Cannot afford to pay all our bills, what are the options?

Karen777

It wouldn't hurt to speak to Stepchange or Payplan just to get some advice - you don't have to go with them.

Marisco

Protocol45 wrote: »

I Guess I'm just seeking guidance. A few people have mentioned here that I should cancel my DD's with immediate effect.
.

Well I can tell you how we did it if it would help, although everyones' circumstances are different. We didn't have any arrears on rent or utilities, these were purely debts oh's ex had run up on loans, store cards and a credit card. I just cancelled all the DD's, sat back and waited for the letters to come from the companies, I then responded with a letter explaining the situation, offered an amount and enclosed a income/expenditure list.

This took a bit of time as there was a lot of tooing and froing, letters back and forth etc, most eventually accepted, usually after it had gone to a debt collection agency. A couple didn't so we had to write to the court (it was in Northampton, so no possibility of going down there) again enclosing an income/expenditure, the court agreed with us, and we ended up paying them just a quid!!

Protocol45

Bedsit_Bob wrote: »

Are all your debts really on 0% APR?

No but I don't have the full information to hand as I write this up. I've managed to update the SOE, it's no perfect as I have to wait for my partner to get home to help me with the other bits.


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1444
Benefits................................ 490
Other income............................ 0
Total monthly income.................... 1934

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 160
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 95
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 12
Satellite/Cable TV...................... 25
Internet Services....................... 25
Groceries etc. ......................... 250
Clothing................................ 25
Petrol/diesel........................... 210
Road tax................................ 30
Car Insurance........................... 30
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 10
Holiday................................. 20
Emergency fund.......................... 20
Total monthly expenses.................. 1972


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 6000.....(160)......0
Total secured & HP debts...... 6000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Littlewoods....................265.37....50........0
DFS............................800.......40........0
Littlewoods (Partner)..........400.......50........0
Loan ..........................1000......14........0
Credit Card....................1000......25........0
Credit Card....................1500......40........0
Total unsecured debts..........4965.37...219.......-


Monthly Budget Summary
Total monthly income.................... 1,934
Expenses (including HP & secured debts). 1,972
Available for debt repayments........... -38
Monthly UNsecured debt repayments....... 219
Amount short for making debt repayments. -257

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -6,000
Total Unsecured debt.................... -4,965.37
Net Assets.............................. -10,965.37

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Forgive any errors or omissions, still a WIP.

Marisco wrote: »

Well I can tell you how we did it if it would help, although everyones' circumstances are different. We didn't have any arrears on rent or utilities, these were purely debts oh's ex had run up on loans, store cards and a credit card. I just cancelled all the DD's, sat back and waited for the letters to come from the companies, I then responded with a letter explaining the situation, offered an amount and enclosed a income/expenditure list.

This took a bit of time as there was a lot of tooing and froing, letters back and forth etc, most eventually accepted, usually after it had gone to a debt collection agency. A couple didn't so we had to write to the court (it was in Northampton, so no possibility of going down there) again enclosing an income/expenditure, the court agreed with us, and we ended up paying them just a quid!!

Also, I have penned letters up to Three, Littlewoods and the finance group on behalf of DFS. Is it safe to cancel the DD's and send these off tomorrow? With my attached SOE added of course. On the letters I have offered them a £1 each. Is this wise? Or should I go some something higher? My problem at the moment, that even £20+ is crippling us, which isn't normal I know, but it is none the less.

epitome

Did you claim JSA Conts in September last year?
What happened to JSA?

Claim JSA conts now.

Protocol45

I was claiming that, but since I was full time carer, it was not practical to turn up every week, carrying my son and show them evidence of looking for a job. It was stressful enough when she was working part time. It got to the point where they were talking about me picking up litter and having to attend courses, all of which were impossible looking after my son. I have no one to look after him, except a friend who can only take him a few hours a week, if that.

foolsgold01

Good evening Protocol45....I am sorry you are having all this stress I do understand the sleepless nights and worry that comes with debt problems (check out my signature)!!

I do understand where you are coming from with a place to live. We live in the South and pay £663 per month but this is on an affordable rent scheme with the housing association. Whilst this has contributed to our problems along the way and over time, we feel it could also be a lot worse! Is there any chance you can put your name down on the housing list? I appreciate its not a short fix though.

