Debt Help Please

outatime_2

Hi

Can someone give me some idea which way to turn please?

here is my situation....

House worth £157,000 (estate agent valuation last week 155000-157000)
Mortage- 70k
2x secured loans - 23100 each remaining (total 46200k)
RBS credit card - 11500
Barc CC - 14550
egg cc - 11600
hal cc - 3500
cap1 cc - 7500

income wife 1000
mine self employed - about 850
w tax credit 600 (includes child creche payment)

As you can see we are in a bit of a pickle and its getting worse.
I wont go into the reasons behind why we have so much debt, but we have put a halt on spending on anything unnecessary. however we currently cannot pay everything.

any advise would be most welcome,
thank you

Caroline73_2

You need to post up a full SOA - so we can see your incomings and outgoings and then people will be able to help.

outatime_2

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 850
Partners monthly income after tax....... 1000
Benefits................................ 600
Other income............................ 0
Total monthly income.................... 2450
Monthly Expense Details
Mortgage................................ 535
Secured loan repayments................. 310
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20
Mobile phone............................ 70
TV Licence.............................. 11.61
Satellite/Cable TV...................... 28
Internet Services....................... 30
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 325
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 21
Contents insurance...................... 0
Life assurance ......................... 11
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1919.61

Assets
Cash.................................... 0
House value (Gross)..................... 157000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 162000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 70000....(535)......0
Secured Debt.................. 46200....(310)......0
Total secured & HP debts...... 116200....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
rbs............................11500.....258.......0
barc...........................14550.....291.......0
egg............................11600.....282.......0
cap 1..........................7500......222.......0
halifax........................3500......65........0
Total unsecured debts..........48650.....1118......-

Monthly Budget Summary
Total monthly income.................... 2,450
Expenses (including HP & secured debts). 1,919.61
Available for debt repayments........... 530.39
Monthly UNsecured debt repayments....... 1,118
Amount short for making debt repayments. -587.61
Personal Balance Sheet Summary
Total assets (things you own)........... 162,000
Total HP & Secured debt................. -116,200
Total Unsecured debt.................... -48,650
Net Assets.............................. -2,850
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Naarwich

outatime wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 850
Partners monthly income after tax....... 1000
Benefits................................ 600
Other income............................ 0
Total monthly income.................... 2450
Monthly Expense Details
Mortgage................................ 535
Secured loan repayments................. 310
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 20
Mobile phone............................ 70 - seems very high. Switch to PAYG
TV Licence.............................. 11.61
Satellite/Cable TV...................... 28 - can you go without this
Internet Services....................... 30 - looks high
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 325 - can you get this down either through less hours or salary sacrifice?
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 21
Contents insurance...................... 0
Life assurance ......................... 11
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1919.61

Assets
Cash.................................... 0
House value (Gross)..................... 157000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 162000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 70000....(535)......0
Secured Debt.................. 46200....(310)......0
Total secured & HP debts...... 116200....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
rbs............................11500.....258.......0
barc...........................14550.....291.......0
egg............................11600.....282.......0
cap 1..........................7500......222.......0
halifax........................3500......65........0
Total unsecured debts..........48650.....1118......-

Monthly Budget Summary
Total monthly income.................... 2,450
Expenses (including HP & secured debts). 1,919.61
Available for debt repayments........... 530.39
Monthly UNsecured debt repayments....... 1,118
Amount short for making debt repayments. -587.61
Personal Balance Sheet Summary
Total assets (things you own)........... 162,000
Total HP & Secured debt................. -116,200
Total Unsecured debt.................... -48,650
Net Assets.............................. -2,850
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

I've added some comments in Red however think that with a deficit of 587.61 per month you must contact CCCS to get their help immediately. Gvie them a call now to get an appointment booked and they'll help advise on your next steps. You've definitely made the first step towards tackling this...just make sure you maintain momentum to sort out your next steps. Good luck

Verbatim

Hi there outatime,

Your soa doesn't have a great deal of non essentials which you could cut except perhaps changing landline/satellite/internet to a one payment bundle. I think you can get these for around £15 with Virgin. Also your mobile bill is high so perhaps pay as you go might bring this down.

Is there any leeway on your mortgage payment? Could you go interest only for a while or move to a better deal. On the credit cards you have all down as 0%. Is this the case or are you unsure of the aprs at the moment? If they're all at 0% fantastic but if not is your credit history good so you could get a 0% card?

Other than that can you get more help with childcare costs and are you sure you're getting all the benefits you're entitled to? There's a link at the top to the CAB site I think.

Your best option would be to increase your income somehow (easier said than done!). Could you free up a bedroom and take a lodger or foreign student and or a second part-time job? There's also an up your income thread on here somewhere with loads of ideas for smaller sums which nonetheless add up to reasonable useful amounts.

Your grocery bill looks very reasonable but if you look at the old style board there are people who have managed to cut their bills back hugely while still eating really healthily. You don't say if are in a difficult situation which is likely to be only temporary or what your circumstances are so it's hard to be useful. I'm glad you posted and hope things start looking up once you get things under control again.

outatime_2

the phone is a combined internet/phone (btinternet) cant get out of it yet
the mobile is for 2 phones, my wife and mine. we both need them and would cost us more on PAYG, we tried that last year.
cant change credit cards, been refused a few times now, so I guess our credit rating is shot
do you think I could remortgage to clear all these debts?
or wouldn't they touch me with a 'probably' bad credit rating?

Caroline73_2

Why do you both need contract phones if you have a land line? Ar eyou using them for business - then they should be taken from a business budget not a household one.

You've also got nothing budgetted for clothes - with 3 children you will need some budget.

Can you put more hours in your business to earn more or is it lack of work? Could youconsider a paid job instead/as well as?

outatime_2

I need a contract phone for my business, and need internet at home, cant do more hours, I have to take what is there, which is very little at the minute.
I didnt budget for clothes etc, as we buy only when needed, which isnt every month.
To be honest we have looked at cutting back, and we dont really see where we can make such a difference.

isnt the remortgage idea an option?

Caroline73_2

With you outgoing commitments, secured loans and current incomings I don't think it would be an option avaialble for you.

Upping your income somehow needs to be your focus if you can't cut back. If there is little work then you have time to find another job - I'm self employed and I have a casual job as SE doesn't bring in enough.

If you use your mobile and internet for work it isn't household expenditure. Are you putting money aside for tax?

fatbelly

outatime wrote: »

isnt the remortgage idea an option?

Well it's AN option but not a good one.

It would mean converting unsecured debt to secured, putting your house at more risk.

The better option is the one Naarwich mentioned but didn't fully expand in post #4. Talk to CCCS and they will almost certainly set up a debt management plan for your unsecured non-priority debts.

You can afford to make significant payments towards them but at less than the contractual amounts. A £500 per month plan would give an 8-year plan (which is a long time) but would bring everything under control and give you space to develop your business maybe.

outatime_2

just paid the tax, what bit it was.
Tried the other work thing and I cant do both, one or the other, and to be honest i would struggle to get employed due to my health issues (but that is a different story) thats why I went self employed.
so what do I do? which do I choose to pay and which not too?
I apprieciate your help, but to be honest, 'get another job' doesn't help us much.