Lots of debt, Iva or dmp?

Tables

Hi guys, I have no idea if I have posted this in the correct place! I'm new to the forums, after seeing all the brilliant advice given to others in my similar situation, and my issue being slightly different to others I thought I'd post myself, and pray someone can advise me!!!

Here It goes

I have a gross total of approx £43,000 which I owe on 4 unsecured loans, 3 with one bank, 1 with another company( I also bank with the company I ow the 3 loans too, but am in the process of leaving, due to research I have done on Iva and dmp's) the rest of the debt approx £11,000 is scattered over 3 credit cards(some still have 0% deals to 12-18months.

I also joint own my property with my partner, having only just purchased the House, January this year. (Throwing up the equity problem) and also as the debt is totally my fault and all in my name, i would like to keep the house as safe as possible for my partners sake, and even at my own expense. I earn reasonably good money, £16076 a month basic after stoppages, but can nowhere keep up with the payments and live any kind of normal life, I have also been off work sick for 3months mainly because of the stress and worry of the situation and sleepless nights, my sick pay has now stopped, no answer magically appeared! Now I need to decide on what to do and limit the damage as much as possible by making the correct decision now. Advice, gladly, gladly received.

Kind regards, troubled young man

double_mummy

sorry lots of questions but they will help us to give better advice

are these accounts all ongoing or are they defaulted?
what amount do you have available for debt repayments each month?
do you work within a sector where your credit file is important - finance banking etc?
could you post a breakdown of the debts so how much is outstanding on each one its interest rate and its min payment - better yet an SOA
is your monthly income a typo or do you really earn over 16 thousand pounds a month?
is your partner willing to help - either directly or by covering more of the household outgoings so that you have more available for repayments?
when are you expecting to go back to work?

if you can give these a go then we can see what we can do

will go and grab the link for the SOA for you back in a mo

here you go
http://www.stoozing.com/calculator/soa.php

Tables

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\outl0\strokewidth0 \strokec2 [tt]Statement of Affairs and Personal Balance Sheet\
\
Household Information\
Number of adults in household........... 2\
Number of children in household......... 0\
Number of cars owned.................... 0\
\
Monthly Income Details\
Monthly income after tax................ 1640\
Partners monthly income after tax....... 1500\
Benefits................................ 0\
Other income............................ 0\
Total monthly income.................... 3140\
\
Monthly Expense Details\
Mortgage................................ 549\
Secured/HP loan repayments.............. 0\
Rent.................................... 0\
Management charge (leasehold property).. 0\
Council tax............................. 120\
Electricity............................. 80\
Gas..................................... 0\
Oil..................................... 30\
Water rates............................. 25\
Telephone (land line)................... 30\
Mobile phone............................ 22\
TV Licence.............................. 12\
Satellite/Cable TV...................... 79\
Internet Services....................... 30\
Groceries etc. ......................... 300\
Clothing................................ 30\
Petrol/diesel........................... 40\
Road tax................................ 10\
Car Insurance........................... 126\
Car maintenance (including MOT)......... 10\
Car parking............................. 0\
Other travel............................ 0\
Childcare/nursery....................... 0\
Other child related expenses............ 0\
Medical (prescriptions, dentist etc).... 5\
Pet insurance/vet bills................. 0\
Buildings insurance..................... 7\
Contents insurance...................... 10\
Life assurance ......................... 39\
Other insurance......................... 20\
Presents (birthday, christmas etc)...... 15\
Haircuts................................ 10\
Entertainment........................... 20\
Holiday................................. 0\
Emergency fund.......................... 0\
Total monthly expenses.................. 1619\
\
\
Assets\
Cash.................................... 0\
House value (Gross)..................... 132000\
Shares and bonds........................ 0\
Car(s).................................. 0\
Other assets............................ 0\
Total Assets............................ 132000\
\
\
Secured & HP Debts\
Description....................Debt......Monthly...APR\
Mortgage...................... 119000...(549)......3.99\
Total secured & HP debts...... 119000....-.........- \
\
Unsecured Debts\
Description....................Debt......Monthly...APR\
Barclays loan unsecur..........17441.....447.......0\
Creation loan unsecur..........7500......184.......0\
Barclays loan unsecur..........5000......135.......0\
Creation credit ...............4938......23........0\
Capital one credit.............1500......16........0\
Barclaycard credit ............4317......102.......0\
Total unsecured debts..........40696.....907.......- \
\
\
Monthly Budget Summary\
Total monthly income.................... 3,140\
Expenses (including HP & secured debts). 1,619\
Available for debt repayments........... 1,521\
Monthly UNsecured debt repayments....... 907\
Amount left after debt repayments....... 614\
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 132,000\
Total HP & Secured debt................. -119,000\
Total Unsecured debt.................... -40,696\
Net Assets.............................. -27,696\
\
[/tt]}

