Worried....

CCRUDDEN

Hi Folks,

Just wondering if anyone can help... My situation at the mo.

I have a mortgage with my gf on a house. Shared ownership, mortgage is for 75% of the house 20% devloper and 5% deposit ive paid. Went to the halifax to see if i can get a payment holiday in order to clear my gf's CC debt and store card. They are unwilling to grant the holiday because it is a shared ownership.

ATM all I am fit to pay of the credit cards is the minimum payments and the bill each month isnt getting any lower. I was kind of banking on getting the payment holiday for christmas but that doesnt look likely. It also seems that i have a poor credit rating so cant go for a 0% balance xfer either...Any ideas??

LuckyBiscuit

Post a SOA and the wonderful people here can see where u can make savings to pay off the CC and store cards.
Can you sell anything to clear the debt???
Christmas!!! Ive got 2 teenagers and they are very grounded, you can't buy wot you can't afford!!
Good luck on your journey!!!

CCRUDDEN

SOA?

Is there any CC that would offer 0% for poor credit rating or is it possible to get a loan for poor credit? Maybe even from Halifax?

LuckyBiscuit

SOA is statement of affairs, income and expenditure, the guys on here then go through it and tell you where you can make cuts/savings on your monthly outgoings to put the money to your debt
you don't say how much the debts are, putting on a soa, helps people evaluate the situation better.
There is a link on here im sure someone will come along and post it............

Tixy

You will not get a 0% card with a poor credit rating - even with a good rating if they believe that you already have as much debt as you can service you would struggle to get one.

You may get a loan from you current bank but unlikely to be at a good ratin.

The SOA is a statment of affairs - or income & expenditure statement. If you work out a detailed monthly budget you may find areas where you can save money on your outgoings or if you post on here others may highlight some areas you can make savings to help you afford to repay your girlfriends debts at a quicker rate.
http://forums.moneysavingexpert.com/showthread.html?t=107280

CCRUDDEN

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1050
Partners monthly income after tax....... 800
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1850

Monthly Expense Details
Mortgage................................ 508
Secured/HP loan repayments.............. 377
Rent.................................... 520
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 40
Gas..................................... 20
Oil..................................... 20
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 20
Satellite/Cable TV...................... 20
Internet Services....................... 10
Groceries etc. ......................... 120
Clothing................................ 40
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 150
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 40
Contents insurance...................... 20
Life assurance ......................... 60
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2150


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 86000....(508)......5.25
Secured Debt.................. 3600.....(200)......9
Hire Purchase (HP) debt ...... 8000.....(177)......0
Total secured & HP debts...... 97600.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
UB Credit Card.................750.......14........19
Argos .........................345.......20........29.9
Total unsecured debts..........1095......34........-


Monthly Budget Summary
Total monthly income.................... 1,850
Expenses (including HP & secured debts). 2,150
Available for debt repayments........... -300
Monthly UNsecured debt repayments....... 34
Amount short for making debt repayments. -334

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -97,600
Total Unsecured debt.................... -1,095
Net Assets.............................. -98,695

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Tixy

A repayment holiday or consolidation loan are not really going to help when you are showing such a shortfall each month, especially as you have a £300 shortfall before debt repayments. You either need to increase your income or significantly reduce your outgoings just to make your costs balance.

You are using more than 50% of your combined income on your mortgage/rent, which is presumably one of the reasons you are really struggling to balance each month.
If you own 75% of the house (and put a deposit down) then your rent seems very high for the remaining 25% - is there anyway you can renegotiate this cost at all?

You don't have anything in for council tax or water rates? are you getting benefits for these?

Is your car insurance really £150 per month? thats horrendous high - have you checked its the cheapest you can get? would it be any less if you got someone older on the policy as a named driver? a parent perhaps?

Buildings & contents could almost certainly be got cheaper - I pay £22 pm combined on a house worth £160k. You need to shop around for cheaper on the comparison sites. Life insurance also very expensive given your ages, should be able to easily halve this.

Can either of you increase your income, get a second job? take in a lodger?