getting started

sambez

hi there

ive been lurking on here for ages. We have a lot of credit cards and a large mortgage. We pay everything every month but have no money spare at the end of the month for emergencies or to live really. We would love to get the debts down and keep writing it all out and working a budget out but we cant stick to it and things seem to get worse rather than better. Its getting to the point where i feel i am getting so down over things it is affecting my life in general, but we still cant seem to do anything about it. we want to overpay on cards to try getting rid of them but its not possible and we cant move mortgages as we dont earn enough now to get the money we need. Our mortgage is a self cert at about 8%.

Sam

milliemonster

Hi Sam , you need to start by filling in and posting an SOA so we an have a look at your budget. It may be that you are setting yourself a budget that is just too tight for you to manage and this is why you are finding it difficult to stick to, you need to fill in a full SOA as this will cover every little expenditure and help you set a realistic budget, sometimes when we try to write it down, you forget the little things you still end up forking our for each month and these few pounds here and there play havoc with your budget

the link is here hun www.makesenseofcards.com

sambez

H i thanks

I have done the soa and it looks worse than i thought.

The mobile amount is for 2 phones and we are locked in until june.

The Sky can be reduced but as we dont smoke drink or go out we would like some form of relaxation.

I have 3 jobs and my income does fluctuate so from time to time i can pay extra so used the least i would probably get for this soa.

any help or advice would be gratefully appreciated. I can only see a debt management plan as our option but our credit file is perfect so obviously would be a last resort, and i dont know if it will prevent me from running my own business. I am self employed.

thanks

Sam

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 660
Partners monthly income after tax....... 1323
Benefits................................ 75.2
Other income............................ 0
Total monthly income.................... 2058.2

Monthly Expense Details
Mortgage................................ 977.46
Secured loan repayments................. 128.65
Rent.................................... 65
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 65
Gas..................................... 44
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 4.12
Mobile phone............................ 70
TV Licence.............................. 11.61
Satellite/Cable TV...................... 39.61
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 25
Petrol/diesel........................... 120
Road tax................................ 17.5
Car Insurance........................... 26.37
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 45
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 25
Buildings insurance..................... 65
Contents insurance...................... 0
Life assurance ......................... 14.63
Other insurance......................... 9.2
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 2206.15

Assets
Cash.................................... 1700
House value (Gross)..................... 168000
Shares and bonds........................ 0
Car(s).................................. 6500
Other assets............................ 0
Total Assets............................ 176200

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 137000...(977.46)...8.5
Secured Debt.................. 4500.....(128.65)...0
Total secured debts........... 141500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................5449.35...10........0
credit card....................5000......72........0
credit card....................3000......56........0
loan...........................14500.....293.8.....0
credit card....................3000......100.......0
Total unsecured debts..........30949.35..531.8.....-

Monthly Budget Summary
Total monthly income.................... 2,058.2
Expenses (including secured debts)....... 2,206.15
Available for debt repayments........... -147.95
Monthly UNsecured debt repayments....... 531.8
Surplus(deficit if negative)............ -679.75

Personal Balance Sheet Summary
Total assets (things you own)........... 176,200
Total Secured debt...................... -141,500
Total Unsecured debt.................... -30,949.35
Net Assets.............................. 3,750.65

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

alex_zak_il

Have you considered debt consolidation? I see that you pay high interest rates on your credit card debt (credit card often charge high interest rates). Can not you consolidate the loans, preferably secure it with something, and then pay less each month?

Here are some good tips on debt consolidation:
http://www.allmoneytips.com/debt-consolidation.php

sambez

the loans we have are debt consolidation ones and they will be paid off in 5 and 7 years time. We couldnt borrow enough to consolidate everything. so are left with things all over the place. i will have a look at that site tho thanks.

sam

kittyscarlett

Hiya Sambez

There will be other people who will come along shortly with detailed comments on your SOA which will help enormously. Just wanted to say, I know this feels overwhelming but you are not on your own - there are many, many people here who have been in the same situation, and worse, and have worked their way through it one way or another. It will involve hard work and some lifestyle changes but you will have lots of support here

How many people and animals does the 200 a month for groceries cover ? You can probably cut this down a bit without going short - meal planning, downshifting brands, using up food from your storecupboard and freezer and reducing food waste will all help. Try the MoneySaving OldStyle board for lots of tips in that direction.

Good luck, you CAN do it !!

~Beanie~

sambez wrote: »

H i thanks

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 660
Partners monthly income after tax....... 1323
Benefits................................ 75.2
Other income............................ 0
Total monthly income.................... 2058.2

Monthly Expense Details
Mortgage................................ 977.46 - Can you go interest only for a while?
Secured loan repayments................. 128.65
Rent.................................... 65 - What is this for?
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 65
Gas..................................... 44
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 4.12
Mobile phone............................ 70
TV Licence.............................. 11.61
Satellite/Cable TV...................... 39.61
Internet Services....................... 0
Groceries etc. ......................... 200 - How many people?
Clothing................................ 25
Petrol/diesel........................... 120
Road tax................................ 17.5
Car Insurance........................... 26.37
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 45 - What is this?
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 25
Buildings insurance..................... 65 - How much??? :eek:
Contents insurance...................... 0
Life assurance ......................... 14.63
Other insurance......................... 9.2
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 2206.15

