Needing some positivity

doyda

Hi I am new to the board!

My OH and me have a combined debt of just under £30,000. I have reached that stage that I guess you could call the lightbulb moment - realised debt a bit out of control, annoyed with self for getting into this mess,( my OH has nothing to do with the finances so feel like i have let him down a bit aswell by getting us into this mess). Although he is fully aware of our financial situation. Have a wonderful 2 yr old little boy too and feel like I have let him down not to mention being a bit distracted and stressed out at times.

I have recently had an inheritance which I thought would get us sorted but greed took over and rather than paying any debt off I had a new kitchen.:mad:

Still have £10,000 in an E bond that i tied up for a year ( until June 09 )stupid thing to do I know.

Also inherited a house abroad which doesn't cost more than £50 a month to run - so have equity there and have about £60,000 equity in house in England.

Got a terrible credit rating due to missed payments when family member died and general disorganisation. making all payments on time now and not applying for anymore credit so rating will improve - have been looking at my experian credit report so will keep monitoring that.

Monthly credit payments - £ 420:eek:
All household bills (including mortgage etc)- £1880

Total = £2300

Monthly Earnings ( self emplyed so they do vary a bit ) - £2715

Going to try and fit some more work in to pay more off visa cards

Funds left for food etc - £415 - am doing the grocery challenge though and have set a budget of £50/week .

I have been considering an IVA or debt management as my credit rating is to bad to get a consolidation loan but I think i am just panicking a bit.

Just wanting some advice and friendly chat with people in the same situation really - don't get me wrong I know I am in a much better situation than some people and its all down to bad judgment and foolish spending.

Numpty_Monkey

Hi and welcome:hello:
Sorry about the family loss
this is gonna sound daft but glad you have a bad credit rating, the reason is consoladition very rarely works and you end deeper in the dodo

My suggestion is you post a full SOA ,,,,,use this link
http://www.makesenseofcards.com/soacalc.html
and let the great and the good here go through it, they'll help you make savings

As for the buildings and stuff i'll leave that to the clever ones, but maybe selling is an option

keep posting

doyda

Monthly income after tax................ 1164.5
Partners monthly income after tax....... 1164.5
Benefits................................ 341.09
Other income............................ 45
Total monthly income.................... 2715.09

Monthly Expense Details
Mortgage................................ 1056.88
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 30
Gas..................................... 20
Oil..................................... 0
Water rates............................. 28.98
Telephone (land line)................... 30
Mobile phone............................ 60
TV Licence.............................. 9
Satellite/Cable TV...................... 46
Internet Services....................... 14.99
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 10
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..................... 21
Contents insurance...................... 0
Life assurance ......................... 16.88
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1996.73

Assets
Cash.................................... 1000
House value (Gross)..................... 350000
Shares and bonds........................ 10000
Car(s).................................. 10500
Other assets............................ 500
Total Assets............................ 372000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 217000...(1056.88)..NaN
Total secured debts........... 217000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax one....................5700......134.......24.9
mint...........................3100......70........15.9
natwest........................500.......11........14.9
lloyds tsb.....................1800......20........15
barclaycard....................4600......70........17.9
virgin.........................3500......60........17.9
virgin.........................5700.....90........17.9
cap one........................475.......5.........17.9
mbna...........................1100......20........15.9
citi...........................1900......40........15.8
Total unsecured debts..........28375.....520.......-

Monthly Budget Summary
Total monthly income.................... 2,715.09
Expenses (including secured debts)....... 1,996.73
Available for debt repayments........... 718.36
Monthly UNsecured debt repayments....... 520
Surplus(deficit if negative)............ 198.36

Personal Balance Sheet Summary
Total assets (things you own)........... 372,000
Total Secured debt...................... -217,000
Total Unsecured debt.................... -28,375
Net Assets.............................. 126,625

Created using the SOA calculator at www.makesenseofcards.com

poorandindenial

Going to go through your SOA in detail in a mo but just wanted to say...

You have a surplus!! this is a good thing, but one of these two statements will apply:

I don't seem to have that much money left at the end of the month (in which case it is spending diary time)

or

I probably do have that amount left in which case it is SNOWBALL (www.whatsthecost.com/snowball.aspx) - you put your debts in and it helps you to pay them off in the best order

Now these things work together, you put in the total amount you have to go towards your debts and then it shows you how to pay the least interest over the repayment life of your credit, it also tells you when you will get debt free. This is very addictive because you can look and see what the difference is if you (eg) scrapped sky and put the money towards your debts, it is a great motivator and gets you to revisit what you spent (see the spending diary)

Sorry this is a bit garbled, I only just got up and have had a huge coffee so my hands are going but my brain isn't - lol

gpkwells

doyda wrote: »

Monthly income after tax................ 1164.5

Partners monthly income after tax....... 1164.5
Benefits................................ 341.09
Other income............................ 45
Total monthly income.................... 2715.09

