Help with Debt Solutions please

OA456

Hi David,


Thank you for your email & apologies for the rather late reply.


Do you have any space on the 0% CC to move some of the massive APR debts onto?

Answer: No, I don't at the moment

£200 electric? Can this be cut down.



Answer: At the moment, no. This is because the 2 cars are electric cars and electricity is used to charge the cars,

Road tax 0?


Answer: Yes, both cars are electric cars and as a result, are not liable to pay road tax.


Food shopping 0?



Answer: I will update the figures in the future, thank you.


Many thanks for your respone & suggestions.

OA456

Hi DCFC79,


Thank you for your email and apologies for the rather late response.

You out of contract soon on your internet and tv ?



Answer: No, thanks


Do you need a tv licence?

Id cancel the TV and licence and get say Netflix for something to watch in the evenings.



Answer: Ok, I will give this some thought. Many thanks.




Thanks very much once again.

OA456

Hi,


Thank you very much for your messages & apologies for the rather late response.


Is your £1,200 income, your salary for the new job that starts at the end of June? If it is not, then what will be your monthly income be once you start your new job?


Answer: Yes, it is my salary for my job, thanks.



With your monthly expenses, is that your combined outgoings for both you and your wife?

You have entered £0.00 for monthly groceries, is that correct? - £200.00
You have entered £0.00 for monthly petrol, is that correct? - Yes, the cars are electric.
You have entered £0.00 for monthly car parking, is that correct? - Yes, thanks.
You have entered £0.00 for monthly road tax, is that correct? - Yes, both cars are electric.
You have entered £0.00 for monthly home contents insurance, is that correct? - Yes

Definitely open a new bank account tomorrow as you need to ring-fence your income. Make sure the bank is not with the Santander, HBOS or RBS banking groups (I recommend Nationwide or Co-Op, as they are both independent).

- Thank you.


Do you have any joint bank accounts? If so, who with?



Answer: Yes, but I have moved the money into her bank account.


Also today or tomorrow, send letters out to all your creditors, asking them to freeze your accounts while you are seeking advice. The link for the letter template is in my earlier post.

- Thank you.

Also, give your self a pat on the back as you have taken the first step on your debt-busting journey...


- Thank you.

OA456

Thank you very much for your response & apologies for the rather late response.


I will give it a shot.

OA456

Hi,



Thank you for your response & apologies for the rather late reply.





You need to ring fence your income as willing says so open a bank account with someone you don't owe money to.



Answer; Thanks, will do.

How did you build up so much debt or have you fallen into a debt spiral by trying to keep payments up?

Answer: Long story short - recyccling debt and a personal emergency.

Have you defaulted on any? I honestly think you cannot get out of this without some type of debt solution. Bankruptcy I think is problematic because you do have a surplus after essential bills each month and you have an expensive car. That would have to go. It may also cause you problems at work or if renting property in the future.

Answer: No, I have not defaulted on any, thanks

An IVA May be suitable but personally I would opt for a DMP and stepchange will help you with that. A DRO is for people with much smaller debts. Do not pay for any debt solution. There are plenty of free options. If the interest was frozen and you paid £1000 a month towards the debt it would be cleared in about 7-8 years. I also wonder if you can get any money refunded by lenders who have lent to you irresponsibly which must be the case unless you lied to them to borrow more. I would query that Everyday loan and Likely loan (pay day lenders) and the Halifax one. Given that the rate is high I would think they knew your finances were in a mess. It is such a shame you did not address this sooner but better late than never. It can be sorted but the next 6 years will be difficult with no access to credit and defaults on your file.

So first open a clean basic bank account.

Then start saving the payments you were paying to debt but I am not sure about the car loan. Is that in your name or your wife's?



Answer: It is in my name

Talk to stepchange and see what they recommend. If they push for an IVA make sure the soa is reasonably generous and realistic. There are guidelines as to how much you can put in each category.


Answer: Thanks

Write to your creditors and ask for 6 months breathing space while you sort out the next steps.

Do an accurate soa allowing for food, car expenses, contents insurance. Is the car insurance really £150 per month or over the year.


Answer: No, it's an average amount, thanks

One thing you do need to do though is sit down with your wife and decide if you will do this as a joint thing or whether just you or even her. Whose name is the debt in?


Answer: It is in my name



Your electric is high. Are you up to date with that or paying off arrears?



Answer: Yes, both cars are electric and we mainly charge the cars at home.

OA456

Hi,


Thank you for your response & apologies for the rather late response.



I think you are missing some things. How did all this happen? If you've got 95k of unsecured debt and £303 pcm secured - what's the full total?

Answer: I will add the information later, thank you. Long story short - debt recycling and an urgent personal situation.


“ Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 303 is this on top of the unsecured? Yes
Rent.................................... 640
Management charge (leasehold property).. 0
Council tax............................. 145
Electricity............................. 200 This is huge. Are you on storage heaters? If so, can you get on economy 7? Even so, I had storage heaters in my house and although it was coldish sometimes and it's a pain, I never paid more than around £50 a month - Both cars are electric and we charge them at home all the time.
Gas..................................... 0
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 12.87
Satellite/Cable TV...................... 30
Internet Services....................... 16
Groceries etc. ......................... 0
Clothing................................ 15
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 150 Is this per month? So you pay £1800 a year? What do you drive? - It's an average. My wife's just passed her driving test. That is why it is that expensive.
Car maintenance (including MOT)......... 12
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 17.5
how old are you? You possibly don't need this yet.

Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1633.37






Thanks once again.