Help with self managed dmp 80k CC and loans

wobbhjelly

Hello

ive been browsing topics on this site for a while and reading up on all the advice .

My story is a follows , two years ago I lost my eldest daughter to cancer at 6 years old . Due these circumstances having to take time of work and after my wife was unable to return to work as she worked in a primary school and found it too hard to return to work especially being around children .

I worked 7 days a week and put more and more things on credit taken out loans to try and make up for the lost incomes . 5 months ago my company had to reduce our overtime leading me to have a fullon breakdown .

i cancelled all my direct debits to my non-secure creditors and ignored them . I have recently contacted them all once the account fell into default to arrange a token p payment plan.

my biggest worry is that they will come after my house which is the place my daughter grew up in . If I was to lose my house I think it would finish me off .

i have quite a lot of equity shared between me and wife of about 180,000. The house is worth 380,000 with a mortgage of 175,000 and a secured loan of 40,000 which is all up to date .

my main question is what would be the best plan of action ? If I have an agreement to pay even if it is a little amount will they come after my house ? . I may be able to ask my mum to help with a lump sum of about 20,000. What would be best to spend this money .

thank you 

fatbelly

Give us an soa and do nothing quickly.

https://lemonfool.co.uk/financecalculators/soa.php

It's good that you have let the nonpriority debts default. Not sure about the token payments

wobbhjelly

[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......... 1

Number of cars owned.................... 0[b]

Monthly Income Details[/b]

Monthly income after tax................ 3650

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

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

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

Total monthly income.................... 3650[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 590

Secured/HP loan repayments.............. 375

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

Management charge (leasehold property).. 0

Council tax............................. 228

Electricity............................. 110

Gas..................................... 110

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

Water rates............................. 108

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

Mobile phone............................ 65

TV Licence.............................. 12

Satellite/Cable TV...................... 15

Internet Services....................... 45

Groceries etc. ......................... 700

Clothing................................ 10

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

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

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

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

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

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

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

Other child related expenses............ 20

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

Pet insurance/vet bills................. 20

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

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

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

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

Presents (birthday, christmas etc)...... 15

Haircuts................................ 5

Entertainment........................... 0

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

Emergency fund.......................... 100[b]

Total monthly expenses.................. 2528[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 375000

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

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

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

Total Assets............................ 375000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 179000...(590)......1.49

Secured Debt.................. 40000....(375)......0[b]

Total secured & HP debts...... 219000....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Castle community bank..........1476......10........1

Castle community bank..........8291......40........1

Zopa...........................2258......20........1

Santander .....................8900......30........1

HSBC weston....................8943......20........1

Lloyds.........................4700......1.........1

Lloyds.........................3800......1.........1

ACI updraft ...................6200......20........1

Tesco .........................17784.....40........1

Tesco .........................3555......10........1

Zopa loan......................2965......20........1[b]

Total unsecured debts..........68872.....212.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,650

Expenses (including HP & secured debts). 2,528

Available for debt repayments........... 1,122

Monthly UNsecured debt repayments....... 212[b]

Amount left after debt repayments....... 910[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 375,000

Total HP & Secured debt................. -219,000

Total Unsecured debt.................... -68,872[b]

Net Assets.............................. 87,128[/b]

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

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

wobbhjelly

Here’s my SOA

Brie

Sorry to hear about your situation.  The death of a child is a dreadful thing to deal with.  

I'm not surprised that your wife didn't go back to teaching young children given the circumstances.  Does she have some alternative?  I'm assuming she's a stay at home mom for the time being.  Would she be able to do some online tutoring of older students?  Or go into a different field all together?  Maybe not immediately but in the future - she might spend some time retraining now to give herself better prospects.  

As for the SOA.....first thought is the numbers are all too round.  Have you used a couple of month's bank/card statements to get the figures together?  For instance you say TV licence is £12 but mine is £14+.  Not saying everything has to be to the penny but the more accurate it is the better the conversation can be about how to progress things.  Currently you seem to have a lot of spare income but that won't be the case if there are expenses missing.  

My guess is that gas and electric might be too low and water might be too high.

No car so no car expenses, fair enough.  But do you walk everywhere?  No buses, no taxis?  

Do you really have no building, contents or life insurance?  Perhaps you're insured through work which is fine.  But you do pay pet insurance so you've obviously thought about insurance in the past.

Mobile phone at £65?  Presumably on a contract that needs to run.  Put a note in your diary to switch to sim only when the contract ends.  

Don't be discouraged by any negativity you might feel at my questions.  You completely have my sympathy.  My debts in the past were much more than yours and I know that there can be a solution to what currently may seem a very dark situation.  Come back to this thread when you have more details and others will add their comments and suggestions.  

final question - are you able to give any info on the secured debts?  not necessary of course but if you don't have a car I can't help but wonder what they might include given you've pegged them as note being charged any interest.

sourcrates

Are any of the debts joint debts or just in your name?.

I would say your looking at debt management here, I notice you`ve put down repayment figures using token payment amounts, do you really have £1122 available for debt repayment?

