Huge debts - advice please

the_spenders

Hi
We're having serious financial difficulties. We've got huge debts, reduced income (I work part-time due to young children), in negative equity etc. We're struggling and can't see how we can get out of our mess. We'd appreciate any advice on how to make cuts or what to do about the crippling loan repayments each month. We're currently robbing Peter to pay Paul and it can't go on! Have completed a SOA so will post it asap...

the_spenders

Here's the SOA...

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.................... 2
Monthly Income Details
Monthly income after tax................ 852
Partners monthly income after tax....... 2200
Benefits................................ 177
Other income............................ 0
Total monthly income.................... 3229
Monthly Expense Details
Mortgage................................ 1164
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 27
Gas..................................... 40
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 21
Mobile phone............................ 45
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 37
Car Insurance........................... 49
Car maintenance (including MOT)......... 35
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 230
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 9
Contents insurance...................... 9
Life assurance ......................... 81
Other insurance......................... 40
Presents (birthday, christmas etc)...... 45
Haircuts................................ 25
Entertainment........................... 40
Holiday................................. 30
Emergency fund.......................... 20
Exceeding overdraft fees ............... 8
Overdraft interest 1.................... 30
Union Fees.............................. 9
Gas/Boiler Insurance.................... 23
Total monthly expenses.................. 2865

Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 185000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 190224...(1164).....6.49
Total secured & HP debts...... 190224....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft - 1..................1000......0.........18
Overdraft - 2..................2500......0.........18
Visa - Virgin 1................992.......25........0
Car loan ......................3000......100.......0
Loan - Tesco...................13613.....223.......6
Visa - Tesco...................4660......100.......15
Visa - Virgin 2................4880......150.......18.9
Total unsecured debts..........30645.....598.......-

Monthly Budget Summary
Total monthly income.................... 3,229
Expenses (including HP & secured debts). 2,865
Available for debt repayments........... 364
Monthly UNsecured debt repayments....... 598
Amount short for making debt repayments. -234
Personal Balance Sheet Summary
Total assets (things you own)........... 185,000
Total HP & Secured debt................. -190,224
Total Unsecured debt.................... -30,645
Net Assets.............................. -35,869

Making sense of Money

cookie220985

the_spenders wrote: »

Here's the SOA...

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.................... 2
Monthly Income Details
Monthly income after tax................ 852
Partners monthly income after tax....... 2200
Benefits................................ 177
Other income............................ 0
Total monthly income.................... 3229
Monthly Expense Details
Mortgage................................ 1164
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 27
Gas..................................... 40
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 21
Mobile phone............................ 45(can you not reduce this?, or get a free package on network??)
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400(this should defintely be reduced!! im a mum of 3 and i dont spend this much on groceries)
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 37
Car Insurance........................... 49
Car maintenance (including MOT)......... 35
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 230
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 30(are you not entitled to any exemption?)
Pet insurance/vet bills................. 0
Buildings insurance..................... 9
Contents insurance...................... 9
Life assurance ......................... 81
Other insurance......................... 40
Presents (birthday, christmas etc)...... 45
Haircuts................................ 25
Entertainment........................... 40
Holiday................................. 30
Emergency fund.......................... 20
Exceeding overdraft fees ............... 8
Overdraft interest 1.................... 30
Union Fees.............................. 9
Gas/Boiler Insurance.................... 23
Total monthly expenses.................. 2865

Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 185000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 190224...(1164).....6.49
Total secured & HP debts...... 190224....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft - 1..................1000......0.........18
Overdraft - 2..................2500......0.........18
Visa - Virgin 1................992.......25........0
Car loan ......................3000......100.......0
Loan - Tesco...................13613.....223.......6
Visa - Tesco...................4660......100.......15
Visa - Virgin 2................4880......150.......18.9
Total unsecured debts..........30645.....598.......-

Monthly Budget Summary
Total monthly income.................... 3,229
Expenses (including HP & secured debts). 2,865
Available for debt repayments........... 364
Monthly UNsecured debt repayments....... 598
Amount short for making debt repayments. -234
Personal Balance Sheet Summary
Total assets (things you own)........... 185,000
Total HP & Secured debt................. -190,224
Total Unsecured debt.................... -30,645
Net Assets.............................. -35,869

Making sense of Money

groceries seem way high, as i said, im a um of 3 and dont spend that much on groceries in a month. I have a free text package, so only top up when ts due to run out. Can you not walk short distances and bus journeys for short trips to save on fuel? Clothing at £40 a month does seem high when you have more than 1 kid, are they 1 of each or both the same sex, all mine are girls so i just used hand me downs and 1 fresh clothes shop of £5-15 a month. If your working part time, are you not entitled to tax credits and tax exemption card for medical prescriptions and treatment.?

bigpound

Mobile phone and groceries is WAY too high!

cookie, please don't quote huge posts

Professor_Pat_Pending

I'm in a similar position, contact payplan or the CCCS, they are fab and will talk you thru your options, of which you have a few. Don't be too down, everyone on here has a similar tale. Coming clean is the hardest part I'm told.

