Looking for advice - SOA included

Andromeda

Hello,

I would love some advice please. I am determined to face my debts and have filled in my SOA below. Some things to note:

I have a Motability car so that's why I only budget for petrol.

I get Housing and Council tax full benefit. And I am not in any arrears with my Gas, Electricity, Water or TV licence. I've tried to get a water meter but have been told that they can't put one in my property.

I became severely disabled in 1990, putting me into a wheelchair and I haven't been able to work since then and will never be able to work again. I am female, 59 and single, with no family to help me out. I have no dependants.

I have nothing I can sell. I mostly cook from scratch and my grocery bill includes toiletries and cleaning products.

I haven't been buying expensive gadgets or anything or gambling etc - my debts have accumulated by a steady drip drip over the last 10 years and me living beyond my means.

I am now ready to face this and sort it. I have already taken the step of opening a Co-Op Cashminder basic account and am in the process of moving my benefit payments over to it. I've looked at the National Debtline and Stepchange websites and am ready to ring Stepchange for advice, but would like some advice on here, too.

Would a DMP or DRO be best for me?

Also, I want to build up a small emergency fund as I don't have one yet - can I default for a few months whilst I put aside the money I would use to pay the debts? Basically enough to cover the cost of a replacement washing machine or cooker should they break down.

Thank you so much in advance!



Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1011.5
Other income............................ 0
Total monthly income.................... 1011.5

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 71
Gas..................................... 34
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 6
TV Licence.............................. 13.2 (I don't have a TV but I watch online i Player etc)
Satellite/Cable TV...................... 0
Internet Services....................... 25 (landline included)
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17.99
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 4.99
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 6.6
Entertainment........................... 14.99
Holiday................................. 0
Emergency fund.......................... 0
Hobby................................... 9.99
Gardener................................ 25 (Needed to mow my lawn and cut my hedges as I can't do it)
Ocado delivery pass..................... 1.99
Nash Homecare........................... 40.1 (Need a carer once a week and I have to pay for this myself)
Amazon Prime............................ 7.99
medical supplies........................ 68 (I have to buy my own)
pet food................................ 21.74
Total monthly expenses.................. 603.58


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
M & S credit card..............2353.96...58.84.....23.9
Post Office credit ca..........975.......30........19.1
Tesco credit card..............11074.9...200.......0
Loan from friend...............500.......50........0
Satsuma........................464.......116.......0
Santander overdraft............1000......30........0
Santander credit card..........2498.64...79.22.....0

Bookgal88

Do you think you'd be able to balance transfer your M&S and Post Office credit cards to a single 0% card as a first step to try to reduce your monthly payments on them?

tallyhoh

I'd go for a DRO, you owe less than £20000 & your expenses are hardly wild, you could juggle them a bit so you have less than £50 left over after expenses.

EssexHebridean

well done for wanting to get to grips with things - I'll comment below in Red as usual.

Andromeda wrote: »

Hello,

I would love some advice please. I am determined to face my debts and have filled in my SOA below. Some things to note:

I have a Motability car so that's why I only budget for petrol. You don't have ANY other car costs at all - not even things like screenwash/wiperblades etc, nor do you have to make any contribution to a replacement vehicle when one is due?

I get Housing and Council tax full benefit. And I am not in any arrears with my Gas, Electricity, Water or TV licence. I've tried to get a water meter but have been told that they can't put one in my property. Have you enquired about getting your water rates assessed and fixed on that basis? We can't have a meter but have an assessed bill instead, reducing the cost from the standard by quite a bit.

I became severely disabled in 1990, putting me into a wheelchair and I haven't been able to work since then and will never be able to work again. I am female, 59 and single, with no family to help me out. I have no dependants.

I have nothing I can sell. I mostly cook from scratch and my grocery bill includes toiletries and cleaning products.

I haven't been buying expensive gadgets or anything or gambling etc - my debts have accumulated by a steady drip drip over the last 10 years and me living beyond my means. OK - at least you've established the problem

I am now ready to face this and sort it. I have already taken the step of opening a Co-Op Cashminder basic account and am in the process of moving my benefit payments over to it. I've looked at the National Debtline and Stepchange websites and am ready to ring Stepchange for advice, but would like some advice on here, too.

Would a DMP or DRO be best for me? There are experts in this are on here who can advise

Also, I want to build up a small emergency fund as I don't have one yet - can I default for a few months whilst I put aside the money I would use to pay the debts? Absolutely - we usually recommend this as a route. I'd aim for a minimum £500 and then look to add to that a little here and there where you can for added securityBasically enough to cover the cost of a replacement washing machine or cooker should they break down.

Thank you so much in advance!



Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1011.5
Other income............................ 0
Total monthly income.................... 1011.5

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 71 This seems quite high allowing that I presume you use gas for heating from the look iof the bill there? Have you checked to make sure you are on the best tariff for you?
Gas..................................... 34
Oil..................................... 0
Water rates............................. 25 Ahh looking at this is looks like it probably IS an assessed bill.
Telephone (land line)................... 0
Mobile phone............................ 6
TV Licence.............................. 13.2 (I don't have a TV but I watch online i Player etc)
Satellite/Cable TV...................... 0
Internet Services....................... 25 (landline included) This seems quite high - have you shopped around?
Groceries etc. ......................... 150 You can likely to a bit of tweaking on this here and there - things like Aldi super 6 and Lidl Pick of the week can be a good place to base meals, for example.
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0 Allowing for your restricted mobility do you definitely never have to pay for parking at all?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17.99 Any way of doing this cheaper? Pre-paid prescription or that sort of thing?
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 4.99
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 Is this realistic?
Haircuts................................ 6.6
Entertainment........................... 14.99
Holiday................................. 0
Emergency fund.......................... 0 Definitely start budgeting a small amount here each month
Hobby................................... 9.99
Gardener................................ 25 (Needed to mow my lawn and cut my hedges as I can't do it)
Ocado delivery pass..................... 1.99
Nash Homecare........................... 40.1 (Need a carer once a week and I have to pay for this myself)
Amazon Prime............................ 7.99 Do you definitely get value from this?
medical supplies........................ 68 (I have to buy my own) How so? Nothing here that you can get via prescriptions and then use the pre-paid to cap the costs?
pet food................................ 21.74 But nothing budgeted for insurance or vets bills?
Total monthly expenses.................. 603.58


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
M & S credit card..............2353.96...58.84.....23.9
Post Office credit ca..........975.......30........19.1
Tesco credit card..............11074.9...200.......0
Loan from friend...............500.......50........0
Satsuma........................464.......116.......0
Santander overdraft............1000......30........0
Santander credit card..........2498.64...79.22.....0

OK You've missed off the bit where it adds everything up and I don't have time to do the maths myself right now - are you showing any sort of surplus at all currently? If so then there may be wiggle room for a DMP but to be honest you sound like a prime candidate for a DRO if the conditions would be met - Fatbelly or Sourcrates are your experts for that stuff though.

Andromeda

vickya wrote: »

Do you think you'd be able to balance transfer your M&S and Post Office credit cards to a single 0% card as a first step to try to reduce your monthly payments on them?

No unfortunately I can't get any deals like that, and I don't want to have yet another credit card.

Andromeda

EssexHebridean wrote: »

well done for wanting to get to grips with things - I'll comment below in Red as usual.



OK You've missed off the bit where it adds everything up and I don't have time to do the maths myself right now - are you showing any sort of surplus at all currently? If so then there may be wiggle room for a DMP but to be honest you sound like a prime candidate for a DRO if the conditions would be met - Fatbelly or Sourcrates are your experts for that stuff though.

Sorry, I haven't done this before. I'll add them:

Expenses £603.58

Available for debt repayment £407.92

Unsecured debt repayments £564.06

Shortfall - £156.14

I don't know how I can scrape that together to make up that shortfall.

Andromeda

EssexHebridean wrote: »

well done for wanting to get to grips with things - I'll comment below in Red as usual.



OK You've missed off the bit where it adds everything up and I don't have time to do the maths myself right now - are you showing any sort of surplus at all currently? If so then there may be wiggle room for a DMP but to be honest you sound like a prime candidate for a DRO if the conditions would be met - Fatbelly or Sourcrates are your experts for that stuff though.

Definitely don't have to pay for parking.

I'm housebound at the moment so at the moment can't get to Lidl or Aldi but I'll do so when I can drive again. I order shopping online.

Good point about the vet bills - I will save for that. My pets are not the sort I can insure, they're not dogs or cats.

All I have to pay for my car is petrol.

Medical is dentist plan to pay for 2 check ups and hygenist appointments a year and 10% off any treatment needed.

I definitely do save with Amazon Prime.

Presents is definitely realistic as I have no family, and friends get a token gift, often home-made.

I can't get my medical supplies through prescriptions, I've asked. (it's complicated and embarassing so I'd rather not discuss that on here, I'm nervous enough posting this as it is)

Thank you for your reply.

WhenIam64

You look to be square into DRO territory.

If you have a Mobility car, are you paying it from you PIP or DLA money?

Looks like, but confirm, you are on ESA plus HB plus CTR plus DLA.The main issue will be the response of your landlord to any DRO. You have zero for rent so assume it is being paid direct as with DLA (or PIP)

Co-Op Cashminder basic

That's good

am ready to ring Stepchange

They give good advice but as far as I know they can't do a DRO. No harm in having a chat as it helps to get another opinion. Just don't sign up for anything.

Andromeda

WhenIam64 wrote: »

You look to be square into DRO territory.

If you have a Mobility car, are you paying it from you PIP or DLA money?

Looks like, but confirm, you are on ESA plus HB plus CTR plus DLA.The main issue will be the response of your landlord to any DRO. You have zero for rent so assume it is being paid direct as with DLA (or PIP)



That's good



They give good advice but as far as I know they can't do a DRO. No harm in having a chat as it helps to get another opinion. Just don't sign up for anything.

Yes, I am on ESA, DLA, HB and CTR. My car is paid from the highest rate of the mobility componant.

I rent from the council and have been a council tenant since 1995.

Andyjflet

HI, thanks for posting, I am a big advocate of the Dave Ramsey Baby Steps and this could work for you.

Increasing your income could be good too, can you do anything from home ? Homemade cards to sell etc ?

WhenIam64

I rent from the council and have been a council tenant since 1995.

Do the council have a financial inclusion team that you can talk to?

If you want to apply for a DRO there is an interview which Stepchange doesn't do as far as I know. You'll need to find £90 though there are a few grants about e.g if you have worked in a particular industry.

Have a quick word with your local debt charity as this could be all over in a month.