In a 40k hole that I don't know how to get out of!

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/82093597#Comment_82093597

I would expect that to be student loan repayments. I’m on about 7k a year less and pay £400+ student loan a month

ArtyJ931

A realistic SOA that accounts for all your outgoings and allows you to save up for “expected but irregular” costs such as birthdays, Christmas, broken white goods etc is what you need to do. That covers all your actual costs such as those mentioned above. This will show you how much you actually have left over to pay your debts. This amount you can then pro rata out to each debt after they have defaulted if you go down the DMP route.

curlu

welcome, we are all in the same boat here and there is wonderful advice. I stopped paying my DD’s for 2 loans and 5 credit cards in December last year and 3 have now defaulted. I had thought I would do a DMP through stepchange but it’s actually been really easy to set up repayment plans directly with the debt collectors who the 3 defaulted debts have been sold on to, still more to go, but it looks like I will be paying for all 7 debts not much more than one of the loan repayments…..yes it will take years but it’s been a relief to have a plan. Don’t forget about affordability complaints too, I only have 1 that I felt confident I had a case to submit and am awaiting the outcome.

elsien

https://forums.moneysavingexpert.com/discussion/comment/82093543#Comment_82093543

finding a quiet time, perhaps seeing if there was someone else you can look after the kids depending on their age, and be able to have a proper discussion about the finances without interruption.

Brie

OK so some more questions and comments for you…

Benefits................................ 0 - no child benefit? perhaps not with your salary.
Gas..................................... 0 - someone has already asked if you're in an electric only home
Mobile phone............................ 42.86 - when do the contracts end? get sim only and reduce this to under £20.
TV Licence.............................. 14.95 - do you watch live TV/iplayer? if not cancel.
Satellite/Cable TV...................... 88 - as suggested freesat might provide all you need.
Internet Services....................... 0 - bundled in with your satellite?
Groceries etc. ......................... 250 - this and the next 2 look like you're guessing. check your statements.
Clothing................................ 30 - as above
Petrol/diesel........................... 200 - as above
Road tax................................ 14.43
Car Insurance........................... 54.43
Car maintenance (including MOT)......... 100 - another guess?
Car parking............................. 0 - free parking everywhere you go?
Other travel............................ 0 - no buses or underground ever used?
Childcare/nursery....................... 0 - with 2 kids? or are they teens?
Other child related expenses............ 0 - no clubs, lessons, sports days? school trips?
Medical (prescriptions, dentist etc).... 0 - do you have a medical plan through work?
Buildings insurance..................... 0 - no shared insurance for your rental?
Contents insurance...................... 7.46
Life assurance ......................... 0 - presumably both you and your wife have this through work?
Presents (birthday, christmas etc)...... 10 - is this your aim for the future?
Haircuts................................ 20 - for all 4 of you?
Entertainment........................... 300 - as stated already this is high. Or does this include the kid's expenses?
Emergency fund.......................... 50 - an actual separate emergency account? but you have no cash assets.
Playstation Finance Agreement........... 18.82 - relatively cheap entertainment but is it used? can it be cancelled?
Kids Bike Agreement..................... 31.68[b] - buy now, pay later scheme? is there interest being charged?

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Paypal.........................737.78....28.85.....23.9
HSBC...........................9514.12...291.1.....26.9
Barclaycard....................5623.43...213.3.....0
MBNA...........................7435.48...357.8.....0
Zable..........................1998.2....44........0
Virgin 2.......................4462.95...39........0
Natwest........................3446.92...114.9.....0
Virgin 1.......................3795.22...160.......0

As already asked we need the finish dates for the 0% offers and what the future APR will be. How's your credit report look? how possible would another 0% offer be so you can clear some of this before interest gets worse? I suspect Zable will go to a very high rate so it's either find money to clear that or seriously consider defaulting in order to get in to a DMP.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/82093777#Comment_82093777

That's really interesting only 3 out of 7 have defaulted in 8 months. I've got probably 13 or so when I finally stop paying so interesting to see real-time how long it takes. I'll dig out your previous posts and gen up your debt journey. Thank you

curlu

https://forums.moneysavingexpert.com/discussion/comment/82094577#Comment_82094577

yes as others have said, nothing is fast in the world of debt recovery. I just hope the others I am waiting for happen soon so the 6 years starts asap for me.

ManyWays

in a typical DMP with a DMP firm at least 3 out of 7 would usually have defaulted by 7 months. And any that don't, you can make complaints that they should have.

Overdrafts in particular are usually quicker to default in a DMP than if you just stop paying.