Should I jump? SOA inc

mummyofboys

Hi

I am having massive panic and worries over whether to jump and do a DMP... I have been struggling to pay for minimum payments and if I do it leaves me with money being cut down on shopping ( food) going without basics in clothes ect. If something pops up like school uniforms ect which has just cost me 65 then it sends the budget into chaos. I am a student nurse starting in September so these figures include what i will be getting.

CCCS SAID THEY DONT COUNT STUDENT LOAN OR CHILDCARE BURSARY INTO INCOMINGS AS THERE NOT ALLOWED?

1089.00 Husband Salary
384.50 child tax credits
333.00 nhs bursary
349.50 childcare bursary
293.00 Student Loan
160.00 work
134.50 child benifit

= £2743.50

OUTGOINGS IF I DONT DO CCCS

£858.50 NURSERY

£550.00 RENT

£300.00 ASDA (INCLUDING CATFOOD/CLEANING/NAPPIES)

£140.00 ( TWO CARS ONE OURS-I USE ONE COMPANY WHICH ONLY PAY PETROL FOR HUSBAND USES)

£85.50 CAR INSURANCE ( I am a new driver under 25,husband under 25 both insured 1.6 car)

£100.00 Min Payment on husbands credit card

£86.00 Council Tax

£55.00 Gas

£55.00 elec

£54.00 Min payment littlewoods husbands

£50.00 water payment ( includes arrears)

£50.00 minumum payment my credit card

£40.00 overdraft intrest mine

£37.00 Littlewoods min payment mine

£30.00 account charge for bank to save more intrest on accounts

£30.00 loan repayment mine

£30.00 minumum payment capital one credit card mine

£30.00 home phone/ internet

£27.77 HMRC tax credits over payment

£27.00 Isme catalogue min payment mine

£24.00 contents insurance

£22.00 wage protection insurance husband (sickness, redundancy)

£20.00 husbands football ( £5 a week)

£20.00 car maintenance

£20 Car tax

£20.00 xmas/bday

£10.00 mobile phone

£14.00 sons dance class ( £3.50 a week)

£12.12 tv license

=£2797.89

-£54.38

So as you can see I could prob cut back and find the £54 however this budget doesnt include things such as clothes/ haircuts/ entertainment/random things breaking down so if anything like this happens I try and pay for it out of the asda fund however it often sends me into missing payments and getting charged. If i go with a debt Managment plan I was hoping I would actually get somewhere as they said they could stop intrest although from reading I dont know how likely this is and is it likely to make my situation worse?

If I go on dMP they said my debt repayments would be £100.00 as after everything ( they dont include income from loans or childcare) I would only have this left when in fact I would have £398.00 in debt repayments reduced to £100.00 (see below) This would mean I would have £298.00 left minus the £55.00 deficet sp? would leave me with £243 which I was then planning on saving and eventually making some full and finals

£100.00 Min Payment on husbands credit card

£54.00 Min payment littlewoods husbands
£50.00 minumum payment my credit card

£40.00 overdraft intrest mine

£37.00 Littlewoods min payment mine

£30.00 account charge for bank to save more intrest on accounts

£30.00 loan repayment mine

£30.00 minumum payment capital one credit card mine
£27.00 Isme catalogue min payment mine
I have set up a new bank with natwest whom have still given me debit card ect which is good. I am just really worried because my overdrafts are currently being payed the intrest so as soon as I stop I know lloyds are going to whack on loads of charges and im worrying about making my debt worse

Does anyone have any ideas? Sorry such a long post.

