Confused with what decision to make....

copier_guy

Brave? not sure about that one!!

We just had enough, life is for living and enjoying. we are to blame for our financial mess and when we go BR (not long now) we will pay for it for 6 years.

we dont feel free yet as we are not BR yet but no one knows were we live, we have post redirection going so we know whats going on.

Our old house was repo'd two weeks ago and is up for sale for £10,000 less than we owe on it.

willow41

Thankyou all for your advice. I am off to bed now.

JCS1

willow41 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0 I'm guessing that childcare costs would mean working is not an option
Partners monthly income after tax....... 1400
Benefits................................ 383
Other income............................ 0
Total monthly income.................... 1783
Monthly Expense Details
Mortgage................................ 703
Secured/HP loan repayments.............. 303 Are you sure you want to keep the property? You're paying £1,000 month on the mortgage and secured loan, how does this compare to rental properties in the area?
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 111
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 35
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 18 Would need to come from surplus.
Internet Services....................... 0
Groceries etc. ......................... 320 It's low for a family of five, but guess is balancing figure.
Clothing................................ 10 You could increase this.
Petrol/diesel........................... 80
Road tax................................ 17
Car Insurance........................... 12
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 24
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 15
Contents insurance...................... 0
Life assurance ......................... 15 OR will have an interest in this
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1845

Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 185800

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 151000...(703)......0
Secured Debt.................. 31000....(303)......0
Total secured & HP debts...... 182000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
benficial finance..............10000.....50........0
nationwide loan................5540......25........0
nationwide o/draft.............2960......67........0
barclays o/draft...............1823......0.........0
NEXT...........................810.......5.........0
HFC............................440.......5.........0
virgin.........................1958......78........0
provident......................385.......5.........0
freemans.......................499.......19........0
barclaycard....................657.......14........0
halifax........................1274......5.........0
Total unsecured debts..........26346.....273.......-

Monthly Budget Summary
Total monthly income.................... 1,783
Expenses (including HP & secured debts). 1,845
Available for debt repayments........... -62
Monthly UNsecured debt repayments....... 273
Amount short for making debt repayments. -335
Personal Balance Sheet Summary
Total assets (things you own)........... 185,800
Total HP & Secured debt................. -182,000
Total Unsecured debt.................... -26,346
Net Assets.............................. -22,546
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

The thing that stands out is the mortgage/secued loan amount. Are you sure that you could manage these each month if you went BR? I'd also suggest an recent house valuation to see if that £3k equity has reduced.

tigerfeet2006

Also check out www.entitledto.co.uk to make sure you are on all the benefits you are entitled to.

That is one very tight SoA. The house is killing you and you have no contents insurance and no provision for MOT. At the moment with no debt you are running at a deficit and there is no room to manouvre to bring that down so I have a feeling unless you can increase your income then you will possibly have to let the house go.

How much is rental property of the size you need in your area?