This is it, rock bottom. Advice please

enthusiasticsaver

Why isn't the mortgage  showing on the soa? You need to put £573 in the monthly repayment figure as the soa shows that together you can afford repayments and a DMP is not the way to go.  However when you take off the mortgage repayment you have a £150 deficit. You need a new bank account not with LLoyds and as you say you should sever financial links with your husband by closing down the joint bank account.  Are those Lloyds loans debt consolidations? 

Ideally you should have dealt with this together as soon as your income dropped and you had your children and your husband should have financially supported you as you did him when he had money troubles.  The debt would have presumably been a lot lower then and more easily dealt with.  It is a reminder to all those who go on maternity leave to have children to not accept that the reduction in income is their problem alone and their husbands or partners need to support the whole family not treat reduced income through childbearing as the womans problem alone. This is not a direct criticism of you but something I see often on this forum that having children destroys the mothers income potential and the fathers just seem to think that this is their problem where it should be shared. 

Together you have £28k of debt, £20k in your name and £8k in your husbands.  Together if you include the mortgage the outgoings are more than income so a DMP is a solution which will ruin your credit rating for 6 years.  There isn't lots of scope for cutting back the soa but you have not put interest rates on the debts so if they are high then defaulting then doing a DMP is probably the best call. 

Altior

Having read through the thread, I feel the situation might not be as precarious as you feel it is. Your stated SoA has headroom even after all debt repayments, and clearing the loan (husband's) will provide more headroom. 

Is the SoA aspirational, rather than what was actually happening? Of course the one off costs seem to happen all the time, eg I had a gas leak this week so that was £60 excess even though I am insured. That's the emergency budget scenario.

It looks like the unsecured in your name is £20K, give or take, so ideally not worth trashing your credit record for 6 years for if it can be avoided, especially as you're hoping to move.

The expense that stands out to me on the SoA is petrol/diesel at £280pcm. Anything that can be done with that? Work from home, cheaper fuel, less long journeys? Is the car particularly heavy on fuel for some reason? Can it be driven more economically? Possibly target a more economical car in the medium term?

I feel like the most significant immediate challenge is the interest on the debt in your name, which is likely to be terribly high on ccs (although not noted on the SoA). To that end, does your husband have any 0% offers atm? Has he done an eligibility check? If managed properly you could use MT deals to shift some of the high interest debt in your name to low/0% interest in his name. And you have the knowledge that more breathing space is coming in May. 

You do need an emergency fund as a couple/household. If you are reasonably good at financial admin, and have not used them already you could start to build one quite quickly by availing banks of their various switching bonuses that come up. The way I manage that personally is to keep a primary current account that I don't switch/move (Nationwide for the fairer share and RS), but open new basic 'feeder' accounts just to be switched around. It may be that you need to move a couple of DDs to the feeder account to fulfil switching criteria. Just as an example I recently did the Barclays one and that paid £175 bonus only two weeks after switching, with very few requirements (iirc a one off pay in that can be immediately withdrawn, and joining blue rewards). And I can now switch that feeder account to another bank. As there's two of you, you could at least double them. Just that one offer would be £350 for the EF.

Sweet_Girl_x

[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................ 1450

Partners monthly income after tax....... 2150

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

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

Total monthly income.................... 3774[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 573

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

Rent.................................... 427

Management charge (leasehold property).. 0

Council tax............................. 220

Electricity............................. 41

Gas..................................... 41

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

Water rates............................. 30

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

Mobile phone............................ 52

TV Licence.............................. 15

Satellite/Cable TV...................... 56

Internet Services....................... 0

Groceries etc. ......................... 400

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

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

Road tax................................ 23

Car Insurance........................... 43

Car maintenance (including MOT)......... 25

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

Other travel............................ 44

Childcare/nursery....................... 163

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

Medical (prescriptions, dentist etc).... 50

Pet insurance/vet bills................. 45

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

Contents insurance...................... 7

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

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

Presents (birthday, christmas etc)...... 40

Haircuts................................ 40

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

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 2715[/b]

[b]

Assets[/b]

Cash.................................... 1800

House value (Gross)..................... 90000

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

Car(s).................................. 1000

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

Total Assets............................ 92800[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 87000....(573)......0[b]

Total secured & HP debts...... 87000.....-.........- [/b]

[b]Unsecured Debts[/b]

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

Lloyds.........................5000......175.......0

Lloyds.........................4000......100.......0

Lloyds overdraft...............1500......50........0

Loan...........................2000......260.......0

HSBC...........................4500......150.......0

Barclaycard....................600.......50........0

MBNA...........................2000......113.......0

Virgin.........................4500......110.......0

Capital one....................2550......110.......0

Barclaycard....................1800......85........0[b]

