Not exactley DFW, more 'computer says no' - now what?

Raksha

WE went to HSBC today to try and consolidate our Credit Cards/loan and ensure we have enough to get both cars through their MOT's (which both fall at the same time ). Because we missed some payments on CC's earlier on this year (when I was working reduced hours and paying emergency tax, which is now sorted - new job and correct P45) both options (re mortgage and loan) have been ruled out. The only things they could suggest were to go to their own debt people, who will only look at any HSBC lending.

Apart from selling the family silver (we don't have any!) what else can we do? OH works 24/7 shifts, so second job is just about unworkable, my mental health is fragile, so I couldn't take on a second job.

We would like to free up some of what we are spending at the moment, because there is nothing left in the pot for 'rainy days' like this month.

HELP!

whitewing

Raksha,

Have you done an SOA anywhere before?

Raksha

Ermmmmm - what one of those?

whitewing

A Statement of Affairs (I thought you may know, only because you're not a newbie). There is a sticky for newbies on the Devt Free wannabe board that has a link to it. Or someone else will link it in for you. Basically it's a list of outgoings and income and you can list out all your debts etc so people can comment more easily.

Raksha

Found it :


Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 868
Partners monthly income after tax....... 2198
Benefits................................ 168
Other income............................ 42
Total monthly income.................... 3276

Monthly Expense Details
Mortgage................................ 668
Secured loan repayments................. 244
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 150
Gas..................................... (dual fuel with Scottish Power, also on Economy 7 and running washing machine, dishwasher and tumble drier on timers, tumble drier only used for 'airing')
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 58 (including broadband)
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... See Telephone
Groceries etc. ......................... 400
Clothing................................ 100
Petrol/diesel........................... 110
Road tax................................ 25
Car Insurance........................... 100
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 18 (Scout Subs)
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 22
Contents insurance...................... 28
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Central Heating servicing............... 30
Total monthly expenses.................. 2156

Assets
Cash.................................... 0
House value (Gross)..................... 210000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 213000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 84868....(668)......0
Secured Debt.................. 31848....(244)......0
Total secured debts........... 116716....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................11439.....170.......15.93
Halifax Visa...................2772......60........20.95
HSBC Visa......................8236......200.......17.94
Mint...........................7520......114.......20.94
A & L Visa.....................2110......50........34.8
Total unsecured debts..........32077.....594.......-

Monthly Budget Summary
Total monthly income.................... 3,276
Expenses (including secured debts)....... 2,156
Available for debt repayments........... 1,120
Monthly UNsecured debt repayments....... 594
Surplus(deficit if negative)............ 526

Personal Balance Sheet Summary
Total assets (things you own)........... 213,000
Total Secured debt...................... -116,716
Total Unsecured debt.................... -32,077
Net Assets.............................. 64,207

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

======== Enter any other useful information below ========
2 adults, 2 children under 16, two cars (could possibly do without one, but it would mean 2 x 16 mile return journeys to take OH to work and back as he works shifts.

shopaholictiedtheknot

Hi Raksha

I have found myself in a similar position with my ccards, been refused a 0% one so I am having to pay interest which is making my debt even worse!

Just looking at your SOA - your car insurance is very high - I only pay £24 a month and your grocery shopping is high too - how many people is that for?

shopaholictiedtheknot

Sorry just re-read and seen it is for 4 - that is very high, if you look on the old style boards you will find loads of tips for reducing it and whatever you save you could throw at the highest apr debt or save to pay for your MOTS?

Numpty_Monkey

I don't mean to be rude but and will have another look later when I get home
You have a surplus have you had a look at the snowball calc
http://www.whatsthecost.com/snowball.aspx?country=uk

Groceries can be cut, Phone broadband can be more than halved, clothing is a lot can you go without for a few months,

hth

misspoppy

HI

I'm sure you can make a few painless cut backs, you could look at your food shopping, i don't know if you meal plan and cook from scratch one meal for the family which is a good way to slash the food bill. Also you don't really need to spend £100 every month on clothes. You can probably get a better deal on your contents insurance I only pay £40 per YEAR and even then I effectivly paid £20 because of quidco cash back. Do you really need the car when your other half is at work? If not every day you could just have one car and only do that round trip a couple of times a week.

You also appear to have £500 left over each month, it must be being spent somewhere so keep a spending diary to see where else you can make cut backs. Consolidation never works long term changing your spending habits will though.

RAS

Raksha wrote: »

Found it :


Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 868
Partners monthly income after tax....... 2198
Benefits................................ 168
Other income............................ 42
Total monthly income.................... 3276

Monthly Expense Details
Mortgage................................ 668
Secured loan repayments................. 244
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 150
Gas..................................... (dual fuel) even as dual fuel this is very expensive. go round and turn off everything and teach the kids to turn off everything when they have finished with it. Turn off lights whe you are not in the room. Turn down the hot water, or only operate it when you need it.
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 58 (including broadband) - still expensive - you can get it for less the £40
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... See Telephone
Groceries etc. ......................... 400 - this can be halved
Clothing................................ 100 - shoes and knockers. Otherwise stop buying for 6 months.
Petrol/diesel........................... 110
Road tax................................ 25
Car Insurance........................... 100 - this is vey high even for 2 cars. Do you have points? Otherwise, use comparision sites and then switch via a cashback site like www.quidco.com
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 18 (Scout Subs)
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 22 - highish
Contents insurance...................... 28 - ditto
Life assurance ......................... 0 - you need this if you have a mortgage and if you have children. Simple term insurance is only £12-15 per month and worht it.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Central Heating servicing............... 30
Total monthly expenses.................. 2156

