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Debt becoming overwhelming? Can I pay this off or am I deluding myself?
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m-holland
Posts: 223 Forumite
Hey folks,
Can you look at my SOA and advise me if I should continue paying off debts as is or enter a DPP as advised by StepChange. I have put notes next to a couple of things for more explanation.
Can you look at my SOA and advise me if I should continue paying off debts as is or enter a DPP as advised by StepChange. I have put notes next to a couple of things for more explanation.
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 894.83 *(Carers Allowance, Income Support and PIP)
Other income............................ 0
Total monthly income.................... 894.83
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0 (Person I live with gets full Housing Benefit)
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 25 (Dual Fuel split with person I live with)
Gas..................................... 25
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 43 (Under contract, will reduce it next year when contract ends)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 25 (Virgin Media Internet only)
Groceries etc. ......................... 280 (estimate suggested by StepChange, I think its high but im not sure)
Clothing................................ 42 (Very much a guess, I used Littlewoods for most clothing purchases)
Petrol/diesel........................... 100 (estimate, motability wheelchair van with poor mpg)
Petrol/diesel........................... 100 (estimate, motability wheelchair van with poor mpg)
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).... 30 (This is a rough estimate)
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 613
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
Capital One....................1451.15...80........26.4 (Persistent Debt has pushed min payment to 3%)
Capital One....................973.46....40........30.34
Tesco CC.......................551.2.....25........39.94
118118 Loan....................1178.6....59.83.....37.7
Aqua Loan......................2135.65...92.86.....42.9
Littlewoods....................1338.41...0.........0 (Partly based on a BNPL which includes interest but will be paid off before interest is applicable)
AO Finance.....................231.81....13.52.....34.08
Barclaycard....................341.53....5.........29.55 (Barclays temporarily extended my 0% purchase period on this due to COVID, but this expires next month)
Bank of Scotland BT............905.13....9.........0 (Got another year of a 0% BT on this.)
Vanquis........................126.66....10........59.92
Aqua...........................1412.66...80........54.95
Total unsecured debts..........10646.26..415.21....-
Monthly Budget Summary
Total monthly income.................... 894.83
Expenses (including HP & secured debts). 613
Available for debt repayments........... 281.83
Monthly UNsecured debt repayments....... 415.21
Amount short for making debt repayments. -133.38
[b]Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,646.26
Net Assets.............................. -10,646.26
[i]Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
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Comments
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m-holland said:Hey folks,
Can you look at my SOA and advise me if I should continue paying off debts as is or enter a DPP as advised by StepChange. I have put notes next to a couple of things for more explanation.Household InformationNumber of adults in household........... 2Number of children in household......... 0Number of cars owned.................... 0Monthly Income DetailsMonthly income after tax................ 0Partners monthly income after tax....... 0Benefits................................ 894.83 *(Carers Allowance, Income Support and PIP)Other income............................ 0Total monthly income.................... 894.83Monthly Expense DetailsMortgage................................ 0Secured/HP loan repayments.............. 0Rent.................................... 0 (Person I live with gets full Housing Benefit)Management charge (leasehold property).. 0Council tax............................. 0Electricity............................. 25 (Dual Fuel split with person I live with)Gas..................................... 25Oil..................................... 0Water rates............................. 0Telephone (land line)................... 0Mobile phone............................ 43 (Under contract, will reduce it next year when contract ends)TV Licence.............................. 0Satellite/Cable TV...................... 0Internet Services....................... 25 (Virgin Media Internet only)Groceries etc. ......................... 280 (estimate suggested by StepChange, I think its high but im not sure)Clothing................................ 42 (Very much a guess, I used Littlewoods for most clothing purchases)
Petrol/diesel........................... 100 (estimate, motability wheelchair van with poor mpg)Road tax................................ 0Car Insurance........................... 0Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 30 (This is a rough estimate)Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 8Life assurance ......................... 0Other insurance......................... 0Presents (birthday, christmas etc)...... 0Haircuts................................ 10Entertainment........................... 25Holiday................................. 0Emergency fund.......................... 0Total monthly expenses.................. 613AssetsCash.................................... 0House value (Gross)..................... 0Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 0Total Assets............................ 