Is it all too late???

foolsgold01

Hello there,


I am new to this forum and I am hoping there is some help out there that you wonderful people may be able to offer.

My husband and I have debts, not jointly as they are in our individual names. However, they jointly total £48k. We have separate current accounts too.


We have seeked advice from CAB who put us in touch with PayPlan whom we have spoken with twice and tomorrow she will be calling us back regarding our options.

The problem I have is I DO NOT want to go down the IVA route. My husband however I think is at the point of saying enoughs enough and wants to be rid of debt. We aren't at the stage of phone calls and door bells ringing however my hubby has been extremely anxious about all the debt in his name (approx. £38k - mine is about £10k) and has sleepless nights, cold sweats, palpitations and its for this reason I am concerned.


From our meeting with CAB and more so after speaking with PayPlan , I have realised how bad the problem really is! My HUGE concern is my career. I work for the Police for a start (civilian) but one day could get the opportunity of being a legal secretary/solicitor type work. This opportunity did come up before for me but I turned it down. So I am extremely reluctant as I am sure you all may understand. But I don't want to wholly focus on this but rather how to get out of the debt we are in.


I read Martin Lewis saying he's yet to see a debt case that isn't solvable, it might not be quick and easy but it is always solvable and hence I find myself talking to all you lovely people.


So my questions is - is it all too late to manage ourselves or not? I am happy to do what I can to get us out of this mess but I am not sure how to and what to do or how to do it.

I have completed a SOA which I will post after this and we are happy for you to pick through this, ask us any questions and offer any help you may be able to give? There is so much to add re our circumstances but I hope I may be able to answer these as we go if this is ok?


Oh one other quick thing is we have applied to open up a joint 'basic' current account this week with Nationwide for our salaries to go in (but hubby has a £1,800 overdraft currently in use with Lloyds ).

Thank you for your help

timeforaction_2

Im in a similar situation to you but im looking at a dmp

HappyMJ

It's never to late for anything but you do have to put everything on the table and that includes IVA's and Bankruptcy and if that is the best option then that is the best option.

It does not stop you from continue working with the police. They want to see you are managing your debts in a legal way and that is a valid way to deal with your debts. They would rather you did this than go to an unregulated lender who could bribe you to do certain things for you in return for special favours.

The police even have special charities to help you with your debt problems so instead of speaking with CAB I'd be speaking with them who will specialize in cases like yours.

foolsgold01

Thank you everyone for your help so far . My computer had a wobbly and I had to do the SOA again!!!


Bit of background: We have 2 cars (and live in a rural location), 2 children (16 months and an 8 year old) coupled with CSA payments for husbands daughter and we both work (both looking at increasing our income with better paid jobs but the SOA is obviously as it stands now) but here is it and thank you x


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 999.85
Partners monthly income after tax....... 1391.53
Benefits................................ 135
Other income............................ 11
Total monthly income.................... 2537.38
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 663.75
Management charge (leasehold property).. 0
Council tax............................. 134
Electricity............................. 35
Gas..................................... 45
Oil..................................... 0
Water rates............................. 33.3
Telephone (land line)................... 20
Mobile phone............................ 39.44
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 7
Groceries etc. ......................... 400
Clothing................................ 20
Petrol/diesel........................... 270
Road tax................................ 22
Car Insurance........................... 73.95
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 70
Other child related expenses............ 138.66
Medical (prescriptions, dentist etc).... 6.17
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 30.11
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 40
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2150.5

Assets
Cash.................................... 1800
House value (Gross)..................... 0
Shares and bonds........................ 285
Car(s).................................. 11000
Other assets............................ 0
Total Assets............................ 13085

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan...................12000.....232.9.....6.4
Barclaycard C/C................361.85....5.........18.9
Lloyds loan....................25862.4...359.2.....8.4
MBNA C/C.......................3013.21...45........1.9
Barclaycard C/C................210.01....5.........18.9
Total unsecured debts..........41447.47..647.1.....-

