DMP & Mutual Support Thread - Part 8

Tigsmom · 15 August 2012 at 6:13PM

Growurown wrote: »

I was thinking about the envelope system too. On paper I should be putting money by for things like the car tax but it just gets spent so when the car tax is due we are scraping around to get the money together. I thought maybe working with the 'cash only system' might mean we don't spend what we shouldn't.

I've tried a dummy run this month but have failed miserably. We haven't gone crazy or anything but I've started slipping into old ways, forgetting to write down things we've bought, not checking the bank as much, going over budget on kids clothing (it is school uniform time though), buying more treats with the shopping.

I think if I do the envelope thing I can see how much we have left to spend and it will make me spend less. I can make £10 last longer in my purse than in the bank!

I have a bad ebay habbit. I have 'saved' a fortune buying things off ebay instead of the high street. I think once the kids go back to school I will have to retrain myself to sell some of it back. It will be nice to reclaim the space in my house too.:)

Growurown · 15 August 2012 at 7:41PM

Tigsmom wrote: »

I've tried a dummy run this month but have failed miserably. We haven't gone crazy or anything but I've started slipping into old ways, forgetting to write down things we've bought, not checking the bank as much, going over budget on kids clothing (it is school uniform time though), buying more treats with the shopping.

I think if I do the envelope thing I can see how much we have left to spend and it will make me spend less. I can make £10 last longer in my purse than in the bank!

I have a bad ebay habbit. I have 'saved' a fortune buying things off ebay instead of the high street. I think once the kids go back to school I will have to retrain myself to sell some of it back. It will be nice to reclaim the space in my house too.:)

Oh dear that doesn't sound too promising. I was planning to start from next payday. We spend way too much on food.

I should really get into ebay too:D

Growurown · 15 August 2012 at 7:43PM

ben80 wrote: »

Oh my god! I totally missed the hat comment. Yes, get hats! I'm going to have to think of colour schemes etc. And none of you are allowed to steal my thunder or else!! :rotfl:

I hear pink and grey is making a come back. I remember that from the last time round:eek:

mattf84 · 15 August 2012 at 9:05PM

Hi all,

Not really posted on here before but I've come to the point where I need to make some big changes with the debt and the effect it's having on my home and family....

I'm 27, married with 2 little ones and just bought our first family home..
I have £26,100 of unsecured C/C & Loans which until recently I have been able to keep up with by selling things and using any extra money I could get...
Unfortunately, I took out £15,000 ish of this for a business we had, but unfortunately due to the economic downturn, not bringing in any wages and local competition I was forced to close, leaving me with personal loans that were taken out to help the business we had dedicated everything to try and continue(& expand). These are half my 'unsecured' debts every month in terms of payments going out.

I have an income of around £1350 guaranteed before any overtime which varies. I am hoping in the near future to move from a Deputy Manager role to a General Manager role, which would mean taking home closer to £1800-£2000 per month, but obviously this is not guaranteed until I find and secure a position.

The total 'minimum payments' including loans is £721 per month - £350 of this is from the loans taken our for the business. My general outgoings for bills and utilities etc is £1269.

I have been talking to various people CCCS, DebtLine etc and keep getting different answers.

The options being IVA, Bankruptcy & Debt Management Plan.

We recently bought our first house (joint with wife), which clearly has no equity after only 3 months living there - but want to protect this at all costs as we fought hard to get a mortgage and buy a house to stop wasting money on rent for nearly 8 years together..

To complicate matters further I have a 3 year old and a newborn baby, so something has to be done as the stress level has been so bad over the last 2-3 years and I cannot let it continue this way...

Really happy to listen to any advice especially anyone who had a similar situation - as even the independent people recommended on here keep giving me different options and I'm just not sure which one to go for...

SOA BELOW: only included me in this and the bills I pay (wife does C.Tax etc)

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 200
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1550

Monthly Expense Details
Mortgage................................ 622
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 70
Gas..................................... 0
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 15
Mobile phone............................ 15
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 15
Groceries etc. ......................... 180
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 10
Car Insurance........................... 36
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 200
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 24
Contents insurance...................... 0
Life assurance ......................... 7
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1449

Assets
Cash.................................... 0
House value (Gross)..................... 118750
Shares and bonds........................ 0
Car(s).................................. 750
Other assets............................ 0
Total Assets............................ 119500

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 118750...(622)......4.6
Total secured & HP debts...... 118750....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
C/C............................5900......145.......0
C/C............................2500......140.......4 0
C/C............................1200......60........2 9
LOAN...........................8000......247.9.... .20
LOAN...........................5500......105.7.... .12
C/C............................800.......25........1 9
Total unsecured debts..........23900.....723.6.....-

Monthly Budget Summary
Total monthly income.................... 1,550
Expenses (including HP & secured debts). 1,449
Available for debt repayments........... 101
Monthly UNsecured debt repayments....... 723.6
Amount short for making debt repayments. -622.6

Personal Balance Sheet Summary
Total assets (things you own)........... 119,500
Total HP & Secured debt................. -118,750
Total Unsecured debt.................... -23,900
Net Assets.............................. -23,150

THANKS IN ADVANCE!!

