getting it off my chest

lowlowlola

well where to begin, like so many of you out there it started about 16 years ago when i popped into HSBC in my doc martins and baggy jumper to ask for a student overdraft, fast forward a couple of years and i've started work and am having a ball,,all on borrowed cash! Whizz into the noughties and i have a successful career, a good salary and an invicible credit facility :beer: all round, the banks and credit card companies couldn't do enough for me and i was more than happy to oblige them by paying huge interest charges ..............and then of course things get REAL, i still have the good salary, the job is great and am still climbing but as every one else starts to buy houses and get married i am still living like a teenager with 55k :eek: saddled round my neck.......except i can't go out, buy anything or go on holiday because i am working to pay the interest on the cards.and living off the few quid left over on them each month..funnily enough the banks are no longer so obliging and i can't get yet another consolidation loan ( GOOD THING TOO THIS HAS CAUSED MY LIGHTBULB MOMENT:A )

sooo have been brave and totted it all up and have an appointment with CCCS its on Thursday (its taken three weeks which i guess is not too bad) so far i have managed to keep up with payments but this month i couldn't was brave and called them all, some helpful (mint, mbna) some not (HSBC - my alma mater)

here is my SOA - any comments would be really helpful
Income
£2200
£530 (additional rental income)
£2730
outgoings

Essentails - all monthly
rent 886 (lucky to have a flat that i can leagally sublet a room in)
water 20
c tax 176 - stops in november 06 was only allowed 4 payments due to missing one
house ins 17
internet /phone renatl and calls/cable 55
pet ins 8
gas 30
elec 25
tv lic 12
mobile 20
1259

travel wk 83
food 130
clothes 25
entertain 70
cat food 12
books/mags15

335

DEBTS
8100 180 mint cc
14000 270 rbs cc
5000 100 eggcc
10000 444 mbna loan
3500 75 mbna cc
2000 20 hsbsc o/d
8900 260 hsbc cc
2500 75 cap cc
250 30 free cat
180 30 next cat
£1484


My questions for those of you who have been kind enough to get to the end of this:

A) i reckon i have nearly over £1100 pcm to throw at this in a DMP ( i am very lucky i know) i have done the pay off by percentage calcluation and the only payment that falls considerably is the loan payment (see below) do you think they will buy this?? is a DMP the right thing?

percent total m/p w/ctax wo/ctx
14.9 8100 180 mint 149 163
25.7 14000 270 rbs 261 286
9.2 5000 100 egg 92 101.2
18.4 10000 444 mbna 185 202.4
6.4 3500 75 mbna 64 38.5
3.7 2000 20 hsbs 40 40.7
16.4 8900 260 hsbc 164 180.4
4.6 2500 75 cap 46 50.6
.4 250 30 free 10 10
180 30 next 10 10

am terrified they will call my home as i don't want my new lodger to know i am in trouble, can i request that they only call my moblie

I guess this post sounds a bit upbeat but i haven't slept for months, am so ashamed i cry every time i speak to my mum (thankfully have a stressful job so have blamed the tears on that, could never tell them about the mess i am in because my family just don't do that sort of thing) am finding work very difficult to handle and have lost over a stone in weight. I can't confide in my friends because i couldn't bear the sympathy, and my poor cat is drenched everynight in hot salty self pity.......so to have this forum to get it all off my chest is actually a life line! Thank you !

suzyp1982

I'm not very clued up on this but im sure someone will help you out soon!

Just want to wish you good luck! keep persevering!

shopsalot

You have made the biggest step right there - by admitting it!

I am in the same situation - great career, great car, great lifestyle - great big debts!

I would suggest using spreadsheets to monitor everything - budgets and individual debts in their own tables.

Call each one and note by each what is the agreement. Revise you budget based on this. Then work out your "real" income ie your income that is yours and not others.

Then you just have to bite you lip, dust your self off and get on with life.

It is upsetting, but there's no use crying over money already spent - all you can do is cut spend until you are Debt free - still a distant dream for me by the way!

Bits of advise i have learnt in the last two months:

If you dont need it - dont buy it - you will feel better in the long run.

There is no harm in asking - they can only say no - and you will still owe them either way (ie mobile Q)

Become the cash Queen! I opened up a seperate account - cash only (not even debit card) and a weekly standing order with my "spends" budget transfered into it. I have banked £300 for the last two months that i would have wasted.

