Help required .... In a Mess!

Knotintherope

I have got into a credit mess over the last 5 years. I changed jobs for a lower salary employment because of mental & physical pressure. Unfortunately Covid came and then increases in fuel, food etc etc. I have subsidised my living expenses with Credit Cards & Personal loans and although I've struggled with minimum payments its all getting on top of me and see no way out.
From my salary of 2k per month I pay into a Santander account £810 which covers all insurances, mortgage, rates, tv, dogs (food & insurances). But there is no longer enough left to cover minimum payments, pellets (pellet boiler for heat & water), food and life.
My company pays & maintains a van which I can use and also a mobile phone
I have read about not paying the loans and CC's until they default and then commence payment plans.
Does this also apply in Northern Ireland and is this a viable option or is there another way of getting on top of these debts
Your thoughts and comments would be appreciated
Thanks

Knotintherope

Knotintherope said:

I have got into a credit mess over the last 5 years. I changed jobs for a lower salary employment because of mental & physical pressure. Unfortunately Covid came and then increases in fuel, food etc etc. I have subsidised my living expenses with Credit Cards & Personal loans and although I've struggled with minimum payments its all getting on top of me and see no way out.
From my salary of 2k per month I pay into a Santander account £810 which covers all insurances, mortgage, rates, tv, dogs (food & insurances). But there is no longer enough left to cover minimum payments, pellets (pellet boiler for heat & water), food and life.
My company pays & maintains a van which I can use and also a mobile phone
I have read about not paying the loans and CC's until they default and then commence payment plans.
Does this also apply in Northern Ireland and is this a viable option or is there another way of getting on top of these debts
Your thoughts and comments would be appreciated
Thanks

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 0

Number of cars owned.................... 0[b]

Monthly Income Details[/b]

Monthly income after tax................ 2003.52

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 2003.52[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 857.9

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 42

Electricity............................. 43.5

Gas..................................... 51.5

Oil..................................... 185

Water rates............................. 0

Telephone (land line)................... 0

Mobile phone............................ 0

TV Licence.............................. 13.66

Satellite/Cable TV...................... 131

Internet Services....................... 0

Groceries etc. ......................... 200

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).... 56.95

Pet insurance/vet bills................. 70

Buildings insurance..................... 42.19

Contents insurance...................... 0

Life assurance ......................... 83.66

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 1777.36[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 180000

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 180000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 87026....(857.9)....0[b]

Total secured & HP debts...... 87026.....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Tesco CC.......................6962......171.......0

PayPal Credit..................4192......150.......0

American Express...............2515......114.......0

Novuna PL......................3126.78...100.......0

Novuna PL......................1511.31...91........0

Novuna PL......................2704.82...242.......0

Vanquis CC.....................860.74....40........0

MBNA CC........................4647.85...187.......0

Virgin CC......................3890......110.......0[b]

Total unsecured debts..........30410.5...1205......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,003.52

Expenses (including HP & secured debts). 1,777.36

Available for debt repayments........... 226.16

Monthly UNsecured debt repayments....... 1,205[b]

Amount short for making debt repayments. -978.84[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 180,000

Total HP & Secured debt................. -87,026

Total Unsecured debt.................... -30,410.5[b]

Net Assets.............................. 62,563.5[/b]

fatbelly

It looks like you need a debt management plan. Worth talking to Advice NI.

https://www.adviceni.net/money-debt/debt

Your tv spend is high. Is that Sky?

Knotintherope

Yep it’s Sky but also includes internet & phone… Can you do a DMP by yourself?

fatbelly

Even so, that's expensive. I wonder if you phoned them whether they could reduce it.

Yes you can do a self-managed dmp. Kim has a useful thresd here

https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps/p1

Andyjflet

In terms of Life Assurance, if your partner or children (if any) depend on your salary then keep it but if they have their own means of paying for "life" if something were to happen to you then you dont need it. 

enthusiasticsaver

Certainly some sort of debt management plan will be needed. The sky cost is very high so if that can be negotiated down that would help. You are also paying a lot on utilities oil/gas/elec.

As @fatbelly says talk to Advice NI as I am not sure if stepchange operate in Northern Ireland. 

TheAble

You've got too much expense for that income, basically. I'd also question whether the soa is accurate - presumably not given the debts. For example nothing for presents, entertainment, holidays? Moving forward you'll either need to increase your income or cut your cloth accordingly.

Knotintherope

Thank you all for your comments … At present I have a Santander joint account which I and my wife pay £810 pounds into each… this covers all expenses (mortgage, insurance, rates, electricity etc). I am left with just under £1200  to service the debt, food and living expenses. Obviously and because I’ve depended on the CC’s the minimum payments have crept up to a stage where even paying the minimum puts me in a minus.
I can look at the expenses over the coming weeks to try and reduce them but I also want to tackle my debt head on. 

From reading several other threads would the next steps be 
1. Cancel DD’s for personal loans
2. Don’t make any payments to Credit cards
3. Switch my bank account (Is Chase a good option)
4. Await the loans & credit cards to default while facing a barrage of phone calls, emails & letters.
5. Then contact whoever then controls the debt to offer a payment plan based on my SOA at that time
Again thank you for your advice I will take it all on board but I can ensure you I’m determined to get on top of this

fatbelly

That sounds good. Chase is a very good option with cashback for a year and in-credit interest

Martico

Also Chase doesn't offer an overdraft, so any credit check should be less onerous than many banks