Bit of advise please

IceNinja

Hi,

I've been an on off visitor of the forum for a while, but have finally decided that I need to take some serious action.

I am currently in approx 12,000 of credit card/loan debt, prior to xmas last year we had the mortgage reduced as we couldn't make the payments, i changed job and we managed to sort ourselves out, as my partner had the promise of a job at the end of her maternity so things didn't look to bad.

The job is no longer there and the head gasket has gone on my car with a 1k bill.

Things aren't lookin too bright, my initial thoughts were to get yet another loan to consolidate the debt to reduce the monthly payment and free a bit of cash up for living.

I applied for a loan which was unsuccesful (in hindsight probably a good thing) and have been refered to a company called Gregory Pennington who are going to work wonders and have me debt free in 4 years, Am-A-Zing...

Quick search of the site, and maybe not. The way the girl on the phone made it sound I was going to have the interest stopped and would be able to make direct payments off my debt but from what i've read this isn't necessarily correct.

I'm now thinking an IVA may be more suitable but didn't want to be tied in for that long, as with the plan if I had extra cash I could overpay bringing down the time left in debt.

Any advise would be much appreciated


M

MrsTinks

Would a DMP not work too?

To be honest it would be very helpful if we had your SOA so we could see what way forward would work best... it may be that room can be found for a DMP, or it may be that an IVA is the best way... hard to tell until we have numbers

IceNinja

DMP - I'm going to do a SOA and will post up when complete

Hannah_10

Anything a fee paying company can do with your debt, a totally free service like CCCS can do quicker and better. You should speak to them, click the link in MrsTines signature.

IceNinja

Hmmm...seems I did it wrong, I have a shortfall of £1500 a month...

I don't think i'm that skint

Hannah_10

That doesn't always mean you did it wrong. A lot of people are living on their cards, living over your means is scarily common. Cast another eye over it and aim for total accuracy, then post what you've got. If you're over your means then we might be able to help with that.

IceNinja

Currently i'm not, we have been thats how we got here. I need to dig out some bills to make it fully accurate, for things like insurance and car tax should I work out the total cost and divide by 12?

M

Hannah_10

Yes, divide the annual by 12 to get a monthly figure. These can skew a SOA too if you paid them in one lump. My SOA shows about £35 that isn't actually going out because it was insurances I did in one go, but everything has to be accounted for to be accurate.

IceNinja

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1570.66
Partners monthly income after tax....... 0
Benefits................................ 350
Other income............................ 0
Total monthly income.................... 1920.66

Monthly Expense Details
Mortgage................................ 400
Secured/HP loan repayments.............. 53.39999999999998
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 100
Gas..................................... 50
Oil..................................... 0
Water rates............................. 20.63
Telephone (land line)................... 12
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35
Internet Services....................... 5
Groceries etc. ......................... 250
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 16
Car Insurance........................... 60
Car maintenance (including MOT)......... 6
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 41.1
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 35.46
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1549.71


Assets
Cash.................................... 0
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 113000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 82955....(400)......4.78
Secured Debt.................. 7383.33..(53.4).....4.54
Total secured & HP debts...... 90338.33..-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Egg............................3553.63...98.19.....21.9
MBNA...........................2618.94...69.2......2.52
Baclaycard.....................1407.31...31.66.....22.5
Northern Rock..................9206.42...46.6......4.78
Car Loan.......................3833.91...138.......20
Total unsecured debts..........20620.21..383.65....-


Monthly Budget Summary
Total monthly income.................... 1,920.66
Expenses (including HP & secured debts). 1,549.71
Available for debt repayments........... 370.95
Monthly UNsecured debt repayments....... 383.65
Amount short for making debt repayments. -12.7

Personal Balance Sheet Summary
Total assets (things you own)........... 113,000
Total HP & Secured debt................. -90,338.33
Total Unsecured debt.................... -20,620.21
Net Assets.............................. 2,041.46


Reproduced on Moneysavingexpert with permission, using Firefox browser.

