Hello

garyh_uk

Hi everyone

Well thought i would write on here and share my story as my debts are starting to get a hold on me now and making me a bit depressed. Basically, a few years ago me and my partner who I was with for 8 years bought a lovely house (we were not married), anyway, after 2 years she left, left me the house etc, (luckily) but im also stuck running it on my own. Through my own stupidity I let my debts rack up and here is my current picture.

Note that i've never missed a payment, havent got bad credit (which is a problem cos I can always get a card/loan very easily!) but i'm finding at the end of the month i'm just totally and utterly skint. Cant afford to save any money, and while I have every intention of paying things off, I just cant seem to get the money to do it.

My salary in is around 2100 a month, while my household bills (excl food) are as follows : (note i always go around to get the cheapest deals!):

Council tax : (single person discount) £85
Gas (Scottish Power) : £34
Mobile Phone (O2) : £37
Electric (BGas) : £7.30
Water (metered) : £22
BT Phone : £12
Mortgage (fixed rate at 5.04% until 2011) : £845
House Insurance : £9.63

Thats good I think, but then come the debts

MBNA Virgin Credit Card : £50pm - £5600 (0% until Dec 2009)
Barclaycard : £50pm - £2400 (0% until this time next year)
Car : £6500 - £134.00pm for next 4 years and 8 months (think around 9% apr)
Loan - £12500 - £226pm for another 5 years
I also have an orderdraft at the bank for £1300 which I go right up to the limit every month as I can reduce the spending.

Basically, the loan was to pay off a few things to my ex as a sweetner as I put £50k of equity into the house, the loan was for £15k over 7 years with the AA, I think it was about 6.4% apr.

The car was a bit annoying because initially I bought a car which I then didnt like, it drank fuel, so I had to get another, and pay off most of the other loan with the new loan. Its a HP scheme not a personal loan.

The cards, urgh, I pay just over min payment at the moment, but the problem is things come up in the month and then I put it on the card! I know I shouldnt, but when you dont have savings, how do you cope if something comes up?

I did have an Argos store card but I paid that off last month 1 down, 4 to go. Anyway, it puts my unsecured debt at around £26k which at 34, I am ashamed of!

I have income protection insurance just incase which will pay out £1600 for 12 months if I lose my job or get ill. I cant see really where I can cut corners. I have just under £500 a month left to spend on me, from that I have to take out petrol (ever increasing in price), food, going out, etc.

I wouldnt say i'm really really struggling at the moment but its starting to affect me in that I cant go out much anymore, its worrying me, and being on my own here, its like trying to deal with it all on my todd! Just wondered if others had been in a similar situation. I have thought of selling the house, but I want the market to pick up again before I do that. I wont lose my 50k equity on the house however which I guess is a bonus.

So there we go, thats my story, really wanting to get rid of this, where do I start!!! Nice to meet you all by the way. Am amazed and find the guy who had £34k of debts now down to just over £3500k an inspiration, how did you do it!!!

HEADABALL

Could u get a lodger in to help pay the bills ?that would help free up some cash .Have to say tho £500 is quite alot after bills ,well for me anyway .in my student days we had alot less ,we ate alot of beans if u know wot i mean lol

CLAPTON

best to put up a full SOA format
http://www.makesenseofcards.com/soacalc.html

can you increase you income... parttime job or having a lodger?

determinedtodothis

Hello and welcome!

First things first is post an SOA (Statement of Affairs) that will let the very clever people on here work out if you can manage you money better.

Ther are things that you can sort out now, like Electricity there are some brilliant tips on the OS board for cutting electricity usage - something I'm focusing on, another easy way of controlling expenditure is food bills.

theres something called a snowball calculator on here to - that will tell you the quickest way to clear the debts off taking into account APR.

good luck!

Nargleblast

Suggest as you clear a card debt you destroy the card and ensure the account is closed. A bit scary, not having a bit of plastic to fall back on, but also strangely liberating when you know there are no horrible bills to look forward to! And it is more satisfying to buy something with real money, knowing you don't owe anyone for it. Just something for you to aspire to.

garyh_uk

Yeah totally agree about cutting up the cards, I have cut up the MBNA one, but dont want to cut up the other just incase something goes wrong. I have read the article Martin wrote about putting you off spending, eg freezing the credit card in ice!

Done the snowballing application thing, very useful thanks.

I hope that joining this forum and posting my progress with give me more incentive and a kick up the rear to do something now about this!

edinburgher

how did you do it!!!

One of the best I've seen is £100k+ down to ~£25k. She knows who she is

garyh_uk

Just did the SOA thing and it says I have net assets of £27k. Thats if i sell the house of course.

Just rang my loans companies etc and checked credit cards and I feel sick, I owe just under £30k in total. OMG I cant believe I did this. I'm actually left with £400 a month after bills, from this I have to pay for food, petrol, clothes, car tax when it comes up, etc etc.

Thats less than £100 a week for any 5 week months. Feel sick and ashamed just cut up credit cards.

MrsPorridge

Well done on cutting up your credit cards and well done for posting on here - you've taken the first steps. Please fill in the soa as detailed in the links above. Once you do that then we can help you with lots of ideas.

Good luck.

garyh_uk

Ok have done so. Done it a bit more accurately:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2060
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2060

Monthly Expense Details
Mortgage................................ 845
Secured/HP loan repayments.............. 134
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 7.3
Gas..................................... 34
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 12
Mobile phone............................ 37
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 0
Car maintenance (including MOT)......... 45
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 3.95
Pet insurance/vet bills................. 0
Buildings insurance..................... 9.63
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1565.88


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 183500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(845)......5.04
Hire Purchase (HP) debt ...... 7280.....(134)......6.4
Total secured & HP debts...... 137280....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
mbna mastercard................5777......78........19
barclaycard....................2500......55........0
AA Loan........................13576.....224.......7
Total unsecured debts..........21853.....357.......-


Monthly Budget Summary
Total monthly income.................... 2,060
Expenses (including HP & secured debts). 1,565.88
Available for debt repayments........... 494.12
Monthly UNsecured debt repayments....... 357
Amount left after debt repayments....... 137.12

Personal Balance Sheet Summary
Total assets (things you own)........... 183,500
Total HP & Secured debt................. -137,280
Total Unsecured debt.................... -21,853
Net Assets.............................. 31,647

Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Teenie_D

Hi Gary and well done on taking the first step. Do keep popping in for an update or to read other peoples stories it really does give you an incentive to keep going and as other people have said post your SOA for us to see and you will get loads of help,

Good luck x