Help

Gemzie

I'm really struggling to pay off debts that i have mounted up over the last 7yrs. I owe just under £9k and have recently split with my ex, i have 2 children and have now gone onto income support. My income is now £170ish a week and i have outgoings of £320 this does not include playgroup fees of £16.50 a week or food, clothes etc..

I rand Payplan and they have advised me to contact my creditors with an Informal Arrangement of £1 a month, but surely this can't be my best option. Can anyone help please?

Thanks

joeblack066

Hi Gemzie, and welcome! Best advice to start with is to post a full SOA, thats all incomings and outgoings with balaces, APRs etc, then you will get good guidance as to the best way forward. Mainly, don't panic, you are among friends!

Gemzie

Sorry but whats a SOA?

silkglade

Gemzie wrote: »

Sorry but whats a SOA?

Statement of Affairs, all your income and then all your expenditure each month - pref with totals and interest rates

AND WELCOME BY THE WAY - CONGRATULATIONS ON THE BEGINING OF YOUR JOURNEY

Gemzie

Incomings - £170 per week or £741 per month

Outgoings
TV 11.37
Sky 40
Telephone and Internet 40
Water 38.80
Gas 36.00
Electric 66
Home Insurance 7.35
Mobile 40
Life Insurance 8.21
Pet Insurance 10
Petrol 40
Food 220
Playgroup fees 66

Total 624ish

Debts
1 x credit card 2500 contractual payment 50 1.167% per month
1 x credit card 770 contractual payment 50 1.492% per month
1 x credit card 2191 contractual payment 66 1.313% per month
1 x credit card 475 contractual payment 13 1.313% per month
1 x loan 2900 contractual payment 116

Gemzie

Is that right, how i've done it? God i hate seeing it written down.

Thanks so much for the warm welcome

savvykaz

Hi Gemzie - yep that SOA's correct

Just one thing - you don't have anything down for rent/mortgage - is this paid for with housing benefit?
Could you ditch 'Sky' and get a freeview box or 'free to air' card from Sky?
Your electricity seems high too - could you shop around (via Quidco) for a cheaper supplier?
Do you NEED the mobile phone?
Why do you pay childcare fees? Are you working? If so, are you claiming all tax credits?

HTH and welcome to the friendly world of DFW

Scottishmummy

Hi Gemzie welcome to DFW's.
I've spotted a couple of other things you seem to have missed - sorry to put a downer on things but you have petrol down but nothing for car insurance, Road Tax, maintenance etc. Even if you pay these annually you need to put a monthly amount down. Can you also put the interest rates of your CC's down too? Is Council Tax paid for? Does your ex pay child maintenance?

This will give us a more accurate picture and will help you on your way.

Gemzie

savvykaz wrote: »

Hi Gemzie - yep that SOA's correct

Just one thing - you don't have anything down for rent/mortgage - is this paid for with housing benefit?
Could you ditch 'Sky' and get a freeview box or 'free to air' card from Sky?
Your electricity seems high too - could you shop around (via Quidco) for a cheaper supplier?
Do you NEED the mobile phone?
Why do you pay childcare fees? Are you working? If so, are you claiming all tax credits?

HTH and welcome to the friendly world of DFW

Hi,

Thanks for your reply. Yes i get housing and council tax benefit and with Sky and Vodafone i am in contracts with unfortunately. The electricity is high because apparently i use that amount and it is back dated due to me owing so much and the payments not being higher sooner. The childcare fees aren't because i work but i started her and really feel that i can't stop her going now as she has settled so well, after Christmas she will be entitled to free sessions.

Gemzie

Scottishmummy wrote: »

Hi Gemzie welcome to DFW's.
I've spotted a couple of other things you seem to have missed - sorry to put a downer on things but you have petrol down but nothing for car insurance, Road Tax, maintenance etc. Even if you pay these annually you need to put a monthly amount down. Can you also put the interest rates of your CC's down too? Is Council Tax paid for? Does your ex pay child maintenance?

This will give us a more accurate picture and will help you on your way.

Car stuff i always just put on the credit card so i'd forgotten about them.
Insurance is 400 inc breakdown cover road tax 116.

I'll go back and add the interest rates of the credit cards.

Council tax is paid for me and the maintenance is already included in my incomings.

Thanks x

LookingAhead

HI Gemzie.

Just wanted to say that although it all seems horrendous now - remember there are so many people on here in the same boat and they are making progress now after that initial shock! You can and will do it too.

The CCCS are highly regarded on here and although you might think £1 a week can't seriously be the way forward - if the CCCS have recommended it then do it - it will get people off your back and relieve some pressure.

Things will improve as your situation improves - you can't pay what you haven't got.

Look at it as a two pronged attack.

You get them off your back whilst sorting out your financial situation to make savings and then start paying back more.

Right now could be your worst case scenario.....so..in theory...things can only get better, right?