Help with creditors

inacrisis

Hi all,
Hopefully someone will be able to give me an answer to a problem we are having. A few years ago me and my partner took out a few loans (10k and 9k) and have paid back the payments no problem until we moved in together at the end of last year, she also lost hours at work so we have less money each money than we did have and alot more bills (rent council tax etc) We have done a budget sheet with the help of national debtline and sent this off to Natwest and asked them if they would accept no payment for the moment till we get back on track. They refused this as our mobile phone contracts =£60/month (were taken out nearly a year ago but are 2 year contracts) We are now going to write back with an other of £10 per loan do you think this will be accepted or are we wasting our time. It will be a struggle finding this as things are very tight at the moment.

Any help gratefully received

Tixy

You really do need to be making some payment - even if it is just a token payment. It is very rare that a bank will agree to no payments at all.

Have you called up your mobile companies to see if they will let you drop down a tariff each?

Can you post up your statement of affairs http://www.makesenseofcards.com/soacalc.html to see if people can suggest any other way of reducing your outgoings so that you can pay a bit more towards your loans.

Are these you only debts? Do you have an overdraft at all etc?

RAS

Wow some of your expenditure is really high.

But do check if you can get tax credits as well.

dannyjebb wrote: »

Hi thanks for your reply, I have some debts in my name only from a few years ago before I met my partner but thinking about it I havnt heard from them in nearly a year. just a credit card and a loan. I havnt added them on this SOA

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 650
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 80
Rent.................................... 515
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 15
Mobile phone............................ 60 - ask them to reduce the package
TV Licence.............................. 15
Satellite/Cable TV...................... 30 - this needs to go - reduce the package and then go freeview ASAP.
Internet Services....................... 15
Groceries etc. ......................... 400 - this is huge. The debt charities would allow you about £240-280 but in reality your should be able to do £140 if you really want to clear the debt. Aim for £200 in the first instance.
Clothing................................ 30 - wear what you have. Knickers and shoes onl;y if essential.
Petrol/diesel........................... 140
Road tax................................ 15
Car Insurance........................... 70 - this is high. Points or age?
Car maintenance (including MOT)......... 15
Car parking............................. 9
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.2
Pet insurance/vet bills................. 30
Buildings insurance..................... 8
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 20 - some creditors may accept this but even BRs are not guaranteed a holiday.
Emergency fund.......................... 0
Total monthly expenses.................. 1710.2

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 800......(80).......0
Total secured & HP debts...... 800.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
cc1............................1000......20........16
loan 1.........................8000......247.......8
loan 2.........................6000......184.......8
Total unsecured debts..........15000.....451.......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,710.2
Available for debt repayments........... 39.8
Monthly UNsecured debt repayments....... 451
Amount short for making debt repayments. -411.2
Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -800
Total Unsecured debt.................... -15,000
Net Assets.............................. -14,600
Created using the SOA calculator at www.makesenseofcards.com.

We had an overdraft but closed this account when we got into problems and opened a basic account with barclays so we dint get any deeper in trouble

Thanks

Tixy

Hi

dannyjebb wrote: »

Hi thanks for your reply, I have some debts in my name only from a few years ago before I met my partner but thinking about it I havnt heard from them in nearly a year. just a credit card and a loan. I havnt added them on this SOA

