Debt Free by 2020.....

eyeopener2

Hi

I've not had a holiday in over two years.

I don't go out

I don't have Sky

I don't buy magazines.

My child gets small presents at Christmas and birthday that we can afford.

We live simply - lots of clothes from charity shops for me. Cook everything ourselves, no takeaways unless we have underspent our budget.

But my debt will be paid off next year - it will have taken just over three years and £24k.

So it can be done but your lifestyle has to change completly to do it.

A DMP won't allow you a holiday at Centerparcs for example

That is the Light Bulb Moment.

Good luck with your journey.

E2

amiehall

danross83 wrote: »

Well not going to levitate to the supermarket or on holiday, so yes car is necessary.

You need the car for the holiday?? This is surely one big windup...

deep_in

danross83 wrote: »

SOA in Makesenseofcards format...

Debts are not complete, and are estimates largely (Awaiting credit files so as to send for values on all debts....)

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 5
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1076
Partners monthly income after tax....... 0
Benefits................................ 2100
Other income............................ 515
Total monthly income.................... 3691
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1000
Management charge (leasehold property).. 0
Council tax............................. 124
Electricity............................. 76
Gas..................................... 72
Oil..................................... 0
Water rates............................. 56
Telephone (land line)................... 20
Mobile phone............................ 60
TV Licence.............................. 13
Satellite/Cable TV...................... 60 Try freeview its free after buying the box there a few channels for the kids
Internet Services....................... 10
Groceries etc. ......................... 650 Look at the old style saving board for ideas on meal planning and down shifting brands
Clothing................................ 100
Petrol/diesel........................... 100
Road tax................................ 19
Car Insurance........................... 165 This seems high unless you don't have any no claims bonus try comparison sites and cash back sites
Car maintenance (including MOT)......... 500 This seems high is it only for MOT and repairs or other things too
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 40
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 190 Try earning vouchers through dooyoo and swagbucks etc to use on amazon will help cut this down
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 125 Try camping and taking food with you will cut this down
Emergency fund.......................... 50
Total monthly expenses.................. 3430

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 200

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Orange (Mine)..................3800......0.........0
Orange (DOH)...................3800......0.........0
HSBC (Joint)...................4000......0.........0
Cashgenie......................400.......0.........0
Wonga..........................700.......0.........0
Quickquid......................700.......0.........0
Vanquis (Mine).................450.......0.........0
EDF............................300.......0.........0
nPower.........................300.......0.........0
Scottish Power.................400.......0.........0
Weightmans LLP.................250.......0.........0
eBay...........................250.......0.........0
Shop Direct Group (OH..........2000......0.........0
Shop Direct Group (Me..........2000......0.........0
Provident (DOH)................1500......0.........0
Provident (Mine)...............1500......0.........0
MBNA (DOH).....................2000......0.........0
Capital One (DOH)..............700.......0.........0
Total unsecured debts..........25050.....0.........-

Monthly Budget Summary
Total monthly income.................... 3,691
Expenses (including HP & secured debts). 3,430
Available for debt repayments........... 261
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 261
Personal Balance Sheet Summary
Total assets (things you own)........... 200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -25,050
Net Assets.............................. -24,850
Created using the SOA calculator at makesenseofcards
Reproduced on Moneysavingexpert with permission, using IE browser.[/i]

Added some comments hope these help:)

debtboredom

danross83 wrote: »

This is truly the most condescending board on the planet. Try not buying new clothes for 3 years so you can justify your kids having good xmas / bday. Try not having any social life for 3 years so you can keep a roof over your heads. Yes i get the whole bankruptcy is an easy way out etc pay your debts b/s but at the end of the day my priority will always be my kids, end of story. If i hadnt been ripped off by the first dmp company then i would be debt free by now. only dealing with things now cos quickquid going after an attachment to earnings order. Thus given the choice between them leaving my kids short or having the stigma of bankruptcy, bankruptcy is looking pretty good from where i'm sitting. If i could have a DMP or similar with a monthly payment nearer £300 and an end date within sight then i'd go that route but as a chunk of my debt is with unscrupulous doorstep / payday lenders the pittance they would get would be swallowed up by the interest and charges.

ARGH!!!!!

