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  • FIRST POST
    • braken2000
    • By braken2000 16th Apr 18, 9:24 AM
    • 617Posts
    • 118Thanks
    braken2000
    Heading Towards a Problem
    • #1
    • 16th Apr 18, 9:24 AM
    Heading Towards a Problem 16th Apr 18 at 9:24 AM
    Hi Everyone,

    Long time no post it would seem. However heading towards a problem and need some advice .

    Bit of background first:
    I live with my partner and have become a student (mature) studying a healthcare course. This lasts two years and will be straight back in to work in approximately 18 months. My partner works and will be seeing a pay rise (hopefully) in November as he will move up a grade. I work bank hours so as and when I can get them, and when I can based on placement hours. We have survived since last September through what I can only describe as luck (occasional gift from a family member, selling things on eBay etc).

    We have got to a point where we are living off credit cards which is ringing alarm bells in my head. I have historically had a DMP but got it all paid off and reserved the CC for emergencies, knowing we would use them, just not this soon in. We have approx 6k debt, and also a car loan in order to allow us to get to work/placement etc.

    My thoughts, and indeed questions are these:
    1. Obviously it is not sustainable to love off CC. We only have to make it for 18 months, and financial situation will positively change in 6 months also. Is it possible to get a really temporary DMP?
    2. We are looking to hopefully save and get a mortgage in the next 6 years. Will doing anything like a DMP affect this? Obviously concerns about defaults going on. I know they can go on the file for a long term DMP, just not sure if it would happen with a short term one?
    3. I am unable to get student finance which would have helped.
    4. I am waiting for overpaid taxes to come through (900 ish). HMRC have told me this could be up to October when I get any sight of this.

    Does anyone have any ideas? I worked so hard to clear my debt last time and I do not want to end up in a similar position. However dropping off the course is not an option as it is a funded place which will not exist after this year (kind of like one shot and that is it).

    I can provide a more clear Statement of what is owed etc if it helps. Not been on the forums in ages but know you guys are great at helping with the not so straight forward

    Thanks
Page 1
    • cms-help
    • By cms-help 16th Apr 18, 10:20 AM
    • 180 Posts
    • 164 Thanks
    cms-help
    • #2
    • 16th Apr 18, 10:20 AM
    • #2
    • 16th Apr 18, 10:20 AM
    If your creditors default you then that would be on your credit file for 6 years from the date of default regardless of whether you repay them in a year or 8 years. This may damage your mortgage chances.

    The taxes that you are owed, what period did you pay them in? As soon as your P60s are available and filed from this financial year then you should be able to claim your tax refund.

    Your best option would be to post an SOA.
    • braken2000
    • By braken2000 16th Apr 18, 10:35 AM
    • 617 Posts
    • 118 Thanks
    braken2000
    • #3
    • 16th Apr 18, 10:35 AM
    • #3
    • 16th Apr 18, 10:35 AM
    Thank you cms-help

    Not yet received P60s, hoping they will be soon.

    That is what I was worried about in terms of defaults. Will get an SOA on here ASAP to help clarify matters. Just never sure what to do considering it is more of a temporary lack of income Vs. a permanent one.
    • cms-help
    • By cms-help 16th Apr 18, 10:51 AM
    • 180 Posts
    • 164 Thanks
    cms-help
    • #4
    • 16th Apr 18, 10:51 AM
    • #4
    • 16th Apr 18, 10:51 AM
    Thank you cms-help

    Not yet received P60s, hoping they will be soon.

    That is what I was worried about in terms of defaults. Will get an SOA on here ASAP to help clarify matters. Just never sure what to do considering it is more of a temporary lack of income Vs. a permanent one.
    Originally posted by braken2000
    As soon as you've got your P60s then you can ring and ask them to process a tax refund. I think I got mine in May last year. However, this is only going to help you short term so you still need to look at solutions moving forward. Do you know why you're not entitled to any student finance?
    • braken2000
    • By braken2000 16th Apr 18, 11:23 AM
    • 617 Posts
    • 118 Thanks
    braken2000
    • #5
    • 16th Apr 18, 11:23 AM
    • #5
    • 16th Apr 18, 11:23 AM
    Not entitled due to a previous degree unfortunately. Tried with SFE but they are just not having it at all. The course is funded by HEE so no fees to worry about and I am fairly confident I will go straight into work next October when I finish and qualify so that is a positive . Just to work out what to do between then and now :S.