Total unsecured debts..........28450.....1203......- [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,774

Expenses (including HP & secured debts). 2,715

Available for debt repayments........... 1,059

Monthly UNsecured debt repayments....... 1,203[b]

Amount short for making debt repayments. -144[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 92,800

Total HP & Secured debt................. -87,000

Total Unsecured debt.................... -28,450[b]

Net Assets.............................. -22,650[/b]

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

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

Sweet_Girl_x

enthusiasticsaver said:

Why isn't the mortgage  showing on the soa? You need to put £573 in the monthly repayment figure as the soa shows that together you can afford repayments and a DMP is not the way to go.  However when you take off the mortgage repayment you have a £150 deficit. You need a new bank account not with LLoyds and as you say you should sever financial links with your husband by closing down the joint bank account.  Are those Lloyds loans debt consolidations? 

Ideally you should have dealt with this together as soon as your income dropped and you had your children and your husband should have financially supported you as you did him when he had money troubles.  The debt would have presumably been a lot lower then and more easily dealt with.  It is a reminder to all those who go on maternity leave to have children to not accept that the reduction in income is their problem alone and their husbands or partners need to support the whole family not treat reduced income through childbearing as the womans problem alone. This is not a direct criticism of you but something I see often on this forum that having children destroys the mothers income potential and the fathers just seem to think that this is their problem where it should be shared. 

Together you have £28k of debt, £20k in your name and £8k in your husbands.  Together if you include the mortgage the outgoings are more than income so a DMP is a solution which will ruin your credit rating for 6 years.  There isn't lots of scope for cutting back the soa but you have not put interest rates on the debts so if they are high then defaulting then doing a DMP is probably the best call. 

Sorry I filled it in wrong. I did it once and pressed clear so had to do it again and I didn't do that bit right.

My husband did help, as I have said before we have always had 1 lot of finances really as all our money goes in together when we get paid and it pays the bills no matter who has what debt as collectively the debt is ours combined. I have been kidding myself thinking that the situation will improve (back to work) etc etc but it's still never enough as when something gets a little better financially, something else goes up (like mortgage or credit cards wanting higher minimum payments)

Most of the rates for my credit cards are 20-30% APR. As mentioned before my husbands are at 0% or 5% promo offers.

Sweet_Girl_x

Altior said:

Having read through the thread, I feel the situation might not be as precarious as you feel it is. Your stated SoA has headroom even after all debt repayments, and clearing the loan (husband's) will provide more headroom. 

Is the SoA aspirational, rather than what was actually happening? Of course the one off costs seem to happen all the time, eg I had a gas leak this week so that was £60 excess even though I am insured. That's the emergency budget scenario.

It looks like the unsecured in your name is £20K, give or take, so ideally not worth trashing your credit record for 6 years for if it can be avoided, especially as you're hoping to move.

The expense that stands out to me on the SoA is petrol/diesel at £280pcm. Anything that can be done with that? Work from home, cheaper fuel, less long journeys? Is the car particularly heavy on fuel for some reason? Can it be driven more economically? Possibly target a more economical car in the medium term?

I feel like the most significant immediate challenge is the interest on the debt in your name, which is likely to be terribly high on ccs (although not noted on the SoA). To that end, does your husband have any 0% offers atm? Has he done an eligibility check? If managed properly you could use MT deals to shift some of the high interest debt in your name to low/0% interest in his name. And you have the knowledge that more breathing space is coming in May. 

You do need an emergency fund as a couple/household. If you are reasonably good at financial admin, and have not used them already you could start to build one quite quickly by availing banks of their various switching bonuses that come up. The way I manage that personally is to keep a primary current account that I don't switch/move (Nationwide for the fairer share and RS), but open new basic 'feeder' accounts just to be switched around. It may be that you need to move a couple of DDs to the feeder account to fulfil switching criteria. Just as an example I recently did the Barclays one and that paid £175 bonus only two weeks after switching, with very few requirements (iirc a one off pay in that can be immediately withdrawn, and joining blue rewards). And I can now switch that feeder account to another bank. As there's two of you, you could at least double them. Just that one offer would be £350 for the EF.

Thanks for replying.

I filled in the form again as I realise i didnt include the mortgage payment. What's your reevaluation?

The petrol part really can't be avoided, we live in the countryside and for me to be able to work we have to drive from our house to my mums, to playgroup, to my work and then to my husbands work and the same at the end of the day. This is about 50 miles a day.

We haven't checked credit cards for him, we did look at extending the loan we have but that was a no but haven't looked at comparison sites for any credit card deals.

