Serious debt problems - please help me!

dack_2

Hi all,

Subject to finalising a few things, here is my updated SOA. Would appreciate any comments...

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 758.07
Other income............................ 300
Total monthly income.................... 1058.07

Monthly Expense Details
Mortgage................................ 300
Council tax............................. 70
Electricity............................. 30 (was 35)
Gas..................................... 30 (was 43)
Water rates............................. 42
Telephone (land line)................... 18 (was 31.5)
Mobile phone............................ 0 (was 50)
TV Licence.............................. 12
Satellite/Cable TV...................... 0 (was 21)
Internet Services....................... 0 (was 20, actually still is but commented on this earlier)
Groceries etc. ......................... 250 (was 300)
Clothing................................ 10 (was 30)
Medical (prescriptions, dentist etc).... 3.5
Buildings insurance..................... 7.5 (was 15)
Contents insurance...................... 7.5 (was 15)
Life assurance ......................... 11.5 (forgotten previously, covers mortgage only I think)
Presents (birthday, christmas etc)...... 10
Haircuts................................ 2
Entertainment........................... 20

Total monthly expenses.................. 824

Assets
Cash.................................... 0
House value (Gross)..................... 50000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 51000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 8175.....(300)......0
Total secured debts........... 8175......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................4430......100.......0
Credit Card....................5338......140.......0
Credit Card....................600.......30........0
Overdraft......................4000......0.........0
Personal Loan..................18406.....263.......0
Credit Card....................3765......90........0
Total unsecured debts..........36539.....623.......-

Monthly Budget Summary
Total monthly income.................... 1,058.07
Expenses (including secured debts)....... 824
Available for debt repayments........... 234.07
Monthly UNsecured debt repayments....... 623
Surplus(deficit if negative)............ -388.93

Personal Balance Sheet Summary
Total assets (things you own)........... 51,000
Total Secured debt...................... -8,175
Total Unsecured debt.................... -36,539
Net Assets.............................. 6,286

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

This does still need some fine tuning but is looking better.

This time I have included Council Tax (and benefit) in income and expenses.

I've adjusted a few things after deeper thought, such as clothing, groceries. Not done a meal plan/budget yet but one step at a time eh? Also arranged for son to walk to school (weather permitting) saving around £10 month busfare (his pocket money perhaps? :rolleyes: ). Included his dinner money with groceries (was listed as other child related income) and trying to get him to use the free school meal pass, not so easy with a 14yr old!

I will be setting aside a sum of money to cover car costs for the next month only. After that, unless something incredible happens, it will be sold.

Also, setting aside enough to cover remainder of mobile contract (2mths) and last Sky payment, etc. (Fortunately we had a CTC back-payment last month and have some cash left).

I'm frankly astonished that a few hours work has reduced my outgoings by £360 month. I must check my figures :cool: .

Thanks for your help getting me this far :T

Dack

P.S. Is there anything blatantly obvious I have missed?
Also, would you recommend I get life insurance over and above the mortgage policy I currently have? If so, over what term. Five, ten, twenty years?

dack_2

Thread seemed to be getting buried on page six. This has to be the most active forum I have ever visited!!!

Any comments on the revised SOA much appreciated, thanks! :beer:

Dack

RAS

You are doing well.

Some can you play with www.entitledto.com and see what happens if the missus gets a job that rings in say £500 per month?

if she cant get work, then I think you need to trim even more off the groceries budget, but atl east you can now make paymen to your creditors.

WELL DONE

sandy_beech_2

sorry if my previous comments were harsh. fair enough you are struggling to go back to work but cant your wife work full time? this would put you in credit each month. being in credit each month would take tons of weight off your shoulders and no more worrying about creditors.

dack_2

RAS wrote: »

You are doing well.

Some can you play with www.entitledto.com and see what happens if the missus gets a job that rings in say £500 per month?

if she cant get work, then I think you need to trim even more off the groceries budget, but atl east you can now make paymen to your creditors.

WELL DONE

entiltledto.com suggests that with my wife earning £500 month gross we would be entitled to the following per week:

CTC £50.54 (though it suggested this amount for our current situation but we only get £45)
WTC £68.53 Final figure
CTAX £16.33 - Full council tax benefit

Including wages (but not accounting for work related expenses) this would make us about £75 per week better off.


I do have a couple of questions though...

1. WTC final figure is shown above but the 'Initial Figure' shown on entitledto was £0. Does this mean we would have to wait for the end of the tax year for it to be calculated and the credits paid to us? If not, do you know how long the average wait is before starting to receive it?

2. Something I haven't included in these calculations (and I'm rather concerned about) is the £300 I receive each month from my mortgage insurance (specifically 'Income Protection for Mortgages' from HSBC). When I applied for Income Support in the past they asked for details of this and asked a few questions but then didn't seem to count it as income when working out my benefits. Also, the entitled to help has no references to payments from insurance plans so I just left it out.
I really don't know where I stand with this money or understand how it might affect future benefits. Do you have any comments?

FYI, the money is paid directly into my bank account and mortgage is paid by DD as usual. The more I think about it perhaps I could move my mortgage to interest only? Is this likely with the policy paying out? Mortgage and ins policy with same company too. Suggestions appreciated.

Thanks,

Dack

dack_2

sandy_beech wrote: »

sorry if my previous comments were harsh. fair enough you are struggling to go back to work but cant your wife work full time? this would put you in credit each month. being in credit each month would take tons of weight off your shoulders and no more worrying about creditors.

The wife is looking for work now, preferably full-time. Hoping she finds something soon.

Dack

daviduk1976

hi Dack n family..

Newbie to site and reading your plight....I'm so pleased at your approach to this....hitting head on and sorting things out for yourselves....well done u and well done to the peeps in here helping out etc....Im rooting for ya m8!! all the best and remember when u feel crap...just come on here and read what me and others are saying!!

David

dack_2

daviduk1976 wrote: »

hi Dack n family..

Newbie to site and reading your plight....I'm so pleased at your approach to this....hitting head on and sorting things out for yourselves....well done u and well done to the peeps in here helping out etc....Im rooting for ya m8!! all the best and remember when u feel crap...just come on here and read what me and others are saying!!

David

Hi David,

Thanks for the kind remarks. Like you said, without the encouragement and advice from these guys n girls I know it would be a much different story.

Dack

dack_2

A little bump for answers to questions in my post (#66) above.

Thanks,

Dack

dack_2

Hi,

My questions above (post #66) were originally intended for RAS but I would appreciate comments from anyone who is able.

Thanks,

Dack