23 and struggling

missrabbit

Hi,

Last year my OH and I sold our little flat and decided to buy a house together - we figured we'd push ourselves financially on the basis that we'd soon be earning more money. Well since then I've struggled to find full time employment and my money situation has gotten a lot worse. We are now breaking up and I'm having to move cities - luckily I have found some temporary work there for the next 3 months BUT I have just worked out that I am now over £12,000 in debt, and I will only be earning about £15,000 p/a.

I cant believe I have been so stupid to get myself into this situation. I have already started selling things on ebay and cutting back but I wondered if anyone who has been through a similar situation has any words of wisdom or advice for me as right now I am feeling very depressed about the whole thing.

Is it best to consolodate my debts into one monthly payment or continue as I am? I cant get any 0% interest cards as I dont have a steady job so I guess any loan would need to be secured against the house.

Thanks for any advice in advance!

Jess

Horace

Hi Jess and welcome to the forum.

One thing that folks will tell you on here is do not consolidate your debt because they have a habit of snowballing and becoming much bigger. Please post your SOA (statement of affairs) so that we can see where you can save money that can be used towards your debts.

https://www.makesenseofcards.com/soacalc.html

I think there is a button on there that formulates it for MSE.

Try not to stress too much.

Merlot

I echo what Horace says, please do not consolidate, it will matters much worse in the long term.

Pop up an SOA, and we'll will advice you further.

Welcome to the board.

Merlot.x.

missrabbit

Monthly income after tax................ 950
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 950

Monthly Expense Details
Mortgage................................ 500
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 17.5
Gas..................................... 17.5
Oil..................................... 0
Water rates............................. 17.5
Telephone (land line)................... 7.5
Mobile phone............................ 30
TV Licence.............................. 10
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 150
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 41
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 28
Buildings insurance..................... 0 included in mortgage payment
Contents insurance...................... 0 included in mortgage payment
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1236.5

Assets
Cash.................................... 0
House value (Gross)..................... 962500 - oops I put in too many noughts!
Shares and bonds........................ 0
Car(s).................................. 1800
Other assets............................ 0
Total Assets............................ 964300

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 86250....(500)......6
Total secured debts........... 86250.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclays.......................2904......65........0
Sky............................878.......22........17
HSBC...........................853.......22........2.9
House of Fraser................421.08....16.84.....29.3
Karen Millen...................206.48....8.26......24.9
MBNA 2.........................878.......76.77.....15
MBNA 1.........................4091.5....56.36.....24
Total unsecured debts..........10232.06..267.23....-

Monthly Budget Summary
Total monthly income.................... 950
Expenses (including secured debts)....... 1,236.5
Available for debt repayments........... -286.5
Monthly UNsecured debt repayments....... 267.23
Surplus(deficit if negative)............ -553.73

oh dear that doesnt look good. I had to try and work out my earnings as I will be temping and earning £7.85 - turns out this pays a lot less p/a than i thought

Horace

missrabbit

Can you take in a lodger?

I think you need to stop buying clothes as you appear to be spending £150 a month on them, also ditch the entertainment and stop buying presents too at least for the time being. This will free up £230 to chuck at your debts.

It goes without saying stop spending on the cards especially Karen Millen and House of Fraser.

Keep a spending diary - write down everything that you buy eg. the odd newspaper, magazine, lunch, coffee - it all adds up, use that money towards your debts.

To earn some extra money sign up for mystery shopping and paid surveys - join in the make £10 a day August challenge to be found on this board. I would also suggest that you look at the Moneysaving Oldstyle board to look at meal plans and how to shop better e.g. by shopping in places like Lidl (fab food, great cheap prices).

Hope this helps

missrabbit

thanks for the advice Horace - much appreciated!

I am definately going to stop buying clothes- I hadnt realised how much I had been spending until I added it all together for the SOA - it was a real eye opener!

I will check out the August challenge now - thank you so much for your help : )

RAS

Hi

Is £500 your half share of the mortgage payment or the whole lot?

Whatever, how are you and OH sorting out the house?

Unless the mortgage is tied to the insurance, you will almost certainly be better off buying it from another supplier, so can you unpack that payment?

Do you absolutely need the car?

And if you are moving to another city, where are you going to live?

missrabbit

£500 is just my share : (

I'm going to be sleeping on my Mums sofa in her one bed flat until we can find someone to rent out the spare room in our house. i'll then need to find some where to stay for me and the dog - hopefully paying a little less than i am on my mortgage.

its a good idea about selling off the car but I will have to wait until I've moved as i dont fancy lugging all my boxes by train etc.

thanks for your help : )

RAS

missrabbit wrote: »

£500 is just my share : (

I'm going to be sleeping on my Mums sofa in her one bed flat until we can find someone to rent out the spare room in our house. i'll then need to find some where to stay for me and the dog - hopefully paying a little less than i am on my mortgage.

its a good idea about selling off the car but I will have to wait until I've moved as i dont fancy lugging all my boxes by train etc.

Hi I think you need to get some legal advice re your situation regarding the house. It may be better to sell it and get a clean break rather then be tied into your exs credit history long term. It may however be hard to achieve this unless you made an arrangement before you bought the place together.

That would make a huge difference to your situation.

And plainly once you get to your new city, you need to really tackle the job hunt as you need to increase your earnings. Check the boost your income section here, put anything that you do not need on e-bay, amazon or do a car boot before you get rid of it. Do not be tempted just to leave stuff with your ex becuae it is potential money to clear you debt.

You really really are going to have to get that Budget in balance if you are going to keep this situation under control.

Does your ex realise that if your credit rating is damaged it will screw his up as well?