Monthly Budget Summary
Total monthly income.................... 2,537.38
Expenses (including HP & secured debts). 2,150.5
Available for debt repayments........... 386.88
Monthly UNsecured debt repayments....... 647.1
Amount short for making debt repayments. -260.22
Personal Balance Sheet Summary
Total assets (things you own)........... 13,085
Total HP & Secured debt................. -0
Total Unsecured debt.................... -41,447.47
Net Assets.............................. -28,362.47

double_mummy

foolsgold01 wrote: »

Thank you everyone for your help so far . My computer had a wobbly and I had to do the SOA again!!!


Bit of background: We have 2 cars (and live in a rural location), 2 children (16 months and an 8 year old) and both work (both looking at increasing our income with better paid jobs but the SOA is obviously as it stands now) but here is it and thank you x


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 999.85
Partners monthly income after tax....... 1391.53
Benefits................................ 135 child benefit?
Other income............................ 11 what is this can it be increased?
Total monthly income.................... 2537.38
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 663.75
Management charge (leasehold property).. 0
Council tax............................. 134 is this over 10 or 12 months?
Electricity............................. 35 have you shopped around for these?
Gas..................................... 45
Oil..................................... 0
Water rates............................. 33.3
Telephone (land line)................... 20
Mobile phone............................ 39.44 is this contract? switch to cheap PAYG asap
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 7
Groceries etc. ......................... 400 go to the O/S board im sure you can get this down a bit
Clothing................................ 20
Petrol/diesel........................... 270 can you get this down at all?
Road tax................................ 22
Car Insurance........................... 73.95 can this come down at all?
Car maintenance (including MOT)......... 30 is this realistic?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 70 are you using childcare vouchers and tax credits if poss?
Other child related expenses............ 138.66 what is this?
Medical (prescriptions, dentist etc).... 6.17
Pet insurance/vet bills................. 50 EACH MONTH!!!!!! wow can you get this down?
Buildings insurance..................... 0
Contents insurance...................... 30.11 can this come down at all?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 really nothing here with 2 kids?
Haircuts................................ 40 can you drop this to every other month?
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2150.5

Assets
Cash.................................... 1800
House value (Gross)..................... 0
Shares and bonds........................ 285
Car(s).................................. 11000
Other assets............................ 0
Total Assets............................ 13085

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan...................12000.....232.9.....6.4
Barclaycard C/C................361.85....5.........18.9
Lloyds loan....................25862.4...359.2.....8.4
MBNA C/C.......................3013.21...45........1.9
Barclaycard C/C................210.01....5.........18.9
Total unsecured debts..........41447.47..647.1.....-

Monthly Budget Summary
Total monthly income.................... 2,537.38
Expenses (including HP & secured debts). 2,150.5
Available for debt repayments........... 386.88
Monthly UNsecured debt repayments....... 647.1
Amount short for making debt repayments. -260.22
Personal Balance Sheet Summary
Total assets (things you own)........... 13,085
Total HP & Secured debt................. -0
Total Unsecured debt.................... -41,447.47
Net Assets.............................. -28,362.47

you have 1800 in savings why not pay off the 2 low balance credit cards? they are the highest interest

this is actually really do able with some cut backs

do the loans have any over payment charges? are they all with original creditors? are any of them defaulted?

HappyMJ

To be honest I can't really see much that can be cut. A few pounds here and there but that won't leave you any emergency buffer.

You have 2 children one of a very young age and 2 cars which you need to be able to work.

Nearly £300 a month is hard to find and while the youngest requires care I really don't think you'll be able to find it for a few years.

Are you claiming all the benefits to which you are entitled? Tax credits maybe?

The interest rates on your debts isn't really that high either.

The only thing I could really suggest is to sell the cars and buy less expensive ones....but they'll have higher maintenance costs.

You could try using the cars much less but as you say you live in a rural area that may not be possible.