I have always been interested in the current account opening scenario but I thought I might be declined due to my debt history? Can they decline a current account?

I really dont want to have to default and get myself in a horrible situation (especially because I am so so worried about threatening letters, CCJs, bailiffs etc) I just want a safe space for my family. I feel like I have seriously let myself down and instead of managing I am now drowning. I am unable to give my family the life I wanted them to have and I cannot see that ever happening. Even if I hold on as best I can, there will be times where my situation is better (perhaps Xmas bonus of a coupk3 of hundred, council tax breaks Feb mar, loan payments end in may) can i ever dig myself out of the hole or will I just be paying minimum payments forever and still have this debt on my back? Am I just delaying the DMP and shooting myself in the foot?

gwynlas

Do not beat yourself up your debts are quite low by many peoples standards and they will come to an end.
Do not be afraid of threatening letters they aren't that serious and providing you let your creditors know what is happening it is not going to lead to CCJs or bailiffs.

It is up to you whether you manage your own DMP or use Stepchange 

You are both employed you have secure housing your children are young and have all they need for the moment and once you are in a better position you can plan whatever you wish. 

Altior

Sweet_Girl_x said:

Altior said:

Having read through the thread, I feel the situation might not be as precarious as you feel it is. Your stated SoA has headroom even after all debt repayments, and clearing the loan (husband's) will provide more headroom. 

Is the SoA aspirational, rather than what was actually happening? Of course the one off costs seem to happen all the time, eg I had a gas leak this week so that was £60 excess even though I am insured. That's the emergency budget scenario.

It looks like the unsecured in your name is £20K, give or take, so ideally not worth trashing your credit record for 6 years for if it can be avoided, especially as you're hoping to move.

The expense that stands out to me on the SoA is petrol/diesel at £280pcm. Anything that can be done with that? Work from home, cheaper fuel, less long journeys? Is the car particularly heavy on fuel for some reason? Can it be driven more economically? Possibly target a more economical car in the medium term?

I feel like the most significant immediate challenge is the interest on the debt in your name, which is likely to be terribly high on ccs (although not noted on the SoA). To that end, does your husband have any 0% offers atm? Has he done an eligibility check? If managed properly you could use MT deals to shift some of the high interest debt in your name to low/0% interest in his name. And you have the knowledge that more breathing space is coming in May. 

You do need an emergency fund as a couple/household. If you are reasonably good at financial admin, and have not used them already you could start to build one quite quickly by availing banks of their various switching bonuses that come up. The way I manage that personally is to keep a primary current account that I don't switch/move (Nationwide for the fairer share and RS), but open new basic 'feeder' accounts just to be switched around. It may be that you need to move a couple of DDs to the feeder account to fulfil switching criteria. Just as an example I recently did the Barclays one and that paid £175 bonus only two weeks after switching, with very few requirements (iirc a one off pay in that can be immediately withdrawn, and joining blue rewards). And I can now switch that feeder account to another bank. As there's two of you, you could at least double them. Just that one offer would be £350 for the EF.

Thanks for replying.

I filled in the form again as I realise i didnt include the mortgage payment. What's your reevaluation?

The petrol part really can't be avoided, we live in the countryside and for me to be able to work we have to drive from our house to my mums, to playgroup, to my work and then to my husbands work and the same at the end of the day. This is about 50 miles a day.

We haven't checked credit cards for him, we did look at extending the loan we have but that was a no but haven't looked at comparison sites for any credit card deals.

I have always been interested in the current account opening scenario but I thought I might be declined due to my debt history? Can they decline a current account?

I really dont want to have to default and get myself in a horrible situation (especially because I am so so worried about threatening letters, CCJs, bailiffs etc) I just want a safe space for my family. I feel like I have seriously let myself down and instead of managing I am now drowning. I am unable to give my family the life I wanted them to have and I cannot see that ever happening. Even if I hold on as best I can, there will be times where my situation is better (perhaps Xmas bonus of a coupk3 of hundred, council tax breaks Feb mar, loan payments end in may) can i ever dig myself out of the hole or will I just be paying minimum payments forever and still have this debt on my back? Am I just delaying the DMP and shooting myself in the foot?

Just instinctively that's still on the high side for fuel. It's not the critical point here, but in the medium term that is a big drag on your living expenses (not too far off the mortgage), so is worth looking at improving. I'd be interested to know what your average MPG is.

On the wider point, I don't feel it's a compelling case for a dmp, but it's not mad either. I believe it could be avoided with the right strategy. 

You could get your council tax moved to 12 annual payments rather than 10, probably easier for budgeting and as we're half way through the year, that would be a little more short term relief. I actually just did it online myself, very straight forward. 

