Advice wanted 30k unsecured debt

dk250 · 21 August 2016 at 8:53PM

Good evening all.

Basically feel like I'm getting into bigger mess each month

Current unsecured debt

Tesco 20k loan £440 a month until Jan 2021
Mbna credit card 6.8 k 0% until April 2017 £85 a month min payment
Tesco credit card 3k 0% until Dec 2017 £31 a month min payment

New build house moved in Feb 2016 borrowed off family for deposit but some needed it back hence the loan . £176k mortgage at £705 a month house bought at £232k

Salary me - 40k
Partner -'19.5k

Spare money after all direct debits and bills £200 approx

No missed payments just feel I need to sort now before escalates to missed payments etc

Thanks

dk250 · 21 August 2016 at 9:15PM

Statement of affairs

b]

Household Information[/b]
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2

Monthly Income Details[/b]
Monthly income after tax................ 2300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 400
Total monthly income.................... 2700

Monthly Expense Details[/b]
Mortgage................................ 705
Secured/HP loan repayments.............. 243
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 167
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 51
Internet Services....................... 25
Groceries etc. ......................... 0
Clothing................................ 25
Petrol/diesel........................... 100
Road tax................................ 20
Car Insurance........................... 55
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 30
Buildings insurance..................... 15
Contents insurance...................... 0
Life assurance ......................... 55
Other insurance......................... 45
Presents (birthday, christmas etc)......25
Haircuts................................ 10
Entertainment........................... 25
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1758

Assets
Cash.................................... 0
House value (Gross)..................... 232000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 232000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 175000...(705)......2.29
Hire Purchase (HP) debt ...... 22000....(243)......6.3
Total secured & HP debts...... 197000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan ....................23000.....447.......7.1
Mbna ..........................6800......85........0
Tesco..........................3000......31........0
Total unsecured debts..........32800.....563.......-

Monthly Budget Summary
Total monthly income.................... 2,700
Expenses (including HP & secured debts). 1,758
Available for debt repayments........... 942
Monthly UNsecured debt repayments....... 563
Amount left after debt repayments....... 379

Personal Balance Sheet Summary
Total assets (things you own)........... 232,000
Total HP & Secured debt................. -197,000
Total Unsecured debt.................... -32,800
Net Assets.............................. 2,200

DCFC79 · 21 August 2016 at 9:28PM

Do you feel you have the spare money left each month ?

So your paying £76 a month for tv and Internet ?

That's alot of money, do you watch much tv ? You considered a Now tv box or Amazon fire stick, Roku box or netflix ?

You have 0 for groceries, did you forgot to enter it ?

Drive less, could you both car share with a work colleague ?

Is the £30 for the mobile for 1 contract or 2 ? Are they ending soon, move to sim only.

~Beanie~ · 21 August 2016 at 9:31PM

It looks to me like there are a few things missing from your SOA.

Why is there no amount listed against your partners income?
Why no figure for groceries, don't you eat?
No contents insurance?
Never buy any christmas/birthday presents?

You have listed £50pm for Holidays. Is this already booked or can you not go on holiday and use this £50 elsewhere?

dk250 · 22 August 2016 at 11:14AM

Sorry should have explained further . These are my debts , my partner does have an income but I need to sort these on my own. She sends £400 monthly listed in other income and she buys the food.

Sky tv is £52 a month stuck in 12 month contract
Virgin internet is £25 again 12 month contract

Holiday booked for next September hence £50 pm commitment

Mobile is £30 until May 2017

We both need cars for work - my car is a pcp £243 a month until next September - to change now would cost me £1.5k in negative equity

dktreesea · 22 August 2016 at 11:31AM

As long as your job is secure, all that looks pretty good to me. I think though, you may feel a bit better if you started putting money away in an emergency fund, even if only £20 a week.

The Tesco loan, from what you said, is really to fund your property, i.e. the deposit part you paid back? So only the MBNA and Tesco credit card balances fall into the overspending category imho. Have you had a look at what you are spending on your credit cards, given it represents money you didn't actually have to spend?

If it turns out to be stuff you needed when you moved into your home, well, they are going to be one off items for quite a while. If that were me, for the moment I would be giving half the £379 amount left after debt repayments to myself for fun money and put the other £40 or so a week into an emergency fund.

cms-help · 22 August 2016 at 6:57PM

Would your partner not be prepared to "pool" your incomes, even temporarily, to repay the debts faster? Thus improving the quality of life for both of you overall?

I haven't done any calculations but you seem to be responsible for all the household expenses with a £400 contribution from your partner at the moment.

enthusiasticsaver · 22 August 2016 at 10:15PM

If the loan was for the property deposit how come your partner is not contributing more? Does that mean she/he pays £400 plus food for 2 of you and keeps the rest for herself? Do you really have £380 spare each month or is the soa an aim rather than reality? Obviously you are overcommitted debt wise but the credit cards are on 0% so if you make a concerted effort it can be cleared but that means getting rid of the cards and cutting back to the bone on expenses. I would be cancelling the cable and seeing if you can get cheaper life assurance. £55 sounds high unless you have health issues or are older. I also think you need to be talking yo your partner as to why these are just your debts if 2/3 of them are for a deposit for a property you both live in.

I am surprised by the way that you got a mortgage if the deposit was a family loan. We gifted money to our daughters towards their deposits on their first homes and had to write a letter to say we did not want it to be repaid.

dk250 · 23 August 2016 at 1:03PM

Yes she sends me £400 a month as the contribution towards all household related bills and also buys the shopping. Her salary is much lower than mine. As these debts are in my name its upto me to pay them off - the money for the deposit was made up of our own savings and gifted from family. However we have had to pay it back due to a change in circumstances pretty quickly which is why the 20k loan With tesco was taken out after we had our mortgage approved .

I accept there has been some on off purchases etc and have already taken steps to move £200 a month into another current account which is my way of budgeting - that money is for me to spend on any purchases I may need and things like , gym , football matches or an occasional meal or night out.

I think since we have moved in February things have just been bought as deemded necessary . Although I make every payment on time the thought of 30k hanging around my neck is worrying and i just would like to pay it off as quickly as I can but also realistically .

cms-help · 23 August 2016 at 2:07PM

dk250 wrote: »

Yes she sends me £400 a month as the contribution towards all household related bills and also buys the shopping. Her salary is much lower than mine. As these debts are in my name its upto me to pay them off - the money for the deposit was made up of our own savings and gifted from family. However we have had to pay it back due to a change in circumstances pretty quickly which is why the 20k loan With tesco was taken out after we had our mortgage approved .

I accept there has been some on off purchases etc and have already taken steps to move £200 a month into another current account which is my way of budgeting - that money is for me to spend on any purchases I may need and things like , gym , football matches or an occasional meal or night out.

I think since we have moved in February things have just been bought as deemded necessary . Although I make every payment on time the thought of 30k hanging around my neck is worrying and i just would like to pay it off as quickly as I can but also realistically .

This is going to sound harsh but because the house deposit debt is in your name then it's up to you to repay it without her support? Is that how your partner views this loan you have?

glentoran99 · 23 August 2016 at 4:15PM

You can cancel virgin penalty free as its going up in price

http://www.moneysavingexpert.com/news/broadband/2016/08/virgin-media-to-hit-customers-with-price-hikes-of-up-to-42-year?_ga=1.58739306.610408002.1428485145

Advice wanted 30k unsecured debt

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