Hit breaking point - Need advice - Help

mleach26

Hi all, thanks for taking the time to look at my post.

Here is my SOA

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1810
Partners monthly income after tax....... 500
Benefits................................ 166
Other income............................ 0
Total monthly income.................... 2476

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 416.88
Management charge (leasehold property).. 0
Council tax............................. 113.48
Electricity............................. 30
Gas..................................... 54
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 32.5
Mobile phone............................ 55
TV Licence.............................. 11.6
Satellite/Cable TV...................... 32.5
Internet Services....................... 35
Groceries etc. ......................... 480
Clothing................................ 50
Petrol/diesel........................... 40
Road tax................................ 16
Car Insurance........................... 35
Car maintenance (including MOT)......... 38
Car parking............................. 0
Other travel............................ 360
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 5
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 15
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1868.96

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Barclayloan....................25000.....378.4.....7.9
Barclaycard....................1500......26........12.9
Egg Card.......................900.......15........15.9
Catalogue......................66........22........0
Egg loan.......................10000.....182.......9.9
Overdraft......................600.......0.........0
Total unsecured debts..........38066.....623.4.....-

Monthly Budget Summary
Total monthly income.................... 2,476
Expenses (including secured debts)....... 1,868.96
Available for debt repayments........... 607.04
Monthly UNsecured debt repayments....... 623.4
Surplus(deficit if negative)............ -16.36

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -38,066
Net Assets.............................. -38,066

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

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

As you can see i am struggling to make my repayments each month. I have never missed a payment on ANY of my loans, credit card or catalogue. My wife and I are coming towards the end of our tether. Each month we cut back and there is always something else to pay, we have too young daughter ages 7 and 4 both now at full time school. If it not birthdays or the car or something no matter how much we earn there is never enough!

My sister works for the Bradford CSA as a debt councillor. She has suggested i might want to look at getting an IVA setup with Payplan. I am considering this, but i am unsure as i do not want to set it up only for it to be knocked back by Barclays, they are the ones i own the most too. It seemed like a good idea to get a £25000 loan with them, that was just over 3 years ago. Now the repayments are cripping us I have already consolidated my loans 3 times over the past 8 years and i told my wife we are NOT doing it again.

Please could someone offer some advice or thoughts on my situation? I welcome any ideas, i don't really want to go for the IVA unless i have too, but with my MOT, Service and Tax due soon i maybe unable to avoid it.

Beset regards to everyone

Matt Leach

peb

Morning; I did not want to see you drop off teh front page so to speak; an IVA is very rarely the answer for most people. Do speak to both Payplan and CCCS and ask for their suggestions; maybe a DMP will suit.

Having said that you are very near to braking even and as a DMP will effect your credit rating (for stoozing etc - not to get more credit) then I would look and see where you can cut back first.

The groceries are really high - have a look on the Old Style board for ideas, a lot of families try to manage on £100/150 a month; this is not easy but can you try cutting down gradually; first to £450 so that your "books" balance and then a little month until you are comfortable.

Other travel costs seem expensive to me - I would have thought it would be cheaper to have the weekly or monthly passes for the bus. You also don't spend a lot on fuel which is good, but do you need the car? Think about it carefully as it is costing you £110 a month.

Clothing, entertainment and haircuts also form a big part of the budget. you need to think before spending on these things, I understand children grow but you need to buy less and spend less.

AN IVA is a big deal as is a DMP - if you can manage yourself it will effect you less in the long term. Have a look at Hypno's thread for true inspiration!

Merlot

mleach26 wrote: »

Hi all, thanks for taking the time to look at my post.

