Help please!! I need to start somewhere and SOA it is....

handymammy

I have made a start on my SOA and this isn't complete as I am in the process of obtaining a statement from each my creditors and my rate of interest info but if you could advise me if I am on the right lines....

My ex and I accrued most of the debt whilst we were married and then afterwards I accrued it to stay afloat. The past year it has been harder and harder for me to make the payments and I check my account constanty to see if I am overdrawn on my overdraft. I am at my wits end - I cant speak to my family about this as I dont want to hurt them or worry them. I've not been sleeping and everytime one of my kids mentions the shops I could cry!!

What makes it difficult is my ex - he has been giving me extra on top of the maintenance to pay to the bills and he has told me that he wont be doing this anymore! Weve never formalised any items such as the house as we never had any money to do this. He's decided its time to face it and if I have to move with the kids then so be it

If you could look at this for me and any advice would be so appreciated. I intend to phone for advice this weekend but I had to get this down on paper first


Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1254.99
Benefits................................ 593.64
Other income............................ 700
Total monthly income.................... 2548.63

Monthly Expense Details[/b]
Mortgage................................ 478.40
Secured/HP loan repayments.............. 597.40
Council tax............................. 132
Electricity............................. 48
Gas..................................... 60
Telephone and Internet................... 30
Mobile phone............................ 26
TV Licence.............................. 11
Satellite/Cable TV...................... 25
Groceries etc. ......................... 330
Clothing................................ 40
Petrol/diesel........................... 110
Road tax................................ 13
Car Insurance........................... 33
Car maintenance (including MOT)......... 50
Car breakdown..........23
Childcare/nursery....................... 10
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 10
Opticians....................25
Pet insurance/vet bills................. 5
Buildings and Contents insurance..................... 25
Life assurance ......................... 50
Sickness Cover.......25
Student loan.......11
Presents (birthday, christmas etc)...... 50
Haircuts................................ 15
Entertainment........................... 30
Holiday................................. 45
Emergency fund.......................... 20
Total monthly expenses.................. 2269.8

Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 1000
Endownment on mortgage............................ 4000
Total Assets............................ 105000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 73000....(478.4)....0
Secured Debt.................. 60000....(543.4)....0
Hire Purchase (HP) debt ...... 650......(34).......0<
Hire Purchase..................450......(20).......
Total secured & HP debts...... 134100....

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Overdraft...........1000......50........0
Lloyds TSB Card................5500......120.......0
MBNA/Virgin Card...............4400......120.......0
Argos..........................120.......20........0
Littlewoods....................350.......20........0
Freemans.......................140.......35........0
Next...........................550.......56........0
Northern Rock Loan.............7300......126.......0
Halifax........................4000......60........0
Egg Card.......................3000......61........0
Total unsecured debts..........26360.....668.......

Monthly Budget Summary
Total monthly income.................... 2,548.63
Expenses (including HP & secured debts). 2,269.8
Available for debt repayments........... 278.83
Monthly UNsecured debt repayments....... 668
Amount short for making debt repayments. -389.17
Personal Balance Sheet Summary
Total assets (things you own)........... 105,000
Total HP & Secured debt................. -134,100
Total Unsecured debt.................... -26,360
Net Assets.............................. -55,460

I have been trying to raise more money in the last month - ebay, surveys and mystery shopping but I now realise that it not going to.improve overnight. I have also reduced my Contents and Building and Gas and Electricity bills.

The problem that I have is my ex is still on mortgage and endownment - what happens in this situation?? The endownment is to cover 10000 of the mortgage at the end.

My car is on is last legs - i just had to borrow 500 quid from my mother to get fixed and I have now to pay or a MOT!!

Please help

MrsTinks

handymammy wrote: »

Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1254.99
Benefits................................ 593.64
Other income............................ 700
Total monthly income.................... 2548.63

