Debt help!

Joner205

HI all, I'd like some advice/help with my debt please. I`ve currently got almost £28,000 in personal loans and credit card debt. Ive not yet missed a payment but having recently changed job and taken a slight reduction in salary £35,000 to £31,000. I think if not this month it'll be next month that I start missing payments. my credit score isn't overly great but I need to ge this sorted as im struggling with it all. im thinking of going via stepchange charity with a dmp. what would everyones advice be? My situation is I live alone in a rented property through a housing association. 

Thanks

fatbelly

I think our advice is don't go straight to stepchange but give yourself some time to get organised and follow this

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

Joner205

[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.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2100

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

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

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

Total monthly income.................... 2100[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

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

Rent.................................... 540

Management charge (leasehold property).. 0

Council tax............................. 137

Electricity............................. 85

Gas..................................... 0

Oil..................................... 0

Water rates............................. 30

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

Mobile phone............................ 25

TV Licence.............................. 13.5

Satellite/Cable TV...................... 0

Internet Services....................... 25

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

Clothing................................ 50

Petrol/diesel........................... 125

Road tax................................ 30

Car Insurance........................... 40

Car maintenance (including MOT)......... 50

Car parking............................. 10

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 10

Life assurance ......................... 0

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

Presents (birthday, christmas etc)...... 30

Haircuts................................ 20

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

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

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

Total monthly expenses.................. 1420.5[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 0

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

Car(s).................................. 2500

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

Total Assets............................ 2500[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

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

JN Bank loan...................7854......219.......12.1

Lloyds Bank loan...............8993......253.......0

Lloyds Bank CC.................2000......100.......0

Creation (curry)...............700.......43........0

Paypal Credit..................2000......100.......0

Natwest Bank CC................4442......100.......NaN

Capital One CC.................1750......100.......0[b]

Total unsecured debts..........27739.....915.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,100

Expenses (including HP & secured debts). 1,420.5

Available for debt repayments........... 679.5

Monthly UNsecured debt repayments....... 915[b]

Amount short for making debt repayments. -235.5[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 2,500

Total HP & Secured debt................. -0

Total Unsecured debt.................... -27,739[b]

Net Assets.............................. -25,239[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

NatWest credit card is 0% until 05/2025  im in the process of finding out the other interest rates.

What im wanting to know is it feasible to get these paid down without missing a payment? ive not missed one yet just interested in peoples opinions?

thanks

fatbelly

I think that would be difficult. You are £235 short each month.

There is some room for saving* but unless you can survive without the car, I doubt you can shave off £235 and the suggestion in your first post of a dmp seems most likely

*Capital one min payment seems high, food could come down £50, clothes £25

Joner205

Thanks for that, would speaking to my loan providers maybe help if the set up a plan?

enthusiasticsaver

I don't think you have any option other than a DMP which involves defaulting and will affect your credit record.  Even if you make arrangements to repay at a reduced rate with your loans those will still show as AP markers on your record which take longer to drop off than defaults. 

fatbelly

Joner205 said:

Thanks for that, would speaking to my loan providers maybe help if the set up a plan?

No, I think the tried and tested route is best.

Joner205

enthusiasticsaver said:

I don't think you have any option other than a DMP which involves defaulting and will affect your credit record.  Even if you make arrangements to repay at a reduced rate with your loans those will still show as AP markers on your record which take longer to drop off than defaults. 

How long does a default take to disappear ? Also would it stop me renting?

Grumpelstiltskin

A default stays on  your credit report for 6 years.

Renting could be a problem but if you have enough savings to pay 6 months rent up front plus your deposit you should be able to rent.

Stateofart

How come your car tax is £360 a year?  Can you get a smaller car?  Also, do you anticipate £600 in repairs per year?  I think you should invest in a better and more economical car!  Your gas and electric are high, but these should come down sharply soon but get in the mindset of reducing your energy costs.

Joner205

Stateofart said:

How come your car tax is £360 a year?  Can you get a smaller car?  Also, do you anticipate £600 in repairs per year?  I think you should invest in a better and more economical car!  Your gas and electric are high, but these should come down sharply soon but get in the mindset of reducing your energy costs.

In the process of changing my car, I don’t have gas so that’s £0 also my house has an electric air source heat pump