In Debt & Determined to get out!

bsbloke

Hi All,

I'm fairly new to this forum but I've become inspired by reading through all the posts I see on here.

I feel grateful that other people have shared their situation so I've decided to return the favour and do mine. I will keep a diary post everyday to let people know what I'm up to, how I'm coping with my debt and to keep me spurred on to continue.

My current situation is as follows:

I'm a thirty year old bloke with a wife and a little girl who is 2. She's my world and I don't want her to suffer for my mistakes so I'm doing my best to sort my mess out.

Me and the wife overspent money we didn't have in our 20's before we had a family and as such we currently have a debt management plan with all our debts in. I will post figures below.

If anyone reads this, you have my thanks. I'm not the best writer and my confidence is shot but send me a message and I will reply as best I can.

Thanks,

A bloke in South Derbyshire.

Total of Debts Outstanding - £43,149.80

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anna_1977

Hey, welcome
Why not post an SOA? There are some seriously knowledgeable people here that might be able to help cut down outgoings?
I hope you're using a free DMP service suck as stepchange?

bsbloke

Hi Anna,

What's an SOA? (I'm totally lost).

I've been using a DMP company called 123 debt solutions based in Liverpool. I'm pretty sure they're free but in all honesty I have no idea. I've been with them quite some time and have seen the total amount go down by £3,000.

I'm no expert on DMP companies though so Stepchange might be the better option.

Grumpelstiltskin

Firstly Check your paperwork with 123 I am sure they will be charging you. Then ditch them ASAP

anna_1977

bsbloke wrote: »

Hi Anna,

What's an SOA? (I'm totally lost).

I've been using a DMP company called 123 debt solutions based in Liverpool. I'm pretty sure they're free but in all honesty I have no idea. I've been with them quite some time and have seen the total amount go down by £3,000.

I'm no expert on DMP companies though so Stepchange might be the better option.

Hi,
SOA found here http://www.stoozing.com/calculator/soa.php

(think it's offline at the moment though). Basically you list all your incomings and outgoings and people comment on ideas to cut outgoings. Make sure it's accurate, if possible spend an evening going through a couple months of bank statements to make sure nothing is left off.

Regarding 123 - DITCH THEM NOW!!
Quick google found this (from 2010 so potentially higher % now!)

If you are paying at least £100, the first two payments into the arrangement covers the cost of setting up the debt management plan, including a draft proposal, dedicated account manager, creditor communications and preparation of the financial statement.

A fee of 12.5% (or a minimum of £30) is retained from each further payment to cover the cost of running the plan. Our maximum monthly fee is £125.

contact stepchange or similar, then ALL the money you are paying to them will go to the companies.

Jon_B_2

I just had a look at 123ds website. Horrific charges. There is a worked example of somebody £11,000 in debt. Over the course of 7 years on a DMP - the debtee would pay nearly £4K in fees!

How are businesses like these allowed to exist? They are a million times worse than the wongas of this world IMO.

Pepperoni

Hi there. Your post really touched me as I also have a 2 year old girl and decided to get debt free for that reason. Nothing gives you more of an incentive than not ruining their future!

Echo what others have said - ditch the company you're with and contact Step Change instead. And also post an SOA ASAP - people on here may be ruthless with their suggestions but unfortunately when high levels of debt are involved it's needed. Best of luck to you.

bsbloke

Firstly,

I'd like to thank everyone who has replied and been so helpful so far.

I've removed the signature as per the rules. Thanks for that Grumplestiltskin.

I feel like kicking myself for not checking into 123 thoroughly. I will contact Stepchange straightaway. Thanks for the info anna_1977 & Jon B

Pepperoni, in the end our children are the only thing that matters. The rest is just a game we play.

I will do an SOA and post it up for guidance.

Many thanks all.

jahina

I'm with StepChange. They are really great. Good luck with your future plans! Our children change our whole outlooks on life, don't they!

bsbloke

Ok so below is the SOA. Keep in mind that the bills that we pay for are included in the rent as we have moved back in with my parents as they have a large house and were generous and kind enough to let us live with them.

We would have drowned completely by now if not for them. (So ashamed as a man of 30.)

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 5
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 600
Benefits................................ 100
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1000
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 100
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 10
Petrol/diesel........................... 200
Road tax................................ 60
Car Insurance........................... 88
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 240
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........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2198


Assets
Cash.................................... 200
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 250
Other assets............................ 0
Total Assets............................ 450

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
123 DMP........................43149.....130.......0
Total unsecured debts..........43149.....130.......-


Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 2,198
Available for debt repayments........... 202
Monthly UNsecured debt repayments....... 130
Amount left after debt repayments....... 72

Personal Balance Sheet Summary
Total assets (things you own)........... 450
Total HP & Secured debt................. -0
Total Unsecured debt.................... -43,149
Net Assets.............................. -42,699

anna_1977

bsbloke wrote: »

Ok so below is the SOA. Keep in mind that the bills that we pay for are included in the rent as we have moved back in with my parents as they have a large house and were generous and kind enough to let us live with them.

We would have drowned completely by now if not for them. (So ashamed as a man of 30.)

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 5
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 600
Benefits................................ 100
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 1000
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 100are you tied into contracts as this seems a lot
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500is this for the 5 adults of just the 3 of you; if just 3 then v high
Clothing................................ 10is this accurate with a 2 year old £120 a year on clothes?
Petrol/diesel........................... 200
Road tax................................ 60
Car Insurance........................... 88Have you shopped about at renewal ?
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 240
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................................ 0never for any of you?
Entertainment........................... 0nothing?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2198


Assets
Cash.................................... 200
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 250
Other assets............................ 0
Total Assets............................ 450

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
123 DMP........................43149.....130.......0
Total unsecured debts..........43149.....130.......-


Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 2,198
Available for debt repayments........... 202
Monthly UNsecured debt repayments....... 130
Amount left after debt repayments....... 72

Personal Balance Sheet Summary
Total assets (things you own)........... 450
Total HP & Secured debt................. -0
Total Unsecured debt.................... -43,149
Net Assets.............................. -42,699

Hi,
Please see my comments above.

You need to really break the debts down if possible rather than club together as one payment.

Do you need 2 cars?

Anna