Regarding children and working...this is tough as is a constant battle. Trust me I understand this too!! We have 2 children (8 and 17months) with different needs to be met. Can you not enquire re childminders? Ours is very understanding about our circumstances! Granted we have been with her for years now but you may find someone could assist you for a few quid an hour rather than nurseries that charge a lot per day? Plus there are childcare vouchers or child tax credits that would still be allowed unless you are earning way too much but this doesn't sound like it would be the case. Or another idea is could you do a juggling act of working nights or evenings? I know this isn't ideal but more income into the home would definitely help.

I agree with others re CAB and getting advice regarding the debts themselves. We have been to them and are still going through the process with them about our finances and they have been absolutely fantastic with us. They pointed us in the direction of Payplan or Stepchange - both free and will assist you with going through a SOA and working things out for you.


Coupled with all the advice on here has certainly helped us and spurred my husband and I on with dealing with our finances. I have joined other boards on here too re paying off more debt per month and there is such a great support I am grateful to everyone personally who has pointed me in the right direction.

Oh yes another thing we have managed to do is drop our grocery bill from £400+ per month to around £280 and still dropping. We got a delivery pass and shop weekly instead of monthly or all the time it used to feel! CAB advised us of this and this has certainly helped us massively (we spend approx. £60 per week now) and this includes nappies, wipes, cat stuff, alcohol and other necessities.

You do though need to be cohesive with your partner and this could be a problem in the long run if not. She can't bury her head in the sand - my hubby did this for a few years until he confessed several weeks ago he had the sleepless nights and cold sweats which he in turn passed to me but we are getting there now but its not going to be easy or quick but we are going at it together.

I don't know whether I have helped at all but I do wish you luck with sorting your debts out and I know its overwhelming and there is a lot of advice out there (all helpful) and between it all I am sure you will get there and by making this step is positive in making that change. Good luck!


FG x

Protocol45

foolsgold01 wrote: »

Good evening Protocol45....I am sorry you are having all this stress I do understand the sleepless nights and worry that comes with debt problems (check out my signature)!!

I do understand where you are coming from with a place to live. We live in the South and pay £663 per month but this is on an affordable rent scheme with the housing association. Whilst this has contributed to our problems along the way and over time, we feel it could also be a lot worse! Is there any chance you can put your name down on the housing list? I appreciate its not a short fix though.

Regarding children and working...this is tough as is a constant battle. Trust me I understand this too!! We have 2 children (8 and 17months) with different needs to be met. Can you not enquire re childminders? Ours is very understanding about our circumstances! Granted we have been with her for years now but you may find someone could assist you for a few quid an hour rather than nurseries that charge a lot per day? Plus there are childcare vouchers or child tax credits that would still be allowed unless you are earning way too much but this doesn't sound like it would be the case. Or another idea is could you do a juggling act of working nights or evenings? I know this isn't ideal but more income into the home would definitely help.

I agree with others re CAB and getting advice regarding the debts themselves. We have been to them and are still going through the process with them about our finances and they have been absolutely fantastic with us. They pointed us in the direction of Payplan or Stepchange - both free and will assist you with going through a SOA and working things out for you.


Coupled with all the advice on here has certainly helped us and spurred my husband and I on with dealing with our finances. I have joined other boards on here too re paying off more debt per month and there is such a great support I am grateful to everyone personally who has pointed me in the right direction.

Oh yes another thing we have managed to do is drop our grocery bill from £400+ per month to around £280 and still dropping. We got a delivery pass and shop weekly instead of monthly or all the time it used to feel! CAB advised us of this and this has certainly helped us massively (we spend approx. £60 per week now) and this includes nappies, wipes, cat stuff, alcohol and other necessities.

You do though need to be cohesive with your partner and this could be a problem in the long run if not. She can't bury her head in the sand - my hubby did this for a few years until he confessed several weeks ago he had the sleepless nights and cold sweats which he in turn passed to me but we are getting there now but its not going to be easy or quick but we are going at it together.

I don't know whether I have helped at all but I do wish you luck with sorting your debts out and I know its overwhelming and there is a lot of advice out there (all helpful) and between it all I am sure you will get there and by making this step is positive in making that change. Good luck!


FG x

PLenty of good advice there, so thank you for that. These times are tough for a lot of people, so I feel my situation is just blurred into other countless ones. But I can only see how things go this end.

In regards to my letters, would it be an error to cancel the DD's to my mobile provider, Littlewoods and DFS and send off these token letters? Or would that be a serious mistake?

Pollycat

Hi Protocol45
just looking at the changes in your revised SOA.

Noticed your groceries have dropped from £400 to £250.

Is this an actual change after checking your credit card bills/bank statement/till receipts or just what you hope to get it down to, based on what other posters have said?

