Stepchange debt advice

enthusiasticsaver

dave_75 wrote: »

Hello, I'm looking for some help and advice regarding a debt problem I desperately need to get out of.

This concerns both myself and my wife. I'm looking at options but want to exclude an IVA. Due to working in the financial services may cause a problem.

All my essential payments are up to date. The issue relates to credit card debt which we’ve accumulated over years. Amount of credit card debt is £51k. The minimum total monthly payments are £1227.

Also, we have two overdrafts with the Halifax. The daily charge for both myself and my wife's account is in itself over £200.00. The daily charges are a killer and I can’t see a way to pay it off.

This has all come to a head when overtime payments stopped at work. Having worked overtime for over nine years, earning an extra £700.00 a month has meant a massive drop in income.

I had originally hoped to resolve this with a loan. However my bank declined this.

I've reached out to barclaycard so far. I had sent off income and expenditure form. As of now, I'm trying to negotiate with them. It feels like I’m not making any progress.

I'm at my wit's end and struggling to see a way forwards.

I’m not so sure a DMP is the best option and I’m now considering a secured loan for around 35k to pay the major debts and then pay the others off with any remaining. I realise taking out a secured loan is potentially a bad idea but at this moment in time seems potentially easier than DMP.

Overtime has started back up at work - it could last years or it could be a matter of months and so I want to make the most of that to pay down debt where I can.

I really need some guidance on this. I can't seem to attach a link to my income and expenditure. In Summary:

Enter the total amount you pay including towards arrears you may have Payment amount £ How often? e.g. weekly, monthly Average per calendar month
HOUSING & UTILITY BILLS
Rent
Mortgage £880.00 Monthly £880

Water £78.00 Monthly £78
Council tax £106.00 Monthly £106
Gas £70.00 Monthly £70
Electricity £78.00 Monthly £78


HOUSEHOLD SERVICES
Buildings & contents insurance £35.40 Monthly £35
Telephone and internet £67.00 Monthly £67
TV licence £12.83 Monthly £13
Satellite or cable TV
Repairs, service contracts £84.16 Monthly £84
Life insurance & private pension £31.01 Monthly £31

TRAVEL
Spares & servicing £400.00 monthlyy £33
Road tax £17.06 Monthly £17
Car insurance £50.00 Monthly £50
Fuel & parking £100.00 Monthly £100

FOOD & HOUSEKEEPING
Food, toiletries & cleaning products £600.00 Monthly £600
School meals £160.00 Monthly £160
Meals at work £40.00 Monthly £40
Pets (food & insurance) £75.00 Monthly £75

Clothing & footwear £400.00 monthly £33
OTHER SERVICES
School trips & activities £100.00 monthly £8
Medicines & prescriptions £9.00 Monthly £9
Dentist & opticians £150.00 monthly £13
Hairdressing £100.00 monthly £2
Professional or union fees £45.00 Monthly £45
PERSONAL & LEISURE
Newspapers & magazines £5.00 Monthly £5
Sports, hobbies & entertainment £40.00 Monthly £40
Children's pocket money £100.00 Monthly £100
Church or charity donations
Sundries & emergencies £100.00 Monthly £100
OTHER COSTS
Mobile Phones (family of 4) £117.00 Monthly £117

total 2990 per month


If income is variable enter an average Amount How often? Per calendar month
Your wage £28,400.00 Monthly £1,800
You partner's wage below as part time
Part-time wages £13,500.00 Monthly £985
Child benefit £136.00 Monthly £136
Rent or board received £4,860.00 Monthly £405

Total Incoming £3326

Debts
Name of organisation or lender Type of debt Amount owed Usual payment
Example: ABC Bank Overdraft £1,000.00 £100.00
David Halifax Overdraft Overdraft £3,300.00 £180.00
wife Halifax Overdraft Overdraft £1,700.00 £81.00
David Barclaycard Credit card £12,949.00 £170.00
David Barclaycard Credit card £12,747.00 £365.00
wife Barclaycard Credit card £9,993.00 £224.00
David Amazon Card Credit card £2,750.00 £78.00
wife Amazon Card Credit card £1,500.00 £57.00
wife Vanquis Credit card £2,499.00 £120.00
David Aqua Credit card £899.00 £20.00
Sofa Finance Store card £400.00 £35.00
Asda Credit Card Credit card £2,904.00 £97.00

Total 51,641


Many Thanks,

Dave

That soa is not that easy to read but from what I can see your total monthly income is £3326 (what is the rent/lodger income from?) and your outgoings without your debt repayments is £2990 so only a £336 surplus. Once the minimum debt repayments of £1227 are accounted for you have a shortfall of £891. I am not sure how you have managed to keep up repayments unless you have been going further into your overdraft or credit cards?

If this is the case you have to stop now. You will not get further borrowing at a reasonable rate even secured as your income does not show you can afford it and any new borrowing is processed as if existing credit like your cards and overdrafts stays in place. I think a DMP is possibly something which could be looked at but it depends on what interest rates you are paying on your debts. Post up an soa with the interest rates showing. I don't think a DMP will affect you if you are working in financial services but you will need to default on the debts and you will not have access to credit so you have to open a clean bank account with a new bank which you have no connections with. No overdraft and write to your creditors asking for 6 months breathing space and ask them to freeze the interest. Then contact stepchange.

On your soa your groceries is way too high at £600 especially if you pay £160 for school meals and £40 for lunches out at work too. Take a packed lunch to work instead of buying more food out as you cannot afford it. Cook and shop more economically using supermarkets like Lidl or Aldi. Cut the kids pocket money. £100 is high. How old are they? I would also renegotiate those mobiles and your cable tv costs or cancel it altogether.