Lost

intoodeep_2

I don't even know where to begin anymore. I feel so sickened by the amount of debt I've got myself and my wife into. This all seems like a nightmare. I want someone to reset my life. I feel like I've stumbled into this blindfolded, and have carried on regardless of the consequences. Unsurprisingly I'm not sleeping, (mind you our 5 month old is also contributing) but worse, I feel I'm not living anymore. I feel like a ghost.

My SOA below only tells part of the story. The second mortgage we have is on a buy to let property we idiotically got into last year. It's been a disaster. Ive spent 10's of thousands on it - from no tenants to recently £4500 on major works. New tenants currently in are leaving me with a £400 shortfall, but I have just found out they are now a month in arrears, and they have only been in for two. As a result we are now one month in arrears on that mortgage.(£1900) I want desperately to sell, but a few months ago was told we wouldn't get any where near the £420K we need to get out - possibly £380K.

My wifes tax bill has been defered to this month, and we are going to try and to get them to carry on allowing us to make a token payment.

Work is the only thing keeping me going - I have the possibility of being given a small share of the business I work in, but as it means becoming a Director I'm terrified of bankrupcy. (Not only that. Four years ago, after a terrible divorce, I had to help my mom bankrupt herself - my father had taken out loans and cards in her name and had left her destitute. It was the worst experience I had gone through - this is starting to feel that way)

I'm hanging on by my finger nails. Please help.

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................ 2172.64
Partners monthly income after tax....... 260
Benefits................................ 657
Other income............................ 0
Total monthly income.................... 3089.64

Monthly Expense Details
Mortgage................................ 1272
Secured/HP loan repayments.............. 400
Rent.................................... 0
Management charge (leasehold property).. 350
Council tax............................. 160
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 25
Mobile phone............................ 90
TV Licence.............................. 15
Satellite/Cable TV...................... 45
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 50
Road tax................................ 180
Car Insurance........................... 130
Car maintenance (including MOT)......... 250
Car parking............................. 110
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 198
Life assurance ......................... 125
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 125
Entertainment........................... 50
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 4125


Assets
Cash.................................... 0
House value (Gross)..................... 785000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 786000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 263000...(1272).....5.59<
Buy to Let Mortgage............400000...(400)......5.17
Total secured & HP debts...... 663000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
natwest loan...................16843.....284.......9.7
aa loan........................7000......160.......13
virgin card....................6900......102.......20.08
Tax Bill.......................4500......50........0
Overdraft......................100.......0.........0
Floor loan.....................3500......162.......0
virgin card....................1000......25........26.48
Total unsecured debts..........39843.....783.......-


Monthly Budget Summary
Total monthly income.................... 3,089.64
Expenses (including HP & secured debts). 4,125
Available for debt repayments........... -1,035.36
Monthly UNsecured debt repayments....... 783
Amount short for making debt repayments. -1,818.36

Personal Balance Sheet Summary
Total assets (things you own)........... 786,000
Total HP & Secured debt................. -663,000
Total Unsecured debt.................... -39,843
Net Assets.............................. 83,157

RAS

Hi

i think you have a few things that are annual costs listed monthly?

hit the edit button and check them?

RAS

intoodeep 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................ 2172.64
Partners monthly income after tax....... 260
Benefits................................ 657
Other income............................ 0
Total monthly income.................... 3089.64

Monthly Expense Details
Mortgage................................ 1272
Secured/HP loan repayments.............. 400
Rent.................................... 0
Management charge (leasehold property).. 350
Council tax............................. 160
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 25 - you can cut this back.
Mobile phone............................ 90 - this is very high
TV Licence.............................. 15
Satellite/Cable TV...................... 45 and this has to go
Internet Services....................... 0
Groceries etc. ......................... 200 - you could reduce this
Clothing................................ 50 - wear what you have and get the missus to collect bundles off freecycle for the little one.
Petrol/diesel........................... 50
Road tax................................ 180 - per year?
Car Insurance........................... 130 is this per month?????????
Car maintenance (including MOT)......... 250 ditto?
Car parking............................. 110
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75 - what is this?
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 198 per year? with biuldings insurance ?
Life assurance ......................... 125 - ditto I hope?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 125 - this has to be cut back
Entertainment........................... 50 and this
Holiday................................. 100 and this
Emergency fund.......................... 0
Total monthly expenses.................. 4125


Assets
Cash.................................... 0
House value (Gross)..................... 785000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 786000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 263000...(1272).....5.59<
Buy to Let Mortgage............400000...(400)......5.17
Total secured & HP debts...... 663000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
natwest loan...................16843.....284.......9.7
aa loan........................7000......160.......13
virgin card....................6900......102.......20.08
Tax Bill.......................4500......50........0
Overdraft......................100.......0.........0
Floor loan.....................3500......162.......0
virgin card....................1000......25........26.48
Total unsecured debts..........39843.....783.......-


Monthly Budget Summary
Total monthly income.................... 3,089.64
Expenses (including HP & secured debts). 4,125
Available for debt repayments........... -1,035.36
Monthly UNsecured debt repayments....... 783
Amount short for making debt repayments. -1,818.36

Personal Balance Sheet Summary
Total assets (things you own)........... 786,000
Total HP & Secured debt................. -663,000
Total Unsecured debt.................... -39,843
Net Assets.............................. 83,157

Can you check my comments?

