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lovesmakeup
Posts: 15 Forumite
I'm going to try not to ramble and just give the facts.
My dad died two years ago and I inherited enough money to put down a large deposit on a house. I had to take out a loan for 12k to cover the stamp duty as I didn't receive all the inheritance I thought I was going to receive.
I have struggled really badly with depression since as the way he died was horrific and I had to leave my job (working with suicidal mental patients) because of it.
Since getting my house 12 months ago I've managed to spend thousands. A friend tried to help me sort things out 6 months ago and she had to give up as I was basically still spending. In fact I spent another 5 grand.
She's since realised what I've done so has sat down and explained that if I continue I could lose my house. She wasn't being dramatic, she showed me the financial state I was in.
I need help. What do I do?
All of our expenses are committed ones, like the mobile phones - do we default on them? Will this affect my remortgage in 12 months? I have a large personal spending allowance but it covers my fuel and anything I need including haircuts etc. Same for OH. If our personal spendings are too restrictive we're likely to blow all of our money.
Our overdraft is at £3600 so with the help of our friend we've opened two new personal accounts with a different bank and then a joint account with another bank. We won't have access to the joint account for a while, she will so that we don't transfer money to our personal accounts. This is the reason we failed the first time as she gave us a budget of £200 each and then by the end of the month we'd taken 4 x that amount so we need not to have access. Our council tax has bounced every month for three months, my car payment has bounced for two months and they've served me with a default notice.
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................ 2000
Partners monthly income after tax....... 1340
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3340
Monthly Expense Details
Mortgage................................ 767
Secured/HP loan repayments.............. 530
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 143
Electricity............................. 182
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 160
TV Licence.............................. 13
Satellite/Cable TV...................... 35
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 31.93
Car Insurance........................... 158
Car maintenance (including MOT)......... 66
Car parking............................. 30
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 101.75
Pet insurance/vet bills................. 160
Buildings insurance..................... 39.84
Contents insurance...................... 0
Life assurance ......................... 22.23
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
My expenses............................. 487.5
OH expenses inc smoking, fuel etc....... 375
RCN..................................... 30
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 3472.25
Assets
Cash.................................... 0
House value (Gross)..................... 290000
Shares and bonds........................ 0
Car(s).................................. 28000
Other assets............................ 0
Total Assets............................ 318000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 191.25...(767)......1.34<
Car............................8000.....(330)......0<
Van............................12000....(200)......9
Total secured & HP debts...... 20191.25..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Credit Card 0%..........1121.95...25........0
Sainsburys Credit Car..........4900......160.......28.9
Tesco Credit Card..............1837.86...25........0
Lloyds Loan....................10426.....270.......10
Lloyds Overdraft...............3600......150.......20
Total unsecured debts..........21885.81..630.......-
Monthly Budget Summary
Total monthly income.................... 3,340
Expenses (including HP & secured debts). 3,472.25
Available for debt repayments........... -132.25
Monthly UNsecured debt repayments....... 630
Amount short for making debt repayments. -762.25
Personal Balance Sheet Summary
Total assets (things you own)........... 318,000
Total HP & Secured debt................. -20,191.25
Total Unsecured debt.................... -21,885.81
Net Assets.............................. 275,922.94
My dad died two years ago and I inherited enough money to put down a large deposit on a house. I had to take out a loan for 12k to cover the stamp duty as I didn't receive all the inheritance I thought I was going to receive.
I have struggled really badly with depression since as the way he died was horrific and I had to leave my job (working with suicidal mental patients) because of it.
Since getting my house 12 months ago I've managed to spend thousands. A friend tried to help me sort things out 6 months ago and she had to give up as I was basically still spending. In fact I spent another 5 grand.
She's since realised what I've done so has sat down and explained that if I continue I could lose my house. She wasn't being dramatic, she showed me the financial state I was in.
I need help. What do I do?
All of our expenses are committed ones, like the mobile phones - do we default on them? Will this affect my remortgage in 12 months? I have a large personal spending allowance but it covers my fuel and anything I need including haircuts etc. Same for OH. If our personal spendings are too restrictive we're likely to blow all of our money.
Our overdraft is at £3600 so with the help of our friend we've opened two new personal accounts with a different bank and then a joint account with another bank. We won't have access to the joint account for a while, she will so that we don't transfer money to our personal accounts. This is the reason we failed the first time as she gave us a budget of £200 each and then by the end of the month we'd taken 4 x that amount so we need not to have access. Our council tax has bounced every month for three months, my car payment has bounced for two months and they've served me with a default notice.