Monthly Expense Details
Mortgage................................ 1056.88
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 30
Gas..................................... 20
Oil..................................... 0
Water rates............................. 28.98
Telephone (land line)................... 30 This seems high
Mobile phone............................ 60 This is also high
TV Licence.............................. 9
Satellite/Cable TV...................... 46 Full package - cut to min and combine with broadband and phone on Sky for £20 month
Internet Services....................... 14.99 See above
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 10
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..................... 21
Contents insurance...................... 0
Life assurance ......................... 16.88
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1996.73

Assets
Cash.................................... 1000
House value (Gross)..................... 350000
Shares and bonds........................ 10000
Car(s).................................. 10500
Other assets............................ 500
Total Assets............................ 372000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 217000...(1056.88)..NaN
Total secured debts........... 217000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax one....................5700......134.......24.9
mint...........................3100......70........15.9
natwest........................500.......11........14.9
lloyds tsb.....................1800......20........15
barclaycard....................4600......70........17.9
virgin.........................3500......60........17.9
virgin.........................5700.....90........17.9
cap one........................475.......5.........17.9
mbna...........................1100......20........15.9
citi...........................1900......40........15.8
Total unsecured debts..........28375.....520.......-

Monthly Budget Summary
Total monthly income.................... 2,715.09
Expenses (including secured debts)....... 1,996.73
Available for debt repayments........... 718.36
Monthly UNsecured debt repayments....... 520
Surplus(deficit if negative)............ 198.36

Personal Balance Sheet Summary
Total assets (things you own)........... 372,000
Total Secured debt...................... -217,000
Total Unsecured debt.................... -28,375
Net Assets.............................. 126,625

Created using the SOA calculator at www.makesenseofcards.com


You can def make some savings on your phone BB and sky costs. Also might be worth releasing some capital from property to clear debts.

Remortgage is an option - but make sure you don't run the debts up again.

Once debts cleared you will have a comfortable monthly surplus to buy all that you need. Save for the things you desire!

Numpty_Monkey

doyda wrote: »

Monthly income after tax................ 1164.5
Partners monthly income after tax....... 1164.5
Benefits................................ 341.09
Other income............................ 45
Total monthly income.................... 2715.09

Monthly Expense Details
Mortgage................................ 1056.88
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 30
Gas..................................... 20
Oil..................................... 0
Water rates............................. 28.98
Telephone (land line)................... 30 you can get cheeper phone/internet/tv packages, my phone and internet is £16 a month
Mobile phone............................ 60 can you reduce this? go to payg if on contract are you on the best tarrif?
TV Licence.............................. 9 should be £12
Satellite/Cable TV...................... 46 do you watch all the channels? check for the 3 in 1 or 2 in 1 packages
Internet Services....................... 14.99 as above
Groceries etc. ......................... 400 this can be cut down, check out the money saving old style board, tips on meal planing, shopping lists, alsorts
Clothing................................ 0 ????
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 43 is this the cheepest, check Martins article (and go through Quidco)
Car maintenance (including MOT)......... 10
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..................... 21 same as car insurance
Contents insurance...................... 0
Life assurance ......................... 16.88 as above
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 ????
Haircuts................................ 0 ????
Entertainment........................... 0 ????
Holiday................................. 0
Emergency fund.......................... 0 ???? you need one of these not much £10 a month
Total monthly expenses.................. 1996.73

Assets
Cash.................................... 1000
House value (Gross)..................... 350000
Shares and bonds........................ 10000
Car(s).................................. 10500
Other assets............................ 500
Total Assets............................ 372000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 217000...(1056.88)..NaN
Total secured debts........... 217000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax one....................5700......134.......24.9
mint...........................3100......70........15.9
natwest........................500.......11........14.9
lloyds tsb.....................1800......20........15
barclaycard....................4600......70........17.9
virgin.........................3500......60........17.9
virgin.........................57000.....90........17.9
cap one........................475.......5.........17.9
mbna...........................1100......20........15.9
citi...........................1900......40........15.8
Total unsecured debts..........79675.....520.......-

Monthly Budget Summary
Total monthly income.................... 2,715.09
Expenses (including secured debts)....... 1,996.73
Available for debt repayments........... 718.36
Monthly UNsecured debt repayments....... 520
Surplus(deficit if negative)............ 198.36

Personal Balance Sheet Summary
Total assets (things you own)........... 372,000
Total Secured debt...................... -217,000
Total Unsecured debt.................... -79,675
Net Assets.............................. 75,325

Created using the SOA calculator at www.makesenseofcards.com

I put a few thoughts in blue, you have a surplus going by your SOA, so 2 other things spring to mind

1 keep a spending diary, find out where the £198 a month is going
2 Snowballing http://www.whatsthecost.com/snowball.aspx?country=uk
HTH

looks like poor got in first

poorandindenial

doyda wrote: »

