Dwp debt managment can not keep up payment help

beanielou

DWP will not write off the amount nor can the amount be included in any bankrupcy.
Could you redo your SOA to show correct monthly amounts?

liverpoo

[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.................... 1

Monthly Income Details
Monthly income after tax................ 404.21
Partners monthly income after tax....... 0
Benefits................................ 541
Other income............................ 0
Total monthly income.................... 945.21

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 60
Gas..................................... 93.14
Oil..................................... 0
Water rates............................. 22.88
Telephone (land line)................... 32
Mobile phone............................ 15
TV Licence.............................. 11.88
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 200
Clothing................................ 100
Petrol/diesel........................... 60
Road tax................................ 10.41
Car Insurance........................... 45.83
Car maintenance (including MOT)......... 12.5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 8.33
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 15
Total monthly expenses.................. 893.97


Assets
Cash.................................... 100
House value (Gross)..................... 130
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1730

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................6725......200.......0
Total unsecured debts..........6725......200.......-


Monthly Budget Summary
Total monthly income.................... 945.21
Expenses (including HP & secured debts). 893.97
Available for debt repayments........... 51.24
Monthly UNsecured debt repayments....... 200
Amount short for making debt repayments. -148.76

Personal Balance Sheet Summary
Total assets (things you own)........... 1,730
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,725
Net Assets.............................. -4,995

[/tt]

Ames

Where did the money come from that took you over the savings limit?

I have mental health problems and tend to spend because of it. I've developed a few coping mechanisms but they'll only help your wife if she wants them to. Does she know the extent of the problem? She really needs to if you're going to change things. Has she applied for benefits, such as ESA and DLA? That'll help with some of the costs associated with her condition, including the extra spending.

beanielou

Do you really spend £100 pm on clothes?
This seems really high.
So do you only have 1 creditor?

Ames

liverpoo 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.................... 1 You say your son has problems getting dressed etc, is this due to age or health problems? I ask because that could affect some of your outgoings, not to be nosy.
Monthly Income Details
Monthly income after tax................ 404.21
Partners monthly income after tax....... 0
Benefits................................ 541
Other income............................ 0
Total monthly income.................... 945.21
Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122 This seems really high compared to your mortgage, have you got all discounts you're entitled to? If your wife is on certain benefits she wont count so you'll get 25% off. You can also ask to pay it over 12 months instead of 10.
Electricity............................. 60
Gas..................................... 93.14 Ouch these are eye wateringly high.
Oil..................................... 0
Water rates............................. 22.88 not too bad but if you go on your supplier's website there'll be a calculator to show if you'd be better off with a meter. If you get one and it turns out more expensive then you can have it removed for free within a year.
Telephone (land line)................... 32 This is high, especially since it doesn't include internet or anything. Make sure you're on the right package for your use.
Mobile phone............................ 15
TV Licence.............................. 11.88
Satellite/Cable TV...................... 0
Internet Services....................... 20 This is high, you can get it for less than a tenner.
Groceries etc. ......................... 200
Clothing................................ 100 is this really per month? I'm sure you can cut it down, buy from ebay or charity shops or supermarkets, only buy what's necessary. If your wife has a spending habit, try and curtail it, if she wants I've got loads of tips.
Petrol/diesel........................... 60
Road tax................................ 10.41
Car Insurance........................... 550
Car maintenance (including MOT)......... 150
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20 What's this for?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 300
Contents insurance...................... 100 Even monthly this is a bit high, make sure you get the best deal when you need to renew and go through a cashback site.
Life assurance ......................... 0 as a homeowner with a child you really need this.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 you need something here or it'll catch you out.
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
3 star service contract................. 180 try and find it cheaper, even monthly it seems high, but I'm not an expert on insurances!
Total monthly expenses.................. 2267.31

Assets
Cash.................................... 100
House value (Gross)..................... 130 I think there's a few 0's missing here!
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1730

