Unrealistic Budget - better to DMP or keep trying?

igaveupnowimback

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 170
Total monthly income.................... 1170

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 375
Management charge (leasehold property).. 0
Council tax............................. 93
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 16
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 10
Internet Services....................... 15
Groceries etc. ......................... 160
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 831


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................5100......0.........16.9
credit card 2..................170.......0.........34.9
credit card 3..................180.......0.........34.9
overdraft 2....................440.......0.........1.4
overdraft 1....................500.......0.........1.4
catalogue 4....................55........0.........0
catalogue 3....................50........0.........0
catalogue 2....................440.......0.........39.9
catalogue 1....................1600......0.........39.9
Total unsecured debts..........8535......0.........-


Monthly Budget Summary
Total monthly income.................... 1,170
Expenses (including HP & secured debts). 831
Available for debt repayments........... 339
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 339

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,535
Net Assets.............................. -8,535

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

igaveupnowimback

Didn't know how to post SOA and comment at same time. This is the budget I TRY to adhere to, but obviously I have allowed nothing in some necessary areas and I end up getting caught out and not managing, or I pay so much to debts one month and fall down the next because it's so hard. Am trying to snowball debts, with some (slow) success. DMP suggested by Stepchange, am a bit afraid of the possible hassle from companies, but although my budget looks somewhat manageable here it may be too gruelling for the long run. Any ideas, anyone? Thanks in advance.

RAS

How much are you supposed to be paying each month on the debts?

Do you have any spare capacity on the 16.9% card (what is the limit)?

Have you double checked www.turn2us.org.uk?

And is there any way the other adult can find paid employment? Even very part-time?

To add; you may not need presents and pet insurance but you NEED something in the necessary areas and an emergency fund so that you do not get caught out.

And anything you can sell as even £100 could make a difference.

-taff

You have nothing for an emergency fund, or medical needs, or contents insurance.
I would look at including something there first.

igaveupnowimback

Hi, other adult is my son and he is working and contributing, he also helps reduce my transport costs as he gives me lifts to and from work whenever shifts don't collide. I am afraid to take out insurances when I am so far in debt, although I can see I should. Yes, have used turn2us often, not entitled to anything. Minimum payments come to @ £290 monthly. Thanks.

RAS

igaveupnowimback wrote: »

Hi, other adult is my son and he is working and contributing, he also helps reduce my transport costs as he gives me lifts to and from work whenever shifts don't collide.

Minimum payments come to @ £290 monthly. Thanks.

Ok - so how much do those lifts save you per month? Because your son needs to be contributing £372.50 to cover half the fundemental costs of living in your house (and I have not included the landline). So would getting to work cost you £200 per month?

This is why you cannot afford to clear your debt and quite possibly why you got into the situation in the first place.

As before, do you have any spare capacity on the 16.9% credit card

igaveupnowimback

Hi, sorry, no spare capacity on it. Reasons I got into debt are many and believe me, both myself and my son are ultra responsible citizens in every other way. I can't ask him to pay another £200.

RAS

igaveupnowimback wrote: »

Reasons I got into debt are many and believe me, both myself and my son are ultra responsible citizens in every other way. I can't ask him to pay another £200.

Hi

You have to ask him to pay half the costs of living in the house. Otherwise you might as well give up trying to pay off the debt.

I know it is harsh because the parents of wealthy parents can have holidays and cars and hobbies and not even work but the kids of parents on low income have to pay their whack.

We see masses of single parents with adult children in dire straits because they fail to ask junior to pay what the state expects them to contribute to the household budget.

There is no way he would find a shared house and utilities elsewhere for that amount.

igaveupnowimback

Hi, I get what you are saying. I just can't. Yes it is unfair, it was unfair when he worked lots of hours in addition to college when his mates didn't need to, it was unfair when they went on to uni with support from their parents and my son had to stick with his original job and give up the chance to go. He has had so much unfairness, deals with an ongoing serious health problem daily/hourly, works hard, with really late finishes and does not earn a lot. He runs his car, needs to for work. I will keep trying, I just wondered if DMP may be a better way to go. Thanks.

RAS

Do speak to Step change or Natinal Debt line, please.

-taff

Phone then ^ and ask what you could do.

If your situation is the same as the one that go you into debt, you need to deal with that first.