Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Crazysocks
    • By Crazysocks 15th Sep 18, 5:54 PM
    • 7Posts
    • 0Thanks
    Crazysocks
    Advice which route to take.
    • #1
    • 15th Sep 18, 5:54 PM
    Advice which route to take. 15th Sep 18 at 5:54 PM
    Iím getting help with a few debts. We have done my income and expenses so now we are ready to offer payments however they are small and it will take forever to pay them off. It was suggested I do a DRO. Iím not sure yet. I can manage small payments but how does this affect me in the long run ie my credit file could I get a mortgage ever? Does it show constantly red till itís paid off if that makes sense. Thank for any help.
Page 1
    • sourcrates
    • By sourcrates 15th Sep 18, 6:02 PM
    • 15,711 Posts
    • 14,776 Thanks
    sourcrates
    • #2
    • 15th Sep 18, 6:02 PM
    • #2
    • 15th Sep 18, 6:02 PM
    Hi,


    You would need to fill in a complete statement of affairs and provide a lot more detail before anyone can offer you any advice on this.


    If you do that, then I, and others, can explain your available options, how they are represented on your credit file, and for how long.


    So fill in the SOA first, link here :


    http://www.stoozing.com/calculator/soa.php


    We can then get the ball rolling.
    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/
    • Crazysocks
    • By Crazysocks 15th Sep 18, 6:48 PM
    • 7 Posts
    • 0 Thanks
    Crazysocks
    • #3
    • 15th Sep 18, 6:48 PM
    • #3
    • 15th Sep 18, 6:48 PM
    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 86.67
    Partners monthly income after tax....... 0
    Benefits................................ 2166.47
    Other income............................ 748.14
    Total monthly income.................... 3001.28


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 802.1
    Management charge (leasehold property).. 0
    Council tax............................. 20
    Electricity............................. 65
    Gas..................................... 90
    Oil..................................... 0
    Water rates............................. 52
    Telephone (land line)................... 25
    Mobile phone............................ 56.02
    TV Licence.............................. 12.83
    Satellite/Cable TV...................... 40
    Internet Services....................... 25
    Groceries etc. ......................... 800
    Clothing................................ 65
    Petrol/diesel........................... 151.67
    Road tax................................ 20.12
    Car Insurance........................... 83.72
    Car maintenance (including MOT)......... 70
    Car parking............................. 20
    Other travel............................ 25
    Childcare/nursery....................... 0
    Other child related expenses............ 163.33
    Medical (prescriptions, dentist etc).... 15
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 5.93
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 60
    Haircuts................................ 15
    Entertainment........................... 8
    Holiday................................. 20
    Emergency fund.......................... 0
    Smoking................................. 260
    Total monthly expenses.................. 2970.72



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 2500
    Other assets............................ 0
    Total Assets............................ 2500


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Water..........................1934......0........ .0
    Business startup...............8870......0.........0
    Cataloge.......................2188......0........ .0
    Unknown .......................407.......0.........0
    Total unsecured debts..........13399.....0.........-



    Monthly Budget Summary

    Total monthly income.................... 3,001.28
    Expenses (including HP & secured debts). 2,970.72
    Available for debt repayments........... 30.56
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 30.56


    Personal Balance Sheet Summary
    Total assets (things you own)........... 2,500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -13,399
    Net Assets.............................. -10,899
    • Crazysocks
    • By Crazysocks 15th Sep 18, 6:50 PM
    • 7 Posts
    • 0 Thanks
    Crazysocks
    • #4
    • 15th Sep 18, 6:50 PM
    • #4
    • 15th Sep 18, 6:50 PM
    Thank you. Iíve paste it above.
    • Teamocil
    • By Teamocil 15th Sep 18, 6:52 PM
    • 116 Posts
    • 70 Thanks
    Teamocil
    • #5
    • 15th Sep 18, 6:52 PM
    • #5
    • 15th Sep 18, 6:52 PM
    Getting rid of the £260 a month on smoking seems like a pretty good start.
    • rollercoasting
    • By rollercoasting 15th Sep 18, 6:57 PM
    • 25 Posts
    • 33 Thanks
    rollercoasting
    • #6
    • 15th Sep 18, 6:57 PM
    • #6
    • 15th Sep 18, 6:57 PM
    £800 on groceries is too high. You should be able to do this for £400 a month for the size of your family.
    • Crazysocks
    • By Crazysocks 15th Sep 18, 7:00 PM
    • 7 Posts
    • 0 Thanks
    Crazysocks
    • #7
    • 15th Sep 18, 7:00 PM
    • #7
    • 15th Sep 18, 7:00 PM
    I would like help on my original question regarding how ongoing payments affect credit files. Do they drag out having poor credit for years till it finally paid. ?
    Thank you.
    • Willing2Learn
    • By Willing2Learn 15th Sep 18, 7:05 PM
    • 1,750 Posts
    • 1,336 Thanks
    Willing2Learn
    • #8
    • 15th Sep 18, 7:05 PM
    • #8
    • 15th Sep 18, 7:05 PM
    I agree that £800 is exceptionally high for groceries etc. Where do you shop?