You also now have contents insurance of £10 pm in.
In an earlier post you did say (in your post #23) that you didn't have contents insurance because you couldn't afford it.
I know a previous poster said you needed this and suggested £10 per month but you're not going to go off and ring Direct Line and arrange to pay £120 per year at this stage of your debt, are you? So, imho, it should not be in your SOA.

You've also put £30 pm road tax in but you said (again in post #23 when I queried why you hadn't got anything in for that) that your Fiat was a 'baby' - so are you really paying £360 per year road tax on it.

Your SOA needs to be a proper record of your income & spends, not what you hope it to be - or what other posters have said it should be.

Obviously your debts should be included even if you're not paying anything towards them (because they do exist) but don't put anything in that you know/think you should have but currently don't have e.g. contents insurance.

Good luck, from reading your old posts you've had a rough ride.

[Deleted User]

I agree with Pollycat.

Only adjust your SOA to reflect changes that have occured.

If it contains things that aren't current, it just confuses the issue.

Protocol45

Pollycat wrote: »

Hi Protocol45
just looking at the changes in your revised SOA.

Noticed your groceries have dropped from £400 to £250.

Is this an actual change after checking your credit card bills/bank statement/till receipts or just what you hope to get it down to, based on what other posters have said?

It is more accurate. We used to spend 400, but since going to iceland and being more frugal, it is about £250/300.

You also now have contents insurance of £10 pm in.
In an earlier post you did say (in your post #23) that you didn't have contents insurance because you couldn't afford it.
I know a previous poster said you needed this and suggested £10 per month but you're not going to go off and ring Direct Line and arrange to pay £120 per year at this stage of your debt, are you? So, imho, it should not be in your SOA.

You are right, I have since removed it from the SOA.

You've also put £30 pm road tax in but you said (again in post #23 when I queried why you hadn't got anything in for that) that your Fiat was a 'baby' - so are you really paying £360 per year road tax on it.

I've looked at the paperwork. It is £30 a year, so I've re-adjusted that on the SOA. It was a baby, only recently we are paying for road tax on it.
Here is my hopefully final and revised SOE.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1444
Benefits................................ 490
Other income............................ 0
Total monthly income.................... 1934

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 160
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 47
Gas..................................... 47
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 12
Satellite/Cable TV...................... 25
Internet Services....................... 25
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 210
Road tax................................ 2.5
Car Insurance........................... 30
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
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................................. 20
Emergency fund.......................... 20
Total monthly expenses.................. 1943.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 6000.....(160)......0
Total secured & HP debts...... 6000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Littlewoods....................265.37....50........0
DFS............................800.......40........0
Littlewoods (Partner)..........400.......50........0
Loan (Partner).................1000......15........0
CC (Partner)...................1000......25........0
CC (Partner)...................1500......40........0
Overdraft (Partner)............200.......0.........0
Total unsecured debts..........5165.37...220.......-


Monthly Budget Summary
Total monthly income.................... 1,934
Expenses (including HP & secured debts). 1,943.5
Available for debt repayments........... -9.5
Monthly UNsecured debt repayments....... 220
Amount short for making debt repayments. -229.5

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -6,000
Total Unsecured debt.................... -5,165.37
Net Assets.............................. -5,165.37

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Here is also my template letter to send out to 3 creditors. Is this right? I don't want to cancel DD's and send out letters like this if its not right.

...Since making the above agreement with you, my circumstances have changed. I cannot now afford to make the agreed monthly payments for the following reasons.

I have lost my job and with a young son to look after now full time, finding any monies is extremely difficult.

I enclose a budget sheet which shows my total income from all sources, and my outgoings. As you can see, I have only £2 each month left for my creditors.

In view of my circumstances, would you please accept £1 each month, to be reviewed in six months. If interest or other charges are being added to the account, I would be grateful if you would freeze these so that the debt does not increase.

Should my circumstances improve, I will contact you again.
...

The problem with the above letter with my new SOE, is I don't have enough money to even pay them, in theory. I cant say I have £2 left over, when in fact I am in negative numbers, but I don't know how to phrase it. I've also added my partners details to the SOE.

Update: I've cancelled the DD's. I can't take it. Just this morning another one bounced, this time from paypal. I have sold nearly everything I own on ebay recently and the fees of £9 of course don't come out the bank until months after you sell the items. They just tried to come out, putting me minus £9. I've now cancelled paypal, Three and DFS. I'm not having any more bouncing.