Getting nervous for 2010

Happy_Chappy_5

Hello all.

I've been looking at a number of posts in this section over the past few months as im starting to get very nervous about next year. It seems that having buried my head in the sand over the past 3 or 4 years I now need to do something about my ever increasing debt. At the moment I have a good % of equity in my property but am at the cross roads of getting a consolidation loan for some of or all of my debt but am terrified of doing so and therefore looking for any advice of those that have been through this themselves. Heres my SOA, please review and let me know your thoughts.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 3542.09
Partners monthly income after tax....... 300
Benefits................................ 132.8
Other income............................ 0
Total monthly income.................... 3974.89
Monthly Expense Details
Mortgage................................ 1468
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 175
Electricity............................. 85
Gas..................................... 89.5
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 11
Mobile phone............................ 15
TV Licence.............................. 11.95
Satellite/Cable TV...................... 29
Internet Services....................... 20
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 50
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 12.6
Other insurance......................... 21.14
Presents (birthday, christmas etc)...... 15
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2477.19

Assets
Cash.................................... 2800
House value (Gross)..................... 420000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 428800

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 301000...(1468).....5.58
Total secured & HP debts...... 301000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................21900.....412.3.....10.8
Loan...........................17900.....369.......6.7
C Card.........................13000.....295.7.....0
C Card.........................3300......56.47.....18.9
C Card.........................9300......188.7.....18.8
Total unsecured debts..........65400.....1322.17...-

Monthly Budget Summary
Total monthly income.................... 3,974.89
Expenses (including HP & secured debts). 2,477.19
Available for debt repayments........... 1,497.7
Monthly UNsecured debt repayments....... 1,322.17
Amount left after debt repayments....... 175.53
Personal Balance Sheet Summary
Total assets (things you own)........... 428,800
Total HP & Secured debt................. -301,000
Total Unsecured debt.................... -65,400
Net Assets.............................. 62,400

andymc29

It would be wroth consolidating those credit cards into a secured personal loan, you shouldbe able to get them on under 10% APR.
Then cut up the cards to stop further spending.
You have a good income, and there's no reason you should be saving money each month while still paying off debts. Just looks like you've been living a little beyond your means for a few years (haven't we all?).

Don't panic, just take the bull by the horns and it'll be fine. try putting things onto a spreadsheet so you can see how things can be paid off and when, then budget. your outgoings all look fine, is that a fixed rate mortage, could it be re-mortgaged one a lower rate and possibly to incorperate some of you credit card debts? Rates should stay low for the next years at least.

ThinkingOfLinking

Well done on taking the first step and posting your SOA. It would be great to start 2010 with a real action plan.

Consolidate your debts if your credit rating allows. Is there any way you could sell one of your cars and either share the one remaining car or use public transport?

Being really harsh: Do you really need Sky/TV package? Can you get out of your contract? How about shopping around for a cheaper internet deal? Do you really need insurance? Do you look for yellow stickers/BOGOFs/downshift brands/go to cheaper supermarkets for groceries?

I hope this helps. You don't look like you're really being too outlandish in your expenditure. I know when I was seriously broke (on the dole with 1/3 of that being taken off me, I had (and still do not have) even a TV. I cut back on everything and managed to live on £4 a week for food.

Numpty_Monkey

Happy_Chappy wrote: »

Hello all.

