I failed.

Numpty_Monkey

Mr_Original wrote: »

Thanks to all for your thoughts so far, here is my SOA as requested, sorry for not posting it before:

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 62
Electricity............................. 7.5 is that correct?
Gas..................................... 20
Oil..................................... 0
Water rates............................. 7.75 is that correct?
Telephone (land line)................... 8.5 thats a good deal
Mobile phone............................ 50 need to reduce, Change contract /tarrif if possible
TV Licence.............................. 0 Need to budget £12 per month
Satellite/Cable TV...................... 0
Internet Services....................... 4.99 Good deal
Groceries etc. ......................... 175 can be cut in half, meal planning, drop a brand, OC board are amazing :A
Clothing................................ 0 budget £5 here
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0 do you walk everywhere?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 budget £5 here
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 reduce to £10
Haircuts................................ 10
Entertainment........................... 100 needs to come down £30
Holiday................................. 0
Emergency fund.......................... 0
Gym..................................... 48.5 This needs cancelling, beware of the T&C's;)
Online backup .......................... 7
Lloyds overdraft fees................... 100 new basic Bank account not link to Lloyds is a must
Lloyds interest......................... 30
Lloyds account charge................... 17
Total monthly expenses.................. 1228.24


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
FirstPLus......................16570.....215.2.....8.3
Lloyds loan....................5000......138.4.....15.42
RBS overdraft..................100.......0.........0
lloyds overdraft...............3000......0.........17.76
egg money card.................500.......15........21.9
egg credit card................500.......15........21.9
purchase credit - del..........550.......19.97.....18.9

?!

I've left a few comments Are the electric and water really £7.50 and £7.75 a month, I thought I did well on £15

Don't worry it's when you post an SOA and other people spot things then everything starts to come together:A
You really need to open a Basic bank account designed for Bakrupts so you will get one,
but it can't be linked to any of your creditors
I think Co-Op cashminder


HTH:A

davidgmmafan

Ok first let me say some of the 'advice' on this website and other sometimes appears a bit harsh but here I have to say you need some tough love buddy.

Some observations. You spend £100 per month on going out and £100 is what your OD costs one could cover the other. Re the mobile do you mainly text? If so T-Mobile do unlimted texts on pay and go for £10 a month. O2 used to do same but I believe it is now £15 (I'm on the £10 one).

Regarding shopping I pay around £170 per month for two adults, I'll let you into the secret. With the overwhelming majority of stuff the quality is the same and you are just paying for the packaging. Notice I'm not saying all 'cos there are some own brand products which I wouldn't touch with a bargepole. All I ask is that you try the cheapest alternative. If its awful you've lost nothing since they typcially cost a fraction of the brand name price. If you like it you are quids in.

You list LLoyds overdraft fees as £100, interest as £30 and there is an account charge too? What are you paying that for. You are spending £147 a month on a bank account or £1764 per year. That's over a months wages.

The bad news is you are going to have some pain, the good news is you have a surplus now, even with these massive charges. Regarding going bankrupt this should be a last resort. You say you aren't thinking of buying for years but I believe bankruptcy has to be declared on mortgage applications forever.

I would suggest a Debt Management plan at this stage. CCCS or Payplan will speak to your creditors at no cost to yourself. Whilst there is no guarantee that they will get interest and charges frozen it can't hurt to try.

Sorry if this seems harsh, I've tried to be as straight as possible. You can't expect to get out of the mess with no effort, and when you say what kind of life is that all I can say is that is what led to this. So its either carry on like this for ever, or go bankrupt, which by the way will cost around £500, and ruin your credit for six years. An IVA is an option which would freeze interest but you have no assets to protect so no pressing need for one.

Or knuckle down, make some real choice and start making things happen. Try not to think of it in terms of sacrifices think of it as choices. For example if you have £100 would you rather spend it on one thing you enjoy a lot or lots of little things?

My partner and I are on a tight budget but we both like to spend the occaisional Sunday on the pub so we budget for it.

Good luck


One last tip re-read your own post and think about how you would respond if that were someone else's post.

Mr_Original

nikki2804 wrote: »

Definetely cut the grocery costs. I can feed a family of 3 (including buying baby milk) on less than £80 a month - we eat very well.

how on earth do you do that? thats less then £20 a week!?

