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Laying it all out.... time for change

Hi, I've lurked about this forum on and off for years, not been on for a while but here we are looking for advice and help. Hoping this post will keep me focused. 

I'm around £35k in debt. It's across several credit cards and all at 0% interest which I juggle about when they run out. It's spiralled over the past few years, mainly due to lack of discipline. I'm looking at options, paying it off myself as I'm currently doing or a DMP (which I know nothing about) Is a DMP wise? I have a mortgage so don't want it to effect that. 

One thing I do know is that I don't want to go bankrupt or get an IVA.

I've realised that this has to stop. I only ever spent on one credit card which I have now cut up and is gone. 

I know the next step is an SOA, the thing I'm struggling with is that me and my partner split bills as a percentage of our income. So when the soa says council tax the figure I put in is not the figure I pay towards it. Does that make sense?

We both pay in to a joint account for bills (a percentage of income) we then save equal amounts for sinking funds such as childs clubs etc....

So my questions would be is a DMP a good idea?

Best way to go about posting an SOA so it's accurate?

ANY advice is welcome! :smile:

«13

Comments

  • sourcrates
    sourcrates Posts: 30,057 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Is a DMP a good idea?

    Well a simple question for you, can you currently afford your contractual repayments to your unsecured debts?

    If the answer is yes, and you have sufficient disposable income to manage your finances, then perhaps a DMP is not needed, on the other hand if your always hand to mouth and can`t afford the basics, then a DMP is probably a good idea.

    It all depends on your circumstances, you may just need to be more disciplined with the money you have.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • is the money you both pay into the joint account sufficient to cover all payments that need to be made from it?
    Mortgage at 01.01.14 £119,481.83:eek: today £0 Emergency fund £5.5/5.5k & £200/200 cash.:jWeight 24/02/19 14st 7lb now 12st determined to stop defining myself by my mistakes. Progress not perfection.:T100%through my 1% mortgage challenge. 79.7% through my pb challenge.
  • theguvnor
    theguvnor Posts: 72 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I'm left with around £100 per month after everything is paid out.

    In terms of the joint account, yes everything is covered
  • RAS
    RAS Posts: 33,828 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 4 October at 3:38PM
    theguvnor said:
    I'm left with around £100 per month after everything is paid out.

    In terms of the joint account, yes everything is covered
    Does that mean you are left with £100 towards £35k debt, or £100 after you pay the minimum on £35k debts?

    Regarding the mortgage, if you default you can transfer to any offer with your current provider without a credit check.
    The person who has not made a mistake, has made nothing
  • theguvnor
    theguvnor Posts: 72 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    RAS said:
    theguvnor said:
    I'm left with around £100 per month after everything is paid out.

    In terms of the joint account, yes everything is covered
    Does that mean you are left with £100 towards £35k debt, or £100 after you pay the minimum on £35k debts?

    Regarding the mortgage, if you default you can transfer to any offer with your current provider without a credit check.
    Left with £100 after I pay the minimum.
  • EssexHebridean
    EssexHebridean Posts: 22,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Hey OP, well done for facing the issue head on and asking for input.

    the £100 you have left - does that marry up with what your budget says you should have, or is that suggesting that there should be more money left? 

    As for the debt - how are you and your  partner viewing this - did it accrue due to household type spending, so should be viewed as “joint” debt, or was it more frittery spending on your part and so you are viewing it as personal? That would usually make a difference to the approach and how best to present the SOA. If it’s joint debt, then the easiest way of doing the SOA is probably to put everything on it, all income and expenditure for the household, then any surplus shown is what you should have to work with. If it’s being viewed as personal, and you are sorting it out purely from your income, then the SOA maybe best done with just your income and the expenditure you pay out - in which case make notes again the items to say (50% of full cost) or whatever to help make things clear. 

    The main thing is that now your lightbulb is firmly on, you use that momentum and tackle things before they get any worse. How you do it will depend on the results of the SOA exercise I suspect, but as you are currently managing to avoid interest it may be that a DMP is less “necessary” for you. Are you still finding that sites like the MSE Credit Club are showing you with a fairly healthy credit file and a good likelihood of getting the balance transfer cards? 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
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  • theguvnor
    theguvnor Posts: 72 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Hey OP, well done for facing the issue head on and asking for input.

    the £100 you have left - does that marry up with what your budget says you should have, or is that suggesting that there should be more money left? 

    As for the debt - how are you and your  partner viewing this - did it accrue due to household type spending, so should be viewed as “joint” debt, or was it more frittery spending on your part and so you are viewing it as personal? That would usually make a difference to the approach and how best to present the SOA. If it’s joint debt, then the easiest way of doing the SOA is probably to put everything on it, all income and expenditure for the household, then any surplus shown is what you should have to work with. If it’s being viewed as personal, and you are sorting it out purely from your income, then the SOA maybe best done with just your income and the expenditure you pay out - in which case make notes again the items to say (50% of full cost) or whatever to help make things clear. 

    The main thing is that now your lightbulb is firmly on, you use that momentum and tackle things before they get any worse. How you do it will depend on the results of the SOA exercise I suspect, but as you are currently managing to avoid interest it may be that a DMP is less “necessary” for you. Are you still finding that sites like the MSE Credit Club are showing you with a fairly healthy credit file and a good likelihood of getting the balance transfer cards? 
    Hi, thanks for the reply. It's soley my debt so will be just myself paying it.

    I'll have a look at doing an SOA, as my bills are all in one payment though it just wont look right. My finances are very seperate to my partners. I might just post my own budget. 

    In terms of my MSE credit club scores I've just checked and its not good! It's 34 out of 100! Mainly due to amount of debt and over 50% of limits. My chances of new cards is very low but i tend to use the cards I have to move balances around
  • theguvnor
    theguvnor Posts: 72 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Incoming Oct
    Wages 2265
    House account 920 This is for all house bills, a couple of payments of clubs for my daughter and food.
    Activity Account 50 We use this money for any spends whilst we are out and about. 
    Daughter Savings 20
    Daughter School dinners 20
    L-ISA 25
    Xbox Game pass 15 My main source of entertainment!
    Fuel 50
    Phone 38
    Gym 25
    Spotify 11
    Football 30 Put money away each month to go to a couple games a season
    Xmas 30
    HSBC CC 165
    MBNA CC 25
    Sainsburys CC 68
    CreationCC 40
    Halifax CC 85
    Natwest CC 340
    Barclays CC 120
    Family trips 30 We don’t live close to family so put money away each month for a few trips a year to go back home
    Daughter Clubs 40
    Xmas trip 2024 10
    Summer 10 Extra money for summer holidays whilst my daughter is off
    Daughter Clothes 10
    Daughter Birthday 10
    Daughter Xmas 10
    DEBT REPAYMENT 843
    TOTAL OUTOING 2197
    TOTAL LEFT 68
    Debt Payment % 37.22
    Spare % 3.00
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 4,765 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    All the money you spend on your daughter, do you receive Child Benefit?
    If you go down to the woods today you better not go alone.
  • theguvnor
    theguvnor Posts: 72 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    All the money you spend on your daughter, do you receive Child Benefit?
    Yes we get the basic. £102 a month or 4 weekly I think. That goes into the pot. My budegt above is what I put towards everything.
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