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................ 2000
Partners monthly income after tax....... 1340
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3340
Monthly Expense Details
Mortgage................................ 767
Secured/HP loan repayments.............. 530
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 143
Electricity............................. 182
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 160
TV Licence.............................. 13
Satellite/Cable TV...................... 35
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 31.93
Car Insurance........................... 158
Car maintenance (including MOT)......... 66
Car parking............................. 30
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 101.75
Pet insurance/vet bills................. 160
Buildings insurance..................... 39.84
Contents insurance...................... 0
Life assurance ......................... 22.23
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
My expenses............................. 487.5
OH expenses inc smoking, fuel etc....... 375
RCN..................................... 30
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 3472.25
Assets
Cash.................................... 0
House value (Gross)..................... 290000
Shares and bonds........................ 0
Car(s).................................. 28000
Other assets............................ 0
Total Assets............................ 318000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 191.25...(767)......1.34<
Car............................8000.....(330)......0<
Van............................12000....(200)......9
Total secured & HP debts...... 20191.25..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Credit Card 0%..........1121.95...25........0
Sainsburys Credit Car..........4900......160.......28.9
Tesco Credit Card..............1837.86...25........0
Lloyds Loan....................10426.....270.......10
Lloyds Overdraft...............3600......150.......20
Total unsecured debts..........21885.81..630.......-
Monthly Budget Summary
Total monthly income.................... 3,340
Expenses (including HP & secured debts). 3,472.25
Available for debt repayments........... -132.25
Monthly UNsecured debt repayments....... 630
Amount short for making debt repayments. -762.25
Personal Balance Sheet Summary
Total assets (things you own)........... 318,000
Total HP & Secured debt................. -20,191.25
Total Unsecured debt.................... -21,885.81
Net Assets.............................. 275,922.94
0
Comments
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You need to give a breakdown of your and your OH's expenses. Fuel should be in the petrol column and so on.
Your mobile expenses are ridiculous. Speak to the operator and explain your situation. If need be sell the phones to recoup some of the expense. You don't need an expensive phone.
Only £100 a month on groceries?
What are your medical and pet expenses?0 -
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................ 2000
Partners monthly income after tax....... 1340
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3340
Monthly Expense Details
Mortgage................................ 767
Secured/HP loan repayments.............. 530
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 143
Electricity............................. 182
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 160 (Is that for 2 phones? Can't you go Pay as you go or get cheaper contract?)
TV Licence.............................. 13
Satellite/Cable TV...................... 35
Internet Services....................... 0 (No Internet at all)
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0 (How do you fill the car up??)
Road tax................................ 31.93
Car Insurance........................... 158
Car maintenance (including MOT)......... 66
Car parking............................. 30
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 101.75
Pet insurance/vet bills................. 160
Buildings insurance..................... 39.84
Contents insurance...................... 0
Life assurance ......................... 22.23
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (Nothing not even £50 a month)
Haircuts................................ 0
Entertainment........................... 0 (Should have something in there)
Holiday................................. 0 (No Holidays)
Emergency fund.......................... 0 (Need this)
My expenses............................. 487.5 (What are these for?)
OH expenses inc smoking, fuel etc....... 375
RCN..................................... 30
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 3472.250 -
Even without your unsecured debts you are spending more than you earn. You are going to need a lifestyle change to get out of this.
Do you have one or more spare rooms to take a lodger in?
Are you on the best electricity deal for you? Can you cut your use age at all?But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
BorisThomson wrote: »You need to give a breakdown of your and your OH's expenses. Fuel should be in the petrol column and so on.
Your mobile expenses are ridiculous. Speak to the operator and explain your situation. If need be sell the phones to recoup some of the expense. You don't need an expensive phone.
Only £100 a month on groceries?
What are your medical and pet expenses?
I haven't split out our personal money because we don't do it that way - we don't spend xx on fuel we just make sure we have enough to cover it all
My medical expenses are £50 Vision Express and then dental
My pet expenses are £50 insurance for two large dogs and then food.
All my expenses have been worked out based on the average of the last three months0 -
theoretica wrote: »Even without your unsecured debts you are spending more than you earn. You are going to need a lifestyle change to get out of this.
Do you have one or more spare rooms to take a lodger in?
Are you on the best electricity deal for you? Can you cut your use age at all?
We have a lodger who pays £80 a week which is why my groceries budget is only £100. We use the £80 for food and then the £100 in the account is for when we buy online deliveries
Our electricity is complicated. I am looking at whether I'm on the best deal, our thermostat is outside and the heating is on all the time. It is also a large house0 -
lovesmakeup wrote: »My medical expenses are £50 Vision Express and then dental
My pet expenses are £50 insurance for two large dogs and then food.
All my expenses have been worked out based on the average of the last three months
Please answer all questions, and put the information in the correct column.
Lodger income should be listed in other income, and your outgoings adjusted accordingly.
What are you spending the dental and Vision Express payments on?