Tables

Hi thank you, I hope this is what you were referring to? All filled out accurately. Yet I forgot to input the loan rates. Thank you so much for your help I will now answer the other questions

double_mummy

Tables wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1640
Partners monthly income after tax....... 1500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3140

Monthly Expense Details
Mortgage................................ 549
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120 is this over 10 or 12 months?
Electricity............................. 80
Gas..................................... 0
Oil..................................... 30
Water rates............................. 25
Telephone (land line)................... 30
Mobile phone............................ 22
TV Licence.............................. 12
Satellite/Cable TV...................... 79 have you considered cutting back on this?
Internet Services....................... 30
Groceries etc. ......................... 300 for 2 people??
Clothing................................ 30
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 126
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 7
Contents insurance...................... 10
Life assurance ......................... 39
Other insurance......................... 20
Presents (birthday, christmas etc)...... 15
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0 you need something here
Total monthly expenses.................. 1619

Assets
Cash.................................... 0
House value (Gross)..................... 132000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 132000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 119000...(549)......3.99
Total secured & HP debts...... 119000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclays loan unsecur..........17441.....447.......0
Creation loan unsecur..........7500......184.......0
Barclays loan unsecur..........5000......135.......0
Creation credit ...............4938......23........0
Capital one credit.............1500......16........0
Barclaycard credit ............4317......102.......0
Total unsecured debts..........40696.....907.......


Monthly Budget Summary
Total monthly income.................... 3,140
Expenses (including HP & secured debts). 1,619
Available for debt repayments........... 1,521
Monthly UNsecured debt repayments....... 907
Amount left after debt repayments....... 614

Personal Balance Sheet Summary
Total assets (things you own)........... 132,000
Total HP & Secured debt................. -119,000
Total Unsecured debt.................... -40,696
Net Assets.............................. -27,696

thanks that really helps

Tables

All accounts up to date, credit score still reasonable.

I am an employed plumber, having a credit score is not of utmost importance.

My partner is willing to help by buying the bit of shopping and other little
things, but not majorly.

Certainly a typo on the wage! Approx £1600 min

I can return to work ASAP and loose next to no money, but I have been thinking I would like to at least know which way I'm heading with all this, before I do return.

I will also add my partner has opened another account to which all debits from mine will come from hers, so if this hoes ahead and I have no credit available for however many years!!! My wages can be paid cash in to her account, so she can also act as a sort of cover me! And she has 990 credit score.

Thank you so much again

Tables

Should also add, that obviously all loans a credit card payments come from my wages, my partner and I then half the other utility bills

double_mummy

your welcome

personally i would go for a debt management plan either way you are going to take a massive hit on your credit score (hence the importance of an emergency fund just in case)

go to stepchange see what they would advise go and have a play on their website https://www.stepchange.org and see if anything starts making sense

ultimately you have taken the biggest step today by asking for help so well done you!!!!!

longtermplanner

Should also add, that obviously all loans a credit card payments come from my wages, my partner and I then half the other utility bills

So how much can you afford to pay to a DMP or an IVA each month? Not what is the max you could scrape together next month, but how much could you pay every month for 5 or more years?

If you take this payment and divide it into 40k, that will tell you how long a DMP will last in months if everyone freezes interest. Is this unrealistically long?

IVAs at the moment have a big problem for house owners. The new 'standard terms' that were introduced at the start of this year mean that you may be forced to take a secured loan at the end of 5 years and some horrible rates and terms are being quoted for these eg 15%, 20% or even more!

There is another way out of your situation that you might like to consider though. Your combined SoA shows Amount left after debt repayments....... 614

I know this is because of your partner's income and the debts are yours. But one way forward might be for your partner to help pay your debts and keep a record of how much they pay, and for you two to have a legal agreement that this money is deducted from your share of the house equity. (I am assuming here that you own the house 50/50, obviously if your partenr owns all the equity in the house this won't work.)

This route would have the major advantage that your credit rating would not be affected, as a bad rating would make it much more difficult to remortgage.

Bettingmad

Regarding your partner, although the debts are in your name your partners credit score will also take a hit as you are financially associated through the joint mortgage.

Deep_In_Debt

Car Insurance........................... 126
Is your car insurance really £126 pm? Assuming that's a typo...