okey dokey, where to begin?

Tixy

Hi

The £800 makes more sense now - but do make sure the servants are properly disciplined for confusing everyone:D

Regarding the threatened interest rate rises - do you know you can opt out of these increases? you need to do that to stop them increasing the rates (it will mean you can't use the card anymore but you can continue to pay off at the usual rate).

DMP - yep usually 2months or so to set up.

I think your budget looks okay for a DMP for creditors to see - but for yourselves when it comes to seeing where you might be able to cut back

Buildings & contents - this looks quite high (although obv depends on your house value etc) - but at renewal shop round to see if you can get cheaper - tips on this website for earning cashback etc.
Gas & elec - have you shopped around recently to check you are with cheapest supplier and best tariff?
Breakdown cover - may be able to get cheaper, shop around at renewal (never let them renew automatically as you can nearly always get a discount if you say you are leaving)
Food, Toiletries, Cleaning - should be able to find you can do this for a bit less in practice, if you can do it for £300 then you should have £100 'surplus' in your DMP for emergencies etc.
Hairdressing - maybe you could suggest Mrs T goes a bit less often (an extra week between cuts) or persuade her to use a more junior stylist or even consider using the local college for a very cheap cut (local hair dressing college of course, don't let a trainee mechanic at her hair!)
Sport/entertainment - sounds like a good deal.

tenpence_shy

here you go you bloodsucking animals

it doesn't look as cuddly as the CCCS one, but contains the same info(i think)
the gas/ele is cheap as i we can get, mrs t gets a discount as she works for the supplier(i do love telling that to the telesales guys who hound us of an eve!)
i've opted out of an interest rates rise before with egg and managed to shuffle that around to a better card, but my shuffling ability seems to have run out this time!
all cards are just about at their credit limits, barring the abbey that i hope to shuffle into the rest before opeing a bank account there

so what dost thou think, oh wondrous sages of t'web

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................ 1325
Partners monthly income after tax....... 1375
Benefits................................ 135
Other income............................ 0
Total monthly income.................... 2835

Monthly Expense Details
Mortgage................................ 853
Secured/HP loan repayments.............. 149
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 114
Electricity............................. 48
Gas..................................... 46
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 15
Mobile phone............................ 35
TV Licence.............................. 13
Satellite/Cable TV...................... 21
Internet Services....................... 7.5
Groceries etc. ......................... 400
Clothing................................ 60
Petrol/diesel........................... 130
Road tax................................ 10
Car Insurance........................... 25
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 68
Childcare/nursery....................... 160
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 21
Contents insurance...................... 25
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 34
Holiday................................. 0
Emergency fund.......................... 0
Child Trust Fund........................ 20
Total monthly expenses.................. 2430.5


Assets
Cash.................................... 0
House value (Gross)..................... 143000
Shares and bonds........................ 900
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 143900


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 121000...(853)......5.95
Secured Debt.................. 9000.....(149)......8.9
Total secured & HP debts...... 130000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Abbey..........................336.......9.........20.9
Barclaycard 1..................9565......210.......6.9
Barclaycard 2..................4900......105.......6.9
Tesco..........................1358......41........16.9
Natwest Overdraft..............2300......0.........20
Natwest 2......................6750......151.......14.9
Natwest 1......................1679......37........14.9
HSBC...........................2604......65........29.9
Halifax 2......................950.......10........23.9
Halifax 1......................5581......58........13.9
Egg............................17........5.........19.9
Total unsecured debts..........36040.....691.......-


Monthly Budget Summary
Total monthly income.................... 2,835
Expenses (including HP & secured debts). 2,430.5
Available for debt repayments........... 404.5
Monthly UNsecured debt repayments....... 691
Amount short for making debt repayments. -286.5

Personal Balance Sheet Summary
Total assets (things you own)........... 143,900
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -36,040
Net Assets.............................. -22,140

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

Tixy

Erm - not trying to be picky but your outgoings are £100 less on this version?

I think its mostly breakdown cover and school meals.

