New member, facing up to debts.

sarahs999

I'm with monkey. Trimming budgets is like putting an elastoplast on a broken leg here... I think for a DMP you need to have a surplus at the end of the month, is that right?

selling and moving in with partner is the key here. Howmuch of your debt do you think you can pay off when you sell?

boo80

Is your house likely to sell quickly? What kind of rent/mortgage will you be paying once you in with your partner? How much will the move effect your cost of living?

I don't really know what I'm taking about but Numpty is right, atm you're £913 short. Once the house is sold you could almost cut your debts in half, and your repayments, but if it doesn't happen quickly its not going to help you anytime soon. Are you going to have more or less money for repayments once you move? Could you contact your creditors and let them know that you're have finacial difficulties atm but things are set to improve in the near future (if they are)? Good luck with everything, Boo.x

boredofbeingathome

Elmo67 wrote: »

Hello all,

I have been reading board for a day or so and have now registered.

I have a last confronted my situation and realised I need to take action as I cant go on like this anymore. I did the SoA and it is below. From what I have read so far I think a DMP would probably be best for me but happy to receive any advice.

The figures are scary when you add them all up and I had been burying my head in the sand. :eek:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 2065
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2065
Monthly Expense Details
Mortgage................................ 846apply to put this on interest only until house is sold..if NR they will do this for £70 and put fee on mortgage, check for any mortgage holidays you can take
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92spread over 12 months
Electricity............................. 62lower if you can
Gas..................................... 62
Oil..................................... 0
Water rates............................. 11
Telephone (land line)................... 12talk talk do a new package for around £6.50 landline and broadband with free evening calls check on deals available
Mobile phone............................ 45you can barter this down now
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20see above
Groceries etc. ......................... 150i feed 4 a month off this you can certainly get some leverage here
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 18
Contents insurance...................... 0
Life assurance ......................... 34i pay £20 for us both you can get this down quite easily
Other insurance......................... 35and this
Presents (birthday, christmas etc)...... 10cut out and make friends with loyalty cards or ebay to become present neutral lots of threads on this
Haircuts................................ 0
Entertainment........................... 100ooerrr this can go, look at the freebie board and get free cinema tickets, DVD trials and join the library or take up a hobby
Holiday................................. 20what will you spend on hols put the money to better use, or share a tent
Emergency fund.......................... 0
Total monthly expenses.................. 1559

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 160000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(846)......0
Total secured & HP debts...... 130000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Marbles........................11000.....238.......24.93
Barclaycard Visa...............17400.....380.......17.9
Barclaycard Mastercar..........12063.....240.......16.9
Northern Rock..................18000.....286.......7
Capital One....................6053......182.......14.47
Tesco Credit Card..............3080......93........18.34
Total unsecured debts..........67596.....1419......-

Monthly Budget Summary
Total monthly income.................... 2,065
Expenses (including HP & secured debts). 1,559
Available for debt repayments........... 506
Monthly UNsecured debt repayments....... 1,419
Amount short for making debt repayments. -913
Personal Balance Sheet Summary
Total assets (things you own)........... 160,000
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -67,596
Net Assets.............................. -37,596

Hi and welcome to the boards. I hope you can make use of some of the suggestions and begin to take control of your debt.
Have a look at the up your income thread, think of absolutely everything you can to get this down, speak to debt management charity and get all perspectives.

theoretica

I agree selling your house is the key- how soon is soon? How realistic and current is your valuation?

What is your credit rating like? If you have no defaults at the moment it might be worth looking at how to keep your credit rating, and going onto a DMP would ruin it. If you can sell the house very rapidly and pay off a large chunk of your debts then living frugally with your partner (I assume you would be paying less towards the mortgage/rent than you currently are) you might be able to sort the remaining debts out without going into default.

Also look at how you built the debt up and make sure you don't do so again!

Elmo67

Thanks for all of the responses. I will reply in greater length later on.

It is really appreciated.

Elmo67

Okay, I will try and answer all of the questions as well as possible.

Firstly the house valuation I think is realistic. A house exactly the same up the road from me is on for £7.5K more.

If I sold the house for the asking price I would clear around £30K after all costs have been paid.

When I move in with my partner, there is no mortgage on that house. My half of the "running costs" bills, food etc will come to £400 per month total. So this will free up a lot of my income to tackle my debts.
The problem I have is I dont know how long it will take to sell and I need a solution for the intermediate period, and also the long term as I will still have nearly £40K of debt once this is done.

Unfortunatley I will have to rehome my pets due to the situation at my partners place ( I have two cats and she has two dogs).

I was thinking of doing this as soon as I can then effectively, shutting my house down until it is sold. Ie cut off most of services etc to reduce outgoings.

I am looking at the insurances / utilities etc for the short term to try and reduce those.

Again many thanks for all comments and replies. It has helped a lot

Johnny_Chaos

Selling your house is all very well and good, but how long will it be on the market in the current climate? It might take two years to sell, and your financial situation may be very different when you finally get around to selling it. Thinking long term, it might be better to hang on to your house.

You say there is only one adult in your house. Have you thought about taking in a lodger? May be a way to generate some extra income till you sort yourself out.

That is a large amount of debt. It might be worth sitting down with an advisor or talking to one of the debt charities for advice.

Elmo67

Thanks Johnny, I have contact PayPlan and had a response back, will be calling them soon.

If my house does not sell in next couple of months I had considered moving out and renting it. Although it will not cover the mortgage, it would provide more income to assist me.