    Fingers crossed I can get this payment sorted for May sometime .
    • cms-help
    • By cms-help 16th Apr 18, 11:43 AM
    • 180 Posts
    • 164 Thanks
    cms-help
    • #6
    • 16th Apr 18, 11:43 AM
    • #6
    • 16th Apr 18, 11:43 AM
    Not entitled due to a previous degree unfortunately. Tried with SFE but they are just not having it at all. The course is funded by HEE so no fees to worry about and I am fairly confident I will go straight into work next October when I finish and qualify so that is a positive . Just to work out what to do between then and now :S.

    Fingers crossed I can get this payment sorted for May sometime .
    Originally posted by braken2000
    If you have time to post your SOA up then the folks on here usually have lots of good ideas about where savings could be made.
  • National Debtline
    • #7
    • 16th Apr 18, 12:15 PM
    • #7
    • 16th Apr 18, 12:15 PM
    Hi braken2000


    It's good that you're recognising now that there could be an issue, it's best to deal with these things early on. Usually a DMP would only be set up if your debt issues were going to last longer than 12 months. That's not to stop you negotiating a reduced payment plan and freeze on interest yourself though. But bear in mind there will be an impact on your credit file.


    Some creditors may choose to show on your credit file that there is an arrangement in place. But over the longer term others may register a default, and that would remain for 6 years. It's best to speak to a mortgage adviser about how that would impact on a mortgage application. The older a default, the less impact it tends to have.


    As cms-help mentions, posting your SOA will be a help in offering you more advice. I hope it all goes well.


    Susie
    @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
    • Silver Queen
    • By Silver Queen 16th Apr 18, 1:07 PM
    • 423 Posts
    • 2,023 Thanks
    Silver Queen
    • #8
    • 16th Apr 18, 1:07 PM
    • #8
    • 16th Apr 18, 1:07 PM
    This may not be the best option for you but I wonder if you've considered a professional studies loan? I'm not 100% sure you'd fit the criteria but worth mentioning. You can borrow between 300 and something like 10k, and the government pays the interest on the loan whilst your course is ongoing. Once you graduate you have to pay the interest yourself, though.
    Debt Totals August 2018::
    350 Natwest Credit Card / Now 0 (paid off and closed 04/2017) 15,500 postgrad loan from parents/ Now 9,500 500 train ticket loan from parents / Now 0 (paid off 16/02/18) 2,000 Overdraft Now 0 (paid off 09/03/18)
    • braken2000
    • By braken2000 16th Apr 18, 3:47 PM
    • 617 Posts
    • 118 Thanks
    braken2000
    • #9
    • 16th Apr 18, 3:47 PM
    • #9
    • 16th Apr 18, 3:47 PM
    Right, so have done an SOA as much as I can. This might shed some light on the situation. I have to admit I am quite embarrased and did not realise it was this bad tbh. But hey ho, biting the bullet and all that!

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 150
    Partners monthly income after tax....... 1400
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1550


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 475
    Management charge (leasehold property).. 0
    Council tax............................. 82
    Electricity............................. 30
    Gas..................................... 41
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 18.99
    Mobile phone............................ 66.8
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 5
    Internet Services....................... 4
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 250
    Road tax................................ 31.52
    Car Insurance........................... 130
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 28
    Pet insurance/vet bills................. 32.38
    Buildings insurance..................... 0
    Contents insurance...................... 8.5
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 18
    Entertainment........................... 30
    Holiday................................. 0
    Emergency fund.......................... 10
    Total monthly expenses.................. 1533.31



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 4000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan 1 (For Car)...............6500......281.......15
    Credit Card 1..................429.......25........41.2
    Credit Card 2..................1660......60........30.34
    Loan from Family...............1000......30........0
    Overdraft 1....................250.......0.........0
    Catalogue 3....................425.......20........39.99
    Catalogue 2....................108.......25........0
    Catalogue 1....................165.......5.........33
    Credit Card 6..................275.......12.5......54.9
    Credit Card 5..................2054......80........39
    Credit Card 4..................543.......25........34
    Credit Card 3..................188.......10........30.34
    Total unsecured debts..........13597.....573.5.....-