Spirit wrote: »

Hi

In a nut shell your housing and utility costs are almost £700 per month, then another £175 a month on groceries. Look at that as a % of your income - when you are coming to the end of yoyr tenancy you should really talk to your mum about moving home and paying a fair rent for 'board'.

You actually raise a very good point. Other half my wage is on just bills and a roof, let alone my current debt and food. I have just been on gum tree to see whats around, and the road next to mine has a room for 100pw all in! Argh! There is no way I can move back home, my relationship with my mum would not allow it, but £400 is good right? I would be willing to take the difference in the flat

Numpty_Monkey wrote: »

I've left a few comments Are the electric and water really £7.50 and £7.75 a month, I thought I did well on £15

sorry i should of specified, all bills are split with my housemate, so the actual cost is double everything i list!

Money_maker wrote: »

We were in a bad position with debts that took us 7 years to clear - all with a family and mortgage. We spent the money so we had to take the responsibility to repay it. I still dont think you've had your LBM yet.

well done for clearing your debt!
I am interested that you don't think you have had my LBM. I go through mixed feelings with my debt, its all too easy to just ignore it, then when i sit down and analyze it i get angry, at myself mostly for being so stupid so im well aware of the problems i have caused myself. Its very hard to change almost 5 years of behaviour though

Regarding my bank situation, this is something else I have messed up with. I recently applied for a new abbey account, which was recommended on this site as it got you a free £100 bonus. I went through the lengthy application process and eventually got rejected as they would not accept the big overdraft. They eventually downgraded my account so some basic one, so i do already have that account.

I then applied for that one that is all black (o forget the name now) which was also offering 100 bonus. They rejected me out right citing credit....

However I am nervous about changing. I currently have a "platinum" account (bigger waste of money EVER!) and I am scared about cancelling it and abandoning the bank account. My overdraft is due for review in July 2010 and i would be concerned if i downgrade it and stop using it, lloyds would just ask for all the money back. Which i do not have. Has anyone had any experience with that? should i move my wage and direct debits to go in and out of abbey?

My biggest stress in all this is telling my girlfriend. We currently go out at least once a week so she believes me to be a well adjusted member of society who can control his money and has a good job. How the heck am i suppose to tell her im actually a loser in a lot of debt? As stated previously up thread, woman don't want debt ridden men. Maybe losing her will save me a lot of money anyway so its the way to go! When I was single i basically lived on baked potatoes and porridge, that doesn't cost anything

Ahhhhhhhh

Numpty_Monkey

Deffinatly move wages and DD's and any money in that account to abbey, and do it before you tell Lloyds, the overdraft will then become another debt:rolleyes:

As for you'r girlfriend, chances are she will have guessed something is wrong and might be able to offer some support

littlemissmoney

Mr_Original wrote: »

My biggest stress in all this is telling my girlfriend. We currently go out at least once a week so she believes me to be a well adjusted member of society who can control his money and has a good job. How the heck am i suppose to tell her im actually a loser in a lot of debt? As stated previously up thread, woman don't want debt ridden men. Maybe losing her will save me a lot of money anyway so its the way to go! When I was single i basically lived on baked potatoes and porridge, that doesn't cost anything

Ahhhhhhhh

How do you know she isn't in loads of debt and is worried about telling you? Just be honest. You don't have to tell her the full extent of your debt right now. Just say things are "a bit tight" after xmas and suggest some free/cheap, romantic things to do (walks in park, picnics, home cooked candle link dinners, etc).

shrimpy_80

Mr_Original wrote: »

However I am nervous about changing. I currently have a "platinum" account (bigger waste of money EVER!) and I am scared about cancelling it and abandoning the bank account. My overdraft is due for review in July 2010 and i would be concerned if i downgrade it and stop using it, lloyds would just ask for all the money back. Which i do not have. Has anyone had any experience with that? should i move my wage and direct debits to go in and out of abbey?