As an aside, if it was me on my own with the kids, believe me then the debts would be cleared sharpish. But as a chunk of our income (£515) each month comes from my partner's previous spouse as child maintenance, it obv. gets funneled in more child friendly directions as a matter of course. If i disregard this then i have perhaps £300 a month for DMP.

Have you tried to organise a repayment individually with the PDL companies? (Or the other creditors for that matter.) The first call isn't easy but most will be willing to help you somehow. There's lots of threads here with people in a similar situation that might help. In fact, try and have a look at some of the other threads in general to see similar situations to yours and how they are being handled.

No one is being condescending. Lots of us are in the same boat. No one is saying don't buy any clothes! From your SoA, there is lots more than £300 per month available to pay off the debt. If the £515 has to go to on the kids, then use the money from the CB that you get. Although I'd argue that you've already spent that money on the kids so no reason not to pay debts with it (but I don't know where it would stand in the law.)

If you want to buy a house in the future then bankruptcy is not where you want to go.

Harsh reality is that you put yourself in the situation you're in. The upside is that you've recognised it needs sorting and you're here talking about it!

Barbeduk

People aren't trying to be condescending, they're giving you advice based on their own experiences. They're trying to help.

triple_choc_chip

I'm sorry you think we're condescending, but maybe we're just struggling to understand each other. Just because you don't like the replies doesn't mean they're not honest or true.

We all make different choices in life for instance i only have one child - I would dearly have loved another but I couldn't afford it and my head rules my heart on these things. I'm also self employed and couldn't have taken the time from work. C'est la vie.

You blame the dmp company but you wouldn't have needed them if you hadn't have run up the debts.

Quidquick are going for an attachment order but they couldn't do this if you hadn't borrowed from them.

They won't be leaving your kids short - your previous decisions are responsible for that.

Doorstep lenders may be unscrupulous but you chose to borrow from them.

You must start taking responsibility for your actions because the world isn't bringing this to you, you have brought it on yourself.

The same is true though that you can change this, you can move on, you can put it right again. It's always your choice so take control.

eyeopener2

You say Quick Quid are going for an attachment of earnings.

Has this one been to court or is it just QQ trying to be scary? Cos the o lie you know.

They can't get an attachment without a CCJ, and then they can only get that if you haven't payed the CCJ.

E2

danross83

Fresh start as to be honest I have taken some comments in a !!!!!! way after a generally !!!!!! day.

I appreciate all the comments.

The holiday is all but paid for, obviously if it wasnt we wouldnt be going. In 29 years of life have been on holiday twice, including this one to come....

Just pumped figures into spreadsheet and reckon at £300 a month can clear it in 7 years (found some demand letters etc for up to date balances.)

£300 should be an improvement to these people as on paid DMP was only paying £150 PCM (less £30 management fee so £120).

Any advice on wording of letters to creditors would be appreciated for best chance of freezing interest / charges.

Any advice on dealing with PDL is appreciated. They just spiralled. Took 1 to repair car, repayed it, hence short so took another etc.

Mobiles got stupid - I got depressed and my way of coping was "oooh, lets have another different phone.....". Fixed that by going PAYG, reduced from £400 a month to £60 for 2.

Quickquid sold debt to a company who just now today sent a letter offering CCJ / ATE as consequence. HSBC / Metropolitan threatened this a month or so back and I admit I buried head. Their debt is greater so I guess they'd be more successful.

Again, sorry for the !!!!!! attitude folks.

debtboredom

Good stuff. It still looks like you should have more than £300 a month left though. There are 2 main companies who will set up a DMP for free but they will probably ask you to make some cuts in different areas of your expenditure. They don't charge as they're charities. Even if you go self managed, the creditors will want the same. PayPlan or CCCS are their names - give them a Google, they're both very helpful.

danross83

My point though is that the CCCS calculator got my money for DMP to less than £300, probably cos they are more generous in some areas, plus because they allow kids to have school meals, and pocket money etc. The only downside with the CCCS is that they aren't totally free. They let your money sit in a bank account earning them interest for a period of time. This would be less galling if not for the fact that you have to do all the work, eg writing to the creditors etc, at your own expense. Might as well go self managed, using the CCCS budget planner as a SOA - get best of both worlds? Still not using the kids money to repay mine and her debts, but equally getting it in in under 8 years.