    Monthly Budget Summary

    Total monthly income.................... 1,550
    Expenses (including HP & secured debts). 1,533.31
    Available for debt repayments........... 16.69
    Monthly UNsecured debt repayments....... 573.5
    Amount short for making debt repayments. -556.81


    Personal Balance Sheet Summary
    Total assets (things you own)........... 4,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -13,597
    Net Assets.............................. -9,597


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    • braken2000
    • By braken2000 16th Apr 18, 3:49 PM
    • 617 Posts
    • 118 Thanks
    braken2000
    I am not sure I would get a CDL SilverQueen as my credit rating is far from decent, consolidating all my debt would be the best option however, with me not earning at the moment it is very difficult to get a loan
    • cms-help
    • By cms-help 16th Apr 18, 6:08 PM
    • 180 Posts
    • 164 Thanks
    cms-help
    Obvious questions - you said you picked up bank shifts as and when so is your 150 the most you can earn in a month or the least? Are you drawing to a term end anytime soon (my husband finishes his degree early May) which will enable you to work full-time for a few months?

    Your budget is tight without any of the debts so something drastic needs to happen one way or another.

    Your mobile bill and car insurances are extortionate. Any reason why the car insurances are so high? Is your council tax spread over 10 or 12 months; if 10, switch it to 12? Are you entitled to any form of discount with you being a student (I have no idea how this works but might be worth enquiring)? I don't think you could shave enough of the bills etc to be able to meet all the repayments so what are the options for increasing income (for both of you), if any? Or it will be a case of defaulting and entering into a repayment plan and you are already aware of the consequences of this.

    You need to try and batter a couple of those debts as the interest rates are horrendous.
    • Sncjw
    • By Sncjw 16th Apr 18, 6:42 PM
    • 1,894 Posts
    • 1,119 Thanks
    Sncjw
    I!!!8217;m guessing it!!!8217;s a nursing course. When I did this course your uni work takes priority over outside work so I understand it!!!8217;s hard.

    Also with your placements your doing professional development file, coursework and also studying for exams I totally get it.

    Have you applied for council tax reduction based on being a nursing student? I!!!8217;m sure you can do this.

    Does your travel to placements cost more than going to uni. If so you can claim the difference back from the uni. Do you not get form of bursary.

    Have you applied for the low income scheme for nhs prescriptions?

    I know it!!!8217;s not a lot but it could help towards some of the debts
    • Sncjw
    • By Sncjw 16th Apr 18, 6:43 PM
    • 1,894 Posts
    • 1,119 Thanks
    Sncjw
    Can I just also say your mobile phone bill is high. Could you get a sim only deal.

    Also do you buy your course books if so I had a tip from lecturer use the books in the library first. See how often you use them to see if it!!!8217;s worth getting them.

    Remember to use your nhs discounts where you can.
    • Sncjw
    • By Sncjw 16th Apr 18, 6:47 PM
    • 1,894 Posts
    • 1,119 Thanks
    Sncjw
    I can!!!8217;t seem to quote but cms the health related courses don!!!8217;t finish in may. Mine didn!!!8217;t finish until August and even then we only had two weeks off.

    Healthcare courses are full on. Your do full time week at uni even if your not on they expect you to study full time. My course our timetable changed every week. We have coursework to complete, study for upcoming classes, studying for exams, then to complete professional development file which we need signing off. On this is also during the same time as placement if they are on placements. It!!!8217;s not like where uni you go in for a few days a week and then do what you like it!!!8217;s a full on course and you work the same shifts as the nurses on the ward. Like doing a late shift then having to go back in early no time to do uni work by the time you get in
    • cms-help
    • By cms-help 16th Apr 18, 7:10 PM
    • 180 Posts
    • 164 Thanks
    cms-help
    I can!!!8217;t seem to quote but cms the health related courses don!!!8217;t finish in may. Mine didn!!!8217;t finish until August and even then we only had two weeks off.

