Advice needed please

moneysaver09

Me and my partner have an ongoing amount of debt which seems to be increasing alll the time as when money ran out each payday we would just use credit cards etc. Now we have no credit available so cannot do this but seems as though we are going to struggle to pay bills, so any advice would be gratefully appreciated. We are in the process of moving which should reduce some of bills so will post based on new info. thanks in advance...

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 960
Partners monthly income after tax....... 676
Benefits................................ 469
Other income............................ 0
Total monthly income.................... 2105
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 173
Rent.................................... 435
Management charge (leasehold property).. 0
Council tax............................. 102
Electricity............................. 42
Gas..................................... 42
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 11
Mobile phone............................ 80
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 17
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 72
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 290
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1718

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8000.....(173)......0
Total secured & HP debts...... 8000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................14726.....418.......21.9
loan...........................5673......201.......0
overdraft......................3000......35........0
catalogue......................1600......250.......0
cc 5 ..........................945.......15........0
cc4............................1200......35........0
cc 3 ..........................23........23........0
cc 2...........................1100......20........0
cc 1...........................1350......28........0
Total unsecured debts..........29617.....1025......-

Monthly Budget Summary
Total monthly income.................... 2,105
Expenses (including HP & secured debts). 1,701
Available for debt repayments........... 404
Monthly UNsecured debt repayments....... 1,025
Amount short for making debt repayments. -6318

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -8,000
Total Unsecured debt.................... -29,617
Net Assets.............................. -31,617

Googlewhacker

it looks quite lean to be honest, I would check you are getting all your benefits you are entitled to (www.entitledto.co.uk) but if you are then you either need to increase your earnings between the two of you or look at maybe going onto a debt management programme (Payplan or CCCS are free, do not use one you have to pay for)

moneysaver09

would this mean we would receive debt letters and further action though or would going to cccs stop that?

How do we stand in terms of car we have on hp, can we keep this?

Googlewhacker

moneysaver09 wrote: »

would this mean we would receive debt letters and further action though or would going to cccs stop that?

How do we stand in terms of car we have on hp, can we keep this?

Hmm that is a point, Hopefully someone will come on and let you know on here but if not phone one of those charities up and ask them, they should know.

Kaz2904

moneysaver09 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 960
Partners monthly income after tax....... 676
Benefits................................ 469
Other income............................ 0
Total monthly income.................... 2105
Monthly Expense Details
Secured/HP loan repayments.............. 173
Rent.................................... 435
Council tax............................. 102
Electricity............................. 42
Gas..................................... 42
Water rates............................. 36
Telephone (land line)................... 11
Mobile phone............................ 80
TV Licence.............................. 13
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 72
Childcare/nursery....................... 290
Contents insurance...................... 15
Presents (birthday, christmas etc)...... 30
Entertainment........................... 50
Total monthly expenses.................. 1701

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000

Secured & HP Debts
Description....................Debt......Monthly...APR
Hire Purchase (HP) debt ...... 8000.....(173)......0
Total secured & HP debts...... 8000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................14726.....418.......21.9
loan...........................5673......201.......0
overdraft......................3000......35........0
catalogue......................1600......250.......0
cc 5 ..........................945.......15........0
cc4............................1200......35........0
cc 3 ..........................23........23........0
cc 2...........................1100......20........0
cc 1...........................1350......28........0
Total unsecured debts..........29617.....1025......-

Monthly Budget Summary
Total monthly income.................... 2,105
Expenses (including HP & secured debts). 1,701
Available for debt repayments........... 404
Monthly UNsecured debt repayments....... 1,025
Amount short for making debt repayments. -621

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -8,000
Total Unsecured debt.................... -29,617
Net Assets.............................. -31,617

