Newbie with help needed

Cornucopia

You need to tell the PDL that you are in financial difficulty and cannot make their repayments. If they are not helpful, you might need to cancel the direct debit (current account) or continuous payment authority (credit/debit card) that allows them to take repayments.

Step change will provide further advice/practical assistance. Please do contact them.

gardenlady_2

Hello, I'm sorry you are feeling so awful- it is a horrible time but most people here have been through it- or something similar- and will try to support you through it.
What specifically are you wary about on a DMP? Is it the credit rating? As far as I can see, having your credit rating destroyed is the only disadvantage of a DMP, and for many people their credit rating is awful even before they go down that route. Is anything else concerning you about a DMP that perhaps people can reassure you about?
I would phone the National Debtline or Payplan or Stepchange- they are SO helpful.

lizzy23

Stiffler wrote: »

I'm still wary of the dmp I really need help ASAP can't sleep or eat!

Why? to be honest it doesn't look as though you have any other option, if you can't service your debts, whats worse, not having any money to feed your family or a DMP?, by the sounds of it your credit rating is trashed anyway

LannieDuck

Did you post your SOA in the end? We'll be able to help a lot more once we get a better idea of your incomings and outgoings etc.

Stiffler_2

For some reason it's not letting me do it on my phone or tablet ill have to get the laptop out.

Stiffler_2

Right SOA but ive missed a £88 payment for ground maintainence which is in the red and owed this week. I've tried to put as much info regarding the payday loans but ill need to dig deeper in my emails to get exact figures etc really need help guys. (im also going to tell my partner everything as she deserves the truth)

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 3
Monthly Income Details
Monthly income after tax................ 2300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2300
Monthly Expense Details
Mortgage................................ 350
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 55
Gas..................................... 55
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 80
TV Licence.............................. 13
Satellite/Cable TV...................... 130
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 250
Road tax................................ 10
Car Insurance........................... 100
Car maintenance (including MOT)......... 10
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..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1620

Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 110000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 64000....(350)......4.1
Total secured & HP debts...... 64000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
car............................7000......199.......20
car............................3000......128.......20
amigo loan.....................1900......150.......50
credit cards...................500.......35........30
pounds to pocket...............1000......171.......1700
payday loan....................400.......300.......2000
payday loan ...................350.......300.......2000
payday loan....................600.......300.......2000
payday loan....................500.......300.......2000
wonga..........................1400......300.......2000
car............................888.......37........20
Total unsecured debts..........17538.....2220......-

Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,620
Available for debt repayments........... 680
Monthly UNsecured debt repayments....... 2,220
Amount short for making debt repayments. -1,540
Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total HP & Secured debt................. -64,000
Total Unsecured debt.................... -17,538
Net Assets.............................. 28,462

Cornucopia

From that SOA, it looks like everything is fine, except for the payday loans.

Because your other finances are sound, I would have thought that you are in a strong position to agree a freeze to the payday loans, and a long-term repayment plan for them that you can afford.

There are a few bits you could trim to make more money available for repayments - 130 is a lot for Satellite/Cable TV, and 80 is a lot for mobile phone.

RAS

Hi

You need to start by separating your fincance and your partners as much as possible.

Is the account from which the PD loans are coming in your name or joint names?

Which ever, you need a brand new basic bank account with a company that has no relation to any of your current account providers.

You need to do this so that you can get your salary paid in and protect it from the PD loans.

RAS

I am going to be cruel here but you are looking at £4-5K to sort out and if you both knuckle down you can clear this in months.

I suspect however that you both need to sit down and go throught hte SOA as it is not really realistic at the moment. Get the statements printed off and work out what you spent were in the last 6 months.

Stiffler wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 3 - why three cars?
Monthly Income Details
Monthly income after tax................ 2300
Partners monthly income after tax....... 0 - can she work even one or two evenign whilst you look after the little one? Much better than a raise for you.
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2300
Monthly Expense Details
Mortgage................................ 350
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 104
Electricity............................. 55 - these are relatively high so you need rto learn to turn the thermostat down, put on a jumper or two and turn the lights out.
Gas..................................... 55
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 80 - this is high - try to negoitiate lower packages and go PAy as you go if you can
TV Licence.............................. 13
Satellite/Cable TV...................... 130 - this HAS to go. freevieew for a year
Internet Services....................... 0
Groceries etc. ......................... 300 - this a very high for 3 people including a small child (even with nappies) send the missus over to the money saving old style forum and you can get this down by £100 immediately
Clothing................................ 0 - you will be spending money here so your SOA is not realistic
Petrol/diesel........................... 250 - all journeys necessary? Any being done for work and not reclaimed?
Road tax................................ 10
Car Insurance........................... 100
Car maintenance (including MOT)......... 10
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..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - you will be buying these
Haircuts................................ 0
Entertainment........................... 100 - you need to forego this for the short-term
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1620

Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 110000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 64000....(350)......4.1
Total secured & HP debts...... 64000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
car............................7000......199.......20
car............................3000......128.......20
amigo loan.....................1900......150.......50
credit cards...................500.......35........30
pounds to pocket...............1000......171.......1700
payday loan....................400.......300.......2000
payday loan ...................350.......300.......2000
payday loan....................600.......300.......2000
payday loan....................500.......300.......2000
wonga..........................1400......300.......2000
car............................888.......37........20
Total unsecured debts..........17538.....2220......-

Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,620
Available for debt repayments........... 680
Monthly UNsecured debt repayments....... 2,220
Amount short for making debt repayments. -1,540
Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total HP & Secured debt................. -64,000
Total Unsecured debt.................... -17,538
Net Assets.............................. 28,462

Stiffler_2

Thanks for the replys people yeah I agree if the pd loans went my position wouldnt be too bad. Im just gutted I can't get a bank loan with a decent rate my worries would be sorted.