£110 on dog food, that needs to be changed.0 -
I don't really know where to start except to say that you need to decide what is most important to you. If you carry on spending at the rate you are then I agree with your friend your situation is dire and you will lose your house.
The personal expenses need to be broken down and are far too high.
The electricity costs are huge. Is there a reason for this? Are you trying to economise or on a cheapest tariff. Do a comparison if you have not already done it. Are you in arrears on it and this is the reason for the large payment?
You need to contact your council re the defaults on council tax. Those will definitely affect your credit record and they can take money off your salary or benefits if they take you to court. If you are not working where does that £2k per month come from?
If you continue to default with the car they will take it back but you cannot afford it anyway. Have you contacted them to see if they can suggest anything? Presumably if you are not working you do not need it anyway?
The medical expenses, mobile phones and pet insurance/vets bills are all too high. Have you tried everything to try and get these down?
As you have such a massive shortfall what is not being paid at the moment or has it been going on your overdraft? Your overdraft must be expensive due to Lloyds putting their fees up last year.
I think you and your OH need to go through your soa again being much more accurate and breaking down the personal expenses and deciding what you can ditch or reduce. You may need to consider a DMP and that will also involve some tough decisions.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment 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.0 -
enthusiasticsaver wrote: »I don't really know where to start except to say that you need to decide what is most important to you. If you carry on spending at the rate you are then I agree with your friend your situation is dire and you will lose your house.
The personal expenses need to be broken down and are far too high.
The electricity costs are huge. Is there a reason for this? Are you trying to economise or on a cheapest tariff. Do a comparison if you have not already done it. Are you in arrears on it and this is the reason for the large payment? Honestly, I don't know. We spent £63.51 on Electricity in November and £84.50 on Gas. It's higher for December and January. I believe our thermostat works on the temperature outside and then keeps the heat up to avoid frozen pipes.
You need to contact your council re the defaults on council tax. Those will definitely affect your credit record and they can take money off your salary or benefits if they take you to court. I have sent them an email, I've checked and we're only £143 behind so I've emailed to tell them i will pay this on Friday 16th March,
If you are not working where does that £2k per month come from?I am working. Essentially I was a manager, I had to leave. Then I am temping at a job I love which brings in £3600 a month, they've offered me perm work but due to the way the NHS works the permanent salary is less than half the temporary salary. So I will be going back to agency work by the end of this month which at 2 shifts a week is £2000 a month.
If you continue to default with the car they will take it back but you cannot afford it anyway. Have you contacted them to see if they can suggest anything? Presumably if you are not working you do not need it anyway? I've paid over 2/3 of the car. I was considering contact them to ask if we could renegotiate payments. I have 18 months left I think. I will need it for agency work as I'll be driving quite far
The medical expenses, mobile phones and pet insurance/vets bills are all too high. Have you tried everything to try and get these down? Medical expenses are high, I use contact lenses and other brands irritate my eyes. I am planning on starting again with trials to see if I can find a cheaper alternative. I don't have access to a NHS dentist so the remaining £50 a month covers any dental nasties. Pet insurance is high for £50 I am going to look at other providers however I don't expect it to lower that much due to the breed of my dogs. Pet food is high because we were feeding raw, we are currently trialling kibble to bring this down.
As you have such a massive shortfall what is not being paid at the moment or has it been going on your overdraft? Your overdraft must be expensive due to Lloyds putting their fees up last year. £5 a day plus £150 a month interest. It has only just got to the point where we can't manage the shortfall. Previously things would bounce but I could sort of live hand to mouth but literally pay check to pay check. And now its caught up with us. There is £400 left in the joint account and all the bills to go out.
I think you and your OH need to go through your soa again being much more accurate and breaking down the personal expenses and deciding what you can ditch or reduce. You may need to consider a DMP and that will also involve some tough decisions.How would a DMP affect me needing to remortgage next year? I have based my SOA on my current spending because that was more accurate than saying "this is what I'll do. my friend is totally tough love and ultimately I know its got to change.
Thank you sorry if I've missed anything out when replying. i haven't broken down our personal money as I know it covers it all but I don't know what it covers down to the exact penny. I will be doing this moving forward though0 -
I suggest you keep a spending diary -record absolutely every penny you and OH spend. It will be an eye openerI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards 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.0 -
lovesmakeup wrote: »We have a lodger who pays £80 a week which is why my groceries budget is only £100. We use the £80 for food and then the £100 in the account is for when we buy online deliveries
Our electricity is complicated. I am looking at whether I'm on the best deal, our thermostat is outside and the heating is on all the time. It is also a large house
So you are actually paying about £450 a month on food? That is another very high figure.
£50 a month for optician is a lot, check you are on the best deal.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0
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