As for CCJ`s and charging orders, there is a slim possibility Tesco may go down that route with a debt of almost 18k, but as long as payments are maintained on a CCJ, no further action will occur, also courts go out of their way these days to keep families in homes, one reason why orders for sale are so rare, so I wouldn`t worry about that happening, on paper it could be a possibility, but with unsecured debts lenders don`t usually go that far.

Brie

Oh and do you both have a bank account you are using that is unrelated to any of your debts? If not, open one and manually swap all your DDs and your income to that.

Barclays might be an option but check who the underlying bank is for Tesco etc.

wobbhjelly

Brie said:

Sorry to hear about your situation.  The death of a child is a dreadful thing to deal with.  

I'm not surprised that your wife didn't go back to teaching young children given the circumstances.  Does she have some alternative?  I'm assuming she's a stay at home mom for the time being.  Would she be able to do some online tutoring of older students?  Or go into a different field all together?  Maybe not immediately but in the future - she might spend some time retraining now to give herself better prospects.  

As for the SOA.....first thought is the numbers are all too round.  Have you used a couple of month's bank/card statements to get the figures together?  For instance you say TV licence is £12 but mine is £14+.  Not saying everything has to be to the penny but the more accurate it is the better the conversation can be about how to progress things.  Currently you seem to have a lot of spare income but that won't be the case if there are expenses missing.  

My guess is that gas and electric might be too low and water might be too high.

No car so no car expenses, fair enough.  But do you walk everywhere?  No buses, no taxis?  

Do you really have no building, contents or life insurance?  Perhaps you're insured through work which is fine.  But you do pay pet insurance so you've obviously thought about insurance in the past.

Mobile phone at £65?  Presumably on a contract that needs to run.  Put a note in your diary to switch to sim only when the contract ends.  

Don't be discouraged by any negativity you might feel at my questions.  You completely have my sympathy.  My debts in the past were much more than yours and I know that there can be a solution to what currently may seem a very dark situation.  Come back to this thread when you have more details and others will add their comments and suggestions.  

final question - are you able to give any info on the secured debts?  not necessary of course but if you don't have a car I can't help but wonder what they might include given you've pegged them as note being charged any interest.

Unfortunately my wife suffers still quite badly with mental health issues . I guess I never planned for anything after what happened and lived beyond my means trying to hold everything down.

I  should have added to the SOA I transfer my wife 350 pounds a month to help her bills . Sorry I rushed it a bit , I have a secured loan for 37,000 pounds when we first moved in before anything happened, I think at 5% for the next three years to extend the house . And the other is the mortgage . 

I have a salary sacrifice electric car that is deducted out my wages . It’s electric and possibly why my electric is that expensive. This is cheaper then paying tax for someone reason on a company car .

life insurance is through work, 

I’ll try to do an update SOA later I’m just a bit anxious and worried . I think if anything happens to my house my wife wouldn’t cope anymore then she is 

wobbhjelly

sourcrates said:

Are any of the debts joint debts or just in your name?.

I would say your looking at debt management here, I notice you`ve put down repayment figures using token payment amounts, do you really have £1122 available for debt repayment?

As for CCJ`s and charging orders, there is a slim possibility Tesco may go down that route with a debt of almost 18k, but as long as payments are maintained on a CCJ, no further action will occur, also courts go out
of their way these days to keep families in homes, one reason why orders for sale are so rare, so I wouldn`t worry about that happening, on paper it could be a possibility, but with unsecured debts lenders don`t usually go that far.

All debts are in my name . I forgot to add that I also transfer my wife 300 pounds to pay her debts and things like therapy and medication .

i think 1100 sounds a bit to high . I’d say it’s more along the 650-700 mark .

Ive been reading horror story’s about statutory demands and it’s got me really worried .
would you recommend continuing with the token payments and saving to be making settlement offers or agreeing higher payments on all debts .

also is there any chance of a CCJ or statutory deman  at the moment if all my creditors have agreed low payment plans in writing for 6 months .

Sorry for all these questions I’m struggling to sleep with worry about my house 

Grumpelstiltskin

if your  wife transfers £350 monthly to pay towards bills does she have an income or does it come from savings?

You are doing the worse thing you can do you are panicing, you must slow down and stop this panic. Nothing terrible is going to happen when you stop making payments to your debts. Debt collection happens very slowly, you will have time to sort something out.

Your SOA needs to be accurate and you need the interest rates on the debts.

Do you receive child benefit, if not have you claimed it ?

wobbhjelly

Grumpelstiltskin said:

if your  wife transfers £350 monthly to pay towards bills does she have an income or does it come from savings?

You are doing the worse thing you can do you are panicing, you must slow down and stop this panic. Nothing terrible is going to happen when you stop making payments to your debts. Debt collection happens very slowly, you will have time to sort something out.

Your SOA needs to be accurate and you need the interest rates on the debts.

Do you receive child benefit, if not have you claimed it ?

Sorry I transfer 350 to my wife for bills that come out of her account . 

I know I guess when you’ve been what we’ve been through you think the worse

ill do an accurate SOA , do I need to include the interest rates even if they are defaulted and interest has been frozen?

my wife does receive child benefit .