Need Help with my Debts - Also work in Finance

banks4u

Dear All I was wondering if someone could help.
Basically I have the following debt-
Natwest Loan - £3800 it was £24,400 - Pay £362
Halifax Loan - £3200 it was £10,000 - £150
Halifax Loan - £3000 it was £4400 - £90
Student Loan - £9000 - £110

As well as small credit cards.

Basically I share a mortgage with my family member and he lost his job a year ago and have just moved jobs. I work in a big Bank now, but I am not FSA registered. I can't afford to keep up the above payments and am considering payplan. I have heard they are quite good and my friend is also on Payplan and he has just recently been accepted for a new credit card.

A few questions,
1. As I work in finance would me going into a debt programe be a big issue?
2. can I consolidate my student loan into Payplan? I heard you might be able to.
3. HOw will it affect my credit rating? But asking this, my credit rating is poor at the moment, even though I am never late on my payments.

Can someone please help, also what kinda payment should I expect a month from the above. As I would like to pay as little as possible.

I appreciate all your help.

MrsTinks

banks4u wrote: »

I have heard they are quite good and my friend is also on Payplan and he has just recently been accepted for a new credit card.

A few questions,
1. As I work in finance would me going into a debt programe be a big issue?
2. can I consolidate my student loan into Payplan? I heard you might be able to.
3. HOw will it affect my credit rating? But asking this, my credit rating is poor at the moment, even though I am never late on my payments.

Can someone please help, also what kinda payment should I expect a month from the above. As I would like to pay as little as possible.

I appreciate all your help.

First - once you are on a DMP it is against the DMP agreement to take out any further credit - that includes credit cards!

1- yes it can be a big issue - I would suggest you check your employee handbook and if necessary discuss this with your HR department. Depending on the nature of your job and contract this could be a serious problem.

2 - sorry not sure - hopefully someone else will be able to tell you.

3 - by entering a DMP you will default on your debts and defaults will be on your file for 6 years - unless you can manage to settle them they will have a SEVERE impact on your likely chances of getting credit or re-mortgaging for the foreseeable future.

As for how much you're likely to end up paying... well that really is down to your income and what bills you have - it's not a set % of your debt per month - it's what is left after your basic outgoings. If you post up your SOA we can give you a good idea of if a DMP is the way forward or if there are areas you can cut back on.

~Beanie~

1 - It probably will be, depends on your employer
2 - No idea, sorry. Someone else may know the answer to that
3 - It will trash your credit rating as your file will show arrangements to pay with all your creditors. You may also get defaults against you.

No-one can say what kind of payment you can expect per month from the above, it doesn't go on how much you owe. All your incoming are counted, your outgoings are added up (essential living costs etc) and then whatever is left over each month, you would be expected to pay to share between your creditors.

banks4u

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 869
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 75
TV Licence.............................. 0
Satellite/Cable TV...................... 51
Internet Services....................... 50
Groceries etc. ......................... 100
Clothing................................ 30
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 60
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 134
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1659

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 251000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(869)......5.24
Total secured & HP debts...... 180000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................3600......365.......6.1
Loan...........................3200......150.......6.1
Loan...........................3500......90........9.1
Credit Card....................2200......55........0
Credit Card....................1600......18........0
Credit card....................300.......10........0
Total unsecured debts..........14400.....688.......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,659
Available for debt repayments........... 91
Monthly UNsecured debt repayments....... 688
Amount short for making debt repayments. -597
Personal Balance Sheet Summary
Total assets (things you own)........... 251,000
Total HP & Secured debt................. -180,000
Total Unsecured debt.................... -14,400
Net Assets.............................. 56,600


also My mum who is on pension credits at the moment pays for the Utilities only because I can't afford too.

MrsTinks

banks4u wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 869
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 75 Way too high - you need to cancel this or drop the tariff down.
TV Licence.............................. 0
Satellite/Cable TV...................... 51 Cancel this
Internet Services....................... 50 WHOA! This can be reduced severely.
Groceries etc. ......................... 100
Clothing................................ 30 Make do with what you have for a few months.
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 60 check you can't get this cheaper
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 134
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50 You could reduce this by £10 or £20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1659

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 251000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(869)......5.24
Total secured & HP debts...... 180000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................3600......365.......6.1
Loan...........................3200......150.......6.1
Loan...........................3500......90........9.1
Credit Card....................2200......55........0
Credit Card....................1600......18........0
Credit card....................300.......10........0
Total unsecured debts..........14400.....688.......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,659
Available for debt repayments........... 91
Monthly UNsecured debt repayments....... 688
Amount short for making debt repayments. -597
Personal Balance Sheet Summary
Total assets (things you own)........... 251,000
Total HP & Secured debt................. -180,000
Total Unsecured debt.................... -14,400
Net Assets.............................. 56,600


also My mum who is on pension credits at the moment pays for the Utilities only because I can't afford too.