Secured Debts

Description....................Debt......Monthly...APR
Mortgage...................... 137000...(977.46)...8.5
Secured Debt.................. 4500.....(128.65)...0
Total secured debts........... 141500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................5449.35...10........0
credit card....................5000......72........0
credit card....................3000......56........0
loan...........................14500.....293.8.....0
credit card....................3000......100.......0
Total unsecured debts..........30949.35..531.8.....-

Monthly Budget Summary
Total monthly income.................... 2,058.2
Expenses (including secured debts)....... 2,206.15
Available for debt repayments........... -147.95
Monthly UNsecured debt repayments....... 531.8
Surplus(deficit if negative)............ -679.75


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

Have you contacted any of the debt charities? It may be a idea to hop over to the CCCS website and complete their online Debt Remedy. It is anonymous and suggests the best course of action for your circumstances.

Looking at your SOA though, you don't have any spare cash available at the end of each month to pay your creditors with.

You say you are self-employed yet only seem to bring in £660 per month. Is it worth it? You could get 1 full-time job paying double this.

dancingfairy

Please, please do not take advice from the newbie poster recommending consolidation. Advertising is not allowed and consolidation is a BAD IDEA. You end up paying a lot more over the longer term and also it sounds like the OP is trying to get you to secure it on your house - ie if you can't pay you loose you house. Please,please do not go down this route and get advice from a free charity.
df

GeorgeUK

Mortgage - If possible, change to interest only as Beanie mentioned.

Council tax............................. 108
Ask if you can pay over 12 months instead of 10

Electricity............................. 65
Gas..................................... 44
Look at the comparison sites to see if you are getting a good deal (uswitch, moneysupermarket). Make sure everything is turned off at might and try using energy saving lightbulbs.

Mobile phone............................ 70
PAYG?

Telephone (land line)................... 4.12
Satellite/Cable TV...................... 39.61
Internet Services....................... 0
Is this a package?

Groceries etc. ......................... 200
Have you moved down a brand? (shops own). Try looking at the old style board for meal plan ideas.


Car Insurance........................... 26.37
Pet insurance/vet bills................. 25
Buildings insurance..................... 65
Life assurance ......................... 14.63
Other insurance......................... 9.2
Again, compare prices and see if you can get the same for cheaper.

How much does your salary fluctuate by if this is the minimum you have put?

Are all your cards at 0% or do you just need to find out the interest rates?

Consolidating is rarely advised as it is only moving the debt and not dealing with the reasons as to why it has built up. You may also be paying more in the longrun if you are unable to overpay on a loan without penalty.

sambez

hi thx kittyscarlet for your support and encouragement.

We have 2 dogs and 3 cats, 2 adults and 1 nine year old. I childmind so i have 3 children to feed on a lunchtime as well 3 4 days a week.

Beanie -

Our mortgage is interest free believe it or not. Its a self cert but we are stuck with it because of our outgoings and the value of the house prices.

Rent is for a treatment room in a salon where i do massage and reflexology to bring in some more pennies, slowly building up a decent client base.

Buildings insurance - Its actually combined buildings & contents but didnt know what the split was. It is so high cos we got flooded last year and the insurers have hiked up the premium to nearly £700 a year from just under £300. We have tried to change but nowhere will touch us because of this one claim in 15 years of having insurance.

I could get a full time job but i doubt i would be much better off with childcare fees.

thx


sam

sambez

Hi George Thanks anyway but see below for my answers to your ideas.

GeorgeUK wrote: »

Mortgage - If possible, change to interest only as Beanie mentioned.

Council tax............................. 108
Ask if you can pay over 12 months instead of 10 We pay over 12 months already

Electricity............................. 65
Gas..................................... 44
Look at the comparison sites to see if you are getting a good deal (uswitch, moneysupermarket). Make sure everything is turned off at might and try using energy saving lightbulbs. We have tried the comparison sites and they cant beat what we are on, we have energy bulbs all over the house

Mobile phone............................ 70
PAYG? stuck in contracts until june

Telephone (land line)................... 4.12
Satellite/Cable TV...................... 39.61
Internet Services....................... 0
Is this a package? no but we dont have a BT line so cant get a package

Groceries etc. ......................... 200
Have you moved down a brand? (shops own). Try looking at the old style board for meal plan ideas. We use Asda Smart Price for most things


Car Insurance........................... 26.37 cheapest we could find
Pet insurance/vet bills................. 25 cheapest we could get
Buildings insurance..................... 65 only one we could get
Life assurance ......................... 14.63 cheapest we could get
Other insurance......................... 9.2 thats NI but there wasnt a box for that lol

Again, compare prices and see if you can get the same for cheaper.

How much does your salary fluctuate by if this is the minimum you have put?it can vary between that and £850

Are all your cards at 0% or do you just need to find out the interest rates? one of them is 0% the others im not sure i need to ring them

Consolidating is rarely advised as it is only moving the debt and not dealing with the reasons as to why it has built up. You may also be paying more in the longrun if you are unable to overpay on a loan without penalty.

There doesnt seem to be a lot we can do

sam