Out of Control.....

desperate+determined

Once again I find myself really struggling with debt.

I started a debt management plan using step change to try get my debts under control, all was going well until I found my circumstances changed in October. I became unemployed due to my Autistic son becoming a school refuser.

I am in process of applying to increase DLA so I am eligible to claim carers, but in the meantime have got myself in to trouble. Feel like I attract it.

I have attached my SOA (this doesn't show my Step Change debts (only payment I make). The other income is what my eldest (15) pays me from his p/t job to pay for his mobile contract (sky) and some towards fuel for my transporting services.


INCOME January
Wages £-
Child Benefit £137.60
DLA Payment £92.80
Universal Credit £1,295.84
Maintenance - Chd 1 £200.00
Other Income £30.00
TOTAL INCOME 1756.24

EXPENDITURE
Rent £343.17
Council Tax £108.00
Electric £90.00
Water £31.10
Groceries £150.00
TV Licence £12.89
Sky TV £67.52
Car Insurance £37.26
Car Tax £10.50
Car Payment £204.00
Fuel £60.00
Origin Leisure £-
HP Ink £3.49
EE Limited £49.14
Sky Mobile £20.40
Step Change Debt £62.00
Maintenance £-
School - Childcare £-
School - Meals £-
School - Trips £10.00
TOTAL EXPENDITURE £1,259.47

EXPENDITURE - LOANS

Capital One Card £200.00
Ocean Credit Card £200.00
Safety Net £200.00
Lending Stream £188.00
TOTAL EXPENDITURE £788.00

TOTAL LEFTOVER -£291.23

Willing2Learn

Hi and seasonal greetings to you and your family.

From your partial SOA, it would appear that your current DMP is unaffordable. But because the SOA is incomplete, it is not possible to give advice.

Please complete your SOA using the online form linked below. Please remember to click on the 'format for MSE' button near the bottom of the form before pasting your full SOA into this thread.

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

desperate+determined

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1526.24
Other income............................ 230
Total monthly income.................... 1756.24

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 204
Rent.................................... 343.17
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 90
Gas..................................... 0
Oil..................................... 0
Water rates............................. 31.1
Telephone (land line)................... 23.99
Mobile phone............................ 69.54
TV Licence.............................. 12.89
Satellite/Cable TV...................... 19.99
Internet Services....................... 22
Groceries etc. ......................... 150
Clothing................................ 5
Petrol/diesel........................... 60
Road tax................................ 10.5
Car Insurance........................... 37.26
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 10
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Step Change............................. 62
HP Ink.................................. 3.49
Total monthly expenses.................. 1277.93


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 9000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 9484.91..(204)......6.9
Total secured & HP debts...... 9484.91...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................199.01....5.........34.09
Ocean..........................199.92....9.89......34.08
Safety Net.....................225.6.....225.6.....68.7
Lending Stream.................501.3.....184.5.....292
Total unsecured debts..........1125.83...424.99....-


Monthly Budget Summary
Total monthly income.................... 1,756.24
Expenses (including HP & secured debts). 1,277.93
Available for debt repayments........... 478.31
Monthly UNsecured debt repayments....... 424.99
Amount left after debt repayments....... 53.32

Personal Balance Sheet Summary
Total assets (things you own)........... 9,000
Total HP & Secured debt................. -9,484.91
Total Unsecured debt.................... -1,125.83
Net Assets.............................. -1,610.74

Created using the SOA calculator at https://www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.

Willing2Learn

Are the accounts with CapitalOne, Ocean, Safety Net and Lending Stream new debts, that are in addition to your £62/month DMP managed by StepChange?

I am not sure how realistic your budget is when there is only £5/month budgeted towards your clothing and presents category, as you have two children.


Also, do you not have any home contents insurance or life insurance?

Do you not spend any money on entertainment?

You also need to allocate something toward your Emergency Fund?


How much is the full total outstanding on the accounts that are already in your DMP?

Are you able to do a little work from home? Doing online surveys and market research for example. But does looking after your autistic child leave you with the spare time to do something such as surveys?

fatbelly

I thought the car maintenance was a bit optimistic at a tenner a month too, and groceries at 150 for an adult and 2 kids - I know there are some on these boards who do it but for most of us we could only do that short-term. 50 a week would be good

Anyway, on your figures there would be 744 available, except that you are spending

New high interest debt 425
Old, interest frozen debt 62
Hire purchase debt 204

and so you say your surplus is 53.

