Have I done the right thing?

Gutted

Hi All, first post so please bear with me.

I'm 25, and have been struggling with debts I owe since my father passed away 4 years ago, Due to this I suffered from bad depression and for other reasons, ended up leaving my Job.

Before this I'd worked overseas and did temp work in the winter, my mum and dad helped me with money during the winter when I was between work.

After dad died, I went back overseas to work, and always said that if I found a permenant job in the winter, I would stay and sort myself out. Despite my qualifications/skills etc, I'd always get interviewed for jobs, but would never get them because the employers were "worried I'd go back overseas in 6 months" even though I'd said I wasn't, and wouldn't have applied for the job If I was planning on leaving. So then it would come time to go back abroad, and I'd go because I was unhappy at not being able to find work other than temptin - I felt like I was in a vicious circle - because of no regular work, I was also getting behind on debts I used to manage easily before dad died when I was in a steady job, so I'd go back overseas to work (which I know is stupid).

Anyway, to cut a long story short, I came home, got a job I love, and am planning on staying there as long as possible as there are so many opportunites, my debts were sent to collection agencies and I arranged to pay X amount on each which totalled around £190 a month.

However, Mum is really struggling with cash, and as I was living at home as well as the foster kids, bills were huge and after sitting down and working things out, It worked out cheaper for me and mum if I moved in with a friend which was closer to work and saved me £100 a month in bus fares etc.

I owe my mum around £3k and I worry so much about her that I give her £300 a month just to make sure her bills are paid, but it obviously leaves me with not much at all.

After doing my budget planner, working out what I spend etc, after paying all my bills/what I owe/essentials, I'm left with £48 a month to live off.

It's really getting me down so I bit the bullet and Contacted CCCSA who were brilliant, and sent me the booklet about paying the £48 a month through the DMP.

Just seeing it all there in writing has lifted a huge cloud and for the first time knowing that there is someone there to help me, and the lady I spoke to on the phone was brilliant.

I plan on paying more into the DMP once I'm sorted in all the other areas, but I just wanted to know if people think its the best course for me?

I know its going to affect my credit rating, but as its already in tatters anyway, I thought what have I got to lose.

Sorry for rambling, I just feel like I'm on a roll here that I can finally get some sort of happy life back. Just wanted to check that there are no other "better" options xxx

GeorgeUK

Welcome and well done on posting.

First thing i would suggest is to post up your Statement of Affairs so we can see if there are any savings to be made. There's a good calculator here, then just paste the data in MSE layout.
http://www.makesenseofcards.com/soacalc.html

Speaking to CCCS (is this who you meant?) is a good start and will be able to advise on how to deal with your creditors as well as arranging payments.

For your current debts however, i would ask for a copy of the CCA (Consumer Credit Agreement) from whoever you are currently paying. If they can't produce this within 12+2 working days, you can stop making payments. There are template letters on the site for this.

Becky77

Hello there, and welcome.
It certainly sounds as though you have been through such an awful lot recently and I'm glad that you've managed to find someone to help you with your debts.
It's difficult to decide the right thing to do - I've recently started a DMP with payplan, after chatting to several people here, and I sleep well for the first time last night.
FYI I'm on a plan which is to be reviewed every 3 months, so I can pay more into it if I need to, and like you say once other areas of your life are a bit more settled, you can start paying in more also.
All the best, and I hope everything works out for you.
Bex

Gutted

Thankyou, Yes I meant CCCS, Not sure where the A came from!

I've done my SOA and I'll try and explain the best I can what I spend on. As I'm living with a friend, she pays the council tax and gas/electric and has said for me to just pay for the phone/internet and water as its not as much.

Although my mobile is £40 a month, I get unlimited texts AND calls from this month so it will reduce to £30 a month roughly sometimes its less, sometimes its more - I have friends overseas so if I ever need to text them I get charged - but I do try my best to use MSN or email as much as possible to cut this down.

My grocery list seems alot for 1 person, however, I am allergic to most soap powder, and after LITERALLY years of finding something that doen't irritate my skin, my mum found the fairy liquid tab things are the only thing that dont affect me - but these are expensive.

I also suffer from Bad IBS and lactose intolerance, so I have to buy Lactose free milk which is stupidly expensive for what I get, and I also have to get wheat/gluten free foods which are also expensive - I eat alot of fruit and veg as this seems to not afect the IBS, but again, its so expensive - unfortunately where I live, there is no market to buy it cheaper, only Tesco - I don't drive so by the time I've paid out for bus fares to get to the markets, I'm not really saving anything.

I pay £11.99 a month subscription to cinemworld for the unlimited pass, as at the moment, thats the only time I get to do something I enjoy and spend times with my friends as I can't afford to go out.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 986
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 986

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 250
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 15
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 130
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 11.99
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 593.99

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Lowells Group..................350.......50........0
Link Financial (Loan)..........3465......50........0
Moorcroft .....................1800......40........0
money owed to parent...........3000......200.......0
Total unsecured debts..........8615......340.......-

Monthly Budget Summary
Total monthly income.................... 986
Expenses (including secure debts)....... 593.99
Available for debt repayments........... 392.01
Monthly UNsecured debt repayments....... 340
Surplus(deficit if negative)............ 52.01

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -8,615
Personal net worth...................... -8,615

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

Violet1

Hi from another (relative) newbie

I spoke to CCCS yesterday and organised a DMP - my income is so low that they've actually advised me to only make £1 per month token payments to each of my creditors for now, with the situation to be reviewed in 6 months time.

