BritPilot flying to debtfree heaven

BritPilot

Help - I have amassed this huge debt and need a lot of help.

Please feel free to rip this apart and I will be eternally grateful.

Thank you so much!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 3333
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3333

Monthly Expense Details
Mortgage................................ 1731.6
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 90
Gas..................................... 49
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 19
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 38
Internet Services....................... 0
Groceries etc. ......................... 433
Clothing................................ 167
Petrol/diesel........................... 160
Road tax................................ 23
Car Insurance........................... 52
Car maintenance (including MOT)......... 20
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 94
Pet insurance/vet bills................. 8
Buildings insurance..................... 16
Contents insurance...................... 13
Life assurance ......................... 233
Other insurance......................... 0
Presents (birthday, christmas etc)...... 21
Haircuts................................ 21
Entertainment........................... 50
Holiday................................. 83
Emergency fund.......................... 92
Total monthly expenses.................. 3621.6

Assets
Cash.................................... 0
House value (Gross)..................... 350000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 356000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 258912...(1731.6)...6.99
Total secured debts........... 258912....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................13712.....22........22.49
American Express...............117.......5.........18.8
Mortgage (Unsecured)...........28636.....0.........6.99
RCI Finance....................3123......143.......8.99
Honda Finance..................14250.....212.......0
IF Loan........................6947......214.......8.39
Barclays Select Loan...........14607.....194.......9.61
Loan from friend...............5000......0.........0
John Lewis.....................1669......83........16.9
Egg Green......................13909.....278.......17.9
Egg Blue.......................4691......93........16.9
Capital One....................788.......23........24.94
RBS............................12928.....202.......18.32
Total unsecured debts..........120377....1469......-

Monthly Budget Summary
Total monthly income.................... 3,333
Expenses (including secured debts)....... 3,621.6
Available for debt repayments........... -288.6
Monthly UNsecured debt repayments....... 1,469
Surplus(deficit if negative)............ -1,757.6

Personal Balance Sheet Summary
Total assets (things you own)........... 356,000
Total Secured debt...................... -258,912
Total Unsecured debt.................... -120,377
Net Assets.............................. -23,289

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

~Beanie~

BritPilot wrote: »

Help - I have amassed this huge debt and need a lot of help.

Please feel free to rip this apart and I will be eternally grateful.

Thank you so much!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 3333
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3333

Monthly Expense Details
Mortgage................................ 1731.6
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 90 - This seems very high
Gas..................................... 49
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 19
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 38 - Get rid and get freeview
Internet Services....................... 0
Groceries etc. ......................... 433 - Wow! That is HUGE. Are you feeding the 5,000? Seriously, how many people?
Clothing................................ 167 - You need to get rid of this
Petrol/diesel........................... 160
Road tax................................ 23
Car Insurance........................... 52
Car maintenance (including MOT)......... 20
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 94 - What is this for?
Pet insurance/vet bills................. 8
Buildings insurance..................... 16
Contents insurance...................... 13
Life assurance ......................... 233 - THat is very high
Other insurance......................... 0
Presents (birthday, christmas etc)...... 21
Haircuts................................ 21
Entertainment........................... 50
Holiday................................. 83 - You can't afford a holiday at the moment
Emergency fund.......................... 92 - You can't afford this either
Total monthly expenses.................. 3621.6

Assets
Cash.................................... 0
House value (Gross)..................... 350000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 356000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 258912...(1731.6)...6.99
Total secured debts........... 258912....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................13712.....22........22.49
American Express...............117.......5.........18.8
Mortgage (Unsecured)...........28636.....0.........6.99
RCI Finance....................3123......143.......8.99
Honda Finance..................14250.....212.......0
IF Loan........................6947......214.......8.39
Barclays Select Loan...........14607.....194.......9.61
Loan from friend...............5000......0.........0
John Lewis.....................1669......83........16.9
Egg Green......................13909.....278.......17.9
Egg Blue.......................4691......93........16.9
Capital One....................788.......23........24.94
RBS............................12928.....202.......18.32
Total unsecured debts..........120377....1469......-

Monthly Budget Summary
Total monthly income.................... 3,333
Expenses (including secured debts)....... 3,621.6
Available for debt repayments........... -288.6
Monthly UNsecured debt repayments....... 1,469
Surplus(deficit if negative)............ -1,757.6

Personal Balance Sheet Summary
Total assets (things you own)........... 356,000
Total Secured debt...................... -258,912
Total Unsecured debt.................... -120,377
Net Assets.............................. -23,289

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Just a few thoughts above. How many people are you supporting?

