Why am I not being allowed to consolidate my debts?

rising_from_the_ashes

Well done for getting it all down - it's not easy.

sirwilliam wrote: »

SOA takes into account half in terms of shared property (half value, half mortgage and half payments). Sale of flat is not an option for at least the next two years.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1932
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1932

Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 136 Is this really 50% - it's huge? Is it payable over 10 or 12 months? If you've got 2 months free coming up, that will help a bit
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0 No landline?
Mobile phone............................ 5
TV Licence.............................. 0 Need about £6.06 in here
Satellite/Cable TV...................... 0
Internet Services....................... 0 No internet?
Groceries etc. ......................... 160 If this is just for you, you should be able to cut a bit (up to 50%) - try looking at the Old Style Board & Grocery Challenge for tips / ideas
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 80 Any way to reduce - find a liftshare / cycle etc?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Need something in here
Pet insurance/vet bills................. 0
Buildings insurance..................... 15 On the high side but depends on location/size etc
Contents insurance...................... 10 As above - as a comparison I pay £15/month total for both
Life assurance ......................... 42 On the high side, check for comparisons & try the Insurances board for advice
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Need something in here
Haircuts................................ 16 On the high side for every month - try an extra couple of weeks between visits / student nights etc
Entertainment........................... 0 Need something in here
Holiday................................. 0
Emergency fund.......................... 0 Need something in here - around £50 to cover household appliances, repairs etc
Total monthly expenses.................. 1089


Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 200 Could you sell these & get the money to help?
Total Assets............................ 220200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(550)......3.27
Total secured & HP debts...... 130000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Coop loan......................6980......195.......8.9
Natwest loan...................3924......104.......9.9
Natwest loan...................2119......92........9.9
Natwest credit card............1600......35........19.9
Toothfairy Fin'c loan..........400.......100.......0
QuickQuid loan.................500.......100.......0
Payday Express loan............350.......100.......0
PDUK loan......................400.......130.......0
Wonga loan.....................1200......1200......0
Natwest overdraft..............2600......0.........0
Natwest loan...................1984......58........9.9
Total unsecured debts..........22057.....2114......-


Monthly Budget Summary
Total monthly income.................... 1,932
Expenses (including HP & secured debts). 1,089
Available for debt repayments........... 843
Monthly UNsecured debt repayments....... 2,114
Amount short for making debt repayments. -1,271

Personal Balance Sheet Summary
Total assets (things you own)........... 220,200
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -22,057
Net Assets.............................. 68,143

mmmmmmm tbh William, that's a pretty big shortfall and even with the suggested cuts above (many which will disappear with the missing things from the SOA), it's unlikely you'll be able to claw that much back so....

Is there a spare room you could let out - but, you'd only get 50% of this I would imagine?

Option 1 - you need to increase your income by a pretty large amount
Option 2 - it may be that a DMP is the best way forward .... yes, you will end up with defaults etc but I'd say that you must be heading that way atm as that shortfall unfortunately isn't sustainable.

Please give one of the debt charities a call (no in the sticky at the top of the board) and have a chat with them.

Wishing you luck

BoGoF

sirwilliam wrote: »

...I've also been tasked with heading up a new subsidiary within my (employers') company. I will effectively be MD and receive substantial commission (equivalent to 15% of revenue). This business isn't a pipe dream and has just been started with full company backing and the first few trading months' income already exceeded. My projected commission under a conservative scenario for year 1 is over £5,000, year 2 is over £16,000 and year 3 is over £26,000. I know it's still 'projected', but I've already netted £1,200 of year 1's commission in month 1! This isn't yet in my own account and is going to be paid either quarterly or annually as a 'bonus' essentially...

What you need to remember is that lender isn't interested in an event that could happen in x months time. They are interested in here and now. Your SOA is scary and I doubt that even includes all your expenses.

william2074

rising_from_the_ashes wrote: »

Well done for getting it all down - it's not easy.



mmmmmmm tbh William, that's a pretty big shortfall and even with the suggested cuts above (many which will disappear with the missing things from the SOA), it's unlikely you'll be able to claw that much back so....

Is there a spare room you could let out - but, you'd only get 50% of this I would imagine?

Option 1 - you need to increase your income by a pretty large amount
Option 2 - it may be that a DMP is the best way forward .... yes, you will end up with defaults etc but I'd say that you must be heading that way atm as that shortfall unfortunately isn't sustainable.

Please give one of the debt charities a call (no in the sticky at the top of the board) and have a chat with them.

Wishing you luck

I see the shortfall is huge, but if I can get work out a way to refinance just the payday loans, it dramatically reduces. The idea of getting a letterbox full of defaults, CCJs, bailiffs at the door etc. scares me to death. So the banks can get bailed out, but we can't? I'm in such a bad mental place right now... I'm at a point in my life where I can't give up credit for six years and have everyone exposed to my debts (family, employer, friends, girlfriend). Yes I agree with all of you out there who say I should have sorted myself out sooner and been more responsible, but it just seems like now all my problems will be brought out into the open and I'm not sure how I'll mentally cope with that...

william2074

Will defaults automatically land me in court of get me CCJs?

ladysparklexx

Evening sir william. I think that you need to consider with your credit file at what point are you looking to get another mortgage? If you miss any payments on your current debts these will show up on your credit file, this does look from your soa that this is a strong possibility. These could then in turn default anyway along with your payday loans showing up.

A DMP might be the best option or you, you can then put every penny you get extra through your job towards it and get it settled fairly quickly. Going down this route would also stop all your creditors phoning, maybe turning up on your doorstep and then your house mate would find out, although it might be best to let them know anyway to that they can support you through this.

I desperately wanted to protect my credit file, but started making payments late etc which screwed it up anyway. We are going to be much better off and although we need to move, we will have this option in maybe 6 years time if we pay our plan off earlier than expected.

It will be good for us to move once we are debt free and living in our horrible house will make us get debt free asap.

beachie

I see the majority of your shortfall is because of the Wonga loan because it says you will pay back £1200 this month from a total of £1200.

Is this correct? If so then next month your outgoings should come down substantially and you can start having break even months, although you need to ensure you don't rack up any new loans.

If you want to buy something then wait until you receive your bonus, then spend a little on what you want and put the rest towards to the debt.

Skint_Catt

Is £220k your half of the house? £1100 mortgage on a £440k house seems very low!
C xx

DorsetGirl_2

sirwilliam wrote: »

I'm just worried a DMP will completely screw me over in terms of securing future credit (e.g. a mortgage once my current jointly-owned property is sold in a couple of years). Aren't DMPs incredibly damaging for one's future prospects? I have gone through the CCCS website and it suggests a DMP, but I'm worried about going down this road in terms of landing up with CCJs and black marks all over my records. I co-own my property with a friend who is unaware of my financial issues and I am also worried about them finding out. My family also doesn't know and I'm also deeply worried about their reaction to the size of debts I have racked up...

Payday loans will have already damaged your credit report.

meer53

I think any lender looking at your SOA will decline to offer you a loan. It's not nice to hear, but where i work, we wouldn't offer you any more lending, we would recommend a DMP. I had a request last week for a loan of £24k for consolidation (no PDL companies though) and we declined the request. It's getting harder to borrow for consolidation now than it used to be, i think you would be well advised to go down the route CCCS recommend. You'll probably find it a relief once you've done it. It will be difficult admitting to friends and family but you aren't the only one in this position. Maybe once your new job is up and running, you can make some inroads into your debt ? A lender will not take projected figures into account unless you have evidence of these and they are guaranteed.

rising_from_the_ashes

sirwilliam wrote: »

I'm at a point in my life where I can't give up credit for six years and have everyone exposed to my debts (family, employer, friends, girlfriend). Yes I agree with all of you out there who say I should have sorted myself out sooner and been more responsible

Did this thread start over on the Loans board?

Just that a few of the comments at the start do have the tone from there, rather than the DFW board, which is generally more easy going - as most of us have been / are in similar situations.

I don't think anyone on here has judged you at all .....

Unfortunately, as others have said, the PDLs will already be showing on your credit file which will mean that obtaining any credit for a considerable period is unlikely anyway (they're viewed as a last resort so lenders tend to steer clear of people with them).

If they are a recent thing ... what's brought about the need for the extra cash?

I'm not sure what you mean about others being exposed to your debts - yes, they may find out, but they can't be forced to pay them.