Out of my Depth

Sloley777

Dear DFW Forum,

I am currently in a DMP with the CCCS which my husband and I have been paying into since 2002. Since then we have had 2 children (last one in October 2009) and acculumated 3 catalogues, 2 payday loans and husband has a seperate payament arrangement on a car he wrote off. I now find myself ina position that I cannot keep up with even the minimum payment and was comtemplating going into an IVA. I have noticed your forum suggests an IVA as a last resort and I was afraid the CCCS would cancel my plan with them if I tell them about the additional debt I have incurred. Could someone advise as I don't want to go to an IVA 'hard sell' company without looking at all the options. I have read the IVA guidance leaflet which has now managed to scare me to death..... But I don;t want to get to the stage where bailiffs are knocking on my door or worse: I lose my house. Please help!!!

Trollfever

If you post a SOA the experienced folks here will be able to guide you;

http://www.makesenseofcards.com/soacalc.html

Sloley777

[tt]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................ 2300
Partners monthly income after tax....... 2000
Benefits................................ 132
Other income............................ 0
Total monthly income.................... 4432
Monthly Expense Details
Mortgage................................ 808
Secured/HP loan repayments.............. 418
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 100
Gas..................................... 136
Oil..................................... 0
Water rates............................. 100
Telephone (land line)................... 20
Mobile phone............................ 100
TV Licence.............................. 13
Satellite/Cable TV...................... 100
Internet Services....................... 15
Groceries etc. ......................... 350
Clothing................................ 50
Petrol/diesel........................... 350
Road tax................................ 260
Car Insurance........................... 45
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 600
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 40
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 60
Presents (birthday, christmas etc)...... 42
Haircuts................................ 100
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 4174

Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 130000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(808)......6.55
Secured Debt.................. 4000.....(223)......45
Hire Purchase (HP) debt ...... 11500....(195)......5
Total secured & HP debts...... 180500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
CCCS...........................47000.....221.......0
Catalogues, Payday Lo..........9500......810.......0
Welcome Car Finance............10000.....50........0
Total unsecured debts..........66500.....1081......-

Monthly Budget Summary
Total monthly income.................... 4,432
Expenses (including HP & secured debts). 4,174
Available for debt repayments........... 258
Monthly UNsecured debt repayments....... 1,081
Amount short for making debt repayments. -823
Personal Balance Sheet Summary
Total assets (things you own)........... 130,000
Total HP & Secured debt................. -180,500
Total Unsecured debt.................... -66,500
Net Assets.............................. -117,000
[/tt]

Dellers

Just has a quick see though Gas and electric is very high see about changing supplier.Also road tax see about getting a car that has a lower tax bracket or ideally none at all. Mobile £100 is crazy get a contract phone for £25 pm. Sat tv you can not afford its a luxury get rid.Groceries you can cut down a lot head over to the old style money saving they can help you there on that. Presents cut down to £5 pm and haircuts literally cut that out. Go to a cheaper salon or mobile hair dresser. If you are getting highlights etc dye your hair back to the natural colour until you are on your feet again. Also hair once every 3 months you done need it once a month. It will be a long road but you will get there

ceh209

Are you sure those figures are all the correct monthly figures?

e.g. I can't find 1 vehicle which would cost you 260 a month in road tax!

It might seem picky but the SOA needs to be accurate for people here to best advise on your options.

Best of luck :money:

Dellers

ceh209 wrote: »

Are you sure those figures are all the correct monthly figures?

e.g. I can't find 1 vehicle which would cost you 260 a month in road tax!

It might seem picky but the SOA needs to be accurate for people here to best advise on your options.

Best of luck :money:

Bugatti veyron :rotfl:

podperson

Monthly Income Details
Monthly income after tax................ 2300
Partners monthly income after tax....... 2000
Benefits................................ 132
Other income............................ 0
Total monthly income.................... 4432
Monthly Expense Details
Mortgage................................ 808
Secured/HP loan repayments.............. 418
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 100 - electric and gas very high, check comparison sites
Gas..................................... 136
Oil..................................... 0
Water rates............................. 100
Telephone (land line)................... 20
Mobile phone............................ 100 - can you cut the package down or go on PAYE
TV Licence.............................. 13
Satellite/Cable TV...................... 100 - needs to be reduced
Internet Services....................... 15
Groceries etc. ......................... 350 - could come down a bit, check the os boards for lots of ideas to save money on this
Clothing................................ 50
Petrol/diesel........................... 350
Road tax................................ 260 - is this right??
Car Insurance........................... 45
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 600 - can you get any vouchers for this through either of your works?
Other child related expenses............ 200 - what's this?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 40
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 60 - and this?
Presents (birthday, christmas etc)...... 42
Haircuts................................ 100 - needs to come down, can you try colleges? is this just for you since if the kids are only little can surely do theirs at home?
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 50 - do you have anything from this or is this what you're aiming for in the future?
Total monthly expenses.................. 4174

Have added some comments. Lots of areas where you could cut back.

