Large mortgage and loan.

Lissy

Since moving to our current house we are in abit of a mess financially. We took on abit more than we could chew and I then suffered depression and went spend, spend, spend! I suffered during my childhood and in my therapy it has come out why I spend to make myself happy but now i am fine and over the tough childhood and not depressed I feel bad about haivng such large debt.

Our mortgage is £150k, we have an added loan of 39k on top of that, god what a mess.

I don't know why I am posting this but I feel sick at the thought. We also have 3 young children.

We can re pay our loans/mortage each month no problem but its a alot.:o

We are currently trying to sell both of our cars which are worth about £19 between them but noone is buying:(

Are we the only ones who owe so much? Any tips?

Browntoa

it can help people here if you can post what they call a SOA (statement of affairs) which is all your outgoing/incomings , ie , mobile phone/homephone/sky/council tax/wages/credit cards/loans etc

they then might suggest savings you can make and help you clear those debts quicker

welcome to the forum

the real experts will pop along soon and help you out

shaun40400

hi lissy
welcome to the site
1st hurdle is done ,you have seen you have a problem and you've come to the right place to get help and advice!
theirs others here who are/were in just such a pickle as you
and they will soon be along to help
well done on the 1st step!!

Browntoa

theres an SOA at the start of this thread

http://forums.moneysavingexpert.com/showthread.html?t=1232691

so you can get the idea

Lissy

Here is my SOA

Monthly income after tax................ 2700
Partners monthly income after tax....... 180
Benefits................................ 0
Other income............................ 216
Total monthly income.................... 3096
Monthly Expense Details
Mortgage................................ 932 (variable with Abbey)
Secured loan repayments................. 263
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 92 (BG have put it up from £64 to cover the winter???)
Gas..................................... 114 (as above have raised it from £60)
Oil..................................... 0
Water rates............................. 51
Telephone (land line)................... 35
Mobile phone............................30 (includes internet with orange)
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 (family of 5)
Clothing................................ 0
Petrol/diesel........................... 65
Road tax................................ 0
Car Insurance........................... 135 for both.
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 17
Contents insurance...................... 0
Life assurance ......................... 14
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Charity.......................................4
Total monthly expenses.................. 2248
Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 19000
Other assets............................ 0
Total Assets............................ 219000
Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 155000....(932)......0
Loan..................................30000 ..(263)...
Total secured debts........... 185000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Barclaycard....................400.....15...... .14.9
BT card..........................4590....120(ish) ?
Abbeycard.......................1000....40 ..?
Next...................................200....£25...?
TSB Loan.......................9700.......206...9.9
Total ............................15890......406
Monthly Budget Summary
Total monthly income.................... 3096
Expenses (including secured debts)....... 2248
Available for debt repayments...........
Monthly UNsecured debt repayments....... 263
Surplus(deficit if negative)............ 585
Personal Balance Sheet Summary
Total assets (things you own)........... 219,000
Total Secured debt...................... -30000
Total Unsecured debt.................... -15890
Net Assets.............................. ?

Many thanks for any words of advice.Not sure if I have done this correct, so please correct me if I have.:p

milliemonster

Hi lissy

According to your SOA you have a surplus of £585 a month, Use this surplus wisely to overpay onj your most expensive unsecured debt, once you get that lot paid off you can then overpay on your mortgage, you need to take charge of this and start doing this now while interest rates are low, as you are on a variable mortgage, if your mortgage rises when interest rates rise then your surplus is going to fall quite a lot.

Keep a spending diary and write in it religiously to see where your surplus is going each month

Try the snowball calculator at www.whatsthecost.com to see if you overpay how quickly you can get your debts paid off

~Beanie~

Lissy wrote: »

Here is my SOA

Monthly income after tax................ 2700
Partners monthly income after tax....... 180
Benefits................................ 0
Other income............................ 216
Total monthly income.................... 3096
Monthly Expense Details
Mortgage................................ 932 (variable with Abbey)
Secured loan repayments................. 263
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 128
Electricity............................. 92 (BG have put it up from £64 to cover the winter???)
Gas..................................... 114 (as above have raised it from £60)
Oil..................................... 0
Water rates............................. 51
Telephone (land line)................... 35
Mobile phone............................30 (includes internet with orange)
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 (family of 5)
Clothing................................ 0 - Do you not buy clothes?
Petrol/diesel........................... 65
Road tax................................ 0 - There should be somthing for this, surely?
Car Insurance........................... 135 for both - THis seems steep!
Car maintenance (including MOT)......... 0 - Should be something in here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 17
Contents insurance...................... 0 - Do you not have any?
Life assurance ......................... 14
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - No christmas pressies this year?
Haircuts................................ 0 - Nobody get a haircut?
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Charity.......................................4
Total monthly expenses.................. 2248
Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 19000
Other assets............................ 0
Total Assets............................ 219000
Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 155000....(932)......0
Loan..................................30000 ..(263)...
Total secured debts........... 185000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Barclaycard....................400.....15...... .14.9
BT card..........................4590....120(ish) ?
Abbeycard.......................1000....40 ..?
Next...................................200....£25...?
TSB Loan.......................9700.......206...9.9
Total ............................15890......406
Monthly Budget Summary
Total monthly income.................... 3096
Expenses (including secured debts)....... 2248
Available for debt repayments...........
Monthly UNsecured debt repayments....... 263
Surplus(deficit if negative)............ 585
Personal Balance Sheet Summary
Total assets (things you own)........... 219,000
Total Secured debt...................... -30000
Total Unsecured debt.................... -15890
Net Assets.............................. ?

Many thanks for any words of advice.Not sure if I have done this correct, so please correct me if I have.:p

Hi Lissy

Whilst you have a surplus of over £500 on your SOA, you do seem to have missed quite a few things out. Mainly road tax, car maintenance, presents, haircuts, clothes etc. All these need to be included.

Lissy

I do haircuts for kids and i have mine done every 3 months and its £10.

We have a bonus every 6 mths (£1000) which covers xmas, car tax....No MOT's needed on our cars at present.

~Beanie~

Well in that case you should have £500+ left over each month that you can throw at your debts to get them down quicker. If you are finding that you don't have this amount left over, try keeping a spending diary for a few weeks, that will show you exactly where all your money is going.

Lissy

Thanks.

Its just with kids that easily goes, it just seems to vanish on treats, take aways once a week that kinda thing.

We do need to get tighter.

Is changing gas/elec and mortage likely to help? thinking a tracker?

milliemonster

As far as your gas and elec go, it depends on what your usage is as to whether you would be better off moving suppliers against the tariff you are currently on, I am guessing that as your current suppliers have whacked up your DD's, you are building up arrears and have had lots of estimated bills, do you have accurate readings and can therefore work out what you are using?. You shouldn't be using £200 a month worrth of gas and elec on average as that is a lot!

Yes you can look at a tracker mortgage, this will be more favourable than just being on the lenders SVR but I think tbh it's your spending habits you need to tackle the most, as you've said, your money seems to vanish on treats and having takeaways etc, I think it's worthwhile keeping a spending diary for a month and note down everything you are spending (not your normal monthly bills though), it's all about whether you want to reduce your o/s debts or carry on with the spending you currently are doing, unfortunately, you can't have it both ways and if you want to reduce your outgoings substantially, something will have to give, you have the safety net of a good surplus income at the moment, now would be the time to use this wisely, cut down on the extravagances a little just in the short term