I'm New...

zackfair1983

Hi all,

I’m Andy and I’m new here, although I’ve been reading through on and off for some time.

Let me first explain my situation.

I bought a house back in 2007 with my then partner. Prior to this, I cleared all credit card debts, although I did have to use my cards in order to pay some solicitors fees.

At the time of moving in I applied for two more cards, Virgin and Mint.

Things got out of hand from then. We started seriously living beyond our means, something that to an extent continues today. When things got (how we thought) dire, we turned to Welcome Finance (I can hear you all gasp) for a loan of £15000.

So we paid off the debts. Everything was peachy. Until Christmas. Instead of cancelling the cards, we used them again, and maxed them out.

So there we were, struggling to pay things off, and couldn’t, couldn’t afford to live etc etc.

So we buried our heads in the sand. Until now. Payments have not been made on any account since end of last year.

I have since split with my partner of the time, although we remain on good terms.

So the debts that I have, along with figures are as follows (according to Experian).

MBNA
1,271.00
Clydesdale
7,216.00
Santander
1,684.00
WFS
18,280.00
Barclays
628.00
Barclaycard
1,328.00
Mint
1,626.00

So I have calculated my outgoings and how much I can afford to pay out per month. I have then calculated the percent of my debt for each creditor, and how much I should be paying to each, on a “fair” basis.

So the next part is where I need help. My first thought was to determine the exact amounts owed. I figured I would do this via CCA request. The second thing I need help on is this:

During the summer (generally from April – September), I work as a chef in a cafe in addition to my normal job. These are long hours, which subsequently amount to decent second pay. I am intending to use this money to boost how much I pay during the summer months. The question is, what is the best way of doing this? Do I aim this extra money at smaller accounts to clear them quicker? Or do I increase all payments for those months, and then decrease back down after?

I am hoping to get my CCA requests out Monday 25 October, so look forward to hearing from anyone by then!

Thanks,

Andy

Geebee

Hi Andy, :wave: Welcome to the forum.

I wouldnt be the best person to be giving out advice here as i know nothing about these things, but there are many on here who can help you enormously.

As far as i can tell, the best way to clear debts is to pay the most to the ones with the largest interest on them, so that they are paid off quicker so as to reduce the amount of 'dead' money being thrown at the interest only.

Someone will be along soon to help better than this though.

Good luck. GB

zackfair1983

Thanks GB!

Just a quick thought actually - some creditors, i.e. Welcome, I haven't heard from in a long time. At least 6 months, I think. Is contacting them now a bad idea? Will that charge them into action?

Geebee

zackfair1983 wrote: »

Thanks GB!

Just a quick thought actually - some creditors, i.e. Welcome, I haven't heard from in a long time. At least 6 months, I think. Is contacting them now a bad idea? Will that charge them into action?

I cant actually see that you contacting them now will 'remind' them as such. They'll just be waiting for the right moment i would think. Also, you might want to check that all this time they're being quiet, they arent just adding more interest!.

What ever you do, only communicate in writing. Do not allow them to bully you into paying more than you can reasonably afford.

GB.

bottleofred

Hi Andy,

Totally agree with Geebee regarding paying off the highest interest cards first. However, you should also post your statement of affairs properly so you can get advice on how to save money etc. Always only communicate with them in writing and if they phone you, don't answer the security questions etc.

This is the link for the statement of affairs http://www.makesenseofcards.com/soacalc.html

There is a letter for telephone harassment, but we can get to that if it starts.

Good luck

Primrose

Best advice is always to try and concentrate on clearin the debts which have the highest interest rates. Somewhere on this site - and I've checked but can't find it but somebody else may have the link - I believe there's a caculator tool which allows you to enter in all your various debts and the interest rate and it will tell you how long it will take to clear. I seem to remember that you can alter the amounts you repay and it will calculate how much shorter your repayment time will be.

zackfair1983

My SOA...

[tt]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................ 1800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1800
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 30
Gas..................................... 0
Oil..................................... 0
Water rates............................. 6
Telephone (land line)................... 20
Mobile phone............................ 120
TV Licence.............................. 11
Satellite/Cable TV...................... 46
Internet Services....................... 20
Groceries etc. ......................... 80
Clothing................................ 5
Petrol/diesel........................... 80
Road tax................................ 19
Car Insurance........................... 103
Car maintenance (including MOT)......... 5
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 8
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1453

Assets
Cash.................................... 0
House value (Gross)..................... 65000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 66000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 68000....(0)........0
Secured Debt.................. 18020....(0)........0
Total secured & HP debts...... 86020.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................1271......0.........0
Clydesdale.....................7216......0.........0
Santander......................1684......0.........0
Mint...........................1626......0.........0
Barclaycard....................1328......0.........0
Barclays.......................628.......0.........0
Total unsecured debts..........13753.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,453
Available for debt repayments........... 347
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 347
Personal Balance Sheet Summary
Total assets (things you own)........... 66,000
Total HP & Secured debt................. -86,020
Total Unsecured debt.................... -13,753
Net Assets.............................. -33,773
[/tt]

A few things of note -

Although the house is still half in my name, I no longer live there. The mortgage is kept up to date by my ex.

I have not included monthly payments, because at present there are none. Naturally, that's what I'm looking to do.

There is an element here of "educational guesswork" within the SOA. I don't think I've ever really done anything like this to this extent.

My monthly salary is inclusive of overtime. Normally it is about £1406.

I have about £1 in savings, and therefore haven't included it in the above.

Watalie

zackfair1983 wrote: »

My SOA...