I was with HSBC and frequently incurred charges, when my account was due for review they revoked my overdraft completely. The letter they allegedly sent informing me of this never arrived, the first I knew was when I had a phone call the day after I had been paid telling me that my account had been frozen and I needed to pay £1400 there and then. Obviously I couldn't do this, I was recommended a managed loan in branch and then refused, the account was referred to Collections, who agreed to reinstate the OD temporarily until I could repay it. They strangely didn't agree a repayment sum and the OD is still there today (now being paid off after paying off other debts) Getting it sorted was horrendously stressful and as I lived from one pay day to the next left me penniless (temporarily) and unable to pay my rent. I would take the advice here and transfer your salary into another account immediately. Set up a Direct Debit to cover the interest on your OD so you don't incur further charges, then if it is ultimately revoked, you can cross that bridge when you come to it. At least you will have access to your wages to keep a roof over your head and food in your cupboards.

Sorry for the monster post! I know it seems very bleak but chances are, if you have nothing to show for your spending you won't miss it too much once you've adjusted. This was definitely the case for me.

davidgmmafan

I'd say she has a right to know, I mean if she's 'the one' then not telling her won't go down too well. And if telling her does lead to the end of your relationship then its better to know now.

I know its not as easy as that, but like they said above for all you know she may be in the same boat!

shrimpy_80

Also forgot to say, well done for coming on here. You will feel so much better once you feel in control of your debt rather than vice versa, which I promise will happen if you stick around and take the good advice you will find here.

Agree with littlemissmoney about the girlfriend too, you don't have to tell her if you don't feel happy doing so. Bear in mind though that if it is/does become serious, she may find out anyway and be cross/upset you didn't tell her sooner. Not trying to pry into your circumstances though so only you know what is best!

nikki2804

Mr_Original wrote: »

how on earth do you do that? thats less then £20 a week!?

Because SMP doesn't stretch all to far!!

1.I mainly get my meat from a butcher rather than supermarket - better quality, fraction of the price.
2. We eat a lot of HM soup - very filling if served with bread.
3. Bulk things out and plan meals around what we have in the cupboards/freezer
4. I bought another freezer so that when there are offers on etc I bulk buy
5. My costco membership is good aswell, juice etc are well priced

But seriously my OH had debt and we were lucky enough to be able to clear it before our baby arrived. We can't get a mortgage because hes 'blacklisted'. Its not fun.

We did have an income of £32k jointly, it will drop to £24k cos I am not part time (well when I go back) but we run a house, a car and have the occasional night out with money left over at the end of the month for our savings account. I'm the same age as you but realise that if I have no cash it means not going out (not that I get too much with a baby but anyway)

Although you have had a partial LBM I think you need to focus on it more. Realise that its not going to go away. Don't do what my OH does and dismiss it with a "it'll be fine"

At least your getting there, admitting you have a problem is the biggest step. Normally I would suggest staying away from an IVA but the amount owing is quite a lot. Best to probably speak to the National Debt Line and such for impartial advice.

Feel free to join us om the "turn £100 into 10k thread". Its a really inspirational thread and many people have made money without the initial outlay. An every little extra is a bit off your debt!!

HTH

Mikeone

Mr_Original wrote: »

I am interested that you don't think you have had my LBM. I go through mixed feelings with my debt, its all too easy to just ignore it, then when i sit down and analyze it i get angry, at myself mostly for being so stupid so im well aware of the problems i have caused myself. Its very hard to change almost 5 years of behaviour though

Mate, I’ve got to echo some of the sentiments above, I’m not sure you’ve had your LBM yet. Trust me, I was the same for such a long time –I thought I was determined to clear my debts, but I wasn’t prepared to knuckle down and really do something about it. It’s only fairly recently that I actually sat down and worked out a roadmap out of my situation. Once I did, things began to get better very quickly.

I was put off by the thought of having to go without things I enjoyed, and having to sacrifice the fun things in life while I was still young. However, after reading some of the posts on this board, I realised that being a DFW does not mean living like an ascetic, or sacrificing all but the most essential outgoings until the debt is cleared –if it did, far fewer people would achieve it!

For me, and many other DFW’s the key is to educate yourself about personal finance, budgeting and taking control. You can still lead an enjoyable and active life, as long as you remain in control of your finances. Once you do this, you will find yourself getting less angry about the situation, as you are controlling it, and it is not controlling you!

Visit this site as often as you can for the next couple of weeks and inhale the combined wisdom of those who have been through it. When I find things difficult (and we all still do!) I have a quick read of the Roll of Honour to inspire me to continue.


You’ve made the right start by coming here and getting it off your chest. I wish you the very best of luck in your DFW journey.