Definitely a DFW but so scared

sickasachip13

My partner and I really are in a mess. I am worried sick about it and have spent too much time crying and stressing over it all.

Quick run down - me made redundant 12 months ago (was on £31k pa). my partner works (on £16k p.a.). We have a 16-year-old son who we are trying not to worry. We had debts before I was laid off but they didn't feel like a problem as the payments didn't cause any issues. Since being laid off we've lived off the cards. We now have over £30k of unsecured debt, over £40k if we include my student loan.My partner's wage, if we didn't have an debt payments would just cover everything else.

We both feel like complete failures. I have let us down so badly despite spending all my adult life (we're both 40) either working or studying hard. It all seems such a waste of time now.

We have done our budgets etc, using the tools here. We are going to go down the CCCS route and see what they suggest. But we are scared. Really scared. And embarrassed.

I'm sure we're not the only ones to have felt like this, but it really is overwhelmingly sad in our house right now.

I also have a couple of questions that I'm hoping someone may help with....

We currently have two cars, this will appear on paper to be something of a luxury. However, we live in the middle of nowhere, my partner works shifts also in a very rural location and not where I would be able to get a job. In short, as soon as I get work then we will need both vehicles again. I did consider selling mine but it's only worth a few hundred pounds and I would have to buy another when I get a job. But, will the creditors, if we go down the DMP route, cause a problem over the two vehicles?

Also, we've sold off pretty much anything of value in our home, just to eat and also to clothe our son. However, we still have some stuff left in the loft to put on ebay. I plan to sell these items and keep the money in paypal to get a few christmas presents (from ebay). Would our creditors know / be able to access my paypal acc?

Thanks so much.

eyeopener2

Hi

You won't be listing your assests to your creditors just income and expenditure and if you need tow cars then you need two cars.

Why not post a statement of affairs and then the good people here can advise you on how to rebalance your budget before you speak to CCCS. Savings can be made, trust me.

And your creditrs will not acces your paypal account, you could treat that as your emergency fund.

First thing poast your SOA and then ring CCCS.

Your doing the right thing.

sickasachip13

Right, I've done the SOA. Having trouble getting it to format it ready to cut and paste to here, hopefully it will work soon.

I feel literally sick looking at it all but since our LBM two days ago both my partner and I know this has to happen.

pure_dead_dopey

och you're not alone, don't worry, life happens and we just have to get through it. You've made a good start talking to CCCS, it will get sorted, there is always an answer, you just need to find it sometimes.

good luck and chin up, its only money and they can't have what you haven't got!!!!

sickasachip13

Ok, here's the SOA. Observations / advice gratefully received!!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1 (aged 16 and eats like a horse)!
Number of cars owned.................... 2 (sadly necessary)

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1100
Benefits................................ 572 (WTC and CTC plus a little HB)
Other income............................ 0
Total monthly income.................... 1672

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 372.34
Management charge (leasehold property).. 0
Council tax............................. 36 (currently reduced due to circs)
Electricity............................. 70
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15.76
Telephone (land line)................... 34 (this is phone and ISP together)
Mobile phone............................ 56 (all 3 phones)
TV Licence.............................. 12.37
Satellite/Cable TV...................... 19
Internet Services....................... 0
Groceries etc. ......................... 320
Clothing................................ 0
Petrol/diesel........................... 180 (commuting)
Road tax................................ 33.33
Car Insurance........................... 82.29
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 45 (son's bus fares to school)
Childcare/nursery....................... 0
Other child related expenses............ 86.6
Medical (prescriptions, dentist etc).... 32.93 (Denplan)
Pet insurance/vet bills................. 17
Buildings insurance..................... 0
Contents insurance...................... 9.98
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1447.6


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
HBOS Credit card...............2020......40.38.....29.9
Virgin MBNA card (1)...........7684......171.9.....30
Tesco card.....................3000......55........16.8
Student Loan...................10000.....0.........0 (not currently paying as I am out of work)
Argos..........................395.......18........27.9
Barclays Finance...............494.15....24.71.....29.8
Ikea...........................259.83....3.11......19.9
Next...........................454.......70........0
Halifax OD.....................5000......0.........0 (not paying - it's in my main acc)
First Direct OD................920.......0.........0 (as above but for my partner)
Halifax Loan...................750.......119.3.....0
BOS OD.........................998.28....53.3......0
Mint (2).......................1491.57...33........27
Barclaycard Gold...............477.......10.73.....25
Capital One (2)................254.45....12.72.....34.8
Virgin MBNA (2)................1842.98...54.11.....30
Barclaycard (2)................2300......50........24
Capital One (1)................1308.73...39.26.....34.8
Barclaycard (1)................2958.08...66.55.....24
Mint (1).......................967.......21........27



TOTAL DEBT = £43,575


Some of the APR isn't in yet. And some of the debts do not have a monthly payment as they are not being repaid.

