My SOA

JSF23

Hi all. Newbie post. I've just done the CCCS Debt Remedy online form and below is a similar outcome.

CCCS recommended an IVA or a DMP. Probably going down the DMP route. It has the repayment as £538 over 7 years for a DMP. Assuming the creditors agree of course.

My concern is the liklihood of interest rate increases on the secured loans. Any shift would have a massive impact. Are DMP's only reviewed annually or would a significant change, e.g. 2% increase in rates prompt a review?

Comments appreciated on the SOA but most personal expenditure is based on their recommended levels.

Thanks


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1667
Partners monthly income after tax....... 1200
Benefits................................ 189
Other income............................ 39
Total monthly income.................... 3095
Monthly Expense Details
Mortgage................................ 467
Secured/HP loan repayments.............. 507
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135
Electricity............................. 65
Gas..................................... 60
Oil..................................... 0
Water rates............................. 43
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 13
Satellite/Cable TV...................... 23
Internet Services....................... 7.5
Groceries etc. ......................... 466
Clothing................................ 68
Petrol/diesel........................... 130
Road tax................................ 10
Car Insurance........................... 28
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 170
Medical (prescriptions, dentist etc).... 19
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 17
Presents (birthday, christmas etc)...... 30
Haircuts................................ 32
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 34
Tobacco................................. 40
Total monthly expenses.................. 2539.5

Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 122000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 76000....(467)......NaN
Secured Debt.................. 45000....(400)......NaN<
Secured Debt...................15000....(107)......NaN
Total secured & HP debts...... 136000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................28500.....859.......NaN
Loan...........................14272.....427.......NaN
Overdraft......................1800......90........NaN
Total unsecured debts..........44572.....1376......-

Monthly Budget Summary
Total monthly income.................... 3,095
Expenses (including HP & secured debts). 2,539.5
Available for debt repayments........... 555.5
Monthly UNsecured debt repayments....... 1,376
Amount short for making debt repayments. -820.5
Personal Balance Sheet Summary
Total assets (things you own)........... 122,000
Total HP & Secured debt................. -136,000
Total Unsecured debt.................... -44,572
Net Assets.............................. -58,572

ViolaLass

I think you could cut at least £100 from your grocery bill.

Also, stop smoking, ditch the satellite TV, ditch the presents and ditch the emergency fund (not much point having one when you're this much in debt).

NeverAgain_2

Agree about the grocery bill, but I wonder if that's not just shifting the deckchairs on the Titanic.

There's a decent income here, but the rest is something of a horror story.

Around £136,000 secured on a £120,000 house, plus £44,500 in credit card debts.

All this with five mouths to feed, clothe, and entertain.

This has to be leading to the "B" word, doesn't it?

The one thing against that might be all the secured debt on top of the mortgage.

I've never worked out what happens to that in bankruptcy.

JSF23

Thanks for the quick reply. The grocery amount was the CCCS recommended amount based on our 2 + 3 household. They also include gifts to cover xmas as the idea is to live whilst paying the whole debt (admittedly less / nil interst) over x number of years. Am I right in thinking that reducing outgoings will simply shorten the period, say 7 to 5 years? I'm of the mind to have enough to actually live and pay over longer period. Not sure how that will sit with the creditors though, but i'll admiy that I can't go on like this.

JSF23

NeverAgain wrote: »

Agree about the grocery bill, but I wonder if that's not just shifting the deckchairs on the Titanic.

There's a decent income here, but the rest is something of a horror story.

Around £136,000 secured on a £120,000 house, plus £44,500 in credit card debts.

All this with five mouths to feed, clothe, and entertain.

This has to be leading to the "B" word, doesn't it?

The one thing against that might be all the secured debt on top of the mortgage.

I've never worked out what happens to that in bankruptcy.