0No Secured nor Hire Purchase DebtsUnsecured DebtsDescription....................Debt......Monthly...APRCapital One....................1451.15...80........26.4 (Persistent Debt has pushed min payment to 3%)Capital One....................973.46....40........30.34Tesco CC.......................551.2.....25........39.94118118 Loan....................1178.6....59.83.....37.7Aqua Loan......................2135.65...92.86.....42.9Littlewoods....................1338.41...0.........0 (Partly based on a BNPL which includes interest but will be paid off before interest is applicable)AO Finance.....................231.81....13.52.....34.08Barclaycard....................341.53....5.........29.55 (Barclays temporarily extended my 0% purchase period on this due to COVID, but this expires next month)Bank of Scotland BT............905.13....9.........0 (Got another year of a 0% BT on this.)Vanquis........................126.66....10........59.92Aqua...........................1412.66...80........54.95Total unsecured debts..........10646.26..415.21....-Monthly Budget SummaryTotal monthly income.................... 894.83Expenses (including HP & secured debts). 613Available for debt repayments........... 281.83Monthly UNsecured debt repayments....... 415.21Amount short for making debt repayments. -133.38[b]Personal Balance Sheet SummaryTotal assets (things you own)........... 0Total HP & Secured debt................. -0Total Unsecured debt.................... -10,646.26Net Assets.............................. -10,646.26[i]Created using the SOA calculator at www.stoozing.com.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]When is the VM contract due to end ? Look at changing supplier.Whats the reasoning for the Credit Cards, loans etc ?0 -
are you in Scotland?
Although it looks like a debt plan is needed as even with budgeting you don't have enough money to pay your debts.0 -
VM contract runs for about another 12 months.DCFC79 said:When is the VM contract due to end ? Change supplier.Whats the reasoning for the Credit Cards, loans etc ?
Debt thats built up over time before I was receiving CA, IS and PIP when I was just receiving JSA. Was mainly to cover living costs. (Been building up over several years)0 -
I should have added in my original post that I am not in arrears or default with any of these accounts, I am making the minimum payment on them and paying more to the highest interest rate one (Aqua) where possible0
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Without increasing your income somehow it's hard to see how you'll be able to continue to service the debts. By your own figures it looks as though you're already running a deficit.1
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I would say you need a DMP as you have far too much debt for your income and with a total of 8 credit cards, 2 loans and a catalogue the spare income is insufficient for even minimum payments on these. Once they are out of the 0% then the payments will increase so it will only get worse. Even on relatively low balances on some of those credit cards the high interest rates mean very little is being paid off the capital. You also have no savings for emergencies. Do you not have any car insurance or maintenance to pay on the van or is that paid by your partner?
How did you get so far into debt and why so many credit cards? Have you been constantly balance transferring for a period of some time?I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Isn't StepChange's option any good? Why on earth would you want to go it alone when you can do it through an accredited agency? Their clout is far better than yours! I've seen this post before and I think you really would be crazy not to take StepChange up on their offer. Maybe it's time to stop posting on here and get on with trying to sort out your debts. StepChange helped me so much and part of that was learning how to budget. It's very scary to be in debt, I know, as I think I mentioned to you last time that I had a DRO. Just do it, but do it with a debt agency. You will NOT regret it!Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.0
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The OP hasn't come on here for judgement, but advice. It really isn't any of your business how or why they 'got so far into debt'.enthusiasticsaver said:I would say you need a DMP as you have far too much debt for your income and with a total of 8 credit cards, 2 loans and a catalogue the spare income is insufficient for even minimum payments on these. Once they are out of the 0% then the payments will increase so it will only get worse. Even on relatively low balances on some of those credit cards the high interest rates mean very little is being paid off the capital. You also have no savings for emergencies. Do you not have any car insurance or maintenance to pay on the van or is that paid by your partner?
How did you get so far into debt and why so many credit cards? Have you been constantly balance transferring for a period of some time?
Because they live in Scotland, StepChange has advised them to apply for a DPP, which I think I'd accept if I were them. This OP has posted this question before but they seem reluctant to actually take the plunge. Because I've had a DRO arranged by StepChange in the past, I'd always advise people to try to sort out their debts via a debt help agency. But I'd never try to judge anyone because I know what it's like, it's embarrassing enough without others probing and asking sensitive questions.Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.1 -
Without knowing what is to the stop the person from going straight back into debt again? Pointless tackling the debt if you don't tackle the cause.MalMonroe said:
The OP hasn't come on here for judgement, but advice. It really isn't any of your business how or why they 'got so far into debt'.enthusiasticsaver said:
The only person on this thread that has done any judging is you.10
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