OH says I need a bit of a wake up call

doyda

Here is my SOA my OH says I need a wakeup call but i do panic a lot about the level of debt we have. He doesn't deal wiht the money I pay all the bills etc. I know we have a lot of debt but our assests hugely outweigh that. I was wanting all you financial savvy people on here to take a look at tell me what you think. I have also started using the cashback sites and selling stuff on ebay to make extra money. I think i am getting myself wound up for nothing really.

I don't want to annoy anyone on here as from reading the other posts i know there are a lot of people on here at their witsend, so please just humour me

Monthly income after tax................ 1246.1
Partners monthly income after tax....... 1246.1
Benefits................................ 341.09
Other income............................ 0
Total monthly income.................... 2833.29

Monthly Expense Details
Mortgage................................ 1056.88
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 147
Electricity............................. 25
Gas..................................... 15
Oil..................................... 0
Water rates............................. 28.96
Telephone (land line)................... 30
Mobile phone............................ 60
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 14.99
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 5
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..................... 34
Contents insurance...................... 8
Life assurance ......................... 16.88
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
car finance............................. 324.16
Total monthly expenses.................. 2121.87

Assets
Cash.................................... 1500
House value (Gross)..................... 375000
Shares and bonds........................ 10000
Car(s).................................. 7500
Other assets............................ 300
Total Assets............................ 394300

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 216000...(1056.88)..15.8
Total secured debts........... 216000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
all credit cards...............28952.9...500.......15.9
Total unsecured debts..........28952.9...500.......-

Monthly Budget Summary
Total monthly income.................... 2,833.29
Expenses (including secured debts)....... 2,121.87
Available for debt repayments........... 711.42
Monthly UNsecured debt repayments....... 500
Surplus(deficit if negative)............ 211.42

Personal Balance Sheet Summary
Total assets (things you own)........... 394,300
Total Secured debt...................... -216,000
Total Unsecured debt.................... -28,952.9
Net Assets.............................. 149,347.1

ajaney

Your actual SOA looks ok but its these bits I dont get:

car finance............................. 324.16
Total monthly expenses.................. 2121.87

Assets
Cash.................................... 1500
House value (Gross)..................... 375000
Shares and bonds........................ 10000
Car(s).................................. 7500
Other assets............................ 300
Total Assets............................ 394300

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 216000...(1056.88)..15.8
Total secured debts........... 216000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
all credit cards...............28952.9...500.......15.9
Total unsecured debts..........28952.9...500.......-

If you are paying APR's on your credit cards & car Finance then this is effectively wiping out any gains on your cash & Shares/bonds. The cash should be thrown at the Crad with the highest APR. can you access the £10000 you have put down for Shares/Bonds? Pay off your car finance.

tyllwyd

You haven't told us what you are asking for help with. At the moment, from your SOA you have got a £200 surplus in your budget - do you find that you actually have this money left over, or in fact are you overspending and getting further into debt?

Are you asking whether £28K of unsecured debt is a lot, and should you be worried? Well, it depends on you, but it would worry me, especially with times as they are, so if it was me I'd be looking to reduce them as much as possible.

What is the situation with your £10K shares & bonds? Is that money bringing in a monthly income? Could you get at the money if you needed it? Is it invested in the stock market, or in something more stable? Are you asking whether other people would recommend that you cash it in and use the money to reduce your debts?

Really, you need to tell us whether you are comfortable with the situation you are in, or whether you are struggling, so that people can get a better idea of what kind of advice you need.

Happytogetdebtfree

doyda wrote: »

Here is my SOA my OH says I need a wakeup call but i do panic a lot about the level of debt we have. He doesn't deal wiht the money I pay all the bills etc. I know we have a lot of debt but our assests hugely outweigh that. I was wanting all you financial savvy people on here to take a look at tell me what you think. I have also started using the cashback sites and selling stuff on ebay to make extra money. I think i am getting myself wound up for nothing really.

