£46,000 possibly more debt I want it gone..

nsl101 · 26 July 2017 at 5:02PM

Hi all,

so its gone on too long, ever since i was in my teenage years and i could get debt i've had debt, I've struggled with depression and although I probably can afford debt its growing and I really want to get rid.

I can't tell you exactly how much debt i have but in short I have one bank loan currently sitting at 16,000 two credit cards one is at 8,000 the other i think is about 4,000 i dip in and out of my overdraft, I have a car on PCP finance that's about 10,000 and on top of all this i owe my father another 8,000 which he is in no hurry for but still i feel its time i face up to it and actually paid this stuff off .

I also have a sofa loan which i think is about 4,000 but to be honest i really don't know...

I have three teenage children and I'm divorced, i live on my own in a house i bought 2-3 years ago on the help to buy scheme which i will have to extend my mortgage to buy the other percentage in a few years so I'm on a ticking time bomb to loosing my home if i don't straighten this all out.

I'm here for the motivation and the kick up the wotsit to get it done, and in double quick time before my Girlfriend who i love dearly looses it with me over money worries.

I plan to sort out a full break down of what i owe and post it in due course. In the mean time I hope this may be of interest to anyone else in a similar boat reading some of the posts on this forum has really encouraged me to get on with this i should have done it years ago.

quintwins · 26 July 2017 at 5:09PM

Well done for posting, just writing it down is a start.

Will you have to buy the other half of your house in a few years? the way it works here is you can just keep paying the "rent" on the bit you don't own.

You need to look at when your pcp ends and you need to pay the remainder (or just hand it back and get a run around).

these 2 problems might not be as big of problems as you think they are. its unlikely you will be forced to buy the rest of your house, remember your council don't want to make you homeless or you become their problem then.

pennystretcher · 26 July 2017 at 8:44PM

It is painful but take the paperwork out and work it all out. The main thing is to start paying off the most expensive debt first, Once you put your mind to it, you can do it, no doubt! You have had your LBM and now it's time to sort it. You will feel so much better once you have a plan in place. (It might take time, but don't be discouraged by the time - it'll fly by..)

Pixie5740 · 26 July 2017 at 8:48PM

You don't have to repay the equity loan at the end of 5 years.

After five years you will be required to pay an interest fee of 1.75% of the amount of your Help to Buy shared equity loan at the time you purchased your property, rising each year after that by the increase (if any) in the Retail Prices Index (RPI) plus 1%.
The loan itself is repayable after 25 years or on the sale of the property if earlier.

Taken from: https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-oct-16-V1016.pdf

nsl101 · 27 July 2017 at 2:06PM

So in making a start ive spent my lunch break looking at this SOA link in the sitcky post.

This may be a shocker i don't know, but i've filled this in roughly with what i know... Ive left out what i owe my father for now as ive not managed to dig out all the paper work yet...

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.................... 3

Monthly Income Details
Monthly income after tax................ 2179.31
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 295
Total monthly income.................... 2474.31

Monthly Expense Details
Mortgage................................ 482.9
Secured/HP loan repayments.............. 482.19999999999993
Rent.................................... 220
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 25
Gas..................................... 25
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 47.49
Mobile phone............................ 142.27
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 350
Road tax................................ 20.99
Car Insurance........................... 105.74
Car maintenance (including MOT)......... 20
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 300
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15.99
Contents insurance...................... 0
Life assurance ......................... 55.69
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
HP ink.................................. 1.99
Total monthly expenses.................. 2439.38

Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 150000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(482.9)....0
Secured Debt.................. 16324.2..(272)......3.251
Hire Purchase (HP) debt ...... 10000....(210.2)....0
Total secured & HP debts...... 136324.2..-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA Card1 (nuba)..............8074.99...81........0
NBNA Card 2....................3102.64...95........0
Total unsecured debts..........11177.63..176.......-

Monthly Budget Summary
Total monthly income.................... 2,474.31
Expenses (including HP & secured debts). 2,439.38
Available for debt repayments........... 34.93
Monthly UNsecured debt repayments....... 176
Amount short for making debt repayments. -141.07

Personal Balance Sheet Summary
Total assets (things you own)........... 150,000
Total HP & Secured debt................. -136,324.2
Total Unsecured debt.................... -11,177.63
Net Assets.............................. 2,498.17

nsl101 · 27 July 2017 at 2:16PM

I know i need to sit down and do this accurate but at least i know i have the correct figures for my Credit cards... that feels like a start... i've set the payments just above the minimum so that as the minimum payment drops the payments actually don't... I also have another income to include, but i'm working on my numbers for that atm as i have to self asses the tax on that but basically its 200 a month.. this is all feeling a it squeaky. I think having read the advice about the Help to buy scheme i feel happier that that's not so much of a time bomb as i was thinking... I'm good at catastrophising things...

