OK My SOA

safeashouses

Right, bit of background. Family of 6, Husband was self employed and earning around 35k a year. Business got into trouble and his wage effectively dropped to 9k. Tried to plough money in to save business without success. 30k business debts were incorporated into remortgage and hubby got a new job as full time chef - 20k a year.

Struggled to make the p[ayments on personal debt, then hubby was off sick and we had to live on SSP. Now hubby is well, income is guarenteed but we have the following debts:

MOTHERCARE £275
NEXT £540
HALIFAX CC £1840
HSBC CC £741
VERTBAUDET £224
KAYS £224
MBNA £1588
IKEA £248
LLOYDS TSB CC £1997
ACE £200
FASHION WORLD £200
TESCO CC £250

TOTAL : APPROX £8600 (A COUPLE OF THOSE ARE ESTIMATES SO HAVE ROUNDED UP)

ALSO OWE TAX MAN £100 which will be paid next week with overtime money.

HAVE £1770 OVERDRAFT ON OUR CURRENT A/C BUT HAVE AGREED A DECREASING OVERDRAFT AT £80 A MONTH.

HUSBAND HAS £200 TO PAY OFF AN OVERDRAFT ON ANOTHER ACCOUNT - HAVE AGREED £45 A MONTH.

OK OUR BUDGET:

HUSBAND EARNS BASIC £1250 MONTH (But always has overtime - not including this as not guarenteed so basing budget on base rate, any extra being a bonus)
£625 MONTH from CB and WFTC.

Total: £1875

Mortgage : £625
CT : £91
Water : £18
TSB arrears : £45
Car Insurance : £55 (2 cars)
Buildings Insurance : £14
Car loan : £170 (5m left)
TV license and sky : £30
Broadband :£17 (needed as husband still does some PC repair work)
life insurance :£25
Contents insurance :£14
DMP (In process of being sorted) : £90
Overdraft £80

Total : £1280

Leaves £595 living:

Food: £250 (will prob be less though, I am good at food management!)
gas and elec :£40
car expenses (tax, petrol etc) £90 (although hubby can get some back through work and my parents pay my car tax as car was a gift from them)
kids activities £50
pets £10
phone £20
clothes £40
mobile £10 (although hubby often gets his paid by work)

Leaves £95 (plus overtime money, usually around £200, for any entertainment or unexpected expenses). But hope to save it if possible....

Does this seem realistic?

Thanks for any input!

lynzpower

hi there

right let me have a look at whats gong on here

MOTHERCARE £275
NEXT £540
HALIFAX CC £1840
HSBC CC £741
VERTBAUDET £224
KAYS £224
MBNA £1588
IKEA £248
LLOYDS TSB CC £1997
ACE £200
FASHION WORLD £200
TESCO CC £250

TOTAL : APPROX £8600 (A COUPLE OF THOSE ARE ESTIMATES SO HAVE ROUNDED UP)

ALSO OWE TAX MAN £100 which will be paid next week with overtime money.

HAVE £1770 OVERDRAFT ON OUR CURRENT A/C BUT HAVE AGREED A DECREASING OVERDRAFT AT £80 A MONTH.

HUSBAND HAS £200 TO PAY OFF AN OVERDRAFT ON ANOTHER ACCOUNT - HAVE AGREED £45 A MONTH.

OK OUR BUDGET:

HUSBAND EARNS BASIC £1250 MONTH (But always has overtime - not including this as not guarenteed so basing budget on base rate, any extra being a bonus)
£625 MONTH from CB and WFTC.

Total income : £1875

Mortgage : £625
CT : £91
Water : £18
TSB arrears : £45
Car Insurance : £55 (2 cars) ( do you absolutely NEED 2 cars given you are not working? )
Buildings Insurance : £14
Car loan : £170 (5m left) ( so in 5 ms youll have a spare 170 toi throw at debt)
TV license and sky : £30 ( get rid of sky - looks as if you only have the digi package anyhow which you can get free using a digibox, you can get for about22 quid, maybe cheaper shop around, I know tesco do them )
Broadband :£17 (needed as husband still does some PC repair work) ( there are cheaper, AOL silver is £10.00 - see on internet board)
life insurance :£25 ( checked this is the cheapest?>)
Contents insurance :£14 ( this is high. get both together - i pay 22 for both)
DMP (In process of being sorted) : £90
Overdraft £80 ( do you actually pay this off per month)