Sorry its took so long had to dig out some bills.

bargainbetty

IceNinja wrote: »

Statement of Affairs and Personal Balance Sheet
Total monthly income.................... 1920.66

Monthly Expense Details
Mortgage................................ 400
Secured/HP loan repayments.............. 53.39999999999998
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 100 Can you look into reducing this?
Gas..................................... 50
Oil..................................... 0
Water rates............................. 20.63
Telephone (land line)................... 12
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35 This could probably be reduced too!
Internet Services....................... 5
Groceries etc. ......................... 250 Drop a brand, do store cupboard inventories, etc, all of which could save you money here, at least till you clear a smaller debt or two.
Clothing................................ 40
Petrol/diesel........................... 200 Reduce car usage?
Road tax................................ 16
Car Insurance........................... 60 Can you shop around?
Car maintenance (including MOT)......... 6
Other child related expenses............ 20
Pet insurance/vet bills................. 41.1 Shop around for this too - it's a huge expense.
Buildings insurance..................... 25 Shop around
Life assurance ......................... 35.46 Shop around!
Presents (birthday, christmas etc)...... 25 Reduce to immediate family only?
Entertainment........................... 20

Unsecured Debts
Description....................Debt......Monthly...APR
Egg............................3553.63...98.19.....21.9
MBNA...........................2618.94...69.2......2.52
Baclaycard.....................1407.31...31.66.....22.5
Northern Rock..................9206.42...46.6......4.78
Car Loan.......................3833.91...138.......20
Total unsecured debts..........20620.21..383.65....-

Amount short for making debt repayments. -12.7 You can cover this making small savings. Throw every spare penny at the highest interest debts, but if you decide to do a DMP, make sure you ask for the interest to be frozen.

Good luck x

IceNinja

bargainbetty wrote: »

IceNinja wrote: »

Statement of Affairs and Personal Balance Sheet
Total monthly income.................... 1920.66

Monthly Expense Details
Mortgage................................ 400
Secured/HP loan repayments.............. 53.39999999999998
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 100 Can you look into reducing this? Tried, Unfortunately no, two children mean alot of washing and someone in the house all day. I do look at who is the cheapest every six months tho.
Gas..................................... 50
Oil..................................... 0
Water rates............................. 20.63
Telephone (land line)................... 12
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35 This could probably be reduced too! On lowest package but with insurance for the box.
Internet Services....................... 5
Groceries etc. ......................... 250 Drop a brand, do store cupboard inventories, etc, all of which could save you money here, at least till you clear a smaller debt or two. We shop at ALDI!
Clothing................................ 40
Petrol/diesel........................... 200 Reduce car usage?
Road tax................................ 16
Car Insurance........................... 60 Can you shop around? This was the cheapest for us both other quoted £900
Car maintenance (including MOT)......... 6
Other child related expenses............ 20
Pet insurance/vet bills................. 41.1 Shop around for this too - it's a huge expense. These are lifelong policies, may be able to reduce by £15 tho.
Buildings insurance..................... 25 Shop around
Life assurance ......................... 35.46 Shop around! Tied into this until Feb 2011 - Shocking price and its a decreasing term policy.
Presents (birthday, christmas etc)...... 25 Reduce to immediate family only? Already is.
Entertainment........................... 20

Unsecured Debts
Description....................Debt......Monthly...APR
Egg............................3553.63...98.19.....21.9
MBNA...........................2618.94...69.2......2.52
Baclaycard.....................1407.31...31.66.....22.5
Northern Rock..................9206.42...46.6......4.78
Car Loan.......................3833.91...138.......20
Total unsecured debts..........20620.21..383.65....-

Amount short for making debt repayments. -12.7 You can cover this making small savings. Throw every spare penny at the highest interest debts, but if you decide to do a DMP, make sure you ask for the interest to be frozen.

Good luck x

Do you think its likely that a DMP would be suitable? would my creditors even agree?

M