I feel once i get the bigger picture, i will be looking to remove unneeded stuff and moving that money onto the smaller credit card and get that paid off.

Well its the first thought. the PCP finance is a bit of a bind, i ended up being stuck without a car on a 6 year contract for PCP, i was offered a way out by the car dealer a year ago, which put me on a 4 year deal, while i was without a car i bought a cheap working vehicle which i love its reliable and bigger than the replacement car i was offered to get out of the original pcp, long term, i figured it was better to have the car for the 4 year term offered on the pcp and then pay the balloon payment and then shift the car on either trade in or sell it privately... simply put the fees for breaking it early are just as expensive as paying it over time... and i don't have the cash to cover the fees to break it early... so hence the number of 3 cars, the 3rd car is my morris minor probably worth a few hundred quid not on the road atm, and waiting for a day when i have the money to restore it like it should be.. Ive had the car 10 years and its a loved and cherished possession, and a good reason to be sorting all this debt out...

I hope that helps explain some of it...

quintwins · 27 July 2017 at 2:16PM

sorry we crossed posted, can you not sell your wee run around car?

chelseablue · 27 July 2017 at 2:18PM

nsl101 wrote: »

So in making a start ive spent my lunch break looking at this SOA link in the sitcky post.

This may be a shocker i don't know, but i've filled this in roughly with what i know... Ive left out what i owe my father for now as ive not managed to dig out all the paper work yet...

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.................... 3 Why do you own 3 cars?

Monthly Income Details
Monthly income after tax................ 2179.31
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 295
Total monthly income.................... 2474.31

Monthly Expense Details
Mortgage................................ 482.9
Secured/HP loan repayments.............. 482.19999999999993
Rent.................................... 220
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 25
Gas..................................... 25
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 47.49
Mobile phone............................ 142.27 :eek:How many phones is this for?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0 You never buy food?
Clothing................................ 0
Petrol/diesel........................... 350
Road tax................................ 20.99
Car Insurance........................... 105.74 I presume this is for 3 cars?
Car maintenance (including MOT)......... 20
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 300 What is this for?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15.99
Contents insurance...................... 0
Life assurance ......................... 55.69
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 You never buy presents?
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
HP ink.................................. 1.99
Total monthly expenses.................. 2439.38

Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 150000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(482.9)....0
Secured Debt.................. 16324.2..(272)......3.251
Hire Purchase (HP) debt ...... 10000....(210.2)....0
Total secured & HP debts...... 136324.2..-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA Card1 (nuba)..............8074.99...81........0
NBNA Card 2....................3102.64...95........0
Total unsecured debts..........11177.63..176.......-

Monthly Budget Summary
Total monthly income.................... 2,474.31
Expenses (including HP & secured debts). 2,439.38
Available for debt repayments........... 34.93
Monthly UNsecured debt repayments....... 176
Amount short for making debt repayments. -141.07

Personal Balance Sheet Summary
Total assets (things you own)........... 150,000
Total HP & Secured debt................. -136,324.2
Total Unsecured debt.................... -11,177.63
Net Assets.............................. 2,498.17

Comments in red.

Thinking about it, those 3 cars, are 2 of those your childrens cars??

EssexHebridean · 27 July 2017 at 3:09PM

Ok - comments in red as usual

nsl101 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.................... 3

Monthly Income Details
Monthly income after tax................ 2179.31
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 295
Total monthly income.................... 2474.31

