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Help desperatly needed

13»

Comments

  • sarahs999
    sarahs999 Posts: 3,751 Forumite
    Also are you sure you're gettin all the benefits you should be? Have you applied for Child Tax credits? You're well unde rthe threshhold.
  • sarahs999 wrote: »
    Also are you sure you're gettin all the benefits you should be? Have you applied for Child Tax credits? You're well unde rthe threshhold.


    We are getting the benefits they tell us we are entitled to we get a small amount working tx credit that i inclded but nothing else. My husband company pay for internet so we dn't have that expense Gas & electric are the cheapest around at min we are also on a fixed rate for that until jul 2010
  • RAS
    RAS Posts: 33,848 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    kel2607 wrote: »
    Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 1 - do you absolutely absolutely need to run a car?
    Monthly Income Details
    Monthly income after tax................ 200
    Partners monthly income after tax....... 1900
    Benefits................................ 152
    Other income............................ 0
    Total monthly income.................... 2252
    Monthly Expense Details
    Mortgage................................ 1300 - is this repayment or interest only?
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 30
    Council tax............................. 155
    Electricity............................. 45
    Gas..................................... 45
    Oil..................................... 0
    Water rates............................. 40
    Telephone (land line)................... 22 - you need to reduce this if possible
    Mobile phone............................ 15
    TV Licence.............................. 12
    Satellite/Cable TV...................... 20 - has to go - freeview
    Internet Services....................... 0
    Groceries etc. ......................... 450 - I think the CCCS allowance is about £383 but you could reduce it by half or more
    Clothing................................ 0
    Petrol/diesel........................... 45
    Road tax................................ 20
    Car Insurance........................... 28
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 20
    Other child related expenses............ 40 - what are these?
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 28
    Contents insurance...................... 0 - you need this is it is not included in the above
    Life assurance ......................... 29
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40 - you need to cut this right back
    Haircuts................................ 20
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 2444

    Assets
    Cash.................................... 0
    House value (Gross)..................... 275000
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 275500

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 256800...(1300).....6.5
    Total secured & HP debts...... 256800....-.........-
    Unsecured Debts
    Description....................Debt......Monthly...APR
    barclaycard....................7150......162.......19.9
    natwest........................2200......48........12.8
    capitol one....................5260......154.......9.5
    tesco..........................5000......90........12.8
    virgin.........................5000......120.......15.2
    tsb............................4600......70........0
    egg............................3500......85........21.8
    mbna...........................7500......142.......21.2
    american express...............2920......73........15.2
    virgin.........................5500......25........0
    tesco..........................1150......33........15
    Total unsecured debts..........49780.....1002......-

    Monthly Budget Summary
    Total monthly income.................... 2,252
    Expenses (including HP & secured debts). 2,444
    Available for debt repayments........... -192
    Monthly UNsecured debt repayments....... 1,002
    Amount short for making debt repayments. -1,194
    Personal Balance Sheet Summary
    Total assets (things you own)........... 275,500
    Total HP & Secured debt................. -256,800
    Total Unsecured debt.................... -49,780
    Net Assets.............................. -31,080
    :eek::eek:]

    Hi

    Agree that you need to sell the house as the cost is crippling. Can you go interest only if that would has not already been done or get a payment holiday?

    In the short-term, you need to make sure your monthly expenditure is less than your income, so cut every back.

    You also need to talk to one of the debt charities as even if you get your rental down to £800 you are not going to be able to afford the cards and loans.
    The person who has not made a mistake, has made nothing
  • I agreee with Ras (as usual :D) you have 2 problems 1) living within your means as currently you are overspending by approx 200 pounds before debt repayments and 2) trying to pay the debt off.
    At the moment you are getting further and further into debt (as you probably already know).
    Whilst you are getting your house on the market it might be worth going to interest only on your mortgage to help stem the tide. If you can at least get your essential outgoings within your income that would help.
    You then need to look at what you can do to tackle the credit cards - you may find a dmp suitable or possibly bankruptcy? do bear in mind though that if you can sell the house and rent a lot cheaper you will have more spare money to attack the debts with.
    Oh and do go to one of the freee charities - why pay a company when the charities will give you free impartial advice.
    Best of Luck
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • mortgage is already on interest only that was the first thing we did. buildings and contents is combinined. we need the car so that i can get to work and get the children to & from school. we have been buying smart price etc and are trying to cut back our grocery as much as poss. other child costs are school uniform schooltrips and after school clubs
  • RAS
    RAS Posts: 33,848 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Hi

    I suggest going over to the old style Money Saving Forum and asking for help. You could do a storecupbiard challenge, or if you are really really brave, let them lose on your till receipt. They will help you halve your monthly spend.

    The basic is that even after you sell the house, you wll have to reduce your costs, so you need to start looking at it now. And it could give you a bit of slack to pay towards a deposit and moving.

    have you spoken to a debt charity yet?
    The person who has not made a mistake, has made nothing
  • Ames
    Ames Posts: 18,459 Forumite
    You don't have to just buy smart price to get the food bill down, cooking from scratch and batch cooking is great.
    Unless I say otherwise 'you' means the general you not you specifically.
  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi and well done for posting.

    As others have said there are some areas that you can cut back but due to the size of your debts this alone will never be enough.

    You are only earning £200 - or is that not earnings but benefits/JSA? How old are your children? Is there anyway you can earn more to help with your finances. Could you get work in the evening/weekends when hubby is around to look after the children?

    Without extra income you may be able to cut back to breakeven before debt repayments but not enough to pay towards this £50k of debts. What did you spend the money on originally (I assume recently you have been spending just to keep up with repayments).

    Selling the house or even looking at bankruptcy may an option for you. Are the debts mostly in joint names, mostly belonging to one of you or split roughly equal?

    Do seek urgent advice from one of these guys - http://forums.moneysavingexpert.com/showthread.html?t=2077631

    Good luck
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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