National Debt Service

John_Smith76

I\m in the middle of talking to these guys, who have recommended an IVA. BUT should I be really thinking about getting my own ducks in a row and taking slightly longer to repay debt instead of adding their fees? I'm £50k in debt, but with good salary.

sourcrates

John_Smith76 wrote: »

I\m in the middle of talking to these guys, who have recommended an IVA. BUT should I be really thinking about getting my own ducks in a row and taking slightly longer to repay debt instead of adding their fees? I'm £50k in debt, but with good salary.

Hi John,

NDS are a comercial debt mangement company, basically they sell you a solution that makes money for them, they are not debt advisors, they are sales people, all commercial debt companies operate in this way, the advice they give is not always in the best interests of the client.

The only really impartial free to use company to seek advice about your debts is National Debtline, they have no agenda, and nothing to sell you, so their advice is truly impartial, there is also stepchange and payplan, both debt advice charities, both funded by the creditors, but as a second opinion, or for that matter a starting point, much, much better than any commercial company out there.

You can post your SOA on here, and we can take a look at your figures, see what the best course of action may be :

https://www.lemonfool.co.uk/financecalculators/soa.php


It could be an IVA may be right for you, complete the SOA, and we can advise.

John_Smith76

[tt]Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 4300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4300

Monthly Expense Details
Mortgage................................ 670
Secured/HP loan repayments.............. 205
Rent.................................... 980
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 52
Telephone (land line)................... 20
Mobile phone............................ 70
TV Licence.............................. 16
Satellite/Cable TV...................... 50
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 50
Car Insurance........................... 50
Car maintenance (including MOT)......... 15
Car parking............................. 10
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 ......................... 92
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
spousal maintenance..................... 100
child maintenance....................... 778
Total monthly expenses.................. 3784


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(670)......0
Secured Debt.................. 6000.....(205)......0
Total secured & HP debts...... 186000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................50000.....15000.....0
Total unsecured debts..........50000.....15000.....-


Monthly Budget Summary
Total monthly income.................... 4,300
Expenses (including HP & secured debts). 3,784
Available for debt repayments........... 516
Monthly UNsecured debt repayments....... 15,000
Amount short for making debt repayments. -14,484

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -186,000
Total Unsecured debt.................... -50,000
Net Assets.............................. -236,000

EssexHebridean

There's something wrong there - you have 50k on a single credit card, and they're wanting 15k a month paid back?! That 0% interest rate also looks unlikely for that level of balance, too.

John_Smith76

sorry, I bundled it up and forgot about the extra info:

Halifax Ccard: 12,000debt min monthly £203 - interest £130
Amex Ccard: 7500 debt - min payment £189 - interest £136
Barclyacard: 17,500 debt - min payment £419 - interest £220
Tesco: 7,000 debt - min £57 - interest £4

Willing2Learn

Something is still wrong, as that does not total 50K total unsecured debt. Total debts = 44K @ £868/month minimum contractual payments.

What is the applicable APR for each account please?

John_Smith76

Halifax Ccard: 12,000debt min monthly £203 - interest £130. 17%
Amex Ccard: 7500 debt - min payment £189 - interest £136. 20%
Barclyacard: 17,500 debt - min payment £419 - interest £220. 16.8%
Tesco: 7,000 debt - min £57 - interest £4.

EssexHebridean

OK - working through the rest with comments in red as usual

John_Smith76 wrote: »

[tt]Statement of Affairs and Personal Balance Sheet

You have cut off the top section with the make-up of the household, how many cars, etc - so there is a bit of guesswork at play here.
Monthly Income Details
Monthly income after tax................ 4300
Partners monthly income after tax....... 0 Can this be increased at all?
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4300

Monthly Expense Details
Mortgage................................ 670
Secured/HP loan repayments.............. 205
Rent.................................... 980Why are you paying both mortgage and rent?
Management charge (leasehold property).. 0
Council tax............................. 116 Is this paid over 10 months? If so, look to spread it over 12 to make budgeting easier.
Electricity............................. 75 OK combined your energy costs are very high - you should definitely be able to reduce that! Have a check for a start to make sure you are on the best tariff, then also start to look at reducing use.
Gas..................................... 75
Oil..................................... 0
Water rates............................. 52 is this metered? If not then there may be a saving to be made there. if it IS metered, think about how you can reduce use.
Telephone (land line)................... 20
Mobile phone............................ 70 Ouch - this is steep - I assume this is for 2 phones?
TV Licence.............................. 16 How come you are paying that amount monthly? It should be £12.xx per month?
Satellite/Cable TV...................... 50
Internet Services....................... 10
Groceries etc. ......................... 200Assume this is for 2 people? Pretty decent if so! There is a small saving to be made still though
Clothing................................ 50 Why so much each month? Cut back to essentials only for a while.
Petrol/diesel........................... 100
Road tax................................ 50 I assume your car is one of those that the government are trying to persuade people not to drive then? That's a very high charge bracket!
Car Insurance........................... 50
Car maintenance (including MOT)......... 15 Sure this covers what you spend? Think MoT Test, servicing, depreciative items like tyres, wiper blades, plus screenwash, keeping it clean etc.... You also want to factor inn a but extra to cover any minor repairs.
Car parking............................. 10 Can you park a bit further away and save this?
Other travel............................ 0 Nothing, ever? You never get a bus or a train, or grab a taxi?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 You're paying a mortgage - if your property is freehold then you should have this, and as you are paying no service charge, it very likely is
Contents insurance...................... 0 Not having buildings and contents insurance is the biggest false economy in the world - this is something you can't afford to scrimp on.
Life assurance ......................... 92 ...and conversely this seems very high. Have you checked whether you are drastically over insured here?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 This is - I suspect - unrealistic. Do you never buy any presents at all? For your partner, close family...?
Haircuts................................ 0 Nobody in the household ever has a haircut?
Entertainment........................... 0 Unrealistic I'm afraid - aside from anything else you do need to have some entertainment, even if just a small cost.
Holiday................................. 0 You never go away anywhere? Not even a weekend here and there visiting family?
Emergency fund.......................... 0 You need to start budgeting for this
(Unnamed monthly expense)............... 0
spousal maintenance..................... 100
child maintenance....................... 778
Total monthly expenses.................. 3784


