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  • FIRST POST
    • lincs1205
    • By lincs1205 12th Apr 17, 6:18 PM
    • 291Posts
    • 775Thanks
    lincs1205
    In deep, but determined to get out of this mess we've gotten ourselves into finally
    • #1
    • 12th Apr 17, 6:18 PM
    In deep, but determined to get out of this mess we've gotten ourselves into finally 12th Apr 17 at 6:18 PM
    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.................... 1

    Monthly Income Details

    Monthly income after tax................ 2200 - This will be dropping to 1500 or around there from may
    Partners monthly income after tax....... 1300
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3500


    Monthly Expense Details

    Mortgage................................ 763.3- this may drop to 613.36 pending on re-mortgage
    Secured/HP loan repayments.............. 300.29999999999995
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 121
    Electricity............................. 45.5
    Gas..................................... 45.5
    Oil..................................... 0
    Water rates............................. 20.5
    Telephone (land line)................... 18
    Mobile phone............................ 80
    TV Licence.............................. 12
    Satellite/Cable TV...................... 76-this is going when contract expires in may this year
    Internet Services....................... 0
    Groceries etc. ......................... 150
    Clothing................................ 0
    Petrol/diesel........................... 55
    Road tax................................ 20
    Car Insurance........................... 21
    Car maintenance (including MOT)......... 0
    Car parking............................. 15
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 27.95
    Buildings insurance..................... 20.91
    Contents insurance...................... 16
    Life assurance ......................... 66.16
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    Haircuts................................ 20
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1934.12



    Assets

    Cash.................................... 0
    House value (Gross)..................... 207000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 207000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 107000...(763.3)....5.9
    Hire Purchase (HP) debt ...... 1600.....(300.3)....5.9
    Total secured & HP debts...... 108600....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    mbna...........................2665......25....... .0
    virgin.........................4979.36...52.9..... .0
    mbna...........................9302.58...77.9..... .0
    argos..........................3132.16...101.3.... .29
    virgin.........................7229.26...73.2..... .0
    Total unsecured debts..........27308.36..330.3.....-



    Monthly Budget Summary

    Total monthly income.................... 3,500
    Expenses (including HP & secured debts). 1,934.12
    Available for debt repayments........... 1,565.88
    Monthly UNsecured debt repayments....... 330.3
    Amount left after debt repayments....... 1,235.58


    Personal Balance Sheet Summary
    Total assets (things you own)........... 207,000
    Total HP & Secured debt................. -108,600
    Total Unsecured debt.................... -27,308.36
    Net Assets.............................. 71,091.64


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
Page 1
    • lincs1205
    • By lincs1205 12th Apr 17, 6:24 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    • #2
    • 12th Apr 17, 6:24 PM
    • #2
    • 12th Apr 17, 6:24 PM
    To explain the above soa we are currently going through the re-mortgaging process however until all the i's are dotted and the t's are crossed i'm not counting my chickens which is why i've kept the mortgage amount at the amount we are currently paying. My wages will be dropping substantially from the end of april as i'm going back to the world of clinical nursing, if i'd known then that we would need a new roof my decision would have been different. However the time has passed and i need to pull up my big girl pants and get on with it. We are both agreed that we need to tighten our belts and develop a strict budget in order to pay our credit cards off and then start over-paying the mortgage as we do not want to be paying our mortgage until we are both in our sixties. Many thanks for any advice offered.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • Bobarella
    • By Bobarella 12th Apr 17, 9:10 PM
    • 10,623 Posts
    • 68,535 Thanks
    Bobarella
    • #3
    • 12th Apr 17, 9:10 PM
    • #3
    • 12th Apr 17, 9:10 PM
    Good luck with your repayments Lincs
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £54.82 2016-£62.28 2015- £84.20)
    RYSAW17 £1855 2016 £2,535.16 2015 £1027.20
    • lincs1205
    • By lincs1205 12th Apr 17, 9:29 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    • #4
    • 12th Apr 17, 9:29 PM
    • #4
    • 12th Apr 17, 9:29 PM
    Thanks Bobarella. Just want to get on with it now.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • lincs1205
    • By lincs1205 13th Apr 17, 2:53 AM
    • 291 Posts
    • 775 Thanks
    lincs1205
    • #5
    • 13th Apr 17, 2:53 AM
    • #5
    • 13th Apr 17, 2:53 AM
    Morning Diary, currently wide awake unable to sleep. Woke up and saw that Dh has sent me a txt (he works permanent nights) to say that he does not feel comfortable to go any further with regards to the remortgage. We received the mortgage offer an illustration yesterday which gives us a 10 day reflection period and on reflection we have decided not to proceed mainly due to the fact that currently our mortgage finishes when hes 58 and i'm 54. Now I know the roof needs doing however our neighbours are in the same boat. Anyway we'll have a further discussion when he finishes in the morning.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • enthusiasticsaver
    • By enthusiasticsaver 13th Apr 17, 8:39 AM
    • 3,553 Posts
    • 6,207 Thanks
    enthusiasticsaver
    • #6
    • 13th Apr 17, 8:39 AM
    • #6
    • 13th Apr 17, 8:39 AM
    If your wages are dropping by £700 per month and you have that level of debt then how will you pay for the roof? Is the remortgage to go on a lower rate?

    I am not sure I understand your DHs reluctance to remortgage on to lower rate because of age. If you keep your mortgage at that level and your wages drop then clearing the debt, let alone the mortgage will take longer. How old are you now?

    How did you build up that debt on credit cards? You need to move the Argos one or throw all spare income at that.
    Debt and mortgage free and saving for early retirement
    • lincs1205
    • By lincs1205 13th Apr 17, 2:45 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    • #7
    • 13th Apr 17, 2:45 PM
    • #7
    • 13th Apr 17, 2:45 PM
    Hi enthusiastic saver, in response to your 1st question the £1500 is worst case scenario but I understand where you are coming from and appreciate the comment, I will have the facility to pick up overtime and I will be doing so. The remortgage would have been going onto a lower rate yes but currently we only have 14 years left to pay on it but if we had gone ahead with the remortgage it would have extended it by another nine years thereby paying it until he was 66 and I was 62, currently I am 38 shortly turning 39 and he is 43. In response to your final question the debt was built up by lending parents in law money, paying for a new fence, in general poor financial planning. As for the roof we are going to get someone to come out and see if they can put a cover over it we have the appropriate funds to pay for it.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • NewMeNewLife
    • By NewMeNewLife 13th Apr 17, 3:21 PM
    • 185 Posts
    • 373 Thanks
    NewMeNewLife
    • #8
    • 13th Apr 17, 3:21 PM
    • #8
    • 13th Apr 17, 3:21 PM
    Hi Lincs

    Just popping in to say good luck, and I'll stop by to see how you're doing.
    Debt Free Date= Dec 2017.
    Mortgage Free Date = Jan 2039.
    • lincs1205
    • By lincs1205 13th Apr 17, 3:46 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    • #9
    • 13th Apr 17, 3:46 PM
    • #9
    • 13th Apr 17, 3:46 PM
    Hi NewmeNewLife ,

    Thankyou for popping along to say hi it's much appreciated.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • natsplatnat
    • By natsplatnat 13th Apr 17, 5:53 PM
    • 2,555 Posts
    • 2,223 Thanks
    natsplatnat
    Could you not go for the re-mortgage, freeing up around £150 a month to throw at your debts and then when they are cleared use the £150 to overpay your mortgage and bring the term back down?
    • lincs1205
    • By lincs1205 13th Apr 17, 6:07 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    Hi natsplatnat, many thanks for your comment. We have seriously looked at the options but to be honest the longer this has dragged on with regards to this whole process the more stressed and disheartened we have got, we originally only wanted the 10k for the roof but as my husband wanted to add me onto the mortgage we were advised to apply for a complete remortgage. Originally we were offered a term of 15years which then went to 19 years and then finally 23 years at this point we were both completely overwhelmed. We received the mortgage offer yesterday with a ten day cooling off period today being day 3, this morning we rang both the solicitor who was handling the case to advise that we did not want to continue to be advised that he was not in today as he was ill, we then rang and emailed our broker to then be advised that he is not back in the office until next Tuesday. We accept that we need a new roof however due to the fact that I am moving to a new job at the beginning of may we need to further throw any spare money at our current debts and then hope to revisit the roof toward the end of the year. I know not everyone will understand why we've done what we have but we have done it for our own reasons.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • worriedDan
    • By worriedDan 13th Apr 17, 6:36 PM
    • 168 Posts
    • 480 Thanks
    worriedDan
    Hi, Well done for posting! It's a big step to admit that you need help and advice. I was where you are a few months ago.

    Can I ask, do you actually have the £1200 left after debt repayments?
    • lincs1205
    • By lincs1205 13th Apr 17, 6:55 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    Hi WorriedDan, many thanks for saying hi yes it is very daunting. In order to your question no we don't have that amount left so goodness knows where it goes. We had £450 left in our joint account hubby got paid today. I've downloaded Santander's spendlytics app so I can try and track where its going.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • worriedDan
    • By worriedDan 13th Apr 17, 7:45 PM
    • 168 Posts
    • 480 Thanks
    worriedDan
    Hi WorriedDan, many thanks for saying hi yes it is very daunting. In order to your question no we don't have that amount left so goodness knows where it goes. We had £450 left in our joint account hubby got paid today. I've downloaded Santander's spendlytics app so I can try and track where its going.
    Originally posted by lincs1205
    Well the fact that you have £450 left is definitely a positive! When I first did my SOA we were supposed to have £1800 per month leftover. Like you, we didn't really know where the bulk of that money was going. Now we are following a budget and we can see where every penny goes. It has also made us identify areas where we can make easy savings. I am sure that this will be the same for you too.

    Our debt were far worse than yours at the start of journey (57k!) and I thought that there was no way out. In just a few months things feel so much better. You are totally in a position to fix this. You are not in debt crisis and you have a surplus left each month. I wish you the best on your journey
    • lincs1205
    • By lincs1205 13th Apr 17, 9:33 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    Thank you so much for your comments worrieddan, I know that we can get out of this mess with some hard work and determination. I'm at work all weekend from Friday through to Monday morning so won't be spending much. Although its my brothers birthday next week so need to get his birthday present.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • lincs1205
    • By lincs1205 13th Apr 17, 9:59 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    Turns out we made the right decision choosing not to go ahead with the remortgage as I received a call from the mortgage company telling me that they had received the references back from my current employer and they had told them I was leaving at the end of the month, it was at this point that I butted in and said we have already decided not to go ahead with the remortgage but nothing had been put on our file apparently. Oh and this evening in have bust the screen on my phone so will now need to wait until I can justify getting it fixed as it is still usable if a bit slow oh well my fault.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
    • JoJoC
    • By JoJoC 14th Apr 17, 10:07 AM
    • 941 Posts
    • 2,898 Thanks
    JoJoC
    Hi there, just stopping by to offer support and say welcome.

    Once you get your head round what you spend and where your money goes, it'll be a lot easier to be in control.

    It's your mortgage and your decision - you know that you'll need your roof done whether it's done now or later in the year so don't rush into anything you're not comfortable with. As long as there's not water pouring through your ceiling then I'm sure you have time to decide the best way forward!

    WRT the mortgage, our mortgage is at 33 years currently. I'm 30 next year and definitely don't want to be paying it into my 60s. However, our broker advised that we should take a mortgage that we can afford right now as we are at the most expensive time in our lives (two kids, two properties...etc) and once the kids are at school and our childcare drops from £1300 per month to £300p/m then we can overpay to drop the term. I'm not concerned, but then I do have age on my side.

    I'd like to have my mortgage paid off my my 50th so we have 13 years to shave off. I'm confident we'll be able to do it!
    CC1: 3,741/4,200 | CC2: 5,129/5,393 | Loan: 7,430/15,000
    Total: 16,300/20,032 Paid since Feb17: 3,732 or 18%

    Mummy of two boys - Working hard to make better financial choices!
    *My debt busting and savings diary*
    • enthusiasticsaver
    • By enthusiasticsaver 14th Apr 17, 10:36 AM
    • 3,553 Posts
    • 6,207 Thanks
    enthusiasticsaver
    Tracking your spending is a good idea. It is a bit worrying you are that much in debt and will be taking such a massive drop in income. Have you now stopped spending on credit cards and has the debt come down at all? Just making minimum payments will not cover even the interest unless they are all on 0%. I think in your circumstances I would be tempted to extend the term of your mortgage for a couple of years to allow you to get on top of the unsecured debt and fix the roof. You can always put the term back once you have sorted that and overpay to get back to clearing it well before you are 60. Stopping that unsecured lending rising any further though is critical now.
    Debt and mortgage free and saving for early retirement
    • enthusiasticsaver
    • By enthusiasticsaver 14th Apr 17, 10:49 AM
    • 3,553 Posts
    • 6,207 Thanks
    enthusiasticsaver
    Hi there, just stopping by to offer support and say welcome.

    Once you get your head round what you spend and where your money goes, it'll be a lot easier to be in control.

    It's your mortgage and your decision - you know that you'll need your roof done whether it's done now or later in the year so don't rush into anything you're not comfortable with. As long as there's not water pouring through your ceiling then I'm sure you have time to decide the best way forward!

    WRT the mortgage, our mortgage is at 33 years currently. I'm 30 next year and definitely don't want to be paying it into my 60s. However, our broker advised that we should take a mortgage that we can afford right now as we are at the most expensive time in our lives (two kids, two properties...etc) and once the kids are at school and our childcare drops from £1300 per month to £300p/m then we can overpay to drop the term. I'm not concerned, but then I do have age on my side.

    I'd like to have my mortgage paid off my my 50th so we have 13 years to shave off. I'm confident we'll be able to do it!
    Originally posted by JoJoC
    You need to do what is best for you at certain times of your life. Both my daughters have taken out long term mortgages (30 years I think). One because she has a baby so has childcare costs and also dropped to part time and the other because she doesn't have a partner and lives in an expensive part of the country. I have advised them to budget for affordability first and foremost and concentrate in the early years on not having any other debt (credit cards) and building up emergency savings buffer and once they start getting pay rises and as outgoings decrease then try and overpay to bring the term down. As you say when you are young you have age on your side and with low mortgage rates it is not as critical to clear it quickly as it was when rates were 12-15%. Don't forget your pension too as starting a pension young maximises potential for growth.
    Debt and mortgage free and saving for early retirement
    • lincs1205
    • By lincs1205 18th Apr 17, 6:02 PM
    • 291 Posts
    • 775 Thanks
    lincs1205
    Finally able to get back on the forums after somehow locking myself out plus being on nights all over easter weekend, however being paid at time and a half which is good seeing as wages will be dropping in may.

    I have also developed a plan but it is a work in progress so please bare with me:
    1)Today i have ordered and been accepted for a pre-paid debit card £5.95 for the card but then it is free, my plan is that when i get paid i am going to transfer a sum of money onto that card which will then last me the month. This will pay for parking at work, and any other sundries i am not planning on buying anything and it looks like may is going to be a pretty full on month anyway.
    2) Batch cook
    3) Take pack-ups into work - Hubby has already brought me some bits and pieces which will also last me through to the end of my current job.
    4) Cancel Sky ( Amazon fire tv router thingy bought today)
    5) No more takeaways
    6) Continue to save £5 notes and £2 coins, £70 and £10 already saved
    7) If i want any beauty treatments, massages etc, go to the college instead as it is literally on my doorstep. Bit nervous about getting my hair done there though (anyone had any previous experience of college hairdressing salons)
    8) Actually think before i buy anything can i afford it, do i need it or do i just want it.
    9) Start an emergency fund
    10) Put money away for quarterly and yearly bills such as my NMC registration, Water bills
    11) Start saving for christmas and birthdays.
    MBNA 0% ends 08/09/17 £2665.95 - Mine
    Virgin 0% ends 09/06/19 £ 4979.36 - Mine
    MBNA 0% ends 12/03/18 £9302.38 - His
    Virgin 0% ends 17/7/19 £ 7229.26 - His
    Argos 29% £3132.16 - His
    So final figure including the store card is £27,309.31
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