    How come your monthly water bill is so high? Is it metered?

    Are all your debts frozen, are on hold?

    I managed to use my monthly budget to majorly reduce my smoking. Every month I took off an hour a day when I wasn't allowing myself to smoke. I kept taking off 1 more each month until my official smoking time started at 3pm. An intended consequence was that I was also smoking less cigarettes per hour during my permitted hours. I managed to halve my smoking bill in six months
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Crazysocks
    • By Crazysocks 15th Sep 18, 7:11 PM
    • 7 Posts
    • 0 Thanks
    Crazysocks
    • #9
    • 15th Sep 18, 7:11 PM
    • #9
    • 15th Sep 18, 7:11 PM
    I pay water weekly with arrears,

    My children are on a special diet, and this includes other expenses.
    • Daniel1971
    • By Daniel1971 15th Sep 18, 7:29 PM
    • 18 Posts
    • 8 Thanks
    Daniel1971
    You budget does not look like a debt relief order would be suitable to me. Youíre spending too much on non essentials.

    What are the Ďother child related expenses?í
    • Daniel1971
    • By Daniel1971 15th Sep 18, 7:30 PM
    • 18 Posts
    • 8 Thanks
    Daniel1971
    And yes, ongoing payments could potentially affect your credit file for up to 6 years after the debts are paid in full. It depends when your creditors issue default notices
    • sourcrates
    • By sourcrates 15th Sep 18, 7:49 PM
    • 15,711 Posts
    • 14,776 Thanks
    sourcrates
    DRO would most likely be out of the question as you spend too much on everyday items, I appreciate the special diet etc, but £800 on groceries and £260 on smoking would not be allowable expenses at those levels.

    Your debts could be repaid by better budgeting if you can reign it in a bit more.
    Last edited by sourcrates; 15-09-2018 at 8:30 PM.
    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/
    • fatbelly
    • By fatbelly 15th Sep 18, 8:19 PM
    • 12,972 Posts
    • 10,043 Thanks
    fatbelly
    Getting you under £50 surplus would be difficult but I would not rule it out completely. If any of those 'benefits' are DLA or PIP then they can be disregarded, and maybe we could then look at lower figures for smoking, groceries, car maintenance and ‘other child related expenses?’

    However the big problem for your application would be your car value, which breaches the £1000 maximum.

    Water at £52 may well be OK - that would be average for the SWW region - suspect some of it is payment towards the arrears anyway.

    As for how a DRO affects your credit file - defaults and any form of insolvency stay on your file for 6 years - at least there's an end point
    Last edited by fatbelly; 15-09-2018 at 8:21 PM.
    • Crazysocks
    • By Crazysocks 15th Sep 18, 9:04 PM
    • 7 Posts
    • 0 Thanks
    Crazysocks
    Thank you for everyone’s advice.
    • fatbelly
    • By fatbelly 16th Sep 18, 4:34 AM
    • 12,972 Posts
    • 10,043 Thanks
    fatbelly
    Water at £52 may well be OK - that would be average for the SWW region - suspect some of it is payment towards the arrears anyway.
    Originally posted by fatbelly
    Just realised that, with 3 kids, you may qualify for a capped tariff like this one

    https://www.southwestwater.co.uk/bills/struggling-to-pay/watersure-tariff/

    Not that this one is capped at much less than you actually pay, but it's worth looking into.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,117Posts Today

9,804Users online

Martin's Twitter