Advice which route to take.

Crazysocks

I’m getting help with a few debts. We have done my income and expenses so now we are ready to offer payments however they are small and it will take forever to pay them off. It was suggested I do a DRO. I’m not sure yet. I can manage small payments but how does this affect me in the long run ie my credit file could I get a mortgage ever? Does it show constantly red till it’s paid off if that makes sense. Thank for any help.

sourcrates

Hi,


You would need to fill in a complete statement of affairs and provide a lot more detail before anyone can offer you any advice on this.


If you do that, then I, and others, can explain your available options, how they are represented on your credit file, and for how long.


So fill in the SOA first, link here :


http://www.stoozing.com/calculator/soa.php


We can then get the ball rolling.

Crazysocks

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 86.67
Partners monthly income after tax....... 0
Benefits................................ 2166.47
Other income............................ 748.14
Total monthly income.................... 3001.28

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 802.1
Management charge (leasehold property).. 0
Council tax............................. 20
Electricity............................. 65
Gas..................................... 90
Oil..................................... 0
Water rates............................. 52
Telephone (land line)................... 25
Mobile phone............................ 56.02
TV Licence.............................. 12.83
Satellite/Cable TV...................... 40
Internet Services....................... 25
Groceries etc. ......................... 800
Clothing................................ 65
Petrol/diesel........................... 151.67
Road tax................................ 20.12
Car Insurance........................... 83.72
Car maintenance (including MOT)......... 70
Car parking............................. 20
Other travel............................ 25
Childcare/nursery....................... 0
Other child related expenses............ 163.33
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5.93
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 15
Entertainment........................... 8
Holiday................................. 20
Emergency fund.......................... 0
Smoking................................. 260
Total monthly expenses.................. 2970.72


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Water..........................1934......0.........0
Business startup...............8870......0.........0
Cataloge.......................2188......0.........0
Unknown .......................407.......0.........0
Total unsecured debts..........13399.....0.........-


Monthly Budget Summary
Total monthly income.................... 3,001.28
Expenses (including HP & secured debts). 2,970.72
Available for debt repayments........... 30.56
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 30.56

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,399
Net Assets.............................. -10,899

Crazysocks

Thank you. I’ve paste it above.

Teamocil

Getting rid of the £260 a month on smoking seems like a pretty good start.

rollercoasting

£800 on groceries is too high. You should be able to do this for £400 a month for the size of your family.

Crazysocks

I would like help on my original question regarding how ongoing payments affect credit files. Do they drag out having poor credit for years till it finally paid. ?
Thank you.

Willing2Learn

I agree that £800 is exceptionally high for groceries etc. Where do you shop?

How come your monthly water bill is so high? Is it metered?

Are all your debts frozen, are on hold?

I managed to use my monthly budget to majorly reduce my smoking. Every month I took off an hour a day when I wasn't allowing myself to smoke. I kept taking off 1 more each month until my official smoking time started at 3pm. An intended consequence was that I was also smoking less cigarettes per hour during my permitted hours. I managed to halve my smoking bill in six months

Crazysocks

I pay water weekly with arrears,

My children are on a special diet, and this includes other expenses.

Daniel1971

You budget does not look like a debt relief order would be suitable to me. You’re spending too much on non essentials.

What are the ‘other child related expenses?’

Daniel1971

And yes, ongoing payments could potentially affect your credit file for up to 6 years after the debts are paid in full. It depends when your creditors issue default notices