You have no allowance for birthdays/christmas and your £20 a month clothing allowance is quite low. You also have no life insurance policy. What would you do if one of you died and the other could not work for a few years to look after the children?

sillyspud

FoolGold01
It's true when there say there is a way out of any debt. I had £15500 of debt in my name that the wife didn't know about. She stays at home to look after our 1 year old so I was desperate to support the family and used credit cards and loans.
I called PayPlan who have been fantastic from the very start. I am 6 months into a DMP and have paid £2500 off my debt through overtime in work although I am currently saving to clear a £3000 debt off a credit card and should do so in the next 2-3 months time.
An IVA is an option, my friend went into one when he had debts in excess of 50K but an IVA is a legal agreement with many catches and any additional money brought in through PPI claim backs or lottery wins even are taken off you and the IVA will still be in place for 5 years.
My DMP might have ruined my credit history for the next 6 years at least but i can now sleep at night! I work for the ambulance service and was worried that I might get into trouble with my professional bodies but in the end they were very supportive and gave me all the help they could.
Consider all your options, but a DMP is a good way of doing things informally and voluntarily without solicitors. Once you go into an IVA you are stuck in it and can't pay off the debt any quicker, on the plus side you might be able to wipe debt off.
Listen carefully to what PayPlan tell you and don't be afraid to call them with what might seem to be a silly question. They have always had time to listen to me!
Hope you get sorted and all the best :-)

[Deleted User]

foolsgold01 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 999.85
Partners monthly income after tax....... 1391.53
Benefits................................ 135
Other income............................ 11
Total monthly income.................... 2537.38
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 663.75
Management charge (leasehold property).. 0
Council tax............................. 134 - If this is over 10 months, swapping to 12 months will reduce it to £111-66.
Electricity............................. 35
Gas..................................... 45
Oil..................................... 0
Water rates............................. 33.3
Telephone (land line)................... 20
Mobile phone............................ 39.44 - This is a little high. Go PAYG/sim only (about £10 per phone) ASAP.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 7
Groceries etc. ......................... 400
Clothing................................ 20
Petrol/diesel........................... 270
Road tax................................ 22
Car Insurance........................... 73.95 - This is nearly £900 pa. Is there a reason it is so high?
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 70
Other child related expenses............ 138.66 - What does this cover?
Medical (prescriptions, dentist etc).... 6.17
Pet insurance/vet bills................. 50 - Is there a reason this is so high?
Buildings insurance..................... 0
Contents insurance...................... 30.11 - This seems high. Check comparison sites for a better deal.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - Nothing ever?
Haircuts................................ 40 - This is £480 per year. Can you reduce it?
Entertainment........................... 0 - Nothing ever?
Holiday................................. 0 - Not even days out?
Emergency fund.......................... 10 - How much do you currently have saved?

Total monthly expenses.................. 2150.5

Assets
Cash.................................... 1800 - Use some of this to kill off the Barclaycards.
House value (Gross)..................... 0
Shares and bonds........................ 285
Car(s).................................. 11000 - Could you sell one or both, and buy something cheaper?
Other assets............................ 0
Total Assets............................ 13085

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan...................12000.....232.9.....6.4
Barclaycard C/C................361.85....5.........18.9
Lloyds loan....................25862.4...359.2.....8.4
MBNA C/C.......................3013.21...45........1.9
Barclaycard C/C................210.01....5.........18.9
Total unsecured debts..........41447.47..647.1.....-

Monthly Budget Summary
Total monthly income.................... 2,537.38
Expenses (including HP & secured debts). 2,150.5
Available for debt repayments........... 386.88
Monthly UNsecured debt repayments....... 647.1
Amount short for making debt repayments. -260.22
Personal Balance Sheet Summary
Total assets (things you own)........... 13,085
Total HP & Secured debt................. -0
Total Unsecured debt.................... -41,447.47
Net Assets.............................. -28,362.47

At the current rate of payment, the two Barclaycards will take 140 months (nearly 12 years :eek: ) and cost you £828 in interest (£256 more than the current balances) to clear.

