Newbie facing up to reality

MalD

Hi,

I just joined after a first visit from Bailiff over missed council tax payments.

Previously had a DMP with CCCS but failed to make payments on time so currently going it alone. Recently things getting worse as my wife has gone back to college so no income (SOA does not include her debts yet!) and having fallen into arrears on council tax and rent in last 2 months. Rent is sorted and up to date but doing so has caused others to slip, hence visit from bailiffs.
Now trying to figure out how to improve current situation and then deal with long term clearance of debts - currently about 20 years if nothing changes.

I am in IT professional, currently trying to find contract work which would bring in much bigger income to sort this mess out!

Worried about Christmas, and oldest daughter planning to go to uni next Sept, not to mention growing gap in relationship with my wife over all this!

Thought I would start with my SOA:

:eek:

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................ 3500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1090
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 71
Gas..................................... 0
Oil..................................... 130
Water rates............................. 24
Telephone (land line)................... 158
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 370
Clothing................................ 30
Petrol/diesel........................... 100
Road tax................................ 17
Car Insurance........................... 51
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 367
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 23
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 12
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 2705


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
DLC............................24214.....110.......0
Equidebt ......................14837.....70........0
Credit Solutions ..............14550.....65........0
Littlewoods....................235.......0.........0
HFC Bank ......................436.......10........0
Fenton Cooper (M&S)............1240......10........0
RBS Cards .....................1698......15........0
Beneficial Card ...............3252......25........0
Metropolitan Collecti..........3897......25........0
Barclaycard ...................5167......55........0
Metropolitan Collecti..........5894......40........0
J B Debt Recovery .............6319......40........0
Creation Financial ............7614......50........0
Direct Legal & Collec..........9122......60........0
RBS Cards .....................9703......45........0
Blair Oliver & Scott ..........10579.....50........0
American Express ..............11391.....50........0
Blair Oliver & Scott ..........12275.....60........0
Blair Oliver & Scott ..........13732.....60........0
Total unsecured debts..........156155....840.......-


Monthly Budget Summary
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 2,705
Available for debt repayments........... 795
Monthly UNsecured debt repayments....... 840
Amount short for making debt repayments. -45

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -156,155
Net Assets.............................. -153,155

Created using the SOA calculator at makesenseofcards
Reproduced on Moneysavingexpert with permission, using other browser.

Niv

MalD wrote: »

Hi,


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................ 3500
Partners monthly income after tax....... 0 - any reason your partner cannot work?
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1090
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 71
Gas..................................... 0
Oil..................................... 130 - This looks high for a monthly bill
Water rates............................. 24
Telephone (land line)................... 158 - Reduce this!!
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 370 - 3 adults can live on less than this
Clothing................................ 30
Petrol/diesel........................... 100
Road tax................................ 17
Car Insurance........................... 51
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 367 - Can you provide some detail on this?
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 23
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 12
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 2705


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
DLC............................24214.....110.......0
Equidebt ......................14837.....70........0
Credit Solutions ..............14550.....65........0
Littlewoods....................235.......0.........0
HFC Bank ......................436.......10........0
Fenton Cooper (M&S)............1240......10........0
RBS Cards .....................1698......15........0
Beneficial Card ...............3252......25........0
Metropolitan Collecti..........3897......25........0
Barclaycard ...................5167......55........0
Metropolitan Collecti..........5894......40........0
J B Debt Recovery .............6319......40........0
Creation Financial ............7614......50........0
Direct Legal & Collec..........9122......60........0
RBS Cards .....................9703......45........0
Blair Oliver & Scott ..........10579.....50........0
American Express ..............11391.....50........0
Blair Oliver & Scott ..........12275.....60........0
Blair Oliver & Scott ..........13732.....60........0
Total unsecured debts..........156155....840.......-


Monthly Budget Summary
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 2,705
Available for debt repayments........... 795
Monthly UNsecured debt repayments....... 840
Amount short for making debt repayments. -45

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -156,155
Net Assets.............................. -153,155

Created using the SOA calculator at makesenseofcards
Reproduced on Moneysavingexpert with permission, using other browser.

