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My SOA - bitter reading......

Well, I finally did it and I feel sick, I have stupid debts that have built up over the last few years, mostly in the last 3 years as we had a failing business that we eventually got rid of last year. All our stock, lease etc seemed to be going on credit. When we finally got rid of it we were left with all these debts and nothing to show for all the hard work.

I am pleased to say though that apart from the Halifax we are up to date with all the loans, credit cards etc. But we live like hermits, we don't go out, we stay in watch TV, walk the dog (who is keeping us sane).

I really don't want to go on a DMP but it looks like the Halifax may force us into one - please see my other thread on this!!!

I want to pay these debts off as soon as possible but I know it will take quite a few years.

Any help would be really appreciated, I know we both have good incomes so please dont judge us on this we are in a real mess.:(


Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2560
Partners monthly income after tax....... 1052
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3612
Monthly Expense Details
Mortgage................................ 933
Secured/HP loan repayments.............. 29 - This is a TV loan, 3 years left to run
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 134
Electricity............................. 56
Gas..................................... 32
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 13 - This is my wifes, I have a company one
TV Licence.............................. 12
Satellite/Cable TV...................... 30 - This is being cancelled
Internet Services....................... 20 - This includes my phone line and has free local and international calls
Groceries etc. ......................... 200 - we spend about £50 a week
Clothing................................ 10 - We don't really buy clothes we are making do with what we have
Petrol/diesel........................... 100 - this is my wifes spend per month to get to work, we use mine all other times - company car - fuel is paid for (I do get taxed though)
Road tax................................ 20
Car Insurance........................... 23
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 18
Buildings insurance..................... 5
Contents insurance...................... 24
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1742

Assets
Cash.................................... 200
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 205200

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 174000...(933)......3.5
Hire Purchase (HP) debt ...... 600......(29).......39.9
Total secured & HP debts...... 174600....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard....................3900......83........24.5
halifax........................14400.....270.......25
hsbc...........................8000......199.......21.5
natwest loan...................16500.....165.......7.9
halifax loan...................4999......323.4.....11.9
nat west.......................3414......76........24.9
barclaycard....................3970......89........25
egg card.......................7650......186.......19.9
BARCLAYCARD....................7450......142.......21.6
MBNA...........................1823......45........34.9
virgin.........................7870......186.......27.9
barclaycard....................2321......83........29.9
Total unsecured debts..........82297.....1847.4....-

Monthly Budget Summary
Total monthly income.................... 3,612
Expenses (including HP & secured debts). 1,742
Available for debt repayments........... 1,870
Monthly UNsecured debt repayments....... 1,847.4
Amount left after debt repayments....... 22.6
Personal Balance Sheet Summary
Total assets (things you own)........... 205,200
Total HP & Secured debt................. -174,600
Total Unsecured debt.................... -82,297
Net Assets.............................. -51,697
Debts as of June 2012 - £68,986.35
Now £27,470.20 :T
57% of debts cleared:beer:
«13456789

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    edited 15 February 2010 at 2:11PM
    Hi bert

    Your statement of affairs seems to show you can just meet all your monthly minimum repayments? Is that correct? If so then there should be no need to go on a DMP. If you can't then you need to try to identify where else you are spending money.

    Having a quick read through your expenses
    Elec £56 - seems high - are you repaying arrears? have you checked you are with the cheapest supplier on the best tariff for your usage? Are you high users of elec and have you tried to reduce?

    Is water unmeasured and have you looked to see if you would make a saving by having a meter (usually metered cost is around £10-12 per person for average use)

    Petrol - does your wife use her fuel efficently? and always makes sure she buys the cheapest around? - this article suggests ways to reduce that cost - some are easy to do, some a little extreme - http://www.moneysavingexpert.com/travel/cheaper-fuel

    Is £120 per year enough for 2 cars for MOT, servicing, tyres etc?

    Groceries - could maybe be reduced a little by careful meal planning, buying cheaper brands etc, learning to bulk out meals with cheaper ingredients (even a £20 saving a month will make a big difference to your debt free date).

    It certainly will take you a long time to pay off these debts. Are either of you likely to get significant payrises in the next couple of years? Have you put the figures into the snowball calculator to work out a debt free date at the current rate of repayment? (its on the same site as the SoA calc). You can also use the same calculator to see what a difference paying an extra £10 each month will make to your overall interest you will pay and the debt free date.

    Do you have any items you could sell to raise cash to pay some chunks off your debts?

    Have you worked out the order you are going to tackle your debts (MBNA is most expensive so is the one to try to clear first).

