Please Help Me Out, Im Lost

IrishJohn_2

Im 28 and got a horrible feeling that the whole world is against me, then i see people here who are all going through the same. Short of running away and joining a cult i dont know what to do!

Heres my SOA


Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1421
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1421

Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 15.39
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 35
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 8
Mobile phone............................ 60
TV Licence.............................. 15
Satellite/Cable TV...................... 14
Internet Services....................... 0
Groceries etc. ......................... 260
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 38
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 15
Total monthly expenses.................. 1190.4


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 114000...(320)......6.3
Hire Purchase (HP) debt ...... 300......(15.4).....0
Total secured & HP debts...... 114300....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................5500......144.......0
HSBC Credit Card...............700.......40........0
EGG............................3500......77........0
Barclaycard....................4700......104.......0
Total unsecured debts..........14400.....365.......-


Monthly Budget Summary
Total monthly income.................... 1,421
Expenses (including HP & secured debts). 1,190.4
Available for debt repayments........... 230.6
Monthly UNsecured debt repayments....... 365
Amount short for making debt repayments. -134.4

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -114,300
Total Unsecured debt.................... -14,400
Net Assets.............................. -128,200

On top of this i also have an overdraft with HSBC of 1100 and Cooperative Bank of 300. Both of which are unpaid and remain there in the horizon. I do all my banking through Alliance and Leic - which i do not owe anything to!


Ive been in touch with National Debt Helpline who were very helpful and have referred me to CASHFLOW worker. However,they also mentioned an IVA to me....

Anybody with anything to say would be greatly received in this life and the next

psychopathbabble

IrishJohn wrote: »

Im 28 and got a horrible feeling that the whole world is against me, then i see people here who are all going through the same. Short of running away and joining a cult i dont know what to do!

Heres my SOA


Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1421
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1421

Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 15.39
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 35 can you pay this over 12 months? not much of a saving but it all helps.
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 8
Mobile phone............................ 60 this is WAY too high!
TV Licence.............................. 15
Satellite/Cable TV...................... 14 unnecessary
Internet Services....................... 0
Groceries etc. ......................... 260 this should be halved, check out old style thread for meal ideas etc etc.
Clothing................................ 20 use what you have for now, dont buy anything new
Petrol/diesel........................... 200 can this be cut down?
Road tax................................ 10
Car Insurance........................... 38 use comparison sites when renewal due
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 30 whats this for?
Holiday................................. 0
Emergency fund.......................... 15
Total monthly expenses.................. 1190.4


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 114000...(320)......6.3
Hire Purchase (HP) debt ...... 300......(15.4).....0
Total secured & HP debts...... 114300....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................5500......144.......0
HSBC Credit Card...............700.......40........0
EGG............................3500......77........0
Barclaycard....................4700......104.......0
Total unsecured debts..........14400.....365.......-


Monthly Budget Summary
Total monthly income.................... 1,421
Expenses (including HP & secured debts). 1,190.4
Available for debt repayments........... 230.6
Monthly UNsecured debt repayments....... 365
Amount short for making debt repayments. -134.4

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -114,300
Total Unsecured debt.................... -14,400
Net Assets.............................. -128,200

On top of this i also have an overdraft with HSBC of 1100 and Cooperative Bank of 300. Both of which are unpaid and remain there in the horizon. I do all my banking through Alliance and Leic - which i do not owe anything to!


Ive been in touch with National Debt Helpline who were very helpful and have referred me to CASHFLOW worker. However,they also mentioned an IVA to me....

Anybody with anything to say would be greatly received in this life and the next

You can cut down a bit, if you cut down your groceries you can probably find the shortfall from there then use the other suggestions to pay a bit extra each month.

Others will be along shortly with more ideas.

Lastly, you have taken the right step to becoming debt-free. Please just remember it's a slow process and will take some compromise with your spending and you will need to make cutbacks. Good luck!

vandanfc

Hi

There is only 1 income shown is this correct ? Other figures seem low, so are these your half only ? Some figures seem high if only your half. ie mobile, groceries.

Can you explain a little more please.

GeorgeUK

Only one income? Does OH get any benefits or income?

Mortgage................................ 320
Interest Only or repayment?

Council tax............................. 35
Actually seems quite low (or is this your half)

Electricity............................. 30
Gas..................................... 30
(Again, is this your half?) If so you may want to check the meter readings with the companies to see if you are in credit and check the comparison sites to see if you can get a better deal elsewhere.

Mobile phone............................ 60
PAYG? Can you get a cheaper tariff?

Telephone (land line)................... 8
Satellite/Cable TV...................... 14
Internet Services....................... 0
Is this a package deal?

Groceries etc. ......................... 260
Might be able to reduce a little. Take a look at the old style board for mealplan ideas.

Petrol/diesel........................... 200
Do you need the car? Is there cheaper public transport available in your area?

Car Insurance........................... 38
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 15
Again, check the comparison sites (uswitch, moneysupermarket) for a better deal. Also try usin a cashback site like quidco when switching.

Presents (birthday, christmas etc)...... 0
??? I though it was us Scots that were meant to be cheap

IrishJohn_2

Thanks for the replies, i should explain. Iam currently living with my ex partner in a house we bought. So all items such as insurance/mortgage/council tax etc are my half.

Mortgage is interest only at the moment too whilst we work out what we are doing.

I have a contract with my mobile phone, ive called them and they are able to reduce it to 45 a month - so thats a start.

