In need of serious help
Options
Comments
-
Thank you for you reply, I've answered your comments below;
Secured/HP loan repayments - This is ranked low, but due to finance no one will buy, I've tried to park ex but they will only accept if i trade it for something more expensive.
Council tax - Yes I claim the discount
Electricity & Gas - I'm on a smart payg meter with ecomony, i have just switched to BG on a fixed price of £90pm for both
Satellite/Cable TV and Internet - I have 3 months left of the contract then I will switch, this also includes the internet.
Car Insurance - I have a clean licence now but there is a couple points that are not active but still show (they get removed in 4 months(just in time for my renewal), it cost £1200 per year, I pay it over 10 months
Other child related expenses - I have 2 children with my Ex, this is a mutual cost not done with CSA they are 4 and 9yo
Emergency fund - I end up lending when this is needed, that why i think i am where i am.0 -
After looking at the SoA and your very helpful comments, I agree another loan is not the answer, although the car looks the biggest cost it's because i do so much driving, the groceries are high due having the kids over every other weekend and this also include eating out of town whilst working.0
-
How far into the car payment term are you, Pielad? If it is a hire purchase-type arrangement, and you have already repaid 50% of the total owed, you may be able to voluntarily terminate and return the vehicle at no added cost.
Dennis
@natdebtlineWe 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 Steps0 -
Not sure the type official type, the car is mine after the final payment (there is no lump sum at the end to pay to own it). I am 18 month into a 4 year term so not over 50% yet.0
-
Why do you have 2 cars?Dave Ramsey Fan[/COLOR]0
-
Pielad0780 wrote: »Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 2 - Why 2 cars? Can you get rid of one?
Monthly Income Details
Monthly income after tax................ 4200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4200
Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 800
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 80 - Is this spread over 12 months?
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 40 - Are you in contract? Can you negotiate?
TV Licence.............................. 12
Satellite/Cable TV...................... 90
Internet Services....................... 30
Groceries etc. ......................... 400 - Even having the kids every other weekend this is EXTREMELY high, we are a family of 4 and spend £200 in a bad month, do you have a local Aldi or Lidl? Is the food for work through the day? If so can you take lunch? If not is this something the company would provide on expenses if away from normal place of work?
Clothing................................ 100 - This is high, only buy what you NEED.
Petrol/diesel........................... 300 - Is this from working away from normal place of work? If so do you have a company car you could take? Or could you claim fuel allowance?
Road tax................................ 20
Car Insurance........................... 120
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 80 - What is this for?
Childcare/nursery....................... 0
Other child related expenses............ 450
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 - Do you actually save this every month?
Haircuts................................ 30 - Do you really spend/save this? It could be a lot cheaper!
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 3077
Assets
Cash.................................... 800 - What is this for?
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 75800
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 67000....(320)......0
Hire Purchase (HP) debt ...... 25000....(800)......0
Total secured & HP debts...... 92000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
TFS garentour loan.............6000......326.......0
Buddy garentour loan...........7000......278.......0
UK credit garentour l..........8000......310.......0
Total unsecured debts..........21000.....914.......-
Monthly Budget Summary
Total monthly income.................... 4,200
Expenses (including HP & secured debts). 3,077
Available for debt repayments........... 1,123
Monthly UNsecured debt repayments....... 914
Amount left after debt repayments....... 209 - Do you actually have this at the end of the month?
Personal Balance Sheet Summary
Total assets (things you own)........... 75,800
Total HP & Secured debt................. -92,000
Total Unsecured debt.................... -21,000
Net Assets.............................. -37,200
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.
Comments in red!
If you do have the £209 left at the end of the month already then great! If not you may need to keep track of every penny for a month and then redo SOA. If you can reduce the rest then even better!0 -
OK - again, to echo what others have said - consolidation will NOT "solve all your problems"
- it will compound them.
Comments on the SOA in red as usual:
]Pielad0780 wrote: »Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 2 If you can drive two things at once you're cleverer than me - look at selling one vehicle
Monthly Income Details
Monthly income after tax................ 4200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4200
Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 800
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 80 Is this paid over 12 months or 10? And I take it that is with the single person discount applied?
Electricity............................. 60 REALLY high - turn things off for goodness sake! How on earth are you using that amount of electric every month? We don;t use that much and the only thing we use gas for is cooking!
Gas..................................... 60 Turn the thermostat down a few degrees and put a jumper on. Make sure you're on the best tariff for your needs too - I suspect you might not be.
Oil..................................... 0
Water rates............................. 20 Metered I assume? If so really start thinjing about what you use.
Telephone (land line)................... 0
Mobile phone............................ 40 This is high - if not in contract change to SIM only.
TV Licence.............................. 12 12.37 I think?
Satellite/Cable TV...................... 90 BIN THIS RIGHT NOW - you can't meet your monthly expenditure and you're paying £90 for a TV package? Come on!
Internet Services....................... 30 You can get cheaper than that - shop around.
Groceries etc. ......................... 400 For ONE person? Halve that. Then halve it again.
Clothing................................ 100 Live with what you;'ve got until your situation is under control.
Petrol/diesel........................... 300 Too much - is this ALL mileage that you absolutely have to do?
Road tax................................ 20
Car Insurance........................... 120 This will reduce if you sell one vehicle presumably?
Car maintenance (including MOT)......... 15 I don't believe this is enough for two vehicles considering the mileage it looks like you're doing.
