Don't know where to begin, please help!

gfplux

In my opinion your rent at £925 a month is too high given your circumstances. How big is the property. If you have a spare room you could take in a lodger or can you move to a cheaper place.

wannabee_in_credit

Your situation is a little similar to mine. When I was on maternity leave with my second child, my OH was off work for a total of 8 months, and our debt spiralled out of control in that time.
I went to CCCS and onto a dmp, which I think is the best decision I've ever made - I just regret not doing it all a bit sooner.
I wish you luck with whatever you decide to do, but you must think about whether or not your current situation is just temporary... and what would happen if something similar happens a year or two down the line?

rising_from_the_ashes

Sorry but I'm a bit confused about your SOA .... all the expenditure is listed in your SOA but not your partners income - I note you say he "should" give you £700 but hasn't for the past couple of months due to his own situation.

If this is going to be a regular occurrence then things are unfortunately not sustainable.

Is everything (eg all the outgoings on the SOA) in your name alone?

If not, then the SOA needs to include his income & his outgoings too (incl the DMP payment) - otherwise it's not a true reflection of the situation (eg you're responsible for all the bills/groceries etc when in fact there are 2 salaries that should be incl in the income section).


There are some obvious savings as others have mentioned - especially groceries & mobile phones.

Lobbylocks

Bettingmad wrote: »

Okay with the defecit you have you need to do something ASAP as your debts will rise at an alarming rate as things currently stand. I appreciate that you say all debts are in your name however if you approach any DMP provider they will want to take into account you Hubby's earnings.
How soon will it be before your Hubby is earning again to supplement your commitments? Realistically we are looking at 2/3 months before he has moved job, built up some clients and benn paid. Even then, his pay is so variable it is hard to calculate an overall salary figure.
Your rent is extremly high, is there any way you can find a property any cheaper or is it down to your location? It is location mainly. We have thought of downsizing, but don't have the money at present to move anyway. What we are paying for our current property as we have been there a long time is cheaper than a comparable property by around £100.
With the figures you have I don't see another way out apart from a DMP at the moment. It will take your hubby contributiing and downgrading your rent to get you on an even keel.
Even is short time arrangement with your creditors will significantly effect your credit rating, however I don't see any other way at the moment.
How long does the loan have to go? The loan finishes in Feb 2013, so around another 11 payments.
You say your Hubby is on a DMP, are you able to provide a little more info on this?

He has been on a DMP for years and currently pays £15 a month to Payplan due to his present financial situation - hence the fact all our finances are separate and everything is in my name. And the main reason I'm worried about doing DMP myself, as then we are both up the swanee and I have been able to pass credit checks for mobile contracts etc.

Lobbylocks

wannabee_in_credit wrote: »

Your situation is a little similar to mine. When I was on maternity leave with my second child, my OH was off work for a total of 8 months, and our debt spiralled out of control in that time.
I went to CCCS and onto a dmp, which I think is the best decision I've ever made - I just regret not doing it all a bit sooner.
I wish you luck with whatever you decide to do, but you must think about whether or not your current situation is just temporary... and what would happen if something similar happens a year or two down the line?

Can I ask you about your DMP - presumably you have to get a new bank account and all forms of credit are removed. What is so good about it in your opinion? My main concern is not having a fallback in an emergency situation.

Lobbylocks

Domino9 wrote: »

Just to confirm, is this your actual SOA that you are paying now, and from next month the income will be higher as your OH will be contributing £700 pm from then? If this is the case then I think that you will be just fine and that you can manage for one month like this (March will be CTax free, try and reduce your phone payments, and cut back on the groceries)

If this SOA has to last you longer than that, then I think that more drastic changes will need to be made.

Also you have mentioned that you have savings for your son. I am sure that (when he's older) he would understand if you spent them supporting the family rather than getting further in to debt. You can always repay this to his savings account before he needs them when you are debt free (you have mentioned that your current situation is temporary)

I have made some comments above,

HTH

D9

Thanks for taking the time to look through it.We would be on this SOA for prob next three months, not just one.# I'm hoping that in that time hubby will be setlled in new job, built up his hours and been paid properly and that in six months my old job will become available and I can go bcak to work full time in Septemeber on my old salary, which I was I would like to try and find a way that won't mess up my credit rating, although I think I'm being unrealistic in thinking I can do that at this stage. I do have a friend who could potentially lend me some money to cover the next six months but is this just robbing Peter to pay Paul? nd then what if things don't pan out in the longer term, we are back to square one and owing even more money. The credit cards can go back on a 0% card in four months, paying interest on all but one currently as can't get anymore to swap to and loan is paid next Feb, so again, if we could get through the short term we could then juggle it all around again to keep out of blacklist/default territory. Really not sure what is best to do.
Be assured we are cutting as many corners on bills, shopping etc as we can - mobiles need looking at and it would cost us more money we don't have to move.

Lobbylocks

Thank you everyone who has replied with suggestions, it is really helping me think through the options. Going to phone CAB and Payplan tomorrow to see what they say too before making any further decisions - your help and kindness in spending the time to consider my problems has really made me see the world in a brighter light today.

the_cat

If hubby is now back at work surely he will start paying his share of the bills now and not in 6 months time?

As his credit rating is already shot, I would suggest you concentrate your efforts on jointly paying the stuff in your name, plus obviously the rent/food etc. This way you protect your credit rating. What is it that he is paying (or plans to) from his new wage that will prevent him from paying his fair share?

IF you are confident that you can turn this around, I would also 'borrow' the savings from your son and put them back in a few months when things improve. Overall this will benefit you all as a family

[Deleted User]

I think that you need to try and negotiate with your OH to start contributing a bit earlier than what you are currently expecting - you really are on the edge here!

Also, use your sons savings (you haven't said how much they are) to pay as much of the highest costing debt you have that you can. (You are on a good salary, once you are debt free you can rebuild them back in no time - and well before he will notice/need them).

Seriously consider moving to a smaller place/downsizing - although probably not a short term solution as you would need deposit etc

Also, perhapse you could contact some/all of your debtors informally and ask them if you can take a payment holiday/reduce payments for a couple of months - some will and some won't.

Without sounding too negative, I agree with your comment that borrowing more is not the solution - you can not guarantee that things will be better in the future (or when they will be better I should say, as you are addressing the issues, so things WILL improve), so you cannot guarantee that you will be able to pay your friend back on time.

Make as many cut backs/cut outs in your SOA that you can - especially see what savings you can make with the phones and groceries

runaroundpauper

Lobbylocks wrote: »

He has been on a DMP for years and currently pays £15 a month to Payplan due to his present financial situation - hence the fact all our finances are separate and everything is in my name. And the main reason I'm worried about doing DMP myself, as then we are both up the swanee and I have been able to pass credit checks for mobile contracts etc.

I am in a dmp with payplan passed a credit check for virgin media by having all 3 services saved 20 pound a month compared to sky switched to e o n as cheaper than bg and passed credit check , virgin phoned me and offered me a contract phone 2 years 12.00 a month when they did the credit check they offered me 2 contracts I had to turn them down so by passing the credit checks And keeping credit going definately now new loans or credit cards I will be able to pay more to the dmp