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Question About TPP

2»

Comments

  • RAS
    RAS Posts: 35,910 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you are in England or Wales, a DMP is a voluntary, rather than legal agreement with mandatory requirements. So you have more flexibility but you have no protection from creditor action, which may well include continuing to charge interest and fees. 

    You don't HAVE to treat all your creditors the same, but if you use a company or a debt charity, they will generally have undertaken to treat the creditors "fairly". Which means they are unlikely to allow paying the full whack to some unsecured and non-priority creditors, whilst paying a tiny fraction of the debt to others.

    Any debt company or charity will ask you for a Statement of Affairs before agreeing how to handle your debt. They are not required to help you if they don't like your plans. Your creditors may well ask for your SOA. Affordability is everything but if you can obviously afford to pay "Big debt" more money which is currently going elsewhere, they don't have to play ball.

    Preferment is a much bigger issue if you want to go bankrupt or use a DRO.

    What many people here do is default, sort out a realistic SOA, make pro rata payments but meantime save what they can for full and final payments. That's much more flexible as some creditors might accept 80% discount whilst other refuse 20%. Guess which you work with?

     
    If you've have not made a mistake, you've made nothing
  • Conan1Sett
    Conan1Sett Posts: 128 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 1320
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 1320[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 242
    Secured/HP loan repayments.............. 0
    Rent.................................... 13
    Management charge (leasehold property).. 78
    Council tax............................. 110
    Electricity............................. 80
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 27
    Telephone (land line)................... 0
    Mobile phone............................ 50
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 175
    Clothing................................ 0
    Petrol/diesel........................... 0
    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).... 20
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 11
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 806[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 60000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 60000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 49500....(242)......0[b]
    Total secured & HP debts...... 49500.....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Personal Loan..................5167......161.......10.92
    Personal Loan..................3601......131.......20.79
    Credit Card....................338.......20........29.68
    PayPal Credit (D)..............85........1.........0
    Barclays OD (D)................1226......1.........0
    Lowell - Aqua (D)..............676.......1.........0
    Lowell - 118 (D)...............987.......1.........0
    Credit Card (D)................3299......1.........0
    Klarna.........................133.......5.........0[b]
    Total unsecured debts..........15512.....322.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 1,320
    Expenses (including HP & secured debts). 806
    Available for debt repayments........... 514
    Monthly UNsecured debt repayments....... 322[b]
    Amount left after debt repayments....... 192[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 60,000
    Total HP & Secured debt................. -49,500
    Total Unsecured debt.................... -15,512[b]
    Net Assets.............................. -5,012[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,609 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    No house and contents insurance? They are a must. What would you do if your house burnt down and you still had almost £50.000 to pay on your mortgage?

    You never travel anywhere on a bus or train?

    No internet? How do you get online?

    I don't think your SOA is realistic, have another look at it.

    Also derails of who the loans and credit cards are with please.
    If you go down to the woods today you better not go alone.
  • Conan1Sett
    Conan1Sett Posts: 128 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    Grumpelstiltskin said:
    No house and contents insurance? They are a must. What would you do if your house burnt down and you still had almost £50.000 to pay on your mortgage?

    You never travel anywhere on a bus or train?

    No internet? How do you get online?

    I don't think your SOA is realistic, have another look at it.

    Also derails of who the loans and credit cards are with please.
    I have a leasehold in a communal block of flats, and so I didn't need to take out buildings insurance. I didn't want to take out contents insurance. 

    I generally bike everywhere. I use unlimited data and mobile hotspot for the internet.

    RateSetter
    Personal Loan
    5167.15
    Barclays Loan
    Personal Loan
    3601.53
    Barclaycard
    Credit Card
    338.53
    PayPal
    Credit Card
    83.73
    Santander
    Credit Card
    3299.93
    Lowell - 118 Money
    Credit Card
    987
    Lowell - New Day LTD
    Credit Card
    676.32
    Barclays
    Current Account Overdraft
    1226.64
    Klarna
    Finance
    133.55
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,609 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    OK So you bike most places, you never need a new tyre, brakes etc and what if your bike was stolen?

    You need something in travel.


    If you go down to the woods today you better not go alone.
  • RAS
    RAS Posts: 35,910 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    According to your SOA, you have £192 left each month to pay towards those debts for which you are paying £1. Do you actually have that much left? If not where is it going?

    Glad you bike everywhere, but surely you need a new set of tires, brake cable, appropriate clothing occasionally. I hope that the bike is insured? It might not seem much, but that cost needs to be in your SOA. Because there will be loads of other small things like that missing.

    Are you still getting your salary paid into the Barclays account? If so, you urgently need a new basic bank account elsewhere. Or is it already defaulted?

    What where those personal loans for?
    If you've have not made a mistake, you've made nothing
  • Conan1Sett
    Conan1Sett Posts: 128 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    Grumpelstiltskin said:
    OK So you bike most places, you never need a new tyre, brakes etc and what if your bike was stolen?

    You need something in travel.


    RAS said:
    According to your SOA, you have £192 left each month to pay towards those debts for which you are paying £1. Do you actually have that much left? If not where is it going?

    Glad you bike everywhere, but surely you need a new set of tires, brake cable, appropriate clothing occasionally. I hope that the bike is insured? It might not seem much, but that cost needs to be in your SOA. Because there will be loads of other small things like that missing.

    Are you still getting your salary paid into the Barclays account? If so, you urgently need a new basic bank account elsewhere. Or is it already defaulted?

    What where those personal loans for?

    It's difficult to pin down. 

    I haven't needed any bike maintenance for a few months. In a pinch, with anything, I have relatives that could be willing to help. Obviously, though, I'd like to retain as much independence as possible. 

    The Barclays account is defaulted and it's an overdraft. I have a basic bank account with Virgin Money.

    The personal loans were for my mortgage deposit. 
  • fatbelly
    fatbelly Posts: 23,126 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    edited 19 August 2023 at 11:28AM
    Thanks for the soa. That makes things a lot clearer and we can stop talking about bankruptcy/dro as they are not appropriate/available to you, and anyone who talks about 'preference' is barking up the wrong tree.

    The first thing I noticed was the credit card with £338 on it. Can now see it's Barclaycard. Do you use this for current purchases like food shopping?

    If so, that needs to be paid off in full each month as it is high interest, and I'd probably concentrate on getting that cleared first
  • Conan1Sett
    Conan1Sett Posts: 128 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    fatbelly said:
    Thanks for the soa. That makes things a lot clearer and we can stop talking about bankruptcy/dro as they are not appropriate/available to you.

    The first thing I noticed was the credit card with £338 on it. Can now see it's Barclaycard. Do you use this for current purchases like food shopping?

    If so, that needs to be paid off in full each month as it is high interest, and I'd probably concentrate on getting that cleared first

    Nope, the card is cancelled. It hasn't defaulted, but I'm still subject to the interest on the balance.
  • fatbelly
    fatbelly Posts: 23,126 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    edited 19 August 2023 at 11:27AM
    I'd still want to get rid of that balance as a priority I think
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