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  • FIRST POST
    • Hurtyhead10
    • By Hurtyhead10 11th Feb 18, 4:05 PM
    • 2Posts
    • 1Thanks
    Hurtyhead10
    How to deal with my debts? Help needed
    • #1
    • 11th Feb 18, 4:05 PM
    How to deal with my debts? Help needed 11th Feb 18 at 4:05 PM
    Hi all,

    Iím new to this so please be nice and any questions of more info you need just ask.

    Basically I am in a dmp at the moment with the following debt outlined below with the relevant companies as well as owing family money.

    Sunny £950
    118 Money £8000 (loan of £3500 but they wouldnít stop any interest or charges so has. And is spiralling)
    Piggy bank £1400
    Drafty (credit resource solutions) £2500
    Apfin £400

    I really struggle with my debts and a lot of them were down to a manic spree with my bipolar. I also suffer with both epilepsy and severe depression and Iím often suicidal as to what to do with these debts.

    I really donít know what to do and have looked in to settlement figures etc but it all becomes to much. Any advice on any additional steps to take or reduce the debt would be much appreciated

    Thanks
Page 1
    • Pixie5740
    • By Pixie5740 11th Feb 18, 4:14 PM
    • 11,930 Posts
    • 16,799 Thanks
    Pixie5740
    • #2
    • 11th Feb 18, 4:14 PM
    • #2
    • 11th Feb 18, 4:14 PM
    Hi all,

    Iím new to this so please be nice and any questions of more info you need just ask.

    Basically I am in a dmp at the moment with the following debt outlined below with the relevant companies as well as owing family money.

    Sunny £950
    118 Money £8000 (loan of £3500 but they wouldnít stop any interest or charges so has. And is spiralling)
    Piggy bank £1400
    Drafty (credit resource solutions) £2500
    Apfin £400

    I really struggle with my debts and a lot of them were down to a manic spree with my bipolar. I also suffer with both epilepsy and severe depression and Iím often suicidal as to what to do with these debts.

    I really donít know what to do and have looked in to settlement figures etc but it all becomes to much. Any advice on any additional steps to take or reduce the debt would be much appreciated

    Thanks
    Originally posted by Hurtyhead10
    A good starting point is completing a statement of affairs and posting it on the forum for suggestions on how to manage your budget.

    Who is managing your DMP? You? A debt charity?
    • sourcrates
    • By sourcrates 11th Feb 18, 5:18 PM
    • 13,776 Posts
    • 13,092 Thanks
    sourcrates
    • #3
    • 11th Feb 18, 5:18 PM
    • #3
    • 11th Feb 18, 5:18 PM
    We need to see an SOA to give appropriate advice.

    Other statutory available options are :

    Bankruptcy

    IVA (individual voluntary arrangement)

    DRO (debt relief order)

    Depends on your circumstances.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • pennystretcher
    • By pennystretcher 12th Feb 18, 7:45 PM
    • 384 Posts
    • 1,445 Thanks
    pennystretcher
    • #4
    • 12th Feb 18, 7:45 PM
    • #4
    • 12th Feb 18, 7:45 PM
    Take a deep breath and complete the SOA - http://www.stoozing.com/calculator/soa.php and post here so that we can see what you can do with your current financials or if bankruptcy would be a better option.

    Please do not think your situation is unusual - there are plenty of stories here in MSE that are likely to be much worse than yours. You may have realised that there is a lot of work to be done, but bear with us. We'll do everything we can to get you out of this.

    To start with, give yourself a hug - you have asked for help and we'll do our best to give it to you. This is your lightbulb moment (LBM) and you have taken the first huge step and asked for help.
    Mortgage free
    • Hurtyhead10
    • By Hurtyhead10 12th Feb 18, 11:52 PM
    • 2 Posts
    • 1 Thanks
    Hurtyhead10
    • #5
    • 12th Feb 18, 11:52 PM
    • #5
    • 12th Feb 18, 11:52 PM
    Hi all,

    Thanks for the replies it means a lot, please see the fine although it is a bit vague I currently pay £50 a month to stepchange to give my creditors.

    nthly Income Details[/b]
    Monthly income after tax................ 1600
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1600


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 700
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 40
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 150
    Clothing................................ 50
    Petrol/diesel........................... 120
    Road tax................................ 10
    Car Insurance........................... 80
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc)....
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 10
    Entertainment........................... 150
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1310



    Assets

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


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    118 money......................8500......0.........0
    Sunny..........................1000......0........ .0
    Piggybank......................1250......0........ .0
    Drafty.........................2600......0........ .0
    Apfin..........................400.......0........ .0
    Total unsecured debts..........13750.....0.........-



    Monthly Budget Summary

    Total monthly income.................... 1,600
    Expenses (including HP & secured debts). 1,310
    Available for debt repayments........... 290
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 290


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -13,750
    Net Assets.............................. -13,750
    • EssexHebridean
    • By EssexHebridean 13th Feb 18, 12:01 PM
    • 8,623 Posts
    • 45,398 Thanks
    EssexHebridean
    • #6
    • 13th Feb 18, 12:01 PM
    • #6
    • 13th Feb 18, 12:01 PM
    I'll comment in red as usual but to clarify the debt below is NOT additional to the DMP -
    correct?

