Debt Management services

music2dance2

I recieved a call from the above company. I usually would give them time of day. But at the moment I am determind this year to put a dent in my debt and find a good solution to clear as much as I can.

I decided to go with the call and they are sending some details out to me. Question is things are not desparate with myself and if i work hard i can maybe do this on my own but I do pay just the minimum on my credit cards.

Is it worth me going down the route with this company or do it on my own?

Thanks in Advance

katsu

If you want help use a free organisation - I bet this lot will take some of your monthly payment. Go for CCCS, Payplan or Citizens Advice.

Tixy

Hi

If you can meet minimum payments and manage on your own (without increasing your debts) then this is the best option as it preserves your credit record.

Any DMP (free or a fee charging one like this) will have a huge impact on your credit score and your ability to get future credit/remortgages etc for several years.

If you do go for a DMP - do it one of the places recommended on here -http://forums.moneysavingexpert.com/showthread.html?t=2077631

Alternatively you could complete and post a budget (statement of affairs) so that we can see if we can see savings or cutbacks you can make so its easier to meet your repayments. http://www.makesenseofcards.com/soacalc.html

tygar2

Tixy wrote: »

Hi

Any DMP (free or a fee charging one like this) will have a huge impact on your credit score and your ability to get future credit/remortgages etc for several years.

Very good point.

music2dance2

Wow you guys are really helpful. They do charge. monthly and 1st month payment in full they also take which was a bit odd i thought. Think ill do it on my own, going by what you have said.

Tixy - will post something if i can.

Thanks guys.

music2dance2

They did mention my credit would be affected, unsecured only but to be honest i think i can do this on my own some how.

Done the budget from the site Tixy. Least I can see im going over budget on my spending. See below. My income does change monthly and i'm self employed so I have to save some for tax and dont always have that amount to spend, sometimes more somtimes less its just an average i guess

[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 50
Gas..................................... 30
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 20
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 20
Groceries etc. ......................... 180
Clothing................................ 35
Petrol/diesel........................... 60
Road tax................................ 11
Car Insurance........................... 50
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 26
Haircuts................................ 12
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1172


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................2500......60........0
Credit card....................900.......30........0
Credit card....................1700......50........0
loan...........................5500......190.......0
Credit card....................400.......12........0
Total unsecured debts..........11000.....342.......-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 1,172
Available for debt repayments........... 128
Monthly UNsecured debt repayments....... 342
Amount short for making debt repayments. -214

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,000
Net Assets.............................. -9,000

[/tt]

katsu

[QUOTE=music2dance2;30826821
Done the budget from the site Tixy. Least I can see im going over budget on my spending. See below. My income does change monthly and i'm self employed so I have to save some for tax and dont always have that amount to spend, sometimes more somtimes less its just an average i guess

[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1300 - put in your lowest and see if you can work with that, otherwise you will have months where your budget does not work.
Partners monthly income after tax....... 0 no way of getting something here?
Benefits................................ 0 at least child benefit should be here. No tax credits?
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 95 - averaged out at 1/12 or is this what you pay 10 months per yr (giving you 2 months with 95 to spend on debt busting?)
Electricity............................. 50 - is this estimated bills or accurate? If you have gas heating this seems high. Start turning everything off at the wall, not running things in rooms you are not in, use washing line not tumble dryer, turn immersion heater off, use energy saving bulbs etc.
Gas..................................... 30
Oil..................................... 0
Water rates............................. 36 - metered?
Telephone (land line)................... 20 - what are you getting for the £20?
Mobile phone............................ 40 - for how many of you - one or both? Can you drop the usage/package?
TV Licence.............................. 12
Satellite/Cable TV...................... 20 - drop and get freeview.
Internet Services....................... 20 - high for just internet - do you need superfast for business?
Groceries etc. ......................... 180
Clothing................................ 35 cut this down.
Petrol/diesel........................... 60 essential journeys only. Drive more carefully and slowly and walk in the lovely spring air
Road tax................................ 11
Car Insurance........................... 50
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 0 you should have insurance unless you can afford to replace everything if you get a flood or burglary. I'd prioritise insurance over satelite TV.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 26 Ok, how many people is this for? I spent £180 on 23 peep for Christmas. Use charity shops, poundland, special offers and cut down until you are back in the black.
Haircuts................................ 12
Entertainment........................... 50 - what are you doing to be entertained? How can you have fun for less?
Holiday................................. 50 - is this booked? If not cancel this year and do something cheaper.
Emergency fund.......................... 0
Total monthly expenses.................. 1172


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................2500......60........0 find your APRs so you can prioritise debt busting
Credit card....................900.......30........0
Credit card....................1700......50........0
loan...........................5500......190.......0
Credit card....................400.......12........0
Total unsecured debts..........11000.....342.......-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 1,172
Available for debt repayments........... 128
Monthly UNsecured debt repayments....... 342
Amount short for making debt repayments. -214

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,000
Net Assets.............................. -9,000

[/tt][/QUOTE]
Where are you showing putting tax money aside? Have you taken that off your income before entering it?

Tixy

Hi

If you are going to manage on your own then you are going to need to up your household income or reduce your expenditure somewhere.

music2dance2 wrote: »

[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2 do you need 2 cars if you partner is not earning?

Monthly Income Details
Monthly income after tax................ 1300 is this after business expenses and tax?
Partners monthly income after tax....... 0 does you OH not earn? or get any benefits?
Benefits................................ 0 child benefit? child tax credits? can you get working tax credits?
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 50 check you are with the cheapest supplier & on the cheapest tariff for gas & elec.
Gas..................................... 30
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 20 consider getting a combined telephone & landline (starting cost around £20pm for both)
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 20 could you go freeview for a while? or phone and threaten to cancel - they might give you a good deal *eg half price for 6months)
Internet Services....................... 20
Groceries etc. ......................... 180
Clothing................................ 35 try to keep to a minimum.
Petrol/diesel........................... 60
Road tax................................ 11
Car Insurance........................... 50
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 0 contents ins can be bought very cheaply, do consider it (more important than say SKY in my opinion)
Life assurance ......................... 0 do you have none? again look into low cost options, how would your child & partner cope without you?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 26
Haircuts................................ 12
Entertainment........................... 50
Holiday................................. 50 I'd suggest you forgo a holiday this year, until you have made some dents into your debt.
Emergency fund.......................... 0
Total monthly expenses.................. 1172


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................2500......60........0
Credit card....................900.......30........0
Credit card....................1700......50........0
loan...........................5500......190.......0
Credit card....................400.......12........0 look out all the APRs so you know which debt to tackle first
Total unsecured debts..........11000.....342.......-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 1,172
Available for debt repayments........... 128
Monthly UNsecured debt repayments....... 342
Amount short for making debt repayments. -214 recalc this once you have included benefits etc. If you cannot get to a positive figure then you may need some professional advice from one of the charities

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,000
Net Assets.............................. -9,000

[/tt]

Hi

Do you have anything you don't need that you could sell? If you partner doesn't work can they start ebaying etc? Could they get a part time job? How old is your child?

I don't think your spending is excessive although there may be a few areas you can trim a little. It seems as though the problem is your income. Could you get a second employed job to contribute a little extra? can you increase the hours and therefore the pay from self-employment?

Check out www.entitledto.co.uk to see that you are getting all the benefits for your family that you should.

Good luck

music2dance2

There were a few things I missed off as I was at work and didn't have the figures to hand. I will make the changes and recalc and post again. My partner does work, and that amount i earn is after deductions.

Will do a new SOA and re-post of its not positive, i'm sure if can be, but thanks for all your help on this.