Not sure what to do?

Bobby81

Hello everyone im new on here, well where do i start, i have about 34000 pound of debt and have managed to pay and not miss any payments, however i cant stop thinking about it and worry about it all time, DH is doing extra work at weekend to cover bills and be able to afford things etc, A year ago i was off work having a baby and i didnt need to go back to work but now a year later i have to (not that i dont want to) but its just the fact that what if i couldnt work for some reason we would be well and truly stuck, it shouldnt have come to this. I think if i was able to consolidate these things and just have one payment i would be so much easierand less worry BUT due to my dh's job and not being on the electoral roll we always have a poor credit rating EVEN though we have never missed anything or had any trouble so someone suggested doing an IVA, can someone tell me anything about it and if they think its a good idea??? Im pretty stuck at the moment, Thanks in advance x

CLAPTON

whether or not a IVA is possible or appropriate depends upon your overall financial position...why not post a Statement of Affair..details of inocme, spending, debts and some background...rent/mortgage children etc

for more details

http://forums.moneysavingexpert.com/showthread.html?t=107280


ps why dont you go on the electoral roll?

Bobby81

Well due to us moving around so much, we have moved 6 times in the last 4 years, we have just put our names down on the register and they said we wont be on now till dec. jan.

Bobby81

Ok here goes
Per month
Husband Income: after tax £1300
Mine: £470
Child Benefit: £116
Tax Credits: £770


Outgoings

Childcare: 878
Rent:180
Elec: 21
Gas:33
Phone:40
Mobiles:53
Car Insurance:48
Insurances:40
Child trust Fund: 20
1st Loan owe £17600 pay £407
2nd Loan owe £8000 pay £185
Car Loan £8200 pay £180
Overdraft:£2000
Credit Card: £6000 Limit owe £400
We also have 3 other credits cards but dont owe on them one of them the limit is 10000 BUT we cant have a consolidation Loan....STRANGE (sorry i copied and pasted this from the other forum, incase you already seen it)

CLAPTON

To be able to give advice you need to post a full list of your spending so its possible to see how much money is left over after spending but before debts. It also help to see the APR on all the debts (including overdraft).

so some things that may have been left out

food, petrol, car tax, MOT, RAC/AA, servicing, clothes, council tax, water, school related costs, child activities, presents, xmas, holidays. where things that are irregular or annual or one offs try to work oput how much you spend over 12 period and divide by 12 to get a monthly total.

as i say add the APRs to the debts

you say you spend 878 on child care but only earn 470..can you explain that.

bonnie_2

Your paying over half your income in child care.
what about council tax, water, food, clothes , petrol, car tax.
would you not be better of as a stay at home mum to save all that money.
also the child trust fund at £20, you can't really afford this.
Your outgoings are more than incomings without essentials like council tax, petrol and food and water.

all_hours

Some of the £770 tax credit will be for childcare - they wouldn't get this amount if they weren't paying for childcare.

At first it might look as though working is costing them more - but in reality they will be better off.

Bobby81

I work and get £470, i get £770 towards childcare and pay £878, so i stille arn about 300 something pound so yes im better off working, definatly!!! I have just got in touch with payplan and they have told me i cant do the IVA anyway cause all my loans are with one creditor as in my bank so i suppose im just stuck now, they said i can write to them and ask to reduce my payment, has anyone done this?

all_hours

Bobby81 wrote:

I work and get £470, i get £770 towards childcare and pay £878, so i stille arn about 300 something pound so yes im better off working, definatly!!! I have just got in touch with payplan and they have told me i cant do the IVA anyway cause all my loans are with one creditor as in my bank so i suppose im just stuck now, they said i can write to them and ask to reduce my payment, has anyone done this?

Total income 2656
Partial outgoings including the loan repayments 2095
Balance to cover the things that are missing 561

If you work out your full SOA you might not need to consolidate or ask for a reduced payment.

See Clapton's post and add amounts for the missing outgoings.

We also have 3 other credits cards but dont owe on them one of them the limit is 10000 BUT we cant have a consolidation Loan

This could be because you appear to have too much available credit. £10k on one card and nearly £6k on another. The lenders see you can take out a consolidation loan then run up another £16k on these cards and get totally out of your depth.

Post the APRs on the loans, credit cards and overdrafts and say which credit cards. Include balances and credit limits for cards and overdrafts. For the loans state the length the loan and how many payments are left - and if you have any payment protection on them.

If you can't use the cards to help manage your existing debt - you should cancel the empty ones and get the credit limit on the other reduced -this will improve your credit rating.

Bobby81

---

Ok here goes
Per month
Husband Income: after tax £1300
Mine: £470
Child Benefit: £116
Tax Credits: £770


Outgoings

Childcare: 878
Rent:180
Elec: 21
Gas:33
Phone:40
Mobiles:53
Car Insurance:48
Insurances:40
Child trust Fund: 20
Food:320
Car Tax: 11 pound
Petrol:80
TV Licence:10.50
Sky:46

1st LLoyds TSb Loan owe £17600 pay £407 (APR 7.1%)
2nd Lloyds TSB Loan owe £8000 pay £185 (APR11.8%)
Car Loan £8200 pay £180
Overdraft:£2000
Credit Card: £6000 Limit owe £400

Credit Card: £10000 Limit owe nothing

Bobby81

Sorry Car Loan is 16%APR (Im not very good at this)