Personally, I don't feel it's worth getting stressed about potential CCJs and recovery action until you commit to a dmp as that would be the line in the sand. Once you have committed to a dmp (if going down that route), you can then prepare for defaulting and then setting up repayments. The key point is that lenders cannot carry out any formal action until they have issued the legal default through the post, demanding the full amount. Anything before that is insignificant white noise.

Regarding the current account and bonus hunting, you can open a basic current account with no credit checks (just security/identity). As long as you don't apply for an overdraft facility.

An eligibility checker would be fine for your husband, ideally for MT (mse has one), it's just soft checks so can't do any harm without an actual application. Many lenders also offer deals on current cards, these can be viewed in their respective apps usually. Of course the right mindset is needed here if considering, and strictly only using any MT received to settle or reduce liabilities with high APRs. Maybe do this via the feeder accounts I was referencing above. 

kimwp

Sweet_Girl_x said:

Altior said:

Having read through the thread, I feel the situation might not be as precarious as you feel it is. Your stated SoA has headroom even after all debt repayments, and clearing the loan (husband's) will provide more headroom. 

Is the SoA aspirational, rather than what was actually happening? Of course the one off costs seem to happen all the time, eg I had a gas leak this week so that was £60 excess even though I am insured. That's the emergency budget scenario.

It looks like the unsecured in your name is £20K, give or take, so ideally not worth trashing your credit record for 6 years for if it can be avoided, especially as you're hoping to move.

The expense that stands out to me on the SoA is petrol/diesel at £280pcm. Anything that can be done with that? Work from home, cheaper fuel, less long journeys? Is the car particularly heavy on fuel for some reason? Can it be driven more economically? Possibly target a more economical car in the medium term?

I feel like the most significant immediate challenge is the interest on the debt in your name, which is likely to be terribly high on ccs (although not noted on the SoA). To that end, does your husband have any 0% offers atm? Has he done an eligibility check? If managed properly you could use MT deals to shift some of the high interest debt in your name to low/0% interest in his name. And you have the knowledge that more breathing space is coming in May. 

You do need an emergency fund as a couple/household. If you are reasonably good at financial admin, and have not used them already you could start to build one quite quickly by availing banks of their various switching bonuses that come up. The way I manage that personally is to keep a primary current account that I don't switch/move (Nationwide for the fairer share and RS), but open new basic 'feeder' accounts just to be switched around. It may be that you need to move a couple of DDs to the feeder account to fulfil switching criteria. Just as an example I recently did the Barclays one and that paid £175 bonus only two weeks after switching, with very few requirements (iirc a one off pay in that can be immediately withdrawn, and joining blue rewards). And I can now switch that feeder account to another bank. As there's two of you, you could at least double them. Just that one offer would be £350 for the EF.

Thanks for replying.

I filled in the form again as I realise i didnt include the mortgage payment. What's your reevaluation?

The petrol part really can't be avoided, we live in the countryside and for me to be able to work we have to drive from our house to my mums, to playgroup, to my work and then to my husbands work and the same at the end of the day. This is about 50 miles a day.

We haven't checked credit cards for him, we did look at extending the loan we have but that was a no but haven't looked at comparison sites for any credit card deals.

I have always been interested in the current account opening scenario but I thought I might be declined due to my debt history? Can they decline a current account?

I really dont want to have to default and get myself in a horrible situation (especially because I am so so worried about threatening letters, CCJs, bailiffs etc) I just want a safe space for my family. I feel like I have seriously let myself down and instead of managing I am now drowning. I am unable to give my family the life I wanted them to have and I cannot see that ever happening. Even if I hold on as best I can, there will be times where my situation is better (perhaps Xmas bonus of a coupk3 of hundred, council tax breaks Feb mar, loan payments end in may) can i ever dig myself out of the hole or will I just be paying minimum payments forever and still have this debt on my back? Am I just delaying the DMP and shooting myself in the foot?

Well, you could try holding out, but that means absolutely no spending above budget, which is really hard to do, so you'd need to cut back on haircuts, clothing, entertainment, presents to  nothing for a non-negative SOA and to build a pot for essentials emergencies (emergency house/car repairs, vet bills, genuine need for clothing) to avoid going further into debt. Cable TV is an obvious one to cut, also switching to SIM only contracts, I'm assuming those are in there because you're in contract and can't cancel. And you might be able to cut back on groceries, but £400 for four people plus pets is not silly amounts. 

You haven't let anyone down, you've done your best and that's all anyone can do. If you default, you'll get some letters and maybe some calls, but it won't be the horrible situation of ccjs and baillifs that you are imagining. 

ManyWays

Have you asked your mortgage lender what fix you can get? That should save you some money every month