Urgent advice needed. Already spoke to CCCS

Moneysavingginge

Hi Guys

Just wondering if anyone can give any pointers/advice in regards to the mothers situation. Im in the process of trying to sort this mess out. Story so far.. She 51, got 14 years left on the mortgage. Done the usual things like spreadding CT over 12months, downgrading the Tv package, cutting down on shopping etc.

I told her about CCCS and she booked and attended the appointment to which they advised her to move bank accounts (as her lloyds tsb loan of £175 took her beyond her overdraft limit in her TSB account, then incurring £225 OD charges) and send all her creditors a letter saying she will pay them £1 per month until she sorts her finances out, then sending the advice booklet out to her telling her how to do it. Would creditors actually accept that??

Now, without sounding rude or ungratefull for there advice, but, is that it?? Is that the best course of action?? I was expecting them to advise her to start a DMP. Below is her SoA and as you can see, something needs to be done asap. She fallen into arrears with most of the creditors including the Mortgage.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1100

Monthly Expense Details
Mortgage................................ 385
Secured/HP loan repayments.............. 225
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 35
Gas..................................... 80
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 10
Mobile phone............................ 25
TV Licence.............................. 12.12
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 130
Clothing................................ 0
Petrol/diesel........................... 10
Road tax................................ 5
Car Insurance........................... 18
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 20
Buildings insurance..................... 17
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 15
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1142.12


Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 105000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 56000....(385)......2.39 Capstone Mortgages Arrears 1mnth
Secured Debt.................. 18880....(225)......9.89
Total secured & HP debts...... 74880.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
BARCLAYCARD VISA...............1522.85...29.75.....27.9
BOS CARD SERVICES..............1122.14...32.86.....23.9
Lloyds Tsb Loan................7777.75...175.5.....7.5
Lloyds TSB overdraft...........3445......0.........0
British Gas (Elec).............200.......0.........0
British Gas (Gas)..............1010......0.........0
Choice Cat.....................122.17....23........0
Premier Man....................127.......0.........0
M & S Personel Res.............832.69....25........24.9
M & S CreditCard...............2439.8....61.09.....25.9
Sainsburys CreditCard..........623.93....14.03.....24.9
Evans Catalogue................402.52....16.38.....0
House of Fraser................981.45....39.26.....29.3
Total unsecured debts..........20607.3...416.87....-


Monthly Budget Summary
Total monthly income.................... 1,100
Expenses (including HP & secured debts). 1,142.12
Available for debt repayments........... -42.12
Monthly UNsecured debt repayments....... 416.87
Amount short for making debt repayments. -458.99

Personal Balance Sheet Summary
Total assets (things you own)........... 105,000
Total HP & Secured debt................. -74,880
Total Unsecured debt.................... -20,607.3
Net Assets.............................. 9,512.7

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Plan of attack atm, Is to do the house up and sell it, but, it won't be for another year until this can happen.

Any advice will be great and sorry for the long past. Thank you

Tony

Moneysavingginge

I should have mentioned, She has asked her mortgage company for a temp change to Interest only but was refused.

Also, the BritishGas unsecured part is arrears which is being challenged, doesn't seem to be going anywhere yet as they won't tell her when the £1000 bill was from.

RAS

If your mother has mortgage arrears, she needs to sort those out before paying anything other than a token payment to the unsecured creditors.

Why have you got car expenses but no car listed as an asset?

If she is using a car that infrequently, it would probably be best to get rid and use the money and the monthly payments towards her debt.

Her fuel use is very high for one person? any idea why?

Would she be able to take someone in as a lodget? She can earn £370ish a month before paying any tax on the income, althopugh she will lose the single person's CT allowance.



if the plan is to sell the house she would well to start goping round the house and to identify stuff she no longer uses and to sell it so she can reduce some of the worst debts like House of Fraser.

Hannah_10

Just in case I read it wrong, she has an income of 13k a year, and 38k of debt excluding the mortgage yes?

Moneysavingginge

Hannah_10 wrote: »

Just in case I read it wrong, she has an income of 13k a year, and 38k of debt excluding the mortgage yes?

Looks about accurate Hannah yeah

RAS

Hi

Just remember that this is £19K secured debt and £20K unsecured debt. The options for dealing with them are quite different.

Moneysavingginge

RAS wrote: »

If your mother has mortgage arrears, she needs to sort those out before paying anything other than a token payment to the unsecured creditors.

Why have you got car expenses but no car listed as an asset?

Its a moped

If she is using a car that infrequently, it would probably be best to get rid and use the money and the monthly payments towards her debt.

She needs the moped atm as she has re-incurring illness's and struggles getting around

Her fuel use is very high for one person? any idea why?

Not exactly sure why tbh, BritishGas side of things are all over the place atm, trying to sort it now. Just signed up on the website to input the readings herself

Would she be able to take someone in as a lodget? She can earn £370ish a month before paying any tax on the income, althopugh she will lose the single person's CT allowance.

Not an option atm, could be soon though



if the plan is to sell the house she would well to start goping round the house and to identify stuff she no longer uses and to sell it so she can reduce some of the worst debts like House of Fraser.

In the process of doing that now. Just cleaning everything up to sell on Ebay and Carbooters

Thanks for your reply

Moneysavingginge

RAS wrote: »

Hi

Just remember that this is £19K secured debt and £20K unsecured debt. The options for dealing with them are quite different.

Tbh, Im assuming nothing can be done about the secured debt. Is that right?

Deep_In_Debt

I'm with CCCS and yes, generally creditors will accept. Takes a bit of time and a bit of a rollercoaster at times but it does sort.

Water meter - does your mum live on her own? If so, has she considered a meter? I'm on my own and I now save £28pm by being on a meter. Doesn't work for everyone but worth ringing the water authority? They'll fit it for free too. I'm paying £10pm for water so worth a try.

Moneysavingginge

Deep_In_Debt wrote: »

I'm with CCCS and yes, generally creditors will accept. Takes a bit of time and a bit of a rollercoaster at times but it does sort.

Water meter - does your mum live on her own? If so, has she considered a meter? I'm on my own and I now save £28pm by being on a meter. Doesn't work for everyone but worth ringing the water authority? They'll fit it for free too. I'm paying £10pm for water so worth a try.

Wow, I didnt think you could save that much with one of them. Ill ring them tomorrow then, Thanks

Deep_In_Debt

tonydtiger wrote: »

Wow, I didnt think you could save that much with one of them. Ill ring them tomorrow then, Thanks

They should give you a quote over the phone but even if it is a few quid saved, it might be worth it. That way, you are paying for the water you use and not everyone else's hose pipes etc.

Makes you more aware of the water you use too - I do one big wash a week and really load the machine and that's it and don't leave taps running when you clean your teeth etc.