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 650 could partner look to get a second job to supplement her hours?
Benefits................................ 0 can either of you get working tax credits? check on entitledto.co.uk
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 80
Rent.................................... 515 is this competative for you area? any chance you could rent somewhere cheaper?
Management charge (leasehold property).. 0
Council tax............................. 116 have you doen the 5min chec to see if you are in the right council tax band?
Electricity............................. 40 pretty high - do you have arrears? have you looked around for a cheaper supplier / tariff for gas & elec?
Gas..................................... 40
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 15
Mobile phone............................ 60 try calling them up to see if they will drop you a tariff - or find out how soon they may.
TV Licence.............................. 15
Satellite/Cable TV...................... 30 not essential in your financial position. Go freeview
Internet Services....................... 15 look for a cheaper deal for landline & internet combined for about £20 or try to get free with satellite TV
Groceries etc. ......................... 400 Much too high - should be able to manage 2people on well under £200 per month, even including pets.
Clothing................................ 30 cut to absolute essentials only.
Petrol/diesel........................... 140 is this all essential driving? do you drive efficently and fill up at the cheapest stattion?
Road tax................................ 15
Car Insurance........................... 70 have you shopped around? tried all the tips on getting this reduced (using another named driver and trying to get cashback etc)
Car maintenance (including MOT)......... 15
Car parking............................. 9
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.2
Pet insurance/vet bills................. 30 what pets fo you have? is this the best deal?
Buildings insurance..................... 8
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 prob need to budget a minimal amount here.
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 20 can't afford this
Emergency fund.......................... 0
Total monthly expenses.................. 1710.2

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 800......(80).......0
Total secured & HP debts...... 800.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
cc1............................1000......20........16
loan 1.........................8000......247.......8
loan 2.........................6000......184.......8
Total unsecured debts..........15000.....451.......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,710.2
Available for debt repayments........... 39.8
Monthly UNsecured debt repayments....... 451
Amount short for making debt repayments. -411.2
Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -800
Total Unsecured debt.................... -15,000
Net Assets.............................. -14,600
Created using the SOA calculator at www.makesenseofcards.com.

We had an overdraft but closed this account when we got into problems and opened a basic account with barclays so we dint get any deeper in trouble

Thanks

I would imagine you could cut back by well over £200 per month (just on groceries alone) which would then allow you to offer your creditors around £240 between them, this sort of amout might well be acceptable to them. Then once your HP is finished you can increase the amount you pay.
If your partner can get a second job you should be well placed to increase your repayments further.

inacrisis

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 650 could partner look to get a second job to supplement her hours? Has look for other jobs but no luck she is only a healthcare assisstant and wants to start a career but we arnt in the financial position for her to go to uni.
Benefits................................ 0 can either of you get working tax credits? check on entitledto.co.uk Had a look and because we earn over the threshold amount are entitled to nothing
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 80
Rent.................................... 515 is this competative for you area? any chance you could rent somewhere cheaper? Yeh we live in Cheshire all houses about the same price
Management charge (leasehold property).. 0
Council tax............................. 116 have you doen the 5min chec to see if you are in the right council tax band? Is the band B paid over a 10 month period
Electricity............................. 40 pretty high - do you have arrears? have you looked around for a cheaper supplier / tariff for gas & elec? Have switched to npower who were the cheapest based on our previous 6 months in the house although we are probably paying a bit too much according to pur electric monitor
Gas..................................... 40
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 15
Mobile phone............................ 60 try calling them up to see if they will drop you a tariff - or find out how soon they may. Have looked and they will only let us switch to more expensive tariffs, will ask when we could move to a lower tariff
TV Licence.............................. 15
Satellite/Cable TV...................... 30 not essential in your financial position. Go freeview As with the phones its on contract but can switch to lowest option 18/ month
Internet Services....................... 15 look for a cheaper deal for landline & internet combined for about £20 or try to get free with satellite TV With BT and its an 18 month contract so another year to go yet and its not even unlimited
Groceries etc. ......................... 400 Much too high - should be able to manage 2people on well under £200 per month, even including pets. Under £200 a month? its nearly £100 for pet food?? about 50 for dinners at work for us both so £12.50 a week??
Clothing................................ 30 cut to absolute essentials only. I was guided to a site that gave the figure as £80 but will cut this out
Petrol/diesel........................... 140 is this all essential driving? do you drive efficently and fill up at the cheapest stattion? Yeh i have a long commute and use shell which is the cheapest in our area except when tesco have there 5p off promotion.
Road tax................................ 15
Car Insurance........................... 70 have you shopped around? tried all the tips on getting this reduced (using another named driver and trying to get cashback etc) Yeh was paying over a 1000 last year Have got it to 700+100 for breakdown cover
Car maintenance (including MOT)......... 15
Car parking............................. 9
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.2
Pet insurance/vet bills................. 30 what pets fo you have? is this the best deal? Have a Bearded collie dog and 2 Maine coon cats This is the best we can find for a lifetime policy and I thought it was very cheap
Buildings insurance..................... 8
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 prob need to budget a minimal amount here.
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 20 can't afford this Again was directed to a site that said your allowed upto £80 a month ???
Emergency fund.......................... 0
Total monthly expenses.................. 1710.2