    Good luck

    EDIT just seen your halifax thread - whilst I think they have treated you badly and you don't deserve a default as you had arranged the lower repayments with them, in reality I think you would be highly unlikely to get 0% bt deals based on your current salaries and debts so don't think it will have had all that much impact on that side of things. I'd still argue to try to get it removed though!
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Firstly, don't fear being judged. Everyone here is in a similar position or has been in the past so no-one has the moral high ground here. If they do, they are probably trolls and just need to be reported and ignored.

    Secondly, I can't see much you can cut down on but other more experienced people will be along at some point to try and help you out.

    Stay positive!
    Became Mrs Scotland 16.01.16 :heart:Became homeowners 26.02.16 :heart:Baby girl arrived 27.10.16 :heart:Baby boy arrived 16.09.2018
  • RAS
    RAS Posts: 36,077 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    H

    Can you list the limits on those credit cards and when the loans finish?
    If you've have not made a mistake, you've made nothing
  • bertman
    bertman Posts: 275 Forumite
    I have put the limits on the cards and the dates the loans finish.
    We are pretty much at the limit with all the cards, some companies have reduced the limits to just what we owe.

    barclaycard....................3900......83....... .24.5 - limit £4000
    halifax........................14400.....270...... .25 - Limit £13500
    hsbc...........................8000......199...... .21.5Limit £8500
    natwest loan...................16500.....165.......7.9 - 6 years to run
    halifax loan...................4999......323.4.....11.9 Finishes April 2011
    nat west.......................3414......76........24. 9 Limit £4000
    barclaycard....................3970......89....... .25 Limit £4000
    egg card.......................7650......186.......19. 9 Limit £8000
    BARCLAYCARD....................7450......142...... .21.6 Limit £7500
    MBNA...........................1823......45....... .34.9 Limit £2000
    virgin.........................7870......186...... .27.9 Limit £8000
    barclaycard....................2321......83....... .29.9 Limit £3500
    Total unsecured debts..........82297.....1847.4....-

    Tixy - the £120 a year is what we paid out last year for repairs etc. I tend to do oil fills etc myself, my own car is a company one so everything paid for. We get an email sent that lists where the cheapest petrol is and use that but apart from going back and to work that is all we use her car for. I am on holiday today and tomorrow so she will use my car for two days so saving fuel.
    Debts as of June 2012 - £68,986.35
    Now £27,470.20 :T
    57% of debts cleared:beer:
  • elfen
    elfen Posts: 10,213 Forumite
    You could knock a little more off the food if you batch cooked between you at the weekend (basically make double or more of what you need and freeze it)

    Apart from that I can't see anything.
    ** Total debt: £6950.82 ± May NSDs 1/10 **
    ** Fat Bum Shrinking: -7/56lbs **
    **SPC 2012 #1498 -£152 and 1499 ***
    I do it all because I'm scared.
  • You have really cut down hugely - well done!

    Have you called all the credit card providers and asked for a reduced rate? Sometimes it works, sometimes not..... if they know you are in financial difficulties, if you tell them you might have to go on a DMP they will know they will be asked to freeze interest. If you explain that just dropping the rates for a year would help you to avoid that, they might be more willing to help.

    If you can throw all the spare money at the MBNA debt, even consider moving some of it on a low-life of balance transfer to any card you have space on. Then, call MBNA and ask for a low-life-of-balance deal.... and start moving the money onto lower rates.

    It doesn't make more money, but it'll make better use of what you have to make repayments.
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • Hi

    Well done for posting - no one is going to judge...

    Start a spending diary - if you can't meet your repayments as above then the extra cash is going somewhere.

    Electric is a bit high - can you reduce useage/shop round for better deal?

    Groceries - there are two of us (and a cat) and we spend on average £170-£200 per month and we eat really well - I know that we could eat cheaper if I put my mind to it/had to, so should be some savings to be amde here.

    Cancelling Cable TV - good saving here - remember to add it to your debt repayments

    Pet insurance - only a small thing, but a saving could be made here (depending on your dogs' state of health/age - worth shopping around.

    If you could save £10 on the elec, £20 on groceries and £30 on Cable TV that £60 to add to your surplus of £22 = Total £82 extra per month to throw at your debts.

    Have you got anything you could car boot, ebay or amazon? your smallest debt is that high APR TV Loan - if you could get rid of that another £29 could go towards the other debts.

    Good Luck.
    Mortgage Free x 1 03.11.2012 - House rented out Feb 2016
    Mortgage No 2: £82, 595.61 (31.08.2019)
    OP's to Date £8500

    Renovation Fund:£511.39;
    Nectar Points Balance: approx £30 (31.08.2019)
  • bertman
    bertman Posts: 275 Forumite
    You have really cut down hugely - well done!

