Advice please!
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Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 690
Partners monthly income after tax....... 0
Benefits................................ 1004
Other income............................ 82
Total monthly income.................... 1776
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 17
Gas..................................... 17
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 28
Groceries etc. ......................... 160
Clothing................................ 30
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 48
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 0
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........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1619
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax Credit Card ...........538.......16........0
Capital One ...................1088......11........0
Marbles .......................1750......90........0
Zopa ..........................5821......157.......0
Vanquis .......................3395......160.......0
Paypal Credit .................2500......70........0
Capital One ...................1750......60........0
Total unsecured debts..........16842.....564.......-
Monthly Budget Summary
Total monthly income.................... 1,776
Expenses (including HP & secured debts). 1,619
Available for debt repayments........... 157
Monthly UNsecured debt repayments....... 564
Amount short for making debt repayments. -407
Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,842
Net Assets.............................. -15,842
Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.0 -
On your figures you could do a debt management plan at £157 per month - completes in 9 years.
Except I don't think you could.
Your food & housekeeping spend seems low. For the two of you it is less than £37 per week. Have you kept a record of what you spend on cleaning materials, toiletries, snacks, drinks, small shops for milk and bread and stuff? If I were doing a DRO I'd add £100 per month there. If you can do all that on £37 per week, great, but no creditor can expect you to do that.
Car maintenance and MOT zero? Even if you do low mileage, you should budget £200 per year. I think you're doing over 1000 miles a month and I'd double that.
You should have contents insurance (£10 per month if you shop around)
You really never spend on Presents (birthday, christmas etc), Haircuts, Entertainment and Holiday? I'd put anything remaining against that and you would have zero surplus.
You're in rented accommodation, the car which you think is worth £1000 is probably less on Parkers guide poor condition, you have debts under 20k and afaik you haven't had a DRO before.
As I predicted I'm now going to suggest a DRO. None of your debts will cause problems. You can even add in arrears of gas, electricity and council tax.
Pay £90 at the Post Office, in instalments if you want, debts frozen for a year and then written off. New start and a less stressed mummy
Oh, you need to be banking with someone other than Halifax.0 -
I agree with Fatbelly that a DRO seems to be the sensible solution. From your SOA things are really tight.
Although a DRO would be the immediate answer you might want to consider how to move forward after this to avoid any future debt.
In comparison with your income your rent payment is very high. Is it possible to move to some where cheaper?
Also, you do not have any child support payments. Amy reason for this?
Depending on the age of your child is it possible to increase your working hours?0 -
Thank you for taking the time to reply.
We really don't eat very much, and I go to Lidl or Aldi. To be fair though popping to the little tesco after school probably adds up.
I do a ridiculous amount of miles unfortunately and am hoping to change my job to bring that down. Car repairs etc have always gone on a credit card...
Contents insurance.... I don't feel like I have anything worth insuring.
Haven't had a holiday for several years... presents etc have been credit cards. Daughter has her hair cut once every 6 months or so and it's only £10.
So where do I start with a DRO? I'm so confused and I know things need to change.
Thank you so much again for your time.0 -
keep a spending diary or all receipts so you have a better idea at the end of the month. It's surprising how it adds up.Stressedmummy wrote: »Thank you for taking the time to reply.
We really don't eat very much, and I go to Lidl or Aldi. To be fair though popping to the little tesco after school probably adds up.
Good luck with the new job but that does explain where some of the CC debt has come from.I do a ridiculous amount of miles unfortunately and am hoping to change my job to bring that down. Car repairs etc have always gone on a credit card...
It's a false economy not to have it. Use sites like TCB or Quidco to bring the net cost down.Contents insurance.... I don't feel like I have anything worth insuring.
Again the presents explain where the CC debt has come from. Divide the annual cost by 12 and that is what you should be budgeting per month for it.Haven't had a holiday for several years... presents etc have been credit cards. Daughter has her hair cut once every 6 months or so and it's only £10.
Your daughters haircuts equal £20 a year plus your haircuts, you probably need to budget something in the region of £5 per month.
Here's some information on a DROSo where do I start with a DRO? I'm so confused and I know things need to change.
Thank you so much again for your time.
https://www.nationaldebtline.org/EW/information/10%20ways%20to%20clear%20your%20debt/Pages/Options-for-dealing-with-your-debt-debt%20relief%20order.aspx
There's a fact sheet on the page too.
All the best.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
pmlindyloo wrote: »I agree with Fatbelly that a DRO seems to be the sensible solution. From your SOA things are really tight.
Although a DRO would be the immediate answer you might want to consider how to move forward after this to avoid any future debt.
In comparison with your income your rent payment is very high. Is it possible to move to some where cheaper?
Also, you do not have any child support payments. Amy reason for this?
Depending on the age of your child is it possible to increase your working hours?
Thank you for your time
I am quite lucky with my rent in this area really.... it's about £300 under the market rental value. As I have been renting the same house for 10 years the landlord has not increased the rent over the years.
I am looking to change my job at the moment. Unfortunately I don't have anyone that can help with school drop off/collection and I couldn't pay for it.0 -
keep a spending diary or all receipts so you have a better idea at the end of the month. It's surprising how it adds up.
Good luck with the new job but that does explain where some of the CC debt has come from.
It's a false economy not to have it. Use sites like TCB or Quidco to bring the net cost down.
Again the presents explain where the CC debt has come from. Divide the annual cost by 12 and that is what you should be budgeting per month for it.
Your daughters haircuts equal £20 a year plus your haircuts, you probably need to budget something in the region of £5 per month.
Here's some information on a DRO
https://www.nationaldebtline.org/EW/information/10%20ways%20to%20clear%20your%20debt/Pages/Options-for-dealing-with-your-debt-debt%20relief%20order.aspx
There's a fact sheet on the page too.
All the best.
Thank you dobbibill0 -
Once again i also agree a DRO would work for you, although you need to add more to your budget to get to the less than £50 surplus required for a DRO.
You need to apply for a debt relief order though an intermediary such as stepchange, check out there website.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
So I've looked up the value of my car and it's saying £1,495.....
So looks like the DMP may have to be the way to go. So do I start with letters to them all? My vanquis payment was due to leave my account today but I cancelled the direct debit because last month it left me short... (minimum payment £167) Feeling very nervous now.
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Having looked at your SOA, I can't see that you have any option but to go for the DRO.
And I think you need to set about getting it done quickly before your situation becomes even worse."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0
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