Shoe_Gal

Good advice

Well done for posting and good luck

the_spenders

Thanks for the ideas already.

Agree that I could definitely walk short journeys to save petrol.

Mobile phone. My monthly contracts is £15 + VAT, hubby's is £20 + VAT. Thought they were ok??? No??

Groceries - I'm really puzzled about how other posters have such cheap grocery bills. The £400 is for 2 adults + 2 children per month, cooking from scratch every night (except a frozen pizza say, twice a month though I can also make these from scratch so will do), we never eat out so all meals are included in this, all lunches are home made and taken to work + also includes all toiletries, household, nappies items etc as well. Is it still high?

Prescriptions was an estimate - perhaps I estimated too high. Should we be eligible for tax credit help with prescriptions??

Thanks

cookie220985

well, we spend £55 a week on 3 kids n 2 adults, including nappies n wipes, a 6yr old, 4 yr old n 1yr old. dinners are packed unches for work. I walk 4miles for an hour to work just to save on £8 for a taxi, or £10 petrol a week. Together our household is on £13k a year tax exempt and paying out childcare, though i must admit i save aside £12 a month for a anual tv licence that ends up working out cheaper in the long run, i live off freecycle and do clothes swap parties in my area to save spending on clothes.

when u cook,do you save extra and freeze? i use supermarket own nappies in daytime and re-usable washable nappies in night. saves about £6 a week. as for tax credits, have you checked here to see your entitlements??
http://www.moneysavingexpert.com/family/benefits-check

WASHER

bigpound wrote: »

Mobile phone and groceries is WAY too high!

cookie, please don't quote huge posts

Welcome Bigpound, I see you are fairly new to the DFW board, it is perfectly acceptable for someone to quote the SOA, otherwise it is difficult to comment on the outgoings.

WASHER

the_spenders wrote: »

Here's the SOA...

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.................... 2
Monthly Income Details
Monthly income after tax................ 852
Partners monthly income after tax....... 2200
Benefits................................ 177 - does this include Child tax credits? (childcare element?)
Other income............................ 0
Total monthly income.................... 3229
Monthly Expense Details
Mortgage................................ 1164
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108
Electricity............................. 27
Gas..................................... 40
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 21
Mobile phone............................ 45 - a little too high
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400- I know lots of people on this board can spend £250 per month for 4, I personally have tried it numerous times, and I'm still unable to reduce it to less than £350, set yourself a challenge to reduce by £20 this month and £20 the following month.
Clothing................................ 40
Petrol/diesel........................... 200
Road tax................................ 37
Car Insurance........................... 49
Car maintenance (including MOT)......... 35
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 230
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 9
Contents insurance...................... 9
Life assurance ......................... 81:eek: Life insurance is very important and shouldn't be cancelled, however this is too much, what does this include, if critical illness I would say its ok, but if not, far far too high
Other insurance......................... 40 - whats this?
Presents (birthday, christmas etc)...... 45 - reduce to £30 per month and set up a standing order and save this per month
Haircuts................................ 25 - too much per month
Entertainment........................... 40
Holiday................................. 30 - you can't afford a holiday...sorry
Emergency fund.......................... 20 - this is your emergency, however make sure you set up a standing order for this too and put it into a savings account, you will need it incase your washing machine breaks down
Exceeding overdraft fees ............... 8
Overdraft interest 1.................... 30 - you are spending £38 on overdraft fees every month, it is too much, you need to reduce your overdraft by reducing your spending
Union Fees.............................. 9
Gas/Boiler Insurance.................... 23 - how old is your boiler?
Total monthly expenses.................. 2865

Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 185000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 190224...(1164).....6.49
Total secured & HP debts...... 190224....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft - 1..................1000......0.........18
Overdraft - 2..................2500......0.........18
Visa - Virgin 1................992.......25........0
Car loan ......................3000......100.......0
Loan - Tesco...................13613.....223.......6
Visa - Tesco...................4660......100.......15
Visa - Virgin 2................4880......150.......18.9
Total unsecured debts..........30645.....598.......-

Monthly Budget Summary
Total monthly income.................... 3,229
Expenses (including HP & secured debts). 2,865
Available for debt repayments........... 364
Monthly UNsecured debt repayments....... 598
Amount short for making debt repayments. -234
Personal Balance Sheet Summary
Total assets (things you own)........... 185,000
Total HP & Secured debt................. -190,224
Total Unsecured debt.................... -30,645
Net Assets.............................. -35,869

Making sense of Money

Well done for posting, I have added comments in above. You are £234 short each month, I would personally take advice from the likes of CCCS (a debt charity) who can and will advise you on the best course of action. Its free and recommended by many on this board. Take a look at there website.