Monthly Expense Details[/b]
Mortgage................................ 478.40
Secured/HP loan repayments.............. 597.40 ouch - what's this for?
Council tax............................. 132 This seems high - have you checked you're in the right banding?
Electricity............................. 48 High - look to reduce usage and check you're on the best tarif
Gas..................................... 60 High - look to reduce usage and check you're on the best tarif
Telephone and Internet................... 30 Between this and your mobile and sat you're spending £81... Go freeview or at least try to get a deal where you get mobile/landline etc in a package
Mobile phone............................ 26
TV Licence.............................. 11
Satellite/Cable TV...................... 25 see above
Groceries etc. ......................... 330 this can easily come down
Clothing................................ 40 cut to the bones - go through what you have and see if you can ebay any of it to pay for new stuff
Petrol/diesel........................... 110
Road tax................................ 13
Car Insurance........................... 33 Have you checked if you can get it cheaper?
Car maintenance (including MOT)......... 50 ouch... do you actually put this aside though or is it based on what you've just had to spend?
Car breakdown..........23 Per month??? You need to check this.
Childcare/nursery....................... 10
Other child related expenses............ 40 Such as?
Medical (prescriptions, dentist etc).... 10
Opticians....................25 per month? if it's contacts then check for cheaper online or wear glasses for a while to save.
Pet insurance/vet bills................. 5
Buildings and Contents insurance..................... 25
Life assurance ......................... 50 this seems high - have you shopped round?
Sickness Cover.......25
Student loan.......11
Presents (birthday, christmas etc)...... 50 reduce this - you can't afford £600 a year right now...
Haircuts................................ 15
Entertainment........................... 30
Holiday................................. 45 you can't afford holidays either... sorry... get a tent of freecycle and go camping instead
Emergency fund.......................... 20 How much is in the emergency fund? Or is this a "I'd like to save £20"
Total monthly expenses.................. 2269.8

Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 1000
Endownment on mortgage............................ 4000
Total Assets............................ 105000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 73000....(478.4)....0
Secured Debt.................. 60000....(543.4)....0
Hire Purchase (HP) debt ...... 650......(34).......0<
Hire Purchase..................450......(20).......
Total secured & HP debts...... 134100....

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Overdraft...........1000......50........0
Lloyds TSB Card................5500......120.......0
MBNA/Virgin Card...............4400......120.......0
Argos..........................120.......20........0
Littlewoods....................350.......20........0
Freemans.......................140.......35........0
Next...........................550.......56........0
Northern Rock Loan.............7300......126.......0
Halifax........................4000......60........0
Egg Card.......................3000......61........0
Total unsecured debts..........26360.....668.......

Monthly Budget Summary
Total monthly income.................... 2,548.63
Expenses (including HP & secured debts). 2,269.8
Available for debt repayments........... 278.83
Monthly UNsecured debt repayments....... 668
Amount short for making debt repayments. -389.17
Personal Balance Sheet Summary
Total assets (things you own)........... 105,000
Total HP & Secured debt................. -134,100
Total Unsecured debt.................... -26,360
Net Assets.............................. -55,460

OK... looking at the figures there are places to cut back but you're in serious negative equity with the house by my reaconing... Have you explained this to your ex? There is little chance of the mortgage company letting you buy him out given your finances and if you sell and the house is in negative equity (assuming you're both on the secured loan too) then he's jointly liable for the outstanding amount with you anyway...

There isn't an easy solution and I think you might find it helpful to contact the CCCS and discuss the possibilities of a DMP...

handymammy

I just want to say thank you - if I was able to speak to my mother this is exactly what she would say!!

In answer to your points:

Secured loan - first answer to spiralling debts. To be honest I wish I had been on my own at this point as I would have faced my situation when my kids where a bit younger rather than now!!

Council tax - I had made arrangements to pay them on a fortnightly basis this yr and they never activated my account. I'm ot blaming them my responsibility as well but by the time everything resolved I owed them just under £300 - overpayment to cover shortfall at end.

Electricity & Gas - just recently changed over to Eon i was paying £130 a month to this month. Must admit my heating system is older but just cant afford to replace it.

Must admit I thought I had a good internet/call package but then... Would quite happily cancel Sky - I just dont have an aerial and I would hav to pay for one to be installed. The previous owner took it with her before you ask! I know it would be a one off payment but I just never seem to have any spare cash about.

To be honest the clothes/holidays/birthdays/emergency funds have not been through any extra funds but through the cards or catalogue. The past 3 years I have saved the Sun vouchers and got away through this.

handymammy

Just realised that the rest of my answers are not showing!! - sorry

I am at the moment just buying what I need and no more - if it's not on the list then it doesn't go in my trolley as well as trying the cheaper brands.

You're right about ebay as selling items that we no longer use has definitely got me out of a hole over the past 3 months.

The car insurance I did have a look around for the best deal. My step dad is also included in this policy as he helps me to pick up and take the kids to school/nursery when I am working which would contribute to this cost.

The kids expenses is funds I put in both my daughters account - £10 a month to my teenager and I pay £5 to my 3yr old account. The rest is cash for my older daughter as I give her £6 each week that covers lunch and bus fares should she need to travel to her grans alone.

My opticians relate to my lenses - my prescription would cost me about £300 alone never mind the frame as my eyesight is poor! But you're right I should shop around for this.

The same with life assurance for the mortgage I have never changed this - this area is the one area that is a total mindfield to me. Obviously with my ex still connected it gets confusing and that's one of the reasons I have never went there.