Total : £1280

Leaves £595 living:

Food: £250 (will prob be less though, I am good at food management!)
gas and elec :£40
car expenses (tax, petrol etc) £90 (although hubby can get some back through work and my parents pay my car tax as car was a gift from them)
kids activities £50 ( what are these?)
pets £10 ( meaning?)
phone £20 (what sort of phone?)
clothes £40 ( every month?)
mobile £10 (although hubby often gets his paid by work)

Leaves £95 (plus overtime money, usually around £200, for any entertainment or unexpected expenses). But hope to save it if possible....

Does this seem realistic?

Thanks for any input!

Are all the debts being put onto your DMP ?

CLAPTON

who are you organising the DMP with?
why isn't the overdraft include in the DMP.

however in 5 months you will have 170 extra which might mean you dont need a DMP at all.

are the spending figure those recommended by the DMP people or what your estimate of spending?

safeashouses

All excecpt the overdrafts are in our DMP. So we will be paying back our overdraft at £80 a month (agreed rate) and my husband has to pay back £45 a month on his for 4 months. So in 4 months we will have another £45 a month to add on to that, the following month the car loan goes at £170 month.

So basically all the debts I listed at the top are in our DMP - does that make sense?

safeashouses

CLAPTON wrote:

who are you organising the DMP with?
why isn't the overdraft include in the DMP.

however in 5 months you will have 170 extra which might mean you dont need a DMP at all.

are the spending figure those recommended by the DMP people or what your estimate of spending?

The overdraft I agreed seperstely yesterday before doing the DMP - and I really want it gone.

We do need the DMP as we only pay the minimum at best on our debts - so the interest emans they keep rising....

Oh and the budget is based on their advice, but adapted to suit our needs...

robnye

sky - 30 - whats this for?
can you receive freeview signal.....? (20-30 for a box - then free)
which of the debts has the highest percentage

do you have any credit left on either of the credit cards? transfer some of the smaller debts to them as the store/catalogue accounts are likely to be the highest interest rates

£40 for clothes....... miss a month - £40 spare......

lynzpower

MOTHERCARE £275
NEXT £540
HALIFAX CC £1840
HSBC CC £741
VERTBAUDET £224
KAYS £224
MBNA £1588
IKEA £248
LLOYDS TSB CC £1997
ACE £200
FASHION WORLD £200
TESCO CC £250

In a few months you will have 170 from the paid of HP and 80 for the overdraft.

thus you will have a spare 250 a month

eg
month 1 tesco CC gone
month 2 - fashion world gone & 50 to ace
month 3 - ace gone & ikea gone
month 4 - kays gone & spare to mothercare
month 5 - mothercare gone
and so forth

Im not sure you need a DMP at all here

scotsgirl_3

The details of your DMP are a bit fuzzy - who have you arranged it with, and where is the £90 a month going - is this going to pay debts or is the cost of your DMP being managed?

scotsgirl_3

The details of your DMP are a bit fuzzy - who have you arranged it with, and where is the £90 a month going - is this going to pay debts or is the cost of your DMP being managed?

Idiophreak

safeashouses wrote:

Leaves £95 (plus overtime money, usually around £200, for any entertainment or unexpected expenses). But hope to save it if possible....

Just a note, the general advice here is that if you have spare money, debts come first and savings come second.

safeashouses

robnye wrote:

sky - 30 - whats this for?
can you receive freeview signal.....? (20-30 for a box - then free)
which of the debts has the highest percentage

do you have any credit left on either of the credit cards? transfer some of the smaller debts to them as the store/catalogue accounts are likely to be the highest interest rates

£40 for clothes....... miss a month - £40 spare......

Hiya - thanks for your input. We cannot get freeview here - the £30 includes our tv license and a basic sky package.

No credit left on the credit cards, and a bad credit rating so cannot get more...

The clothes - well I doubt we WOULD spend that but I felt I needed some monsy for clothes - 4 children, 4 pairs of shoes, school uniform for 3, a husband who needs chef whites, etc...