new house and struggling

Bella79

Hi all

Please dont all condem me i know we have been stupid and now i dont know what to do

a few years ago my fil gave us our first home worth 150k outright we wer lucky as a young couple morg free

I decided i wanted to move as the house never felt like "mine" so we brought a new build iwth a small morg 40k

We then didnt like this so sold brought another house outright and rnoveated wich we had to borrow 20k to do

we then decided to move again but we have lost soo much money moveing all thses times (early replayments etc)

this time we brought a hughe house but had to lend 140k to afford it house was 215k (so shows houw much weve lost)

And know were struggling with it as hubby is self employed if we sold thats if we could even get a buyer we would be lucky to come out with 70k and to think we started with 150k :@(

I feel so upset by this and ashamed to have been given such a great starte in life and mess it up we jst dont know what to do fair to say we cant make any more mistakes

Thankyou
for listening

........................................ We have no other debt no c/c store cards etc the only luxery we have is sky which i cant cancel as on a 12 mnth contract

As hubby is self employed his income is so varible like one month he will earn 1200 bring home which is great as we can cover all the bills on this then the next month may be £500 brink home which means we have to dip in savings but cos we have been doing that regualry theres now no savings left so god knows what we will do if he has another bad month i feel like im walking on egg shells and i dont like it i feel stressed about it all the time

I know by a lot of ppl standrards were prob ok but to us we feel like were really struggling

misspoppy

Hi

Best to put up a statement of affairs and lets see if we can help you look at it in a better light.

Bella79

SOA

These are all monthly

BT telephone £22.00
SKY £18.00
PET INS £16.14
SAVINGS £26.00 (can stop paying as matures in 2 years )
WATER £35.00
LIFE INS £12.51
HOUSE INS £22.91
TV LICENCE £12.12
MORGAGE £672.34 (fixed for 3 years )
CSL sofa £50.00 (3 years)
CAR INS £30.15
COUNCIL TAX £150.00
GAS £50.00
ELEC £40.00

Thats about it for household d/d bills

then theres petrol £30.00 p/w
shopping £50.00 p/w

MY hubby also has bills out of his business acc but they come out before we got "our" wages

Tixy

Hi Owens

Whats done is done and you have to now work out a way to move forward.
Are you struggling to make the repayments on your £140k mortgage?
Has hubbys self-employed income dropped due to the recession or has it always been a struggle to make the repayments?

You either need to see if you can somehow up one of your incomes or somehow decrease costs.
Whilst you think you have no luxuries I still think it would be worth you doing a detailed financial statement - it may be that you are paying more than you need for some costs and the people on here are pretty good at spotting this. I'd recommend you complete this http://www.makesenseofcards.com/soacalc.html and post it on to here.
It may be you could get cheaper gas & elec, or utilities, or mobiles etc.

How long is your mortgage term? what interest are you paying? are you paying interest only or repayment?

If the house is large enough you could consider getting a lodger to help cover the mortgage.

Just a few thoughts
Tixy

Tixy

Hi - just seen you have posted up some costs whilst I was typing - I would suggest the full SoA as per the link above as without knowing your income details and how many people live in the house, how many cars you own etc we can't tell whether you are paying a lot or a little for things.

Bella79

me hubby and 2 year old daughter < dont fancy a lodger as having a litte girl id be a bit worried

income is so varbile its hard to say never more than £1300 take home for hubby mine is about £500 pm i dont work due to ill health

we own one car and one van both are paid for so not paying anthing monthly on those all bills for van come out of business account

morgage is repayment over 25year 3.99% intrest rate fixed for 3 years

SingleSue

Ahh so glad to see you posting over here Owens...a much more sympathetic and helpful board for your query.

We can get a bit eek on the House Price one!

misspoppy

Hi

You need to complete a full soa try this one http://www.makesenseofcards.com/soacalc.html it will take into account everything

Bella79

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 500
Partners monthly income after tax....... 1200
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1700
Monthly Expense Details
Mortgage................................ 672.3
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 40
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 22
Mobile phone............................ 0
TV Licence.............................. 12.12
Satellite/Cable TV...................... 18
Internet Services....................... 18
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 0
Car Insurance........................... 30.15
Car maintenance (including MOT)......... 13.63
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 16.14
Buildings insurance..................... 22.91
Contents insurance...................... 0
Life assurance ......................... 12.51
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 26
Total monthly expenses.................. 1598.76

Assets
Cash.................................... 2000
House value (Gross)..................... 215000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 222000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 140000...(672.3)....0
Total secured & HP debts...... 140000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
scl sofa.......................3000......50........0
Total unsecured debts..........3000......50........-

Monthly Budget Summary
Total monthly income.................... 1,700
Expenses (including HP & secured debts). 1,598.76
Available for debt repayments........... 101.24
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 51.24
Personal Balance Sheet Summary
Total assets (things you own)........... 222,000
Total HP & Secured debt................. -140,000
Total Unsecured debt.................... -3,000
Net Assets.............................. 79,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.


This doesnt look too bad but this is on a good month which has been rare lately most of the time we have been dipping into savings to pay bills which means theres now no savings left hardly

were living month to month and hoping

Also ive jst realised i havent put on there money for things like talking lo to playgroup and birthday presents not that i go too mad at birthdays

misspoppy

Hi

Couple of savings, speak to Sky about combining your telephone, sky and broadband it will work out cheaper.

Surely you don't need to spend £40 each month on presents/christmas thats £480 a year.

You don't have anything down for raod tax but do you really need two cars?

You also need to include entertainment and the odd little bits that are spent like a newspaper eating out.

You also haven't got anything in for benefits you should be able to get working tax credits and family allowance. Do you have any childcare costs?

Its not too bad but how bad is it on a bad month?

Tixy

Hi

There doesn't seem to be a lot of over expenditure on your SoA.

Does your income of £500 include all benefits such as child benefit & tax credit?
Without being too nosey about your ill health- is there any likelihood of you returning to work in the future?
Are you sure you are getting all that you are entitled to? www.entitledto.co.uk If OHs income has decreased significantly can you get your tax credit reassessed?
Could OH get a second job (employed) to give you a buffer?

Have you done the online check to see if you are in the correct council tax band?
Can you get internet access as part of your sky package to save paying extra out?
Your groceries are the area I would think you can make the biggest saving - you should be able to cut £100 off this with careful meal planning, the drop a brand challenge and cooking all meals from scratch - the oldstyle board have loads of tips for creating cheap healthy filling meals.

Is the £120 fuel all for your car? Are all your journeys necessary -especially as you are not working? Do you drive efficently? This article gives tips on how you can get the most of out of your fuel - http://www.moneysavingexpert.com/travel/cheaper-fuel
You haven't included road tax for your car?
If the £5k car just yours or have you included OHs van in this? If just yours could you sell and buy a cheap runaround?

Can't think of anything else at the moment - hopefully others will have more ideas.