You're right again about the car I dont to put anything by for this but I recently had to pull £500 together to get the car fixed - so that figure is based on my recent outgoings.

The Car breakdown cover is £17 which I have definitely used as being on my own just having this peace of mind has been great. With my care getting older and the trouble I have had I would say that I have used this service at least 9 times over the past six months. The extra £6 is a policy that I have recently taken out with them that should my car need fixed they will cover this cost for up to £500 if I pay the first £25 - with my recent troubles I thought that this was a great policy. The one condition is that you must show that your car has had the proper services - which I had on an annual basis.

You suggest a DMP - Can you tell me anymore about a DMP please - my house? if I would have to cash in the endownment - which is in joint names - and all the debt above is solely in my name! This would also result in a shortfall and if my credit is bad how do you get your mortgage renewed.

Thank you once again for taking the time to give me some advise as it is helping me to clear everything in my mind prior to making that phone call.

QueenBeruthiel

DMP = Debt Management Plan. Here is the support thread:

http://forums.moneysavingexpert.com/showthread.html?t=1735087

Not much to add but .... good luck!

mad_bad_spender

hi handymammy, i have only completed my SOA yesterday too so i know how hard this can be and you have taken the first step so well done for that, it has given me some hope no matter how bad things seem so i hope it does the same for you

i did check the life assurance for myself and my ex at the advise of one of the kind people on here and so i got a quote for mine and have reduced this from £16 to £10 per month with £50 cash back from Quidco so worth a bash..

you do not need to be together to get a joint life plan either so can see no reason why you cant at least shop around. if you are unsure though i would recommend speaking to someone who has more knowledge as you need to make sure you have adequate coverage

handymammy

Thanks to both QueenBeruthiel and Mad bad Spender.

It took me about a month to do and today I just feel so down ....

Had a look at the link and I must admit I am worried - I am going to do it without telling my mother and I noticed that you can get debt collectors at the door and phonng when you start down this road. My mum is in my house all week as she picks up my daughter from nursery and watches her my house until I'm home from work!! Seriously thinking of changng my phone number!!

I'm off work on Wed so i'm going to deal with it then....... Definitely need to deal wth the life assurance as this was set up by the financial advisor who arranged my mortgage 4 yrs ago. One positive I have started to look out all my paperwork - could quite easily turn to drink but no money to buy :rotfl:!!!

Horace

With regard to your glasses - if you have a complicated prescription, you should be able to get your eye test free and an NHS voucher towards the cost of your glasses - you don't actually see the voucher but the optician should apply it when your order your new glasses...also choose cheaper frames if you can. I know what its like - I used to pay £400 for lenses alone and then the frame on top of that but now I attend the eye hospital and have changed my lenses from Zeiss to plastic - my glasses cost me £149 after the NHS voucher has been applied for having poor vision. Next time you look for new glasses get smaller frames and plastic lenses - you can get thin reactolite ones.

Keep a spending diary so you know where your money is going - take packed lunches to work (and the kids can take them to school), this is cheaper than buying food there.

jules68

Hi Sorry to hear of your situation.I was there 3 yrs ago...its horrid!! I am no expert but I went on interest only mortgage, not ideal but it has kept my house.Also I have a lodger, again not ideal but the money is needed.Are you claiming single person Council tax and are you getting all your tax credits that you can claim

cavework

Don't think you need an aerial if you cancell Sky?
We didn't

isobelle

With regards to your glasses, I am an optometrist and horace is right to a certain extent if you have a very high prescription (we call it a "complex prescription") you do get a little bit of help towards the cost of glasses but your prescription does have to really quite high and this voucher is a very small amount. If you are receiving a benefit like tax credit, jobseekers allowance or income support you will get a voucher towards the cost of glasses which will be worth more money than the complex prescription voucher. The way different opticians calculate how much their glasses and lenses cost taking into account how much the value of this voucher is, varies. Generally though the higher your prescription the higher the voucher value is and the more money they deduct from the cost of your glasses. I sometimes do work for Tesco and they can do a basic single vision pair of glasses complete for £20 and that includes a scratch resistant coating. A bifocal in a basic frame is £55 and a varifocal £69. Your NHS voucher value is taken off this and so the higher the prescription the more is deducted meaning some glasses even with thinner lenses that would cost more than the above can actually still be free or of a relatively low cost. If you wish/ need to have VERY thin lenses then you will pay more of course, but then your voucher value would probably be higher so the total cost may not be too much so if you shop around you could perhaps find somewhere that will cost you less than £300. P.S. I am NOT an employee of tesco I am in fact self employed I am just using them as an example, no favouritism implied!!