Worried about what's to come & some questions...

Acme_Vanishing_Hairdo

'Ello people.

Well, high time I tried getting on top of things, but I need some idea of what to expect if I take certain steps...

Currently, I'm in about 12K of debt and with another 8K-or-so of student loan from a bailed-out-on Uni course to worry about if I ever get to earning enough.

Financially, things would just tick over if I could ditch all my debts, I'm pretty average on the big stuff, I think:

Mortgage / Rent £375.00
Council Tax £80.00
Petrol £195.00
Electricity Bill £16.00
Home Phone Bill £10.00
Mobile Phone Bill(s) £45.00

(Full SOA below)

Food shopping keeps to about £20p/w and we don't have a TV (not really any time to watch it these days), so no TV license or Sky bills to pay.... But when the little odds n' sods are factored in, I'm losing about £420 per month. My income averages out to £1000 net per month and my debt payments are currently only £227 p/m. But without them, and with drastic cutbacks on social life, that could be turned around to just about creep into the black.

I've tried applying for consolidating loans which would help me at least break even, but have been refused by all so far - sooo... I'm wondering about taking the dramatic measure of writing to my creditors to offer the ol' £1 token payment thing.... But what does that mean for me and my partner?

My worries are that "they" will want to involve her in my debts. We've lived together for 3 years and she has her own property which she lets out to pay her half of the rent (i.e. £375) and bills.

Would they hassle her? I really don't want her involved with or worrying about my situation at all.

Also, we live in a lovely lil' cottage in the countryside. While the rent is comparable (£750 pcm) to what we'd pay for a 2-bedroomed flat in nearby Brighton, the difference to normal urban life is probably extravagent, at least in the eyes of the ashen, passionless goons that will be set on my case (or am I imagining this? LOL). Would I be considered to be taking the mic' for trying to make this place work and be obliged to move back to cheaper acommodation by anyone?

This life is something my partner has yearned for for 30 years and she at least can just about afford her half of it. The trouble is, as I said earlier, so could I if only I had no debts. I don't want to be responsible for her having this taken away.

What to do?

FULL SOA (per month):

Mortgage / Rent £375.00
Home Content Insurance £5.00
Council Tax £80.00
Water Rates / Meter £??
Gas Bill None
Electricity Bill £16.00
Oil Bill None
Home Phone Bill £10.00
Internet Bill £16.00
Mobile Phone Bill(s) £45.00

EATS, DRINKS & SMOKES
Food Shopping £90.00
Eating Out £20.00
Coffee / Sandwiches Out £20.00
Drinks for Home £40.00
Drinking Out £60.00
Meals at Work £30.00


TRANSPORT & TRAVEL
Car Maintainence £20.00
Car Insurance £25.00
Car Tax £14
Petrol £195.00

DEBT REPAYMENTS
Personal Loan Repayments £127.00
Credit Card Repayments £100.00



ODDS & SODS
DVDs to watch on laptop £10.00
Hobbies £10.00
Big Days Out £15.00
Book / Music / Films / Games £10.00
Newspapers / Magazines £8.00

INCOME - on average: £1000

lynzpower

Welcome! :hello:

First of all you need to do a full SOA. You havent factored in any transport costs for a start ( such as MOT, any finance of the car, repairs and so forth) , dental, optical, prescriptions etc. This, coupled with a spending diary, should tell you where all the extra is going. In any case for a DMP you will have to write out a budget.

Its the little stuff that costs the money, and makes it all vanish!

ms_london

If the debts are in your name, your partner shouldnt be affected at all.

What you need to do is keep tabs on the little "odds and sods" and if you can't reduce your outgoings any more then how about increasing your incomings?

Who are your debts with? What are the APR's? Do you have any savings? Are you looking to get married?

Does your partner know about your debts? Are you saying that you WANT to move to somewhere cheaper? If this is the case then you need to talk to her about it, there is no reason why you cant move back to somewhere just as idyillic in a few years time, but now you have a decision to make about where you see your life going. I am sure your partner will understand and want to help out where she can....