Made comments in your SOA above. Also it is quite helpful to know your apr's for your debts, this can help you to prioritise.

Tixy

Hi Mal

Do you and wife keep mostly seperate finances? do you have any joint bank accounts/loans etc? What income does she have? is she able to work part time around college? do you get child benefit and if so what is that used for?

How long ago did you have a DMP? are all the debts from before that time?

I've put a few starting comments on your SoA below to suggest where you may be able to make some reductions.

MalD wrote: »

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................ 3500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1090 is this competative for where you live? any chance you could find somewhere cheaper? or do you have space for a lodger to heplp towards costs?
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 71 have you checked to see if you are with the cheapest supplier? have you tried reducing your usage, particularly of costly items such as elec heaters, tumble driers, immersion heaters etc
Gas..................................... 0
Oil..................................... 130 is this the average over the year or just for the winter months?
Water rates............................. 24
Telephone (land line)................... 158 why is this so high? what does it include? have you looked for a (much) cheaper deal?
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 370 should be able to reduce this a bit - perhaps try aiming for £250 for a family of 4. Try the drop a brand challenge, try alternative supermarkets including the discount supermarkets or maybe try meal planning for a week in advance before you shop.
Clothing................................ 30 is this adults or children? can you try to reduce for now? are children old enough to get part time jobs to buy their own clothes?
Petrol/diesel........................... 100
Road tax................................ 17
Car Insurance........................... 51 do you shop around at renewal time for the best deal?
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 367 what is this for? is it the cheapest form of travelling/buying tickets etc
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 23
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 12
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 2705


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
DLC............................24214.....110.......0
Equidebt ......................14837.....70........0
Credit Solutions ..............14550.....65........0
Littlewoods....................235.......0.........0
HFC Bank ......................436.......10........0
Fenton Cooper (M&S)............1240......10........0
RBS Cards .....................1698......15........0
Beneficial Card ...............3252......25........0
Metropolitan Collecti..........3897......25........0
Barclaycard ...................5167......55........0
Metropolitan Collecti..........5894......40........0
J B Debt Recovery .............6319......40........0
Creation Financial ............7614......50........0
Direct Legal & Collec..........9122......60........0
RBS Cards .....................9703......45........0
Blair Oliver & Scott ..........10579.....50........0
American Express ..............11391.....50........0
Blair Oliver & Scott ..........12275.....60........0
Blair Oliver & Scott ..........13732.....60........0
Total unsecured debts..........156155....840.......-
are these minimum payments or reduced payments? have all frozen interest?

Monthly Budget Summary
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 2,705
Available for debt repayments........... 795
Monthly UNsecured debt repayments....... 840
Amount short for making debt repayments. -45

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -156,155
Net Assets.............................. -153,155

Created using the SOA calculator at makesenseofcards
Reproduced on Moneysavingexpert with permission, using other browser.

MalD

Thanks for quick replies.

SOA is based on my individual income and debts, most of which have frozen charges/interest hence 0%

Answering some points - wife has only just stopped working, job was affecting her health - college is a career change and for her sanity, she is considering part time work to fit in with college.

Oldest daughter just started job in local supermarket

BT bill is combined internet (needed for work), landline and TV package, but they just bumped up my monthly from 70 to 158 as we were using more than budget payments - family got a talking to about this last night - I plan to ask BT to reduce but they may not until next quarterly review

130 for oil is monthly budget payment

367 is monthly cost of train/tube to get me to work was cheaper but company moved offices - salary includes 100 per month compensation for this

Mal

**Kat**_2

MalD wrote: »

BT bill is combined internet (needed for work), landline and TV package, but they just bumped up my monthly from 70 to 158 as we were using more than budget payments - family got a talking to about this last night - I plan to ask BT to reduce but they may not until next quarterly review

130 for oil is monthly budget payment


Mal

Why on earth is BT charging so much? I have sky HD, multiroom, phone and unlimited internet for approx £50 per month (I don't have sport or movies but the movies are always a bit rubbish and if you have a good internet connection you can watch sport on live streaming like me!) - I think you need to think about leaving them as either sky or virgin are much much cheaper (and better TV by all accounts). Have they checked it's not a typo or an error?

