OK- here goes - SOA added. Thank youx

keelah

Hi all
Been lurking on this site for months now and have finally pulled my head out of the sand, taken a deep breath and asking for help - please.

Lightbulb moment months ago when I realised how much debt I was in and stopped spending wrecklessly and tried my best to start making a dent in the massive amount of money I owe.

I have managed to have six consecutive months when I have remained within my overdraft limit, avoiding fees and charges from the bank and have stopped buying rubbish on credit cards and store cards.

However, there is so much going out on debt repayments that the cards continue to be used for food and petrol by the end of the month.

I have just taken from The Money Group, who ran me through a load of things to see if they could help.

I am £25,000 in debt from five credit cards and four store cards and two personal loans and am paying nearly £800 a month in repayments. Even if I carry on doing this for the next ten or even twenty years, I will still be in debt!

They have offered me a DMP that would see me paying £400 for the next six years, but I know enough from what I have read on this site that this, my first offer, should not be accepted on the spot, which is what they are pressuring me to do.


I am a mum of a little girl and live with my partner, who stays at home to look after her while I carry the pressure of not only keeping a roof over our heads and food on the table, but also of this mountain of debt, of which he knows nothing and must not know of.

I know a problem shared is a problem halved and he would be there for me all the way and do all he can to help but, at the moment, this is the way I need it to be.

I have always been in debt since my charming ex boyfriend left me with ten grand on a credit card he took out in my name and took the car that I was still paying for as the HP was in my name.

Since then, it has escalated, with that ten grand going on the house, only to then have to be removed from the secured loan into a personal loan due to house prices plummeting and so on.

One of my personal loans is to bridge the gap between what my bank would give me in mortgage and what was outstanding on the mortgage (even after I had knocked ten grand off the balance thanks to a new personal loan).

The other one is for £7,000 from my last lightbulb moment when I decided to clear all debts following the birth of my daughter.

I have gone on to wrack up even more on even more credit cards.

This has to stop.

SOA below

Mortgage - £550
Council Tax - £85
Gas and Electric - £120
Water - £35
TV Licence - £10
Broadband, phone and television - £40
Car Insurance - £40
Home insurance - £30
Life Insurance - £15
Mobile - £10
HSBC personal loan - £77 (£2,000 balance outstanding)
HSBC Flexi loan - £20 (£500 balance outstanding)
HSBC Credit card - £130 (£4900 balance outstanding)
AA personal loan - £150 (6000 balance outstanding)
Capital One credit card - £300 (2000 balance outstanding
Argos storecard - £40 (£900 balance outstanding)
Outfit storecard - £15 (£400 balance outstanding
Next account - £30 - (£250 balance outstanding)
HFC Bank - £21 (£400 balance outstanding
MBNA credit card - £25 (£1000 balance outstanding)
Very - £30 (£600 outstanding)
RBS Credit card - £15 - (£500 balance outstanding)


I bring home, after tax, £2300 a month and also receive £10 a week child credit and £20 a week child support.


I have £100 in the bank and £20 in my purse to last me til payday on Oct 15. the alternator on my car broke last night, I have a speeding ticket to pay and also need to find the money for petrol to drive from wales to london on saturday to see my stepson - oh and I need to feed three of us for the next three weeks!

Argh!

I know I need to take some serious action and this has been confirmed by the call from the Money Group today. BUt I am not prepared to sign up to something for the next six years with an organisation I have never heard of who cold-called me one afternoon!

Please, MSE experts, what do you suggest I do?

sickasachip13

Please, please talk to the CCCS (Consumer Credit Counselling Service) or Payplan. These are charities and will not pressure you into decisions. They will support and help you in making the right decisions for you. They will set up a DMP for you if that's what you decide.

At the top of the DebtFReeWannabee page is a thread that says something like 'Struggling with Debt - As a debt advisor a questions', professional help is at hand there from these charities.

Also, please feel free to check out my blog http://moneyaware.co.uk/2011/09/my-debt-hell/#more-1955

There are two parts to it and it details my decision to go on a DMP with CCCS.

Best of luck.

Tixy

Hi and welcome and well done on deciding to tackle your debts and post.

Firstly - the money group, steer clear, of that £400 a month they would swipe £70 for their fees. If you need a DMP and decide its the best option for you do to one of the charities that would do the same for free, no fees for you to pay. IMPORTANT - Where to seek professional impartial advice about your debts.

Can you redo your statement of affairs using this calculator - http://www.makesenseofcards.com/soacalc.html
it will make sure you include all your outgoings and budget for all essentials (like food etc). Once we see that we can see if a DMP is the right option for you.

Regarding your short terms issues - with food have you checked what is in your cupboards? if you pop over to the oldstyle board here on MSE they should be able to help advise on some really cheap meals plans to stick to for the next 3weeks until you get a better plan in place.
How much is the speeding ticket? how soon does it need paying?
Given the problem with the alternator as well as the petrol cost could you postpone the visit to stepson until after payday?

Pollycat

From The Money Group's website:
Will my creditors continue to pursue me, issue default notices or take recovery action?

It is likely that you will receive default notices from your creditors upon commencement of your plan as the first 2 months’ payments are taken as an initial fee and payments are not made to your creditors.

Ha!
Tixy has beaten me to it, Keelah.

Don't deal with them.

Danni-R

You could also go over to the old style money board as they have loads of advice and threads about feeding familys for very little.

chinkostu

Pollycat wrote: »

From The Money Group's website:
Will my creditors continue to pursue me, issue default notices or take recovery action?

It is likely that you will receive default notices from your creditors upon commencement of your plan as the first 2 months’ payments are taken as an initial fee and payments are not made to your creditors.

Ha!
Tixy has beaten me to it, Keelah.

Don't deal with them.

+1

they cant stop the interest either, so their piddly payments out of the amount go nowhere!

sc85

Definitely call CCCS, My husband and I are in the process of setting up a DMP with them now. They have been fabulous and all the money we send to them each month will be used to pay off our creditors. Granted, it's gonna take some time but it's a realistic way of paying off our £24,000 debt! We have a 6mth old boy and when we had him, that was our lightbulb moment. This just cant go on anymore! I am already feeling better just from seeking the advice & help from this fantastic charity.

Call them. x

keelah

Dear all
Thank you so much for your kind words and wonderful advice. am sitting here with tears rolling down my face as the enormity of the situation I have got myself into suddenly hits me.
I feel completely terrified.
I am a very stoic person and do believe Ihave got myself into this mess and have to get myself out of it, but mindlessly paying £800 a month towards interest on debts is just not working - I have tried for years now and realise it is not the way.
I am also worried re:

I have a mortgage with HSBC currently in a fixed term that is due to end in two years. I will, no doubt, be on a DMP by then. What will happen?I can't go to anotherlender and get a deal from them as I have no equity in the house and am on a DMP.
Can HSBC demand I either pay it all back or take the house?
Or will they allow me to continue to repay it but at sky high interest?

I am also glad my hunch re The Money Group was right. How could theypossibly think they could cold call me and then get me to sign up to something so massive on the spot? I did ask them re their fees and they said it would be 17 per cent a month, minimum of £35 but I can see it also says the same on the CCCS and Payplan websites.
Interesting they told me not to go with the charities when I mentioned it as, according to them, the charities are actually formed by the creditors themselves and,therefore, all they are interested in doing is ensuring every spare penny of money you have goes to the creditors.
They also called me 20!!! times last night, just ringing and ringing to get hold of me!
Thanks again

Tixy

Hi

Regarding your mortgage and on a DMP - you probably won't be able to move to another lender, but HSBC won't make you pay it back, you will either go onto their standard variable rate or they may let you fix again with them.

Regarding CCCS and Payplan, its true that some of their funding somes from the banks themselves as part of their social responsibility policies etc. But certainly in the case of CCCS (which is a charity) the advice they give is absolutely impartial and they will be acting soley in your best interests. Payplan is not a charity but they do offer DMPs with no fees to you (though some of their other services do have fees).
The charities want you to get free as soon as possible but whilst still being able to afford to live reasonably (but not luxuriously).
With places like the money group, its actually in their interest to keep you in debt longer, as they'll earn more from you the longer your DMP lasts.

Hopefully they'll give up calling soon once you've told them you are definitely not interested. If they don't we can give you a telephone harrasment letter to send them.

I know it all seems tough at the moment but the fact that you are ready to tackle things now is a really big step and you will get there.

keelah

Ok, so here is my SOA in all its glory!


To explain, gas and electric are as low as I can get them.
Sky, phone and broadband in one package and I know this is £40 a month but that is £10 a week and we DO NOTHING! We don't go out, hire dvds, have a takeaway or a bottle of wine or go for a meal! Evenings with a cup of tea and ER on Sky Atlantic are my one luxury!
Car insurance is really high thanks to Swinton who I was with, sent me a completely ridiculous renewal quote that I decided not to accept and went with someone else. They then told me they had automatically renewed my insurance because I did not tell them I would not be renewing and offered me either the below insurance price (£69 a month for car, buildings and contents) or a £300 fine!
I have my eye on the calendar and as soon as both policies end they will be changed - reckon I can get car, buildings and contents for maybe £50?
Childcare - now, my partner who is blissfully unaware of what I have done works one day a week with his friend. the little money he earns from this pays for his phone, his gym, his travel to and from work and his two children from a previous relationship. If I was to cover these costs so he does not have to go to work (thus saving childcare) it would be more than £80 a month.
also, our daughter is an only child who does not spend huge amounts of time with others and the playscheme is a great afternoon out for her with lots of otherkids, woodland walks and so on.
finally, the SOA concludes I am only £72 short - but that is still an extra £72 a month needed to keep up with the minumum payments on all credit -meaning I am covering the interest but the mammoth balances remain untouched!

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 0
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 0

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
hfc............................400.......21........0
outfit.........................490.......16........0
rbs............................490.......13........0
argos..........................900.......40........0
next...........................250.......30........0
additions/very.................660.......30........0
mbna...........................900.......25........0
Cap One........................2900......140.......0
Barclay card...................7000......170.......0
aa personal loan...............7000......150.......0
hsbc overdraft...................1500
HSBC credit card..................5000 - 150
hsbc flexiloan........................ 500 - 20
HSBC personal loan............ 2000 - 77

Total unsecured debts..........20990.....635.......-

Monthly Budget Summary
Total monthly income.................... 0
Expenses (including HP & secured debts). 0
Available for debt repayments........... 0
Monthly UNsecured debt repayments....... 635
Amount short for making debt repayments. -635
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,990
Net Assets.............................. -20,990