Tigsmom · 15 August 2012 at 10:19PM

mattf84 wrote: »

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 200 there can't be much of this left after council tax
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1550

Monthly Expense Details
Mortgage................................ 622
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 70
Gas..................................... 0
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 15
Mobile phone............................ 15
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 15
Groceries etc. ......................... 180 you are going to need more than this when your little ones start eating grown up food!
Clothing................................ 0 you must buy clothes, especially with growing kids
Petrol/diesel........................... 150
Road tax................................ 10
Car Insurance........................... 36
Car maintenance (including MOT)......... 0 how do you have no MOT costs but 2 cars?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 200
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 is this right? no dentist/ calpol?
Pet insurance/vet bills................. 0
Buildings insurance..................... 24
Contents insurance...................... 0
Life assurance ......................... 7
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 kids xmas presents, family birthdays?
Haircuts................................ 0 who cuts your hair?
Entertainment........................... 0 do you have sky? go out for meals, cinema etc
Holiday................................. 0
Emergency fund.......................... 0 you need one of these in case your car/ washer/ tv breaks down
Total monthly expenses.................. 1449

Assets
Cash.................................... 0
House value (Gross)..................... 118750
Shares and bonds........................ 0
Car(s).................................. 750
Other assets............................ 0
Total Assets............................ 119500

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 118750...(622)......4.6
Total secured & HP debts...... 118750....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
C/C............................5900......145.......0
C/C............................2500......140.......4 0
C/C............................1200......60........2 9
LOAN...........................8000......247.9.... .20
LOAN...........................5500......105.7.... .12
C/C............................800.......25........1 9
Total unsecured debts..........23900.....723.6.....-

Monthly Budget Summary
Total monthly income.................... 1,550
Expenses (including HP & secured debts). 1,449
Available for debt repayments........... 101
Monthly UNsecured debt repayments....... 723.6
Amount short for making debt repayments. -622.6

Personal Balance Sheet Summary
Total assets (things you own)........... 119,500
Total HP & Secured debt................. -118,750
Total Unsecured debt.................... -23,900
Net Assets.............................. -23,150

THANKS IN ADVANCE!!

Hi, your budget looks like mine did before I had a rethink. If you are going to go on a DMP you need to budget for everything, even things you don't use much because the money that you calculate you have left after paying for your living expenses all goes to your creditors and it's hard to renegotiate it back when an emergency crops up. Have a look at the things I've questioned in red, be totally realistic and honest with yourself and make allowances for anything you will need to pay out for. You, like me, will probably put some things down as £0 because you don't pay for them every month but you need to put money aside for them every month so that you have it when you need it. Don't worry, there are lots of nice people here who will help but this is the first thing you need to look at.

Good luck, and welcome.

mattf84 · 15 August 2012 at 11:04PM

Ok so I've had a look and also added my wife's stuff on there as it didn't make much sense before with her 'wages' being actually just what she was paying towards the mortgage as she paid other bills...

REVISED SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 460
Benefits................................ 530
Other income............................ 0
Total monthly income.................... 2340

Monthly Expense Details
Mortgage................................ 622
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 70
Gas..................................... 0
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 15
Mobile phone............................ 15
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 15
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 250
Road tax................................ 35
Car Insurance........................... 71
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 180
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 12
Contents insurance...................... 12
Life assurance ......................... 7
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 15
Total monthly expenses.................. 1911

Assets
Cash.................................... 0
House value (Gross)..................... 118750
Shares and bonds........................ 0
Car(s).................................. 2750
Other assets............................ 0
Total Assets............................ 121500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 118750...(622)......4.6
Total secured & HP debts...... 118750....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
C/C............................5900......145.......0
C/C............................2500......140.......40
C/C............................1200......60........29
LOAN...........................7850......149.5.....7.9
C/C............................2720......85........29.9
C/C............................2890......56........18.9
C/C............................329.......3.5.......16.5
LOAN...........................8000......247.9.....20
LOAN...........................5500......105.7.....12
C/C............................800.......25........19
Total unsecured debts..........37689.....1017.6....-

Monthly Budget Summary
Total monthly income.................... 2,340
Expenses (including HP & secured debts). 1,911
Available for debt repayments........... 429
Monthly UNsecured debt repayments....... 1,017.6
Amount short for making debt repayments. -588.6

Personal Balance Sheet Summary
Total assets (things you own)........... 121,500
Total HP & Secured debt................. -118,750
Total Unsecured debt.................... -37,689
Net Assets.............................. -34,939

willeynotwiley · 16 August 2012 at 8:28AM

bertman wrote: »

We had a letter from Natwest yesterday aknowledging our CCCS DMP, funny enough this is the only creditor who has openly named CCCS, they have agreed to the amount suggested and will freeze fee's and interest. But they have put a default notice in the letter which I am not concerned about, but they have said we need to pay £96 within 17 days...
We can't afford this so will speak to CCCS on Monday, probably another computer letter.

They put the same on mine - only asking for £295 within 17 days.:eek: The way I read it (and have just re-read to make sure I wasn't making things up) was you only need to pay that amount if you DO NOT wish to go ahead with the repayment plan. They also say that if you pay you can still 'retain your account in the future' :rotfl:
What part of we're skint did they miss in the letter I sent them???

Hopelessly_Hopeful · 16 August 2012 at 10:34AM

Morning All

I paid £247 in interest this month which is poop but determined not to let the Preditors get me down, revenge a dish best served cold!

Hoping to hear from FOS re M&S any time soon. BC have acknoweldged my compliant and are still looking into it.

Onwards and Upwards all!

HHx

Tigsmom · 16 August 2012 at 9:08PM

Hi mattf84,

Your new budget looks much more realistic (although I think you still need to add something to entertainment - even people with debts need the odd night out/ takeaway to keep them sane). Have you tried doing the CCCS Debt remedy? You can do it without comitting to a DMP and it gives suggestions as to how much you should budget for things.

Hopefully someone else will read your post and give you more suggestions. I'm still quite a newbie just starting my DMP but have already gone through the process that you're going through right now.

ben80 · 16 August 2012 at 9:24PM

Matt, I agree with Tigsmom, try the debt remedy tool on CCCS and see what it says, I suspect they'll recommend a Debt Management Plan for you. Well done for being do forward, it's the first step to getting sorted!

DMP & Mutual Support Thread - Part 8

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