My Soa

debtaholics

This is my SOA , we have contacted payplan and they have advised to either set up a DMP or go for an IVA. Can anyone give their opinions?

We have tried to cut back already by doing things like cancelling sky and trying to reduced grocery spending, any other ideas? Thank you in advance.


Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 529
Partners monthly income after tax....... 1250
Benefits................................ 0
Other income............................ 433 cb and tax credits
Total monthly income.................... 2212

Monthly Expense Details
Mortgage................................ 558
Secured/HP loan repayments.............. 355
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131
Electricity............................. 38
Gas..................................... 40
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20
Mobile phone............................ 25.51
TV Licence.............................. 12.21
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 380
Clothing................................ 50
Petrol/diesel........................... 70
Road tax................................ 5
Car Insurance........................... 35.5
Car maintenance (including MOT)......... 5
Car parking............................. 12
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 29.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 19.95 both buildings and contents
Contents insurance...................... 0
Life assurance ......................... 10.08
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1841.75


Assets
Cash.................................... 0
House value (Gross)..................... 159950
Shares and bonds........................ 0
Car(s).................................. 20000
Other assets............................ 0
Total Assets............................ 159950


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 104950...(558)......4.49
Hire Purchase (HP) debt ...... 19627....(355)......9
Total secured & HP debts...... 124577....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds ........................14970.....297.......16.62
MBNA...........................15126.....300.......29.9
Halifax........................7939......93.42.....5.94
Ikano..........................236.......8.62......28.9
Asda...........................2600......80........16.53
Mint...........................6835......153.......19.16
Next...........................1012......95.45.....26
Virgin.........................2300......35........16
Total unsecured debts..........51018.....1062.49...


Monthly Budget Summary
Total monthly income.................... 2,212
Expenses (including HP & secured debts). 1,841.75
Available for debt repayments........... 370.25
Monthly UNsecured debt repayments....... 1,062.49
Amount short for making debt repayments. -692.24

Personal Balance Sheet Summary
Total assets (things you own)........... 179,950
Total HP & Secured debt................. -124,577
Total Unsecured debt.................... -51,018
Net Assets.............................. 4355

TUS

A few comments ...

debtaholics wrote: »

This is my SOA , we have contacted payplan and they have advised to either set up a DMP or go for an IVA. Can anyone give their opinions?

We have tried to cut back already by doing things like cancelling sky and trying to reduced grocery spending, any other ideas? Thank you in advance.


Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 529 Full time or part time?
Partners monthly income after tax....... 1250
Benefits................................ 0
Other income............................ 433 cb and tax credits
Total monthly income.................... 2212

Monthly Expense Details
Mortgage................................ 558
Secured/HP loan repayments.............. 355
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131
Electricity............................. 38 Shopped around for the cheapest supplier?
Gas..................................... 40 Shopped around for the cheapest supplier?
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20 Line rental should only be about £12. Are you making calls on this as well as your mobiles?
Mobile phone............................ 25.51 Maybe time to use a PAYG service
TV Licence.............................. 12.21
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 380 This can def be reduced to around 200 with frugal spending. See the old style board.
Clothing................................ 50 This is £600 per year! You need to turn to eBay and buy secondhand. You can save a lot here.
Petrol/diesel........................... 70 Public transport an option? Walking/cycling?
Road tax................................ 5
Car Insurance........................... 35.5 Have you shopped around?
Car maintenance (including MOT)......... 5
Car parking............................. 12
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 29.5 Whats this for?
Pet insurance/vet bills................. 0
Buildings insurance..................... 19.95 both buildings and contents
Contents insurance...................... 0
Life assurance ......................... 10.08
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10 Cut this out. Use Students, boys get done at home.
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1841.75


Assets
Cash.................................... 0
House value (Gross)..................... 159950
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 159950


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 104950...(558)......4.49
Hire Purchase (HP) debt ...... 19627....(355)......9
Total secured & HP debts...... 124577....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds ........................14970.....297.......16.62
MBNA...........................15126.....300.......29.9
Halifax........................7939......93.42.....5.94
Ikano..........................236.......8.62......28.9
Asda...........................2600......80........16.53
Mint...........................6835......153.......19.16
Next...........................1012......95.45.....26
Virgin.........................2300......35........16
Total unsecured debts..........51018.....1062.49...
* Wow, lots of debts there. Tackle these one at a time, highest APR first. If, after making cuts, you are not breaking even you will prob need a DMP. There are lots of posts/guides on here for writing letters to creditors offering token payments - start reading these as these debts are hitting you very hard.

Monthly Budget Summary
Total monthly income.................... 2,212
Expenses (including HP & secured debts). 1,841.75
Available for debt repayments........... 370.25
Monthly UNsecured debt repayments....... 1,062.49
Amount short for making debt repayments. -692.24

Personal Balance Sheet Summary
Total assets (things you own)........... 159,950
Total HP & Secured debt................. -124,577
Total Unsecured debt.................... -51,018
Net Assets.............................. -15,645

The only other consideration is whether or not it is worth your while selling your house. Worst case scenario, but it could offer a fresh start.

