My debt - this doesn't look good

i_am_debt

every month we get charged by our bank and they threaten to close our account every month as well.
The payment to CCCS is a DMP, i always wonder if i am shooting myself in the foot by not doing an IVA, but that seems too scary would feel like a complete failure if that happened, stupid i know.

i just want to provide for my family and get us out of the problem that we are in which is mainly due to being underpaid and overworked but apart from that it was my previous spending habits.

the only info that is missing is that i am self employed on a part time basis, it is very hit and miss (if i could get it to launch i could support us easily) and it only just about covers its own outgoings (insurance etc).

sorry for going on, any thoughts would be good.

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.................... 2
Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 500
Benefits................................ 170
Other income............................ 0
Total monthly income.................... 1970
Monthly Expense Details
Mortgage................................ 520
Secured/HP loan repayments.............. 210
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 50
Gas..................................... 20
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20
Mobile phone............................ 40
TV Licence.............................. 11
Satellite/Cable TV...................... 22
Internet Services....................... 0
Groceries etc. ......................... 280
Clothing................................ 15
Petrol/diesel........................... 200
Road tax................................ 34
Car Insurance........................... 75
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 77
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 0
Life assurance ......................... 11
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
CCCS.................................... 184
Total monthly expenses.................. 2004

Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 127000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 99000....(520)......7
Secured Debt.................. 10000....(210)......7
Total secured & HP debts...... 109000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard....................300.......20........30
mbna...........................360.......20........30
Total unsecured debts..........660.......40........-

Monthly Budget Summary
Total monthly income.................... 1,970
Expenses (including HP & secured debts). 2,004
Available for debt repayments........... -34
Monthly UNsecured debt repayments....... 40
Amount short for making debt repayments. -74
Personal Balance Sheet Summary
Total assets (things you own)........... 127,000
Total HP & Secured debt................. -109,000
Total Unsecured debt.................... -660
Net Assets.............................. 17,340
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser.

thefoolonthehill

why do you pay cccs for a dmp and have debts with barclaycard & mbna?

allydowd

i_am_debt wrote: »

Mobile phone............................ 40

Petrol/diesel........................... 200

Can you get a better deal on your mobiles? Try here for ideas:
http://www.moneysavingexpert.com/utilities/

Also, can you get your petrol cheaper by using the cheapest petrol station?
http://www.petrolprices.com/

i_am_debt

Thefoolonthehill: because they were small i forgot about them, now if i turn to them and tell them i will look really stupid and they have been really nice so far.

allydowd: i have an iphone which i use for my work (i am only paying £30 per month) i need a phone with emails and this is one of the cheapest.
petrol: i drive 30 miles a day minimum and all our relatives live a long way from us and some don't drive, they also don't give us petrol money.

needingaccountability

Do you not get Tax Credits?

i_am_debt

we get child benefit (£137) and tax credits (£40). income low as we have 2 children, one is only a month old so wife is on maternity leave and probably won't be going back due to externtionate child care costs.

rachbc

If your wife is on mat leave why are you paying £77 p/m childcare - if you cut that you'd at least be even. Do you have any thing you could ebay etc in the short term to clear the small cc balances and get them out of the way? If your wife isn't going back to work could you cut down to one car?

pure_dead_dopey

Hi

You should have put all you debts into the DMP, I really think you need to speak again to CCCS and have a review so that you can manage to live. A DMP is not supposed to be a punishment and you need to live or it will ultimately fail. If you stick those two small debts in it will free up more money because you are paying a disproportionate amount of money for the amount you owe. DMPs usually work on the basis that all debts go in. You could probably cut some off the food budget but it is getting more difficult as prices are going up, same with fuel. and don't worry CCCS won't think you're stupid at all, it in their interests for the DMP to work so give them a ring and rework the figures. I would also check your benefits, are you sure you are claiming everything you are due?
Good luck, it will be oK, this is the worst bit, getting it all sorted, remember its only money and they can't take what you haven't got!

DevonGirl

i_am_debt wrote: »

Thefoolonthehill: because they were small i forgot about them, now if i turn to them and tell them i will look really stupid and they have been really nice so far.

petrol: i drive 30 miles a day minimum and all our relatives live a long way from us and some don't drive, they also don't give us petrol money.

Hey IAD

Personally I've always found CCCS really sympathetic but knowledgeable and fair at the same time. Would it be worth giving them a ring and explaining that you left 2 cc debts out of the equation? For the sake of feeling a little silly, they may be able to find a way to sort it out and get rid of the extra stress for you.

With regards to the petrol money, again, could you be brave and say to relatives that you're a bit stretched at the moment, what with the increase in living costs that the whole country is dealing with, and that either a) you might have to visit them less or b) could they give you a few quid for petrol especially if you are going there to support elderly relatives or helping out those with young children, for example.

Sorry - hope this doesn't sound too harsh - I don't want to tell you how to live your life, but just wonder if you could be brave in these 2 areas to make life a bit nicer for yourself. After all, you only get one life and you don't want to be unhappy. Surely the point of dealing with your debts with CCCS is that it can all be lumped together and handled by them?

Regarding IVAs, again, suggest speak to CCCS as they are the experts. It's a much more complicated and serious process than DMP, and could involve any property you own, and (in the past at least) your name got put on the Individual Insolvency Registrar which is available for anyone to see online. On the plus side, I think they only last a certain number of years and some of the debt gets written off (please note - I'm not sure of the finer details, maybe look over on the IVA/DRO thread).

I really hope that things get better for you

DG

i_am_debt

i will try and get everyone on this reply.

i will speak to CCCS and get the other two CC's in there, i need to try and reduce the payment anyway.

we are paying for 2 days a week childcare to give my wife a break as she is finding it hard to cope with a toddler as well as a new born and nursery is so good for her development as well.

we may drop a car soon but at the moment she needs it to ferry the kids around, also, i need to get my car taxed at lunchtime which is £112 for six months when i know i haven't got enough money for the month anyway.

DEVONGIRL - that is not too harsh and sometimes harsh is the best way to be

and yes, i will speak to (mainly the inlaws) and try and get them to contribute to the petrol, it cost £18 for the round trip.

thanks for all your support so far. :T

Tixy

i_am_debt wrote: »

i will speak to CCCS and get the other two CC's in there, i need to try and reduce the payment anyway.

You say you are being charged by the bank as well each month? is that account overdrawn as well, if so it should also be included in the DMP.

Explain to CCCS that these are not debts incurred since you went on your DMP (which is against the DMP) but ones you didn't include to start with. Hopefully they will allow you to recalc the DMP to include them and to recalc your monthly payment.