Car parking............................. 0
Other travel............................ 80 You own 2 vehicles and spend £300 a month on fuel - can this additional be reduced or stopped altogether?
Childcare/nursery....................... 0
Other child related expenses............ 450 Assume this is an agreed amount for child maintenance?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0 Does the building insurance amount include contents as well? If not get this sorted ASAP.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 30 Every month? No - reduce this.
Entertainment........................... 0 Nothing, ever? Never a quick cup of coffee,
activities with your child/children? A few drinks after work?
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 3077
Assets
Cash.................................... 800
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 75800
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 67000....(320)......0
Hire Purchase (HP) debt ...... 25000....(800)......0
Total secured & HP debts...... 92000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
TFS garentour loan.............6000......326.......0 0% - sure about that? seems highly unlikely...
Buddy garentour loan...........7000......278.......0 0% - sure about that? seems highly unlikely...
UK credit garentour l..........8000......310.......0 0% - sure about that? seems highly unlikely...
Total unsecured debts..........21000.....914.......-
Monthly Budget Summary
Total monthly income.................... 4,200
Expenses (including HP & secured debts). 3,077
Available for debt repayments........... 1,123
Monthly UNsecured debt repayments....... 914
Amount left after debt repayments....... 209 Good -n so you are at least in the black - do you have this amount each month? If not you need to find it...
Personal Balance Sheet Summary
Total assets (things you own)........... 75,800
Total HP & Secured debt................. -92,000
Total Unsecured debt.................... -21,000
Net Assets.............................. -37,200
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.
OK - I'm going to have a wild stab in the dark here - those loans are the result of you consolidating debt before, I'm guessing? First thing to say - learn from this - none of those "solved all your problems" did they - so neither will doing that again.
The great news is that you CAN meet your monthly expenses as stated - albeit I suspect that SOA is missing some bits of info. Zero for entertainment is highly unlikely to be accurate. £400 for food on the other hand for one person is truly ridiculous - you could feed a family of 4 for a month on that easily, and have change!
That £800 you show in cash is now your emergency fund - keep it safe and don't fitter it on nonsense. If the washing machine/fridge/cooker goes kaput then this is where it gets replaced from - then build the amount back up again.
Vehicle expenses are taking up a lot of your income at the moment - honestly I'd think about getting shot of one vehicle at the moment.
Get shot of that TV package too - that's a crazy amount to pay, seriously, even if you weren't in debt we'd be telling you that!
If you can track down that surplus, save at least the same amount again on your food/grocery shopping and ditch the £100 a month on clothes for the foreseeable that is an extra £500 per month you can throw at debts - which means that by this time next year you could have waved goodbye to one of those loans completely and be making an impact on another. Use small savings made elsewhere to give yourself things like an entertainment budget. I reckon relatively easily you can make at least another £100 of savings on that SOA on top of that too - more if you ditch a vehicle - in which case that is yet more to throw at debt.
That level of income places you in a very privileged position and gives you a lot of options over many on here - knuckle down, deal with the situation, but please DON'T go and get another loan - you need to learn to live with a sensible budget first of all - until you do that, no amount of credit will ever solve your problems.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
No - you're where you are because you have spend out more than you have coming in. However, stop lending people money while you're in debt yourself.Pielad0780 wrote: »Thank you for you reply, I've answered your comments below;
Secured/HP loan repayments - This is ranked low, but due to finance no one will buy, I've tried to park ex but they will only accept if i trade it for something more expensive.
Council tax - Yes I claim the discount That answers my question then -
think about switching over to paying over 12 months not 10 though - this helps with budgeting.
Electricity & Gas - I'm on a smart payg meter with ecomony, i have just switched to BG on a fixed price of £90pm for both BG was REALLY the cheapest you could get?
Satellite/Cable TV and Internet - I have 3 months left of the contract then I will switch, this also includes the internet. Your SOA showed a separate amount for internet?
Car Insurance - I have a clean licence now but there is a couple points that are not active but still show (they get removed in 4 months(just in time for my renewal), it cost £1200 per year, I pay it over 10 months Why over 10 months? And do you save the 2 months you're not paying this out?
Other child related expenses - I have 2 children with my Ex, this is a mutual cost not done with CSA they are 4 and 9yo
Emergency fund - I end up lending when this is needed, that why i think i am where i am.
Nope - not buying this I'm afraid -Pielad0780 wrote: »After looking at the SoA and your very helpful comments, I agree another loan is not the answer, although the car looks the biggest cost it's because i do so much driving, Read Martin's guide on driving economically.
the groceries are high due having the kids over every other weekend and this also include eating out of town whilst working.
others have advised on this already I believe. You can still halve that monthly cost.
But this is at £800 a month, yes? So that's nearly £40k you will be paying out over that 4 year period? My flabber is truly gasted.Pielad0780 wrote: »Not sure the type official type, the car is mine after the final payment (there is no lump sum at the end to pay to own it). I am 18 month into a 4 year term so not over 50% yet.
If you genuinely can't sell the money-pit car then get the other one gone. As far as I can see, and the thing that shocks me the most here - there are two possibilities - either you have run up those three loans totalling 21k inside 18 months, OR you took the decision to take finance to purchase a vehicle that expensive while you were already in debt? Either way there is a significant problem here. It really is time to face up and knuckle down - "solve your problems" yourself before they become insurmountable.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards