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  • FIRST POST
    • Host25
    • By Host25 12th Jan 18, 2:51 PM
    • 5Posts
    • 1Thanks
    Host25
    30k debt and no idea where to start!
    • #1
    • 12th Jan 18, 2:51 PM
    30k debt and no idea where to start! 12th Jan 18 at 2:51 PM
    Hi guys,
    Ok I've been reading through this forum and am really hoping someone can help me. I split up from my husband 6 months ago and am now really struggling to sort myself out.
    I have a loan of just under 11k and 2 credit cards of 8500 and my bank account is at its max overdraft of 4k
    I take home an average of 1700 a month and i now have a second job which I can earn 200 month more sometimes more but not guaranteed.
    I have a property which is rented out and i am still on my husband's mortgage so when I tried to get a loan to cover everything and reduce my monthly outgoings I was refused due to being on 2 mortgages even though I don't pay either.
    My rent is 780 all inc and the loan at the moment is 450 i also have fuel for going ronwork and back of about 250 and i am trying to pay the credit cards aswell but it's just not possible at the moment to live aswell.
    I really don't know where to start so any advice or tips would be very gratefully received.
    Last edited by Host25; 12-01-2018 at 10:09 PM. Reason: Need to remove name
Page 1
    • fatbelly
    • By fatbelly 12th Jan 18, 4:09 PM
    • 11,782 Posts
    • 8,875 Thanks
    fatbelly
    • #2
    • 12th Jan 18, 4:09 PM
    • #2
    • 12th Jan 18, 4:09 PM
    If you could do a statement of affairs that would really help

    http://www.stoozing.com/calculator/soa.php

    is a calculator - please 'format for mse'

    You might want to go back to your first post, press edit and delete your name unless that is already a pseudonym.

    I assume when you say you don't pay either mortgage that is because one relates to where your husband lives and he covers it, and the other is covered by rental income. You might need to explain a bit more about that second property if the soa doesn't make it clear.

    And a consolidation loan was probably not the way forward.
    • lotteryman
    • By lotteryman 12th Jan 18, 4:42 PM
    • 37 Posts
    • 34 Thanks
    lotteryman
    • #3
    • 12th Jan 18, 4:42 PM
    • #3
    • 12th Jan 18, 4:42 PM
    Go and talk to a debt help line/debt charity as they will give you free advice.

    Look on line at stepchange.org or www.nationaldebtline.org/ which are government sponsored.
    • theroamingnomad
    • By theroamingnomad 12th Jan 18, 10:20 PM
    • 85 Posts
    • 89 Thanks
    theroamingnomad
    • #4
    • 12th Jan 18, 10:20 PM
    • #4
    • 12th Jan 18, 10:20 PM
    Good luck with getting your SOA together
    Debt-free by August 1st, 2018 - hopefully!
    £4945.54/£5124 - as of 18/01/18
    • NewcastlePaul
    • By NewcastlePaul 12th Jan 18, 10:52 PM
    • 142 Posts
    • 330 Thanks
    NewcastlePaul
    • #5
    • 12th Jan 18, 10:52 PM
    • #5
    • 12th Jan 18, 10:52 PM
    Good luck.
    It's daunting at first but you will get there.
    31st December 2004 - Debt was £128,596.72
    1st October 2016 - Debt Free
    12 years of Stepchange + PPI +F&F
    http://forums.moneysavingexpert.com/showthread.php?t=4862915
    • enjoyyourshoes
    • By enjoyyourshoes 13th Jan 18, 11:00 AM
    • 934 Posts
    • 1,150 Thanks
    enjoyyourshoes
    • #6
    • 13th Jan 18, 11:00 AM
    • #6
    • 13th Jan 18, 11:00 AM
    You have an asset, have you considered selling this?

    Or move tenants out and you move in?

    Need to stop the spending, assuming the debts have not materialised over the 6 months you have separated?

    Work out NEEDS and WANTS and stop spending on all WANTS, this will be hard
    Debt is a symptom, solve the problem.
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jan 18, 2:05 PM
    • 5,161 Posts
    • 9,809 Thanks
    enthusiasticsaver
    • #7
    • 13th Jan 18, 2:05 PM
    • #7
    • 13th Jan 18, 2:05 PM
    First of all further borrowing to repay debt (consolidate) usually makes debt problems worse so it is good you cannot get any more loans. Filling out an soa is a good first step. If you rent out a property why do you then pay out rent to live somewhere else? Are they not in the same area? If it makes more financial sense for you to live in the property you rent out currently when does the current lease expire and are you able to give notice to your tenants?

    Technically if there is a mortgage on your rented property you are responsible for it even though you have tenants there at the moment which presumably cover the rent. You are also liable for the mortgage on your former home should your husband fall into arrears or stop paying for it. What is the plan re this and is your husband able to take it over on his own? Are you entitled to any equity from it?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Host25
    • By Host25 13th Jan 18, 3:59 PM
    • 5 Posts
    • 1 Thanks
    Host25
    • #8
    • 13th Jan 18, 3:59 PM
    • #8
    • 13th Jan 18, 3:59 PM
    Thanks everyone I am currently trying to do the soa but it's very confusing! Do I need to out the monthly amounts in the boxes or car insurance or the yearly amount ? I pay contents insurance yearly but car insurance monthly.
    No these debts haven't racked up over 6 months but I've had some big expenses like a 3k car bill which hasn't helped and deposit for rental place. They started with renovations for the property I bought and did up and then when i bought with husband and we decorated and did up.
    I brought the place I'm renting out as a retirement fund for later on in life and the rent covers the mortgage and service charge with £100 pounds over for emergency fund for there and it wouldn't be practical for me to live there which is why I don't as I looked into it but would end up costing more than where I am now and even if I sold it with solicitors fees and all in would only end up with about 5k profit so better off keeping it and struggling on.
    My husband is changing the mortgage over later on this year but until then I am stuck financially.
    I hope this answers the questions so far I will keep plodding on with soa.
    I have signed up to all sorts of couponing ideas to save money to try really hard.
    Thanks again for tips and advice.
    • fatbelly
    • By fatbelly 13th Jan 18, 4:30 PM
    • 11,782 Posts
    • 8,875 Thanks
    fatbelly
    • #9
    • 13th Jan 18, 4:30 PM
    • #9
    • 13th Jan 18, 4:30 PM
    Thanks everyone I am currently trying to do the soa but it's very confusing! Do I need to out the monthly amounts in the boxes or car insurance or the yearly amount ? I pay contents insurance yearly but car insurance monthly.
    Originally posted by Host25
    Do everything as a monthly equivalent. That's pretty straightforward to convert a yearly, or quarterly payment but remember there are more than 4 weeks in a month so if you have anything weekly - multiply by 52/12 and use a calculator!
    • enjoyyourshoes
    • By enjoyyourshoes 13th Jan 18, 4:41 PM
    • 934 Posts
    • 1,150 Thanks
    enjoyyourshoes
    rent is 46% net income.

    This seems high, approx 30-40% inc utilities would make things manageable.

    Again could you not live in the house you have purchased for retirement purposes?
    Debt is a symptom, solve the problem.
    • Host25
    • By Host25 13th Jan 18, 4:59 PM
    • 5 Posts
    • 1 Thanks
    Host25
    courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household.........
    Number of cars owned....................

    Monthly Income Details

    Monthly income after tax................ 1700
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1700


    Monthly Expense Details

    Mortgage................................ 344.9
    Secured/HP loan repayments.............. 0
    Rent.................................... 700
    Management charge (leasehold property).. 0
    Council tax............................. 85
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 45
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 80
    Clothing................................ 10
    Petrol/diesel........................... 250
    Road tax................................ 15
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 100
    Contents insurance...................... 7
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 2
    Entertainment........................... 30
    Holiday................................. 25
    Emergency fund.......................... 50
    Total monthly expenses.................. 1835.9



    Assets

    Cash.................................... 0
    House value (Gross)..................... 100000
    Shares and bonds........................ 0
    Car(s).................................. 3000
    Other assets............................ 0
    Total Assets............................ 103000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 76375.6..(344.9)....1.99
    Total secured & HP debts...... 76375.6...-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Tesco credit card..............8714.99...170.......16.62
    Barclaycard....................8042.32...150...... .18.9
    Overdraft......................4300......0........ .0
    Total unsecured debts..........21057.31..320.......-



    Monthly Budget Summary

    Total monthly income.................... 1,700
    Expenses (including HP & secured debts). 1,835.9
    Available for debt repayments........... -135.9
    Monthly UNsecured debt repayments....... 320
    Amount short for making debt repayments. -455.9


    Personal Balance Sheet Summary
    Total assets (things you own)........... 103,000
    Total HP & Secured debt................. -76,375.6
    Total Unsecured debt.................... -21,057.31
    Net Assets.............................. 5,567.09


    [i]Created using the SOA calculator
    Reproduced on Moneysavingexpert with permission, us

    I do do a second job and get another 200 pounds a month most months but itís not guaranteed so I didnít include it other than that I think this is it.