Assets
Cash.................................... 0
House value (Gross)..................... 210000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 213000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 84868....(668)......0
Secured Debt.................. 31848....(244)......0
Total secured debts........... 116716....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................11439.....170.......15.93
Halifax Visa...................2772......60........20.95
HSBC Visa......................8236......200.......17.94
Mint...........................7520......114.......20.94
A & L Visa.....................2110......50........34.8
Total unsecured debts..........32077.....594.......-

Monthly Budget Summary
Total monthly income.................... 3,276
Expenses (including secured debts)....... 2,156
Available for debt repayments........... 1,120
Monthly UNsecured debt repayments....... 594
Surplus(deficit if negative)............ 526 - what have you been spending this on if you have no emergency money?

Personal Balance Sheet Summary
Total assets (things you own)........... 213,000
Total Secured debt...................... -116,716
Total Unsecured debt.................... -32,077
Net Assets.............................. 64,207

Hi

Sorry if this sounds harsh but it loks like you have money towards your detbs or that you are spending money that you have not listed?

Do you or OH ever go out? family days out? Holidays? Christmas and birthdays? Buying food at work? Magazines and all the other stuff.

Would suggest that all four of you keep a spending diary for a few weeks to find out where it has gone.

or that you go throught the last few bank and CC statement snad work out where it has been going?

None of your CC and loan rates are great, and the A&L is dreadful. At that rate, ou cannot afford to pay mnimum payments.

Whats the maximum on the cards?

Burlesque_Babe

Raksha wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 868
Partners monthly income after tax....... 2198
Benefits................................ 168
Other income............................ 42
Total monthly income.................... 3276

Monthly Expense Details
Mortgage................................ 668
Secured loan repayments................. 244
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 150 VERY high - do you have arrears?
Gas..................................... (dual fuel with Scottish Power, also on Economy 7 and running washing machine, dishwasher and tumble drier on timers, tumble drier only used for 'airing') turn off lights, unplug stuff on standby and save a couple of £ per week
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 58 (including broadband) ouch, that's high for a landline and broadband, who is it with?
Mobile phone............................ 20 are you on PAYG? Only use in emergencies. If on contract, ask to go to lowest tariff
TV Licence.............................. 12
Satellite/Cable TV...................... 20 switch to freeview
Internet Services....................... See Telephone
Groceries etc. ......................... 400 :eek: Probably don't need to say more
Clothing................................ 100 each month??! Stop now! Sell excess clothing on ebay and only buy when you really have to and then in Tesco/Asda etc
Petrol/diesel........................... 110 any car sharing possible? Journey's that can be walked?
Road tax................................ 25
Car Insurance........................... 100 can you get it cheaper - is this for 2 cars (if so , still very high). Look at comparison sites and then use quidco.
Car maintenance (including MOT)......... 30 £420 per year for car maintenance but you were looking to consolidate to get the cars through the MOT?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 18 (Scout Subs)
Medical (prescriptions, dentist etc).... 10 do you pay enough to get a pre-paid/cheaper prescription certificate?
Pet insurance/vet bills................. 0
Buildings insurance..................... 22 ]
Contents insurance...................... 28 ] Jointly very high. I pay £14 per month for BOTH, (than down to £8 with quidco) again, use comparison sites, then quidco
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0 you must be spending some money on entertainment during the year which needs factoring in ?
Holiday................................. 0
Emergency fund.......................... 0
Central Heating servicing............... 30 ouch. That's £360 per year. Are you using the services regularly enough to warrant the expense??
Total monthly expenses.................. 2156

Assets
Cash.................................... 0
House value (Gross)..................... 210000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 213000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 84868....(668)......0
Secured Debt.................. 31848....(244)......0
Total secured debts........... 116716....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................11439.....170.......15.93
Halifax Visa...................2772......60........20.95
HSBC Visa......................8236......200.......17.94
Mint...........................7520......114.......20.94
A & L Visa.....................2110......50........34.8
Total unsecured debts..........32077.....594.......-

Monthly Budget Summary
Total monthly income.................... 3,276
Expenses (including secured debts)....... 2,156
Available for debt repayments........... 1,120
Monthly UNsecured debt repayments....... 594
Surplus(deficit if negative)............ 526

Personal Balance Sheet Summary
Total assets (things you own)........... 213,000
Total Secured debt...................... -116,716
Total Unsecured debt.................... -32,077
Net Assets.............................. 64,207

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

======== Enter any other useful information below ========
2 adults, 2 children under 16, two cars (could possibly do without one, but it would mean 2 x 16 mile return journeys to take OH to work and back as he works shifts.

Hi - my thoughts in red.

I see lots of ways to really chop and amend your budget to really start to hammer the debts really quickly. Don't consolidate, it's the worst thing you can do in this situation.