The debts don't appear huge - I assume the stepchange debt is just a few thousand (or they wouldn't have done a dmp) and the new debt is 1125.

The key to dealing with this is where you are with the HP debt.

(a) If it is near the end, and you do have 9k equity in the car, it makes sense to complete the HP, and then sell and downgrade the car, releasing enough money to pay the debts

(b) If it is past the halfway point, you can terminate the HP with no further liability. Stopping the oher payments means you can save the full 744 and in 2 months buy a 1500 car. Then start a dmp

(c) If you are in the first half of the agreement you can still terminate it but will be left with another debt.

Either (b) or (c) leads to a debt management plan but one that encompasses all your debts and is set at a reasonable rate that allows you to pay your bills without resorting to further credit.

SusieT

Other than the comments above, IF this is an actual SOA, it looks as if the Safety net debt will be gone (other than a bit of residual interest) at the next payment, then if you put that payment to Lending Stream that should clear the following month, so you will then lose the 2 horrendous interest accounts, and can ease the budget a bit by using part of those payments, and using the rest to hit C1 and Ocean, meaning you will be rid of those in a few months and can look at getting an emergency fund built up so you have something to fall back on instead of needing the loans.

desperate+determined

Willing2Learn wrote: »

Are the accounts with CapitalOne, Ocean, Safety Net and Lending Stream new debts, that are in addition to your £62/month DMP managed by StepChange?

I am not sure how realistic your budget is when there is only £5/month budgeted towards your clothing and presents category, as you have two children.


Also, do you not have any home contents insurance or life insurance?

Do you not spend any money on entertainment?

You also need to allocate something toward your Emergency Fund?


How much is the full total outstanding on the accounts that are already in your DMP?

Are you able to do a little work from home? Doing online surveys and market research for example. But does looking after your autistic child leave you with the spare time to do something such as surveys?

Yes these are new debts unfortunately. Not included in step change.

I have don't drink, smoke or go out so haven't allowed any entertainment. As a single parent with kids going out really isn't a priority.

I don't have any insurance products.

I agree the budget for clothing and food is tight so could up that.

I struggle to do surveys/research etc due to kids. I have years of admin experience so would love to do something admin based from home.


My DMP estimated balance is £12875 over 6 accounts.

Willing2Learn

Good morning!

desperate+determined wrote: »

I have don't drink, smoke or go out so haven't allowed any entertainment. As a single parent with kids going out really isn't a priority.

What about days out with the kids? For example, if you went for a trip to the seaside with them, the cost of the petrol would come out of the entertainment budget. I just don't think that £0 entertainment is at all realistic.


How do you feel about the idea from fatbelly? That you terminate your car HP, and downgrade to something cheaper?

sourcrates

desperate+determined wrote: »

all was going well until I found my circumstances changed in October. I became unemployed due to my Autistic son becoming a school refuser.

Hi,

Can you just elaborate on the reasons why your son refused to go to school, my son is 9 and he`s also autistic, so i understand fully the situation you are in, but my lad loves school, its a special needs school he goes too, was there something there he didnt like, teachers, traveling ???

Jonathan_Kelvin

desperate+determined wrote: »

Yes these are new debts unfortunately. Not included in step change.

I have don't drink, smoke or go out so haven't allowed any entertainment. As a single parent with kids going out really.

You have subscription TV, so that could go, and give you some savings there, and your mobile phone is extremely expensive too. If it’s a relatively new smartphone then I’d suggest selling it, and buying a normal phone for £10-20. As soon as you are able, cancel the contract, and go back to a PAYG SIM.

desperate+determined

sourcrates wrote: »

Hi,

Can you just elaborate on the reasons why your son refused to go to school, my son is 9 and he`s also autistic, so i understand fully the situation you are in, but my lad loves school, its a special needs school he goes too, was there something there he didnt like, teachers, traveling ???

Hi,

We are still trying to work this out. We live on the doorstep so to speak (a 2 min walk in straightline). School say although academically bright he struggles with social and emotional aspects which is when he becomes violent, aggressive and flight risk (has run from school before) following these incidents it can be days or weeks before myself, school or professional can coheres him back in.

We are still in mainstream as fighting for EHCP but as not required for academic side it harder to prove.

x