you're allowing sufficent costs to live off without being generous

CCCS will speak to you about DMP and IVA - both are options and should be discussed with you. You can also get advice on both of these from any Insolvency Firm but remember you should never pay for advice or just to talk to someone.

If you want to a bit more about IVA's check out the IVA board - I am not saying that this is the way you should go but surely it should be explained to you at least and given the option.

For example - if we say that you can afford a payment of £300 each month (yes it's a lot less than what CCCS told you @ £750 but look again at your outgoings and make sure they're accurate)

DMP to settle £23,150 @ £300 per month will last 6.5 years if all creditors agree to stop interest and charges

IVA to settle £23,150 @ £300 per month will last 5 years and the remainder of your debt will be written off.

Thirdly you obviously have the Bankrutpcy option - this should also be advised by any IP you would speak to as well (they should always discuss all options with you, advise on which they think is best for you but the final decision is YOURS) - you would pay what you can afford into the Official Receiver Bankruptcy for 3 years ... but likely be discharged in 1 year ...

A lot of information here but this is just to show you that you have a LOT of choices so back to the beginning of my post - OF COURSE YOU CAN DO THIS! x

dancingfairy

Hi - I don't know whether you're feeling overwhelmed by everything at the moment? you sound like you might be? anyway - it probably took a while to wrack the debt up and by the sounds of it it wasn't all your expenses but probably some went on things for you ex as well or the house or what not. Anyway Rome wasn't built in a day so maybe set yourself little manageable targets - rather than focus on the big picture - I know some people live off a miniscule amount and seem to cope fine but maybe you need to accept that this is not something you are able or willing to do and maybe accept that it may take that little bit longer to pay off.
Also bear in mind that if you did do a dmp then undoubtedly things would change over the course of the dmp - you might move, get a promotion, get a better paid job, etc, etc so 6/7 years is just a rough starting point (and hopefully the worst case scenario).
df

Saz_81

Thanks everyone.

Just to clear a few things up - my railcard, £400 a month - comes directly out of my salary through a work scheme - that's why my spending on travel looks so low. £20 is a basic guide to when I have to get the bus etc.

Also, one I forgot was my therapist - only just started going - £50 a session. I could get it for free through the nhs but my dr said the waiting list is 6 months . I won't give this up - divorce and all this sh*t - all before I'm 30. I need therapy!

Just when I was feeling positive I got a letter demanding full payment for a storecard. I'm gonna takeaway my signature on this forum. Far too optimistic! Seriously, if anyone wants to insure my life and then shoot me, I would probably get further!

I don't get why the SOA says I should have £700 a month spare cash when all my minimum payments total that?

Had enough of everything really! But at least it's Friday!

ceejaydee23

Saz, look for a different councelling service, i used to pay £5 a session! £50 is extortionate!

Saz_81

Oh and put some stuff on ebay last Thursday. None of it sold. (Big old sad face symbol I don't know how to do!)

Saz_81

She's really good, and I am in a posh bit of London so it's not too bad. I've been in therapy tons of times and only some stuff works for me so I would be unwilling to give it up. Sadly, it is the highlight of my week!

ceejaydee23

I went on a computerised CBT (congative Behavioural Therapy) course with a referral to the mental health team from my GP, i didnt have long to wait tbh, and i was a bit sceptical to begin with, but it really works! it really challenges you to think about thought processes, and makes you look to the possitive and future, rather then reliving the past and letting yourself spiral out of control. whilst doing that course i was also on Anti-depressants, and it was only becoming pegnant back in March last year that ment coming off them, but already i had been on the road to recovery and the peices of my jigsaw were fitting back together. Now although struggling with a young baby, an 8 year old, living with a partner, and financial troubles! I'm happier then i've ever been!!

Saz_81

Thanks for that, I've never heard of computerised CBT before, I'll ask my doctor on Monday