Lastly - I dont have experience with DMP - but nothing in this life is free. I prefered the snowball method and just paying them off legitimatly with a few BT's along the way. it doesnt happen overnight - but then I didnt spend it over night!

Good luck - and stick with these boards - they offer great encouragement (though they are addictive - I havent done much work at all today!)

Imelda

hi lowlowlola,

First of all, welcome and hugs. It all seems bad at the moment but you have done the right thing contacting CCCS and of course soming on here.

Right, I have had a little look at your SOA, at the moment you are overspending by £350 a month, CCCS should be able to help you reduce your monthly payments so that you are living within your means. However the only things I can pick up on are:
1. Your phone bill- it looks really high (I can't comment I don't have a phone or internet at home but I am sure people get it for a lot less, maybe even half that)
2. Food, is that just for you (and the cat?) It's a bit high, maybe £100 to start off with (I have a budget of £70 for just me)
3. The bills (gas, elec, water, council tax, tv licence) do you share these with your lodger or does the rent include bills?
4. Mobile, people swear by PAYG and top up at £10 per month
5. travel, where do you live? I take it this is for public transport, would a monthly ticket be cheaper?

Let us know how you get on with CCCS, I think you have a great base for repaying your debt, please don't beat yourself up over it.

lowlowlola

thank you so much for taking the time to reply, it means a lot... i will look at what i can cut back and the cash account is a great idea!

lowlowlola

thanks so much, yes the lodgers rent does include bills and i guess i could easily cut down on the food. My travel is monthly and i cross three zones for work so it is high,,, PAYG is a great idea as soon as my contract is ended thats where i'll go!

thanks again

spamalot

Firstly, a really big hug to you. Doesn't getting it all out in the open feel so much better? Remember this problem is not insummountable, it just requires a little thought and planning. You will get loads of advice and support on this site so you are certainly in the right place.

I think the first thing is to get a plan, then once you've got things logically ordered and you know what your strategy is then you'll have an idea of your debt free date, this will help immensely and will help to keep you on track.

I'm just a new DFW so these are just my musings.

Essentails - all monthly
rent 886 (lucky to have a flat that i can leagally sublet a room in) how much can you sublet the room for?
water 20
c tax 176 - stops in november 06 was only allowed 4 payments due to missing one
house ins 17
internet /phone renatl and calls/cable 55
pet ins 8
gas 30
elec 25
tv lic 12
mobile 20
1259

travel wk 83
food 130
clothes 25 you can cut this straight away and save yourself £25 each month
entertain 70your social life may have to take a reduction for the timebeing, may i suggest you half this to £30 and have some nights in with your mates
cat food 12
books/mags15 Books you can get from the library, you can cut back the magazines and read all the gossip online!

From those savings alone you've generated an extra £80 per month. In addition you could look at getting an evening job, maybe bar work if you want to combine a social life and earning some dosh. Good luck and keep your chin up!

LittleL_4

Hun, I was feeling exactly the same way a few months ago and just cried all of the time. But I thought, get real, face it head on and sort it out. So I also called cccs and have my first appointment on the 18th.

I've also missed 3 payments on my c/c's this month (never done it before) and have been waiting for the phone to ring but nothing so far.

You'll see this through, you have a good salary and you'll honestly get it sorted once you're on a better payment plan.

You've simply overspent, like us all, and in couple of months or so you'll be a professional DFW! :T

Good luck!

Little L
xx

lowlowlola

thanks so much for taking the time to reply,,, am now sobbing because people are being so nice to me,,, feeling so much more positive,, i am sure the cat is greatful i have someone other than him to talk to now

X
Lowlowlola

christabell

Dear Lowlowlola,

The hardest part is starting, and by getting this all down in a soa is your first move. Good on ya! There will be day's that are good, and days that are not so good, however today your best is good enough.
There are lots of people on this site that have great suggestions, and you are willing to apply them to your finances. Remember, you have had your lightbulb moment, just give Time Time. I wish you all the very best.

shopsalot

Just remembered another tool - on Microsoft online there is a download that will calculate your loan balance every month including the effect of early repayments (loan calculator woth extra payments1.xls). It is a great help to see What your Net Debt is at any one time and in making early repayment decisions.

Remember to check for early repayment fees though!

maybe of use...