Hi there :wave:. Didn't want to read and run so will just point out the things that have popped out to me. There will be some more experienced posters along to help, I'm sure.
You say you have a secured loan. What is it secured on? What is the interest rate and term?
Do you pay your council tax and water rates over 10 or 12 months?
Mobile phone, wow that's high :eek:. Can you not get a different contract? I use 02 simplicity which is £10 per month. Lots of minutes with this too.
You've nothing down for internet. How do you access it?
Groceries, do you really only spend £200 or is that what you'd like to spend?
Your car insurance seems really high. Can you get it any cheaper by shopping around? You also have nothing down for maintenance. Even your MOT needs to be paid for.
Are you using vouchers for your childcare? Do you get any benefits to help you towards this?
You've no money for hair cuts, do you have long hair and cut your partners yourself (or vice versa- sorry if I'm wrong!).
You have a £50 ents budget, this is really high when you can't meet your minimum payments. I personally would say it has to go for now.
You have a £6k car. Can you not get something worth less and free up some cash that way? Is the HP debt on this and how long does this debt have left to run?

Looking at it, there is £628 monthly defecit. Have you missed any payments? I think that you may need to start paying the debtors a token payment each month until you are actually able to come to some sort of agreement with them in order to repay your debts. I would highly recommend that you contact one of the debt help charities. You do not need to pay for their services so don't go for something which looks like an easy option.

Good luck, you have taken the first step towards solving this.

moneysaver09

The secured loan is the hire purchase on the car i've just put it in the wrong bit I think.

Totally forgot the internet, will amend now

council tax over 10 because our council dont extend and water is over 12

£200 which is what i try to keep to but do struggle sometimes with this

Never missed any debt payments, I never have because im scared of receiving the reminder letters or worse

Can not get car ins lower as under 25 have tried, and mobile phones are tied into a contract so cannot change at the min

Childcare, we get tex credits towards it thats why benefits are so high

The car has another 3 years to run on it, if we traded it in might just cover the hp so wouldnt be able to afford any oither car

Thanks for your help

NorthernLas

MM09 - I don't want this to seem hard but you have to not be scared and do something about your situation.

You need to be thinking what can I do now. You have made the first step by doing an SOA.
Is it accurate - can you keep a spending diary to find out?
Is your OH on board?
Are all of the debts joint or in your name? (it may make a difference as to what options you have - i.e. one of you entering a DMP)

Here is a link to National Debtline info on debt management plans http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=29_debt_management_plan. Have a read and also do CCCS debt remedy on-line and see what it suggests. Alternatively, CAB or CAP will do face to face stuff.

Your priority debts are the most important. If you can't pay the other then the reality is you can't. Better that you are doing something about it than not.

moneysaver09

No OH not on the boards. debts are about half and half. 2 of credit cards and one of loans are in my name the rest are in my partners

nandj_2

moneysaver09 wrote: »

Never missed any debt payments, I never have because im scared of receiving the reminder letters or worse

Never be scared of receiving a threatogram, all computer generated hot air and designed to look intimidating, that's all they are, full of "if's and may's".
I look forward to receiving them ( a couple of my statute barred debts is doing the rounds at the moment).
Just remember that there is no debtors prison, they cannot flog you or send you or your children to Australia!!!!
Your cedit record is shot for at least 6 years, have you not sent a CCA request to these Debt Companies to see if the Credit Cards, loan and catologue debts are enforceable and they have the legal right to collect?
If they are not, you have the legal right to with-hold payment until they comply.
Best wishes
NandJ

NorthernLas

Hi MM09 - Re: OH, I meant does he know your (joint) financial situation and is he supportive, not is he a user on the forum.

From your reply that you have debts half and half I guess he knows the situation.

pkezza

I am new to all this, and have just started a dmp with DFH, anyone heard of them ? what is their success. I have 28,000 of unsecured cards ect with 5 criditors, m&s, mbna, barclaycard, asda storecard and egg loan and card. Does anyone know the chances of these particular creditors coming on board ? Also my OH knows nothing of the debts, and I would like to keep it that way. I would therefore like to know the likelyhood of bailiffs, and how often letters and phonecalls come in the first few months, as I have just cancelled all direct debits and first payment to debt management co. due tomorrow.