If you were me - what would you do?

safeashouses

Trying to decide - based on the budget below - whether I need to enter into a DMP or if we can pay off debts ourselves:

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 - need 2nd as hoping to get sessional work and have to have car, parents pay tax and mot for me)
Buildings Insurance : £14
Car loan : £170 (5m left)
TV license and sky : £30 ( reduced deal on sky due to arrears,can cancel in 5m, includes license fee in these figures)
Broadband :£17 (needed as husband still does some PC repair work)
life insurance :£25
Contents insurance :£14
Overdraft £80

Total : £1190

Leaves £685 living:

Food: £200 (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 (These may have to go? feel terrible though as they are very good at them and adore their activities, showing promise too)
pets £10
phone £20
clothes £40 (would try not to spend this BUT have to have some budgeted for school shoes, uniform etc?)
mobile £10 (although hubby often gets his paid by work)

Total: £560

Leaves £225 for debts:

Minimum payments are:

TSB TRUSTCARD £90
VERTBAUDET £11
IKEA £15
HSBC CC £35
NEXT £80
MOTHERCARE £11
KAYS £160 (in arrears so have to pay high amount)
HALIFAX CC £70
ACE £25
TESCO CC £5
MBNA £50
FASHION WORLD £10

approx £560 - £335 over what we have....and that is just minimum payments...

The balances outstanding are:

MOTHERCARE £275
NEXT £540 (apr 26.49%)
HALIFAX CC £1840 (apr 26.75%)
HSBC CC £741 (monthly int 1.86%)
VERTBAUDET £224
KAYS £224 (interest free credit)
MBNA £1588 (monthly int 2.075%)
IKEA £248
LLOYDS TSB CC £1997 (monthly int 1.632%)
ACE £209 (monthly interest 2.2%)
TESCO CC APPROX £245 (Husbands so not sure)
FASHION WORLD £137

If I left the interest blank it is cos I have no statement to hand to check and have toddler asleep on me!

Thats why I think the DMP is best, any further input from anyone?

OberonSH

Well, according to your figures you ned to find an extra £335. You can either reduce our spending, or earn more money. You mention bonuses, how much are these usually? I know you said you don;t count them, but it's still money in. What's the lowest it's been?

Can you ebay anything to take lump sums off? Some of your debts are a couple of hundred, a good clearout could sort one of those out.

How about taking up a paper round, delivering leaflets etc? You could take the kids with you. An ironing service pays well so I'm told.

£335 is just under £84 a week. That's certainly doable, if you're willing to put the effort in.

I'm sure someone will be along to see if a DMP wouldtake you on.

immoral_angeluk

Seeing as a lot of your debts are small amount I'd be tempted to find the money and pay them off as and when you can rather than doing a dmp...

Storm

Looking at your figures I would initially say a DMP with CCCS or PayPlan - however, how much overtime does your hubby get as a rough guide?

Some of these debts are relatively small amounts, and the Kays one where you're currently paying £160 a month is only £224, so will be gone very soon.

If he's got a couple of good overtime months coming I think you may well be able to clear that one completely and possibly a couple of the smaller ones like Fashion World in the next couple of months, so it might be worth looking again at that point. Also just noticed that you've got a car loan that's finishing in 5 months, which will free up £170 a month.

From your SoA - what's the Overdraft £80 for - is this paying back or fees?
Food can be cut down from £200 probably - how many is this feeding?

Some people on here have set up their own DMPs - so you could always ring your creditors and talk to them - see if they'll reduce or free interest for a while/accept lower payments so you can clear others quickly.

Bestthingsinlifearefree

You need to close the gap so you are paying at least the minimum payments
otherwise you will be falling further into debt.

Is it possible to shift the debt onto lower rates of interest, as some of the interest rates are extortionate.

If you can not close the gap and make the minimum payments then a debt payment plan seems like the way forward.

safeashouses

OberonSH wrote:

Well, according to your figures you ned to find an extra £335. You can either reduce our spending, or earn more money. You mention bonuses, how much are these usually? I know you said you don;t count them, but it's still money in. What's the lowest it's been?

Can you ebay anything to take lump sums off? Some of your debts are a couple of hundred, a good clearout could sort one of those out.

How about taking up a paper round, delivering leaflets etc? You could take the kids with you. An ironing service pays well so I'm told.

£335 is just under £84 a week. That's certainly doable, if you're willing to put the effort in.

I'm sure someone will be along to see if a DMP wouldtake you on.