    Have you called all the credit card providers and asked for a reduced rate? Sometimes it works, sometimes not..... if they know you are in financial difficulties, if you tell them you might have to go on a DMP they will know they will be asked to freeze interest. If you explain that just dropping the rates for a year would help you to avoid that, they might be more willing to help.

    If you can throw all the spare money at the MBNA debt, even consider moving some of it on a low-life of balance transfer to any card you have space on. Then, call MBNA and ask for a low-life-of-balance deal.... and start moving the money onto lower rates.

    It doesn't make more money, but it'll make better use of what you have to make repayments.

    I have been on the phone to the credit card companies, Barclaycard told me that "good news, we will reduce your APR" and knocked 1% off it, still I guess every saving is good. The rest have all told me that they can't / won't for another 6 months
    Debts as of June 2012 - £68,986.35
    Now £27,470.20 :T
    57% of debts cleared:beer:
  • savingmummy
    savingmummy Posts: 2,915 Forumite
    Debt-free and Proud!
    bertman wrote: »
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 1
    Monthly Income Details
    Monthly income after tax................ 2560
    Partners monthly income after tax....... 1052
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3612
    Monthly Expense Details
    Mortgage................................ 933
    Secured/HP loan repayments.............. 29 - This is a TV loan, 3 years left to run
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 134 is this over 10 or 12 months? if 10 you can do it over 12 which helps a bit.
    Electricity............................. 56 have you shopped for cheaper elec/gas?
    Gas..................................... 32
    Oil..................................... 0
    Water rates............................. 33
    Telephone (land line)................... 0
    Mobile phone............................ 13 - This is my wifes, I have a company one
    TV Licence.............................. 12
    Satellite/Cable TV...................... 30 - This is being cancelled:T
    Internet Services....................... 20 - This includes my phone line and has free local and international calls
    Groceries etc. ......................... 200 - we spend about £50 a week we spend this for 4 on a good mth try and see if you can cut by another 50 :D
    Clothing................................ 10 - We don't really buy clothes we are making do with what we have:T
    Petrol/diesel........................... 100 - this is my wifes spend per month to get to work, we use mine all other times - company car - fuel is paid for (I do get taxed though)
    Road tax................................ 20
    Car Insurance........................... 23
    Car maintenance (including MOT)......... 10
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 18
    Buildings insurance..................... 5
    Contents insurance...................... 24
    Life assurance ......................... 20
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10 i wouldnt buy while your struggling. just do cards for now, explain if you have too we did and everyone was fine about it.
    Haircuts................................ 10
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1742

    Assets
    Cash.................................... 200
    House value (Gross)..................... 200000
    Shares and bonds........................ 0
    Car(s).................................. 5000
    Other assets............................ 0
    Total Assets............................ 205200

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 174000...(933)......3.5
    Hire Purchase (HP) debt ...... 600......(29).......39.9
    Total secured & HP debts...... 174600....-.........-
    Unsecured Debts
    Description....................Debt......Monthly...APR
    barclaycard....................3900......83........24.5
    halifax........................14400.....270.......25
    hsbc...........................8000......199.......21.5
    natwest loan...................16500.....165.......7.9
    halifax loan...................4999......323.4.....11.9
    nat west.......................3414......76........24.9
    barclaycard....................3970......89........25
    egg card.......................7650......186.......19.9
    BARCLAYCARD....................7450......142.......21.6
    MBNA...........................1823......45........34.9
    virgin.........................7870......186.......27.9
    barclaycard....................2321......83........29.9
    Total unsecured debts..........82297.....1847.4....-

    Monthly Budget Summary
    Total monthly income.................... 3,612
    Expenses (including HP & secured debts). 1,742
    Available for debt repayments........... 1,870
    Monthly UNsecured debt repayments....... 1,847.4
    Amount left after debt repayments....... 22.6
    Personal Balance Sheet Summary
    Total assets (things you own)........... 205,200
    Total HP & Secured debt................. -174,600
    Total Unsecured debt.................... -82,297
    Net Assets.............................. -51,697

    You have already made some great steps and seem really focussed.
    Good luck x
    DebtFree FEB 2010!
    Slight blip in 2013 - Debtfree Aug 2014 :j

    Savings £132/£1000.
  • Bertman I don't really want to comment on your SOA as there are lots more experienced people here to help, but I did want to say that we have entered a DMP this month and our debt is higher than yours and it hasn't been truely awful, frustrating yes but not nearly as bad as you imagine and the relief to know that we are going to get this sorted is huge. You have taken the first step, I can sympathise with nearly all that you say as we've been there got the teeshirt, but it can be done, long road etc but still doable.
    More than Two Years in

    Doing it the Niddy way:j:j:j

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