Assets
Cash.................................... 0
House value (Gross)..................... 0 You're paying a mortgage, how come no value here?
Shares and bonds........................ 0
Car(s).................................. 0 Is the car on HP?
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(670)......0
Secured Debt.................. 6000.....(205)......0
Total secured & HP debts...... 186000....-.........-

Lots to look at here, I'd suggest!

John_Smith76

[tt]Statement of Affairs and Personal Balance Sheet

You have cut off the top section with the make-up of the household, how many cars, etc - so there is a bit of guesswork at play here.
Monthly Income Details
Monthly income after tax................ 4300
Partners monthly income after tax....... 0 Can this be increased at all? Unfortunately not
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4300

Monthly Expense Details
Mortgage................................ 670
Secured/HP loan repayments.............. 205
Rent.................................... 980Why are you paying both mortgage and rent? (I pay ex-wife's mortgage and rent for where I live)
Management charge (leasehold property).. 0
Council tax............................. 116 Is this paid over 10 months? If so, look to spread it over 12 to make budgeting easier.
Electricity............................. 75 OK combined your energy costs are very high - you should definitely be able to reduce that! Have a check for a start to make sure you are on the best tariff, then also start to look at reducing use.
Gas..................................... 75
Oil..................................... 0
Water rates............................. 52 is this metered? If not then there may be a saving to be made there. if it IS metered, think about how you can reduce use.
Telephone (land line)................... 20
Mobile phone............................ 70 Ouch - this is steep - I assume this is for 2 phones?
TV Licence.............................. 16 How come you are paying that amount monthly? It should be £12.xx per month?
Satellite/Cable TV...................... 50
Internet Services....................... 10
Groceries etc. ......................... 200Assume this is for 2 people? Pretty decent if so! There is a small saving to be made still though
Clothing................................ 50 Why so much each month? Cut back to essentials only for a while.
Petrol/diesel........................... 100
Road tax................................ 50 I assume your car is one of those that the government are trying to persuade people not to drive then? That's a very high charge bracket!
Car Insurance........................... 50
Car maintenance (including MOT)......... 15 Sure this covers what you spend? Think MoT Test, servicing, depreciative items like tyres, wiper blades, plus screenwash, keeping it clean etc.... You also want to factor inn a but extra to cover any minor repairs.
Car parking............................. 10 Can you park a bit further away and save this?
Other travel............................ 0 Nothing, ever?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 You're paying a mortgage - if your property is freehold then you should have this, and as you are paying no service charge, it very likely is ex-wife does tyhis
Contents insurance...................... 0 Not having buildings and contents insurance is the biggest false economy in the world - this is something you can't afford to scrimp on. ex-wife does this
Life assurance ......................... 92 ...and conversely this seems very high. Have you checked whether you are drastically over insured here?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 This is - I suspect - unrealistic. Do you never buy any presents at all? For your partner, close family...?
Haircuts................................ 0 Nobody in the household ever has a haircut?
Entertainment........................... 0 Unrealistic I'm afraid - aside from anything else you do need to have some entertainment, even if just a small cost.
Holiday................................. 0 You never go away anywhere? Not even a weekend here and there visiting family?
Emergency fund.......................... 0 You need to start budgeting for this
(Unnamed monthly expense)............... 0
spousal maintenance..................... 100
child maintenance....................... 778
Total monthly expenses.................. 3784


Assets
Cash.................................... 0
House value (Gross)..................... 0 You're paying a mortgage, how come no value here? I have 20% equity but only when she sells the house, which she refuses to do
Shares and bonds........................ 0
Car(s).................................. 0 Is the car on HP? its financed with a 3 year loan to pay back the full value of the car (no balloon payment)
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 180000...(670)......0
Secured Debt.................. 6000.....(205)......0
Total secured & HP debts...... 186000....-.........-

John_Smith76

btw - thanks for the feedback so far, I understand all points made on spending

Penguin_

Wow so you pay £670 for you ex's mortgage & also £778 in maintenance?