Here is my SOA

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1810
Partners monthly income after tax....... 500
Benefits................................ 166
Other income............................ 0
Total monthly income.................... 2476

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 416.88
Management charge (leasehold property).. 0
Council tax............................. 113.48
Electricity............................. 30
Gas..................................... 54
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 32.5 - Stop talking on the phone, if you are with BT, there are cheaper options, please take a look at Martins advice, blue tab at the top.
Mobile phone............................ 55 - Got to go, or atleast reduce.
TV Licence.............................. 11.6
Satellite/Cable TV...................... 32.5 - Got to go.
Internet Services....................... 35 - :eek: This is far far too high.
Groceries etc. ......................... 480 - Too high, take at least £100 off
Clothing................................ 50 - Too high every month
Petrol/diesel........................... 40
Road tax................................ 16
Car Insurance........................... 35
Car maintenance (including MOT)......... 38
Car parking............................. 0
Other travel............................ 360:eek:
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 5
Buildings insurance..................... 0
Contents insurance...................... 0 - you need this, its important.
Life assurance ......................... 0 - You need this Life Insurance, it is very important especially with dependant children, this is more important than Sky or mobile, take a look at www.quidco.com and you can earn some cashback on your cover, do this today.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 15
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1868.96

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Barclayloan....................25000.....378.4.....7.9
Barclaycard....................1500......26........12.9
Egg Card.......................900.......15........15.9
Catalogue......................66........22........0
Egg loan.......................10000.....182.......9.9
Overdraft......................600.......0.........0
Total unsecured debts..........38066.....623.4.....-

Monthly Budget Summary
Total monthly income.................... 2,476
Expenses (including secured debts)....... 1,868.96
Available for debt repayments........... 607.04
Monthly UNsecured debt repayments....... 623.4
Surplus(deficit if negative)............ -16.36

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -38,066
Net Assets.............................. -38,066

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

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

As you can see i am struggling to make my repayments each month. I have never missed a payment on ANY of my loans, credit card or catalogue. My wife and I are coming towards the end of our tether. Each month we cut back and there is always something else to pay, we have too young daughter ages 7 and 4 both now at full time school. If it not birthdays or the car or something no matter how much we earn there is never enough!

My sister works for the Bradford CSA as a debt councillor. She has suggested i might want to look at getting an IVA setup with Payplan. I am considering this, but i am unsure as i do not want to set it up only for it to be knocked back by Barclays, they are the ones i own the most too. It seemed like a good idea to get a £25000 loan with them, that was just over 3 years ago. Now the repayments are cripping us I have already consolidated my loans 3 times over the past 8 years and i told my wife we are NOT doing it again.

Please could someone offer some advice or thoughts on my situation? I welcome any ideas, i don't really want to go for the IVA unless i have too, but with my MOT, Service and Tax due soon i maybe unable to avoid it.

Beset regards to everyone

Matt Leach

Good morning Matt,

I have added comments in above, I can at least £140 savings per month to be made, which will turn your defecit into a surplus.

Please please consider the idea of an IVA very carefully, they are not for everyone, take a look at Martins advice on IVA, I'll try and find the link.

You could phone one of the debt charities, like CCCS, Payplan or National Debtline for advice, I think a DMP is also an option.

You need to start a spending diary today, and log every penny you spend, you are spending money somewhere, be it magazines, newspapers etc, every penny makes a difference.

You have done the horrid bit by completing your SOA, I see light at the end of the tunnel on your situation, you need to change your spending habits and get everyone on board, even young children.

P.s. Do not consider consolidating again, even if you think you are in desperate need, it rarely works, and I think you may have found that one out from what you say above.
Merlot.x.

mleach26

Hi peb, thanks for your advice. I agree the groceries are really high and we have been trying to cut back, i have persuaded my OH that we need to buy own brands wherever possible which we do, am going to see if i can reduce this further.

As for the car my OH and I have given this serious thought, and we both came to the conclusion that the car IS needed. I sometimes use it for work if required, but it would be nearly impossible to go out and get bits for the house and shopping without it, plus if i did get rid of it i would never be able to afford to buy another. Without i would not be able to visit my family either as they all live in different parts of the country. i know a car is a major expense, but i feel that it is needed.

The travel is a major problem, i commute into london every day as this is were i work. I have cut back on the travel card to the minimum required and use the pay as you go oyster for tube and bus journeys, although i do the same journey every day. i am trying tro find a job closer to home to combat this.

