Incomings V Outgoings - not good!

Han_Montana

My outgoings are now larger than my incomings and i'm struggling.
I've added it all up and somehow i seem to be in a situation only an IVA will help me out of.... however i read they're not a good option.
Any advice please?

DevonGirl

Hi Han and welcome! :beer:

Would you like to provide more details so the gang on this thread can help you better. IVAs are just one debt option which may or may not be suitable to your own situation.

The easiest way for people to see where the problem lies is if you do a Statement of Affairs (SOA). Here's a link http://www.makesenseofcards.com/soacalc.html

It would also be a good idea to read the Sticky at the start of the DFW forum, Help for First Time Posters and SOA calculator which provides good info.

Best wishes
DG

Han_Montana

Monthly Budget SummaryAmount(£)Total monthly income1,500Monthly expenses (incl. HP & secured loans)1,465Available for debt repayments35UNsecured debt repayments317Amount short for making debt repayments-282

Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)75,500Total Secured & HP Debt-75,700Total Unsecured Debt-18,400Net Assets-18,600
Household Information

Number of adults in household1Number of children in household0Number of cars owned0

Ames

It would be better if you could do a full SOA, including all your outgoings. That's where people will be able to see you can cut down and offer loads of help.

newlywed

If the only amount you have available for debts each month is £35 then I don't think you can get an IVA - think you have to have a minimum of £200 a month?

If you post your full SOA then we can all help to see where you may be able to cut some outgoings.

Han_Montana

Sorry i hope this is better:

Summary

Monthly Budget SummaryAmount(£)Total monthly income1,500Monthly expenses (incl. HP & secured loans)1,158Available for debt repayments342UNsecured debt repayments317Amount left after debt repayments25

Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)75,500Total Secured & HP Debt-75,700Total Unsecured Debt-18,400Net Assets-18,600
Household Information

Number of adults in household1Number of children in household0Number of cars owned1
Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax1500Partners monthly income0Benefits0Other income0Total monthly income1500

ExpensesAmount(£)Mortgage535Secured/HP loan payments180Rent0Management charge (leasehold property)0Council tax70Electricity60Gas0Oil0Water Rates22Telephone (land line)20Mobile phone30TV Licence0Satellite/Cable TV0Internet services18Groceries etc.80Clothing0Petrol/diesel40Road tax0Car Insurance35Car maintenance (including MOT)0Car Parking0Other travel0Childcare/nursery0Other child related expenses0Medical (prescriptions, dentists, opticians etc.)0Pet Insurance/Vet bills0Buildings Insurance15Contents Insurance15Life Assurance15Other Insurance23Presents (birthday, christmas etc.)0Haircuts0Entertainment0Holiday0Emergency Fund0Total monthly expenses1158

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage67000(535) 0Secured Debt8700(180)0Secured & HP Debt totals75700- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)Egg3400720Barclaycard100002000Virgin4000250Sainsburys1000200Unsecured Debt totals18400317-

Asset DescriptionValue (£)Cash0House Value (Gross)75000Shares and bonds0Car(s)500Other assets (e.g. endowments, jewellery etc) 0Total Assets75500

newlywed

Just to make it easier for others to read:


Summary

Monthly Budget SummaryAmount(£)
Total monthly income 1,500
Monthly expenses (incl. HP & secured loans) 1,158
Available for debt repayments 342
UNsecured debt repayments 317
Amount left after debt repayments 25

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own) 75,500
Total Secured & HP Debt-75,700
Total Unsecured Debt -18,400
Net Assets -18,600
Household Information

Number of adults in household 1
Number of children in household 0
Number of cars owned 1

Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax 1500
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1500

ExpensesAmount(£)
Mortgage 535
Secured/HP loan payments 180
Rent 0
Management charge (leasehold property) 0
Council tax 70
Electricity 60
Gas 0
Oil 0
Water Rates 22
Telephone (land line)20
Mobile phone 30
TV Licence 0
Satellite/Cable TV 0
Internet services 18
Groceries etc. 80
Clothing 0
Petrol/diesel 40
Road tax 0
Car Insurance 35
Car maintenance (including MOT) 0
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 0
Pet Insurance/Vet bills 0
Buildings Insurance 15
Contents Insurance 15
Life Assurance 15
Other Insurance 23
Presents (birthday, christmas etc.) 0
Haircuts 0
Entertainment 0
Holiday 0
Emergency Fund 0
Total monthly expenses1158

