Help - Unsecured debt

rattykay

At the moment I'm in a right mess and would appreciate any help that I can get

I currenty have £27,500 unsecured debt. I havent really defaulted on my payments just the odd couple and can just about afford the minimum payments but the trouble is i'm just not clearing the debt.

for example my hsbc card has 8,600 owing on it and i pay £245 a month off but it only cleard £5 of the balance.

I'm drowning in my own debt which i know is my fault.

The added complication is i'm a qualified accountant. i know i should know better but obviously if i get a CCJ or if i end up in an IVA or bankrupt i could lose my job. would a debt management plan affect my job though???

Any advice would be great......:(

bugslet

No good at advising you on the best route to go down, but with reference to your query about if a DMP would affect your job, is there not a professional trade body that you belong to that would be able to answer that? Best I can think of at the mo.

ElmerFudd

Hi rattykay. Could you post an SOA and we can possibly see where you could save money?

rattykay

Household Information[/b]
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2050
Partners monthly income after tax....... 1000
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3050

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 30
Gas..................................... 49
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 20
Mobile phone............................ 130
TV Licence.............................. 12.95
Satellite/Cable TV...................... 81
Internet Services....................... 30
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 400
Road tax................................ 20
Car Insurance........................... 75
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2086.95


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1900
Other assets............................ 0
Total Assets............................ 1900

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Card......................8600......245.......29.9
HSBC Loan......................4600......143.......0
Santander......................5600......125.......29.9
next...........................400.......45........25
family.........................2000......100.......0
Flexi Loan.....................2500......100.......29.9
Egg............................1500......60........29.9
Halifax........................4500......145.......29.9
Total unsecured debts..........29700.....963.......-


Monthly Budget Summary
Total monthly income.................... 3,050
Expenses (including HP & secured debts). 2,086.95
Available for debt repayments........... 963.05
Monthly UNsecured debt repayments....... 963
Amount left after debt repayments....... 0.05

Personal Balance Sheet Summary
Total assets (things you own)........... 1,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -29,700
Net Assets.............................. -27,800


thanks guys. i belong to the ACCA but i'm to scared to ask.

gettingbackontrack

Hi. Well done on facing up to the problems - i was in almost the same position (though my debt was double!!!!!!!!!) four years ago. Because my monthly payments were being swallowed up by interest, I was going nowhere until I began a self-managed DMP and most of the credit cards froze interest. I think you may have to get advice from your professional association but i can't imagine, if you're aiming to pay off all your debts rather than avoid it, that it would be a problem. Just my uneducated view. You really are paying a massive amount each month - though your 5p left over made me smile!!!!!

brokeinlondon

rattykay wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2050
Partners monthly income after tax....... 1000
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3050

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 30
Gas..................................... 49
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 20
Mobile phone............................ 130this is scarily high, even for 2 contracts! if you're on a contract, see if they'll let you drop a tariff or two. if not on contract, plenty of great pay as you go deals with unlimited txts/lots of mins e.g. with tesco
TV Licence.............................. 12.95
Satellite/Cable TV...................... 81get rid of this. get a freeview box
Internet Services....................... 30definitely cheaper deals out there!
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 400are all journeys definitely essential? this is also very high
Road tax................................ 20
Car Insurance........................... 75i'm not an expert with car ins as i don't drive, but perhaps see if there are any better deals?
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30might be able to reduce this by going longer between hair cuts
Entertainment........................... 150you should be able to reduce this, what does this go on exactly?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2086.95


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1900
Other assets............................ 0
Total Assets............................ 1900

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Card......................8600......245.......29.9
HSBC Loan......................4600......143.......0
Santander......................5600......125.......29.9
next...........................400.......45........25
family.........................2000......100.......0
Flexi Loan.....................2500......100.......29.9
Egg............................1500......60........29.9
Halifax........................4500......145.......29.9
Total unsecured debts..........29700.....963.......-


Monthly Budget Summary
Total monthly income.................... 3,050
Expenses (including HP & secured debts). 2,086.95
Available for debt repayments........... 963.05
Monthly UNsecured debt repayments....... 963
Amount left after debt repayments....... 0.05

Personal Balance Sheet Summary
Total assets (things you own)........... 1,900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -29,700
Net Assets.............................. -27,800


thanks guys. i belong to the ACCA but i'm to scared to ask.

I've added some comments which I hope you'll find useful!

Perhaps you can call up ACCA anonymously?

Good luck
M

chrissie52

Just found this, but would recommend checking with your professional organisation

http://www.debtmanagementplanforum.co.uk/forum/topic.asp?TOPIC_ID=52

J_Tizzle

rattykay: I am in a similar position to you and am a CeFA/CeMAP-qualified finance worker... We should know better, eh?!

As far as a DMP affecting your job, or other possible roles in the future are concerned, as far as I know it shouldn't be an issue. As a DMP is an informal agreement it shouldn't have a bearing employment-wise. I believe the only 'official' rammification is that you end up defaulting with your creditors and that shows up on your credit record - I'm pretty sure an employer would not be concerned about a default. They are relatively common.

The only way I can see it being a problem is if 'DMP' was listed in the declaration forms you have to sign when starting a new role, but I don't think it does show up - just the more 'official' options such as CCJs and bankruptcy. Hope that helps.

jonjamie1970

Pretty worrying though when I pay an accountant to do my books that they could be struggling to manage their own finances let alone mine :-O

LandyAndy

jonjamie1970 wrote: »

Pretty worrying though when I pay an accountant to do my books that they could be struggling to manage their own finances let alone mine :-O

You don't employ an accountant to manage your finances you employ them for their technical knowledge of accounting and taxation.;)

Tixy

rattykay wrote: »

The added complication is i'm a qualified accountant. i know i should know better but obviously if i get a CCJ or if i end up in an IVA or bankrupt i could lose my job. would a debt management plan affect my job though???

Any advice would be great......:(

Being in a DMP isn't something you need to declare to your employer (assuming you work for an accountancy firm) - it isn't asked on a standard 'fit & proper' form as its an informal agreement.

The potential issue you may have is that on a DMP it is still possible for your creditors to take you to court - if they did and obtained a CCJ against you then you would have to declare this to your employer.
I don't think you would need to declare it to your accountancy body - although if they asked you specifically or if you were making any application for a practising certificate etc then you may need to tell them.
(Although it may vary from body to body and you haven't mentioned which you belong to).

Also remember that anyone can find out if you have a CCJ if they know your name and address so never lie to an employer or professional body etc if specifically asked.

CCJs are not that common under a DMP but they do happen.