Thanks for the reply. I've no intention of going bankrupt. I'd fight that as far as I could. We could afford the CCCS quoted £538. We could live off the rest. All down to creditors agreeing. Assuming we're unsecured free after 7 years I could hopefully move the secured debt to the mortgage as I as that is currently £75k so if I could get it all under say 90% LTV they might play ball.

Also, both mine and my partners pay will hopefully increase once the public sector pay freeze gets lifted.

maskerade

I think it'd be better if you post a SOA showing what you actually spend - it'd help people to give more realistic advice.

And £466 is so much on groceries! I spend about £50 for one and eat very well so giving you a bit of leeway you should aim for £300 ish.

What are the £170 other child related expenses?

I wouldn't rely on getting a payrise. Plenty of people in the private sector haven't had one for years and there's no reason to assume the ban will lift any time soon

iamana1ias

JSF23 wrote: »

Also, both mine and my partners pay will hopefully increase once the public sector pay freeze gets lifted.

Unless one/both of you is made redundant first

dancingfairy

At 555 a month I reckon it will take 80 months to pay off the unsecured debts if interest and charges are stopped. This is 6.6 years I think. At 655 it will take 67 months , which is 5 and a bit years.
How much do you think you will need realistically to live on? you could always go with the CCCS budget for a while and see how you do and then change it after say 6 months to 1 years? another option is to go with the CCCS budget and squirrel away any extra to try and make full and final settlements to creditors in a couple of years?
How old are the children and how long is the childcare likely to last?
A dmp is fairly flexible so if the secured loans went up then you could revise your dmp budget then and I would expect CCCS to check in with your every year or so anyway.
With an IVA then you would pay a set amount each month for a period of about 5 years I think - your creditors have to agree to the plan though (in the main I think) - and it is far less flexible - there is the option to change the amount if the payments become too hard but then it will affect the dividend that you creditors will receive after the 5 years so bear in mind that they will want as close to the orginal pence in the pound as possible. You will also be epected to attempt to remortgage at a certain point or make an extra years' worth of payments in compensation if this is not possible. There are fees involved for your practioner but these come out of the overall pot and it is up to your creditors to agree these with your IP. An IVA is great if your circumstances are fairly stable - which they sound as stable as they can be at the moment and it guarantees that if you stick to the agreement you will be debt free in 6 years (I think it's 6). It is aform of insolvency so can affect career options though.
A dmp is thoroughly flexible which can work in your favour but sometimes the creditors so it's a tough call for you on this one - espcially if they take a while to stop interest and charges etc as they don't have to
df

RAS

JSF23 wrote: »

Thanks for the quick reply. The grocery amount was the CCCS recommended amount based on our 2 + 3 household. They also include gifts to cover xmas as the idea is to live whilst paying the whole debt (admittedly less / nil interst) over x number of years. Am I right in thinking that reducing outgoings will simply shorten the period, say 7 to 5 years? I'm of the mind to have enough to actually live and pay over longer period. Not sure how that will sit with the creditors though, but i'll admiy that I can't go on like this.

There are different types of SOA. CCCS do one which makes reasonable allowances. If you go BR, the allowance are usually higher becuase there is less flexibility.

On DFW, we are looking at what is the essential expense, not what might be desirable, so we would prune your DMP SOA considerably.

JSF23

Thanks for the comments. Anybody any thoughts on how CCCS' proposal will be greeted by the creditors. Do most usually accept or should I gear myself up for a fight?

Also any indications of whether interest is frozen or reduced would be appreciated.