VanillaDelia

I think you need to get adding your other debts to your DMP (Catalogues, Payday Loans and anything else that CCCS will see eligible). Everyone else has covered the other areas which I agree with.

RAS

Hi

Firtstly, other posters on here have had their DMPs with CCCS cancelled because they had taken out additional debt without speaking to CCCS first, so that is definately an option.

Secondly, you would be an IVA providers idea of heaven, the budget you would be alowed on an IVA, as the budget on IVAs is so tight that you can afford a good few hundred each month.

We need to you break down exactly £9500 catalogues and payday loans section?

Is the house really in that much negative equity?

eyeopener2

You also need to start addressing the overspending that is going on. You go on a DMP and then you have Sky and Mobile phones at the top end? Try and look at where your going here, I realise you have children now and I know they are expensive, but you need to set a budget and stick to it.

When the children arrived you could have negotiated lower payments with CCCS, as with the car write off. That would have prevented the payday loans which I know to my cost are crippling.

I know none of what I have said here really helps the current situation and may sound like preaching, its not intended to, but please take a look at your spending habits for the future.

Satellite (100), mobiles(100), entertainment(50),presents(42), haircuts(100)? How much of this £400 is really necessary in your predicament?

RAS

Sloley777 wrote: »

[tt]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................ 2300
Partners monthly income after tax....... 2000
Benefits................................ 132
Other income............................ 0
Total monthly income.................... 4432 - good income
Monthly Expense Details
Mortgage................................ 808
Secured/HP loan repayments.............. 418
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 100 - this is massively high, you should be able to halve this
Gas..................................... 136 this is massively high, you should be able to halve this
Oil..................................... 0
Water rates............................. 100
Telephone (land line)................... 20
Mobile phone............................ 100 - this is ludicrous even if it is for 4 people? You need to reduce all contracts ASAP and aim for PAYG. If you do an IVA or go BR, you will get about £45 -50 for all telephones and the internet combined.
TV Licence.............................. 13
Satellite/Cable TV...................... 100 - this has to go - you will not be allowed it in an IVA or BR
Internet Services....................... 15
Groceries etc. ......................... 350 - OK in a BR situation but you could expect to cut this on an IVA. Given your debt, £240 -260 is what to aim for.
Clothing................................ 50 - just about OK if you did not owe this much. Shoes and knickers only for a wqhile. Use freegle and e-bay lus charity shops for a while for the kids particularly
Petrol/diesel........................... 350 - do you have to do all this travel?
Road tax................................ 260 - per month or per year?
Car Insurance........................... 45
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 600 - is this on vouchers?
Other child related expenses............ 200 - what is this?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 40 - this is rather high, check it ad renew elseqwhwere via a cashbakc site
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 60 - what is this?
Presents (birthday, christmas etc)...... 42 - sorry you have to halve this?
Haircuts................................ 100 - this is also ludicrous, you cannot afford it.
Entertainment........................... 50 - this needs cutting back to £10-15
Holiday................................. 0
Emergency fund.......................... 50 - how much is in the fund?
Total monthly expenses.................. 4174

Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 130000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(808)......6.55 - this is a lot of negative equity?
Secured Debt.................. 4000.....(223)......45 - Whow! when does this debt end? Can you pay it off without penalty? Secured on what?
Hire Purchase (HP) debt ...... 11500....(195)......5
Total secured & HP debts...... 180500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
CCCS...........................47000.....221.......0
Catalogues, Payday Lo..........9500......810.......0 - please list all these separately
Welcome Car Finance............10000.....50........0 - was this secured on the car?
Total unsecured debts..........66500.....1081......-

Monthly Budget Summary
Total monthly income.................... 4,432
Expenses (including HP & secured debts). 4,174
Available for debt repayments........... 258
Monthly UNsecured debt repayments....... 1,081
Amount short for making debt repayments. -823
Personal Balance Sheet Summary
Total assets (things you own)........... 130,000
Total HP & Secured debt................. -180,500
Total Unsecured debt.................... -66,500
Net Assets.............................. -117,000
[/tt]

Hi

I reckon you can reduce your spends by £970 ish per month and maintain these payments.

We need to see exectly what is going on with the more recent debts.

Whether you can get yourself out of the payday loan hole, it needs to be seen.

If that is possible, I suggest you do so and then talk to CCCS. I suspect from this SOA that you have not told them about salary increases since 2002?

In the mean-time, you need to go round the house, identify everything that you no longer use and work out how to sell it.

And you and OH have to have a very honest discussion about your inability to live on a very high salary.