My S.O.A. ~ Have I got any chance?

spurs501_2

Gemmzie wrote: »

Okay there's a variety of APRs and balances, so you need to work out realistically how much you can afford to pay the cards and then work out a pro-rata payment. This is the most effective way to get them to accept reduced payments and freeze interest

Okay, here's a question for you!!

If I've got, say, £500 per month to throw at my Credit Card debts, how do I work out how much to offer to each creditor, to make a pro-rata offer. If someone could tell me the equation i.e explain how to workout how to divide my £500 evenly between the creditors on a pro-rata basis I would very much appreciate it.

gollygosh

ooh i can do this one! £500 divided by £36,710 = £0.0136203
then multiply each debt IE. co-op £5160 by £0.0136203 = £70.28
virgin =£40.86
Sony =£24.52
Amex =£42.22
cap 1 =£43.58
goldfish =£76.95
Lloyd's =£134.84
egg =£19.07
sky =£47.67
total £499.99 the penny was lost in my rounding!!!

spurs501_2

thecornflake wrote: »

Hi,

Can you let us know how much you are paying on the credit cards each month?

Plus your gas and electric sound quite high. How big is your house?

Hi. Thanks for replying, My house is only a two bed semi, so do you think my gas and electric is high then? How much do you think I could get my gas and electric down to then?

With regards to the credit cards, I only ever pay the minimum (or even less)

spurs501_2

gollygosh wrote: »

ooh i can do this one! £500 divided by £36,710 = £0.0136203
then multiply each debt IE. co-op £5160 by £0.0136203 = £70.28
virgin =£40.86
Sony =£24.52
Amex =£42.22
cap 1 =£43.58
goldfish =£76.95
Lloyd's =£134.84
egg =£19.07
sky =£47.67
total £499.99 the penny was lost in my rounding!!!

Thanks a lot for working this out for me, very much appreciated.

david_hellier

Hi,

Thanks for the further information. In order for you to eat, I'm afraid you do not have £500 per month to throw at the cards. According to my figures you can afford to pay each card £31 per month. This leaves you with £50.43 per week for food and anything else. However, at this low repayment figure it will make little difference to your debts unless you can get the banks to freeze the interest. Therefore I suggest that unless they agree, you will have little choice but to file for bankruptcy. You may wish to contact CCCS to take further advice in forming a DMP. Alternatively sell your house, payoff your debts and rent. Whichever way you go, do not make any more purchases using cards, cut them up.

Good luck, the figures:

incomeweeklymonthlyself £ 2,000.00 partner total0.002000.00divide by 4.33 £ 461.54 £ 461.54 total weekly incomespendweeklymonthlyrent/mortgage £ 660.00 council tax £ 90.00 elec £ 35.00 gas £ 35.00 water £ 35.00 secured loans £ 450.00 TV licence £ 12.00 fines £ - bt £ 12.00 mob £ 50.00 car ins £ 22.00 car tax £ 12.50 petrol £ 120.00 coop cc £ 31.00 virgin £ 31.00 sony £ 31.00 amex £ 31.00 cap 1 £ 31.00 goldfish £ 31.00 lloyds £ 31.00 egg £ 31.00 total0.00 £ 1,781.50 divide by 4.33 £ 411.12 £ 411.12 total weekly spendStart= income - spend = £ 50.43 per week

gollygosh

you're very welcome. now get those statements out and check to see if you would be paying more than the minimum on any, then you can offset that against the bigger ones. that will give you a clearer picture as to whom you really need to be speaking to regarding interest rates.

spurs501_2

david_hellier wrote: »

Hi,

Thanks for the further information. In order for you to eat, I'm afraid you do not have £500 per month to throw at the cards. According to my figures you can afford to pay each card £31 per month. This leaves you with £50.43 per week for food and anything else. However, at this low repayment figure it will make little difference to your debts unless you can get the banks to freeze the interest. Therefore I suggest that unless they agree, you will have little choice but to file for bankruptcy. You may wish to contact CCCS to take further advice in forming a DMP. Alternatively sell your house, payoff your debts and rent. Whichever way you go, do not make any more purchases using cards, cut them up.

Good luck, the figures:

incomeweeklymonthlyself £ 2,000.00 partnertotal0.002000.00divide by 4.33 £ 461.54 £ 461.54 total weekly incomespendweeklymonthlyrent/mortgage £ 660.00 council tax £ 90.00 elec £ 35.00 gas £ 35.00 water £ 35.00 secured loans £ 450.00 TV licence £ 12.00 fines £ - bt £ 12.00 mob £ 50.00 car ins £ 22.00 car tax £ 12.50 petrol £ 120.00 coop cc £ 31.00 virgin £ 31.00 sony £ 31.00 amex £ 31.00 cap 1 £ 31.00 goldfish £ 31.00 lloyds £ 31.00 egg £ 31.00 total0.00 £ 1,781.50 divide by 4.33 £ 411.12 £ 411.12 total weekly spendStart= income - spend = £ 50.43 per week

Hi David Hellier.
Thanks for the scary (but probably realistic) overview of my current situation.

I have written to ALL my creditors about reduced payments and so far 5 have replied accepting a freeze in interest and lower monthly payments. I know this will screw my credit rating but I'm committed to paying this debt as I WAS the person who ran it up to this level after all. Bankruptcy is scary, and believe me I have considered looking into it, but I have pride which would rather try to work through this. There is plenty of overtime available to me at the moment and I'm taking advantage of this, and I have most meals etc with family so my "ruuning costs" (apart from my debts) are reasonably low. I have cancelled SKY, lowered my mobile tarriff, and reduced my social nights out, all in the last month in a determined effort to get on top of this situation. Thanks again for the response and any further advice / suggestions would be greatly appreciated.

gollygosh

Keep posting for support and to let us know how you're getting on. I've been around forever(used another name)and i don't post much but i'm feeling really positive about you!

lynzpower

Could you get a lodger into your spare room?

If you could , I expect you could be looking at a good few hundred a month tax free ( you can earn up to 4400 per year I believe on the rent a room scheme)

spurs501_2

Thanks for all the replies!

Anyone else got any ideas / opinions / critisisms!!!!

Thanks in advance.