Let us know how you get on.

xx

Acme_Vanishing_Hairdo

Hi - I've amended my post to include me' SOA... This is the pre-cutbacks one, I've started working out what can go - such as the drinks for home budget.

No, I don't want to quit this place... I love it here. I have spoken to my partner, yes. She's worried, and I kind of wish I hadn't, but she's pleased I'm tackling it... It was her that suggested I come here.

Debts with APRs are as follows (the table probably won't import, but I'll try):

Outstanding Monthly Interest P/M APR
Halifax Loan £8,000.00 £125.00 £66.00 9.90%
Halifax Visa £1,643.00 £25.00 £15.00 18.95%
Tesco Visa £135.00 £5.00 £2.00 17.07%
Barclaycard £2,750.00 £55.00 £32.00 14.90%
Total: £12,528.00 £210.00 £115.00

No, it didn't! LOL - The columns are: what I owe; how much I pay each month; how much interest I'm charged per month (roughly); and the APR

lynzpower

Some thoughts.....

Mortgage / Rent £375.00
Home Content Insurance £5.00 ( cor where do you get it that cheap?!?! I pay 21 a month, and I thought that was cheap!!!)
Council Tax £80.00
Water Rates / Meter £??
Gas Bill None
Electricity Bill £16.00
Oil Bill None
Home Phone Bill £10.00
Internet Bill £16.00
Mobile Phone Bill(s) £45.00 ( cut down to PAYG?)

EATS, DRINKS & SMOKES
Food Shopping £90.00
Eating Out £20.00 ( not at the mo)
Coffee / Sandwiches Out £20.00 ( these can go too)
Drinks for Home £40.00 ( do you need this)
Drinking Out £60.00
Meals at Work £30.00 ( these can stop)


TRANSPORT & TRAVEL
Car Maintainence £20.00
Car Insurance £25.00
Car Tax £14
Petrol £195.00 ( you could cut down your journeys, or try car-sharing)

DEBT REPAYMENTS
Personal Loan Repayments £127.00
Credit Card Repayments £100.00



ODDS & SODS
DVDs to watch on laptop £10.00 ( no, get dvd tarting and hire them for free)
Hobbies £10.00 ( whats this ? )
Big Days Out £15.00
Book / Music / Films / Games £10.00 ( no need)
Newspapers / Magazines £8.00 ( these can go, you can read online)

INCOME - on average: £1000

ms_london

Income: £1,000

Mortgage / Rent £375.00
Home Content Insurance £5.00
Council Tax £80.00
Water Rates / Meter £??
Electricity Bill £16.00
Home Phone Bill £10.00
Internet Bill £16.00
Mobile Phone Bill(s) £45.00
Car Maintainence £20.00
Car Insurance £25.00
Car Tax £14
Petrol £195.00

Total outgoings:- £801

Personal Loan Repayments £127.00
Credit Card Repayments £100.00

Total debt repayment:- £227

Total outgoings:- £1,028

** The bills you have listed above, which do you pay 50% of? Or do you pay all of these & your partner pays something else?

** Assuming you do pay these yourself you are already overspending by £28 a month. Not so bad, but this leaves no room for food or your "odds & sods".

Acme_Vanishing_Hairdo

Hi - thanks for replies. I'll go away in a minute, LOL

All bills apart from car and mobile are 50% figures.... The home insurance is therefore £9.99 for contents only it's with Norwich Union, I think, but I'll confirm that later.

ms_london

Acme_Vanishing_Hairdo wrote:

Hi - thanks for replies. I'll go away in a minute, LOL

All bills are 50% figures.... The home insurance is therefore £9.99 for contents only it's with Norwich Union, I think, but I'll confirm that later.

No need to go away, that's what we're here for....

What are you hoping to get out of this? Any thoughts on what YOU can do to resolve the situation? xx

Acme_Vanishing_Hairdo

Back again....

Well, my main aim from being here is to formulate a plan... I want to sort my finances enough to stay put in the cottage and break even. Hopefully I can get enough information from these pages to work out my options and what each will entail.

Thanks for your help thus far.

lynzpower

Sounds like a plan to me!!

All the best of luck & keep posting, we need some new blood round here lol