What do I do now???

Lightbulbmoment_2

Ok I dont know where to start and I dont want to make this long and boring.

Ok so I know I have issues with spending always have...

Me and my husband admitted to each other that we were in trouble, were in about £50,000 debt. Credit cards Loans, Bank Loans, Next card, sofa repayments etc... We realised last night that we dont have the money each month to actually pay for this...

We have about
£24,000 in Credit cards
£29,000 Loan

Im devistated, I cant believe I let this happen, I have no clue what to do now and neither does he.

We have a little girl and I work PT and he works full time we earn around £3,000 a month joint and we have more out goings that we do coming in.

Thanks for reading any help will be much appricated, I dont want to have to sell my lovely home.

Cass

ladybez

welcome to the boards. You will find plenty of help and support here. As a start why don't you post up a SOA, see sticky on front page and let the clever peeps on here make some suggestions to help you balance the books

looktothefuture

Hi and welcome... first off, don't panic - you've come to the right place! and secondly, post up a Statement of Affairs and lets see where we can find some savings to start off with!

Lightbulbmoment_2

MortgageHSBC£1,300Council Tax£130.00WaterThames Water£40Gas/ElectricN-Power£150House InsuMore Than£36Car Break-downRAC£15Life InsuHSBC£48Car InsuSwift Cover£36Car TaxJUNECar MOTJUNEMobile PhonesT-Mobile£80Contract Ends SeptemberSky£55Talk Talk£17Laptop Fee£15Ends 2011TV Licence£12GymParkwood Leisure£80Nursery Fees£320CREDIT CARDSMonthly owingsTotal OwingBrettAA£69£68Barclay£82£4,517Egg£27£1,235.38Sky£105£4,187.58Nat West£5£26.06CassVirgin£25£3,000.00Barclay £863,787.58Egg£143£7,153.50Loan£284£28,354.00Next£78£829.93Sofa£38£3,276£53,159
Ok Here we go!

This is so embarassingly shamefull.

Lightbulbmoment_2

I hope Ive done that right, it didnt look like that when I added it. ops!

saintly_2

well done for posting that its hard when its in black and red :-) to make it easier for you to understand and these wonderful people on this board maybe use this

http://www.makesenseofcards.com/soacalc.html

this can look at all your utility bills spending, then people can pass on advice on the best way to service your debts

good luck

x

Tixy

Hi and welcome to DFW

I'm sorry to be a pain when you've just filled in your SOA but could you do it in this format http://www.makesenseofcards.com/soacalc.html
because then we can see if you've missed anything out - eg you haven't got groceries, petrol, clothes, entertainment on yours.
Plus it really helps if we can see the balances and the APRs on the debt.

Don't panic!

Lightbulbmoment_2

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 1200
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2980
Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 116
Rent.................................... 1200
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 150
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 17
Mobile phone............................ 80
TV Licence.............................. 12
Satellite/Cable TV...................... 55
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 10
Petrol/diesel........................... 150
Road tax................................ 105
Car Insurance........................... 50
Car maintenance (including MOT)......... I DONT KNOW THIS
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 300
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 36
Contents insurance...................... 0
Life assurance ......................... 48
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 4099

Assets
Cash.................................... 0
House value (Gross)..................... 215000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 215000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 215000...(1200).....0
Hire Purchase (HP) debt ...... 0........(38).......0<
Next...........................829......(78).......0
Total secured & HP debts...... 215829....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................28354.....284.......0
CC.............................69........69........0
CC.............................4517......82........0
(Unnamed debt).................7153......143.......0
(Unnamed debt).................3787......86........0
(Unnamed debt).................3000......25........0
(Unnamed debt).................26........5.........0
(Unnamed debt).................4187......105.......0
(Unnamed debt).................1235......27........0
Total unsecured debts..........52328.....826.......-

Monthly Budget Summary
Total monthly income.................... 2,980
Expenses (including HP & secured debts). 4,099
Available for debt repayments........... -1,119
Monthly UNsecured debt repayments....... 826
Amount short for making debt repayments. -1,945
Personal Balance Sheet Summary
Total assets (things you own)........... 215,000
Total HP & Secured debt................. -215,829
Total Unsecured debt.................... -52,328
Net Assets.............................. -53,157

slig

Lightbulbmoment wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 1200
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2980
Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 116
Rent.................................... 1200 Is this a mistake? I hope so, because if you are paying rent and mortgage each month totalling £2400, no wonder you're in trouble? Can you adjust if it it's a mistake?
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 150 I'm not an expert on utilities, but this looks high. Are you making sure you're as energy efficient as possible?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 17
Mobile phone............................ 80 Woah, this is really high. Can you go down a band (phone and tell them you're in financial difficulty), and then go on PAYG or a more suitable contract when your current one runs out?
TV Licence.............................. 12
Satellite/Cable TV...................... 55
Internet Services....................... 0
Groceries etc. ......................... 400 this can be cut back - you can probably get it down to £200 with a bit of effort - have a look at the old style board
Clothing................................ 10
Petrol/diesel........................... 150
Road tax................................ 105 a month?? Is this right?
Car Insurance........................... 50
Car maintenance (including MOT)......... I DONT KNOW THIS See if you can work out a rough figure, eg divide the amount you've spent in the last year by 12
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 300
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 36
Contents insurance...................... 0
Life assurance ......................... 48
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 4099

