LBM.... again!

Red_Wood

After starting a debt management plan with CCCS in 2010 I fell into financial difficulties again in late 2011, stoping payments and burying my head in the sand once more. I don't have a job at the moment but really want to sort this out.

I filled in a budget on Stepchange and this is the mess I'm in!!

Expenditure
Rent £488
Water £10
Gas £15
Electricity £10
Telephone/mobile/internet £40
Public transport £20
Food, toiletries, cleaning £110
Dentist/opticians £5
Hairdressing £5
Clothing/footwear £10
Sundries/emergencies £10
Loan from family/friends Payments put on hold. Outstanding balance of £1,000
Total expenditure £723

Income
Housing Benefit £412
Jobseekers Allowance £312
Total Income £724

List of creditors
HMRC £569
Housig benefit overpayment £297
HSBC loan £6997 (according to collection agencies letters)
HSBC overdraft £260 (according to collection agencies letters)
NICs owed £719
Working tax credit overpayment £648
Total debt £9490


List of creditors acording to credit report (Noodle)
Moorgate Credit Card £1788
Barclays loan £3060
HSBC £525
Total debt £5373

As you can see there is a discrepency in what I though I owed and what my credit report says, I'm waiting to get a preport form Experian to confirm this, I'm sure I consolidated to the HSBC loan and built up more debt in another current account with them but to be honest have been ignoring everything where my finances are concerned so am not to sure!

Is there a template letter I can send to find out the details of these debts on my report? Where would I even post this to?

Stepchange recomened a Debt Relief Order but I'm hoping to get work soon so would this affect it? Also 10 years down the line I'm worried I will have to tell people this and it will affect my ability to get a morgage if life was to take me that way (I'm 30 now)

I would love you advice.

Sedge123

I'm no expert but it certainly looks like a bit of a dire situation. Can you write to each of your creditors asking for the most up to date balance?

I think you credit file is probably trashed anyway so I wouldn't worry too much about the future at the moment - it's the here and now that's important.

Are you able to find work soon? This seems to be the best way of starting to resolve this.

honey10

Red_Wood wrote: »

Expenditure
Rent £488
Water £10
Gas £15
Electricity £10
Telephone/mobile/internet £40 is there any way to reduce this, even if its just temporarily?
Public transport £20 would a monthly/weekly saver be any cheaper?
Food, toiletries, cleaning £110 This is good, but could you reduce it by batch cooking etc? the old style board have some really great ideas
Dentist/opticians £5
Hairdressing £5
Clothing/footwear £10
Sundries/emergencies £10
Loan from family/friends Payments put on hold. Outstanding balance of £1,000
Total expenditure £723

Income
Housing Benefit £412
Jobseekers Allowance £312
Total Income £724

List of creditors
HMRC £569
Housig benefit overpayment £297 is paying this back causing the shortfall in housing benefit?
HSBC loan £6997 (according to collection agencies letters)
HSBC overdraft £260 (according to collection agencies letters)
NICs owed £719
Working tax credit overpayment £648 what is this for? i think there are rules around paying this back but im not 100%, hopefully someone can clarify
Total debt £9490


List of creditors acording to credit report (Noodle)
Moorgate Credit Card £1788
Barclays loan £3060
HSBC £525
Total debt £5373

I'm sorry I can't help more, but I've just popped a couple of things on.

Also, I just wanted to check that you now have a seperate bank account than the HSBC one, that is really important.

I also think that if you want up-to-date totals from the loans etc, then you could just write to them and ask, however if I'm honest, I think they are the least of your debt worries, HMRC, NIC and housing benefit are the easiest to sort, and the most important.

National_Debtline

Hello there.

Stepchange recomened a Debt Relief Order but I'm hoping to get work soon so would this affect it? Also 10 years down the line I'm worried I will have to tell people this and it will affect my ability to get a morgage if life was to take me that way (I'm 30 now)

Working could have a significant impact on a Debt Relief Order. One of the rules is that you have to have a disposable income of less than £50. If you return to work the DRO could be revoked if that disposable income was to increase to more than that amount. This means that you could be placed back to squre one, so to speak. All that said, DROs are an excellent option as during the year that they operate the creditors would be prevented from chasing you for payment or taking any action through the courts. At the end of the 12 month DRO period the debts would be written-off.

The DRO would be on your credit file for 6 years. Your name would appear on the insolvency register for a little over 12 months.

Here's our guide to DROs to give you a little more info:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

Best wishes,

David @ NDL.

Red_Wood

Thank you all for the advice. I will be writing to my creditors tomorrow for up to date statements, I just don't have the account numbers anymore so fingers crossed they can send me the details.

Thanks for the notes on my budget Honey10, I wish I could get things lower, especially my phone bill but it's on a contract.

My travel is mainly for job interviews and it's £5 a time for return travel into Central London. I've been making clothes tonight out of some fabric a friend gave me has cheered me up a bit! I wish I had saved my money and worked this out a few months ago when I had a job!

honey10

Dependent upon how long you have been in the contract, some networks will work with you to reduce the tariff, maybe even just temporarily if you tell them that you can't afford it, if you mention the network sometimes they will have a rep here who might turn up and help.
With the london travel, forgive me if I;m wrong, I'm from that there North :-P Would it not be cheaper to park outside central london and get the bus/tube? Or get a travel card of some sort?

Red_Wood

I'm with Three, I'll give calling them a go, thank you.

I'm Zone 2 in London, its £2.80 for a single or £7 for a travel card! So expensive! I normally cycle everywhere but turning up to an interview all sweaty and flustered isn't a good look!

honey10

Something I just saw after a quick google, I'm not sure it applies to you but the tfl website says something about a Jobcentre Plus discount card, it does seem to reduce the price quite a bit. It definitely looks like something that might help reduce your spend if you could get one.