Self managed DMP help

Woolywelsh

Let me rephrase that sorry.
We have a joint bank account which we use to pay all our bills.
A joint mortgage which obviously won't be defaulted.
The defaults will be on my credit card and loans all in my name only! How bad and what affect will this have on her credit report as we are financially linked via the mortgage..
This has put a spanner in the works and made me a bit uneasy,

Thanks

RAS

The mortgage will have a minor impact as long as you keep paying it as secured debt is very different to consumer debt.

Have we already explained that when you need a new fix, you just log into your providers website a few months ahead and pick the best deal? There's no credit check. Some people here have already done it twice.

It might be worth your partner setting one card to pay off in full and only use that for a smaller regular spend? And setting the DD for another account to pay off slightly more than the minimum. Both those boost her credit record.

Ignore credit scores. Someone with a full paid house, loads of saving and who doesn't use credit will have dreadful credit score and credit record.

Woolywelsh

Thank you for your time. Yes I am aware of that, we are due to remortgage in November actually so that's good that we can just secure a new deal without going through the usual checks and stuff.

The priority is making things easier for myself and the family and I think this is the best option.  

Woolywelsh

One more thing. When I do my SOA do I do it as couple or enter just my half and my salary. I'm finding it confusing as yes we split bills and food. But what's left out off our wages is ours. 
I take it we combine it all together though?  

sourcrates

Woolywelsh said:

One more thing. When I do my SOA do I do it as couple or enter just my half and my salary. I'm finding it confusing as yes we split bills and food. But what's left out off our wages is ours. 
I take it we combine it all together though?  

You need to make a choice how you are going to play this.

You either do it as a couple, or you go solo, because I'm guessing the amount of disposable income will differ between both of you.

Are you paying them out of your half or jointly, your decision.

RAS

What's your incomes like? Are you 50:50, or does one of you earn more? 

Do you can combine and pay jointly or do you each pay different bills? Beyond the essentials, how do you manage your spends? Do you discuss decisions together, or does one decide "I need to get x fixed or to buy x this month and just do it?

Every one is different. The more formal debt management would expect each party to contribute to the house expenditure in proportion to their income.

Woolywelsh

[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................ 2600

Partners monthly income after tax....... 1800

Benefits................................ 174

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

Total monthly income.................... 4574[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 750

Secured/HP loan repayments.............. 256

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

Management charge (leasehold property).. 0

Council tax............................. 231

Electricity............................. 85

Gas..................................... 85

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

Water rates............................. 55

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

Mobile phone............................ 55

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

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

Internet Services....................... 33

Groceries etc. ......................... 600

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

Petrol/diesel........................... 280

Road tax................................ 15

Car Insurance........................... 34

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

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

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

Childcare/nursery....................... 800

Other child related expenses............ 16

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

Pet insurance/vet bills................. 54

Buildings insurance..................... 25

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

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

Other insurance......................... 6

Presents (birthday, christmas etc)...... 80

Haircuts................................ 30

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

Holiday................................. 100

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

Swimming lesson......................... 26[b]

Total monthly expenses.................. 3846[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 230000

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

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

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

Total Assets............................ 230000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 151000...(750)......3.81

Hire Purchase (HP) debt ...... 0........(256)......0[b]

Total secured & HP debts...... 151000....-.........- [/b]

[b]Unsecured Debts[/b]

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

Barclaycard cc.................8450......120.......0

Virgin cc......................8200......82........0

Zoopa loan.....................6500......164.......0

Klarna.........................286.......17........0

PayPal credit .................1700......40........0

Mbna cc........................2200......60........0

MBNA loan......................14500.....250.......0[b]

Total unsecured debts..........41836.....733.......- [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,574

Expenses (including HP & secured debts). 3,846

Available for debt repayments........... 728

Monthly UNsecured debt repayments....... 733[b]

Amount short for making debt repayments. -5[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 230,000

Total HP & Secured debt................. -151,000

Total Unsecured debt.................... -41,836[b]

Net Assets.............................. 37,164[/b]

Could you please see what you think about this. The virgin, Barclaycard and PayPal will start interest on the next 6 months or so. So that will go up

ManyWays

How old are your children, is the childcare bill going to drop soon?

Woolywelsh

2 and 6. Probably another year or two before it does. Even then the childminder will be picking the youngest up half day Childcare is so expensive, it's a massive burden but the blame is on myself. The debt is why I'm in this situation

ManyWays

My thoughts are that the groceries bill in pretty low, are you including meals at work in that? And the clothes bill is very low. But if you can stick to that budget, and the emergency fund does actually build up (rather than being a buffer each month that is always spent), great.