The best way to approach things...

LisaLash

Hi,

I have the following outstanding "bad" debts,the DCA's are hounding me constantly. Below I have listed what I owe out and to who but I'm wondering the best way to start handling them;

£654 - Shop Direct (Capquest) Taken Out 03/07/07
£183 - Halifax (Oliver, Blair and Scott) Taken Out 15/4/98
£218 - Lowell Finanace Taken Out 05/01/08 - Offered a f&f of £159
£329 - Shop Direct Taken Out 01/04 - Trying the Unforcabillty route with this one.

I know they are not much but they are a constant headache and the sooner I get them sorted the better.

Any advice anyone??

Thanks

IcklePickle_2

What are your circumstances at the moment? Is there any way you can cut down your spending / outgoings and try to clear them one at a time? If you can post a SOA using the sticky at the top we can give you some advice on where you could cut down or make savings.

The unenforceability and F&F offer routes will have an impact on your future credit rating, so if it's at all possible to pay them that's usually a better option. They are relatively small amounts (if you're working that is, which is why a SOA helps)

LisaLash

Icklepickle, what is the "sticky" thing for the SOA???

Thanks

Numpty_Monkey

You can use this for the SOA
http://www.makesenseofcards.com/soacalc.html

It helps give us a bigger picture of whats going on

LisaLash

IHousehold Information[/b]
Number of adults in household........... 2 (Only really want to put in my income)
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250

Monthly Expense Details
Mortgage................................ 500 (we put £500 in each and this covers all the outgoings for the house).
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 30
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 26
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 40
Entertainment........................... 75
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 711


Assets
Cash.................................... 0
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 550 (it's an old banger)
Other assets............................ 0
Total Assets............................ 75550


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(500)......0
Total secured & HP debts...... 0.........-.........- [/B]

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................200.......10........27.9
Credit Card....................260.......10........24
Next Account...................250.......20........26
Loan...........................600.......60........NaN
Loan ..........................967.......90........NaN
Total unsecured debts..........2277......190.......-


Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 711
Available for debt repayments........... 539
Monthly UNsecured debt repayments....... 190
Amount left after debt repayments....... 349

Personal Balance Sheet Summary
Total assets (things you own)........... 75,550
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,277
Net Assets.............................. 73,273ncome, Expense, Debt & Asset Details

**confuzzled**

LisaLash wrote: »

IHousehold Information[/b]
Number of adults in household........... 2 (Only really want to put in my income)
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250

Monthly Expense Details
Mortgage................................ 500 (we put £500 in each and this covers all the outgoings for the house).
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0 No Mobile?? Or is included in the £500??
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 30 Make do with what you have for now and put this towards the debts
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 26
Car maintenance (including MOT)......... 0 There really should be something here, ready for the unexpected, especially if you're car is old:)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0 If you have a mortgage surely you have this? or is in the £500 again?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 you need to budget for this, mine is £10 p/m to give you an idea:)
Haircuts................................ 40 Can this be reduced? go less regularly etc
Entertainment........................... 75
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 711

Assets
Cash.................................... 0
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 550 (it's an old banger)
Other assets............................ 0
Total Assets............................ 75550

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(500)......0
Total secured & HP debts...... 0.........-.........- [/B]

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................200.......10........27.9
Credit Card....................260.......10........24
Next Account...................250.......20........26
Loan...........................600.......60........NaN
Loan ..........................967.......90........NaN
Total unsecured debts..........2277......190.......-


Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 711
Available for debt repayments........... 539
Monthly UNsecured debt repayments....... 190
Amount left after debt repayments....... 349 do you actually have this left each month??? If not then do a spending diary and write down every little purchase to see where you can make changes

Personal Balance Sheet Summary
Total assets (things you own)........... 75,550
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,277
Net Assets.............................. 73,273ncome, Expense, Debt & Asset Details

I'm assuming you did only put in your income?:) I've put my suggestions in pink and tbh if you do have that amount left each month then you should be able to get rid of the debts without too much problem.

Also is there anything left in the 'house fund' at the end of each month? if so what are you doing with this? could it go towards debts??
HTH and good luck x

LisaLash

I pay roughly £35 per month on my mobile...I have a few months left on the contract and I plan on going to a lower tariff.

I suppose I do filter away a lot of money on "house" things...plants, curtains that kind of thing. Suppose I just need to screw my head on and start facing up to things and getting them paid.

I really want to start paying over and above the minimum payments on my cards as I know this can have an effect on your credit file.

