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Laying it all out.... time for change
theguvnor
Posts: 72 Forumite
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!
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!
0
Comments
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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-letter1 -
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.1 -
I'm left with around £100 per month after everything is paid out.
In terms of the joint account, yes everything is covered0 -
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
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 nothing1 -
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
Regarding the mortgage, if you default you can transfer to any offer with your current provider without a credit check.0 -
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 = £105,400.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
EssexHebridean said: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?
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 around0 -
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 0 -
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.0
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Grumpelstiltskin said:All the money you spend on your daughter, do you receive Child Benefit?0
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