i need help and options!! MY SOA ADDED

carter_3 · 22 November 2006 at 4:49PM

hi, i have been reading this board for a while now but have never had the balls to stand up and speak before.

basically my money has run out and im now struggling with my debts.

im 24, a home owner and in a good secure job thas is good pay for my age.

I have had problems with debt in the past when i was 19 but with help from my parents in the form of advise i managed to sort that out, but the problems started again when i bought my house 2 years ago, i had to buy one as my parents retired to spain.

once i was payng my morgage i found i couldn't affort the things i could before so stupidy and being very greedy istarted borrowing money and using my credit cards again.

i take home just over £1300 every 4 weeks in my wage, but my out going are now about £1000 a month. i would just about be able to afford my morgage and bills on there own, but its my debts that are now killing me.

my debts consist off 3 credit cards totalling £6000 and a long term loan with about £10000 left to pay on it. i recently applyed for a new credit car with interst free balance tranfers but i was declined due to me being over drawn one one of my other cards.

im now lost for ideas, im 24 and it feels like my life is over for the time being. i dont want to go to my parents again because i feel ashamed that i have got my self in this situation again. my girlfriend wants me to sit down with her parents to discuss things but i dont want them to see how greedy and selfish i have been in the past.

any advise no matter how harsh it is will be welcomed, i just dont know where else to turn now.

Avogirly · 22 November 2006 at 4:53PM

:hello: and welcome to MSE! Congrat's on your first post. Next piece of advice is to do a SOA, see SS's sticky for more advice and we can go from there.

Good luck

Avo xXx

vivaladiva · 22 November 2006 at 4:54PM

Hi
Have a look at SS's sticky on SOA's and post one on here. There'll be lots of advice on where you casn save some cash.
Well done for posting - you've taken that first step.:D

Storm · 22 November 2006 at 5:20PM

You need to post a full SoA, but my first thought is that as you're a homeowner can you take in a lodger?

Welcome btw :hello:

carter_3 · 22 November 2006 at 5:57PM

i think this is what your after

salary £1300
rent from lodger £250

total £1550

out goings..

morgage £549.90
loan £159.33
Gas and Elec £50
TV licence £10.99
Water £10
Land line and broadband £30
Mobile Phone £60
Amex card £81
Visa1 £51
visa2 £30

total £1032.22

crdit cards

HSBC Visa balance £1742.38, limit £4200 APR 18.3%
Smile Visa Balance £1450.78 limit £1300 APR 15.0%
AMEX Balance £2500 limit £3600 APR 15.72%

TTMCMschine · 22 November 2006 at 6:03PM

Do you eat food?
Have sat/cable tv?
a car?
Pay insurance?
etc,etc,etc?

CLAPTON · 22 November 2006 at 6:10PM

you need to include everything you spend so you can see exactly where the money is going. everything includes all the yearly or one-off spends (divide these by 12 and include in the monthly budget)

also it helps when reading if you seperated 'normal spending from debt repayment.

carter_3 · 22 November 2006 at 6:11PM

food £50
Petrol £60

just canceled sky as it a treat i cant affort and i payed my insurence on my credit card.

back in the morning, have to go to work now.

inkie · 22 November 2006 at 6:35PM

The mobile phone bill per month seems a lot - can you switch to PAYG to reduce this?

Also note that you have not budgeted anything for Council Tax???

Bloke_with_a_simple_life · 22 November 2006 at 6:35PM

Hello Carter

First of all - good luck with getting to grips with your challenges and asking for advice. It must be difficult to have to get a mortgage at such a young age and try to cope. Cannot imagine that I would have been able to do that (infact, I was too scared to contemplate that at all until my mid-20s!)

Please can you go back and check the SOA again. One of the big problems I think peopole have is they don't understand how much is being spent on what.

You must understand everything that is going on the card and all other standing orders/direct debits you have set up.

A "spending diary" would be ideal - start jotting down everything you buy/pay for each day, and review weekly, monthly, quarterly so you understand how your credit card balances are increasing (e.g. throwing the annual car insurance on it) - and why the balances never decrease even though you are not in arrears.

A couple of other things missing off your SOA:
- council tax.
- going out
- clothes

An introduction on how to do your SOA fully can be found at http://forums.moneysavingexpert.com/showthread.html?t=107280

Good luck!

CLAPTON · 22 November 2006 at 6:47PM

before you can tackle the situation you need to determine where ALL your money is being spent...so far you say your income is 1,550 per month and your spending is 1033+50+60 =1143 so you say you have 407 per month left over.

clearly you dont have 407 left over so where is it going?

you need to
a. start a spending diary and write down everything you spend
so e.g do you pay water charges, spend anything going out/socialising, anything on food at work, haircuts, etc etc

b. work out all the yearly, irregular and one off spends , divide these by 12 and add them to you SoA. so you need to include car tax, insurance, MOT, AA/RAC, serving, anything on holidays, presents, xmas etc etc. these you divide by 12...in the months you dont actually spend on these items you save the money so when the bills are due you wont spend on CC but use the savings.

probably best to repost a new SoA with all thesed items included and with totals for normal spending and debt repayments.

i need help and options!! MY SOA ADDED

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