Frightened about my future

chasingsunshine_2

Hi mouseann, I dont think I'll be able to give you much advice, I'm just starting to deal with mine at the moment so dont have all the info that the other do. Hopefully you'll get to talk to someone who will be able to help you sort out the debt. Also check out the other boards for really good money saving tips etc. I've been selling everything I dont need on ebay or at 2nd hand shops in my area, I've also been doing paid surveys etc. Yes I know its all small amounts but they add up... I'll be saving my survey vouchers and other earnings for my sons birthday & Christmas presents so thats one less thing to worry about.
Sorry for the lack of advice just wanted to say well done for posting and facing up to it all.
x

mouseann

I agree re the small amounts.
Will be looking for things to sell on eBay, etc. Will help if I need to give up the house also - although it is not very saleable at the moment and I can't afford to have any work done to make it more attractive.

paybacktime2008

Don't know if this will work but if you haven't missed any credit card payments would it be worth ringing them and asking if they will reduce interest rates. Give them the 'I really like you as a company but I've had a better deal elsewhere-Can you match it?' Not sure if it will work but they can only say no.

mouseann

Good point about not missing payments and interest rates

Only problem is, I am now in a situation where I am going to have to miss some payments. I have the, somewhat vain and foolish, hope that the fact that I have a long history of prompt payment (sometimes going back 15-20 years, but not always at such high interest rates!) may make them think that they have had their pound of flesh. Except I fully realise that banks don't think like that!

Head out of sand now!

Nargleblast

Hello again Mouseann, nice to hear from you again. There are a number of solutions to your problem - debt management plan (DMP), Individual Voluntary Arrangement (IVA), bankruptcy. Have a look on the bankruptcy and IVA board to get some idea of what they involve, as those solutions may well be mentioned to you when you speak to CCCS, bearing in mind the amount you owe and how long it might take to pay it off. If you do think about selling your house to try and pay off debts, then bear in mind that your house might be on the market for a long time before it sells. You also have to buy somewhere else, or rent somewhere. Don't know about your neighbourhood but where I am a three bedroom house can cost something like £400 or more a month to rent, so you need to look carefully into all this. Don't wish to be gloomy and all that, but you have to face practicalities. One thing I am certain of though is that once you have made that phone call to CCCS you will feel a lot more hopeful about the future. There is a solution to your problem, it's just a question of finding the right one.

Poosmate

Sorry Mouseann but banks and financial institutes don't recognise longstanding loyal customers! All I can say is, if you're going to miss payments on any of them make sure it's the ones with the highest interest first. The reason being that those with the lower interest will hike it up once you miss a payment.

One of the few things I was thinking of was maybe paying off the Next(?) debt (£235? at 29.9%) with the John Lewis (?) card as it's only 16.9%. It's one less payment going out of your account. Can you max the lower interest cards by paying some off the higher rate cards? Or are they aleady maxed out?

I need to have another look at your SOA because I've been away and come back since I last read it! lol

Brb

Poo

Poosmate

mouseann wrote: »

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1150 Does this include state pension too?
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1150
Monthly Expense Details
Mortgage................................ 250
Secured/HP loan repayments.............. 125
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 75 Are you claiming the 25% single occupancy discount? And can you pay over 12 months?
Electricity............................. 60 Can you reduce this at all? Change supplier to earn cashback?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 20 Can you reduce this by only making calls after 7pm and at w/e?
Mobile phone............................ 5
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 100 You could reduce this possibly by £25
Clothing................................ 0
Petrol/diesel........................... 10 Really? Is it worth having a car?
Road tax................................ 10
Car Insurance........................... 35 Seems high? Use a chasback site when renewing
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 14 B&C seem high, can you get cheaper and use a cashback site?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 20 Where is this going?
Total monthly expenses.................. 807