Are all the debts listed cards (aside from the one marked overdraft?), no loans in there at all?

dancingfairy

Hi - there are a few arears where you might be able to make small cutbacks but I can't see that you can make up the shortfall of 286 a month. It does look like an IVA or DMP are your best options. An IVA is a formal arrangement that you are your creditors pretty much have to stick to whereas a dmp is more flexible - ie you earn more you can pay more, if you earn less or childcare goes up or such like you pay back less each month but takes longer to pay off. An IVA is good if you think that your income and situation are likely to not change much in the next 5 years and gives you the security of knowing once you get to the 5 year point that that's it , however you will be expected to remortgage (or at least attempt to remortgage ) at a certain point to release any equity. They also are a form of insolvency.
A dmp - does not have a set time line so assuming you pay 400 amonth it will take approx 90 months if interest and charges are stopped. - approx 7.5 years but hopefully before then you will have squirelled away a few pounds here and there and can do a deal with them to settle. In a dmp there is no guarantee that interest and charges will be stopped however many creditors do eventually stop them.
Whichever option you choose your credit rating will suffer I'm afraid so getting the mortgage sorted sooner rather than later may be a good option.
I know that doesn't tell you what to do but the IVA board on here is good if you want to explore that side of things before you make up your mind.
df

lufc_4eva

Welcome Im a newbie too x

dancingfairy

A couple of questions - what rate mortgage do you think you may be able to get? are you thinking of fixed or variable?
Secondly you've been offered a 15k loan - is it secured or unsecured? if secured I wouldn't touch it due to the additional risks of loosing the house etc but if unsecured you would need to crunch the numbers to see how much it would be per month and whether that would see you balance or not.
df

tenpence_shy

Tixy wrote: »

Erm - not trying to be picky but your outgoings are £100 less on this version?

I think its mostly breakdown cover and school meals.

Are all the debts listed cards (aside from the one marked overdraft?), no loans in there at all?

yes, its the £64 for school dinners and £30 sundries/emergency
forgot to add them in

all cc's, no loans barring the secured one with black horse.
one of my earlier questions had been whether it was advisable to take the £14k loan offered to pay off cc's
payments would be £292 per month @9.7% over 5 years, but the feedback so far ranged from 'ooh bad man, trying to defraud the bank' to 'erm, not really a good idea' so thats been shelved

10p

dancingfairy

can you get childcare vouchers through your employer? You would need to check this as it affects benefits - working tax credit or child tax credit or something - so sometimes it doesn't allways work out better but it's a though if you don't already do it.
Benefits - are you getting all that you are entitled to?
df

DVardysShadow

tenpence_shy wrote: »

Unsecured Debts
Description....................Debt......Monthly.. .APR
HSBC...........................2604......65....... 29.9
Halifax 2......................950.......10........23.9
Abbey..........................336.......9........ 20.9
Natwest Overdraft..............2300......0.........20
Egg............................17........5........ 19.9
Tesco..........................1358......41....... 16.9
Natwest 2......................6750......151.......14.9
Natwest 1......................1679......37........14.9
Halifax 1......................5581......58........13.9
Barclaycard 1..................9565......210....... 6.9
Barclaycard 2..................4900......105....... 6.9
Total unsecured debts..........36040.....691.......-

Ah the interesting bit. I have sorted it into APR order. Although you look very deep in, I think that the rest of your SoA may be judged to show that you need to control your expenditure, in order to cover your minimums. And you need to come right off increasing your debt

On the debt, you need to start moving it to the lowest APR. So pay back minimums each month and put all your expenditure onto the lowest APR credit line you can [don't spend extra in the process!]. Everything you put on to the lower line of credit you pay off your highest APR debt

dancingfairy

DVardysShadow wrote: »

Ah the interesting bit. I have sorted it into APR order. Although you look very deep in, I think that the rest of your SoA may be judged to show that you need to control your expenditure, in order to cover your minimums. And you need to come right off increasing your debt

On the debt, you need to start moving it to the lowest APR. So pay back minimums each month and put all your expenditure onto the lowest APR credit line you can [don't spend extra in the process!]. Everything you put on to the lower line of credit you pay off your highest APR debt

The OP is overspending by nearly 400 a month if you include debt repayments so where do you propose they make that amount of cuts from? I think that's the point.
df