Debts are

£4400 hmrc overpayment £27.77 (dmp said they would keep me paying this so not included in dmp )

£1900 husbands credit card with lloyds

£750.00 overdraft joint with lloyds

£2340.00 overdraft with lloyds my own

£250.00 loan with lloyds mine

£800.00 credit card halifax mine

£300.00 capital one credit card mine ( was 200 but added intrest)

£400.00 littlewoods mine

£700.00 littlewoods husbands

£600.00 isme catalogue

HappyMJ

Personally I'd try and find the £54.38 per month. It will leave your credit rating clean and when you start work properly next year you'll fly through the repayments in no time. If you ever intend to purchase a house together within the next 6 years you will need a squeaky clean credit history to get the best rates. Are you able to lower the interest rates on the loans and credit cards without taking on further debt and without missing any repayments? I notice you are not getting housing benefit. Although you as a student aren't eligible for it your husband and kids may be. So I'd see if the council will pay something towards your rent.

You nursery expenses are quite high. I'd see what other options are available to you to reduce that. Does the college not have a subsidized facility for the children?

And my final option is to get rid of a car...even if it's only for a year. Get lifts from hubby it might involve waiting around a bit more but it will save quite a bit.

mummyofboys

yes they only pay the money in my incomings though

I wont be working next year? I am starting a student nurse degree in september for three years so this is my income/outgoings till then ..

I think my childcare is average around here I was looking at childminders but seem to be only a coupld of pounds cheaper which is madness

mummyofboys

i think my credit file is pretty screwed right now already

HappyMJ

mummyofboys wrote: »

i think my credit file is pretty screwed right now already

Think??...That's not good. Get a credit report and know it'll only cost £2 for each of you... If it really is screwed as you say then go for it. Not much can be saved if it's already full of defaults. I was just thinking reduce expenses as much as possible and then stay like that when you are working and you'll be better off in the long run. But as this is to be for 3 years then could go either way really.

mummyofboys

my experien account just says I have one default that is satisfied. It is showing late payments on the account history though?? Bit confused as to when it gets declared as a default?

HappyMJ

mummyofboys wrote: »

my experien account just says I have one default that is satisfied. It is showing late payments on the account history though?? Bit confused as to when it gets declared as a default?

1 default which is settled is not that bad. Late payments will be ignored after the 3 years of making them on time. I certainly would not say your credit file is screwed. It actually looks reasonable. Mine is loads worse but is actually OK. I have an old CCJ, 2 current defaults and several late payments.

The get declared as a default usually 3-6 months after you stop making payments. So you'll get a marker saying 1 then 2 then 3 sometimes up to 5 then it'll switch to a D. Or in my case of the late payments on an unenforceable credit agreement it will just read 6 forever. I think on mine the number of credit accounts at 24 is worse than than the other bits.

mummyofboys

ok thankyou... starting to think maybe I should try and battle on? I just worry though because a dmp shows me the end of the tunnel with intrest... Im scared I will have made no dents in my debt at all at this rate..

josephine82

I've rearranged things slightly just to make it clearer- at the bottom.

Can you reduce your spending on:

- car- is this on HP? Can you sell and get a cheaper car?
ASDA- you don't say how many people this is for though.
-contents insurance- have to looked around for a price? I only pay £11 a month with direct line.
- Gas and electric- can you switch to get a better deal?
- home phone and internet- you must be able to get this cheaper than £20.00 -again have you looked around?
- xmas/bday- £20 a month is £240 a year which you could be paying off your debt, you might have to start not buying presents for anyone apart from children and really limiting what you spend here.

I'm not 100% sure you are going to find enough just to break even or to make any savings to pay off your debts faster.

I'm not an expert on DMP but this might be the way to go. Certainly there is no guarantee that interest is stopped but from what I've read on here it does happen, so you never know!


Family outgoings
£858.50 NURSERY
£550.00 RENT
£300.00 ASDA (INCLUDING CATFOOD/CLEANING/NAPPIES)
£140.00 ( TWO CARS ONE OURS-I USE ONE COMPANY WHICH ONLY PAY PETROL FOR HUSBAND USES)
£85.50 CAR INSURANCE ( I am a new driver under 25,husband under 25 both insured 1.6 car)
£24.00 contents insurance
£86.00 Council Tax
£55.00 Gas
£55.00 elec
£50.00 water payment ( includes arrears)
£30.00 home phone/ internet
£12.12 tv license
£10.00 mobile phone
£20.00 car maintenance
£20 Car tax
£20.00 xmas/bday