Assets
Cash.................................... 0 Emergency fund cash should be here
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 2000 Can you sell and downgrade or use a pushbike given the miles you do? Just because you're retired doesn't mean you're old!
Other assets............................ 0
Total Assets............................ 132000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 30000....(250)......0
Secured Debt.................. 7500.....(125)......0
Total secured & HP debts...... 37500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Visa.....................9920......197.......29.9
Barclaycard Visa...............10370.....234.......27.9
BarclaycardMastercard..........7238......145.......26.8
Next Directory.................264.......25........29 Pay this off with John Lewis card?
Laura Ashley store ............936.......38........24.9
Debenhams store card...........2490......100.......29.9
Capital One Visa...............2290......46........22.48
American Express...............7500......186.......24
M&S Reserve ...................4890......147.......29.9
RBS Mastercard.................9960......225.......29.9
HSBC Mastercard................9990......247.......29.9
Bank of Scotland Visa..........14950.....340.......29.95
Barclaycard Goldfish...........10330.....207.......26.8
Barclaycard Platinum...........7240......145.......26.8
John Lewis Mastercard..........8450......255.......16.9
Egg Visa.......................8050......230.......29.9
First Direct Visa..............8200......245.......19.9
M&S Credit Card................5050......127.......28.9
Total unsecured debts..........128118....3139......-

Monthly Budget Summary
Total monthly income.................... 1,150
Expenses (including HP & secured debts). 807
Available for debt repayments........... 343
Monthly UNsecured debt repayments....... 3,139
Amount short for making debt repayments. -2,796
Personal Balance Sheet Summary
Total assets (things you own)........... 132,000
Total HP & Secured debt................. -37,500
Total Unsecured debt.................... -128,118
Net Assets.............................. -33,618

£2796 is a huge shortfall. Even if you managed to do all of what I have suggested in your SOA it's not going to be enough you'd need to up your income as well.

Have a read of Eager Learner's guide (usually on the first page of this board), apparently you can earn up to £90 per month using your pc for half an hour a day (although I guess it will take longer at first till you get used to it).

Can you start growing your own fruit n veg? That'll reduce your food bill somewhat. Did you say you lived in the country? If so, can you keep chickens and maybe put your produce out with an honesty box? (I love seeing them in the country).

The only other suggestions are part time job, full time job, sell on Ebay.

If you do all or most of the above, you should be able to squirrel away a few bob (once you're on a DMP) to be able to maybe make some full and final offers in a few years or less.

Hope that helps

Poo

GeorgeUK

Mortgage................................ 250
Secured/HP loan repayments.............. 125
These are your priority debts. These should be paid before you look at paying any unsecured credit cards or loans.

Council tax............................. 75
Single persons living allowance included?

Electricity............................. 60
Check the comparison sites to see if you can get a better deal and make sure you switch things not in use off at the plug rather than leaving on standby.

Petrol/diesel........................... 10
Road tax................................ 10
Car Insurance........................... 35
Car maintenance (including MOT)......... 20
If you are not using your car very much, is it worth retaining it? How are the bus services in your area?

Buildings insurance..................... 25
Contents insurance...................... 14
Again I would look at the comparison sites tosee you are getting the best deal (uswitch, moneysupermarket)

For the cards and loans (unsecured), can you reclaim any Payment Protection Insurance from these (PPI)? Check to see if it had been missold as there is little chance of them paying out for job loss due to age.

Would you be able to sell your services doing whatever it was you did before but offering an independent service or working from home? Some people do accounts and even secretarial work at home.


1. Some creditors will write to you straight away to notify you of the missed payments while others will phone to see what is going on. Have you written to them stating that you are unable to meet the minimum payments and are seeking assistance from CCCS or Payplan? If they call, refuse to answer any security questions and state that all communication should be in writing only.

2. CCCS will TRY to negotiate a freeze in interest and charges, but that is down to the individual creditors to decide. There is nothing that anyone can do to force them to stop adding interest.

3. You are not required to sell anything right now. If you get a job and require the car to do the job then a court would not require you to sell it. If any of your creditors take you to court and you get a CCJ, only if you do not meet the payments of that could bailiffs be called in who may try to take the car – you are a long way from this right now so I don’t think you need to worry about it.

4. You are able to make a reduced full and final settlement offer at any time (make sure it is not a partial or short settlement offer). The only problem may be releasing the equity in the property and what percentage the creditors will accept. It is usually after the debts get passed on to a debt collection agency that a smaller offer may be accepted.

Kevicho

Hi Ann, nothing really to add in terms of advice, but my best wishes go to you.

Do you have family or friends for support?

Also I think the credit companies need to take some responsibility here as this level of lending is scandalous.

I think the likely outcome is that minimal payments will have to be negotiated, best through a debt charity, and this will leave you with some money left over each month, so best to keep calm and not worry.

Good luck

thewad

Can't find that Eager Learners Guide.

The Wad