HELP im new

steph1705

hi everyone,erm basically im new on here. i am just after some advice i have just signed up with all clear finance on a debt managment program but not sure if i have done the right thing now. i owe about £4900.

moneypooh

does it cost you anything?

~Beanie~

If they are charging you a fee, then no you haven't done the right thing. There are people who will set up a debt management plan for you free of charge.

steph1705

yeah they take about 17% of what i pay to them,i tried cccs who are free but they cany help me as they worked out i dont have any money left over to pay crediters

steph1705

what companys will do it for free??

~Beanie~

£4900 isn't a massive amount (although it may seem huge to you), can you budget better and cut down anywhere and pay it off yourself? That 17% you are paying to All Clear could be better used reducing your debts.

Can you post a statement of affairs (a list of your incomings and outgoings) and maybe someone on here can help you.

poorandindenial

Hi there Steph

All Clear Finance look to me like a company that charges for running a DMP for you. I'm afraid that if they do then you might want to have a rethink as there are several organsiations that will do this for you for free. The thing about the companies that charge is that they take some of the money that you pay them for themselves and this means that your debts will go down more slowly. Also if you go with someone like CCCS they are free because they are financed by the credit agencies themselves (sounds sinister but isn't) and this means that the credit agencies look quite favourably on them.

Check out this list of free providers: Link

Don't worry, it isn't too late if you do decide to change DMP provider. If you don't then that is fine, at least you know the options.


Why don't you pop up your SOA and see if we can help you find ways to make your money go a bit further.

steph1705

i get £550 a month
20-electric
35-gas
19-tv lic
rent-£130
£40 internet and tv
£30 mobile phone
£50 fuel

steph1705

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 550
Other income............................ 0
Total monthly income.................... 550

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 130
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 20
Gas..................................... 35
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 19
Satellite/Cable TV...................... 15
Internet Services....................... 18
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
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................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 562

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
credit card....................2500......5.........0
credit card....................1200......15........0
littlewoods....................1200......140.......0
Total unsecured debts..........4900......160.......-

Monthly Budget Summary
Total monthly income.................... 550
Expenses (including secure debts)....... 562
Available for debt repayments........... -12
Monthly UNsecured debt repayments....... 160
Surplus(deficit if negative)............ -172

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -4,900
Personal net worth...................... -4,900

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

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

~Beanie~

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 550
Other income............................ 0
Total monthly income.................... 550

Monthly Expense Details
Rent.................................... 130
Management charge (leasehold flat)...... 0
Council tax............................. 0 - Don't you pay this?
Electricity............................. 20
Gas..................................... 35
Water rates............................. 30
Mobile phone............................ 30 - Can you cut this at all?
TV Licence.............................. 19
Satellite/Cable TV...................... 15 - Can you get this any cheaper?
Internet Services....................... 18 - ditto, maybe get a deal with internet/phone/TV all in
Groceries etc. ......................... 150 - If you live on your own then this is high!
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 0 - How come you don't pay this if you run a car?
Car Insurance........................... 0 - as above
Car maintenance (including MOT)......... 0 - as above
Other child related expenses............ 30 - What is this?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20 - Can you get this cheaper?
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 562

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
credit card....................2500......5.........0
credit card....................1200......15........0
littlewoods....................1200......140...... .0 - Is this a loan or credit card?
Total unsecured debts..........4900......160.......-

Monthly Budget Summary
Total monthly income.................... 550
Expenses (including secure debts)....... 562
Available for debt repayments........... -12
Monthly UNsecured debt repayments....... 160
Surplus(deficit if negative)............ -172

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -4,900
Personal net worth...................... -4,900

You could see if you can get your pet insurance cheaper and also maybe you can get internet/TV/television all together, it will be slightly cheaper than what you are paying now. If not, your internet is high you should be able to get it cheaper. Is your mobile on contract? If so, can you go to a lower tariff or move to PAYG?

elle_gee

Hi Steph,

I'm no expert at this, but just a few more things the real experts will need to know so that they get the full picture and can give their best ideas..

1. What are your debts? Who? How much? What are your credit limits? What's the APR?
2. Your TV licence - are you in arrears with that? Usually only £11 a month.
3. You mention "fuel" - is this petrol for your car? In which case you need to list car insurance, tax, maintenance costs too.

Best of luck