    Hi all,

    Thanks for the replies it means a lot, please see the fine although it is a bit vague I currently pay £50 a month to stepchange to give my creditors.

    nthly Income Details[/b]
    Monthly income after tax................ 1600
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1600


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 700 This is quite high - any chance of a move to somewhere or taking in a lodger with the agreement of your landlord?
    Management charge (leasehold property).. 0
    Council tax............................. 0 Ahh OK bills all inc in rent? that makes the rent slightly more reasonable!
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 40 Is this in contract? If not or approaching the end then look to switch to SIM only
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 150 Just for you? You can trim this a bit
    Clothing................................ 50 This is high - stop and think whether you need what you're thinking of buying or whether you just want it, and if the latter, whether you want it enough to justify spending on it.
    Petrol/diesel........................... 120
    Road tax................................ 10 Paid monthly? If so switch to paying annually as they charge a premium for monthly payments.
    Car Insurance........................... 80 Ouchy this is steep - use comparison sites to check you're not over paying.
    Car maintenance (including MOT)......... 0 You need something here - start saving a sum monthly to cover the servicing, depreciative and MOT related costs and also to pay that road tax as an annual when it's due for renewal.
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc)....
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0 This is highly unlikely to be included in your rent so double check and make sure you get something in place if not.
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0 Nothing? Never? not even for your nearest and dearest?
    Haircuts................................ 10
    Entertainment........................... 150
    Holiday................................. 0
    Emergency fund.......................... 0 Look to save £500 in here.
    Total monthly expenses.................. 1310



    Assets

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


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    118 money......................8500......0.........0
    Sunny..........................1000......0........ .0
    Piggybank......................1250......0........ .0
    Drafty.........................2600......0........ .0
    Apfin..........................400.......0........ .0
    Total unsecured debts..........13750.....0.........-



    Monthly Budget Summary

    Total monthly income.................... 1,600
    Expenses (including HP & secured debts). 1,310
    Available for debt repayments........... 290
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 290 well that's good isn;t it! Do you actually have that left each month?


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -13,750
    Net Assets.............................. -13,750
    Originally posted by Hurtyhead10
    Not so bad - that surplus though - do you actually have it or does it disappear? if the latter make finding it your focus as that's nearly £3k a year that you need to account for.

    What's your aim here - to save up to offer full and final settlements on the debt in time? It certainly looks like that would be achievable for you. Otherwise you could go back to Stepchange with a view to increasing the payment on the DMP to get things cleared a bit quicker while still perhaps putting some money aside for F&F's?
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£853.32 (12/02/18)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
  • National Debtline
    • #7
    • 13th Feb 18, 12:25 PM
    • #7
    • 13th Feb 18, 12:25 PM
    Hello Hurtyhead and welcome to the forum.


    How much debt do you owe your family, and what are the current repayment terms (if any)? I can fully understand any desire to ensure they are getting repaid, but it's hard to offer definitive advice on your options without having this extra info for context.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • smdabs
    • By smdabs 13th Feb 18, 5:10 PM
    • 63 Posts
    • 50 Thanks
    smdabs
    • #8
    • 13th Feb 18, 5:10 PM
    • #8
    • 13th Feb 18, 5:10 PM
    I would imagine that with StepChange already being involved they will have developed repayment plans with the lenders and hopefully the (abysmal) interest has been frozen.


    Have you considered lodging formal complaints, either directly with the lenders or via the Financial Ombudsman?
    As a financial service, regardless of whether they are a large financial institute or a pay day loan company, they have a duty to assess the circumstances of their customers prior to agreeing to any borrowing in order for them to be (as far as they can be) 'responsible' lenders. This includes careful consideration to lending money to people presenting symptoms of mental health issues.
    If I were you, I would be talking to the FOS about your situation as soon as possible, or if necessary, asking StepChange to assist you in doing so.




    Having previously worked for numerous banks in their complaint departments dealing (and dealing directly with the FOS), I can tell you that we are specifically trained in identifying signs of mental health issues along with numerous other categories of 'vulnerability' to ensure we, by the very least, do not make a customer's circumstances any worse, even if that means declining an application for a loan.
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