Round and round we go

HBBeast

Hello would just like a little bit of advice


Currently debts are £40k my income is £1525 net and my partners was £2k but now he is self employed the income can widely vary this month his take home is £1,400


We are managing to pay off £700 a month towards the debt which is the minimum payments plus a bit but the interest is just killing me - along with his unknown income I cant see how we are ever going to get out of it.


We want another child we have one baby who will be 2 years old early part of next year - with me then going down to maternity leave so my income slashed again.


My question is this:


Should I go into a DMP this would enable me to stop all interest on credit cards (hopefully) and then actually get somewhere with paying of this blasted debt - it would also help us to build a bit of a buffer for maternity leave


We dont use any credit cards instead we manage on what we have - we budget at the start of the month for expenses that are going to come up.


Im thinking if we go into a DMP then at least we are chipping away at the debt and I can put some money away to try for baby number 2 - not getting any younger


Please give me your honest opinion I will not be offended - with the new year coming up I need to get ahead on this debt (its originally from college - car purchase and lending money that I dindt get back (wont e doing that again!).

HBBeast

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1525
Partners monthly income after tax....... 1500
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 3105
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 875
Management charge (leasehold property).. 0
Council tax............................. 117.5
Electricity............................. 67
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 215.63
Clothing................................ 30
Petrol/diesel........................... 350
Road tax................................ 18.75
Car Insurance........................... 40
Car maintenance (including MOT)......... 42
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 4
Pet insurance/vet bills................. 0
Buildings insurance..................... 7
Contents insurance...................... 7
Life assurance ......................... 12
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 15
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Van leasing ............................ 358
Phone insurance ........................ 8
Bank charges (overdraft)................ 35
Total monthly expenses.................. 2414

Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 2200

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
RBS............................1808......160.......15
M&S............................3349......84........15
Barclaycard ...................5236......145.......15
MBNA...........................2404......25........0
Lloyds ........................1125......11........0
Payplan (DH)...................8170......45........0
Halifax .......................7301......130.......15
Tesco .........................5886......91........15
Total unsecured debts..........35279.....691.......-

Monthly Budget Summary
Total monthly income.................... 3,105
Expenses (including HP & secured debts). 2,414
Available for debt repayments........... 691
Monthly UNsecured debt repayments....... 691
Amount left after debt repayments....... 0
Personal Balance Sheet Summary
Total assets (things you own)........... 2,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -35,279
Net Assets.............................. -33,079

HBBeast

The mobile phone is my phone £30 and my partners £40
Both tied into contracts - mine is going to come down next month


From next month there will also be £75 Van insurance - he needs to speak to them about pbringing the lease payments down as quite frankly this is ridiculous


The credit card % the ones at 0% are correct the others ive left at 15% but im sure its more than that

jaxsmar

Have you had any advice from a free debt help charity? That way you can look at all your options. Stepchange have a free tool online it then guides you plus they can telephone you.

HBBeast

No not yet - my partner is already in a DMP - and in the months where he does earn more I suppose we could always overpay I don't know why I'm so adverse to it - I just feel I ran up the debt so I should pay itback - which I suppose I am if I do a DMP - it will trash our credit but then im not in a position to buy anywhere anyway so I don't suppose it makes any difference!!

squiggle123

Hiya

Do you pay council tax over 12 months? If not them call council to arrange as it does give a little extra in monthly budget I find.

Mobile phone obvouisly you know this is high. But when you can swap, do.

Groceries, maybe could be cut a little. We are a family of three and I budget £180 including cleaning bits but that is without nappies. Even so you might be able to knock even a tenner would free a bit up.

Do you have two cars? Any chance you could go to one?

Might be worth looking at a joint policy for buildings and contents. We've just got one that is £8.96 per month.

Do you need phone insurance?

Is £40 for entertainment realistic enough?

With no childcare costs noted, do you need to budget for baby groups/activities you do?

Just a few ideas. I'm new to all this but thought I'd throw in my two pennies worth. Sure you'll get some really useful advice on this board though. Good luck & good on you for getting it sorted

DawnW

Just a quick question - why do you need buildings insurance if you rent?

kazwookie

What is the van leasing for?

Could you not buy a run about van

Fireflyaway

My honest opinion is could your partner consider getting a salaried job? Its easier to budget and less stressful and might increase your income? It doesn't have to be forever.
Depending on how much you need to safeguard your credit rating you could speak to your creditors and negotiate a repayment plan. It may stick a default on your account but may be worth it depending on your circumstances and long term plans?