newbies to forum thinking of selling home to pay off debts!

[Deleted User]

Millie321 wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2 can you afford 2 cars?
Monthly Income Details
Monthly income after tax................ 500
Partners monthly income after tax....... 1016
Benefits................................ 0
Other income............................ 597
Total monthly income.................... 2113
Monthly Expense Details
Mortgage................................ 555 is this repayment,if so would lender agree to interest only for a period?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 160
Electricity............................. 40can you better this?even your existing supplier may have a lower online tariff?
Gas..................................... 57ditto
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 11
Mobile phone............................ 26
TV Licence.............................. 14
Satellite/Cable TV...................... 20is this essential?
Internet Services....................... 20
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 220this is high,see above re one car
Road tax................................ 25ditto

Car Insurance........................... 60ditto
Car maintenance (including MOT)......... 20ditto
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 39seems high?
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 20for?
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0never?
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50this is the emergency
Total monthly expenses.................. 1809

Assets
Cash.................................... 0
House value (Gross)..................... 215000
Shares and bonds........................ 0
Car(s).................................. 7000sell one?
Other assets............................ 0
Total Assets............................ 222000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 100000...(555)......0
Total secured & HP debts...... 100000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2725......82........14.9
Virgin.........................9424......283.......0
Virgin.........................3847......116.......0
Loan...........................6800......400.......5.7
First Direct ..................8958......265.......18.9
Halifax........................6173......186.......20.9
Total unsecured debts..........37927.....1332......-

Monthly Budget Summary
Total monthly income.................... 2,113
Expenses (including HP & secured debts). 1,809
Available for debt repayments........... 304
Monthly UNsecured debt repayments....... 1,332
Amount short for making debt repayments. -1,028
Personal Balance Sheet Summary
Total assets (things you own)........... 222,000
Total HP & Secured debt................. -100,000
Total Unsecured debt.................... -37,927
Net Assets.............................. 84,073

hope that helps

Millie321

Thanks woodbine, I have explained in previous posts some of those reasons.

Friend cuts my hair. cars are both required.

I know this is emergency but it kind of covers all eventualities, if that pot builds up i will take chunks out on the debts with it anyway.

I'm going to ring my old employer first thing mon and get my mat pay paid to me - can't believe i didn't think to do so before. I'm certain i can do this so long as i commit to returning, and this way i wouldn't need to return for 9mths, by which time if we cross all of our fingers we may have managed to move house and paid off debts.

Now my only concern is that we can get a mortgage considering the amount of debt we have. I shall go investigate that board you directed me to washer.

Thank you all! i shall report back xxxxxxxxxxxxxxxxxxx

miss_missy

hi
millie and well done for posting i have just a few comments 1000k is a big short fall and would require very big reductions in spending

on the credit cards how much available credit for shuffle around to get lower interest do you have any cards with nothing on???

also have you thought about what you are going to do if your house doesnt sell?? i dont want upset you but you really do need to think about this

i know you say you need 2 cars but could you sell one and buy a cheaper older one??

also im not sure about this as i dont have virgin but i thought virgin cc had quite a very low min payment yet you say in your soa
Virgin.........................9424......283...... .0
Virgin.........................3847......116...... .0
are you incurring charges on these????
also halifax is that a cc and if so why such a high min payment? this shouldnt be this high unless your incurring charges?

WASHER

Millie, another thought, Is first Direct your bank current account? Have they mentioned you repaying the overdraft? Did you know they can recall the overdraft at any time, and if you pay salaries into the First Direct account they are perfectly within their rights to offset that against the OD without informing you.

My advice is you need a seperate bank account, do not get one with anyone you have debts with and bear in mind most banks are linked to another, e.g first direct to HSBC, halifax to BOS etc etc.

miss_missy

have to agree with washer move bank accounts now
maybe try natwest you are probably best going for one of there basic accounts

WASHER

http://www.moneysavingexpert.com/banking/setting-off

This is an article from Martin Lewis explaining the "setting off". Banks can and will take your salaries in order to repay your debts, the debt is their priority. First Direct are excellent to customers who have a good banking record, but they can get sh!tty if you do not start to repay the overdraft.

Millie321

miss missy thanks for pointing those out, i'm not sure how've i've done that but you are right the virgin min payments are £25 each!

halifax is a cc and right again min payment is 60something pound. Not sure how i managed such fatal errors!

We have already applied for a new bankd account.

We have spoken to First Direct and so long as we keep in touch and below our overdraft limit (which we've managed) then we're ok. Of course once new account open we will move income into that one.

Thank you!

miss_missy

hi millie
thought theses didnt sound right if these are the payments youve been making at least your trying to pay your debt off but you cant afford to pay that much at the moment

redo your soa with the min payments for all your credit cards i would check your halifax again as although halifax can be 1% min payment it wouldnt cover your interest at 20.9% and on my statement for halifax it states 1% or interests plus charges plus £5

check all credit cards to make sure the others are correct
i have said put min payments to see if you have any money left and then we will be able to advise you what to do with the money you have spare

then also give credit limits so we can look to see if there is any room for shuffling debt around and getting better deals include any cards that have nothing on them if you have any

miss_missy

well done on the new bank account
also which bank account have you applied for make sure its not connected to who you owe this is even more important if you decide to try a dmp

Tixy

That is good news, well done missy for spotting it
So it looks like your minimum payments are actually £475 less than you have shown. This seems like it gives you a real chance of protecting your credit score for a few months if you decide to go down the route of selling your house. Especially if you could get a payment holiday on the loan, you'd only be looking at at fairly small shortfall.

Don't understand the maternity / saying you'll go back to work sooner either but hope that is something that helps as well.

Good luck whatever you decide