Poosmate

Hi Spenders congrats on posting, you'll get loads of help on here.

Here's my two penneth worth:

the_spenders wrote: »

Here's the SOA...

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.................... 2 Can you sell one?
Monthly Income Details
Monthly income after tax................ 852
Partners monthly income after tax....... 2200
Benefits................................ 177 Check out entitledto.com to see if you're claiming all you can
Other income............................ 0
Total monthly income.................... 3229
Monthly Expense Details
Mortgage................................ 1164
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 108 Can you pay this over 12 months instead of 10?
Electricity............................. 27
Gas..................................... 40
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 21 Can you only make calls after 7pm if on BT Anytime tarriff?
Mobile phone............................ 45 Cancel contracts and go Tesco PAYG top up £10pcm and they triple it to £30?
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 Try dropping a brand or shopping at Aldi/Lidl
Clothing................................ 40 This is too much your wardrobes must be busting! Can you Ebay any clothes kids have grown out of?
Petrol/diesel........................... 200
Road tax................................ 37
Car Insurance........................... 49
Car maintenance (including MOT)......... 35
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 230
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 30 Can you get one of those pre pay certificates?
Pet insurance/vet bills................. 0
Buildings insurance..................... 9
Contents insurance...................... 9
Life assurance ......................... 81 Seems a lot
Other insurance......................... 40 What's this?
Presents (birthday, christmas etc)...... 45 Far too much atm!
Haircuts................................ 25 Again far too much atm!
Entertainment........................... 40
Holiday................................. 30 Is this already booked?
Emergency fund.......................... 20
Exceeding overdraft fees ............... 8 Is the other o/d maxed? If not use it rather than incurr these fees each month!
Overdraft interest 1.................... 30 As above
Union Fees.............................. 9
Gas/Boiler Insurance.................... 23
Total monthly expenses.................. 2865

Assets
Cash.................................... 0 Where is the £20 per month going?
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 5000 Sell one and downgrade/size the other?
Other assets............................ 0
Total Assets............................ 185000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 190224...(1164).....6.49
Total secured & HP debts...... 190224....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft - 1..................1000......0.........18
Overdraft - 2..................2500......0.........18
Visa - Virgin 1................992.......25........0
Car loan ......................3000......100.......0
Loan - Tesco...................13613.....223.......6
Visa - Tesco...................4660......100.......15
Visa - Virgin 2................4880......150.......18.9
Total unsecured debts..........30645.....598.......-

Monthly Budget Summary
Total monthly income.................... 3,229
Expenses (including HP & secured debts). 2,865
Available for debt repayments........... 364
Monthly UNsecured debt repayments....... 598
Amount short for making debt repayments. -234 This is how much you need just to break even!
Personal Balance Sheet Summary
Total assets (things you own)........... 185,000
Total HP & Secured debt................. -190,224
Total Unsecured debt.................... -30,645
Net Assets.............................. -35,869

Making sense of Money

I don't mean to alarm you but very often on these SOA's people are not managing even with a surplus of cash showing on their SOA so £234 is probably the minimum you need to find in order to service your debts and live.

However, all is not lost, there are savings to be made in your SOA as highlighted.

Is there any chance you could get another part time job maybe in the evenings when OH is at home to look after the kids?

Can you sell anything on Ebay/Amazon/Gumtree?

You could actually stop budgeting for birthdays/Chrismas and instead do surveys online and "daily clicks" - they take a while but if you start now you should have enough for high street vouchers to cover Christmas. There's a thread on this forum about the daily clicks - apparently you can earn about £3 per day for about half an hours work. Haven't tried it myself but check out Eager Learner's thread.

Also check out the Up Your Income board too. I've seen on there a thread called "Tasteradar" (or something like that). Basically a company will pay you up to £25 per month to review fruit and veg - you just have to supply the receipts for said goods. Check out the thread.

Also, never buy anything online unless you are registered with a cashback site such as Quidco, Cashbackkings or Topcashback. I am about to receive £70 for taking out my car insurance online through Quidco.

You can get cashback on so many different products, changing utility suppliers, car, life, building, contents insurances, car breakdown cover, even shopping on line at Asda (that's only up to £5 though)!

That's allI can think of atm - it's too late now (oh! Nearly 4am so maybe too early!)

Hope that helps

Poo