    I canít live in the flat I rent out as I would end up paying for parking and driving a lot further and add even more to my fuel bill each month. I am looking for cheaper accommodation in June when my contract is up but I only pay 700 all inc bar council insurance I disintegrated think that was that bad ?
    Thanks again.
    • theoretica
    • By theoretica 13th Jan 18, 8:05 PM
    • 4,990 Posts
    • 6,248 Thanks
    theoretica
    £1200 a year building insurance? Shop around to see if you can drop that.

    Is the rent you get for your property included in your income? I think it would be clearer if you separated out the rental property from your own living costs.

    Any likelihood of moving somewhere that would cut your petrol bills?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • Host25
    • By Host25 13th Jan 18, 11:37 PM
    • 5 Posts
    • 1 Thanks
    Host25
    Hi the 1200 is for all the service charges on rental property by management company as they include buildings insurance and thought it best place to put it, and nope stupidly I didn't include the rental income at all I forgot to include it i never think of it as income as it pays the rent and service with a litrle for emergency fund for rental property sorry .
    • Host25
    • By Host25 14th Jan 18, 12:02 AM
    • 5 Posts
    • 1 Thanks
    Host25
    r new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household.........
    Number of cars owned....................

    Monthly Income Details

    Monthly income after tax................ 1700
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 550
    Total monthly income.................... 2250


    Monthly Expense Details

    Mortgage................................ 344.9
    Secured/HP loan repayments.............. 0
    Rent.................................... 700
    Management charge (leasehold property).. 0
    Council tax............................. 85
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 45
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 80
    Clothing................................ 10
    Petrol/diesel........................... 250
    Road tax................................ 15
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 100
    Contents insurance...................... 7
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 2
    Entertainment........................... 30
    Holiday................................. 25
    Emergency fund.......................... 50
    Total monthly expenses.................. 1835.9



    Assets

    Cash.................................... 0
    House value (Gross)..................... 100000
    Shares and bonds........................ 0
    Car(s).................................. 3000
    Other assets............................ 0
    Total Assets............................ 103000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 76375.6..(344.9)....1.99
    Total secured & HP debts...... 76375.6...-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Tesco credit card..............8714.99...170.......16.62
    Barclaycard....................8042.32...150...... .18.9
    Overdraft......................4300......0........ .0
    Total unsecured debts..........21057.31..320.......-



    Monthly Budget Summary

    Total monthly income.................... 2,250
    Expenses (including HP & secured debts). 1,835.9
    Available for debt repayments........... 414.1
    Monthly UNsecured debt repayments....... 320
    Amount left after debt repayments....... 94.1


    Personal Balance Sheet Summary
    Total assets (things you own)........... 103,000
    Total HP & Secured debt................. -76,375.6
    Total Unsecured debt.................... -21,057.31
    Net Assets.............................. 5,567.09




    Here is the revised SOA.

    I will obviously try and reduce some of the outgoings such as fuel and food shopping but how do I deal with the loan and credit cards what is the best solution to try and start paying them off ? Itís just too much to deal with all together at the moment which was why I was looking at getting 1 loan with 1 smaller payment. I have also started writing down everything I buy and checking whether I actually need it to drastically cut costs straight away.
    • enthusiasticsaver
    • By enthusiasticsaver 14th Jan 18, 12:47 AM
    • 5,161 Posts
    • 9,809 Thanks
    enthusiasticsaver
    Your soa has very little room to cut back due to your relatively high rent for your income and high fuel charges. To repay those debts will mean you will have to get a second job or sell your rental property and use the equity to pay the majority of the cards off. Will you be entitled to any equity of your joint property with your ex?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • fatbelly
    • By fatbelly 14th Jan 18, 7:55 AM
    • 11,782 Posts
    • 8,875 Thanks
    fatbelly
    You are clearly solvent in that (1) your assets exceed your debts and (2) you can afford to pay your bills as they fall due.

    So this is about killing off interest as far as possible so that your payments bring down your debts.

    Have you read these?

    https://www.moneysavingexpert.com/banking/cut-overdraft-costs

    https://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

    https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards
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