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 1200

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 800......(80).......0
Total secured & HP debts...... 800.......-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
cc1............................1000......20....... .16
loan 1.........................8000......247.......8
loan 2.........................6000......184.......8
Total unsecured debts..........15000.....451.......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,710.2
Available for debt repayments........... 39.8
Monthly UNsecured debt repayments....... 451
Amount short for making debt repayments. -411.2
Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -800
Total Unsecured debt.................... -15,000
Net Assets.............................. -14,600

Marisco

Hi inacrisis, I love cats I've got 2, but what on earth are you feeding yours on for £100 pm? :eek: Even allowing for the dog that is very high!! £50 is very high for lunches, could you not take a "packed lunch" and a flask of coffee/tea? That would bring the cost right down. With the council tax, look to paying over 12 mths rather than 10, I do that and it lowers the payments and saves messing about with changing SO's or DD's.

Tixy

inacrisis wrote: »

Groceries etc. ......................... 400 Much too high - should be able to manage 2people on well under £200 per month, even including pets. Under £200 a month? its nearly £100 for pet food?? about 50 for dinners at work for us both so £12.50 a week??

Some suggestions

Look for cheaper pet foods or cheaper places to buy it, stock up when its on offer. Take packed lunches to work as these work out much cheaper. There are people feeding a family of 5 for £200 - £250 per month (including all cleaning products etc). So you should be able to do 2 of for around the £140 mark, leaving £60 for pet foods. Try the discount supermarkets like aldi and netto for pet food, even their premium brands are fairly cheap.

Try meal planning your meals for the week ahead before you go shopping to ensure you only buy what you need. Shop around different supermarkets to see which are the cheaper. Cook meals from scratch and perhaps try bulk cooking and freezing extra portions as this can work out cheaper and means you can have a quick meal on nights you get in late/tired from work (cheaper than going for ready meals or a takeaway).
Try discount shops such as £shops, wilkos, bargain shops for cleaning products & toiletries.
Try the drop a brand challenge on your groceries - http://www.moneysavingexpert.com/shopping/cheap-supermarket-shopping?dd#downshift

It might take a couple of months for you to adjust but no reason you can't eat well and healthily on half what you are spending now.

inacrisis

Thanks for the advice but we do most if the stuff you say anyway! I suppose we make a few extra trips to the shops, we usually do a big shop at the start of the month, buy all our pasta, curry, chilli sauces, we are both vegetarian so don't eat meat so buy quorn which we usually get on offer, we buy all the cleaning products from poundstretcher! We go to costco once a month and bulk buy kidney beans chickpeas etc for currys chillis etc. We feed the pets royal canin and royal canin mainecoon cost about 45-50 for the dog and about 50-55 for the 2 cats if you looked what goes into the supermarket so called premium pet foods you would think twice about feeding a family member that. I take butties to work each day which works out about 8-9 quid a week and same for the other half. We are going to keep every receipt this month and see what extra we are spending at the shops that we don't need!

Thanks

RAS

Hi

You need to go over to the old style money saving forum and read up some of the threads there. If you want to frighten yourself look at Weezl's amazing 50p threads but there are l;ots of other vegaratian threads.

Will be back with a bit more info on pet food in a mo.

myothercarisaferrari wrote: »

£60 a month on dog food? What are you feeding - a horse?:eek::eek: I have two dogs and a bag of specialist hypoallergenic food costs me £15 every two months for a 15kgbag

Send apm to MOCIAF or go over to the pet forum and someonew will help you.