I don't want to annoy anyone on here as from reading the other posts i know there are a lot of people on here at their witsend, so please just humour me

Monthly income after tax................ 1246.1
Partners monthly income after tax....... 1246.1
Benefits................................ 341.09
Other income............................ 0
Total monthly income.................... 2833.29

Monthly Expense Details
Mortgage................................ 1056.88
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 147
Electricity............................. 25
Gas..................................... 15
Oil..................................... 0
Water rates............................. 28.96
Telephone (land line)................... 30
Mobile phone............................ 60 ( this could be reduced or go on pay as you go
TV Licence.............................. 12
Satellite/Cable TV...................... 21
Internet Services....................... 14.99 ( if you have sky you can getbroad band free )
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 5
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..................... 34
Contents insurance...................... 8
Life assurance ......................... 16.88
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
car finance............................. 324.16
Total monthly expenses.................. 2121.87

Assets
Cash.................................... 1500 if you have this in cash pay it off the credit cards
House value (Gross)..................... 375000
Shares and bonds........................ 10000
Car(s).................................. 7500
Other assets............................ 300
Total Assets............................ 394300

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 216000...(1056.88)..15.8
Total secured debts........... 216000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
all credit cards...............28952.9...500.......15.9 ( it would be nice to see how many credit cards which is the highest which is the lowest is intrest on them all 15.9 % it depends how badly you want rid of the debt you could make a few changes and add an extra couple of quid to credit card payments and get them down pretty quick
Total unsecured debts..........28952.9...500.......-

Monthly Budget Summary
Total monthly income.................... 2,833.29
Expenses (including secured debts)....... 2,121.87
Available for debt repayments........... 711.42
Monthly UNsecured debt repayments....... 500
Surplus(deficit if negative)............ 211.42

Personal Balance Sheet Summary
Total assets (things you own)........... 394,300
Total Secured debt...................... -216,000
Total Unsecured debt.................... -28,952.9
Net Assets.............................. 149,347.1

hope that helped love others will be along with more ideas but evey step helps xx welcome to the boards x

Jacks_xxx

:wave: Hiya hon,

I'm not sure OH has the right to tell you you need a wake up call when he's just handed over responsibility for the finances to you! :rolleyes:

He's right though.

You're just doing what most people do, trundling along not worrying as long as you can make the payments with some vague idea that the fact that you have assets mean's you're Ok.

Heaven forbid that one of you gets ill or loses your job cos with £28k of debt you'd be screwed.. (When my dad got ill my mum had to quit her job to care for him so they went from two incomes to no income in a matter of weeks.)

Where's your emergency fund, your pensions, your savings....?

Wouldn't you like to be able to have a holiday or a night out once in a while?

If you're in a fab position honey there's no reason to be paying 15.9% on your cards (are they all the same?????) There are loads of 0% and low % for the life of balance deals out there.


To be honest, if there's nothing to worry about, it's all in hand and you're not living beyond your means then why are you even in debt???

The thing about your assets is that they are only relevant in my opinion if you are prepared to sell them - and then they are only worth what someone is prepared to pay.

The mortgage company owns most of the house and your equity may well be wiped out in the coming few months. (The value of our house almost halved in the early nineties recession.)

The car is just depreciating by the minute, and have you looked at the value of your shares lately??

Get a grip on your finances now before something bad happens - and make OH do it with you!

Love Jacks xxx

PS Apologies if this is harsher than you wanted but you did ask for an honest assessment.

Burlesque_Babe

I would use the shares/bonds to clear £10k of the debt - there is no point in having savings when you are paying 15.9% APR on your CC's - you're losing money rather than gaining it. To have a car worth 7.5k is a hefty asset to be sitting on for what is basically a depreciating asset - sell if you can (ie it isn't on HP) and swap for something maybe with a 2k limit if you do a lot of miles, or 1k if you just pootle around town etc in it.