We currently have no defaults / late payments etc etc. We've just been accepted for a new current acc with someone who don't owe money to and plan to seperate everything except our unsecured debts across to that before the brown stuff hits the fan!

podperson

Monthly Income Details
Monthly income after tax................ 0 - can you get a part-time job to bring some extra income in? If child is 16 shouldn't need to be home much for him?
Partners monthly income after tax....... 1100
Benefits................................ 572 (WTC and CTC plus a little HB)
Other income............................ 0
Total monthly income.................... 1672

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 372.34
Management charge (leasehold property).. 0
Council tax............................. 36 (currently reduced due to circs)
Electricity............................. 70
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15.76
Telephone (land line)................... 34 (this is phone and ISP together)
Mobile phone............................ 56 (all 3 phones) needs to come down a lot and at 16 would expect child to be contributing to their own
TV Licence.............................. 12.37
Satellite/Cable TV...................... 19 - look at package deal for this with phone and internet, basic one is around £30 a month for all 3
Internet Services....................... 0
Groceries etc. ......................... 320 - could be reduced, have a look on the old style boards for lots of ideas on saving money on this
Clothing................................ 0
Petrol/diesel........................... 180 (commuting)
Road tax................................ 33.33
Car Insurance........................... 82.29
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 45 (son's bus fares to school)
Childcare/nursery....................... 0
Other child related expenses............ 86.6 - what's this?
Medical (prescriptions, dentist etc).... 32.93 (Denplan)
Pet insurance/vet bills................. 17
Buildings insurance..................... 0
Contents insurance...................... 9.98
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 0 - nothing here?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1447.6


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
HBOS Credit card...............2020......40.38.....29.9
Virgin MBNA card (1)...........7684......171.9.....30
Tesco card.....................3000......55........16.8
Student Loan...................10000.....0.........0 (not currently paying as I am out of work)
Argos..........................395.......18....... .27.9
Barclays Finance...............494.15....24.71.....29.8
Ikea...........................259.83....3.11..... .19.9
Next...........................454.......70....... .0
Halifax OD.....................5000......0.........0 (not paying - it's in my main acc)
First Direct OD................920.......0.........0 (as above but for my partner)
Halifax Loan...................750.......119.3.....0
BOS OD.........................998.28....53.3......0
Mint (2).......................1491.57...33........27
Barclaycard Gold...............477.......10.73.....25
Capital One (2)................254.45....12.72.....34.8
Virgin MBNA (2)................1842.98...54.11.....30
Barclaycard (2)................2300......50........24
Capital One (1)................1308.73...39.26.....34.8
Barclaycard (1)................2958.08...66.55.....24
Mint (1).......................967.......21........27

Eep that's a long list! Need to add up the total paid out each month, though looks like you are currently on a shortfall for them.

TOTAL DEBT = £43,575

MFWannabe

sickasachip13 wrote: »

Ok, here's the SOA. Observations / advice gratefully received!!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1 (aged 16 and eats like a horse)!
Number of cars owned.................... 2 (sadly necessary)

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1100
Benefits................................ 572 (WTC and CTC plus a little HB)
Other income............................ 0
Total monthly income.................... 1672

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 372.34
Management charge (leasehold property).. 0
Council tax............................. 36 (currently reduced due to circs)
Electricity............................. 70
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15.76
Telephone (land line)................... 34 (this is phone and ISP together) - check comparison sites to see if you can get cheaper; also check Sky as you should be able to get cheaper with them
Mobile phone............................ 56 (all 3 phones) - You all need to go to lowest tariff or payg
TV Licence.............................. 12.37
Satellite/Cable TV...................... 19
Internet Services....................... 0
Groceries etc. ......................... 320 - Should be able to reduce this
Clothing................................ 0
Petrol/diesel........................... 180 (commuting)
Road tax................................ 33.33
Car Insurance........................... 82.29
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 45 (son's bus fares to school)
Childcare/nursery....................... 0
Other child related expenses............ 86.6
Medical (prescriptions, dentist etc).... 32.93 (Denplan)
Pet insurance/vet bills................. 17
Buildings insurance..................... 0
Contents insurance...................... 9.98
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1447.6