Hi - his overtime is anything between £20 and £200 - generally about £80 ish and heis self employed too and can usually get about £50 a month from thta, so nothing huge.

Nothing left to ebay - have cleared the house totally. Only odd items thta will bring in a few quid that is all.

There are no paper rounds in the village, Ive tried that ,and my friend runs an ironing firm so nothing going there

I have been offered a DMP from CCCS, just not sure whether to go for it you see.

safeashouses

immoral_angeluk wrote:

Seeing as a lot of your debts are small amount I'd be tempted to find the money and pay them off as and when you can rather than doing a dmp...

That has always been our intention but we just never make minimum payments so things get bigger I suppose

icklejulez

why dont you offer to join your friend and increase the workload, you can offer to do the marketing yourself in your own area and increasing the size of her business. Could be doing her a favour. Also dog sitting, dog walking, paper rounds. Taking local kids to school and picking them up(as someone has said before you may need to become a childminder but this is fairly cheap and easy to do). If you thik to our self that you can clear your debts in 6 months with 6 months hard work. Also why have you alot of clothes accounts if you budget for clothes. Clear the amounts and close the accounts then perhaphs your bank will offer you a 0% card.

safeashouses

Storm wrote:

Looking at your figures I would initially say a DMP with CCCS or PayPlan - however, how much overtime does your hubby get as a rough guide?

Some of these debts are relatively small amounts, and the Kays one where you're currently paying £160 a month is only £224, so will be gone very soon.

If he's got a couple of good overtime months coming I think you may well be able to clear that one completely and possibly a couple of the smaller ones like Fashion World in the next couple of months, so it might be worth looking again at that point. Also just noticed that you've got a car loan that's finishing in 5 months, which will free up £170 a month.

From your SoA - what's the Overdraft £80 for - is this paying back or fees?
Food can be cut down from £200 probably - how many is this feeding?

Some people on here have set up their own DMPs - so you could always ring your creditors and talk to them - see if they'll reduce or free interest for a while/accept lower payments so you can clear others quickly.

Hiya, overtime will be low now as he is a chef and these arequiet months so we need to work on basic income I think.
The 80 a month is paying off overdraft - we agreed a decreasing one.

I hadn't thought of ringing creditors myself - is there a thread that has any details on who may be open to a deal with me?

safeashouses

Storm wrote:

Looking at your figures I would initially say a DMP with CCCS or PayPlan - however, how much overtime does your hubby get as a rough guide?

Some of these debts are relatively small amounts, and the Kays one where you're currently paying £160 a month is only £224, so will be gone very soon.

If he's got a couple of good overtime months coming I think you may well be able to clear that one completely and possibly a couple of the smaller ones like Fashion World in the next couple of months, so it might be worth looking again at that point. Also just noticed that you've got a car loan that's finishing in 5 months, which will free up £170 a month.

From your SoA - what's the Overdraft £80 for - is this paying back or fees?
Food can be cut down from £200 probably - how many is this feeding?

Some people on here have set up their own DMPs - so you could always ring your creditors and talk to them - see if they'll reduce or free interest for a while/accept lower payments so you can clear others quickly.

Hiya, overtime will be low now as he is a chef and these arequiet months so we need to work on basic income I think.
The 80 a month is paying off overdraft - we agreed a decreasing one.

I hadn't thought of ringing creditors myself - is there a thread that has any details on who may be open to a deal with me?

safeashouses

Storm wrote:

Looking at your figures I would initially say a DMP with CCCS or PayPlan - however, how much overtime does your hubby get as a rough guide?

Some of these debts are relatively small amounts, and the Kays one where you're currently paying £160 a month is only £224, so will be gone very soon.

If he's got a couple of good overtime months coming I think you may well be able to clear that one completely and possibly a couple of the smaller ones like Fashion World in the next couple of months, so it might be worth looking again at that point. Also just noticed that you've got a car loan that's finishing in 5 months, which will free up £170 a month.

From your SoA - what's the Overdraft £80 for - is this paying back or fees?
Food can be cut down from £200 probably - how many is this feeding?

Some people on here have set up their own DMPs - so you could always ring your creditors and talk to them - see if they'll reduce or free interest for a while/accept lower payments so you can clear others quickly.

Hiya, overtime will be low now as he is a chef and these arequiet months so we need to work on basic income I think.
The 80 a month is paying off overdraft - we agreed a decreasing one.

I hadn't thought of ringing creditors myself - is there a thread that has any details on who may be open to a deal with me?