If you don't mind me asking, what is the oil for? Just seems an awful lot of money and if it's for heating, it may be worth looking into electric heating (as I assume you don't have gas as no spend on it).

david_hellier

Looking at your figures, as you are working and renting, I would seriously consider bankruptcy as you have no realistic hope of servicing your creditors. There are few savings to be made which would alter this.

KingElvis

david_hellier wrote: »

Looking at your figures, as you are working and renting, I would seriously consider bankruptcy as you have no realistic hope of servicing your creditors. There are few savings to be made which would alter this.

Have to agree with this, this is probably one of the worst I have seen so very good luck op, hope you get a way through this one.

Tixy

david_hellier wrote: »

Looking at your figures, as you are working and renting, I would seriously consider bankruptcy as you have no realistic hope of servicing your creditors. There are few savings to be made which would alter this.

KingElvis wrote: »

Have to agree with this, this is probably one of the worst I have seen so very good luck op, hope you get a way through this one.

Its certainly a high level of debt - but Mal does have quite a large amount left for debt repayments each month, so even before any cutbacks are made if all creditors freeze interest the DMP lifespan would be around 15years, certainly a long time but I have seen DMPs estimated to be much longer on here.

In addition long before that 15years are up the children will be independant, wife might be earning and contributing to the household expenditure and Mal has also said he is looking for higher paid work. So in fact he may be able to clear the debt in far less years than that.

I wouldn't say bankruptcy is not the way to go but I think there are other considerations in this case. I would seek some advice from one of the debt charities Mal for their opinon on your options. If you do consider bankrupty it would be worth getting their advice on what level your monthly IPA would be set at etc.

KingElvis

^^ good advice from Tixy as usual, a very considered view.

But blimey, you pay £150+ to BT for your telly...that would go on no short order. Damn we pay £23 pm for Internet/phone and line rental and use Freeview. I would switch.

MalD

Thanks Tixy for your supportive response.

To clarify on the BT costs, this is not what they charge per month for our services, this is the amount they put up my monthly budget payments to as our quarterly bills were exceeding the amount we were paying - I think it is excessive as by the end of next quarter we will be in credit, I am taking this up with them, but it was due to some careless usage building up the phone bill which could have been avoided - lesson learnt!.

Oil is for heating and hot water, this too is an inflated monthly budget payment, I was paying what seemed to be a reasonable amount until January last year, the oil company did not provide proper statements so I did not see that we were underpaying until I asked for a delivery of oil and was told I had £600+ debit balance, had to agree to increased monthly payments to clear this or go without heat and hot water in the winter - this is now sorted but price of oil has gone up a lot.

I hope to get BT, Oil and electric monthly payments down a.s.a.p.

I am trying to avoid IVA/Bankruptcy as I can see a way forward which could be a significant change to circumstances. That is, changing to contract/freelance work will increase my net income by at least £1200 per month with a potential for 2 or 3 times this depending on rates I can achieve - just need that first lucky break, also my wife's college course will lead her to part time self employment next year, and both kids will be earning their own money then too (eldest already started this month).

I am however reading through the many posts on both bankruptcy and IVA to help me decide.

The advice I am seeing/getting on this forum is helping me see ways to cope with the current difficult spell, which feels like rock bottom, especially approaching Christmas.

Thanks to all who replied - much appreciated

podperson

Lots of great suggestions already so will try not to repeat any. Would just add that if your wife is now a full time student make sure you get the 25% discount on council tax, also could be worth her checking if she could get a ALG or anything similar from the college - not sure if this is income based or not. Regarding your BT payments - I appreciate they have gone up at the moment but £70 a month is still quite high so if you're not in contract definately worth shopping around. Also, if it's phone calls that are bumping the price up we used to have an Unlimited Calls package with Virgin that was around £12 a month for anytime landline or same network mobile calls - would think BT would do something similar so if you're spending a large amount on calls could be worth checking out.