You need to look at selling that property or renting it or some rooms out... you can't afford it on your own.
Speak to payplan or one of the other free debt charities in my signature and ask them what the allowances are - the issue you might have is your job and that there is significant money in the property you own. There is a good chance the creditors will see that and go for CCJs and then try and get the debts secured against the property...

wannabee_in_credit

banks4u wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3 do the other adults have no income/benefits?
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 869
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135
Electricity............................. 0 no fuel bills at all?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 75 this could be cut down
TV Licence.............................. 0
Satellite/Cable TV...................... 51 suggest you get rid of this
Internet Services....................... 50 will be able to get this cheaper
Groceries etc. ......................... 100
Clothing................................ 30
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 60
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 134 what is this for?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1659

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 251000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(869)......5.24
Total secured & HP debts...... 180000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................3600......365.......6.1
Loan...........................3200......150.......6.1
Loan...........................3500......90........9.1
Credit Card....................2200......55........0
Credit Card....................1600......18........0
Credit card....................300.......10........0
Total unsecured debts..........14400.....688.......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,659
Available for debt repayments........... 91
Monthly UNsecured debt repayments....... 688
Amount short for making debt repayments. -597
Personal Balance Sheet Summary
Total assets (things you own)........... 251,000
Total HP & Secured debt................. -180,000
Total Unsecured debt.................... -14,400
Net Assets.............................. 56,600


also My mum who is on pension credits at the moment pays for the Utilities only because I can't afford too.

Hi
Just added a few comments above. I think that there are other cutbacks that you should be making before you can't afford gas and electricity. There's room for savings in terms of your luxuries like satellite/internet/mobile. You need to think about things you really need rather than what you really want. I'm not trying to be mean, just give you some honest advice.

Also, I have my student loan on my dmp - but my loan is pre 2000 and I know the system has changed since then.

banks4u

ohh thanks all, I will check with my contract and see first. the problem with my mobile is there are 4 peoples linnes I pay for. I cant cancel till next year now.

MFWannabe

banks4u wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3 - Can the other 2 adults contribute?
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1750
Monthly Expense Details
Mortgage................................ 869 - Could you take a payment holiday or change to interest only while you pay off your debts
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 75 - You say below that you are paying for 4 people? Who are they? Can they not pay their own as you simply can't afford this
TV Licence.............................. 0
Satellite/Cable TV...................... 51 - You need to cancel this for now
Internet Services....................... 50 - This is a huge amount to be paying for internet; check comparison sites to see if you can get cheaper.
Groceries etc. ......................... 100
Clothing................................ 30 - You can't afford this at the moment
Petrol/diesel........................... 40 - really? Is it really worth having a car, as it currenlty costs you £130 per month
Road tax................................ 10
Car Insurance........................... 60 - See above. If you don't get rid of the car then check comparison sites to see if you can get this cheaper
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 134 - What is this?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35 - Check comparison sites to see if you can get cheaper
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 50 - Halve this for now
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1659

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 251000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(869)......5.24
Total secured & HP debts...... 180000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................3600......365.......6.1
Loan...........................3200......150.......6.1
Loan...........................3500......90........9.1
Credit Card....................2200......55........0
Credit Card....................1600......18........0
Credit card....................300.......10........0
Total unsecured debts..........14400.....688.......-

Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,659
Available for debt repayments........... 91
Monthly UNsecured debt repayments....... 688
Amount short for making debt repayments. -597
Personal Balance Sheet Summary
Total assets (things you own)........... 251,000
Total HP & Secured debt................. -180,000
Total Unsecured debt.................... -14,400
Net Assets.............................. 56,600


also My mum who is on pension credits at the moment pays for the Utilities only because I can't afford too.

Hi
I've made some comments above where you could make some cutbacks. But seriously you need to think about selling this house as you simply can't afford it on your own. In the meantime think about taking in lodgers to make some extra money

BitterAndTwisted

The OP said that they "share the mortgage" with another family member and I am almost certain therefore that the property is not worth half a million pounds. Also, it's not clear whether the mortgage-payments are the whole lot or just a 50% share. I think the council tax is the whole lot and not half either. There's nothing in the SOA for utility bills because his Mum who is on pension credits is paying them. Therefore the expenses on the SOA are not a realistic reflection of the total picture.

Why is someone paying £100 a month for satellite/cable/internet and running a car letting their Mum on pension credits pay for their lighting and heating? I don't get it. Cutting clothing and entertainment for six months as a bare minimum would add another £80 a month towards debt-payments as well. If there's a spare bedroom in this quarter of a million pound property they could take in a lodger and be getting £300 a month for the pleasure and have someone chipping in towards the bills as well.

OP: I think you need to think a bit harder about foregoing luxuries and knuckling down to getting those debts paid. That car needs to go unless it's impossible for you to get to work by public transport.

Also, it's difficult for me to understand how someone with £70k of equity in a property hasn't thought about using some of that to get out of the mire. In some pars of the country you could buy a property outright for that sort of money.

banks4u

Hiya, well I've cut down everything, the car has to stay as we need to get around. My brother used to pay half of all the bills but he lost his job. So I need him to get a job first really otherwise I have to think hard. I can't move as I'm in a ten year fixed and even if I do I will pay just as much on rent.

camuk81

Banks, maybe you should speak to your employers HR department and see what they recommend.

On my past experience of friends bank can be cautious about people with ccj etc working for them, a friend of mine worked for a high street bank and advised me if you got a ccj it was a sackable offence.

Do you have a copy of your original contract