What do I do now???

angelflower_2

moneymaker2 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2 (Although if husband doesn't get another job then we will sell one of the cars)

Monthly Income Details
Monthly income after tax................ 1166
Partners monthly income after tax....... 0
Benefits................................ 245 (What we get at the moment, would need to check if we were entitled to more)
Other income............................ 0
Total monthly income.................... 1411

Monthly Expense Details
Mortgage................................ 840.2 (Normal payment £720.27)
Secured/HP loan repayments.............. 384.39999999999986 (Normal payment £329)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 70 (Normally £35)
Gas..................................... 70 (Normally £35)You can request that they lower the repayments in the short term
Oil..................................... 0
Water rates............................. 16.32
Telephone (land line)................... 6 (Lowest package with Talk Talk)
Mobile phone............................ 100 (Tied in till next year with both) even tied in, if you contact to explain financial difficulties, you may get a reduction
TV Licence.............................. 12.01
Satellite/Cable TV...................... 28.25 you need to cancel this in the short term. If you still have the sky box, you get loads of free channels which should do just fine.
Internet Services....................... 19.99 (Tied in till January 2010)
Groceries etc. ......................... 200 is this really what you spend. It is a good amount for the four of you and I would say a great target but you should keep a spending diary to ensure you really only do spend this
Clothing................................ 0
Petrol/diesel........................... 160 very high. I presume this will also go down if your OH is not working?
Road tax................................ 0 on two cars, you need to have something here
Car Insurance........................... 0
Car maintenance (including MOT)......... 0 on two cars, you need to have something here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 240 (Dependant on what happens this may go)
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 28 (For 3 Rabbits) do the rabbits really need insured (i know you prob say yes but thats a lot for 3 bunnies)
Buildings insurance..................... 27.91 (Expires in October 2009)
Contents insurance...................... 0
Life assurance ......................... 21.01
Other insurance......................... 27.06 (Car insurance for 1 car, other has been paid up till October 2009)
Presents (birthday, christmas etc)...... 0 not realistic. You obviously will have reduce this to virtually nothing but the budget has to be workable
Haircuts................................ 0 as above.
Entertainment........................... 28.86 (Movie Rental and cinema passes)this should go. Especially if you are tied in to sky or something.
Holiday................................. 0
Emergency fund.......................... 0
mobile insurance........................ 11.99 (For husbands iphone)Really?
Education............................... 21.33 (Science GCSE Course that I am studying to become a teacher)you may be eligiable for a hardship grant or ILA to help with study costs
Total monthly expenses.................. 2410.33


Assets
Cash.................................... 0
House value (Gross)..................... 130000 (Not sure if this is right but brought the house for £139,999
Shares and bonds........................ 0
Car(s).................................. 3000 (for 2 cars)
Other assets............................ 0
Total Assets............................ 133000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(840.2)....0
Secured Debt.................. 32000....(384.4)....12.9 this is a high APR for a secured debt!!! Can you negotiate this?
Total secured & HP debts...... 182000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................1900......5.........0
House Of Fraser................250.......10........0
Capital One....................530.......1.........29.9
littlewoods....................800.......5.........0
First direct od................500.......0.........0
hsbc...........................1270......25........0
HSBC...........................22000.....1.........6.9
Citifinancial..................6000......1.........15.9
Alliance and Leiceste..........750.......50........0
Vanquish.......................250.......5.........49.9
Barclaycard....................2300......1.........16.9
Barclaycard....................3600......1.........16.9
Total unsecured debts..........40150.....105.......- nothing much to say here except you will need to be a bit more fair with the payments here. Payments should be prorata based on the total you can pay and not on who shouts the loudest.


Monthly Budget Summary
Total monthly income.................... 1,411
Expenses (including HP & secured debts). 2,410.33
Available for debt repayments........... -999.33
Monthly UNsecured debt repayments....... 105
Amount short for making debt repayments. -1,104.33

Personal Balance Sheet Summary
Total assets (things you own)........... 133,000
Total HP & Secured debt................. -182,000
Total Unsecured debt.................... -40,150
Net Assets.............................. -89,150

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Hi There

I have made some comments above. You will see that the situation will really require your OH to get back into employment again in order to make the agreed payments. I would suspect however that even in employment, you must have been starting to feel the pinch!!

In your situation, I would recommend speaking to one of the debt councilling charities for further advice as I believer you may need to consider other options such as DRO, IVA or bankrupcy.

My personal favourite charity is www.capuk.org but you can also contact CCCS or Payplan. CAB also give financial advice but it can be hit or miss depending on who is volunteering each day on whether or not they have been trained which may slow things down. Try one of the top 3 initially.

Best wishes

GeorgeUK

Did hubby get any redundancy money?
They would need to take you to court before bailiffs would get involved.
Definately make sure hubby signs up for benefits asap.

Mortgage................................ 840.2 (Normal payment £720.27)
Interest only or repayment?

Council tax............................. 97
If paying over 10 months, can you pay over 12?

Electricity............................. 70 (Normally £35)
Gas..................................... 70 (Normally £35)
Have a look at the comparison sites to see if you can get anything better (uswitch, moneysupermarket)

Satellite/Cable TV...................... 28.25
Needs to go - can you get freeview?

Groceries etc. ......................... 200
Have a look at the old style board for meal plan ideas and cooking in bulk.

I agree it would be worth talking to payplan or CCCS.

homeaway

Hi so sorry that hubby has lost his job. I think that others have given you good advice here. Your food budget is really low but you have nothing for clothes, with two kids they are going to need shoes etc so you will have to cut other things to be able to buy these. I would advise you to get some advice from the debt charities they are the people who will be able to help you the most. Take care.

gfplux

Hello moneymaker2,
You have had lots of good advise. I hope you have been in touch with the charity's mentioned.

You are obviously in a very, very difficult position. As mentioned even with two incomes you were in trouble.

You must take some action NOW, TODAY. to even give you half a chance of not going bankrupt.
You should cancel today - Mobile phone contracts, SKY, Rabbit Insurance, Internet, Mobile Insurance, Tell them all you have no money (true) and will not be paying next bill.
Cancel life Insurence
Do not buy any petrol unless it is for a job interview.
etc, etc, etc,

I know this sounds very drastic but your situation is very difficult.

Good Luck, let us know what action you have taken.
best wishes.

Sublime_2

Hello moneymaker. Sorry to hear about your troubles. I hope things get better soon. I know things are hard for you, but don't leave yourself short. I was just looking at your grocery budget for the four of you. It can be done, but just set yourself something you can stick to.

I agree with gfplux's and GeorgeUk's posts about cancelling mobiles etc (you can always do PAYG), as I can see money is very tight.

I hope it goes ok for you. You are taking the right steps. Good luck.

gfplux

hello moneymaker,
Don't give up. Hope you have taken some action. Please let us know as it is nearly week now.
Good Luck