Numpty_Monkey

debtaholics wrote: »

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 529
Partners monthly income after tax....... 1250
Benefits................................ 0
Other income............................ 433 cb and tax credits
Total monthly income.................... 2212

Monthly Expense Details
Mortgage................................ 558
Secured/HP loan repayments.............. 355
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131 ask to pay over 12 months
Electricity............................. 38 turn things off not standby, low energy bulbs where possible, use comparison and cashback sites
Gas..................................... 40 as electric, turn heating hot water thermostat down a couple of degress
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20 is this bundled with internet
Mobile phone............................ 25.51, try to reduce usage to the free minutes ,
TV Licence.............................. 12.21
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 380 The good people on the Old style board will help you reduce this
Clothing................................ 50 Wear what you have, and use charity shops
Petrol/diesel........................... 70
Road tax................................ 5
Car Insurance........................... 35.5 use comparrison and cashback sites
Car maintenance (including MOT)......... 5
Car parking............................. 12
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 29.5 is it worth getting a prepaid certifcate
Pet insurance/vet bills................. 0
Buildings insurance..................... 19.95 both buildings and contents as car
Contents insurance...................... 0
Life assurance ......................... 10.08 as car
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1841.75


Assets
Cash.................................... 0
House value (Gross)..................... 159950
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 159950


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 104950...(558)......4.49
Hire Purchase (HP) debt ...... 19627....(355)......9
Total secured & HP debts...... 124577....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds ........................14970.....297.......16.62
MBNA...........................15126.....300.......29.9
Halifax........................7939......93.42.....5.94
Ikano..........................236.......8.62......28.9
Asda...........................2600......80........16.53
Mint...........................6835......153.......19.16
Next...........................1012......95.45.....26
Virgin.........................2300......35........16
Total unsecured debts..........51018.....1062.49...


Monthly Budget Summary
Total monthly income.................... 2,212
Expenses (including HP & secured debts). 1,841.75
Available for debt repayments........... 370.25
Monthly UNsecured debt repayments....... 1,062.49
Amount short for making debt repayments. -692.24

Personal Balance Sheet Summary
Total assets (things you own)........... 159,950
Total HP & Secured debt................. -124,577
Total Unsecured debt.................... -51,018
Net Assets.............................. -15,645

I've left a few suggestions:A

I personally think an IVA is not suitable so don't go for that
A DMP is a better option and hopefully the intrest gets stopped
and I would not rule out Bancruptcy
Why not call one of the other Non-profit Debt Counsellors' List
and get a second professional opinion:A

debtaholics

Thanks for the replies.

I work part time as I have a 2 and a 4 year old to look after and so working any more hours costs me too much in child care.

The medical is for my contact lenses and I allowed £10 a month for dentist.

DVardysShadow

Oh dear. I am thinking bankruptcy - but I do remember a recent thread where bankruptcy looked to be the solution, but actually some of the debts fell off reasonably quickly, so it would not have been the right thing to do. debtaholics, can you go through your unsecured debt and your HP and tell us what is a loan and what is credit card debt. And for the loans tell us [initial amount borrowed, number of months payment initially, number of months left, monthly payment].

babymoo

Can you not wear glasses instead of the contact lenses? Would definately save you some money. Everything else I can think of has already been said. Good luck x

debtaholics

All the unsecured lending is for credit cards.

The HP is for a car which we got in December with 3 years finance and then a balloon payment at end. I am not sure if I should have put value of car as asset the car is worth approx £20,000 but we can not stop paying the HP until we have paid half the payments.

HappyMJ

Yes you should have put it as an asset as it makes your net worth positive therefore a bankruptcy is less likely to be recommended.

I'm still thinking borderline DMP. Difficult one to recommend on though.

Would you go back to work full time when your youngest is at school?

debtaholics

I have now amended the soa to include the car so it does now show we have some assets.

Yes I will be going back to work full time when youngest is at school.

Thanks for the advice so far it is only in the past week or so that we have actually come to deal with the debt and even though I have spoken to Payplan I thought that some advice from here wouldn't hurt either.

DVardysShadow

debtaholics wrote: »

I have now amended the soa to include the car so it does now show we have some assets.

Yes I will be going back to work full time when youngest is at school.

Thanks for the advice so far it is only in the past week or so that we have actually come to deal with the debt and even though I have spoken to Payplan I thought that some advice from here wouldn't hurt either.

I know it is crying over spilt milk, but whatever possessed you to get this car? Would the answer shed any light on your situation?

purpleheather2810

The way I see it, you need to give the car back (if possible?) and buy a cheap runaround. This would make a massive difference to your shortfall. Also would it be possible to do some work in the evening after your partner gets home from work? Maybe some bar work? I know this would be tough - I've done it myself and my kids are pretty much the same age - but it wouldn't be forever.