What next? Can I negotiate credit card repayments for 3 months?

Clowy2

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1298
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1298

Monthly Expense Details
Mortgage................................ 386
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 41
Gas..................................... 50
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 14
Mobile phone............................ 25
TV Licence.............................. 10
Satellite/Cable TV...................... 47
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 70
Road tax................................ 10
Car Insurance........................... 18
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 18
Buildings insurance..................... 11
Contents insurance...................... 10
Life assurance ......................... 14
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 14
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1123


Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 92500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 52000....(386)......0.5
Total secured & HP debts...... 52000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................1700......45........15
credit card....................4500......100.......12.9
credit card....................1500......50........14
Owe family.....................980.......50........0
Loan...........................2000......98........7
Loan...........................3500......95........12
Store card.....................670.......60........29
Total unsecured debts..........14850.....498.......-


Monthly Budget Summary
Total monthly income.................... 1,298
Expenses (including HP & secured debts). 1,123
Available for debt repayments........... 175
Monthly UNsecured debt repayments....... 498
Amount short for making debt repayments. -323

Personal Balance Sheet Summary
Total assets (things you own)........... 92,500
Total HP & Secured debt................. -52,000
Total Unsecured debt.................... -14,850
Net Assets.............................. 25,650

My partner is moving in with me next month and will be contributing £350 towards bills and food etc, which will help me enormously. In the short term I need to either reduce my mortgage payments, or credit card payments until I can get straight. I'm spending on cc every month because my minimum payments leave me with nothing! I need help before I get in any deeper and cant get out!!!!

My partner owes me £4500 of the credit card debt, as he couldnt get a loan at the time and I've helped him out. Hes now able to pay this back as soon as he moves in with me. I know it sounds like a stupid thing to do, but we have a loan between us, which he pays his half every month without fail.

In the next three months I really need a break but will this affect my credit score if I ring and ask for a payment break?

My mortgage is currently a lifetime tracker 0.5% repayment over 13 years. I am really hesitant to lengthen the term as its the only thing I have to hold on to that my mortgage will be paid off when I'm 50. Could I ask them about interest only for a few months?

Thanks for advice. I'm at work, so not had a chance to hve a look through other threads yet, but so glad I found this forum!

immoral_angeluk

Yes, you certainly can do. Or you could go to someone like CAB, CCCS, National Debtline who will negotiate for you. Also just to mention although you have some surplus income and decent equity I wouldn't even bother looking at an IVA as your debts are too low, if you had heard about these anywhere. You also wouldn't be eligible for a DRO so you'd be looking at make pro rata payments.
Have you checked if you are entitled to any working tax credit?

Check out this link, there is also a wealth of info on here from people who have experience of pro rata payments. So please feel free to fire off any questions.
http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew/how_to_sort_out_your_debts.htm

podperson

Hi Clowy,

Welcome to the forums! I would suggest first maybe looking at whether you could make any reductions in your outgoings.
Is your council tax being paid on 12 months or 10? If it's 10 then spread out over 12. Gas and electric seem a bit high so would check comparison sites for that. Are you tied into a contract on the mobile phone, if not could you drop to a lower package or go on PAYG for a bit? Also Sky seems very expensive, could you at least drop to the basic package if not freeview, if you do have to keep it can you at least get a package with the landline included to save a bit?
Groceries could be cut down a bit, there are 2 of us in our house and spend about £150 a month on groceries, have a look at the boards for some really good tips on saving money on shopping.

With the loan to family would they maybe allow you a few months leeway on this while you get sorted and your partner moves in? Would definately suggest calling the credit card and loan companies and asking about reduced payments but some are more helpful then others and would be very surprised if any of them would give you a complete payment break, they would tend to expect at least something every month.

Is your partner only working part-time if they are going to be giving you £350 a month? Would look into tax credits when they move in as well, looks like you might be over the limit at the moment but am pretty sure it is higher for couples.

Clowy2

Thank you for your replies.

Its been a really big wake up call reading through the threads and I've realised my attitude towards my debts is totally wrong and I need to sort it now.

I'm going to set some time aside to organise myself properly and keep coming back here every day for advice and motivation.

I'm tied into a contract with my mobile phone and Sky until December and already pay Council Tax over 12 months. My Gas and Electric supplier wont let me out of the contract until I pay off the balance outstanding which is £149. Should I be asking my partner for more money?

I've got a whole wardrobe of clothes which I'm putting on ebay at the weekend - then I'm doing a car boot also and the money is going towards paying off the store card.

I'm also going to ring the credit card companies and explain my situation and see what they can do??? Will let you know how it goes.

Thanks again

podperson

Sounds like you are getting organised I've found it makes me feel so much better to be actually sorting things and trying to do something about the debts rather than hiding in a corner and hoping they go away (as I did do for quite a while!!)

With regards to asking your partner for more money it depends on what their circumstances are. If they are working full time then yes definately, if they are moving in with you and earning a similar amount then surely they should be spliting the bills with you roughly down the middle?

Good luck with the cc companies! If you really get no where with them then might be worth going through CCCS or Payplan, sometimes they don't like to budge for individuals but will do it for debt companies. Make sure you go with a debt charity though so they don't charge you for it.

bargainbetty

Without being mercenary here, perhaps your partner is now in a position where his credit is better, and he could take that £4500 back into his own name. Look for good credit cards deals for him, and suggest that it goes back to him. You aren't just lending him money the way you are doing it, unless he is repaying you the interest too.....?

I do apologise, but it is always risky to take on debt from another person unless you have some security - you did him a favour, perhaps it is now time for him to take back the debt, which is currently throwing you over the edge.

Good luck x