Assets
Cash.................................... 0
House value (Gross)..................... 215000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 215000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 215000...(1200).....0
Hire Purchase (HP) debt ...... 0........(38).......0<
Next...........................829......(78).......0
Total secured & HP debts...... 215829....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................28354.....284.......0
CC.............................69........69........0
CC.............................4517......82........0
(Unnamed debt).................7153......143.......0
(Unnamed debt).................3787......86........0
(Unnamed debt).................3000......25........0
(Unnamed debt).................26........5.........0
(Unnamed debt).................4187......105.......0
(Unnamed debt).................1235......27........0
Total unsecured debts..........52328.....826.......-

Monthly Budget Summary
Total monthly income.................... 2,980
Expenses (including HP & secured debts). 4,099
Available for debt repayments........... -1,119
Monthly UNsecured debt repayments....... 826
Amount short for making debt repayments. -1,945
Personal Balance Sheet Summary
Total assets (things you own)........... 215,000
Total HP & Secured debt................. -215,829
Total Unsecured debt.................... -52,328
Net Assets.............................. -53,157

That is a big defecit you've got there, even if the rent payment is a mistake. But don't worry, there are always options, and someone will be able to help you find out what is best for you and your family. You might want to contact CCCS or another free debt management charity for advice.

Ames

Lightbulbmoment wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 1200
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 2980
Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 116
Rent.................................... 1200 why mortgage and rent?
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 150 this his high
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 17
Mobile phone............................ 80 ouch! Can you go PAYG?
TV Licence.............................. 12
Satellite/Cable TV...................... 55 This is a luxury that needs to go
Internet Services....................... 0
Groceries etc. ......................... 400 this is high, you can cut this down
Clothing................................ 10
Petrol/diesel........................... 150
Road tax................................ 105 a month? that's astronomical!
Car Insurance........................... 50
Car maintenance (including MOT)......... I DONT KNOW THIS
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 300
Other child related expenses............ 0 no school trips or clubs or anything?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 36
Contents insurance...................... 0 you should have this
Life assurance ......................... 48 I don't know much about this but it seems high
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 You really should have something here
Haircuts................................ 0 none of you ever have haircuts?
Entertainment........................... 0 you never go out or have a treat?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 4099

Assets
Cash.................................... 0
House value (Gross)..................... 215000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 215000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 215000...(1200).....0
Hire Purchase (HP) debt ...... 0........(38).......0<
Next...........................829......(78).......0
Total secured & HP debts...... 215829....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................28354.....284.......0
CC.............................69........69........0
CC.............................4517......82........0
(Unnamed debt).................7153......143.......0
(Unnamed debt).................3787......86........0
(Unnamed debt).................3000......25........0
(Unnamed debt).................26........5.........0
(Unnamed debt).................4187......105.......0
(Unnamed debt).................1235......27........0
Total unsecured debts..........52328.....826.......-

Monthly Budget Summary
Total monthly income.................... 2,980
Expenses (including HP & secured debts). 4,099
Available for debt repayments........... -1,119
Monthly UNsecured debt repayments....... 826
Amount short for making debt repayments. -1,945
Personal Balance Sheet Summary
Total assets (things you own)........... 215,000
Total HP & Secured debt................. -215,829
Total Unsecured debt.................... -52,328
Net Assets.............................. -53,157

I'm not the best at this but I've put a few comments in red. Have you shopped around for all the insurances? When they're due make sure you're getting the best deal and go through something like Quidco to get money back.

Your groceries are really high, you can easily cut them. Check out the old style board for tips on bulk cooking good meals.

You've got a few things missing, like presents. If you don't put something away every month then they'll just crop up and mess up your budget.

Hope that helps, someone better than me will be along soon.

Lightbulbmoment_2

slig wrote: »

That is a big defecit you've got there, even if the rent payment is a mistake. But don't worry, there are always options, and someone will be able to help you find out what is best for you and your family. You might want to contact CCCS or another free debt management charity for advice.

The rent is wrong, I didn't understand the sheet, Im in a bit of a mess, I probably didn read it properly, just desperate to get this sorted. Our mortgage is £1200.

Your right its a total mess! The mobile phone bill is for 2 people, the road tax is for 6 months, I have no idea what the MOT is on it, its an old car and what I know about cars you could write on a stamp.