It was an easy decision for me - I've been struggling so badly that my creit rating is already in tatters. I do have nagging doubts and guilt about not paying back what I owe, but if I do manage to get more coming in then I will alter the arrangements accordingly

Like you, I can see the light at the end of the tunnel for the first time in, well, years...

Hopefully this is the start of happier times for you

V

ltm07

Hi,mobile phone a little high in my opinion. OH & I have a contract with T-Mobile & rarely spend more than £20 a month each. Food,is this just for yourself? We do our regular shop at Aldi,saving around £100 for 2 adults & 13 year old girl. Our bill is always less than £50 so for one person it would be less than £20. Also check out the OS board to get ideas for meal planning,cooking from scratch etc. Good luck!!

Gutted

Violet1 wrote: »

Hi from another (relative) newbie

I spoke to CCCS yesterday and organised a DMP - my income is so low that they've actually advised me to only make £1 per month token payments to each of my creditors for now, with the situation to be reviewed in 6 months time.

It was an easy decision for me - I've been struggling so badly that my creit rating is already in tatters. I do have nagging doubts and guilt about not paying back what I owe, but if I do manage to get more coming in then I will alter the arrangements accordingly

Like you, I can see the light at the end of the tunnel for the first time in, well, years...

Hopefully this is the start of happier times for you

V

Hi Violet, in a way its so reassuring to know there's other people out there who know how it feels. My credit rating is so bad anyway that I don't even WANT to ever have anything else, even if I could, but I'd much rather pay less a month at the moment and feel happy, than carry on as I am and be in tears constantly it seems with no way out.

Luckily my employers are excellent, and I start training soon which once finished in 2 years, means my annual salary will ATLEAST double, which will mean that I'm able to pay off more of my debts.

It was such a huge thing to admit to my debts - losing my dad had such a huge impact as I was 20, and he was my best friend, that I just went off the rails, and I guess speaking about the problem i'm in now means I have to speak about dad too which upsets me - even writing this down I'm in tears even though I know my money situation will improve, its just crap to know. Makes it harder as I'm only 25, my friends are going out and all I can do is the Cinema with my unlimited card, and taking my own water and nibbles! I just really want my life back.

Gutted

ltm07 wrote: »

Hi,mobile phone a little high in my opinion. OH & I have a contract with T-Mobile & rarely spend more than £20 a month each. Food,is this just for yourself? We do our regular shop at Aldi,saving around £100 for 2 adults & 13 year old girl. Our bill is always less than £50 so for one person it would be less than £20. Also check out the OS board to get ideas for meal planning,cooking from scratch etc. Good luck!!

It will be reduced to £30 from the 15th of this month but won't be reduced anymore til my contract runs out in 6 months and I go through retentions to get a better deal, but as I said, the majority of my friends live overseas, so I have to pay for any texts I send.

The only supermarket near me is Tesco, the nearest one is Morrisons which is 30 minute £3 return bus fare. I live in a Village about 8 miles from the centre of town, and I don't drive so can't go anywhere else. And like I said, I have allergies and intolerances so what I eat has a massive effect on my health if I eat the wrong thing, and supermarkets hike the prices up of these products because I have no choice but to buy them.

I always cook from scratch, I cannot eat ready meals as they irritate my IBS, so my diet is basically fresh fruit and veg, but it doesn't last that long and always needs replacing.

ltm07

Ok I understand what you are saying. I guess it's easy for me to say go to the cheaper supermarkets,with me living in the city with a car! What about money owed to parent? Could this be lowered a little until you start to fid your feet again. OH & I owe my Mum over £3,000 & were paying her back £80 a month. Had no choice but to lower this to £20 a month & will start paying a little more when one of our loans finishes in July & can pay it all off when we've cleared our other debts in about 4 years. She understands our situation as she's been there herself. There can be other ways for you & your Mum to help each other out,i.e. by cooking each other a meal once a week. Good luck!

Gutted

ltm07 wrote: »

Ok I understand what you are saying. I guess it's easy for me to say go to the cheaper supermarkets,with me living in the city with a car! What about money owed to parent? Could this be lowered a little until you start to fid your feet again. OH & I owe my Mum over £3,000 & were paying her back £80 a month. Had no choice but to lower this to £20 a month & will start paying a little more when one of our loans finishes in July & can pay it all off when we've cleared our other debts in about 4 years. She understands our situation as she's been there herself. There can be other ways for you & your Mum to help each other out,i.e. by cooking each other a meal once a week. Good luck!

I wish I did live closer to a cheaper supermarket. It angers me that they charge more for dairy/wheat/gluten etc free stuff.

I have spoken to mum and I'm going to reduce what I owe her, but because she's a foster carer, her income isn't brilliant so I feel like I need to help her because she's my mum and I hate myself if I don't give her money. It's a no win situation. If I could, I'd give her all my money because I know how hard it is since dad passed away.

I've spoken to her about the DMP and she understands it will take me a bit to find me feet and get sorted, I just don't want to let her down.

It's just so depressing, especially when I can't afford to socialise and just sit at home thinking about debts and what I owe etc etc, I know I've only myself to blame, but its still crap !

ltm07

I know what you mean, ideally we would like to pay my Mum off first,but she insists that we only pay her what we can afford. Can you do any extra hours at work? Check out the £10 a day challenge. Even if you could manage £5 extra a day this would give you £150 in extra cash to throw at your debts & to live a little. Or could you budget for clothes one month & for entertainment the next? this would give you £20 for a night out every couple of months. All the best!