Monthly income after tax................ 1164.5
Partners monthly income after tax....... 1164.5
Benefits................................ 341.09
Other income............................ 45
Total monthly income.................... 2715.09

Monthly Expense Details
Mortgage................................ 1056.88
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 30
Gas..................................... 20
Oil..................................... 0
Water rates............................. 28.98
Telephone (land line)................... 30*
Mobile phone............................ 60 (is this for two?? even so you might save if you went PAYG, it is worth looking at your usage and seeing what it would cost on some of the PAYG tarriffs that are out there)
TV Licence.............................. 9
Satellite/Cable TV...................... 46*
Internet Services....................... 14.99* (this and other two marked * can be sorted out a treat, Sky definitely offered the three for less than £30 all in and I am sure that is now lower than that, you DO~N'T need to pay £46 for TV each month, see comment above about snowball calculator)
Groceries etc. ......................... 400 (this is high, how many is it for? you can trim this with a bit of meal planning - see the old style board, some of them really cut to the bone but you should be able to reduce it a fair bit with some quite minor changes)
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 10 (£93 on car but you don't seem to use it a huge amount, is it essential or could you - be honest with yourself - get by without it)
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..................... 21 (does this include contents too? if not you might be underinsured and struggle if somethign happened)
Contents insurance...................... 0
Life assurance ......................... 16.88 Have you done any price comparisons of late? these (this and buildings ins) don't seem bad but can't hurt to check
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1996.73

Assets
Cash.................................... 1000
House value (Gross)..................... 350000
Shares and bonds........................ 10000
Car(s).................................. 10500
Other assets............................ 500
Total Assets............................ 372000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 217000...(1056.88)..NaN
Total secured debts........... 217000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax one....................5700......134.......24.9 :eek: can you clear Natwest and transfer this to there
mint...........................3100......70........15.9
natwest........................500.......11........14.9
lloyds tsb.....................1800......20........15
barclaycard....................4600......70........17.9
virgin.........................3500......60........17.9
virgin.........................5700.....90........17.9
cap one........................475.......5.........17.9
mbna...........................1100......20........15.9
citi...........................1900......40........15.8
Total unsecured debts..........28375.....520.......-

These APRs are all quite high (you must have a bit of a rough credit rating), you need to be throwing as much money at this little lot as you can possibly muster)

Monthly Budget Summary
Total monthly income.................... 2,715.09
Expenses (including secured debts)....... 1,996.73
Available for debt repayments........... 718.36
Monthly UNsecured debt repayments....... 520
Surplus(deficit if negative)............ 198.36

Personal Balance Sheet Summary
Total assets (things you own)........... 372,000
Total Secured debt...................... -217,000
Total Unsecured debt.................... -28,375
Net Assets.............................. 126,625

Created using the SOA calculator at www.makesenseofcards.com

This might not be very popular with people but when you see how much you are putting towards these debts is going in interest you may wnt to sell the house overseas and save up to buy a new one. You may see that house as security but per month these debts are taking up over £400 a month of the £520 minumum payments as interest so they are only coming down by £100ish a month

When you first do your snowball mark all the minimum payments as non variable and see when your debt free date is (I say this because this is how I scared myself as this is how I discovered the snowball stopped calculating at 100 years)

I am sorry if this all sounds a bit brutal, it is only suggestions and I tend to go for the whole 9 yards rather than gentle suggestions, feel free to ignore or adopt as you see fit.

I really hope you get this under control and start to feel better about it

On another note it is unlikely that you would quaify for an IVA if you are able to meet the payments (and there are VERY few people they are genuinely suitable for, a DMP may be an option if you factor in the additional costs like clothes, birthdays, christmas etc, you can get an idea of eligibility on CCCS website using their debtremedy tool - they are in this list of not for profit debt advice people - link as promised)

doyda

Hi

Thanks for everybody who sent me a message before, my day has really turned around. Have telephoned sky and got £18 off my bill each month so will be able to throw that extra bit at the credit cards. Also been looking through the finances and sorted out extra ways of cutting costs.

Very excited now about chipping away at the credit cards every day if poss!!

poorandindenial

Hi again doyda

Really pleased you managed to get a chunk chipped off of your bill each month, that makes an extra £216 a year for your debts.

I am also really pleased that you are excited about getting your debt down, do keep on coming back to let us know how you are getting on. For me the greatest thing is seeing the amount of interest I pay each month dropping (and it drops fastest on credit cards) and then the faster it drops the faster the debt goes down. I think I need to get out more - lol

Well done.

doodledo_2

Hi and welcome to the board.

Firstly sorry to hear of your loss.

Your house abroad is there any opportunity for you to rent it out to get some more income which could be thrown at your debts?

ajaney

You are in a position a lot of people would like to be in with having inherited a property abroad. You didn't buy this property & lived without it so you could live without again! I would look very very closely at either selling or letting out.

It could help you get on a more secure footing.