Unmanageable debt - starting a DMP

Uturn25

I’ve been lurking on these boards, I hadn’t realised my debt had spiralled so much. I was shifting debt between cards and I’m all out of 0% offers. I’ve done the SoA and cried.  And now it’s time to sort it.

it’s a combination of things that have led here, including gambling, which are being addressed. It’s my own sole debt.  The only way seems to be DMP - am I doing the right things here?

I’ve cancelled all standing orders/DDs to debts
I’ve preliminary filled out forms with StepChange showing I have c£700 to service debts per month, but haven’t officially registered with them
I’ve written to My Community a finance quoting the step change ref, saying I am looking into options (I understand credit unions can be more complex) but I haven’t made any payment (should I - or wait for a response?)
I’ve missed most of the payments now for March, so now getting texts, emails to this effect . Zopa have already emailed (after 1 missed payment) that they have sent me a Notice of Default Sums.  I’m assuming I ignore everything for now? It feels wrong - but strangely satisfying to gain control.
I’ve set up a separate bank account with Monzo and created pots for my new budget, including building the emergency fund. That’s the satisfying part.

I’ll post my SoA, it’s horrible. I’ve only included my portion of the shared bills for a family of 4.  Grateful of any words of advice, thank you. 

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

Monthly Income Details[/b]

Monthly income after tax................ 3350

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

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

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

Total monthly income.................... 3350[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 700

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

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

Management charge (leasehold property).. 0

Council tax............................. 125

Electricity............................. 90

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

Oil..................................... 65

Water rates............................. 45

Telephone (land line)................... 25

Mobile phone............................ 45

TV Licence.............................. 10

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

Internet Services....................... 20

Groceries etc. ......................... 350

Clothing................................ 60

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

Road tax................................ 5

Car Insurance........................... 45

Car maintenance (including MOT)......... 80

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

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

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

Other child related expenses............ 150

Medical (prescriptions, dentist etc).... 30

Pet insurance/vet bills................. 15

Buildings insurance..................... 35

Contents insurance...................... 20

Life assurance ......................... 10

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

Presents (birthday, christmas etc)...... 50

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

Entertainment........................... 150

Holiday................................. 75

Emergency fund.......................... 100

Repayment............................... 150[b]

Total monthly expenses.................. 2615[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 575000

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

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

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

Total Assets............................ 578000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 279000...(700)......2.9[b]

Total secured & HP debts...... 279000....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Santander......................4850......142.......5.4

Nationwide.....................3400......110.......7.9

Nationwide CC..................2500......55........19

Aqua CC........................4500......150.......36

Fluid CC.......................3500......90........36

HSBC...........................5750......145.......27

Zopa CC........................455.......30........40

Zopa...........................900.......34........24.7

Updraft........................8500......243.......21.9

Novuna.........................7000......210.......20.1

My Community finance ..........6500......199.......20.62

Mbna...........................10500.....311.......14.9

Virgin CC......................8400......185.......22.48

Nationwide OD..................3000......75........39[b]

Total unsecured debts..........69755.....1979......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,350

Expenses (including HP & secured debts). 2,615

Available for debt repayments........... 735

Monthly UNsecured debt repayments....... 1,979[b]

Amount short for making debt repayments. -1,244[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 578,000

Total HP & Secured debt................. -279,000

Total Unsecured debt.................... -69,755[b]

Net Assets.............................. 229,245[/b]

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

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

elsien

What proportion of the bills do you pay and what does your partner pay? It’s hard to comment without knowing that.
I was presuming 50-50, but that would give you a £700 a month to spend on food for four people, which is a lot so thought it would be best to check

RAS

Ditto, clothes, some insurance, child related expenses, nets, holiday, emergency fund, water rates.

If these are your sole responsibility, some are OK, if half they need looking at. As a new member you can't edit your post, so you need your SOA and re-post, "me, partner, half etc".

What is repayment?

The emergency fund, Stepchange allow £25 per month. But I'd add a line for house maintenance. 

How much is your partner on board? Do they understand that everyone's finances are going to be reduced?

Once you've stopped paying debts, you use the time before they default to build your emergency fund, and it needs to be emergencies, not cleaning the gutters. After that, top up each month.

Uturn25

It is a 50:50 split, but I’ve made an error with some of the insurances. The groceries include 2 dogs and allowance for when we are away at various sporting competitions. My children often have competitions at the weekend and due to our location (far end of England) every time includes travel/overnight stay, hence the other children costs. 

I’m not telling my partner, at least not until it’s all settled. They’re recovering from major heart surgery, I just can’t. 

Grumpelstiltskin

Do you have any joint accounts with your partner including your mortgage?

So your household is yourself, partner and 2 children? How old are the children? No child benefit?

Uturn25

Joint account for bills and the mortgage that’s all. We’re over the threshold for child benefit and been stung recently for repayment. Children are 12 and 15

Grumpelstiltskin

OK You do realize there  is a chance your partner could find out about your debt as you have linked accounts. I do understand you don't want to tell them at the moment but just be aware that could happen.

Uturn25

I am assuming (hoping) that this would be when/if they were to take out credit? Which I things unlikely, but would have to deal with that then. 

Grumpelstiltskin

Yes you are correct but just be aware it could happen, also you may have to cut back on some of your spending , how will you explain that?

RAS

Of rather more importance, having joint accounts with someone who is not paying their minimums will adversely affect your partner's credit record. Mortgages do not seem to be as much of a problem as consumer credit accounts. You need to get that joint bank account closed to protect your partner's credit record.

Re mortgages, you will usually be able to book a new deal with your existing lender without a credit check. Hard checks elsewhere would likely lead to rejection.

ManyWays

Repayment............................... 150
what is this?