Debt getting me down.. Which option for me?

Nicedayjames

Thanks again, I've buried my head in the sand for long enough, since our first baby appeared really...

Now is the time to stand up and act, whatever the impartial independant advise is, then I will try.

dancingfairy

to be honest with 31 a month to pay back 30,000 worth of debt a dmp is not really going to be a particularly sensible option - even if you can free up a bit it's not really going to work for you as far as I can see which leads to an IVA or bankruptcy. I can't think an IVA is going to work either with a repayment of 31 a month - I'm not sure your creditors would accept this as a decent proposal to be honest which leads to bankruptcy which on the face of it is looking the most likely option.
Perhaps it is worth going to the bankruptcy board and seeing what people there think?
df

Tixy

But the surplus should be much more than £31. At the very least child benefit for 2 children is missing which is around £120 I think, the food budget is too high (for a DMP etc) and maybe wife will have some benefits or be able to contribute somehow.

If the amount for debt repayments was something in the region £250 a month then something like a DMP might be do-able, although still long. Of course it might still an option to consider bankruptcy but I would imagine its likely that there will be an IPA attached to it so will be repayments after bankruptcy as not all the costs shown are allowable in bankruptcy.

Try to fine tune and correct your SoA with your wife's input and then speak to one of the charities.

Good luck, let us know how you get on.

saltnvinegar

Hi

You have had some good feedback already on your SOA but just thought I'd put some observations on where you could save money.

If you cut down on the areas below you would be over £300/month better off which can be used to pay off your debts.

Best

SnV

Nicedayjames wrote: »

Thanks for the advise guys .. its doesn't make for good reading but here it is:

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2000
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 625
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 60
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 40
Mobile phone............................ 40
If you look at your landline and mobile combined that is quite expensive. You could combine your internet/phone with someone like PlusNet for approx £30/month and get free calls in the evenings and weekends. If your mobile is on a contract see if you can get it downgraded or ditch it for a PAYG when it is renewed.
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 10
Groceries etc. ......................... 400
This is really high. We don't spend this much with a family of 6. I think you could realistically get this down to about £275 a month and still live comfortably
Clothing................................ 150
This can be reduced to approx £50 a month.
Petrol/diesel........................... 100
Road tax................................ 40
Car Insurance........................... 60
Car maintenance (including MOT)......... 50
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 ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
You should be aiming for this to be approx £23 a month
Haircuts................................ 30
Entertainment........................... 100
You should be aiming to get this down to approx £20 a month
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1969

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................9000......0.........18
credit cards...................20000......0.........22
overdraft......................1000......0.........20
Total unsecured debts..........30000.....0.........-

Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,969
Available for debt repayments........... 31
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 31
Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,000
Net Assets.............................. -28,500

RAS

Nicedayjames wrote: »

Thanks for the advise guys .. its doesn't make for good reading but here it is:

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2 You may be allowed to keep one car, but probably not both
Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 0 - your partner needs to do some work as this will be tax free
Benefits................................ 0 - you should be getting these? CB? WTC? CTC? check www.turn2us.co.uk
Other income............................ 0
Total monthly income.................... 2000
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 625 - is this the best deal locally?
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 60 - can you reduce this?
Gas..................................... 50 and this
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 40 - BR will allow about £45 for al comms, so you need to down grqade this now.
Mobile phone............................ 40 as above
TV Licence.............................. 12
Satellite/Cable TV...................... 20 - you cannot afford this
Internet Services....................... 10
Groceries etc. ......................... 400 - high even for BR- certainly you can cut £100 if you want to
Clothing................................ 150 - you need to reduce this to close to zero
Petrol/diesel........................... 100
Road tax................................ 40
Car Insurance........................... 60 - is this both cars?
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 - I think in BR you get one activity per child at £5?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 22 -you might get a better deal and use quidco to change
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60 - you will not get this allowance in BR
Haircuts................................ 30
Entertainment........................... 100 - ditto here
Holiday................................. 0 - you might get a small allowance here?
Emergency fund.......................... 0
Total monthly expenses.................. 1969

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................9000......0.........18
credit cards...................20000......0.........22
overdraft......................1000......0.........20
Total unsecured debts..........30000.....0.........-

Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,969
Available for debt repayments........... 31
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 31
Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,000
Net Assets.............................. -28,500

I suspect that in BR, you would have to cut your expenditure considerably on a number of items, and add most of your benefits (CB should be excluded).

Under the new rules you would only be allowed a £20 surplus, so expect an IPA or £200 - 400.