On behalf of a friend

climbintheladderouttadebt

Best mate's SOA

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 700 (approx, and she's aiming to increase hours soon)
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 700

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40 (in a contract, this is the most she pays, its usually less, cannot get out of contract or awhile and I don't think it can be reduced but will check)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20 (lunch, drinks at work etc)
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 8
Car parking............................. 0
Other travel............................ 87 (train travel to and from work, works out cheaper than driving & parking)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7 (for monthly anti-depressants)
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 5
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 567

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Kays...........................120.......1.........0
Barclaycard....................126.......1.........0
Vanquis........................414.......1.........0
Capital One....................640.......1.........0
Natwest........................1310......1.........0
Nationwide.....................3061......1.........0
Moneyshop......................419.......1.........0
Vanquis........................665.......1.........0
Total unsecured debts..........6755......8.........-

Monthly Budget Summary
Total monthly income.................... 700
Expenses (including HP & secured debts). 567
Available for debt repayments........... 133
Monthly UNsecured debt repayments....... 8
Amount left after debt repayments....... 125

Personal Balance Sheet Summary
Total assets (things you own)........... 200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,755
Net Assets.............................. -6,555

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

Mate lives at home, has mental health problems but refuses to give up work. She's been signed off a few times when she's been bad. A total breakdown in February has made her re-assess her lifestyle. I've offered to help and come here for more advice really.

I'm looking into unenforceability for her old debts and some f&fs if any companies will accept. Will set up proper payment plans with whoever we can.

Looks like it could take a lot of work!

stevieb1

climbintheladderouttadebt wrote: »

Best mate's SOA

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 700 (approx, and she's aiming to increase hours soon)
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 700

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40 (in a contract, this is the most she pays, its usually less, cannot get out of contract or awhile and I don't think it can be reduced but will check)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20 (lunch, drinks at work etc)
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 8
Car parking............................. 0
Other travel............................ 87 (train travel to and from work, works out cheaper than driving & parking)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7 (for monthly anti-depressants)
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 5
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 567

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Kays...........................120.......1.........0
Barclaycard....................126.......1.........0
Vanquis........................414.......1.........0
Capital One....................640.......1.........0
Natwest........................1310......1.........0
Nationwide.....................3061......1.........0
Moneyshop......................419.......1.........0
Vanquis........................665.......1.........0
Total unsecured debts..........6755......8.........-

Monthly Budget Summary
Total monthly income.................... 700
Expenses (including HP & secured debts). 567
Available for debt repayments........... 133
Monthly UNsecured debt repayments....... 8
Amount left after debt repayments....... 125

Personal Balance Sheet Summary
Total assets (things you own)........... 200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,755
Net Assets.............................. -6,555

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

Mate lives at home, has mental health problems but refuses to give up work. She's been signed off a few times when she's been bad. A total breakdown in February has made her re-assess her lifestyle. I've offered to help and come here for more advice really.

I'm looking into unenforceability for her old debts and some f&fs if any companies will accept. Will set up proper payment plans with whoever we can.

Looks like it could take a lot of work!

if there is 125 a month spare? can she not pay off the smaller debts first get them out the way ie kays, barclaycard that would be the 2 months surplus gone but 2 debts down, so 2 lots of phone calls/letters etc less.

is she sure there is no interest being added?
check for any benefit entitlement?
ask parents to delay the rent for a couple of three months to ease the debt problem?

climbintheladderouttadebt

stevieb1 wrote: »

if there is 125 a month spare? can she not pay off the smaller debts first get them out the way ie kays, barclaycard that would be the 2 months surplus gone but 2 debts down, so 2 lots of phone calls/letters etc less. It's something we'll look into, usually with her excess she has other stuff to pay - last month it was a fine for not insuring her car (it ran out when she had her breakdown and the silly girl didn't renew it as soon as she realised as she didn't have the money, got caught the week before she could pay!). Previously she had to catch up on rent and what she had borrowed from people where she'd gotten behind as she was off work.

is she sure there is no interest being added? It doesn't seem so, but I'm going to ask for statements on all accounts to check
check for any benefit entitlement? Not entitled to a thing. It's the single person's curse!
ask parents to delay the rent for a couple of three months to ease the debt problem?

Her parents have tried so much to help but can't afford to wait for rent. They looked into getting a loan out to cover her debts but she wouldn't have been able to afford the repayments.

Her mum gets calls everyday on the landline hassling for money and postcards from debt collectors through the door. I'm asking her to keep a record of who calls and when so I can send of the harrassment by phone letters.

THey are such a lovely family - mum, dad, 3 kids. Friend's mum has a son who has serious heart problems and daughter (my friend) with mental health problems, it tears her to pieces. Last time friend got ill she took several overdoses (the 'numb' feeling it gave her helped her get through just a few more days, she said), her mum said to me 'I have one child fighting to stay alive and another fighting to die'.

It breaks my heart. Thanks for looking over this, Stevieb1, I really want to do anything I can to help them. They've made me and my daughter feel like part of their family when we had no-one else, they are such diamonds I cannot believe the luck they suffer sometimes!

