Ok- New Start but not sure what to do

little_squeaker

Hi All

I have come across this site but lurked for a while. I did the budget thing and had a shock, been over spending etc and now in a mess but a manageable one i hope.

I bit of background.

I am married and 29, have huge mortgage and a lot of debt, some through my own fault but alos becuase for 6 years i have suported my disabled mum as her benefits didnt cover things. i.e food, heating etc

Debt wise i have been silly, having no money left from my wages has meant me putting it on card, too easy and too stupid and now i regret everything and needed to do the budget and have been in tears most days due to the mess.

So here it is.

I have a joint loan with hubby from buying new windows two years ago when we brought house, have £7,600 left on that over 27 months, roughly £291 a month between us. I borrowed £16k against house to consolidate a debt as it was cheaper. I have Credit card of my own just moved to ayears interest free thats at £2500k interest free i have HSBC on £500 at 16.9 but gonna move that to interest free. Hubby and i have joint credit card of £5700 but have just moved to interest free from another interest free end period.

Between us we have £45k of debt plus house, am currenty fighting a court case which could result in clearing it but will go on for years so its a pain.

We earn good money but have made some mistakes, i want kids next year and worried as i want to clear as much as possible.

I dont know what to do and find the SOA hard as some debts are joint etc and doesnt help me account for supporting mum. This is hopefully cahnging as getting my other siblings involved but they might refuse again.

So, where do i start??? i dont want to loose house, i feel so stupid on how easy it is to let it spiral out of control.

Please help and sorry if this is wrong place .x

LittleMissKitty

I'm sorry I don't have any advice as I'm brand new too but I just wanted to say don't worry, everyone here's so helpful I'm sure you'll get great advice. Hang on in there :grouphug:

Kitty

Horace

Hi and welcome

Please try and put up an SOA so that we can see what is coming in and what is going out and where it is going. https://www.makesenseofcards.com/soacalc.html there is a button called MSE to formulate it to here then just copy and paste it here.

Have you spoken to one of the debt charities such as National Debtline as they should be able to assist? With regard to your mum is she getting all she is entitled to? Does she get disability living allowance?

little_squeaker

The calculator is evil and cant seem to work it out as although married we manage our own debts etc sounds wierd but works!

Will have a go but might need to edit it myself after for it to make sense

Yes mum is gettinge verything she can but as us all she had a card and the debt is £90 a month and her ex left her in debt so same issue

x

little_squeaker

Ok this is wierd and not quite right to me so will answer any questions:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450
Monthly Expense Details
Mortgage................................ 484
Secured loan repayments................. 150
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 110
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 16
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 28
Pet insurance/vet bills................. 21
Buildings insurance..................... 16
Contents insurance...................... 0
Life assurance ......................... 32.5
Other insurance......................... 5
Presents (birthday, christmas etc)...... 40
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Joint Credit Card Half of............... 50
Solictor fund........................... 50
New Bed Finance......................... 11
Mortgage Link Loan2 .................... 65
Mortgage Link Loan1 .................... 35
Mum..................................... 25
Total monthly expenses.................. 1278.5

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 187000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 161239...(484)......5.7
Secured Debt.................. 7569.....(150)......7.9<
Mortgage Link Loan2............9988......-.........0<
Mortgage Link Loan1 ...........5963......-.........5.7
Total secured & HP debts...... 184759....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclays Card..................2500......50........0
HSBC...........................500.......10........16.9
Joint Egg Card.................5500......80........0
Total unsecured debts..........8500......140.......-

Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 1,278.5
Available for debt repayments........... 171.5
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 31.5
Personal Balance Sheet Summary
Total assets (things you own)........... 187,000
Total HP & Secured debt................. -184,759
Total Unsecured debt.................... -8,500
Net Assets.............................. -6,259
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

little_squeaker

doesnt make any sense to me, this is based on new budget that i worked out after doing the mse budget i.e. taking everyhting into account, vet bills over year i.e. worming, insurnace, injections (have two animals)

We are paying £65 cobined for critical life cover and death on our mortgage as we brought via bank....im guessing this is big as we have started to get money down

little_squeaker

What i want to do is clear my debt and sort it out really I know i ahev nobody knocking on my door yet but dont want to get to that stage either.

