Refused breathing space

triskaidemania

sourcrates said:

You haven`t even missed a payment yet, so talking to your creditors about payment plans, before you have even defaulted, is like trying to knit fog, pointless.

Breathing space is a waste of time, average turn around of a creditor letter is 4 weeks, collection activity consists of a few phone calls and the odd letter, please familiarise yourself with the collection process, its mainly informal, and takes a long time, months, years in some cases.

Formal collection activity, legal action, is mainly used by debt purchasing companies much further down the line, after default, and after the debt has been sold, sometimes more than once.

Nothing will happen in the short term, your best bet is to let everything default (stops interest and gives a clear 6 year window till default drops off file) let the debts go to collection companies, or be sold on (whichever is soonest) then make payment arrangements on the collectors website, so simple, no need to talk to anyone, you can also use the time to save an emergency fund.

This is what I need time to build my emergency fund. I earn 2800, 1175 goes to loan, 600+ credit card. My mortgage is 680 the Pennies remaining we get by with. We’ve cut on every corner scrimping and trying to get by but none the better. My insteresta are still racking up 10 credit cards all accruing nearly 400£ interest each month.
8 months this was my life after my husband was made redundant then had a mini stroke late last year. 

I want to be in control now. I want to take control of our lives once again.
I’ve had enough of all these debt 

sourcrates

Try not to worry about the interest accruing, that will stop eventually.

Credit debts are all non essential payments, essential payments come first, mortgage/council tax/utilities etc.

Unsecured credit debts are last to be paid, if you are going down the route of debt management, at some point, much further down the line, your debts will be sold, the companies that buy them offer discounts at certain times to partially settle, this off sets the initial interest paid before default.

No one ever repays the full face value, its all about negotiated settlements later on in the process.

You pay a certain amount per month, and save what you can, at some point you should be able to do settlement deals and end the arrangement much sooner than you would have done.

Its like any other process, its all about knowing how the system works, and making it work to your best advantage.

RAS

Things have obviously been really difficult and it's hard to manage life and finances when so many changes are going on. Time to take a few deep breathes, stop digging for a bit and re-trench.

Given the circumstances, it is really important that you build back your savings, and the time before your debts default is as good as any. Remember there are a lot of lovely people here. You can always comeback if you are worried about anything, just to off load and if it's a long haul, there is a diary section as well.

triskaidemania

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

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

Number of children in household......... 2

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2750

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

Benefits................................ 160

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

Total monthly income.................... 2910[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 670

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

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

Management charge (leasehold property).. 0

Council tax............................. 120

Electricity............................. 220

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

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

Water rates............................. 37

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

Mobile phone............................ 23

TV Licence.............................. 0

Satellite/Cable TV...................... 7

Internet Services....................... 36

Groceries etc. ......................... 500

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

Petrol/diesel........................... 150

Road tax................................ 27

Car Insurance........................... 89

Car maintenance (including MOT)......... 30

Car parking............................. 0

Other travel............................ 40

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

Other child related expenses............ 60

Medical (prescriptions, dentist etc).... 20

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

Buildings insurance..................... 14

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

Life assurance ......................... 20

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

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

Haircuts................................ 15

Entertainment........................... 50

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

Emergency fund.......................... 50

Parental support ....................... 225

Professional fees and union ............ 36[b]

Total monthly expenses.................. 2519[/b]

[b]

Assets[/b]

Cash.................................... 400

House value (Gross)..................... 100000

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

Car(s).................................. 3000

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

Total Assets............................ 103400[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 67000....(670)......5.8[b]

Total secured & HP debts...... 67000.....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Hsbc loan .....................4720......298.......17

Hastings direct loan...........8152......348.......22

JN bank loan...................1919......209.......14

Family loan ...................2800......200.......0

Samsung .......................450.......28........0

Aqua joint ....................2400......130.......0

MBNA joint ....................1400......60........0

Tesco credit joint ............3200......120.......0

Vanquis........................919.......40........0

Pulse credit ..................4740......298.......28

Tesco credit ..................3199......120.......32

Credit card hsbc ..............6652......190.......23

Virgin money loan .............5000......367.......0[b]

Total unsecured debts..........45551.....2408......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,910

Expenses (including HP & secured debts). 2,519

Available for debt repayments........... 391

Monthly UNsecured debt repayments....... 2,408[b]

Amount short for making debt repayments. -2,017[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 103,400

Total HP & Secured debt................. -67,000

Total Unsecured debt.................... -45,551[b]

Net Assets.............................. -9,151[/b]

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

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



this is me. Just seeing this makes
my chest hurt and I catch for breath. 

What have I done with our lives? My kids are 3 and 2, we’ve not been on holidays neither do we eat out weekly. I surrender. I am drowning 

fatbelly

Your debts, apart from the mortgage and possibly the family loan are all nonpriority.

You can afford the mortgage and to repay your family. Concentrate on those.

Grumpelstiltskin

Looking at your SOA your partner doesn't have any income, any reason why?

You have £225 parental support, on top of the  £200  family loan repayment?, are your parents in this country? Do they claim benefits?

ManyWays

Your groceries are on the low side - this includes toiletries and cleaning products.
And £50 is way too low for clothes with two children.
The family loan and parental support are quite a lot of your income, could these be reduced?
When does your mortgage fix end and what rate are you paying? 

Mumoffourkids

ManyWays said:

Your groceries are on the low side - this includes toiletries and cleaning products.
And £50 is way too low for clothes with two children.
The family loan and parental support are quite a lot of your income, could these be reduced?
When does your mortgage fix end and what rate are you paying? 

i would say the opposite for groceries. I feed 8/9 people on a budget of £150 per week, so £500 for 4 people actually seems a bit high, or at least savings could be made. This includes all cleaning stuff and toiletries apart from my eldest child’s toiletries as she buys her own now she is working.

In addition I budget £100 a month for clothes for 7 of us. The two oldest tend to buy their own clothes now. So again £50 is probably about right for clothes each month for four.

fatbelly

If I was doing a financial statement at work (CAB) I'd start the discussion over food & housekeeping at £100 per week for 2 adults, 2 children. If the client said it had to be £500 per month, I'd be OK with that. It's well within the trigger figures

Clothing, I suggest £3 -£5 per person per week so £50 pm is fine

The soa shows ~£400 available for creditors so £200 to the family loan is affordable

katsu

As your husband had a stroke, can he get any benefits? Cover at least his NI for his future pension and help make the debt clearing easier? 

You've realised before it all went too far. You'll get help here and be able to get this situation sorted.