Where to go? What to do?

fatbelly

That all sounds good.

Definitely a good move to get away from Scottish Power. Dreadful company.

StepChange_Aidan

Based on your SOA it sounds like the DMP will be the best way forward. Right now, your priority bills and ongoing living costs are much more important than repaying the unsecured debts.

The amount you’ll be paying in the DMP should be what you can comfortably afford now, but it gives you the flexibility to increase or reduce the amount when your situation changes.

If your DMP is with StepChange and want to discuss your options in more detail, or if it isn’t but you would like a second opinion, please get in touch.

Kind regards,

Aidan

EssexHebridean

Singlespeeder said:

EssexHebridean said:

Singlespeeder said:

TheAble said:

redlaces said:

Is your road tax correct? 380 per month seems crazy high. Perhaps that is the annual fee.

Couple of Ranges or similar?

Has it really gone that high? £380 a month is £4,560 in VED!! I thought my sports van was high at £270 a YEAR !

Someone with this much debt can't afford two fairly high end / expensively taxed cars

It would appear unless I'm reading it wrongly that the £380 entry was an error - see here: https://www.gov.uk/vehicle-tax-rate-tables

Depends on the car doesn't it? The 255g ones at the bottom are + £2k VED so it's feasible.. unless I'm reading it wrong too !

That's the first year rate - and I did exactly the same thing first off! Thankfully OP has confirmed it was a blooper now - phew! 

Churchy8019

StepChange_Aidan said:

Based on your SOA it sounds like the DMP will be the best way forward. Right now, your priority bills and ongoing living costs are much more important than repaying the unsecured debts.

The amount you’ll be paying in the DMP should be what you can comfortably afford now, but it gives you the flexibility to increase or reduce the amount when your situation changes.

If your DMP is with StepChange and want to discuss your options in more detail, or if it isn’t but you would like a second opinion, please get in touch.

Kind regards,

Aidan

Thank Aiden,

It is StepChange I have set an account with.  I've input my data, created a budget, selected the DMP joint partner solution.  Just putting confirmed income details in with the next hour.

Thanks 

EssexHebridean

Hey OP - first up - just take a break for a moment before you commit on the DMP immediately - as it's worth considering the benefits of letting the debts default first, and taking another few days to make the right decisions for you now isn't going to impact anything massively. 

On the energy price thing, if your actual use (and that is key) indicates that the current level of payment is correct, then a change of supplier just moves who you will need to pay the same amount of money to. First up, start thinking in kWh rather than in money - as money doesn't tell you much about the use itself really, just what that use is costing you. Work out your actual annual use figures for both gas and electricity - then you can begin to get an idea whether you are a high, low or intermediate users. Check that the SM is actually sending readings and that those readings are being used too - make sure the bills says "S" or "Smart" next to the used readings. On the electricity side work out what your background use is - then you will be tuned in to anything out of the ordinary - and it will also help you to really identify what the high use items are. If you have electric showers then those in combination with teens can be a bit of a cost-centre all on their own so that could be worth monitoring. Watch the heating thermostat too - again teens have an inclination sometimes to wander round in shorts and a thin top and complain they're cold - if they are wearing a long sleeved top, a sweatshirt over, long fairly warm trousers and a pair of decent thick socks or slipper-socks  and complaining they're cold then they may have a genuine gripe! I'd be surprised if your household "needed" to have use at the level of the monthly payment you are currently making so it's definitely well worth a good investigation. 

Reducing the cars down to a single one will be a game changer for your budget - if you're able to lose the more expensive of the two even more so. That, the alteration to the budget with the corrected car tax, and the other savings identified should make a DMP very doable indeed for you - 

RAS

I'd also add another vote for slow down.

You've got some crippling interest rates. If you rush straight in to a DMP there's a chance your monthly payments only cover the interest and not much else.

Plus you'll get Arrangement to Pay (AP) markers on your credit records. In some ways they are worse than defaults for a second reason. An AP marker stays on your credit record for 6 years AFTER the debt is cleared.

If you default, interest and charges stop and your credit record clears 6 years after the default.