Paulgonnabedebtfree

intoodeep wrote: »

I don't even know where to begin anymore. I feel so sickened by the amount of debt I've got myself and my wife into. This all seems like a nightmare. I want someone to reset my life. I feel like I've stumbled into this blindfolded, and have carried on regardless of the consequences. Unsurprisingly I'm not sleeping, (mind you our 5 month old is also contributing) but worse, I feel I'm not living anymore. I feel like a ghost.

My SOA below only tells part of the story. The second mortgage we have is on a buy to let property we idiotically got into last year. It's been a disaster. Ive spent 10's of thousands on it - from no tenants to recently £4500 on major works. New tenants currently in are leaving me with a £400 shortfall, but I have just found out they are now a month in arrears, and they have only been in for two. As a result we are now one month in arrears on that mortgage.(£1900) I want desperately to sell, but a few months ago was told we wouldn't get any where near the £420K we need to get out - possibly £380K.

My wifes tax bill has been defered to this month, and we are going to try and to get them to carry on allowing us to make a token payment.

Work is the only thing keeping me going - I have the possibility of being given a small share of the business I work in, but as it means becoming a Director I'm terrified of bankrupcy. (Not only that. Four years ago, after a terrible divorce, I had to help my mom bankrupt herself - my father had taken out loans and cards in her name and had left her destitute. It was the worst experience I had gone through - this is starting to feel that way)

I'm hanging on by my finger nails. Please help.

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................ 2172.64
Partners monthly income after tax....... 260
Benefits................................ 657
Other income............................ 0
Total monthly income.................... 3089.64

Monthly Expense Details
Mortgage................................ 1272
Secured/HP loan repayments.............. 400
Rent.................................... 0
Management charge (leasehold property).. 350
Council tax............................. 160 ...some councils allow this to be paid over 12 months rather than ten which would give a small monthly reduction (though the same annual total of course)
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 25 .. maybe able to reduce this a bit if you switch provider?
Mobile phone............................ 90 . ditto as above. There are some good deals going at the moment. I think that ASDa were doing 8ppm and 4p texts if you keep current phone. T-mobile (I think) advertising 350 minutes a month for £15.
TV Licence.............................. 15 ... Mine is currently £11.95 a month on the 6 months advance/6 moinths arrears payment plan. Only a small saving though.
Satellite/Cable TV...................... 45 ..... may have to miss some of your favourites but more choices on Freeview these days
Internet Services....................... 0
Groceries etc. ......................... 200 ...possibly room for a small saving by brand switching, buying and freezing last day products on markdowns if you shop around 7 - 8.30 pm. Looks like you have already trimmed this low though.
Clothing................................ 50 .. I suppose that's pretty reasonable for 3 (especially as one is female ) but maybe look out for those bargains. Not much room for maneouvre though I guess.
Petrol/diesel........................... 50
Road tax................................ 180 .. this is annual - not monthly.
Car Insurance........................... 130 ... as above - unless you have a high claims record or drive a formula 1 racer
Car maintenance (including MOT)......... 250 ........ same again?
Car parking............................. 110 ... per month or per year?
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75 ... are these unavoidable or is there a relative who can assist with childminding?
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 15
Buildings insurance..................... 0 ... I assume that this is incorporated withing leasehold service charges?
Contents insurance...................... 198 ... per year I assume rather than per month?
Life assurance ......................... 125 ... pere how long? This may be monthly if you have a high poayout and/or past medical issues.
Other insurance......................... 0
Presents (birthday, christmas etc).....25 ... so £300 a year. That's £50 per present per person per celebration if you keep it to immediate family. Not excessive I agree but in difficult times, maybe even that must be looked at. A decent present for the child and maybe massage oils, bubble baths, and a fun thing or two for each other. Can have a lot of fun with them too.;)
Haircuts................................ 125 ... I live on my own and have a no1 or no2 cut. I spent £22 on Wahle clippers in December. So far they have given me £50 worth of haircuts and have years left in them. You may not want your hair that way. Not much good for the ladies either I guess but may save you money if you are OK with a very short, simple cut.
Entertainment........................... 50 ... specify please? If partly alcohol and/or cigarettes maybe room for consumption reduction?
Holiday................................. 100 ... OK. We all need a break. £1200 a year though? Maybe room for a bit of frugality? Not so easy with wife and child I know but maybe room for substantial trimming?
Emergency fund.......................... 0 .. agreed. Don't worry about it till it happens. It's OK if you have a line of vredit for emergencies. Bear in mind that lenders are slashing limits without warning though so you could be left with no access to credit.
Total monthly expenses.................. 4125 .. I'm not going to calculate it but I think you will find this is less as you put a few yearly totals as monthly ones (I hope so anyway). Perhaps re-calculate taking into account my comments.


