Debt free wannabee

raptor1261

Just took the step to address my debts after my hours were cut at work. No arrears but had a car on HP which cost me £32000.

Mercedes are in the process of buying this back for £24600 which leaves me with a 3k shortfall. Important lesson learnt here!!!

Debt free in 5 years is my goal. Mortgage not included in the figures and no arrears on the accounts. Important to take actions before this happens.

Barclaycard £2.4k
MB Finance £3k
Natwest loan £6.4k
Natwest Credit card £4.6k
Argos £614
Creation £1.2k
Ikano £648
Littlewoods NIL

Total unsecured Debts £18862 July 14

DMP sent off to Stepchange today. Can anyone give some experiences of dealing with these companies? Do they put defaults onto your credit file if you are in a DMP?

sourcrates

Hi, and welcome to the forum.
Always best to fill in one of these first :


http://www.stoozing.com/calculator/soa.php


then the good folk on here can pick apart your spending habits !!
Seriously, there are some knowledgeable people on here, who can maybe offer good advise on your income/expenditure etc, and where possible savings can be made.

raptor1261

Link not working!

Tixy

Seems that the stoozing.com is down temporarily. Hopefully they will have it back up and working soon.

On a DMP it is likely that your creditors will issue defaults, although with some creditors it does depend on the size of your payments compared to the original minimum payment.

sourcrates

raptor1261 wrote: »

Link not working!

Working now, for me anyway

raptor1261

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1083
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 1109
Total monthly income.................... 2192

Monthly Expense Details
Mortgage................................ 489
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 16
Gas..................................... 50
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 22
Mobile phone............................ 42
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 3
Groceries etc. ......................... 220
Clothing................................ 40
Petrol/diesel........................... 80
Road tax................................ 5
Car Insurance........................... 27
Car maintenance (including MOT)......... 10
Car parking............................. 4
Other travel............................ 234
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 16
Pet insurance/vet bills................. 20
Buildings insurance..................... 9
Contents insurance...................... 7
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 8
Entertainment........................... 10
Holiday................................. 10
Emergency fund.......................... 10
Professional Fees....................... 5
Credit Union............................ 25
ISA..................................... 50
Total monthly expenses.................. 1577


Assets
Cash.................................... 200
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 151200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 136000...(489)......2.64
Total secured & HP debts...... 136000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2375......70........24.9
Natwest Credit Card............4595......138.......17.9
Natwest Loan...................6383......194.......20.9
Ikano..........................648.......24........0
Mercedes Benz..................3000......150.......5
Argos..........................614.......31........29.9
Creation.......................1250......51........29.9
Total unsecured debts..........18865.....658.......-


Monthly Budget Summary
Total monthly income.................... 2,192
Expenses (including HP & secured debts). 1,577
Available for debt repayments........... 615
Monthly UNsecured debt repayments....... 658
Amount short for making debt repayments. -43

Personal Balance Sheet Summary
Total assets (things you own)........... 151,200
Total HP & Secured debt................. -136,000
Total Unsecured debt.................... -18,865
Net Assets.............................. -3,665

Created using the SOA calculator at .
Reproduced on Moneysavingexpert with permission, using other browser.

-taff

You can cut money on your mobile/telephone bill by changing provider and either opting for a sim free deal, or a bundle including broadband.

Television license - you can scrap that if you have broadband, and either watch the Iplayer/equivalent, or subscribe to netflix/amazon for 6 a month.

Groceries can be cut to 200 easily if you shop at lidls or similar [I'm buying all my veg and fruit there now, it's easily a third off the price of sainsburys], see the Old Style board for more info on meal planning/buying food.

If you are single with no dependants, you don't need life insurance, you'd be better off with CI and/or Income protection. They will be more expensive, but will be more useful hould something happen to you.

raptor1261

Wow...great budgeting tool to use...put things in perspective and not as bad as i feared. Any tips would be welcome tho.

Im tied into a 24 month contract on mobile and i thought food was high so Ive brought that down.
Life Assurance is to meet the mortgage repayments.

-taff

What does other travel cover?

raptor1261

bus to work. I work over 40 miles away so costs 54quid a week

Toomuchdebt

If you have a car which I presume is not the car that was on HP as Mercedes are buying it back(as I see car insurance and petrol in the soa) then why are you taking the bus to work at £54 a week? Why not get rid of the car totally ?