laura2481

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450
Monthly Expense Details
Mortgage................................ 484 (is this between you and OH, or each!):eek:
Secured loan repayments................. 150
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0(no council tax?)
Electricity............................. 0(or utilities?)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0(as above)
Telephone (land line)................... 0
Mobile phone............................ 50(this is very high! Pay as you go could be cheaper?or cheaper contract eg £9 per month with 3)
TV Licence.............................. 0 (no tv licence either?)
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 110 (this very little, do you really spend this, or is it actually more?)
Clothing................................ 10 (this may have to stop for a while)
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 16
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 28 (every month? Pre-pay prescription could be cheaper?)
Pet insurance/vet bills................. 21
Buildings insurance..................... 16
Contents insurance...................... 0
Life assurance ......................... 32.5 (does seem quite high. I pay about half this)
Other insurance......................... 5(what's this? Is it essential)
Presents (birthday, christmas etc)...... 40 (£480 per year on presents. perhaps it's time to discuss limits with people eg no more than £50 on OH at xmas/bday etc)
Haircuts................................ 10
Entertainment........................... 20(again, this may have to be sacrificed for a while, or cut back)
Holiday................................. 0
Emergency fund.......................... 0
Joint Credit Card Half of............... 50
Solictor fund........................... 50
New Bed Finance......................... 11
Mortgage Link Loan2 .................... 65
Mortgage Link Loan1 .................... 35
Mum..................................... 25
Total monthly expenses.................. 1278.5

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 187000

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 161239...(484)......5.7
Secured Debt.................. 7569.....(150)......7.9<
Mortgage Link Loan2............9988......-.........0<
Mortgage Link Loan1 ...........5963......-.........5.7
Total secured & HP debts...... 184759....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Barclays Card..................2500......50........0
HSBC...........................500.......10....... .16.9 (really need to overpay this if possible as the minimum is only 2% and you wil be paying this off forever at this rate)
Joint Egg Card.................5500......80........0
Total unsecured debts..........8500......140.......-

Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 1,278.5
Available for debt repayments........... 171.5
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 31.5
Personal Balance Sheet Summary
Total assets (things you own)........... 187,000
Total HP & Secured debt................. -184,759
Total Unsecured debt.................... -8,500
Net Assets.............................. -6,259

Hi! Welcome to the boards! my BF and I do a similar thing to you guys- we have a joint account for bills and mortgage, but everything else is seperate! My debts are my problem Anyway, have left a few comments in red. It's also a good idea to keep a spending diary to see where you're money goes because i bet you don't feel like you have £30 left at the end of the month!!.

Good luck

little_squeaker

Hi laura2481

To try and answer some of your points (hope i make sense)

Mortgage is my half our total mortage is 968 a month without insurances which we are trying to get down, big mortgage of £161k and cant get that any cheaper trust me. got a discount by using hsbc plus as offered cheaper rate and free holiday insurance.

As other hlaf earns a bit more the agreement is that he pays the bits i have a zero for, so its my car but i dont use it (saving money) so he needs it for work (needs to go to site etc) so i only pay for the car tax and a tank of fuel a month.

Mobile phone am trying to get down but payg would be no good to me as need phone to contact terminally ill dad and disabled mother, paying freinds and family to get calls free and i need them lol but investigating a lower tariff.

That is all i spend for food, other half does the same, this also buys cat food and i admit we struggle for food and are v v v good with meal planning.

The medical is dentist a month and allowing for £10 a month twoards the prepayent as i need 7 items a month so it works out cheaper, doing dentist as i had £360 pounds of work last year and will need more work so joined denplan.

The £5 is my personal life insurnace which i have had for a few years and pays out a set amount, not worht stopping as i have paid for several years and it pays out £86k if i die.

Xmas and birthdays is such a pain got 7 neices and nephews and sister in law who is a right cow, i spent about £10 - £15 on each for both so thats a lot so thinki= im gonna be the dark sheep of family but tough. I agree it cant continue

Had a smack in the teeht yesterday, egg initially agreed a £5500k interest free card but after i signed and they did their checks its come down to £2500 interest fre limit and doesnt cover the amount...so angry! which means we have the joint credit card coming off interest free in March neither of us can get anohter card so we are stuffed

Going to over pay HSBC as sat down with other half last night, but be able to move the HSBC to my interest free barclay card so gonna look into that.

I get paid tommorrow so starting it from tommorrow. Got two saving accounts set up which im moving things around on and going to overpay as much as poss but according to new budget break down i have £17 a month left so will have to see.

My last treat was seeing confessions of a shopaholic (took own snakcs) how appropriate :rolleyes:

raq

your apr is good on your morgage, but what terms have you this over or could you switch to interest only for a while.

little_squeaker

Hi Raq

Its over 25 years now, was 30 and looked into changing it but tehre are fees attached so no point. I think i got the APR wrong apparently its 5.4%