Anyway, heart to heart over lol! Got my own bl00dy stuff to deal with now, Credit Expert and their rubbish! :mad:

climbintheladderouttadebt

Mmm looks like there are some payday type loans somewhere too. I've got her bank statements so will have to sort through them to see what she's had put in, taken out, and then ask if she remembers anything else of importance!

SOA is in need of change already - her £15 per month payment for her contact lenses to the opticians hasn't been included, and she's made no provisions for things like shampoo and other womanly bits! lol.

But it seems all debts are with dca's except her Nationwide loan, so interest shouldn't be an issue but will be looking more into it.

Up until February, she payed money into a DMP with Kensington, but not all her debts were included in it, and she still got hassled for payments by phone and letter. She told me of another company offering their services and I've told her not to waste her money. They offered to clear her debts in 5 years - I told her I'd help her do it quicker than that and I won;t be taking any money off her!

I guess it's pretty much a waiting game now til her credit reports come through. Ho hum!

Tixy

Hi

How likely do you think it is she'll be able to increase her income?
When she is off work unwell does she get paid or just statutory sick pay or nothing at all?

How long has she been paying token payments for? since she left kensington? (good move to leave them).

Has she sought advice from one of the debt charities? If she is unlikely to be able to increase her income then I would look into the possibility of a debt relief order. Whilst she is showing a surplus greater than a DRO would allow at the moment if she put in other reasonable figures she might well come up with less than £50 left - eg she could put in her full grocery costs not just the extras (I realise her parents probably pay this at the moment but if things are difficult for them financially then maybe doing a DRO and her paying more for her own groceries would help everyone).

Not an expert on DROs but it would seem she might fit the criteria, a debt charity would advise best.

McKneff

Shes spending £87 a month on train travel to and from work but still spends £80 a month on diesel/petrol, that cant be right surely.

Does she really need a car.

climbintheladderouttadebt

Tixy wrote: »

Hi

How likely do you think it is she'll be able to increase her income? She is aiming to increase her hours in the next few months, she does 30 hours plus but not 36 hours yet so can do more.I think she has an assessment coming up soon. Her workplace have been fantastic.

When she is off work unwell does she get paid or just statutory sick pay or nothing at all? SSP I believe, but it;s not much as she 's only contracted for 20 hours.

How long has she been paying token payments for? since she left kensington? (good move to leave them). It's because of her breakdown that she stopped paying. Sadly this is the first month in which I'm trying to get her to pay anything. Because she paid her police fine this month, her spare cash has been eaten and she's already needing to borrow money to get by for the rest of the month. Not sure what she has to cover yet so will try to get her to write eveything down for me.

Has she sought advice from one of the debt charities? If she is unlikely to be able to increase her income then I would look into the possibility of a debt relief order. Whilst she is showing a surplus greater than a DRO would allow at the moment if she put in other reasonable figures she might well come up with less than £50 left - eg she could put in her full grocery costs not just the extras (I realise her parents probably pay this at the moment but if things are difficult for them financially then maybe doing a DRO and her paying more for her own groceries would help everyone). Mmm that's intersting, I'll talk to her about it. She's not good at thinking, talking and dealing with debt at all but in the right frame of mind I might get her to call CCCS. We've had another friend go through the CCCS, in fact we're seeing him today. I may subtly ask him some questions.

Not an expert on DROs but it would seem she might fit the criteria, a debt charity would advise best.

As it turns out, her wages aren't even £700 per month. Last figures show £600-£630. She seems quite clueless about it all and I really want to help educate her on money, debt, finances and how to handle them, so she can try to avoid falling into the same trap again.

I can speak to her from personal experience. Although my current doctor has never helped, I know I suffer from mental health issues myself (diagnosed with depression at 15, but suffered for years beforehand, and no-one had any idea). Last summer I went mad with my spending, and bought all sorts that I didn't need, bought lots for others, and maxed out my Next account. I was completely manic and really felt like I could handle it, or that the debt would get written off or something, I don;t know what I was thinking! I'm fortunate enough, I guess, that I get very obsessive over things, and had a pretty quick recovery time this time (5-6 months) so started obsessing over sorting out my problems and debts. Life is certainly never dull!!

LOL :rotfl:

climbintheladderouttadebt

Hi McKneff,

To be honest I'd say she doesn't need it, but she really seems to go mad without her own transport. Plus she uses it to help out her mum by picking up her brother from school etc when she can. I think I'll see where she goes to spend so much on petrol. She visits me a few nights a week and its a 20-30 minute drive from hers. It's difficult to offer to go to hers as with no car of my own, no local transport in the evenings and a 3 year old, nights out aren't really an option.

Petrol spending needs to be cut, though.

GEEGEE8

£20 a month on groceries? Is that correct?

GEEGEE8

£158 a month could be saved from the car.. and that's not including any repair bills if it goes wrong, or new tyres etc..

climbintheladderouttadebt

WELL

Even more info to boggle my mind!

ScotCall have been in touch in regards to an Orange debt - now this is not hers, it is not the mobile phone contract in which she is in, however it appears there's a contract in her name with a debt of over £1,000! Now I'm pondering, do we send them the normal CCA request letter, as she will not have signed for this? It appears the contract was taken out in 2008/2009 but it's only when arrears occurred that my friend thinks anything was sent to her (althoug she may have automatically thrown post out thinking ot was to do with her current contract, which she has had for years)