I appreciate all your advice

mleach26

Merlot wrote: »

Good morning Matt,

I have added comments in above, I can at least £140 savings per month to be made, which will turn your defecit into a surplus.

Please please consider the idea of an IVA very carefully, they are not for everyone, take a look at Martins advice on IVA, I'll try and find the link.

You could phone one of the debt charities, like CCCS, Payplan or National Debtline for advice, I think a DMP is also an option.

You need to start a spending diary today, and log every penny you spend, you are spending money somewhere, be it magazines, newspapers etc, every penny makes a difference.

You have done the horrid bit by completing your SOA, I see light at the end of the tunnel on your situation, you need to change your spending habits and get everyone on board, even young children.

P.s. Do not consider consolidating again, even if you think you are in desperate need, it rarely works, and I think you may have found that one out from what you say above.
Merlot.x.

Merlot, thank you for your advice.

I agree the phone, broadband and Tv are high, this is all in one package from virgin media, called the VIP package, we took this out around march 2007, so i need to speak to them to see if i can get the minimum package or maybe an alternative supplier? Trouble is with that you have to get a bt line extra and that is additional expense, i will look into it anyway to cut the cost.

The mobile phone is a two phone contract which runs till march 2009. I use one and my wife uses one, i don't need my really i guess, i do have a work one but am not allowed to use for personal phone calls, hence the need for my own mobile. We are thinking about going onto pay as you go.

Contents insurance is included as part of the rent with North Hertfordshire Homes, and Life Assurance is taken car of with my pension plan with my employer

I spend no money during the week at work, i used too, but have saved some money doing this.

Thanks for all your advice

Merlot

I'm pleased to read you have life insurance, but does your wife? it is important that her life is covered as well, could you afford paid help or the rent if something was to happen to her, this is especially important if you have dependant children.

Merlot

So is the telephone itemised on your soa, just the line rental, if so, it shouldn't be £35 per month.

Give Virgin a call and see what they can do.

As far as mobiles, if you are 9 months into the contract, you can phone up from your mobile as it is free and ask them to reduce the package, every penny counts.

mleach26

Merlot wrote: »

I'm pleased to read you life insurance, but does your wife? it is important that her life is covered as well, could you afford paid help or the rent if something was to happen to her, this is especially important if you have dependant children.

My wife does not have any life insurance, and its true we do live off of her wages, i will see if this is something her company can provide. To be honest its not something she or I have looked into as we live from month to month.

Merlot

I have Life Insurance, I'm a stay at home mum, mine is £100,000 cover for £10 per month from Tesco, you may live month to month as we do, but I cannot stress enough how important it is, far more important than mobiles or sky. I have first hand experience (a very close friend died) and she didn't have any cover and her husband had to give up work temporarily to look after the 4 children and they were in financial difficulties because of no life cover.

I promise not to mention it again, I'm just passionate about being protected, but not overly protected with insurance you cannot afford to live.

mleach26

Merlot wrote: »

I have Life Insurance, I'm a stay at home mum, mine is £100,000 cover for £10 per month from Tesco, you may live month to month as we do, but I cannot stress enough how important it is, far more important than mobiles or sky. I have first hand experience (a very close friend died) and she didn't have any cover and her husband had to give up work temporarily to look after the 4 children and they were in financial difficulties because of no life cover.

I promise not to mention it again, I'm just passionate about being protected, but not overly protected with insurance you cannot afford to live.

Merlot, i thank you for your response, you can mention it as much as you like. I understand the idea of protection, and am sorry to here about your friend. £10 a month life cover is pretty good, i didn't realise you could get it so cheapley. I will certainly look into this.

mleach26

Merlot wrote: »

So is the telephone itemised on your soa, just the line rental, if so, it shouldn't be £35 per month.

Give Virgin a call and see what they can do.

As far as mobiles, if you are 9 months into the contract, you can phone up from your mobile as it is free and ask them to reduce the package, every penny counts.

hmmm....the telephone was itemised as the line rental and the call charges, i will have to get hold of the latest bill to check the line rental. I have been thinking about ringing orange and reducing my package.