Help please! Now with shiny new SOA :)

PJMardy

Hi all

Things have changed a bit since I posted my SOA and couldn't afford to even make £1 payments to my creditors.

I've done lots of reducing the payments I'm making each month to make sure I do have a bit of spare cash left over.

And, I've also decided to get rid of my car - I get paid a car allowance but was using the full amount to have a car because the only way I could get one was to lease it from a really expensive company. Anyway, a friend is now giving me his car to use for the next 12-18 months while I sort myself out. So I'll still be able to claim my car allowance, but won't be shelling out each month - which means plenty of money for my creditors!

So, anyway, that's a long winded way of asking my question!

My friend has also offered to lend me some money to clear off some of the debts (I would then pay him back the money I would have been sending off to creditors, but could start to repair my credit file now, rather than when I've finished paying everyone off).

So, I've just compiled some full & final offer letters to the majority of my creditors - I've gone in at 40% of the total debt - does that sound about right for my first offer?

I also have debts with two current accounts and two credit cards. I've not used any of the accounts for years now so don't have access to my online accounts. However, I'm pretty sure there must be some hefty charges on there, and large interest rates. Is there any way of claiming these back if I don't have all the details? Or a standard letter to complain that the amount of interest I'm being charged means I'll never pay the debt off?

Or, am I better just offering them all a full and final settlement offer too, and seeing where I get to?

Thanks for your help

PJ

Tixy

So, I've just compiled some full & final offer letters to the majority of my creditors - I've gone in at 40% of the total debt - does that sound about right for my first offer?

What is the current status of the debts? Presumably you are behind with payments on them? do you have defaults registered against you? when did you last make payments towards them?
are they being dealt with by the original creditor / an in house DCA or a third party debt collector?

If they are with debt collectors and you have not paid them recently then you could try starting at something like 25%.

I also have debts with two current accounts and two credit cards. I've not used any of the accounts for years now so don't have access to my online accounts. However, I'm pretty sure there must be some hefty charges on there, and large interest rates. Is there any way of claiming these back if I don't have all the details? Or a standard letter to complain that the amount of interest I'm being charged means I'll never pay the debt off?

If you don't have details then you can write to ask for a full breakdown of the transactions on the account (or if they fail to provide so a subject access request so that they have to provide it).
Then you could look through and challenge any you think you can (have a look at the reclaiming section of the forum for what you can reclaim).

If you don't have access to the accounts I wouldn't just assume they are still charging you - it may be they have been passed to debt collectors at some point and that interest has not been being added.

PJMardy

I'm behind on pretty much all of my debts - I have been very ill and haven't opened any post for 6 months. The majority are with DCA - though I don't know how many of these are in-house and how many are third party. I haven't made payments on the majority of them since July last year.

I'll do some investigating and see which ones are third party and offer them 25%.

OK, cool. I'll write to them and ask for a breakdown of charges - would the DCA have access to this too, or would I need to go to the original creditor? I don't think interest has been added for a while - but when I had the cards/accounts there were a lot of charges and high interest rates - if I have to just suck that up, then of course I will, but if I can reduce anything then I really want to!

Thanks for your help

(I'm also working on my new SOA so will post that up later on and see what people think)

PJ

Tixy

Given that I'd probably be tempted to start all offers at 25%. The ones that are inhouse might be more likely to decline but its a reasonable starting point from what you've said.

PJMardy

Great stuff - thank you. I'll finish my letters now. Then send them recorded delivery first thing tomorrow.

PJMardy

Right - this is my SOA as far as my circumstances are now.

I'm just gonna put it up here and see what happens!

All my debt is at 0% as it's all with DCAs. I've just sent out full and final settlement offers to the majority, payment plan offers to a few more and statement of account requests to the banks/credit cards.

I work in Sales, though I've been off sick for quite some time. So this SOA is based on my basic salary - any bonus payments (up to £5-6k a quarter, but that's unrealistic!) will be thrown towards my debt.

My food is high. I know this. I pay for a WW subscription out of this and I'm trying to get much better at batch cooking and such like - it's definitely where I spend the most money usually. I'm going to keep a spending diary this month and see where savings can be made (all over the shop, I imagine!).

Statement of Affairs and Personal Balance Sheet[/b]
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1500
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 375
Management charge (leasehold property).. 0
Council tax............................. 127 (includes arrears at £55 per month - will be cleared in July)
Electricity............................. 30 (includes arrears)
Gas..................................... 35 (includes arrears)
Oil..................................... 0
Water rates............................. 18
Telephone (land line)................... 15 (in contract until Apr 13)
Mobile phone............................ 27 (in contract until Nov 13)
TV Licence.............................. 12
Satellite/Cable TV...................... 30 (in contract until April 13)
Internet Services....................... 15 (in contract until April 13)
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 75
Road tax................................ 15
Car Insurance........................... 75
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 75 (train/bus to work, petrol will be used for essential work journeys that are not to the office)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15 (I'm on antidepressants)
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 26.88 (I know this is high - I'm only 6 months in, but can I change anyway?)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 15
Holiday................................. 0 (gym membership)
Emergency fund.......................... 0
Total monthly expenses.................. 1215.88

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Leeds Council Tax..............250.......50........0
Red (o2).......................593.83....30........0
BCW (o2).......................384.......30........0
Rockford (YW)..................85........5.........0
Calderdale MBC.................575.52....50........0
Bradford Council Tax...........254.56....30........0
BCW (Southern Electri..........262.04....30........0
LCS (British Gas)..............293.11....30........0
Allied (Ulster CC).............642.41....30........0
Halifax Credit Card............350.......30........0
Clarity (Payday UK)............439.75....30........0
Capquest (Santander)...........1037.96...30........0
Credit Security (Hx)...........373.51....30........0
Credit Style (VW)..............1308.32...50........0
Parents............................970.32...0...........0
Friend..............................1,150...0.............0
Total unsecured debts..........8,970.33...455.......-

Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,215.88
Available for debt repayments........... 284.12
Monthly UNsecured debt repayments....... 455
Amount short for making debt repayments. -170.88
Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,850.01
Net Assets.............................. -5,350.01

The numbers for 'minimum payment' are not correct at all - I haven't paid anything towards these debts for a number of months now. I just put numbers in to be able to create offers of payments for my DMP.

Any questions (and I'm sure there'll be loads!), please just shout!

PJ x

Tixy

Hi

The car insurance looks quite high - how soon is that up for renewal? when it is make sure you shop around and read the MSE article on finding the best deal.

As you know your groceries do look high, but if you are working on them then thats a good start.

In terms of medical costs - if the majority is prescriptions have you looked at prepayment/season cards to see if you would save?

Good luck with the F&Fs.

PJMardy

Hello!

Thanks for taking a look

That car insurance quote was the cheapest for the car I'm being given but it's up for renewal in May and I'll have another good look round then and make sure I'm doing anything I can to reduce it! I've had a few accidents in my time, so it's always quite pricey. And switching cars is actually saving me £50 a month

Yep, food shopping I've got to get a handle on! I'm terrible at buying day to day rather than for a week. I did a good shop at the weekend though, which should last most of the week and only cost me £30 which is a massive improvement for me!

Yeah, I've looked at prescription pre-payment thingies - but most months it is only £7.40 I spend - but some months I end up paying for two prescriptions so I'd rather have two in there just in case. If I started having to have two every month I'd definitely move to the pre-payment card...

Thanks again