Debt getting me down

llcooljayne1

hi everyone,

I am pretty desperate for help and not sure what to do! I have around £40k worth of debt and just about covering everything every month! 

I have spoken to pay plan and cccs and one has suggested an Iva and the other a dmp (which will last 17 years!!) the thought of either of these frightens the life out of me because I am worried about how they will affect me long term.

Right now myself and my partner have a mortgage on our house but my parents live with us and are on the deeds as they own the majority of the house. They put down a large deposit and myself and my partner got a mortgage on the remainder. Will either an IVA or DMP affect this? I don’t want to put anyone else at risk as this debt is all mine! 

Not sure where to turn 😞

ManyWays

The house is not at risk in a DMP or an IVA.
When does your current mortgage fix end and what is the current interest rate?

If a DMP will last 17 years, the minimum payments you are currently "just about covering" are almost certainly unaffordable, and that you probably need to use a card most months to get by? So something has to happen!

I said "if" there as there may be ways to speed up the DMP, sometimes a lot. Affordability complaints early on and later making lower settlement offers to debts.

But the best place to start is by filling out a Statement of Affairs (SoA) so we can see the full situation. IVAs are only right for a small number of people, perhaps you are one of them, probably nor, but let's see!

https://www.stoozing.com/soa.php

Please put in the lender names. If your parents are paying some of the bills, a note to explain that would help.

fatbelly

I am not sure how you are meeting the contractual payment on 40k debt if you only have enough surplus to pay it back in a dmp over 17x12= 200 months! That doesn't really add up. But if you only have £200 per month to pay your debts, and are a homeowner, I'd say an IVA is worth exploring.

Do your research so that you understand how they work, and choose an IP that you are comfortable with. You will be through it,and all marks off your file, after 6 years

llcooljayne1

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

Household Information[/b]
Number of adults in household........... 4
Number of children in household......... 2
Number of cars owned.................... 4[b]

Monthly Income Details[/b]
Monthly income after tax................ 2000
Partners monthly income after tax....... 0
Benefits................................ 178
Other income............................ 0[b]
Total monthly income.................... 2178[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 300
Secured/HP loan repayments.............. 213
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 100
Gas..................................... 50
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 12
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 280
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 17
Car Insurance........................... 32
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 90
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 33
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 1382[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 770000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0[b]
Total Assets............................ 779000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 159000...(300)......0
Hire Purchase (HP) debt ...... 5500.....(213)......0[b]
Total secured & HP debts...... 164500....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Plata..........................25347.....532.......0
Fluid..........................3200......120.......0
Mbna...........................3000......140.......0
Barclaycard....................3300......110.......0
Santander......................2600......75........0[b]
Total unsecured debts..........37447.....977.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,178
Expenses (including HP & secured debts). 1,382
Available for debt repayments........... 796
Monthly UNsecured debt repayments....... 977[b]
Amount short for making debt repayments. -181[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 779,000
Total HP & Secured debt................. -164,500
Total Unsecured debt.................... -37,447[b]
Net Assets.............................. 577,053[/b]

[i]Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

llcooljayne1

I have based the SOA on my share of what I pay to the household bills as this is split between four adults

ManyWays

That is a massive Plata debt; how much did you borrow? was it a consolidation loan? what interest rate is it?

I

llcooljayne1

It was originally £20000 at 21% APR and used to pay for moving costs plus my old car off

Time2Go_25

You could do with adding the APR of the loans. Can your partner not help with the debt, I believe when you last posted they were on over £45k per year. It's probably best to regard it as two families and redo the SOA including your partners income and just split things in two. Assuming it is split in 4, £600 per month for gas and electric seems a little high, as does £1120 per month on groceries.

llcooljayne1

Unfortunately he got made redundant and has had to take another job on a lot less pay whilst looking for something else so he can’t help much. Plus I don’t really want to rely on him to help as I feel like I got myself into this mess I need to get myself out of it.

I will get all the documents when I’m home and get the APR’s of everything and add them.

I have been looking into an IVA however the only debt that I’m struggling with at the moment is the Plata one. I can pay the rest: is there such a thing to just have one debt set up in a payment plan??

ManyWays

I think it would help to know which bills are split with the parents.

How old are the children?

llcooljayne1

all the bills are aside from groceries as my dad works away so not here. The kids are 12 and 7