Debt managment companies

beki123

Hello everyone, im new to this site.
My name is beki and i live with my partner.
We rent a house as we cant afford the down payment on a house of our own.
We are really struggling with money at the moment as i have been taken off work ill and havent worked for the last 11 months, at the moment i only get £50 a week through ESA, plus my boyfriends wages which are about £900+ a month. Due to not having alot of money coming in and at somepoints non at all as my partner lost his job last year and was out of work for 4months while i was off sick. We have maxed out 2 credit cards EACH nearly with a grand on each card. I have an overdraft of £1400 which is maxed most of the time and my Partners is £3000. Plus we have one small loan which only has about £1000 left to pay i think and a large loan of £4000 left to pay .
We are really struggling at the moment, and i have applied through the insurance for both loans due to me being off sick, but as its a pre medical condition (diabetes) that is causing my illness at the moment we are stuck . I feel like im drowining.
Ive seen lots of things about debt management companys that can make it in to one payment instead of 5 or 6. are these any good? if so do you need to be a homeowner etc?
Thanks for advice in advance.
:beer:

Tixy

Hi

You need to get advice from one of the debt charities - see here. http://forums.moneysavingexpert.com/showthread.html?t=2077631 They will advise if a DMP is the right option for you, and if it is and you want to go that route they will run the DMP for you for free. Any DMP commercial company charging fees should be avoided. The charites will also fully explain the impact of whichever route you take on your credit ratings etc.

Another useful thing you could do would be to complete a statement of affairs. This will help clarify your position for you (and the same info will be needed by whichever charity you speak to anyway).

If you post the results on here, you'll get tips and advice from the people here as to how you can ease your financial pressures a bit - http://www.makesenseofcards.com/soacalc.html

beki123

This is the SOA sheet i just did

Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 900
Benefits................................ 202
Other income............................ 0
Total monthly income.................... 1102

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 460
Management charge (leasehold property).. 0
Council tax............................. 87
Electricity............................. 40
Gas..................................... 50
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 25
Mobile phone............................ 80
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 10
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 100
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 1294


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
Loan RBS.......................5000......123.......0
Sainsburys loan................2000......103.......0
Barclay card...................1300......30........0
RBS............................1000......25........0
Natwest........................1500......35........0
Barclaycard....................1800......50........0
Total unsecured debts..........12600.....366.......-


Monthly Budget Summary
Total monthly income.................... 1,102
Expenses (including HP & secured debts). 1,294
Available for debt repayments........... -192
Monthly UNsecured debt repayments....... 366
Amount short for making debt repayments. -558

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,600
Net Assets.............................. -12,600

dancingfairy

Hi Beki - there are certainly a few things on your SOA that could be cut down on - but you aren't going to be able to make enough cutbacks so maybe a DMP would be a good idea.
A couple of things you could cut back -
gas and electric look a bit high - as you are at home and have a medical condition I guess it will be a bit higher than most but check you are getting a good deal with your supplier and if necessary switch.
Mobile phones - even for 2 phones that would be a lot - you should be looking at nearer 20 a month each really - check what contracts you are on and get on a better deals - again switch companies if necessary.
Sky - your creditors aren't going to look very favourably on your recuced payments if you are spending 50 a month on sky - this needs to be reduced to the min. package you can and cancel if possible.
Pet insurance and vets bill look huge also - what animals have you got and why are they costing so much? I am sure people will people able to suggest ways to cut the costs if you specify what they are a bit more.
Definitely have a word with a debt charity - not one of those 'we can write off your debt companies' .
df

Tixy

Hi

well you are short of money even before your debt repayments so it looks like you can not currently even afford a DMP. You must somehow make some changes to at least balance before debt payments.
So I'll make some suggestions on what you might be able to do (obviously only you know which will suit you but it is all meant well)

beki123 wrote: »

This is the SOA sheet i just did

Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 900
Benefits................................ 202 do you get all the benefits you can? is OH entitled to tax credits? have you checked out www.entitledto.co.uk
Other income............................ 0
Total monthly income.................... 1102

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 460 do you get any housing benefit towards this? if not is there any chance to rent somewhere cheaper?
Management charge (leasehold property).. 0
Council tax............................. 87
Electricity............................. 40 fairly high - do you have arrears? have you shopped around to check you are with the cheapest company for this and gas? have you tried reducing the amount you use?
Gas..................................... 50
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 25
Mobile phone............................ 80 cannot afford these rates, switch to a cheaper tariff or switch to PAYG
TV Licence.............................. 13
Satellite/Cable TV...................... 50 cancel and use freeview, or at least reduce package or combine with landline and internet
Internet Services....................... 10 a lot on top of phone & tv, try to combine for a cheaper package (cheapest landline & internet is £20 combined)
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100 what is this for? is it all essential? is it as cheap as you can get?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 100 wow - very high what pets do you have? why so high? do you have insurance or is it all bills? have you looked to see if pdsa would help fund costs?
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 100 you really cannot afford this in your current financial position. If not booked then manage without this year. If booked see if you can cancel without having to pay more.
Emergency fund.......................... 0
Total monthly expenses.................. 1294