[tt]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................ 1800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1800
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750
WOW - THATS REALLY EXPENSIVE! CAN YOU FIND SOMEWHERE CHEAPER?
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 30
Gas..................................... 0
Oil..................................... 0
Water rates............................. 6
Telephone (land line)................... 20
Mobile phone............................ 120
AGAIN - REALLY HIGH! PAYG AN OPTION?
TV Licence.............................. 11
Satellite/Cable TV...................... 46
Internet Services....................... 20
CAN YOU GET CABLE AND INTERNET COMBINED - YOU'D SAVE A FAIR WHACK ON THAT.
Groceries etc. ......................... 80
Clothing................................ 5
Petrol/diesel........................... 80
Road tax................................ 19
Car Insurance........................... 103
AGIN, THATS REALLY HIGH
Car maintenance (including MOT)......... 5
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 8
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1453

Assets
Cash.................................... 0
House value (Gross)..................... 65000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 66000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 68000....(0)........0
Secured Debt.................. 18020....(0)........0
Total secured & HP debts...... 86020.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................1271......0.........0
Clydesdale.....................7216......0.........0
Santander......................1684......0.........0
Mint...........................1626......0.........0
Barclaycard....................1328......0.........0
Barclays.......................628.......0.........0
Total unsecured debts..........13753.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,453
Available for debt repayments........... 347
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 347
Personal Balance Sheet Summary
Total assets (things you own)........... 66,000
Total HP & Secured debt................. -86,020
Total Unsecured debt.................... -13,753
Net Assets.............................. -33,773
[/tt]

A few things of note -

Although the house is still half in my name, I no longer live there. The mortgage is kept up to date by my ex.

I have not included monthly payments, because at present there are none. Naturally, that's what I'm looking to do.

There is an element here of "educational guesswork" within the SOA. I don't think I've ever really done anything like this to this extent.

My monthly salary is inclusive of overtime. Normally it is about £1406.

I have about £1 in savings, and therefore haven't included it in the above.

Sorry my comments are in caps, can't figure out how to make them a different colour.

At least you know you have work to do to fix it all

Good Luck!!

Nixxx

zackfair1983 wrote: »

My SOA...

[tt]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................ 1800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1800
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750 - This is very high and is almost half your income. Can you move to a cheaper area? Try and find somewhere for £600 or less (if possible).
Management charge (leasehold property).. 0
Council tax............................. 130 - Are you living alone? Are you claiming single persons discount?
Electricity............................. 30
Gas..................................... 0
Oil..................................... 0
Water rates............................. 6
Telephone (land line)................... 20
Mobile phone............................ 120 (This is extremly high. I cant think of a reason to have such a high mobile phone bill. Is it just for one? You can get an unlimited phoneline from tescos for £30. If you are mid contract, call to reduce to the lowest tariff)
TV Licence.............................. 11
Satellite/Cable TV...................... 46 - So you pay £86 for you satellite, phone and internet? That is too high. Try and get this on one package. Lots of people will tell you to get rid, but if you decide to keep it then aim for <£50.
Internet Services....................... 20 - see above
Groceries etc. ......................... 80
Clothing................................ 5 - get rid (only £5 but every little helps
Petrol/diesel........................... 80 - Can you do this cheaper? Do you have to drive to work? Can you car share?
Road tax................................ 19
Car Insurance........................... 103 - :eek: this is £1236 per year! Why is this so high? Can you shop around? Use cashback websites as well. Or get rid of the car.
Car maintenance (including MOT)......... 5
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 8
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 - Something should be here
Total monthly expenses.................. 1453

Assets
Cash.................................... 0
House value (Gross)..................... 65000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 66000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 68000....(0)........0
Secured Debt.................. 18020....(0)........0
Total secured & HP debts...... 86020.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................1271......0.........0
Clydesdale.....................7216......0.........0
Santander......................1684......0.........0
Mint...........................1626......0.........0
Barclaycard....................1328......0.........0
Barclays.......................628.......0.........0
Total unsecured debts..........13753.....0.........-

Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,453
Available for debt repayments........... 347
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 347
Personal Balance Sheet Summary
Total assets (things you own)........... 66,000
Total HP & Secured debt................. -86,020
Total Unsecured debt.................... -13,753
Net Assets.............................. -33,773
[/tt]

A few things of note -

Although the house is still half in my name, I no longer live there. The mortgage is kept up to date by my ex. Do you plan to sell? Do you plan to keep you share of the equity? What are your plans here?

I have not included monthly payments, because at present there are none. Naturally, that's what I'm looking to do.

There is an element here of "educational guesswork" within the SOA. I don't think I've ever really done anything like this to this extent. You need to get some factual information about your SOA and stop guessing. Have you not received any letters from any of these companies? Open all correspondence and find out the exact details. Do not just rely on experian. It will help to find out all your APRs to start tackling them in the smartest way.

My monthly salary is inclusive of overtime. Normally it is about £1406. Is £1800 guaranteed? If it isn't regular then maybe you should exclude it from your SOA

I have about £1 in savings, and therefore haven't included it in the above.

See comments above

podperson

Some good comments for cutting back above so I'd only be repeating them Are all the debts in joint names with your ex-partner? If so is she going to be contributing to them as well since otherwise you are going to be stuck with full responsibility for all of them. If you haven't made any payments on the accounts since last year then would assume that they will have been passed to dcas now so will need to find out what the current balances are and who they are with. You do have a surplus at the end of the month so once you have this information can look at making repayment proposals for the debts.
Regarding earning extra money over the summer since the debts are likely to be in default at the moment I would be tempted to save all the money and try and get full and final settlements with at least some of the debts.

KingElvis

Mobile £120 pm? blimey that would get the chop as would the huge sums you pay to television companies.