HELP! Do I need a DMP? Not new to debt but new to worrying about it!

Struggling1987

Hi All,

I was hoping someone could help me! I have managed to rack up about £15,600 of debt in the last few years and I'm not sure how. I always told myself it was fine. I have the money spread over roughly 6 cards and an overdraft. Some is interest free and some is not!

I've put together an SOA and was hoping for some advice to help me/make me feel better about this situation! Happy to answer any questions and hear some harsh realities!

Do I need a DMP? or just stop being an idiot with my credit and put my head down and pay it back?!

Thank you in advance!

Tixy

Hi

Depends what your SoA shows.

Does it show you have a surplus or shortfall after minimum payments on your debts?
If it shows a shortfall are there changes you can make in your outgoings or income to get rid of the shortfall?

Struggling1987

It currently shows a shortfall of about £100. I'm sure I could limit my outgoings.

What do people find to be the best cuts to make?

Any good ideas for income boosters?

I was thinking of possibly clearing them with a loan to regulate everything as it's proving quite hard to keep track!

Struggling1987

Thank you for the quick reply! :-)

Depth_Charge

Struggling1987 wrote: »

Hi All,

I was hoping someone could help me! I have managed to rack up about £15,600 of debt in the last few years and I'm not sure how. I always told myself it was fine. I have the money spread over roughly 6 cards and an overdraft. Some is interest free and some is not!

I've put together an SOA and was hoping for some advice to help me/make me feel better about this situation! Happy to answer any questions and hear some harsh realities!

Do I need a DMP? or just stop being an idiot with my credit and put my head down and pay it back?!

Thank you in advance!

Hi

Could you put up your SOA?

It might allow people get a clearer picture and thus they may be able to help you further.

Also you may have options other than a DMP, depending on your circumstances and choice of course.

Best Wishes

Tixy

Posting up your SoA will help people give you the best advice but

Groceries - many people spend more than needed here without thinking about it. If you try you can often reduce the spend without noticing a big difference in what you eat. The drop a brand challenge can be a useful start.
Insurances/Phones - shop around to check they are competitive deals
SKY/Broadband/Landline - cut back or look for combined deals.
Entertainment/luxury spends/holidays /clothes - when first starting to live to a budget and tackle debts most people can spend less in one of these areas. Can feel tough at first but can make a big difference to a predicted 'debt free date'

Struggling1987

Thank you guys! Here is my SOA - Some are estimates and please let me know if you think anything sounds way off!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 27
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 12.5
Groceries etc. ......................... 150
Clothing................................ 15
Petrol/diesel........................... 130
Road tax................................ 10
Car Insurance........................... 60
Car maintenance (including MOT)......... 25
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...................... 14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 1178.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 200
Total Assets............................ 1200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
NatWest........................2794.64...50.41.....15.08
NatWest Overdraft..............1700......0.........17.89
Virgin.........................5081......115.......19.17
BarclayCard....................3605......37.13.....18.32
BoS............................1417......14........0
Tesco..........................990.......19........0
Total unsecured debts..........15587.64..235.54....-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 1,178.5
Available for debt repayments........... 121.5
Monthly UNsecured debt repayments....... 235.54
Amount short for making debt repayments. -114.04

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,587.64
Net Assets.............................. -14,387.64


Reproduced on Moneysavingexpert with permission, using other browser.

Thank for everything guys!

Tixy

Are these the costs for just you? Is the adult you share with just a co-renter or is it your partner or relative? i.e are they also paying the same for rent etc?

Struggling1987

These costs are just for me! It's my part of the rent on the SOA. Renting with a friend.

nicp60

Struggling1987 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2 - Just put 1 here if you're just house-sharing
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400 - So this is only 1/2 the rent? It's quite high. Is moving somewhere cheaper possible? Even if it's only for the short term
Management charge (leasehold property).. 0
Council tax............................. 70 - Again, if this is 1/2 it's very high
Electricity............................. 25
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 27
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 12.5
Groceries etc. ......................... 150 I spend less than this for 2 people, so you can cut down here. Start planning meals, do a cupboard audit, batch cook and freeze.
Clothing................................ 15 Get rid of this for now
Petrol/diesel........................... 130
Road tax................................ 10
Car Insurance........................... 60
Car maintenance (including MOT)......... 25 Do you actually put this away every month?
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...................... 14
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 100 Get rid of this for now, or at least chop in half, you can't afford it.
Holiday................................. 100 You can't afford a holiday costing a grand until you're debt free!!
Emergency fund.......................... 0 You definitely need something here, otherwise you'll use the credit cards again if something happens.
Total monthly expenses.................. 1178.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 200
Total Assets............................ 1200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
NatWest........................2794.64...50.41.....15.08
NatWest Overdraft..............1700......0.........17.89
Virgin.........................5081......115.......19.17
BarclayCard....................3605......37.13.....18.32
BoS............................1417......14........0
Tesco..........................990.......19........0
Total unsecured debts..........15587.64..235.54....-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 1,178.5
Available for debt repayments........... 121.5
Monthly UNsecured debt repayments....... 235.54
Amount short for making debt repayments. -114.04

Personal Balance Sheet Summary
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,587.64
Net Assets.............................. -14,387.64


Reproduced on Moneysavingexpert with permission, using other browser.

Thank for everything guys!

I hope my comments above aren't harsh - they're meant to be helpful, not critical or judgmental in anyway!

Do you live in London by any chance? I ask because your rent and council tax is really high compared to your other bills.

One thing that strikes me is that your car is costing you £225 every month - almost 20% of your income. I know it's convenient to have, but I'd consider selling it (even if it's not worth much) if you can travel on public transport for less than £225 a month.

roxy7699

Are water, gas and tv licence included in the rent.
You may find doing a spending diary helps so you can see where money goes.