Debt

itsnowtime

Hi Mary,

Welcome to the board. Just having a quick look at your SOA and I'm sure many people will be along soon to help out just wondered if income protection was a necessity?

I just wanted to wish you the best of luck. I too have a large amount of debt and I know at times it can be tough going.

How are you managing at the moment with minimum payments etc... and is there any opportunity for you to get the £600 per month back - additional work / ebay etc...

Good luck - we're here to support. :j

shinyhead

Can't help but notice there's no council tax in your expenditure.

Car maintenance also a bit low-£25 -£30 maybe??

Deep_In_Debt

Hi Mary, welcome to the board and a newbie too. I'm no expert but your electricity looks quite high to me - can you look into changing suppliers? Try Quidco and maybe get cash back at the same time. Can you reduce your phone?

MARY_B_3

Hi Sorry I Forgot About Council Tax I Will Have To Pay £118.00 I Could Cut Phone To About £20.00 But No One Will Give Me A Cheaper Price For Electricity. I Am Glad I Posted My Problems To You I Really Need Support As I Feel There Is No End To My Misery. We Are Looking At Ways To Increase Our Income But What Ever Can Be Earn't The Government Will Take Away My Tax Credits So I Am On A No Win Situation. I Need Someone Professional To Talk To But There Is No One Around To Give Me Advice

GeorgeUK

How much of the debt is secured and unsecured? (Does the 70k include the mortgage?)

A breakdown of the debts with the APR's may help.

If the loss of income is a short-term thing, could you ask for a mortgage payment holiday?

MARY_B_3

Hi We Have A Mortgage Of £153000.00 But We Can Pay That. It's The Unsecured Loan Credit Cards And Overdrafts We Are Finding Trouble To Pay. I Dont Know The Apr But I Can List The Debts And How Much We Have To Pay Each Month. The £70000 Is Between My Husband And I.

Husbands Debts

Unsecured Loan £11500.00 £393.00 A Month ( With Ppi )
Credit Card £1765.00 £39.00 A Month
Credit Card £3300.00 £65.00 A Month
Credit Card £5400.00 £112.00 A Month
Credit Card £6100.00 £186.00 A Month

Me

Credit Card £14600.00 £293.00 A Month
Credit Card £ 7000.00 £142.00 A Month
Credit Card £6100.00 £186.00 A Month
Credit Card £3200.00 £167.00 A Month
Overdraft £1600.00 £80.00 A Month


Joint Overdraft £6000.00 £130.00 A Month

As You Can See We Have No Money To Live When We Had The Extra £600.00 We Could Just About Manage , But It Went Suddenly After 25 Years And Totally Unexpected

Deep_In_Debt

Please don't dispair Mary, you are not alone. I felt like you a few weeks ago but now that I am on a DMP with CCCS and found this site, things seem much better. We are all here to help.

ltm07

Hi,the two things that stand out are income protection & emergencies. That's over £80 a month that could be going towards your debts. We pay any extra income for emergencies into one of our overdrafts & although we have to withdraw from it now & again,feel that it's killing two birds with one stone IYKWIM. Good luck & others will be able to advise better than me!

GeorgeUK

Still can't see how you were making the payments before even with another £600.

____debt________monthly________APR %
£14,600.00_______£293.00________26.92641236
£7,000.00________£142.00________27.2511366
£6,100.00________£186.00________43.39516236
£3,200.00________£167.00________84.12707615

£1,765.00________£39.00_________29.98758697
£3,300.00________£65.00_________26.3727814
£5,400.00________£112.00________27.93382623
£6,100.00________£186.00________43.39516236

£6,000.00________£130.00________29.33339848

(Not true APR's)
£11,500.00_______£393.00_______49.66592783
£1,600.00________£80.00________

£66,565.00_____£1,793.00

According to this, your monthly debt payments are almost the same as your monthly income. The Loan APR is so high because you are paying PPI on top of the loan - so not really the true APR, just the equivalent. And some of those CC APR's are horrible.

Still not sure why you won't consider bankrupcy - is it the perceived stigma attached to it?
There's some IVA details here http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf
But PLEASE speak to CCCS or Payplan before doing something like this. Many people have tried to do an IVA only to go for bankrupcy a few years into it.

As for a DMP - If your interest is not frozen, i can't see any way for you to repay this amount. You could try using the snowball calculator, but i didn't think it even worth trying - sorry.

Hopefully i've missed something and it's not as bad as it looks here. Can you tell us how you were managing with just an extra £600?

MARY_B_3

Hi Well Our Mortgage Wasn't So High And We Didn't Have A Loan Before We Lost The £600 . We Just Paid Peter To Pay Paul And Somehow Coped. I Don;t Want To Go Go Bankrupt My Family Will Be So Disappointed And I Have Got To Life Somewhere. The Thought Of Anyone Knowing I Was Bankrupt Would Destroy Me. I Would Like To Do A Dmp And Keep Trying To Increase Our Income To Get Out Of This Mess I Know This Seems Impossible But Is There Anyone Who Has Been Though My Experience And Got Though It