Car wise - i need it to work. No way out. I hate the thing and wish i could cycle everywhere but hey, work pays the bills (well sort of)

Grocery wise, yeah, thats a big one. I worked that out on the back of the past 2 months and the money i have spent on food - in work/garages/everywhere!

Before anybody asks -NO! Living with ex partner aint good.
:mad:

muskoka

More & more people are taking a packed lunch to work. Save you a mint.
Make up the menu for the week & shop accordingly - if its not on the list, dont buy it.
DON'T go shopping when your hungry - You'll buy more than you need

savingmummy

IrishJohn wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1421
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1421

Monthly Expense Details
Mortgage................................ 320
Secured/HP loan repayments.............. 15.39
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 35
Electricity............................. 30 these are high for 1/2 try finding cheaper for gas/elec
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 8
Mobile phone............................ 45 well done getting it down! keep haggling though or try getting it cancelled.
TV Licence.............................. 15
Satellite/Cable TV...................... 14
Internet Services....................... 0
Groceries etc. ......................... 260:eek: i spend 200 on a good month for 4!
Clothing................................ 20 use what you have for now
Petrol/diesel........................... 200 are you only using this for work?
Road tax................................ 10
Car Insurance........................... 38
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 15
Total monthly expenses.................. 1190.4


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 114000...(320)......6.3
Hire Purchase (HP) debt ...... 300......(15.4).....0
Total secured & HP debts...... 114300....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC Loan......................5500......144.......0
HSBC Credit Card...............700.......40........0
EGG............................3500......77........0
Barclaycard....................4700......104.......0
Total unsecured debts..........14400.....365.......-


Monthly Budget Summary
Total monthly income.................... 1,421
Expenses (including HP & secured debts). 1,190.4
Available for debt repayments........... 230.6
Monthly UNsecured debt repayments....... 365
Amount short for making debt repayments. -134.4

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -114,300
Total Unsecured debt.................... -14,400
Net Assets.............................. -128,200

I see you are living with your ex and paying mortgage what is happening with this?? selling? remaining living together as friends?

IrishJohn_2

The break up is still fresh so things are up in the air. Ideally I'd like to sell and move our own ways. I want to teach English in japan!! So the house needs to be resolved by then.

I spend a lot on food. This needs to stop and decrease, simple as. My main issue is buying stuff that I don't get around to eating then wasting it, inexcusable. Having said that, last Sunday I spent 27 quid and I shopped again today. That's more like it.

My main issue/worry is that the debts are with credit cards and will not budge! An Iva appeals to me because the debts will have a light at the end of the tunnel. For my piece of mind that may be my solution. What do you think? Is an IVA the thing to give me a clean slate to start again or a red herring?

foxgloves

It's a difficult one. The good thing is that you do have a vision for what you want to do....is selling the house likely to raise any money you could throw at the debts? Hold in your mind the wish to go & teach English in Japan so that you have a goal. With that goal in mind, pare your spending down to only absolute essentials. It might not be what we want to do but it can be done because there are people on here doing it. Buy only what you absolutely HAVE to have. It won't be for ever. It's just to get you out of a hole now. Groceries & household expenses can be shaved down if you plan what you are going to eat & shop accordingly. Look at the Old-style board for ideas. For instance, for one person, you can get several nutritious meals plus some sandwiches out of a roast chicken. You can get a monthly Mobile tariff from Orange for £15 which has 100 minutes & unlimited texts. I know because I've got one and they gave me a very nice free phone with it too, so £45 is still too high for someone with debts to clear. Don't buy any clothes unless it's absolutely essential (i.e pants falling to bits!! Not 'another pair of jeans would come in useful' sort of thing) I know from experience that the more you throw yourself into totally thrifty living, the quicker you will see these debts come down.....and you also start to get a very clear understanding of how they built up, which will make you less likely to find yourself in this position again.

Tixy

Hi John

Regarding an IVA - From the info you have posted I'm not sure an IVA is the right way to go. You are showing a shortfall of £134 per month. But if your creditors saw the above SOA they would say you could afford your minimum repayments, therefore there is no benefit for them in agreeing to an IVA. Also have a read of this guide regarding IVAs - http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

You've already save £15 on your mobile which is good, but as soon as you are out of contract you should be able to reduce this to closer to £25 per month.

Your groceries, as you know, need serious work. £120 should be more than enough for 1 person for a month (plenty manage on £80 but no point setting yourself a target that you will struggle with).

So with just the exisiting mobile reduction and sorting the groceries out you are already in a position to have a surplus not a shortfall each month.

As others have said your elec looks really high at £60pm for 2 of you, and gas is also quite high. Dig out your last bills for your usage and then look at finding a cheaper supplier. Also try to reduce your usage at the same time.

What is the value of your house? Is the £114k mortgage the whole mortgage or your 50% share? Will you have equity if/when you sell?

Rather than an IVA I would recommend you resolve the house issue and then work on throwing all your spare money towards your unsecured debts. What are the APRs on all these debts? You need to look these out to work out the best order to repay them.
Once you have managed to reduce them a bit you may be in a position to get some 0% balance transfer deals, or if there is equity in the house if you come to sell it you could use that to clear chunks off your debts.

Good luck

RAS

John

if you do an IVA he have to be sure that there is going to be no major variation in your income over the next 5 years.

How does that fit with Japan?

have you considered a DMP?