Assets
Cash.................................... 0
House value (Gross)..................... 785000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 786000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 263000...(1272).....5.59<
Buy to Let Mortgage............400000...(400)......5.17
Total secured & HP debts...... 663000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
natwest loan...................16843.....284.......9.7
aa loan........................7000......160.......13
virgin card....................6900......102.......20.08
Tax Bill.......................4500......50........0
Overdraft......................100.......0.........0
Floor loan.....................3500......162.......0
virgin card....................1000......25........26.48
Total unsecured debts..........39843.....783.......-


Monthly Budget Summary
Total monthly income.................... 3,089.64
Expenses (including HP & secured debts). 4,125
Available for debt repayments........... -1,035.36
Monthly UNsecured debt repayments....... 783
Amount short for making debt repayments. -1,818.36

Personal Balance Sheet Summary
Total assets (things you own)........... 786,000
Total HP & Secured debt................. -663,000
Total Unsecured debt.................... -39,843
Net Assets.............................. 83,157

Doesn't sound so great but there is room for savings. Also, I think you have miscalculated a couple of bits by putting the yearly total instead of monthly. See my comments in red above.
Sorry if some of my comments seem a bit harsh but I think I've been pretty fair.
Does your income include your rental income (when you get it) from the second property?

Paulgonnabedebtfree

RAS wrote: »

Can you check my comments?

I posted mine beforre reading yours. Good to see that we are singing from the same hymn sheet.

Paulgonnabedebtfree

RAS wrote: »

Can you check my comments?

"Haircuts................................ 125 - this has to be cut back"

---

Go on. Tell me this bit was humour

RAS

Paulgonnabedebtfree wrote: »

"Haircuts................................ 125 - this has to be cut back"

---

Go on. Tell me this bit was humour

Actually it was very late :rotfl::rotfl:

Yippee31

I am no Carol Vorderman intoodeep so I will just send you a hug instead x

GeorgeUK

Mortgage................................ 1272
Is this interest only or repayment?

Management charge (leasehold property).. 350
PER YEAR or PER MONTH?

Council tax............................. 160
If paying over 10 months, can you ask to pay over 12?

Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
These are quite good (are you sure these are correct). If the prices increase, take a look at the comparison sites to get a good deal (uswitch, moneysupermarket)

Mobile phone............................ 90
PAYG? Can you go on a lower tarrif?

Telephone (land line)................... 25
Satellite/Cable TV...................... 45
Internet Services....................... 0
Are these combined in a package?

Groceries etc. ......................... 200
Might be able to reduce a bit, take a look at the old style board for meal plan ideas.

Clothing................................ 50
Can you do this every other month?

Road tax................................ 180
Car Insurance........................... 130
Car maintenance (including MOT)......... 250
PER YEAR or PER MONTH?

Car parking............................. 110
Is there an alternative form of transport you can use that might be cheaper?

Other child related expenses............ 75
What's this?

Pet insurance/vet bills................. 15
Buildings insurance..................... 0
Contents insurance...................... 198
Life assurance ......................... 125
Check what the monthly payment are and also use the comparison sites to see you are getting the best deal.

Haircuts................................ 125
This needs to be reduced 1.5k per year.

Holiday................................. 100
Can't afford this (possibly)

Emergency fund.......................... 0
Need something in here as a buffer

Is the rent you are collecting from the 2nd property included in your income calculation?
It might be worth repoting the SOA if you have mixed a few annual and monthly payments up. Also double check you have the right figures for the utility bills and TV licence.
Make sure your council tax band is correct and reclaim if not. Also reclaim any credit card or bank charges and check if you were missold PPI.
http://www.moneysavingexpert.com/reclaim/

I'd advise you and the wife keep a spending diary so that you are aware of exactly how much you are spending and on what. Little things can add up quite fast and you may be able to find cheaper alternatives for some things.

intoodeep_2

Hi Ras, yes a few are annual - head swimming too late at night, shall check and edit. Thank-you. Just hearing another voice means allot.

intoodeep_2

Thank-you George - homework to be done, which I shall get on with. I have a few questions, but its late - may I get back to you later please?