Debt and credit file

EssexHebridean

I think you need to clarify - is this a budget you are just intending to begin using from now, or is the SOA you've prepared an accurate reflection of how you've been doing things? If the former, then there are clear issues - not least that you are putting aside money monthly for things like car maintenance, presents,, emergency fund etc, but showing no cash assets at all. 

I assume contents insurance is blank because the buildings insurance amount also covers contents cover?

You could potentially make a saving in the area of groceries - £700 is fairly high but that does to a degree depend on the age groups of your kids. If we're talking all under 12's, it will be easier to drop the spend by making changes than if you're feeding 4 voracious teenagers with their own strongly formed ideas about what constitutes edible food! 

£50 a month for clothing in your situation is reasonable but you MUST make sure that it genuinely gets set aside as clearly it's not something that will be required all the time. ensuring that clothes are well cared for so far as possible and that things are handed down (no, they won't like it, but right now that will have to be tough!) will help. Similarly for smaller children charity shops and eBay can be a great source of budget clothes. 

One question which you need to address right now: You have no cash assets - how are you funding Christmas? You need to get that planned and manage expectations right now. Do NOT borrow any more money to pay for Christmas stuff - where you are at that's a really bad idea.

Other thoughts:
Your car insurance seems pretty high - why is that? 
Have you checked that your budgeted amount for gas/electricity is correct now that prices have increased? If the government energy help is being transferred back to your bank account each month, are you either manually paying that back to the energy account or ring-fencing it elsewhere to make sure it's there when needed for top-up payments later in the winter?
You have no childrens costs there - what happens about pocket money?
Is there a saving to be made on the medical area by using pre-paid prescription certificates? 

fatbelly

Jack_Bauer87 said:

fatbelly said:

What's the state of play with the BMW?

Who are you banking with now?

Is your mortgage on a fixed deal - how long left?

Token offers are really only a short-term strategy but there may be no good solution for you at the moment.

The mortgage deal has around 3 years or so to go. The bmw finance is what i owe them
as my car got repossessed around a year ago.

I completely understand tokens are short term  its why in really worried as there no chance to improve my income.

OK, sometimes you just have to run with the situation as it is.

Those debts are all non-priority. Nothing much is going to happen if you don't pay or if you continue with £1 token payments. 

Insolvency is unrealistic/dangerous so don't go there. Particularly don't get suckered in by social media adverts

Make sure your banking is not with the Nat West or Halifax groups as you don't want them to be exercising their right of set-off and dipping into your bank account after a wage payment goes in.

You should be relatively stable while the mortgage is in its fixed period. None of us know how the land will lie in 3 years.

So there's nothing to worry about for now - you can make your essential payments and the debts are going nowhere.

As a word of caution, electricity and gas could easily rise a lot - particularly as you will all be home over Christmas, cooking and heating etc. So anything you can do to find a bit of slack in your budget will help.

RAS

Jack_Bauer87 said:

The mortgage deal has around 3 years or so to go.

That's really good news.

The bmw finance is what i owe them as my car got repossessed around a year ago.

And that's unfortunate. What are you driving now?

fatbelly asked where you are currently banking. That's important information, please.

Based on your reply to EH, this is an aspirational SOA?

You really need to sit down and go through the last 6 months statements and work out where the money has actually gone. Until you know that, designing a sustainable budget is going to be really hard.

Any chance of getting CMS from the other parent(s)?

As EH pointed out, you needed to start managing the children's expectations over Christmas now if you haven't already. Otherwise you'll be in a greater mess.

Jack_Bauer87

Hi
I bank with santander so thats all
good. Our spending is horrendous a dont wanna look back tbh cos i know how bad it is  gambling   beers  energy drinks  smoking etc.

Im fortunate to get help from my mum with presents and that so kids don't go without.
we have 4 children under 8.

i do regonise things need to change thou.

car insurance is cheapest i could find.
Children to young for pocket money atm
gas and electricity somehow im in credit 330ish.

Jack_Bauer87

Should i ring intrum do you think ask um why your reporting debt whats defaulted as active or will it just be pointless

RAS

So there are two adults in the household?

With respect to the gambling, alcohol, ciggies, you don't have to report the details to us, but you do need accurate information about your on-going spends.

Are you getting help with the gambling etc?

Have you checked the meter readings against the bills?

Jack_Bauer87

@sourcrates just double checked on my file
says  defaulted debt with creation £0.00 balance

Was sold to intrum who are reporting every month
should i ring them do you think or just leave it.

Jack_Bauer87

RAS said:

So there are two adults in the household?

With respect to the gambling, alcohol, ciggies, you don't have to report the details to us, but you do need accurate information about your on-going spends.

Are you getting help with the gambling etc?

Have you checked the meter readings against the bills?

Gamberlings under control i wasnt crazy bad maybe 50 60 a week or so
but  its under control now.
regarding gas electric i pay monthly and get billed every 3 month
currently paid 540 in my account and my bill is due 01 febuary.

fatbelly

Jack_Bauer87 said:

@sourcrates just double checked on my file
says  defaulted debt with creation £0.00 balance

Was sold to intrum who are reporting every month
should i ring them do you think or just leave it.

Keep a record of the original default date because that is the one that anyone who takes over the debt has to use.

I wouldn't waste time on the phone but if there was an easy complaint route you could ask them to make sure they are using the same date

https://www.intrum.co.uk/customer/contact/email-form/

But as far as your problems go, this one is unimportant.

Jack_Bauer87

Thank you thats really helpful.
If i continue on the plan i am on  whats the worst case scenario what could happen,
i really done see a change in our circumstances, i no i could shave of some expenses with better budgeting but like we need so much esentials what we have gone without i don't see how we can really pay anyfing substantial to the debts.