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
HBOS Credit card...............2020......40.38.....29.9
Virgin MBNA card (1)...........7684......171.9.....30
Tesco card.....................3000......55........16.8
Student Loan...................10000.....0.........0 (not currently paying as I am out of work)
Argos..........................395.......18........27.9
Barclays Finance...............494.15....24.71.....29.8
Ikea...........................259.83....3.11......19.9
Next...........................454.......70........0
Halifax OD.....................5000......0.........0 (not paying - it's in my main acc)
First Direct OD................920.......0.........0 (as above but for my partner)
Halifax Loan...................750.......119.3.....0
BOS OD.........................998.28....53.3......0
Mint (2).......................1491.57...33........27
Barclaycard Gold...............477.......10.73.....25
Capital One (2)................254.45....12.72.....34.8
Virgin MBNA (2)................1842.98...54.11.....30
Barclaycard (2)................2300......50........24
Capital One (1)................1308.73...39.26.....34.8
Barclaycard (1)................2958.08...66.55.....24
Mint (1).......................967.......21........27



TOTAL DEBT = £43,575


Some of the APR isn't in yet. And some of the debts do not have a monthly payment as they are not being repaid.

We currently have no defaults / late payments etc etc. We've just been accepted for a new current acc with someone who don't owe money to and plan to seperate everything except our unsecured debts across to that before the brown stuff hits the fan!

Hi
I've added some comments above. I can't see how you are even managing to make the payments on these debts as it seems to show a big shortfall between expenses and income.
You say both cars are necessary but are they really? You have bus fare listed for your son; so how can you definitely need 2 cars?
Are you able to get any kind of job? You need to consider anything and everything. Also would your son be able to get a part time job at weekends?
I think you need to speak to a free service like cccs so that you can make arrangements with all your creditors. You can get interest stopped and make token payments. I don't really know much about this; but i'm sure someone who knows will be along shortly

katsu

sickasachip13 wrote: »

Ok, here's the SOA. Observations / advice gratefully received!!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1 (aged 16 and eats like a horse)!
Number of cars owned.................... 2 (sadly necessary) can you SORN yours for now and find somewhere off-road to store it then saving on road tax and car insurance for it?

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1100
Benefits................................ 572 (WTC and CTC plus a little HB) are you not eligible for jobseekers allowance? Have you checked the entitledto website to ensure you are getting all the benefits you are eligible for?
Other income............................ 0
Total monthly income.................... 1672

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 372.34
Management charge (leasehold property).. 0
Council tax............................. 36 (currently reduced due to circs)
Electricity............................. 70 check this is the cheapest tariff. Are you on estimated bills? Does this include gas/what is your heating?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15.76
Telephone (land line)................... 34 (this is phone and ISP together) you can reduce this - look at the articles on the main site tabs above
Mobile phone............................ 56 (all 3 phones) Reduce this. Look at something like the tesco £10/month sim only deals or consider PAYG where you buy one top up a month only.
TV Licence.............................. 12.37
Satellite/Cable TV...................... 19 time to cut this out. Get a freeview box or get freesat, or just have the 5? standard channels
Internet Services....................... 0
Groceries etc. ......................... 320
Clothing................................ 0
Petrol/diesel........................... 180 (commuting) never any non-essential journeys? Are you using petrolprices website for cheapest place to fill up, driving with empty boot and light right foot etc.
Road tax................................ 33.33
Car Insurance........................... 82.29 probably about right for two cars - check comparison sites at renewal time and consider if you can do without one whilst you job hunt.
Car maintenance (including MOT)......... 10 seems unrealistic TBH
Car parking............................. 0
Other travel............................ 45 (son's bus fares to school)
Childcare/nursery....................... 0
Other child related expenses............ 86.6 what is this? Can he get a part time job to pay for it?
Medical (prescriptions, dentist etc).... 32.93 (Denplan) do you really need this - you probably need to cut it out and go NHS for now.
Pet insurance/vet bills................. 17
Buildings insurance..................... 0
Contents insurance...................... 9.98 use comparison and cashback sites at renewal time, also check you really need this much cover - check you aren't over or under insuring.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Consider surveys etc to earn vouchers for this, as I imagine you do buy them.
Haircuts................................ 15 clippers for the men, done by your wife. Hairdressing college students for your wife.
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1447.6