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)
Mortgage 67000 (535) 0
Secured Debt 8700(180) 0
Secured & HP Debt totals 75700- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)
Egg 3400 720
Barclaycard 10000 2000
Virgin 4000 250
Sainsburys 1000 200
Unsecured Debt totals 18400 317-

Asset DescriptionValue (£)
Cash 0
House Value (Gross)75000
Shares and bonds 0
Car(s) 500
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 75500

Horace

Hi and welcome - it is still difficult to read as everything flows into each other..did you follow the instructions on the webpage so that it can be formatted for MSE then you can copy and paste it here.

You will need the APRs on the credit cards too so that we can which one you could pay off first.

If you have anything to sell then sell it on ebay or at a carboot.

Take in a lodger as that may help.

Keep a spending diary so you know where you are spending money.

Just some suggestions.

DevonGirl

newlywed wrote: »

Just to make it easier for others to read:


Summary

Monthly Budget SummaryAmount(£)
Total monthly income 1,500
Monthly expenses (incl. HP & secured loans) 1,158
Available for debt repayments 342
UNsecured debt repayments 317
Amount left after debt repayments 25

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own) 75,500
Total Secured & HP Debt-75,700
Total Unsecured Debt -18,400
Net Assets -18,600
Household Information

Number of adults in household 1
Number of children in household 0
Number of cars owned 1

Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax 1500
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1500

ExpensesAmount(£)
Mortgage 535
Secured/HP loan payments 180
Rent 0
Management charge (leasehold property) 0
Council tax 70
Electricity 60 - can you change provider to get this down abit, or maybe less tumble drying, lights left on etc?
Gas 0
Oil 0
Water Rates 22
Telephone (land line)20
Mobile phone 30 - cheaper tariffs around, or PAYG?
TV Licence 0
Satellite/Cable TV 0
Internet services 18
Groceries etc. 80 - well done!
Clothing 0
Petrol/diesel 40
Road tax 0
Car Insurance 35
Car maintenance (including MOT) 0 you should put something aside here
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 0
Pet Insurance/Vet bills 0
Buildings Insurance 15 - might be cheaper if you combine buildings and contents?
Contents Insurance 15
Life Assurance 15
Other Insurance 23 - what is this, is it necessary
Presents (birthday, christmas etc.) 0 - something needed here
Haircuts 0
Entertainment 0 - something needed here (gotta live!)
Holiday 0
Emergency Fund 0 - something needed here!
Total monthly expenses1158

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)
Mortgage 67000 (535) 0
Secured Debt 8700(180) 0
Secured & HP Debt totals 75700- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)
Egg 3400 720
Barclaycard 10000 2000
Virgin 4000 250
Sainsburys 1000 200
Unsecured Debt totals 18400 317-

Asset DescriptionValue (£)
Cash 0
House Value (Gross)75000
Shares and bonds 0
Car(s) 500
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 75500

Just a few ideas as above, but your budget looks quite healthy. I would suggest (as Horace said) that you keep a spending diary for a month to see if this is really what you spend. It may be that you spend a bit more (and to be honest I think one of the debt charities (CCCS, Payplan etc) would probably give you a more generous budget). Certainly an emergency fund is needed as if/ WHEN!! you cut up your c/cards you will need some money to fall back on for unexpected items.

Assuming I've read it right you seem to have enough to make extra payments to your creditors (ie. Income 1500 - Expenses 1158 = 342).

You could try the 'snowball method' of working out how much you have for creditors and then paying the minimum on all but the most expensive one, to which you pay as much as you can, thereby being the quickest and cheapest way to pay them off.

Alternatively you may want to contact one of the debt charities such as CCCS, Payplan, CAB, CAP etc to see what they suggest. It may be that an IVA is not necessary, as per your original post. CCCS has an 'on-line debt remedy' which is completely anonymous. Takes about 20 minutes to put in all your financial details and they give you an instant response. Only if you wish to take it further do you have to give any personal details like name/address etc.

Hope this helps
DG