Monthly Expense Details
Mortgage................................ 482.9
Secured/HP loan repayments.............. 482.19999999999993 Are you duplicating your mortgage payment here or is tit coincidental that your car payment is the same as your mortgage monthly?
Rent.................................... 220 Presumably it's a Shared Ownership property?
Management charge (leasehold property).. 0 If shared ownership are you sure there's no service charge? It would be unusual...
Council tax............................. 98 Single person discount applied? Do you pay over 12 months or the standard 10?
Electricity............................. 25
Gas..................................... 25
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 47.49Does this include TV & Internet as well?
might be worth having a search around and haggling to reduce
Mobile phone............................ 142.27 HOW much? This must be a typo...
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0 Oh I rather think you do spend on this!
:rotfl:
Clothing................................ 0 budget a small amount to cover the essentials even if you don't need anything else new currently.
Petrol/diesel........................... 350
Road tax................................ 20.99 Do you actually pay this monthly?
If so budget to pay 6 monthly or annually to avoid the fee for paying by monthly DD
Car Insurance........................... 105.74 This is three cars I take it so not as high as first appears?
Car maintenance (including MOT)......... 20 For two cars if we're not counting the MM? No - not a chance - this will barely cover two MoT's, never mind servicing, repairs and the sheer amount of depreciation on the mileage you're clearly doing.
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 300 Child support I assume?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15.99 Contents included in this too?
Contents insurance...................... 0
Life assurance ......................... 55.69 Do you need to be paying this?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Bearing in mind you have child related expenses earlier in your SOA I think this is unlikely - you never buy presents for anyone at all?
Haircuts................................ 0 Assume you use clippers and do it yourself?
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 You needs to look to build this as a homeowner - aim to get £1000 in place as a starting level
HP ink.................................. 1.99
Total monthly expenses.................. 2439.38

Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 10000 Bearing in mind the value of the car finance you've mentioned this is a low value to take account of all three
Other assets............................ 0
Total Assets............................ 150000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(482.9)....0
Secured Debt.................. 16324.2..(272)......3.251
Hire Purchase (HP) debt ...... 10000....(210.2)....0
Total secured & HP debts...... 136324.2..-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA Card1 (nuba)..............8074.99...81........0
NBNA Card 2....................3102.64...95........0
Total unsecured debts..........11177.63..176.......-

Monthly Budget Summary
Total monthly income.................... 2,474.31
Expenses (including HP & secured debts). 2,439.38
Available for debt repayments........... 34.93
Monthly UNsecured debt repayments....... 176
Amount short for making debt repayments. -141.07

Personal Balance Sheet Summary
Total assets (things you own)........... 150,000
Total HP & Secured debt................. -136,324.2
Total Unsecured debt.................... -11,177.63
Net Assets.............................. 2,498.17

OK - it doesn't make pretty reading but I suspect there is a way out for you and that the cars may hold the key to this. Bearing in mind your high mileage the running costs are killing you - something needs to give there.

What's included in your PCP deal? Does that include servicing etc? If so that makes some sense of the maintenance figure. I absolutely get you not wanting to get rid of the Moggie - I wouldn't either! I assume that's not costing you much though as it's SORN'd?

What's the current situation with handing the PCP car back? And how does that compare with paying the remaining payments and then handing back? Which of your two working cars gives you the best deal in terms of a combination of road tax/insurance & MPG?

nsl101 · 27 July 2017 at 8:48PM

First things first, thankyou for the feedback, its all valuable.

So I could try and answer questions individually but i think ill do another SOA and clean up the bits i missed,and give some meat around the bones with explanations next to the items that have spawned questions... I think its important to note my office is 97 miles from my home and as such i lodge for 2 days a week near the office, this has caused me some lifestyle issues like i don't do traditional shopping.. these things will have to change..

Yes the amount for secured loans is the same as the mortgage by chance its made up of the PCP and a bank loan..

I'm now going to sit down and work through the SOA again...

I will grab some time over the next few days to talk to my mobile service provider, i think i can reduce the mobile bill by cancelling insurance and haggle with them a bit to reduce the tariffs, this does include my phone and 3 more devices for my children. Also I will call the car finance provider and refresh my data on the terms and real figures of terminating the agreement early, and letting it go to the balloon payment so i can post here the full details and talk through my thinking and make sure that what i thought a year ago is sane or insane lol...

The issue with selling the cheaper car i bought is that its big enough to ferry my DJ kit about which earns me another income.. The one on finance is not really up to what i put the 54 plate c-max through...

The numbers are scary but there not accurate yet however i can do some things to reduce my bills now anyway and this will do something to help... however Id like to get the numbers right so i can show that success lol...

Please bear with me... I promise to get the right numbers soon.. I'm a believer in saying I have done and i will do... rather than id like too... feels more positive to me.. :-)

nsl101 · 27 July 2017 at 8:55PM

i have cancelled Netflix, £7.49 back in my pocket monthly...

£46,000 possibly more debt I want it gone..

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