15K DEBT - READY FOR DMP but advice needed...SOA included

berylcrow

Husband is self employed but was totally scammed by a total swine and not payed 13k we were expecting this year - he earns bits and bobs now but that all goes to paying his card off - which he used to pay for various one offs - like new tyres last week, gulp.

Anyway - I am gradually being swallowed up by debt and desperate to find a way to manage it - spoke to PayPlan - beware of IVAs all - you are giving up all the equity in your house in year 4 - so the "all over in 5 years" line is just a lie! You could end up paying much more than the original debt!

Now seriously considering DMP - but am bothered by my HP purchase - with Hitachi Finance for a sofa - we have 750 to pay - have paid 1250 already - my consultant said they would not accept DMP terms - does this mean we just can carry on paying for it - or do we have to stick to DMP and therefore risk repossession - I would happily keep on paying to be honest - its the interest min payment cape, never denting the debt that is killing us... I haven't listed card rates as I have found it almost impossible to work them out from statements - the intro rates are over for all but 1000 balance transfer - this I know.

My income is higher than it's ever been - but my tax credits have almost disappeared -so my promotion has actually made me worse off - and am liable for all the dental and optical prescirption charges too now. Nightmare: need to wake up quick - advice please??

BTW Petrol is unavoidable - 40mile round trip to work each day; mother in law disabled and lives 60 miles away

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1672.77
Partners monthly income after tax....... 100
Benefits................................ 268.13
Other income............................ 0
Total monthly income.................... 2040.9

Monthly Expense Details
Mortgage................................ 640
Secured/HP loan repayments.............. 42.67999999999995
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124
Electricity............................. 98.8
Gas..................................... 110
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 11
Mobile phone............................ 62
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 18
Groceries etc. ......................... 400
Clothing................................ 30
Petrol/diesel........................... 300
Road tax................................ 18
Car Insurance........................... 43
Car maintenance (including MOT)......... 41
Car parking............................. 0
Other travel............................ 24
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 0
Buildings insurance..................... 13
Contents insurance...................... 0
Life assurance ......................... 19
Other insurance......................... 3
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2144.48


Assets
Cash.................................... 0
House value (Gross)..................... 191000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 195000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 181000...(640)......4.24
Hire Purchase (HP) debt ...... 780......(42.68)....0
Total secured & HP debts...... 181780....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CREDIT CARD....................1627......26........0
CREDIT CARD....................1742.82...29........0
CREDIT CARD....................2998.47...60........0
overdraft......................660.......0.........0
loan...........................6117......153.......0
CREDIT CARD....................1238.64...0.........0
Total unsecured debts..........14383.93..268.......-


Monthly Budget Summary
Total monthly income.................... 2,040.9
Expenses (including HP & secured debts). 2,144.48
Available for debt repayments........... -103.58
Monthly UNsecured debt repayments....... 268
Amount short for making debt repayments. -371.58

Personal Balance Sheet Summary
Total assets (things you own)........... 195,000
Total HP & Secured debt................. -181,780
Total Unsecured debt.................... -14,383.93
Net Assets.............................. -1,163.93

prettypaula

your gas and electric are huge... are u paying off arrears?

your water is also high...

groceries are low for 4 kids but are u being accurate?

berylcrow

Gas and Electric are what we spend - draughty old house, crappy old boiler, people in all day - latest deal via USWITCH - this i actually a big improvement on last lot!
I make kids use blankets in living room, keep it turned down - still loads - generally the companies build a big surplus over the summer from us - but have changed 4 times in three years and always the same!

berylcrow

groceries are as a result of ALDI and stretching meals out - I took figures from last month's spends - days of Tesco are over, crazy prices!

RAS

The situation with the HP is that they can take it back unless all payments are made. Since you have paid more then half, you can either return it and have nothing more to pay, or keep paying until it is cleared and them increase your payments to the other creditors.

I understand you are in a big draughty house, but you cannot afford those sort of utility costs. Somehow you need to get more draught proofing and insulation in and keep one or two rooms warm only during the day. See what you can find in the pound shops and get OH doing what he can before the winter really starts. Go DIY id necessary - draught excluders can be made from bits of carpet etc. Go over to the Old Style fiorum and look up Preparing for Winter - I think it is on thread three now.

With respect to groceries, you are within the limit for a dmp, but folk here reckon on £60 per adult, maybe a little more with recent increases. So you can cut back to make a bit of slack to cover other costs.

In the end do you want to be in debt for 6-8 years or 10? That is the question. Once you decide, you can take what action you need to acheive it.

Niv

Is there any way your hubby can earn more money?

Looking over your monthly outgoings it does not look like you are massively overspending which makes reducing these outgoings quite hard. But below is my attempt:
Mobile phones: £60 - Can this be reduced? You have a landline afterall
Gas/electricity: Dont give up with insisting kids use a blanket in the living room etc. Do you have energy saving lightbulbs? Can the kids share bath water? Can you reduce the times the heating coms on? Say delay the on time by 1 hour and turn heating off 1 hour before bedtime?
Internet: £18 Can this be reduced? there are cheaper dealsout ther but I dont know if hubby needs this for his business?

How long is your mortgage term? Can you extend it to say 30years? This would reduce the monthly (but would increase the total cost).

To try and raise a few extra quid could you e-bay un wanted stuff? Old childs cloths, toys etc? Kids grow out of 'things' so quickly these days there may be tonnes of stuff laying around that has a resale value.

Good luck!

Niv

berylcrow

all good advice - we are draft proofed - the water is Severn Trent and a monopoly - nowt can be done there!
Hubby is trying to earn more but has his own debt to pay; mobiles are locked in, one for a 15yr old and was part of her xmas /bday pressie... mine will be up in a couple of months but is only 15 of it...
Internet is needed for business ...
These are my debts an I want to pay for them, in for the long haul.. 30 yr mortgage is unlikely as I am in my 40s, current one is interest only and, frankly, we were lucky to get one in the first place - never missed any payments on anything by the way - just will soon if I don't do something!!

berylcrow

The situation with the HP is that they can take it back unless all payments are made. Since you have paid more then half, you can either return it and have nothing more to pay, or keep paying until it is cleared and them increase your payments to the other creditors.

But can I keep paying if I am on a DMP?
And, on a DMP can the creditors simply demand their money back at any time?
My brain is totally frazzled with all this!

mildred1978

How are you going to pay for the house at the end of the mortgage term? Would renting elsewhere be cheaper all round?

BevieB

We started our DMP in October with CCCS. They allowed us to continue paying the full amount for our HP with BlackHorse. Hope this helps.