My advice would be to use £572, of your £1,800 savings, to pay them off now.

HappyMJ

Bedsit_Bob wrote: »

At the current rate of payment, the two Barclaycards will take 14 months to clear, and cost you £828 in interest (£256 more than the current balances) to clear.

My advice would be to use £572, of your £1,800 savings, to pay them off now.

I think the £1,800 positive balance is a mistake as the first post says the hubby has a £1,800 overdraft currently in use and that's not listed.

foolsgold01

Thankyou Happy MJ, Double Mummy and SillySpud. I am stuggling how to quote and write beneath the quote too so my apologies.


Thank you DoubleMummy - The £138 is CSA which is an Essential Payment, you have raised a few good points too about cutting back too; our gas/electric, telephone and broadband is all one payment of £105 per month I thought this was a good deal? Yes we use childcare vouchers which gets taken out every month and I haven't included this in my take home pay just the extra I have to pay out which is approximate each month. This month is bad though as its the summer hols with 2 children but more often about £50 extra I need to pay. The pet box I have included everything - insurance, food, expenses - we have a pedigree cat but didn't pay a pedigree price but she can't eat certain foods as has a flat face, is an indoor cat hence cat litter and I have included her yearly jabs too. Do you think we could still get this cost down? You're right I forgot about presents etc...I do try and save/buy when I can see things about £20 a month including Xmas does that sound good or not? I really don't know how much I should be allowing!


Thank you HappyMJ both you and DoubleMummy note re the cars. My hubby has a bit of a banger but I don't :-S My car is probably worth a good £9k maybe £10k and I agree, to downsize and privately sell this thereby paying off my loan of £10k and using my savings of £1800 to buy something smaller? That would give us £235 more per month!


Thank you SillySpud and for sharing your predicament. It sounds like you are now seeing the wood through the trees. My hubby too works for the ambulance service. He therefore can do overtime (although limited). He does work for out of hours doctors too on a Sunday. Thank you for sharing information about IVAs and DMPs on a personal level as its this detail which is of interest too and how it effects people out in the real world! I think I prefer (as does my hubby) the DMP route but we have combined debt of about £48k which is a lot.


We are also looking (for the first time ever) combining our money together in a joint account that we have applied for (a basic cash card account). Our BIG problem is his overdraft at £1800 and i am not sure how this works when he moves his income from this account into the new joint account in 'protecting our assets' as CAB said....Any guidance on this would be fantastic.


Thank you sooooo much everyone at a time when we suddenly feel the walls closing in and not a great place to be this but this forum offers us a great deal of support thank you x

double_mummy

always happy to be about

with the cats jabs i know our local vet does a pre paid thing where if you buy say 2 years worth its cheaper and have a chat with your vet for anything they can do to help - food are you buying this online if they need special stuff?

how much do you normally spend? i buy through out the year for bdays and xmas but i know what my budget is for each thing and when i hit it that is it (i love the grabbit section on here) i usually do about £40 per month for all pressies for my big one we usually do a day out instead of a party or something this year it is harry potter world i cant wait

the cars one is a very good idea if yours is worth a lot and 235 would be a great saving each month just make sure you check for any early repayment fees or penalties

with your new account make sure that it is one that does not have the right of offset - so its not linked to the one hubby has his OD with - nationwide is good if his od is with lloyds

you can set up a standing order each month for X amount of money to go towards the overdraft so that you are paying it down as well

if you are doing overtime work on a 50% basis - 50% towards the debt and 50%goes to a treat fund to make sure you arent going stir crazy so pick a treat and once the pot is full enough you can have it whether its a takeaway for a day out or whatever you guys enjoy as a family

i really do think with a bit of belt tightening you could have this all cracked in a couple of years
xxx