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
HBOS Credit card...............2020......40.38.....29.9
Virgin MBNA card (1)...........7684......171.9.....30
Tesco card.....................3000......55........16.8
Student Loan...................10000.....0.........0 (not currently paying as I am out of work)
Argos..........................395.......18........27.9
Barclays Finance...............494.15....24.71.....29.8
Ikea...........................259.83....3.11......19.9
Next...........................454.......70........0
Halifax OD.....................5000......0.........0 (not paying - it's in my main acc)
First Direct OD................920.......0.........0 (as above but for my partner)
Halifax Loan...................750.......119.3.....0
BOS OD.........................998.28....53.3......0
Mint (2).......................1491.57...33........27
Barclaycard Gold...............477.......10.73.....25
Capital One (2)................254.45....12.72.....34.8
Virgin MBNA (2)................1842.98...54.11.....30
Barclaycard (2)................2300......50........24
Capital One (1)................1308.73...39.26.....34.8
Barclaycard (1)................2958.08...66.55.....24
Mint (1).......................967.......21........27



TOTAL DEBT = £43,575


Some of the APR isn't in yet. And some of the debts do not have a monthly payment as they are not being repaid.

We currently have no defaults / late payments etc etc. We've just been accepted for a new current acc with someone who don't owe money to and plan to seperate everything except our unsecured debts across to that before the brown stuff hits the fan!

Have you checked that your new bank is not linked to your creditors (for example are they the bank who fund mint cards?) you might find the info on the main site tabs or by searching the forums for a bank list.

Looks like you might need to get advice from a debt charity like CCCS or CAB.

isy1011

Well done for posting.

I can understand the feelings you have. Been there it's awful.

Student loan - well you dont pay that if you earn over a certain amount anyway so try to just put that to one side.

Other debts - can you consolidate as your debt is spread all over the place? That might then reduce amount you need to pay on minimum payments so that you can concentrate on getting rid of one at a time.

The bottom part of SOA is missing so cant tell how much deficit you have to pay debts.

Loubylou2

Facing up to it is the best and hardest part and you've done it now. All your emotions are normal in the circumstances. OH and I feel the same and can't believe we are in this situation in our 40's.

But its important to keep moving forward now. If your outgoings are more than income then as others say you must speak to either CCCs or Payplan. You won't regret it and keep in mind that they are receiving so many of these calls every day.
Once you get the ball rolling you will feel better. It is a roller coaster but it means that you will start to be in control again. It is daunting but all the advice you get on the forums will really help.
We are new on this journey and its not plain sailing but I just wish we'd done it sooner.

Start to look at your outgoings as others have advised. Within just a few months I have saved loads on car insurance & mobile phones. For instance I am now on a £6 a month tariff with Tesco. There are new offers all the time.
You may not realise yet how much you can cut down and I think thats because when debt is building up ( as ours did over a number of years followed by OH having a huge pay decrease in order to keep his job) a few pounds on top seems like nothing in the scheme of things but now we are on a dmp a few pounds makes such a difference and I wouldn't dream of wasting money like we did. Its a great feeling believe me.

Look on the two main DMP forums, I wouldn't have got through without the support and advice I have had from them.
Oh and I've 3 teenagers and we've explained the situation to them and they pitch in and are aware not to ask for things etc. I hope they are learning from us as well and I really don't think they are suffering. I have to say the prospect of at least 2 of them going to Uni fills me with fear but we'll cross that bridge when we come to it!!

Good luck:)

Broke_and_sinking_quickly

hi. I am in a similar situation. You have done exactly the right thing.

a few tips.
get rid of the sky. it really is a luxury. ask a relative to get you Freesat for Xmas. after all, you can't watch that much telly if you are actively looking for a new job.
get rid of the mobiles. I have a PAYG, and have found i spend about £10 every couple of months.You'd be suprised how easy it is to survive without MAKING many calls.
Can your son Bike it to School?? that would save the bus fare, and help him with his fitness.
Get a set of clippers. I bought a set 8 years ago for £12.00 (now costs about £15.00) and have never been to a barbers since. Saved a small fortune.
Can you survive without a second car at the moment?? if so, SORN it. this will save tax, insurance etc.... and maybe look at getting a scooter for your partner - £180 per month is a LOT for commuting. This could be achieved by possibly selling one of the cars - no necessary outlay.

and the CCCS are fantabulous!!! helped us more than i thought possible. can't recommend them enough.

Good luck, and be ruthless. I hate to say it, but your Son needs to start helping, if not by contributing, certainly by reducing what he is costing you. Time he pays for his own phone etc. Part time job beckons for him, i think....

Dave