What should I do ?

asherzd1tchy

Hi All

Firstly before I hang my head in shame
Im married,have a little boy who's 3 and work 30 hours a week.

I entered a DMP with a company a year and a half ago and I have foolishly gone further down the shame spiral and made my situation worse by amassing more debt

I currently pay £140 a month to my DMP company and this will be clear in 4 years my debts were with Natwest,Vanquis and Speedloan.

I then joined my husbands bank Lloyds Tsb and was soon offered a credit card which he knew about. When money was tight I then applied for my own bank account and overdraft and did not tell him. What started as a quick fix turned into a nightmare
After almost 2 years of wreckless spending I now have the following debt to add now

Lloyds C/C £2550 Limit (Balance £2450)
Lloyds Overd £2500 Limit (Balance £2486)
Next £100
Provident £266

All our incom goes into the joint account and I then just pay into my account to cover the interest I know I need to tell my hubby what I have done & face the consequences.

Its only a matter of time also until Lloyds with ask for me to pay the overdraft back.

I accept that my credit score is now shot to s**t and won't stand a chance of getting another loan to pay this off.

My hubby has a loan and C/C with Lloyds and only has 4 years left to pay all of his debts off.

Now should I see if I can cancel my current DMP and take it upon myself to create my own DMP to pay off ALL of my debt or keep my current one continue with the payments and enter my own for my new debts

I feel at a loss now and it makes me sick I deserve everything that is comming to me

I just wanted to get this off my chest and start turning my life around if I can

asherzd1tchy

A little about my incommings and outgoings

Wages £817 monthly
Tax Cred & Child Benefit £160

Outgoings
Rent £285
DMP £140
Council Tax £92
Mobile £30 (18 month contract 12 months to go)
Gas and Elec £60 (Rough idea as we use the prepay)
Travel pass to work £58

Hubbly pays the rest of the bills we have like childcare, TV Licence + Phone on top of his own debts

What money we have spare goes on food and we usually spend £300 per month

KingElvis

Don't hang you head in shame, at least you have faced the fact that you need to deal with it.

Good luck and stiff upper lip, there's nothing that cannot be dealt with and sorted out with a bit of the old Dunkirk spirt.

Elvis

asherzd1tchy

KingElvis wrote: »

Don't hang you head in shame, at least you have faced the fact that you need to deal with it.

Good luck and stiff upper lip, there's nothing that cannot be dealt with and sorted out with a bit of the old Dunkirk spirt.

Elvis

Thanks Elvis

NorthernLas

Didn't want to read and run. Ideally it would be helpful if you could do a statement of affairs http://www.makesenseofcards.com/soacalc.html. Take a bit of time and add comments if OH pays for some of the bills. It will show whether your income covers your outgoings and how much your debt is added up. If you can put a figure on how much you still owe on the DMP that would be good.

If you are with a fee charging DMP, then I would suggest that you move to an organisation who does not charge (see sticky called 'Who to get impartial advice from'). Both CCCS and national debtline have very good websites and CCCS has an on line debt remedy that you can put your figures into and it will suggest what you do.

Another thing that people find helpful is a spending diary - it shows how much you really spend and is good to catch things you have forgotten about

podperson

Hi there,

First of all is your current dmp with one of the free companies such as cccs or payplan or are you having to pay a fee for it? If the latter change it to one of the free ones and add in all the extra debts. They need to be gotten under control and if you have two different dmps is going to get complicated (not to mention that creditors on one probably won't be aware of creditors on the other so will make them less likely to agree to it).
Do you have extra that you can put towards this as your soa shows over £300 left and assuming you and hubby put in maybe £150 each for food (which could easily come down with some planning, shopping around etc.) then even leaving a bit for entertainment, personal items etc should still leave you a bit extra for the debts.
Think you might need to be really strict - ie cut up all the cards, cancel the o/d etc. to remove all temptation.
Can you look at ways of making some extra money? - mystery shopping, survey sites, ebay, car boots etc. these could at least help you clear the next and provident ones which usually have horrendous interest.

asherzd1tchy

heres a copy of my SOA

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 817
Partners monthly income after tax....... 0
Benefits................................ 160
Other income............................ 0
Total monthly income.................... 977
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 285
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 58
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................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 675

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds credit card.............2550......75........0
lloyds tsb overdraft...........2500......45........0
next...........................100.......10........0
Total unsecured debts..........5150......130.......-

Monthly Budget Summary
Total monthly income.................... 977
Expenses (including HP & secured debts). 675
Available for debt repayments........... 302
Monthly UNsecured debt repayments....... 130
Amount left after debt repayments....... 172
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,150
Net Assets.............................. -5,150
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.[/font]

asherzd1tchy

podperson wrote: »

Hi there,

First of all is your current dmp with one of the free companies such as cccs or payplan or are you having to pay a fee for it? If the latter change it to one of the free ones and add in all the extra debts. They need to be gotten under control and if you have two different dmps is going to get complicated (not to mention that creditors on one probably won't be aware of creditors on the other so will make them less likely to agree to it).
Do you have extra that you can put towards this as your soa shows over £300 left and assuming you and hubby put in maybe £150 each for food (which could easily come down with some planning, shopping around etc.) then even leaving a bit for entertainment, personal items etc should still leave you a bit extra for the debts.
Think you might need to be really strict - ie cut up all the cards, cancel the o/d etc. to remove all temptation.
Can you look at ways of making some extra money? - mystery shopping, survey sites, ebay, car boots etc. these could at least help you clear the next and provident ones which usually have horrendous interest.

Im currently going through Gregory Pennington with my other DMP.
I have been comping and started surverys.:cool:

wannabedebtfree_2

My suggestion would be to go to CCCS or Payplan for a DMP, Gregory Pennington are taking 15% of your monthly payment to line their own pockets, CCCS and Payplan are both free!

Also GP are less likely to get interest stopped as the longer you are on your DMP the more money they make.......I bet if you get a balance of your debts there will have been little change in the balance since you took your DMP on with them, certainly not when you compare it to how much you have paid.

Good Luck with your debt-free journey!

asherzd1tchy

Thankyou. You're right its not even making a dent.

asherzd1tchy

Just a little update.

I think Im going to start a diary to keep on track

I decided to sit down with Hubby and tell him about the overdraft he was ok just disappointed I didnt tell him sooner but I said its my mess and I want to fix it so Ive now removed myself from the Joint Account and set up all of my direct debits and salary into my own account.

Yes I realise there is a Huge overdraft to pay off but I feel optimistic I can do it

Hubby is giving me a share of the costs with food so this will be a big help

I budegted my incomming and outgoings and if I don't go overboard with the food shopping I should have around £80 extra a month to start paying it off and keep reducing it every month.

Not sure if this is the best way of going about it but its worth a shot.