Read luvmse's recent thread

So a decade or more of damaged credit and a lot of interest to pay?
Or 6/7 years and only the capital to pay off?

Your choice.

Churchy8019

Thank you EssexHebridean & Ras,

You've have give me pause for thought.

foxgloves

Good luck with your debt-busting, @Churchy8019. I agree with suggestions & comments that have already been made, especially:
Groceries - £500 for 4 people is actually a decent wodge of money & shouldn't be presenting problems. In fact, I'd be surprised if altering a few habits wouldn't reduce your outgoings here.
Energy - Now that is high. We are in a 3-bedroom older semi which isn't very well insulated & we are paying £173 per month dual fuel. Changing providers can save a bit of money here (years ago, we were customers of a right rip-off merchant big supplier) but I also know from experience that the most successful way we've found to reduce bills has been to do an energy audit of our home room by room to look for any wastage we might have missed & to ramp up energy saving measures (however small) to the max, as they all add up.
You have a good household income, which is always a positive when beginning to tackle debts.
And I know this is basic, but stop using credit cards now if you haven't already. Any additional usage of these will only add to your debts. It's not your money, it belongs to someone else, so cards need to be seen as a hindrance rather than a help at this point.
All the best with getting it sorted,
F 

Floss

Another vote for taking a breath & letting your creditors default you - but start saving into an emergency fund for a few months. You never know when you might need it. I recently had to find £75 for the excess on a new windscreen, but just withdrew it from my "s*** happens" fund  😉

madaboutspots

Hey Churchy

as ever there is stacks of great advice coming your way. I don’t have a huge amount to add but one thing to perhaps try and resolve when you get a chance is your dual fuel bill for your home.

I’m not judging you - something just seems to be really wrong somewhere. If you’ll allow me I will explain my reason for this….

We have a 30’s semi 3 bed which is like a wind tunnel in some rooms in particular (I’m sure our double glazing needs replacing).

We are 2 adults and 2 dogs, no children. We work from home full time - often only one of us but the office/home needs heating however many - working in the coldest room (conservatory 🙄) in the house all day. I refuse to have any of us be cold (personal choice) and we run a fully electric car which does 13,000 miles/year just for work. The other car is a PHEV and does local trips and UK based holidays. Mostly electric day in/day out then minimal fuel (not included here in costs) for hols. 

So - we have the heating on - a LOT - and are charging an EV EVERY DAY… we use approx 
13,000kWh on gas/year and approx 13,500kWh on electric/year. This is about double the average I believe.

Yet our bills have been a smidge under £3,500/year - in actual fact £270/month. It seems to me that comparing your bills - whilst an entirely different set up at home I’m sure - it does appear to highlight that something is surely wrong with your bills somewhere?

We’re on a smart meter. We do have a lot of appliances on timers and only switch the oven on at the mains when it’s rarely used and various other disciplines generally but these savings aren’t huge compared to overall usage. 

I worry that unless you have absolutely no regard for ever switching anything off - you’ve got some serious problem with your meters or something. It would take a bit of time and focus and given the big picture might not be the top priority at the moment but could do with some careful monitoring on actual readings for use of units. It could I suppose be that habits need some changes applying but I think you’d benefit from understanding what the hell is going on because honestly - your elec/gas bills are monstrous. I can’t see what we could do to use more of both unless we set up a cannabis farm in our loft and yet your bills are still so much higher. 

As I said - I’m not judging. I’m assuming you’re a normal family, in a normal house, with a normal home life and normal usage for heating, living and gadgets etc. I know - what’s normal … certainly your bills are a long way from normal!

I genuinely wish you all the best. It’s so stressful for you already. You’re getting great advice and I’m relieved to see you’ve stopped for breath. Let these guys here lead you down the right path for you. They excel at giving you the tools AND support to make it through. You’re being so brave to address this and if you follow it all the way through you WILL find life is better on the other side. Keep focused. 

But … once you get some headroom - look at what the ***k is going on with those energy bills ‘cause either something needs fixing or you should stop the neighbours tapping into your meter for their loft farming habit!

Spots x