Wow - that is a lot of debt. Have you spoken to any of the Debt Management Charities to see what they advise? That would be my first step. You can trim your SOA to the bone but it is hardly going to make a dent in debts of £120K.

Even before you include any debt repayments, your income is not covering your outgoings.

rubydoiwannabee

Hi and welcome,
I have added my comments below in red, I'm sure you will get great support and help from this forum and people with much more experience, knowledge and wisdom than me will be along soon.

Good luck on your DFW journey.

BritPilot wrote: »

Help - I have amassed this huge debt and need a lot of help.

Please feel free to rip this apart and I will be eternally grateful.

Thank you so much!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 3333
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3333

Monthly Expense Details
Mortgage................................ 1731.6 (Can you change this to interest only to bring your monthly outgoings down whilst you tackle the debts?)
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 90
Gas..................................... 49
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 19
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 38 (cancel this and move to freeview)
Internet Services....................... 0
Groceries etc. ......................... 433 (How many people in your household? You have complete control over this area and it can be reduced probably dramatically)
Clothing................................ 167 (you cannot afford this much monthly...)
Petrol/diesel........................... 160
Road tax................................ 23
Car Insurance........................... 52
Car maintenance (including MOT)......... 20
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 94
Pet insurance/vet bills................. 8
Buildings insurance..................... 16
Contents insurance...................... 13
Life assurance ......................... 233 (requote quickly!!, use lifesearch)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 21
Haircuts................................ 21
Entertainment........................... 50 (cut this down)
Holiday................................. 83 (you can't afford this)
Emergency fund.......................... 92 (cut this down)
Total monthly expenses.................. 3621.6

Assets
Cash.................................... 0
House value (Gross)..................... 350000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 356000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 258912...(1731.6)...6.99
Total secured debts........... 258912....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................13712.....22........22.49 (why is this monthly payment so low?)
American Express...............117.......5.........18.8
Mortgage (Unsecured)...........28636.....0.........6.99 ???
RCI Finance....................3123......143.......8.99
Honda Finance..................14250.....212.......0
IF Loan........................6947......214.......8.39
Barclays Select Loan...........14607.....194.......9.61
Loan from friend...............5000......0.........0
John Lewis.....................1669......83........16.9
Egg Green......................13909.....278.......17.9
Egg Blue.......................4691......93........16.9
Capital One....................788.......23........24.94 (can you move this to a lower rate?)
RBS............................12928.....202.......18.32
Total unsecured debts..........120377....1469......-

Monthly Budget Summary
Total monthly income.................... 3,333
Expenses (including secured debts)....... 3,621.6
Available for debt repayments........... -288.6
Monthly UNsecured debt repayments....... 1,469
Surplus(deficit if negative)............ -1,757.6

Personal Balance Sheet Summary
Total assets (things you own)........... 356,000
Total Secured debt...................... -258,912
Total Unsecured debt.................... -120,377
Net Assets.............................. -23,289

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

tyllwyd

The life insurance for £233 monthly looks strange - is this some kind of an endowment or other savings policy? If not, and you are single with no dependents, you could drastically reduce that one.

Apart from that, I agree with the other poster who says that small changes aren't going to make much of a dent in a £120K debt. Is downsizing to a smaller house and selling your car to get something cheaper an option?

Horace

Take in lodgers. Have a clear out of clothes and stuff no longer used or worn and bung it all on ebay or do a carboot. That will free up a bit of extra cash.

Look at moneysaving oldstyle for tips on meal planning and grocery challenges.

Its not a lot but it might help - also try keeping a spending diary to see where you are wasting money.

BritPilot

~Beanie~ wrote: »

Just a few thoughts above. How many people are you supporting?

Wow - that is a lot of debt. Have you spoken to any of the Debt Management Charities to see what they advise? That would be my first step. You can trim your SOA to the bone but it is hardly going to make a dent in debts of £120K.

Even before you include any debt repayments, your income is not covering your outgoings.

Thank you everyone for your support and ideas. To answer some of your questions:

There is only me and the wife and the cat.

Can you give me names of debt management charities please Beanie.

The mortgage is an interest only Northern Rock 125% hence the unsecured portion.

The life insurance is to cover the debts and provide an income should I die. It is the lowest possible for this level of cover.

The MBNA rate is a special promotion to September 2008 of 2.9% but I put in the higher rate 'cos it changes to that next month so the amount will go up.

I am in a job that normally gives me the option of bumping up my income but the credit crunch has reduced the opportunities for a year or two.

Horace

Can your wife get a job?

As said before she and/or you should look at the moneysaving oldstyle board for tips on meal planning etc.

