in a bit of a pickle, can anyone offer advice

emsywoo

Hi, After looking at the forum I can see that my position may not be as severe as some of the other people on here but I am sure you can all appreciate how horrible it is when you suddenly find yourself with your head under the water!!

I am a graduate and I am lucky enough to have found a job in my chosen career. The figures shown in my SOA are based on what I will be earning (I start on Monday) and doesn't yet include my student loan as I don't start re paying that until April next year. The loan shown is one I took out with my ex who is paying £100 pm for his share.

My plan is to get a graduate loan at a lower rate to pay off my existing loan and buy a new car with the scrappage scheme because it is a 70 mile round trip to work plus extra miles during the day to visits and meetings (My current car is very unreliable and has cost me a small fortune in repairs over the last two years). I applied for a credit card to transfer the balance of my two credit cards but the application was declined due to 'affordability', I am now planning on waiting until I have had a couple of pay days to make additional payments to my credit cards and then apply again for a 0% credit card to transfer the balance.

Am I doing the right thing? Is there anything else I can do?

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 235
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 10
Gas..................................... 15
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 6
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 931


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 100
Other assets............................ 0
Total Assets............................ 100

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10700.....300.......12.3 (I pay 200 ex boyfriend pays 100)
credit card....................2650......75........23.9
credit card....................1300......40........20.3
Total unsecured debts..........14650.....415.......-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 931
Available for debt repayments........... 369
Monthly UNsecured debt repayments....... 415
Amount short for making debt repayments. -46

Personal Balance Sheet Summary
Total assets (things you own)........... 100
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,650
Net Assets.............................. -14,550

Tixy

Hi emsy - can I first ask is this a SoA for just you or for both the 2 adults? Some costs look low if its for 2 but others look really high if for 1.

You are showing a shortfall despite your new job so you need to look at reducing the expenditure somewhere. Its difficult to advise where without knowing whether the costs are for 1 or 2 but Groceries are certainly high whicheve - £80pppm is a good, easily achieveable amount -without too much hardship, some people manage on £50pppm (or even less).

Personally I would not buy a brand new car, considering the level of debt you already have and the fact that you are already showing a shortfall every month. You may find you need a newer car than you have but brand new is rarely worth the outlay, as they devalue dramatically in the first couple of years. You could look to spend £500 - £1000 and have a reasonable economical car.

The economical issue will be very important for a new car. I drive a 70mile round trip commute and spend about £180 on fuel. Also read Martin's article on tips to get the most out of your fuel (he suggests you can save up to 1/3 of your fuel cost).

Is the exisiting loan in joint names? I'd be wary of switching it to your name only in case things turn bad with your ex.

Perhaps you would be better paying off your CCs with a graduate loan as you are paying much higher interest on these and it could be some time before you are succesful in getting a 0% card- do this with caution though and make sure you don't run up more credit cards.

Do you not have an overdraft currently (great if you don't but if you do you need to include it on your debts).

Hope this helps
Tixy

Tixy

Hi emsy - are you still about?

emsywoo

Hello thank you for your reply Tixy,

I see what you mean about the figures I have given, they are just for me however I have put the amount of groceries for two people. The loan I have is in my name and I have asked my ex to get his own loan and he is looking into it (I am lucky that I still get on with him).

I know that you are right about the car and I have been thinking the same thing myself but I haven't wanted to listen as the idea of a nice shiny reliable car for once in my life is sooo attractive especially as I need to use it so much for work, although I know I don't have to get a brand new car for it to be reliable.

I do have two overdrafts one is 2400 and one is 2000 (both maxed out) but they are both interest free for the next 3 years.

I agree about using the loan to pay off the cc's too and I will have another think about what to do about the car. This is so depressing...

Thanks again Tixy,

Emma.