NorthernLas

So the £35 needs to go into your SOA and you need to put something in for road tax as well.
Could you do a spending diary for your personal stuff so that you can work out where the money that you have spare goes?
Rather than beat yourself up, with a spending diary you can make a choice as to whether you buy a coffee/lunch each day or take from home saving (£5 a day / £100 a month / £1200 a year)
Once you have a system that works for you it will be much easier

Are the DCA debts in your SOA? If not they need to be in there too ... if you have not paid for a while you may want to offer F&F once you have a couple of months of spare cash saved up.

LisaLash

Ok I have updated it now to include the mobile and car tax and the older outstanding debts. What I'm wondering is should I pay the big one first or pay off the smaller ones first...

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details[/b]
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1250
Monthly Expense Details
Mortgage................................ 450
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 30
Petrol/diesel........................... 40
Road tax................................ 12
Car Insurance........................... 26
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 40
Entertainment........................... 75
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 708

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 550
Other assets............................ 0
Total Assets............................ 550

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(450)......0
Total secured & HP debts...... 0.........-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................952.......90........0
Loan...........................600.......60........0
Credit Cards...................200.......10........0
Overdraft......................185.......0.........0
Catalogue......................659.......0.........0
Catalogue......................392.......0.........0
Catalogue......................218.......0.........0
Catalogue......................200.......20........0
Credit Cards...................200.......10........0
Total unsecured debts..........3606......190.......-

Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 708
Available for debt repayments........... 542
Monthly UNsecured debt repayments....... 190
Amount left after debt repayments....... 352
Personal Balance Sheet Summary
Total assets (things you own)........... 550
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,606
Net Assets.............................. -3,056

Numpty_Monkey

LisaLash wrote: »

Ok I have updated it now to include the mobile and car tax and the older outstanding debts. What I'm wondering is should I pay the big one first or pay off the smaller ones first...

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details[/b]
Monthly income after tax................ 1250
Partners monthly income after tax....... 0
Benefits................................ 0 are you claiming anything check Entitledto. com
Other income............................ 0
Total monthly income.................... 1250
Monthly Expense Details
Mortgage................................ 450 you need to only have the cost of mortgage in here
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 ?
Electricity............................. 0 how much for gelectric and gas
Gas..................................... 0 check your usuage use comparrison sites to see if yu are on the best tarrif
Oil..................................... 0
Water rates............................. 0 ?
Telephone (land line)................... 0 ?
Mobile phone............................ 35 look at reducing the tarrif/contract
TV Licence.............................. 0 ?
Satellite/Cable TV...................... 0 ?
Internet Services....................... 0 ?
Groceries etc. ......................... 0 ?
Clothing................................ 30 reduce, wear what you have sell on ebay stuff you don't wear
Petrol/diesel........................... 40
Road tax................................ 12
Car Insurance........................... 26 any insurrance use comparrison and cashback sites
Car maintenance (including MOT)......... 0 budget something here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 you should have this
Contents insurance...................... 0 you should have this
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 40
Entertainment........................... 75
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 708

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 550
Other assets............................ 0
Total Assets............................ 550

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(450)......0
Total secured & HP debts...... 0.........-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................952.......90........0 ?
Loan...........................600.......60........0 ?
Credit Cards...................200.......10........0 ?
Overdraft......................185.......0.........0 ?
Catalogue......................659.......0.........0 ?
Catalogue......................392.......0.........0 ?
Catalogue......................218.......0.........0 ?
Catalogue......................200.......20........0 ?
Credit Cards...................200.......10........0 ?
Total unsecured debts..........3606......190.......-

Monthly Budget Summary
Total monthly income.................... 1,250
Expenses (including HP & secured debts). 708
Available for debt repayments........... 542
Monthly UNsecured debt repayments....... 190
Amount left after debt repayments....... 352
Personal Balance Sheet Summary
Total assets (things you own)........... 550
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,606
Net Assets.............................. -3,056[/QUOTE]

There is still a bit of work to do on your SOA, but don't worry
you ned to break down from the mortgage, the household bills
Bank statements, are a good place to get the info
and fill in the APR's on the debts that is very important

As it stands you have a surplus of £350 a month keep a spending diary of everything you spend
when you get the APRs we will be in a better situation to offer further suggestions, but you could use http://www.makesenseofcards.com/snowcalc.html

:A

talana

What I'm wondering is should I pay the big one first or pay off the smaller ones first...

The usual (and best) way to pay off debts is the most expensive first (ie biggest APR) followed by the next most expensive and so on.
If these debts are with DCAs, in the order of which are giving you the most hassle is I suppose equally valid.

Amount left after debt repayments....... 352

This is the key figure of course. If you have that then you can pay them off in next to no time. Spending diary is the way to go.