Stop shopping in Waitrose and the like and switch to places like Lidl (voted best value retailer 2008).

bargainbetty

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 3333
Partners monthly income after tax....... 0 Why does she not work? A second income would be massively useful here. If she is medically unfit to do so, then check her incapacity benefit status.
Total monthly income.................... 3333

Monthly Expense Details
Mortgage................................ 1731.6
Secured loan repayments................. 0
Council tax............................. 128
Electricity............................. 90 Have you looked at reducing your usage?
Gas..................................... 49 - Same here?
Water rates............................. 38
Telephone (land line)................... 19
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 38 Scrap this, get freeview.
Groceries etc. ......................... 433 This could be halved, easily.
Clothing................................ 167 You need to stop spending on clothes.
Petrol/diesel........................... 160 Can you reduce car use?
Road tax................................ 23
Car Insurance........................... 52 Cheapest policy?
Car maintenance (including MOT)......... 20
Car parking............................. 20
Medical (prescriptions, dentist etc).... 94 If this is private healthcare, unless there is a very specific issue, drop it and use the NHS until you can afford otherwise. If not, have you looked at getting other financial help with the illness?
Pet insurance/vet bills................. 8
Buildings insurance..................... 16 Can you combine the two and get something cheaper? Seems a bit high.
Contents insurance...................... 13
Life assurance ......................... 233 How old are you? Do you have a massive risk associated with your job? If not, you honestly can't afford this right now. Why pay for life after you, if you can't afford life now?
Presents (birthday, christmas etc)...... 21 Can you clear the decks, ebay and re-use?
Haircuts................................ 21 - Per month? Use beauticians schools, or clippers.
Entertainment........................... 50 - Just no.
Holiday................................. 83 - Just no.
Emergency fund.......................... 92 - Just no.
Total monthly expenses.................. 3621.6

Assets
Cash.................................... 0
House value (Gross)..................... 350000
Shares and bonds........................ 0
Car(s).................................. 6000 Downgrade for a bit?
Other assets............................ 0
Total Assets............................ 356000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 258912...(1731.6)...6.99
Total secured debts........... 258912....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................13712.....22........22.49
American Express...............117.......5.........18.8
Mortgage (Unsecured)...........28636.....0.........6.99
RCI Finance....................3123......143.......8.99
Honda Finance..................14250.....212.......0
IF Loan........................6947......214.......8.39
Barclays Select Loan...........14607.....194.......9.61
Loan from friend...............5000......0.........0
John Lewis.....................1669......83........16.9
Egg Green......................13909.....278.......17.9
Egg Blue.......................4691......93........16.9
Capital One....................788.......23........24.94
RBS............................12928.....202.......18.32
Total unsecured debts..........120377....1469......-

Are you in a position to credit tart? Call your credit card providers and ask about reduced interest rates and balance transfer offers. See if you can get the higher interest balances switched to lower cards... If you can clear the Amex, you might find they offer you a decent deal. Egg generally do their deals once a month, so call and ask what they could offer.

Call all the providers and ask them to freeze the interest payments for a while. You are going to need a DMP at best, and if you explain the situation, they may agree to accept lower payments and frozen interest for a while so you can sort it out.

If your missus needs to be at home, implement the Ebay idea already posted - reclaim some cash from what's already there.

Good luck - I hope this wasn't too harsh.

~Beanie~

Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
National Debtline - Website: National Debtline Telephone: 0808 808 4000
Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre

rchrisp

try and get a dual fuel package for your gas/electric as it is very high.

can your wife get any income?

if you must have cable tv get a combined package for phone/internet/tv.

you could easily halve your groceries, likewise your clothing expenses.

can you get a better medical insurance elsewhere?

hypno06

Hi, A dmp may not be your only option - and indeed, if there seen to be no surplus (which is what your SOA suggests) then it may not be an option at all, or at least more difficult to set up.

If you wife is willing and able to work, then a full time job would help to balance those books.

I know absolutely what this level of debt feels like - I have been there and done that. But whilst only one of you is earning, and you do not have children to work around, it seems to be the most obvious way of minimising that shortfall.

any shortfall then can be made up with cutting back, ebaying, and generally embracing the MSE way of life (believe me!).

Remember, that a DMP trashes your credit rating for 6 years. In that time you will find it difficult to obtain credit for anything - in fact it is usually a condition of your DMP that you do not obtain credit. Whilst this may not be an issue in the short term, it certainly has to be something you need to be aware of.

You need to also address what it is you have spent that money on - is that spending something that has naturally come to an end (eg doing a house up), is it everyday spending, keeping up with the Jones', some sort of addiction (eg gambling or shopping) etc. There is no point in tackling it from the outside if you are not tackling the underlying cause as well.

Hope that helps!