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 6725.....(200)......0
Total secured & HP debts...... 6725......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 945.21
Expenses (including HP & secured debts). 2,267.31
Available for debt repayments........... -1,322.1
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -1,322.1
Personal Balance Sheet Summary
Total assets (things you own)........... 1,730
Total HP & Secured debt................. -6,725
Total Unsecured debt.................... -0
Net Assets.............................. -4,995
[/tt]

I've put a few comments in, hope they help.

debrag

liverpoo 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.................... 1

Monthly Income Details
Monthly income after tax................ 404.21
Partners monthly income after tax....... 0
Benefits................................ 541
Other income............................ 0
Total monthly income.................... 945.21

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 60
Gas..................................... 93.14
Oil..................................... 0
Water rates............................. 22.88
Telephone (land line)................... 32
Mobile phone............................ 15
TV Licence.............................. 11.88
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 200
Clothing................................ 100
Petrol/diesel........................... 60
Road tax................................ 10.41
Car Insurance........................... 45.83
Car maintenance (including MOT)......... 12.5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 8.33
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 15
Total monthly expenses.................. 893.97


Assets
Cash.................................... 100
House value (Gross)..................... 130
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1730

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................6725......200.......0
Total unsecured debts..........6725......200.......-


Monthly Budget Summary
Total monthly income.................... 945.21
Expenses (including HP & secured debts). 893.97
Available for debt repayments........... 51.24
Monthly UNsecured debt repayments....... 200
Amount short for making debt repayments. -148.76

Personal Balance Sheet Summary
Total assets (things you own)........... 1,730
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,725
Net Assets.............................. -4,995

[/tt]

Have you missed off your mortgage? and should your house value be 130,000 and not 130?

liverpoo

yes it should be 130,000. sorry.

benoit

Why do you have the heating on all day in the height of summer? :eek:

liverpoo

heating only in winter months, when it warm heater is off.This worked over 12 months average. Large rooms.

Due to where we live it is north facing and do not get much sun.

I had the money when the when the factory was really busy and i was working 6 days a week, until the Labour Government came and the factory moved abroad and lot of people made redundant and my hours reduced due to lack of work.

Tixy

Liverpoo

You really need to tackle your finances, this large DWP debt will not go away and you need to start repaying it. You already have a shortfall in your finances each month so need to cut back on what you are spending.

I am sorry that your wife is depressed but that simply cannot be an excuse for her buying excessive new clothes and shoes etc. Does she realise the state of your finances? has she seen the statement of affairs you have completed above showing the £149 shortfall?
Has she been to see her doctor about her depression? this would be a far better solution than her spending money getting you further and further into debt.

What have you done to start making cutbacks since posting your SoA?

Electricity............................. 60
Gas..................................... 93.14
you usage may be high but all the more reason to check you are on the best deal. Use one of the comparison sites to see how much you can save. Are you on an online tariff? these can be 10% cheaper than the standard tariffs. http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

Telephone (land line)................... 32
Internet Services....................... 20 are you in contract? have you looked at getting a combined deal for these? These can start at just £20 or so for landline & internet together - see here - http://www.moneysavingexpert.com/phones/home-phone-calls

Groceries etc. ......................... 200
Who buys the groceries? your or your wife? have you tried looking for cheaper brands or the items you buy? compared the different supermarkets online to see which might be cheapest for you?
tried meal planning all the meals for a week before you go shopping?

Clothing................................ 100
Cannot afford this, it is a luxury that has to be stopped, buy essentials only for the child, nothing for the adults for now.

Car Insurance........................... 45.83
When is this due for renewal? make sure you start shopping around in plenty of time using the tips on this website

Buildings insurance..................... 25
Contents insurance...................... 8.33
These look quite high for the value of your property. When are they due to be renewed? make sure you shop around and only have the cover you need.

Do you have a mortgage or a loan that costs £200 per month? In the first SoA it was shown as a mortgage, in the second an unsecured loan. It does make a big difference as to the priority of your DWP debt compared to this repayment.

What is the current situation with the DWP debt? are you still making your £20 a week payments? are you now making these payments on time. At the current rate of £20 per week it is going to take you over 11years to pay off this debt. If you don't even make those payments they may well take action against you to recover this debt.