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
Loan RBS.......................5000......123.......0 look up APRs on the statements etc for all of these
Sainsburys loan................2000......103.......0
Barclay card...................1300......30........0
RBS............................1000......25........0
Natwest........................1500......35........0
Barclaycard....................1800......50........0
Total unsecured debts..........12600.....366.......-


Monthly Budget Summary
Total monthly income.................... 1,102
Expenses (including HP & secured debts). 1,294
Available for debt repayments........... -192
Monthly UNsecured debt repayments....... 366
Amount short for making debt repayments. -558

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,600
Net Assets.............................. -12,600

I think there are some changes you can make, hopefully you can cut back by at least the 192 shortfall.

beki123

Thanks for replys guys. we actually have someone coming out to look at our gas and elec as its a pre pay meter and we have told them numoerous times its taking to much, so hopefully that will go down and i can get some money back from that.
Holiday we cant get out off, plus my parents are helping out we've tryed to get out of it but its my sisters wedding hense why parents helping out.
Vet bills- i have two dogs, but one is very ill his tablets alone cost £65 ish a month the vets are looking at how we can cut down the bills tho. i will look in to psda now thank you
benefits- i am at the job center tomorrow but i have also just recieved a letter in the post now while i was waiting for replys to say i will now also be getting £89 a month in disability living allowance. Also my ESA is due to go up to £100 plus a week with in the next 4 weeks or so (fingers crossed)
Other travel- is costs my partner £90 a month to get to and from work, as it takes 2 buses each way. also the other £10 goes on getting me to and from drs and hospital and job ceneter etc.
I will ring o2 up tomorrow and cut down my phone amount, my partner is on a fixed contract on his so i know he can't but im gonna lower mine to lowest.
Sky- i will give tghem a ring also tomorrow (have no voice today) and try get the cut down, ive already took movies and HD off last month but to be honest they werent very helpful with me when i was explaining we cant pay alot. xx

RAS

beki123 wrote: »

This is the SOA sheet i just did

Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 900
Benefits................................ 202
Other income............................ 0
Total monthly income.................... 1102

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 460
Management charge (leasehold property).. 0
Council tax............................. 87
Electricity............................. 40 - this is high if there are only two of you
Gas..................................... 50- this is high if there are only two of you
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 25 - you should only be paying £12 per month if you are using mobiles
Mobile phone............................ 80 - sorry - this is massively high. Reduce both packages immediately and then go PAYG. You really should eb at less than £10 per month each
TV Licence.............................. 13
Satellite/Cable TV...................... 50 - you simply cannot afford this. Drop your package to the minimum unless you can cancel it
Internet Services....................... 10 - is this with your phone?
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 100 - you cannot afford this level of expenditure on pets. What do you have
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 100 - you have no chance of this. have you booked it? You cannot afford it
Emergency fund.......................... 0
Total monthly expenses.................. 1294


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
Loan RBS.......................5000......123.......0
Sainsburys loan................2000......103.......0
Barclay card...................1300......30........0
RBS............................1000......25........0
Natwest........................1500......35........0
Barclaycard....................1800......50........0
Total unsecured debts..........12600.....366.......-


You need to know the APRs on these debts.

Monthly Budget Summary
Total monthly income.................... 1,102
Expenses (including HP & secured debts). 1,294
Available for debt repayments........... -192
Monthly UNsecured debt repayments....... 366
Amount short for making debt repayments. -558

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,600
Net Assets.............................. -12,600

You can certainly save £200 off your spends each month, if not more.

And you need to start recalims on any of the PPIs that refused to pay out when you stopped work.

beki123

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 900
Benefits................................ 567
Other income............................ 0
Total monthly income.................... 1467

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 460
Management charge (leasehold property).. 0
Council tax............................. 87
Electricity............................. 40
Gas..................................... 50
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 25
Mobile phone............................ 80
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 10
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 100
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 1294


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
Loan RBS.......................5000......123.......0
Sainsburys loan................2000......103.......0
Barclay card...................1300......30........0
RBS............................1000......25........0
Natwest........................1500......35........0
Barclaycard....................1800......50........0
Total unsecured debts..........12600.....366.......-


Monthly Budget Summary
Total monthly income.................... 1,467
Expenses (including HP & secured debts). 1,294
Available for debt repayments........... 173
Monthly UNsecured debt repayments....... 366
Amount short for making debt repayments. -193

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,600
Net Assets.............................. -12,600

beki123

oh i forgot to add i also do avon, but i don't have a set income for it, but i usually bring in around £25-£30 sometimes i have got £60-£90 every 3 weeks

RAS

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