Advice for no debt solution

Wicked · 9 September at 6:54PM

Hi
I posted in the wrong thread but just looking for some advice about a debt solution and guided over here

I completed a DRO application with money wellness but the advisor didn’t submit it as he said my salary sacrifice car lease would make it unsuitable due to the cost. The cost is £579 but actual cost to take home is £400 and this includes insurance, maintenance and everything other than the electric. At the time i wasnt able to get finance and a car is a requirement if my job as I am a family worker. The cost increased from £360 due to mileage being 15k a year so there was only one cheaper option at £340 but this wasn’t available for months.

I’ve attached my outgoings etc and am not quite breaking even so no debt solution could be offered and I wondered if anyone could share some advice. I have considered IVA but unsure if I could sustain it for 5 years as I’m struggling already.

This has been caused by my financial mismanagement and a few other things along the way such as relationship breakdown etc but mostly from my adhd which I now have medication for and am better able to manage.

Hope someone answers offer some advice 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......... 0

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 1620

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

Benefits................................ 224

Other income............................ 114[b]

Total monthly income.................... 1958[/b][b]

Monthly Expense Details[/b]

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

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

Rent.................................... 728

Management charge (leasehold property).. 0

Council tax............................. 138

Electricity............................. 180

Gas..................................... 120

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

Water rates............................. 130

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

Mobile phone............................ 10

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

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

Internet Services....................... 49

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

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

Petrol/diesel........................... 0

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

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

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

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

Other travel............................ 50

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

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

Medical (prescriptions, dentist etc).... 36

Pet insurance/vet bills................. 10

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

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

Life assurance ......................... 12

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

Presents (birthday, christmas etc)...... 20

Haircuts................................ 18

Entertainment........................... 35

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

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

Gym..................................... 23[b]

Total monthly expenses.................. 1966[/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]

Secured & HP Debts[/b]

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

Mortgage...................... 0........(0)........0

Hire Purchase (HP) debt ...... 611......(0)........0[b]

Total secured & HP debts...... 611.......-.........- [/b]

[b]Unsecured Debts[/b]

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

Council tax ...................138.......0.........0

British gas....................1686......0.........0

British Gas ...................630.......0.........0

Northumbrian water.............76........76........0

Lending stream.................929.92....153.......0

Clearpay.......................90........174.......0

Halifax o/d....................279.......14........0

Zable..........................527.98....16........0

Klarna ........................875.......400.......0

Paypal.........................4101......123.......0

Next online....................1673......84........0

Halifax cc.....................3656......110.......0

Virgin money cc................3359......101.......0

Hsbc...........................12779.....491.......0

Virgin media ..................49........0.........0[b]

Total unsecured debts..........30848.9...1742......- [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,958

Expenses (including HP & secured debts). 1,966

Available for debt repayments........... -8

Monthly UNsecured debt repayments....... 1,742[b]

Amount short for making debt repayments. -1,750[/b]

[b]Personal Balance Sheet Summary[/b]

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

Total HP & Secured debt................. -611

Total Unsecured debt.................... -30,848.9[b]

Net Assets.............................. -31,459.9[/b]

sourcrates · 9 September at 7:12PM

You can`t do an IVA or debt management, as you have no disposable income to make payment with.

You are £1750 short in your budget, how did you get to this position, assume non of these debts are currently being serviced?

Well you rent, have no assets, and have no disposable income, so very little a creditor can do to you, I have to say the car at £600 quid a month is not really affordable, but we are were we are.

I`d send letters to all concerned showing your budget and advising them you cannot pay them anything, explain your circumstances to them, and say if things change you will update them.

Or save £680 and go bankrupt, but I see no need for that.

If anyone has any other ideas, feel free to share them.

fatbelly · 9 September at 7:49PM

Previous thread

https://forums.moneysavingexpert.com/discussion/6627871/dro-salary-sacrifice#latest

I'm not seeing why this isn't a DRO situation. Maybe try Citizens Advice