where to start

fishfinger1

rockabillygirl wrote: »

Hi Fishfinger1, just wanted to say well done on taking the first step to tackling your debt. It can be very hard facing the reality, but you will feel so much better once a plan is in place to manage things. X

Thankyou its all very daunting im not very good at this kind of stuff which Is why im in this mess in the 1st place, I keep reading the forums then finding myself not doing anything about it

sourcrates

fishfinger1 wrote: »

so if I have received account termination letters does that mean I have been defaulted? how will I know if its been passed to a DCA im guessing I will receive a letter through the post, I have a letter from Natwest saying they require full payment within 14 days if they don't receive payment it will be passed for further recovery action, is that basically saying it will be passed to a DCA?

You will receive a "default notice" in the post, it will give you 28 days to bring your account up to date, and specify what you should pay.
Account terminated is probably there terminology for the same thing, but you should receive a default notice just the same, some lenders default later than others, Barclaycard for example.
It wont go straight to a DCA, many lenders have there own "inhouse" collections dept, who will attempt collection first, that may take 6 months or so.


You will be written to advising if/or when, the account is been passed to debt collectors.

KirstyO

fishfinger1 wrote: »

I have a letter from Natwest saying they require full payment within 14 days if they don't receive payment it will be passed for further recovery action, is that basically saying it will be passed to a DCA?

Pretty much. If they have an in-house one it normally starts there as it costs them less to administer it. The DCA will start by sending letters similar to the bank (pay up to prevent further action), you can normally make an arrangement to pay with them.


I would strongly recommend online debt remedy with stepchange. They will tell you all of your options and then you can decide whether to go with them in one of their options, go elsewhere for a similar outcome or go it alone.


I ended up in a DMP and it was brilliant, you get left with all of the money you need to live off and anything over that goes to debts. If you're not in a position for a DMP, stepchange will be able to advise. They are friendly, non-judgemental and will have always dealt with someone in a far worse debt situation than yourself.


Good luck! See it as a challenge, not as a defeat!

fishfinger1

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................ 1373
Partners monthly income after tax....... 1137
Benefits................................ 148
Other income............................ 0
Total monthly income.................... 2658
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 167
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 136
Electricity............................. 40
Gas..................................... 50
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 17.99
Mobile phone............................ 80
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 265
Clothing................................ 60
Petrol/diesel........................... 220
Road tax................................ 33
Car Insurance........................... 60
Car maintenance (including MOT)......... 50
Car parking............................. 6
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 46
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 35
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
pet food................................ 10
childrens pocket money ................. 20
tax credit repayment.................... 20
sofa.................................... 27
Total monthly expenses.................. 2130.99

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 700
Other assets............................ 0
Total Assets............................ 700

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 6000.....(167)......5
Total secured & HP debts...... 6000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard....................5674......0.........0
barclaycard....................6809......0.........0
natwest........................2337......0.........0
barclaycard....................3425......0.........0
tesco..........................2681......0.........0
lloyds.........................3000......0.........0
argos..........................1000......0.........0
virgin.........................3776......0.........0
nationwide.....................2007......0.........0
yorkshire bank.................1705......0.........0
Total unsecured debts..........32414.....0.........-

Monthly Budget Summary
Total monthly income.................... 2,658
Expenses (including HP & secured debts). 2,130.99
Available for debt repayments........... 527.01
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 527.01
Personal Balance Sheet Summary
Total assets (things you own)........... 700
Total HP & Secured debt................. -6,000
Total Unsecured debt.................... -32,414
Net Assets.............................. -37,714




So the Barclaycard with £3425 Lloyds Tesco and Argos card are all my partners debts the rest of them are mine, her 4 debts are all under control and payments being made as normal, mine are the problem debts, should we be looking to just sort out my debts or all of them collectively, we are not tied together finacially

greensalad

fishfinger1 wrote: »

Number of cars owned.................... 2 - can you afford two cars on your income?
Secured/HP loan repayments.............. 167 - guessing this is the car?
Mobile phone............................ 80 - two very expensive contracts for someone in debt
Groceries etc. ......................... 265 - very high for two adults
Clothing................................ 60 - pretty high, you can't afford this
Presents (birthday, christmas etc)...... 50 - very expensive, £600 a year for gifts?
Entertainment........................... 0 - you spend £35 on haircuts but nothing on entertainment?
Holiday................................. 50 - you cannot afford a holiday

Available for debt repayments........... 527.01 - so where is this money then?

Comments above.

You have £571 leftover a month. Why aren't you able to use that to pay your debts?

fishfinger1

make_the_change wrote: »

I too am at the start of my journey and it's very scary. But this board has been a life saver for me and if you have any questions, there are lots of people here to help and offer great advice. I also find posting on the thread about daily DFW things helps me stay focused and there are lovely people around to talk to should you be having a bad day. Good luck x

have you used stepchange or did you choose to go it alone

fishfinger1

greensalad wrote: »

Comments above.

You have £571 leftover a month. Why aren't you able to use that to pay your debts?

Hi thanks for taking the time to reply. unfortunately we do need 2 cars has my partner uses hers for work and I use the other for running the kids around to various activities, Yes the £167 is for the car which is in my partners name. phone contracts are up in Oct so I will not be renewing those, The grocerie bill is for 2 adults and 2 children so cant really reduce that, presents I have budgeted for the 2 childrens birtdays £60 each and £200 each at Christmas, me and partner don't buy for each other

fishfinger1

KirstyO wrote: »

Pretty much. If they have an in-house one it normally starts there as it costs them less to administer it. The DCA will start by sending letters similar to the bank (pay up to prevent further action), you can normally make an arrangement to pay with them.


I would strongly recommend online debt remedy with stepchange. They will tell you all of your options and then you can decide whether to go with them in one of their options, go elsewhere for a similar outcome or go it alone.


I ended up in a DMP and it was brilliant, you get left with all of the money you need to live off and anything over that goes to debts. If you're not in a position for a DMP, stepchange will be able to advise. They are friendly, non-judgemental and will have always dealt with someone in a far worse debt situation than yourself.


Good luck! See it as a challenge, not as a defeat!

when you do the budget for a DMP do you over budget on things slightly so you are able to live comfortably, and once your on a DMP is all interest stopped

MallyGirl

fishfinger1 wrote: »

presents I have budgeted for the 2 childrens birtdays £60 each and £200 each at Christmas, me and partner don't buy for each other

how old are the children? That seems a lot to spend on them in your situation - particularly at xmas when they will probably get presents from other family.

make_the_change

fishfinger1 wrote: »

have you used stepchange or did you choose to go it alone

Initially I was going to use StepChange but I have been following others stories of managing alone so might be tempted to do that. I haven't started yet as would like an emergency fund so trying to stall things a little. But when I get a letter from a creditor which seems quite scary, I use the DMP board for advice and people have been so helpful :T