Debt Problems.....owning up!

Debs0778

Hi All

I think the time has come to realise that I have a problem!! Having read some other peoples, i realise it isnt too bad but basically want to take action now to stop it getting any worse!

I've been on the CCCS site and they are recommending a DMP - I'm really just after some more info on this and how it affects credit rating in the future etc.

At the moment I am making all my payments and have never missed any but I am basically living on my credit card from a few days after pay day so obviously cant keep it up.

Sorry if this is all a bit vague but I'd really like some help so will happily answer any questions.

Thanks guys!

HappyMJ

Your credit rating will no longer be good. If you can no longer juggle the debts and have taken advice then that's the way it is. You could post an SOA here if you want another opinion.

Savvy_Spender_South

DMP should be reserved for those that cannot make the payments and have loads of missed payments.
You are tight but it will recover if you cut spending and use the extra for upping debt payment.

If you put an SOA on here, good willing ex debt folk will help advise on cost cutting and debt repayment the old fashioned way.

Good luck

Debs0778

Will my credit rating really already be bad if I'm making payments on time - I have never missed one yet

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1546
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1546
Monthly Expense Details
Mortgage................................ 623
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 50
Council tax............................. 100
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 28
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...................... 6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1358

Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 113000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96000....(623)......0
Total secured & HP debts...... 96000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Santander Car Loan.............8200......229.......0
Virgin Credit Card.............2500......25........0
A&L Overdraft..................650.......0.........0
Total unsecured debts..........11350.....254.......-

Monthly Budget Summary
Total monthly income.................... 1,546
Expenses (including HP & secured debts). 1,358
Available for debt repayments........... 188
Monthly UNsecured debt repayments....... 254
Amount short for making debt repayments. -66
Personal Balance Sheet Summary
Total assets (things you own)........... 113,000
Total HP & Secured debt................. -96,000
Total Unsecured debt.................... -11,350
Net Assets.............................. 5,650
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Hannah_10

If you have never missed a payment yet then your credit rating right now is going to be very good indeed. If you enter into a DMP it's going to take a hit.

There is another way, called snowballing. It would involve increasing your incomings as far as possible, decreasing your outgoings as far as possible and then paying the cards off (without living on them for any period at all) as efficiently as possible. Snowballing will leave your credit rating every bit as good as it is now.

When we see your SOA we should be able to help you tell if there is a posibility you can make snowballing work, or if you really are going to need a DMP.

RoseRed

Even if you are meeting your payments if you are going back to spending on cards shortly after your payday then you are increasing your debt. It will get to the point that you have no access to credit.

Are you keeping a spending diary to make sure you stick to your budget and it is accurate? If you are using your cards so soon you must be overspending. If you can stick to the budget you have detailed then you only have £66 short a month. You can easily make this by cutting down further on groceries, presents and entertainment.

Look for other ways to increase your income, sell what you can on Ebay/Amazon etc and put the earnings straight onto your debt. If you have a spare room maybe get a lodger. Not ideal but you could hammer down all the debt in no time.

RoseRed

You also need to add in what is missing from your SOA, you are not including things like water and MOT. Go through your bills and accounts and account for every penny you are spending. Make sure what you have put on your SOA are accurate figures of your usage and not guesses.

An example is gas and electric, are they low because its summer and will they increase over winter? If so you need to have the money allocated for them now.

Debs0778

I know I am probably overspending and must admit I find it quite hard sticking to a budget as I've previously been used to having more freedom.

I guess my question is already answered then, I just need to really cut back!

January20

Are you getting a 25% discount off your council tax?

Your grocery bill seems a bit high for 1 persons. I'm sure you could shave £50-100 off it easily.

Haircuts and entertainment may have to go for a while - or be seriously cut down . That could save you another £70 per month.

Mimi_Arc_en_ciel

Debs0778 wrote: »

Will my credit rating really already be bad if I'm making payments on time - I have never missed one yet

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1546
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1546
Monthly Expense Details
Mortgage................................ 623
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 50
Council tax............................. 100 are you getting 25% discount?
Electricity............................. 20 try and lower but good overall
Gas..................................... 20 same as above
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 200 This can be lowered definitley. Meal plan, over cook and freeze for another day, see lovefoodhatewaste for ideas on leftovers
Clothing................................ 0
Petrol/diesel........................... 150 Do you NEED to use your car on short journey's?
Road tax................................ 20
Car Insurance........................... 28
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...................... 6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20 Good - but a training salon would be cheaper
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1358

Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 113000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96000....(623)......0
Total secured & HP debts...... 96000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Santander Car Loan.............8200......229.......0
Virgin Credit Card.............2500......25........0
A&L Overdraft..................650.......0.........0
Total unsecured debts..........11350.....254.......-

Monthly Budget Summary
Total monthly income.................... 1,546
Expenses (including HP & secured debts). 1,358
Available for debt repayments........... 188
Monthly UNsecured debt repayments....... 254
Amount short for making debt repayments. -66
Personal Balance Sheet Summary
Total assets (things you own)........... 113,000
Total HP & Secured debt................. -96,000
Total Unsecured debt.................... -11,350
Net Assets.............................. 5,650
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

My comments are in pink for you HTH x

Might help to keep a spends diary too

Debs0778

Thanks for comments

My council tax and gas/elec are as cheap as I can get them. I know my grocery bills are quite high but apart from being an awful cook :rotfl:my boyfriend eats at mine most nights so this accounts for grocery bills and also why I dont spend much on entertainment because he tends to pay for drinks etc when we go out which is fairly regular