[Deleted User]

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1667 Given that you have a pay freeze, I am assuming that currently there's no way to increase this through overtime or the like? Would a second job be an option here, or below? (Have a look at the "up your income" thread for ideas.
Partners monthly income after tax....... 1200 as above
Benefits................................ 189 are you claiming all that you are entitled to?
Other income............................ 39 what's this? Can it be increased?
Total monthly income.................... 3095

Monthly Expense Details
Mortgage................................ 467
Secured/HP loan repayments.............. 507
Council tax............................. 135 Are you currently paying over the usual 10 months? Ask your council if you can spread over 12.
Electricity............................. 65 Both this and below seem quite high. Are you in arrears? (if so when will they be paid off?), if not are you currently in credit with either this, or below? (if so, claim it back). If neither, check that you are on the cheapest tariffs for your area (often online and duel fuel are cheapest), check comparison site (eg USwitch), if switching makes sense look at cashback sites for incentives (eg Quidco, topcashback, onepoll)
Gas..................................... 60
Oil..................................... 0 as above
Water rates............................. 43 again this seems quite high, would a meter be cheaper if you are not already on one (although maybe not if there are 5 of you)
Telephone (land line)................... 20 (you should be able to get home phone and internet for approx £20 pm - look at different companies eg talk talk)
Mobile phone............................ 35 How many phones is this for? If you are stuck in contract, see if you can drop a tariff or two - if/when out of contract look at SIM only and PAYG deals - there are some good £10pm deals out there, have a looka at places like tesco mobile (I saw they had deals on at the moment, but do shop around)
TV Licence.............................. 13
Satellite/Cable TV...................... 23 do you really need this? Would freeview be an option?
Internet Services....................... 7.5 as above
Groceries etc. ......................... 466 this could be cut back on - have a look at the old style board for advice - drop brands, batch cook, meal plan, shop with a list etc
Clothing................................ 68 stick to essential only for now
Petrol/diesel........................... 130 are all journeys essential
Road tax................................ 10
Car Insurance........................... 28
Car maintenance (including MOT)......... 50
Other child related expenses............ 170 Do either, or both of you get vouchers through your work? Would this cut this down?
Medical (prescriptions, dentist etc).... 19 IS this prescriptions? If so check to see if pre-paid prescription certificate would be cheaper. If contacts see if buying online would be cheaper
Buildings insurance..................... 10 at renewal see if combined buildings and contents would be cheaper
Contents insurance...................... 10 as above
Other insurance......................... 17
Presents (birthday, christmas etc)...... 30 what does this cover? Is it good value?
Haircuts................................ 32 see if you have a local college nearby where they do trainee cuts for free/cheap - or go an extra week or two in between cuts
Entertainment........................... 50
Emergency fund.......................... 34
Tobacco................................. 40
Total monthly expenses.................. 2539.5

Assets
Cash.................................... 0 where's the emergency savings? And cash you save for yearly bills insurances etc.
House value (Gross)..................... 120000
Car(s).................................. 2000
Total Assets............................ 122000

Secured & HP Debts
Description....................Debt......Monthly...APR What are the APR's
Mortgage...................... 76000....(467)......NaN
Secured Debt.................. 45000....(400)......NaN<
Secured Debt...................15000....(107)......NaN
Total secured & HP debts...... 136000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR What are the APR's?
Credit Card....................28500.....859.......NaN
Loan...........................14272.....427.......NaN
Overdraft......................1800......90........NaN
Total unsecured debts..........44572.....1376......-

Monthly Budget Summary
Total monthly income.................... 3,095
Expenses (including HP & secured debts). 2,539.5
Available for debt repayments........... 555.5
Monthly UNsecured debt repayments....... 1,376
Amount short for making debt repayments. -820.5

Personal Balance Sheet Summary
Total assets (things you own)........... 122,000
Total HP & Secured debt................. -136,000
Total Unsecured debt.................... -44,572
Net Assets.............................. -58,572

Hi,

I have made comments above, but I have made these assuming that this is your actual spending and not on a projected ideal budget. Even still, I hope that some of the comments are of use to you. Obvaiously not all of them will be of use to you, and as you are in it for the long haul, your SOA needs to be realistic and liveable for a sustained period of time.

You should try and either go through past bank statements to see where all yout cash goes on a monthly basis, or keep a spending diary over the next couple of months.

HTH

D9