SAO....here we go, the grim facts!

speakerabbit

After posting about my plight yesterday I was advised to post a SOA. For those who never saw the post here's a brief outline. Found out yesterday that husband has built up debts to the tune of 50K, also in same day recieved cheque for 10K from an inheritance. I assumed a secure loan ie remortgage was the only option but replies to the post suggested otherwise and that by posting my SAO all you lovely people would be able to help me.

So here it is warts and all, sorry it's so lengthy but thought the more info the better:

State of Affairs (SOA)


Mortgage and debt information

Mortgage (Woolwich Flexible Mortgage Plan) £46,118
Mortgage interest set at 4.25% until August 2006
Monthly payments £178
Approx current value of property £130000

ISA monthly payments £166
Approx units held 7616.82
Total fund value £11211.94

Mortgage and ISA taken out Sept 1999

Tesco loan £23500 apr@ (approx 6.4% this still has to be confirmed) over 7 years
TSB loan £17200 apr@ (approx 6.4% this still has to be confirmed) over 7 years

Mint CC £3300 apr @ 14.9%
TSB CC £2000 apr @ 14.9%

Listed outgoings per month

Mortgage interest payments £178
(including life cover)
ISA monthly payments £166
TSB Loan £361
Tesco loan £368
Mint CC £100
TSB CC £100

Car insurance £31.28
Council tax £104.46
Life Insurance £20
House insurance £29
Landline £25
Mobile 1 £10
Mobile 2 £30
Water rates £35.36
SKY £42.50
Pet insurance £11.01
TV Licence £10.99
Broadband £25
Gas £50 (approx)
Electric £30 (approx)
Gym membership £33
Dental plan £20
Groceries £400
Dog food £25

Total approx £2187 :eek:






Incoming


Salary (after tax and pension deductions) £2100
Child benefit £113.60
Tax credits £38.26
P/T job £150.00

Total £2401

Savings £10,000


So thanks in advance to any one who can advise me out of this mess!

Amanda

bonnie_2

although it looks like you have 214 left a month you havent included car tax, petrol, clothes,holidays or presents.kids activities and school money.
Also sky, gym and mobiles you cant afford, they are luxuries.
have you tried ntl they are doing phone,tv and internet for £30 a month.
can i ask why your saving £166 a month when your in debt. could you not use this money to pay of the cards.

rchddap1

Grocery budget also seems high (but depends on amount of people of course). Old Style board should be able to help you sort that one out.

Bestthingsinlifearefree

HI speakrabbit,

sky needs to go or be cut back to basic package.

me and my wife got rid of sky movies (which my wife liked) and sky sports (which I liked) cut our package down to £21 from £40 or so.

Much to my surprise we never even missed the channels once they were gone.

If you or your husband do not want to cut back on sky then you have not had your light bulb moment yet !!!

speakerabbit

Hi

I agree that gym, sky etc all has to go. I'm just posting 'how it is' as of day one, today, this is obviously not going to be the case for the future. Remember that before yesterday I had no knowledge of this debt whatsoever . The £166 is the ISA which is part of our flexible mortgage. Groceries will be cut but not by much, 4 of us in the family including a new baby (5 with weekend stepson) I had forgot car tax and petrol is no more than a fiver a week. School money is only a pound a week (pre-school). I didn't think to add presents/clothes etc as this is a as and when thing and would come out of the remaining money.

Amanda

Bestthingsinlifearefree

Well done for the posting the SOA that is a massive positive step forward.

As I mentioned on the other thread you really need to pin down where that 50K went ie you have a decent income and with out the loans could live very comfortably.

So what were the loans used for ? Holidays, cars, helping family, the house,wedding, drugs, gambling ?????????

I am not having a go but I would be a bit worried if it was not obvious where the money went.

If you can identify where the money went in the past it will help you make positive changes in the future.

Keep up the good work. Keep posting.

Bagpuss741

How many dogs do you have? £25 a month on dog food seems alot, my dog only costs £10 per month on food although she is on a special urinary diet food.

Steph

speakerabbit

Oh I've had more than a lightbulb moment alright. The 50 thousand watt lightbulb was handed to me on a plate yesterday. :eek:

I have no problem with losing these things (well I do, but you get what I mean) I just wanted to post how things have been and see what can now be done to bring it all down.

Amanda

speakerabbit

Hi Steph

I was putting it as food but this also includes her medication which is ongoing.

Thanks

Amanda

CLAPTON

firstly can i say, although probably no consolation to you that things dont look too bad.
it would be useful to know (no judgements being made) but how were your OH debts built up...was it business problems or just generally over spending (holidays, car etc)?

your savings : is it correct that you have £10,000 cash plus ISA worth £11,211

is there PPI on any of the loans or CCs

the SoA is an excellent start, these things need several attempts to get complete. the spending part has to include all the things your likely to buy over the next 12 months...so for yearly costs divide by 12, half yearly by 6 etc etc.
In addition to the obvious expenses you also need to allow a little for emergencies (while you can't predict that the washing m/c will break this year, its pretty certain that something will need major repair or replacement over the next 12 months ...perhaps allow 30 per month ).
cars in particular need to be fully budgetted for , insurance, tax, petrol, MOT, servicing, repairs, AA/RAC.

on the debt front, it really is a no brainer to pay off the CCs with either the ISA or the cash...it makes no sense paying 14.9% interest and it will release up to 200 in monthly repayment.

about the loans: how many months are there still to pay off and do you have settlement figure for each of the loans...it affects whether it is worth paying them off by remortgaging or otherwise.

lynzpower

i did write a long reply, but damn i lost it :mad:

Can you move your cards to a low life of balance card? Or 0% At least some of the payment you make will be chipped away at...

I think you CAN cut down your groceries to at least save £100. Yes, it will take some planning, but it certainly CANbe done. You just need to ensure no waste and that you are getting the best deals on everything BOGOFs sometimes more expensive than shops own etc.

Your electric & gas seem high have you checked you are on the lowest tariffs and insulated loft, lagged boiler, etc.

In any case you have over 300 left extra from this budget to throw at the debts, along with meeting the bare payments.

Of course there are extra ways to make cash on the side what with mystery shopping, quidco, greasy palms etc. What have you got to sell? Car boot sales? Ebay? With kids you must have loads of bits hanging around not being used? even £50 is better than nothing, chuck it at your cards.

Mobiles, can the £30 go on PAYG?

YOur landline, is it BT? If so get Primus 2 for your free evening & weekend calls, this package is free, all calls free up to an hour & a half (not mobiles though)