    Healthcare courses are full on. Your do full time week at uni even if your not on they expect you to study full time. My course our timetable changed every week. We have coursework to complete, study for upcoming classes, studying for exams, then to complete professional development file which we need signing off. On this is also during the same time as placement if they are on placements. It!!!8217;s not like where uni you go in for a few days a week and then do what you like it!!!8217;s a full on course and you work the same shifts as the nurses on the ward. Like doing a late shift then having to go back in early no time to do uni work by the time you get in
    Originally posted by Sncjw
    I asked because the poster said they picked up bank shifts as and when they could so wasn't sure what availability they had. Also don't know what sort of healthcare course it is - whether it is to become a qualified nurse or something else. Fully understand that uni work needs to come first but they also need to make ends meet for the next 18 months and are a long way from being able to do so if they wish to avoid a debt repayment arrangement (which seemed to be their aim). Hope that clarifies - I certainly wasn't trying to be dismissive of their workload, just trying to explore what opportunities they may have available to them to increase income.
    • braken2000
    • By braken2000 16th Apr 18, 7:19 PM
    • 617 Posts
    • 118 Thanks
    braken2000
    Got it one Sncjw! Well almost, it is a paramedic course. Like you said, it varies week on week with very little time off. It is 45 weeks of study at uni/on placement per year. However, only a two year course so there is definately light at the end of the tunnel!

    Will try and tackle the questions

    Council Tax = It is on 12 month payments and already has the student reduction in place fortunately. The rates in my area are generally high unfortunately. The payments are however up to date which is good!

    Phone Bill = it is extortionate I do agree. However we are locked into contracts (the above budget is for two people but even then it is high). It runs out in September I believe. It was taken out when I was earning a decent amount and before I even knew uni was an option.

    Car Insurance = this is for two cars. I rely on my car to get to placements which can be a decent hour away. The other car is for my partner who uses this to get to work also.

    Increasing Earnings = the 150 is an average. I have noticed the earnings go up and down like a yo-yo. Sometimes I am able to get a good few shifts in, and other months I get very little. It is not for lack of trying, the shifts are not endlessly available. I have however got at least 2 shifts a month booked in until September (after this point I will not know my whereabouts). My partner also sometimes earns more per month. But I am unsure of how to factor this in to a more solid budget.

    Prescriptions = unaware of what this is! Will certainly look into it as even freeing up 10 a month will help.

    Thank you everyone for your responses so far. I am trying to get on top of this with tomorrow seeing me go through bank statements and work out where every penny is going. I have done this before and will do it again!

    In better news however, working out what the situation will be when I am earning means I can see when all debt will be paid off!
    • Trentenders
    • By Trentenders 16th Apr 18, 7:35 PM
    • 1,162 Posts
    • 726 Thanks
    Trentenders
    Can your partner perhaps get some evening work? Shifts in a pub, or something like that?

    Can your partner obtain a consolidation loan in his name?

    Hitting those high APR credit cards as quickly as you can will help no end. Throwing away the catalogues might be worth thinking about too...
    • braken2000
    • By braken2000 16th Apr 18, 7:44 PM
    • 617 Posts
    • 118 Thanks
    braken2000
    Thanks Trentenders

    Catalogues are firmly thrown away. They were used for when we moved house (washing machine to name one thing for example). But not in use anymore .

    Not thought of a consolidation loan in his name. He might go for it, but it would appear that his credit rating is also not great unfortunately. We have ordered his credit file (2 one) to have a good look as to why. If we can it would be great!

    The high APR is depressing. Just in that awful trap of not being able to replace it with anything else.

    He also occasionally banks like I do, but his job can mean his time is not as available as we would like it. He does as much as he can in terms of overtime and night work etc. Once again it is just not as plentiful as we would like it.
    • beanielou
    • By beanielou 16th Apr 18, 8:52 PM
    • 56,185 Posts
    • 227,129 Thanks
    beanielou
    18 months is a long time to live on basically nothing.
    I just cant see how you can do it other than entering a DMP.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
    • braken2000
    • By braken2000 16th Apr 18, 8:55 PM
    • 617 Posts
    • 118 Thanks
    braken2000
    I was thinking the same beanielou . Although my partner will get a pay rise November time which will add potentially a couple of hundred a month also.

    It is just trying to avoid getting dreaded defaults as that will scupper a mortgage straight off. But survival needs to happen also I guess.
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