debt free wannabe

stressedred

Well guys you can see im well and truly upto the neck. i need advice on getting back in the black. a few pointers the net income for me is a guaranteed £1000 sometimes its a little bit more as im doing two jobs driving instructor and owner driver courier, thats why we have 3 vehicles. so in the morning i do courier work afternoon driving school then back on to courier sometimes working 14 - 26hrs aday depends what work.
i was going to do an IVA but we need the cars for work purposes, the only way would to get rid of the driving school car as that is the dearest and the least i get a income from. My mortgage is fixed rate with redemption fees which are £5000 its in two parts 1 5yr at 5.4% £816992 10yr fixed £26000 at 6.4% both over 17yrs
hope this helps



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 3
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 1100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2100
Monthly Expense Details
Mortgage................................ 880.96
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 451.6
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 39
Gas..................................... 46
Oil..................................... 0
Water rates............................. 34.89
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 22
Groceries etc. ......................... 200
Clothing................................ 15
Petrol/diesel........................... 240
Road tax................................ 27
Car Insurance........................... 90
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 125
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 12
Contents insurance...................... 11
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2424.4

Assets
Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 0
Car(s).................................. 14000
Other assets............................ 4500
Total Assets............................ 163500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(880.96)...0
Hire Purchase (HP) debt ...... 0........(451.6)....0
Total secured & HP debts...... 0.........-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan car.......................5300......142.7.....0
loan car Driving scho..........7250......218.8.....0
loan van Courier work..........3000......90........17
Total unsecured debts..........15550.....451.5.....-

Monthly Budget Summary
Total monthly income.................... 2,100
Expenses (including HP & secured debts). 2,424.4
Available for debt repayments........... -324.4
Monthly UNsecured debt repayments....... 451.5
Amount short for making debt repayments. -775.9
Personal Balance Sheet Summary
Total assets (things you own)........... 163,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,550
Net Assets.............................. 147,950
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

theoretica

I don't think things are quite as bad as shown as it looks like you have entered your car loans twice- once as HP agreement and once as unsecured loans?

The first thing to jump out is separating your business and personal expenses to be sure the right things are coming out of your pre-tax pay and make it clearer how well your businesses are doing. For instance your car insurance and petrol- if these are for work then they should be coming out of your income before tax and would be clearer shown reducing your income rather than on your personal SOA, also the car loans and tax for the work cars. With these taken off the £1000 it looks to me like you are working really hard and not getting a fair return- is this correct?

consultant31

stressedred wrote: »

so in the morning i do courier work afternoon driving school then back on to courier sometimes working 14 - 26hrs aday depends what work.

Maybe you could make extra money teaching people how to work 26 hours a day (sorry not meaning to be flippant, it just caught my eye and made me smile)

stressedred

all fingers and thumbs never noticed.
Now you can see why im in the pooh
ref £1000 thats what i know i can clear after taking insurance, car, etc out.

With regards the car i have not yet fell behind with payments, what happens when i do , do they reclaim the car i still keep paying? i only need to get through to october then the car can be returned under right to cancel the agreement

MrsTinks

Right so you have shown your income AFTER you have deducted the running costs? Have you then removed the running costs from your budget too? Otherwise I'm looking at this and going "SELL THE CARS AND FIND A JOB THAT PAYS £100 A WEEK!" you'd be better off!

stressedred

£4500 its a caravan, using the soa i may have miss understood it. basically i have less money coming in tham going out.

ill struggle along ill get by work harder earn more, get through the reccession buzzing

fatbelly

Think you might find this useful

Factsheet | How to deal with Hire Purchase debt

tomterm8

Have you got any equity in the house? Is it possible to go on an interest only mortgage?

theoretica

According to your SOA if I understand correctly and the work costs are taken out before you have £1000 left you should be coming out ahead every month by about £300 so the question becomes how is your spending in reality differing from the SOA. I prefer looking back over bank statements to see where it all went (Starbucks? sandwiches? ipod?) other people advise keeping a spending diary as writing everything down can discourage spending.

stressedred wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 3
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 1100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2100
Monthly Expense Details
Mortgage................................ 880.96
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 451.6 double entry
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 39
Gas..................................... 46
Oil..................................... 0
Water rates............................. 34.89
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 22
Groceries etc. ......................... 200
Clothing................................ 15
Petrol/diesel........................... 240 say 40? -rest for work
Road tax................................ 27 mostly work?
Car Insurance........................... 90 mostly work?
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 125
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 12
Contents insurance...................... 11
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2424.4 (1655.8 without the things marked work)

Assets
Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 0
Car(s).................................. 14000
Other assets............................ 4500
Total Assets............................ 163500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(880.96)...0
Hire Purchase (HP) debt ...... 0........(451.6)....0
Total secured & HP debts...... 0.........-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan car.......................5300......142.7.....0
loan car Driving scho..........7250......218.8.Work
loan van Courier work..........3000......90....Work
Total unsecured debts..........15550.....451.5(142.7 + work debts)

Monthly Budget Summary
Total monthly income.................... 2,100
Expenses (including HP & secured debts). 2,424.4 (1655.8)
Available for debt repayments........... -324.4 (+444.2)
Monthly UNsecured debt repayments....... 451.5 (142.7)
Amount short for making debt repayments. -775.9 (+301.5)
Personal Balance Sheet Summary
Total assets (things you own)........... 163,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,550
Net Assets.............................. 147,950
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.