£20.00 husbands football ( £5 a week)
£22.00 wage protection insurance husband (sickness, redundancy)
£14.00 sons dance class ( £3.50 a week)

DEBTS
£100.00 Min Payment on husbands credit card
£54.00 Min payment littlewoods husbands
£50.00 minumum payment my credit card
£40.00 overdraft intrest mine
£37.00 Littlewoods min payment mine
£30.00 account charge for bank to save more intrest on accounts
£30.00 loan repayment mine
£30.00 minumum payment capital one credit card mine
£27.77 HMRC tax credits over payment
£27.00 Isme catalogue min payment mine
=£2797.89

-£54.38

mummyofboys

[STRIKE][/STRIKE]

josephine82 wrote: »

I've rearranged things slightly just to make it clearer- at the bottom.

Can you reduce your spending on:

- car- is this on HP? Can you sell and get a cheaper car? No its worth about £1000 and not on hp
ASDA- you don't say how many people this is for though. 2 adults, 1 cat, 2 children -one is in nappies
-contents insurance- have to looked around for a price? I only pay £11 a month with direct line. will have a look around
- Gas and electric- can you switch to get a better deal? I have recieved similar quote which I dont get my house is small!
- home phone and internet- you must be able to get this cheaper than £20.00 -again have you looked around? Will do
- xmas/bday- £20 a month is £240 a year which you could be paying off your debt, you might have to start not buying presents for anyone apart from children and really limiting what you spend here. Yes I see your point, however I have a massive family who are all very generous find this the most difficult to stop

I'm not 100% sure you are going to find enough just to break even or to make any savings to pay off your debts faster.

I'm not an expert on DMP but this might be the way to go. Certainly there is no guarantee that interest is stopped but from what I've read on here it does happen, so you never know!


Family outgoings
£858.50 NURSERY
£550.00 RENT
£300.00 ASDA (INCLUDING CATFOOD/CLEANING/NAPPIES)
£140.00 ( TWO CARS ONE OURS-I USE ONE COMPANY WHICH ONLY PAY PETROL FOR HUSBAND USES)
£85.50 CAR INSURANCE ( I am a new driver under 25,husband under 25 both insured 1.6 car)
£24.00 contents insurance
£86.00 Council Tax
£55.00 Gas
£55.00 elec
£50.00 water payment ( includes arrears)
£30.00 home phone/ internet
£12.12 tv license
£10.00 mobile phone
£20.00 car maintenance
£20 Car tax
£20.00 xmas/bday

£20.00 husbands football ( £5 a week)
£22.00 wage protection insurance husband (sickness, redundancy)
£14.00 sons dance class ( £3.50 a week)

DEBTS
£100.00 Min Payment on husbands credit card
£54.00 Min payment littlewoods husbands
£50.00 minumum payment my credit card
£40.00 overdraft intrest mine
£37.00 Littlewoods min payment mine
£30.00 account charge for bank to save more intrest on accounts
£30.00 loan repayment mine
£30.00 minumum payment capital one credit card mine
£27.77 HMRC tax credits over payment
£27.00 Isme catalogue min payment mine
=£2797.89

-£54.38

Thanks for your help- I just am really confused as to whether to ring up and get lower payments effectively making my outgoings smaller but then getting nowhere on the intrest

HappyMJ

mummyofboys wrote: »

Thanks for your help- I just am really confused as to whether to ring up and get lower payments effectively making my outgoings smaller but then getting nowhere on the intrest

It's always worth ringing up saying that you are in dire financial need of assistance. Say if they don't offer to lower rates then you'll have to choose to go onto a DMP and then they would eventually end up with zero extra interest. They may offer to lower the interest rate to a more manageable rate without going into default which to you would be great and they should be happy that they are getting their money.

How much debt are you in exactly? Can you repost your SOA in the MSE format with amounts outstanding and the approximate interest rates?