I've been looking at a number of posts in this section over the past few months as im starting to get very nervous about next year. It seems that having buried my head in the sand over the past 3 or 4 years I now need to do something about my ever increasing debt. At the moment I have a good % of equity in my property but am at the cross roads of getting a consolidation loan for some of or all of my debt but am terrified of doing so and therefore looking for any advice of those that have been through this themselves. Heres my SOA, please review and let me know your thoughts.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 3542.09
Partners monthly income after tax....... 300
Benefits................................ 132.8
Other income............................ 0
Total monthly income.................... 3974.89
Monthly Expense Details
Mortgage................................ 1468
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 175 ask to pay over 12 months
Electricity............................. 85 check you are on the best tarrif, use comparison and cash back sites, turn things off not standby
Gas..................................... 89.5 as above, turn heating down, off in rooms not used
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 11
Mobile phone............................ 15
TV Licence.............................. 11.95
Satellite/Cable TV...................... 29
Internet Services....................... 20
Groceries etc. ......................... 300 look at Old Style board , for loads of ideas
Clothing................................ 25
Petrol/diesel........................... 50 is that all?
Road tax................................ 15
Car Insurance........................... 35 might get cheaper ,use comparrison and cashback sites
Car maintenance (including MOT)......... 15
Car parking............................. 0 budget something for this
Other travel............................ 0 no buses or taxis?
Childcare/nursery....................... 0
Other child related expenses............ 0 2 children were are the school trip's and whatever kids do
Medical (prescriptions, dentist etc).... 0 budget for this £14 for 2 adults
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 12.6
Other insurance......................... 21.14 Whats this for?
Presents (birthday, christmas etc)...... 15
Haircuts................................ 20
Entertainment........................... 0 never go out, trips to pictures, a few drinks
Holiday................................. 0 budget for a few daysout at least
Emergency fund.......................... 0 worth having something in here
Total monthly expenses.................. 2477.19

Assets
Cash.................................... 2800
House value (Gross)..................... 420000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 428800

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 301000...(1468).....5.58
Total secured & HP debts...... 301000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................21900.....412.3.....10.8
Loan...........................17900.....369.......6.7
C Card.........................13000.....295.7.....0
C Card.........................3300......56.47.....18.9
C Card.........................9300......188.7.....18.8
Total unsecured debts..........65400.....1322.17...-

Monthly Budget Summary
Total monthly income.................... 3,974.89
Expenses (including HP & secured debts). 2,477.19
Available for debt repayments........... 1,497.7
Monthly UNsecured debt repayments....... 1,322.17
Amount left after debt repayments....... 175.53
Personal Balance Sheet Summary
Total assets (things you own)........... 428,800
Total HP & Secured debt................. -301,000
Total Unsecured debt.................... -65,400
Net Assets.............................. 62,400

I've left a few comments hope there not to hard:A
It looks like you have a surplus, I'll bet you don't
First sugguestion, keep a spendinding diary, list everything you spend money on
Second your Gas and Electric is very high, are you paying off arrears?
Learn to turn things off not put on standby, lights swap to low energy bulbs where practicable
and turned off in rooms not used
Gas, turn the thermostat down, 20 degrees is more than warm enough, turn off heating in rooms not used, if your out no need to keep the spiders warm;)
Use Martins article http://www.moneysavingexpert.com/utilities/

HTH

Consolidating very rarely works
and it's not advisable to turn unsecured debts into secured debts
1 your home will be at risk
2 the extra intrest over the years usually out ways it
3 your home is at risk (same as point 1 but worth making twice)

Frozenace

O2 has got the 7.50/month deal, which I took up recently as well, switching down from their 17.50 deal....

Btw. When does your mortgage deal end?

Happy_Chappy_5

thanks for the comments!

Frozenace - mortgage is fixed for another 3 years so thats not the concern, im more concerned about the 0% credit card expiring in September. the mobile tariff is with virgin and is a 30 day rolling contract so will check usage and downgrade if unused minutes and texts.

Numpty - thanks I'll look at amending some of the budget on the SOA and will update it accordingly. The petrol is working on the assumption that I get rid of my car and therefore will only have to fill one tank each month!

Andymc - im considering consolidating the credit cards, but am concerned that I'll be refused due to the other loans and dont want to secure the entire amount of unsecured debt.

pepe2008

15% equity in your house ( taking into account all borrowings) is not much, to be blunt.

Be very careful about taking out more secured borrowing, you may find it all but impossible to raise at decent rates looking at your overall situation.

Have a chat to a fee-free debt charity ( CCCS, Payplan etc ) you may be able to get a debt management Plan going which, at the very least will buy you some time.

I have 70% equity in my house....but I have my debts on a Debt Mangement Plan. Its all about protecting your assets and repaying your debts responsibly. Secured debt puts you at risk!

Frozenace

Do you have any stuff that you can sell, cameras, books, cds etc.

Collectibles fetch a good price too...