I need help to get out of this mess

walshj77

Hi there,

I need a bit of help to get out of this mess. Right here we go -

Current situation. Living with my partner. We bought our house in Feb 2008 with an interest only 100% mortgage. Yes - you heard it - a 100% interest only mortgage. We are on a 2 year fixed rate. We are in neg equity at the moment and are very worried. We bought in West London.

We have three credit cards with a total of around £7,000 on them. We are on 0% for 12 - 15mth deals at the minute.

I had a grad loan for £10,000 which I am currently paying £240 a month on.
Partner has a loan for around £7000 currently paying £140 a month on.

We earn around £59,000 joint income a year.

I would like to get us debt free. Any help. Very worrying times. Unfortunately, we were subject to the easy money thing! I was in a very unstable job for about 2 years and was a student in London so have student debts still hanging over me. We are now both in very stable jobs which will all hopefully be safe during the coming onslaught!

Looking for a little bit of sympathy but also a kick up the backside!

walshj77

walshj77 wrote: »

We are on a 2 year fixed rate.

The fixed rate will end 2010. Forgot to mention

CLAPTON

post up some numbers and lets see whats what

http://www.makesenseofcards.com/soacalc.html

walshj77

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1597
Partners monthly income after tax....... 1900
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3497

Monthly Expense Details
Mortgage................................ 900
Secured loan repayments................. 380
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 50
Gas..................................... 0
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 30
Mobile phone............................ 80
TV Licence.............................. 11
Satellite/Cable TV...................... 17
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 6
Petrol/diesel........................... 65
Road tax................................ 0.67
Car Insurance........................... 13
Car maintenance (including MOT)......... 1
Car parking............................. 10
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 67
Pet insurance/vet bills................. 12
Buildings insurance..................... 5.79
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 30
Entertainment........................... 100
Holiday................................. 38
Emergency fund.......................... 0
Gym..................................... 138
Mum Dad Loan............................ 100
Car..................................... 140
Total monthly expenses.................. 2605.46

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

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 172500...(900)......6.19
Secured Debt.................. 0........(380)......0
Total secured debts........... 172500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin.........................5500......25........0
Alliance.......................399.......25........0
Barlcays.......................1900......50........0
Nick Loan......................7000......140.......7.5
Graduate.......................10000.....240.......7.9
Total unsecured debts..........24799.....480.......-

Monthly Budget Summary
Total monthly income.................... 3,497
Expenses (including secured debts)....... 2,605.46
Available for debt repayments........... 891.54
Monthly UNsecured debt repayments....... 480
Surplus(deficit if negative)............ 411.54

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total Secured debt...................... -172,500
Total Unsecured debt.................... -24,799
Net Assets.............................. -194,299

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

98jdougl

well with the spare £400 you have every month why not throw some more at your debts?
Have yet to have a full look through, just noticed that figure

walshj77

This is true - but we never seem to have that much left at the end!!!! Don't know where it all goes - which is probably our problem!!!

becky_rtw

Hi Walsh,

Others will be along to suggest further cuts etc you could make but try:
https://www.spendingdiary.com

Helps you track all those coffees etc and find out where the £400 is going!

CLAPTON

you're in the lucky position of deciding whether you wish to spend your money on yourselves or repay debt

so there's no need to spend
80 on mobiles
100 on entertainment
185 on gym

as far as the 400 surplus is concerned start to keep a spending diary and write down everything you spend so you better understand where it all goes.

but as I say, you're in the lucky position of being able to choose what you want to do.

doodledo_2

Hi and welcome to the forum.

Couple of things jump out to me:

Mobile phone bill is high even if for two people. Some good deals around if you aren't tied in shop around and see if you can get this down.

Groceries if for two people is a little high, check the Old style board on here for ideas you could probably get this down to £150 or less.

Medical fees are high, whats this for? Although appreciate you may not want to disclose this on a forum so forgive me if personal.

Gym membership is huge, can tell I am outside London lol. Do you both use this enough to justify this expense?

You already have almost £500 spare a month so really should be in a good position to pay back your debts. It sounds like some form of debt diary is required so you can see exactly where that money is going.

Good luck with your journey

walshj77

Thats so much help! Thanks!!!!

This site it top dogs!

Didn't feel that yesterday when i spoke to scary people in the mortgage forum!

MYLITTLESISTERLOLA

Quick question is the gym amount for a monthly membership or are you buying the gym in installments _pale_

Also what is the secured loan repayment for ?