Repayments are greater than income - DMP?

Kauto5

Here is my SOA. I have added my overdraft and calculated that it cost me about £35 last month but I'm not sure what the interest rate is on that.

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

Monthly Income Details[/b]

Monthly income after tax................ 2270.13

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

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

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

Total monthly income.................... 2270.13[/b][b]

Monthly Expense Details[/b]

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

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

Rent.................................... 495

Management charge (leasehold property).. 0

Council tax............................. 121

Electricity............................. 50

Gas..................................... 40

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

Water rates............................. 21.13

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

Mobile phone............................ 8.9

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

Satellite/Cable TV...................... 13.99

Internet Services....................... 7.99

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

Clothing................................ 25

Petrol/diesel........................... 40

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

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

Other travel............................ 39

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

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

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

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

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

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

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

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

Presents (birthday, christmas etc)...... 10

Haircuts................................ 10

Entertainment........................... 10

Holiday................................. 10

Emergency fund.......................... 10[b]

Total monthly expenses.................. 1122.01[/b]

[b]

Assets[/b]

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

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

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

Car(s).................................. 0

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

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

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

Marbles CC.....................3508.63...184.7.....49.9

Aqua CC........................3605.03...156.7.....49

Barclaycard CC.................3582.46...179.1.....30.9

Halifax overdraft..............980.......35........0

Transave loan..................5040.63...227.......26.3

Castle Community loan..........7334.56...294.4.....33.53

Finio loan.....................1172.71...118.9.....44.9

Abound loan....................2302.42...135.3.....23.45

Hastings Direct loan...........4964.13...224.5.....22.6

Lendable loan..................1699.69...91.92.....44.9

Jaja CC........................2485.07...133.8.....29.6

Halifax CC.....................1103.11...54.54.....33.57

Zopa CC........................1580.18...68.28.....28.9[b]

Total unsecured debts..........39358.62..1904.14...-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,270.13

Expenses (including HP & secured debts). 1,122.01

Available for debt repayments........... 1,148.12

Monthly UNsecured debt repayments....... 1,904.14[b]

Amount short for making debt repayments. -756.02[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

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

Total Unsecured debt.................... -39,358.62[b]

Net Assets.............................. -39,358.62[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

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

fatbelly

Well that does look suited to a debt management plan.

What is the story with the car? You have petrol and parking but nothing for insurance, mot, maintenance, no assets.

ManyWays

Apart from the mystery about your petrol and travel expenses, some other lines look too low to be safe:

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

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

Presents (birthday, christmas etc)...... 10

Entertainment........................... 10

Emergency fund.......................... 10

You need a budget you can feel confident you can live on without have to use credit.

@Grumpelstiltskin's instinct that you may have some affordability complaints looks right. Aqua and marbles are the same lender, so one complaint about both of those expensive cards, saying you should never have been given the second card and the limit on the first was increased too high. And all those expensive loans.

Kauto5

Thanks for looking over this, I don't have a car but I drive my sister's car to work as we work in the same area and share driving. I give her £40 a month for petrol and my insurance as a named driver.

Maybe I should have added this to my travel expenses rather than petrol to avoid confusion.

I have no contents insurance, but could maybe add another £10 for medical and dentist and also for entertainment? 

I will look into affordability complaints too, I could hopefully get them written up this weekend. My marbles and aqua cards are my oldest cards, all of the loans are relatively new which I have been obtaining to pay off credit cards which led me to the edge of the cliff I'm now on 

fatbelly

A lot of those lenders are no strangers to affordability complaints

Definitely worth trying

https://debtcamel.co.uk/affordability-complaints-2-cards-lender/

https://debtcamel.co.uk/refunds-large-high-cost-loans/

Kauto5

Thanks @fatbelly

Sounds like my best course if action then is:

1) Open a basic bank account with a bank I have no history with
2) Get my wages paid into this account
3) Stop all payments towards my cards and loans
4) Contact the two credit unions to arrange a payment plan
5) Wait for the rest to default
6) Set up a DMP with Step Change once they've all defaulted

RAS

Please get contents insurance even if only for out of home issues, check exactly what the car insurance covers, increase entertainment, presents, medical and dental and add holidays.

Do you never visit anyone or anywhere outside home and family, or get coshed into contributing to a work mates leaving presents/do? No weddings or birthday dinners out, ever?

We don't need to know the answer but do you understand how you've got into this much debt given you very low living costs?

Kauto5

RAS said:

Please get contents insurance even if only for out of home issues, check exactly what the car insurance covers, increase entertainment, presents, medical and dental and add holidays.

Do you never visit anyone or anywhere outside home and family, or get coshed into contributing to a work mates leaving presents/do? No weddings or birthday dinners out, ever?

We don't need to know the answer but do you understand how you've got into this much debt given you very low living costs?

Thanks, I will look into getting contents insurance as soon as possible. I will also increase my living costs to a more realistic level.

Once I've entered into a DMP, is there a chance that the loan companies may freeze interest so I only have to pay the capital back that I owe, or will interest only be frozen on credit cards (if the lenders agree to this of course)?

Rob5342

I've had some very good outcomes with affordability complaints. The important thing it to persist with them, it's very common, I'd almost say standard, for companies to reject the initial complaint. All of mine did but I won a few by escalating the complaints to the FOS. My best was a £16k or so interest refund from Nationwide (yes £16,000). I think that was a pretty exceptional result though and it took two years of fighting them every step of the way. I had a number of much smaller successes which were still very helpful. It takes a few minutes and costs nothing, so you might as well try.

Kauto5

Thanks Rob, that's really positive and congratulations on your success on your progress!