First post and would welcome some advice

timetosort_2

Hello,

Firstly a little about me after several years of moving debt around 0% cards, borrowing money on my house and generally over spending I know want to take action. It’s probably a similar story to many but I have spent the last 6 years spending more than I earn, increasing my income through various credit cards during this time. There have been a few occasions where I had a semi light bulb moment (maybe a dimmed one) but this time I’m really focussed on doing this. In June 2009 I recognised my debts and set about cutting down my spending habits by reducing nights out and spend on drink and dinner. Although changing habits I continued to spend on current account and some cards on non-essential purchases (TV, computer etc.). From early January 2010 I have been creating a plan but I would like to get some advice if possible.

I feel better about writing this down, but I feel saying that this is down to me and my over spending is only right. I choose to over spend and although easy to gain credit I should have stopped and took action sooner. So I’m going to sort this out perhaps with some support ;-)

I have been visiting the site for about a month looking at number of ways to save money and ensure I’m getting the best value out of all things financial in my life. In summary and shown below in the SOA extract I have 3 0% credit card deals coming to end in June and July 2010. Although I have some time to put the plan into action I’m concerned about my credit rating. In general I have always had a good one but after opting out of my company car scheme in September 2010 I took on car on PCP, I feel this may have damaged my credit rating (34k unsecured). This afternoon I applied for an MBNA LOB card, I was refused! The first time this has happened so I would like to share my options.

The credit card debt totals £11,208.41 and the 0% deals end 1st June, 3rd June and 17th July 2010, have £557 over drawn on one account also.
The options I see having are;

· Consolidate debt into loan of around 10K over 5 years, paying back £150 - £200 a month – Seems the easy way out, but reading on here I think it should not be the first option, I would also need to be approved for one
· Look at a lifetime balance transfer deal, not MBNA – getting 10K limit would probably be difficult
· Several 0% deals again, this does mean having lots of credit card and relies on getting approved. Although potentially cheaper history tells me that this is a bad option for me given my inability to payback more than the minimum (my fault)

I have looked at my monthly spending and there are some areas which I could reduce;
· Mobile phone
· Internet / TV – high but work do pay £25.00 towards it and I justify it by not buying CD/DVDs (I stream them legally)
· House insurance – been paying £30.00 a month, renewal is September though
· Car insurance – my first year of having insurance (company car driver previous ) so should come down around September time (30 and should be entitled to 5 years no claims)

So in summary I feel that my cash flow is ok and I have been making changing day to day but I’m unsure of what to do with the debt around May/June. Concerning is the rejection this afternoon form MBNA and I’m weary of applying elsewhere and harming my score.

I’m setup with creditexpert, score was 667 around December 2009, so not the best score.

Thanks for any thoughts, any reading a number of your posts on here is real eye opener about dealing with things. I know my situation is not the worse or best, but I’m going to deal with it.
Thank you.

Here’s the SOA



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.................... 1

Monthly Income Details
Monthly income after tax................ 2105.78
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2105.78

Monthly Expense Details
Mortgage................................ 389
Secured/HP loan repayments.............. 61.90999999999997
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 81
Electricity............................. 39
Gas..................................... 39
Oil..................................... 0
Water rates............................. 25.98
Telephone (land line)................... 19.41
Mobile phone............................ 30
TV Licence.............................. 12.2
Satellite/Cable TV...................... 19.41
Internet Services....................... 19.41
Groceries etc. ......................... 50
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 70.78
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15.23
Contents insurance...................... 15.23
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 897.56


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 120000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 89000....(389)......1.4
Secured Debt.................. 13500....(61.91)....1.49
Total secured & HP debts...... 102500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin.........................3843.2....25........0
Halifax........................4342.35...44.75.....0
Santender......................3117.86...71.77.....0
Car............................34000.....483.4.....7.99
Total unsecured debts..........45303.41..624.92....-


Monthly Budget Summary
Total monthly income.................... 2,105.78
Expenses (including HP & secured debts). 897.56
Available for debt repayments........... 1,208.22
Monthly UNsecured debt repayments....... 624.92
Amount left after debt repayments....... 583.3

Personal Balance Sheet Summary
Total assets (things you own)........... 120,000
Total HP & Secured debt................. -102,500
Total Unsecured debt.................... -45,303.41
Net Assets.............................. -27,803.41

Shoe_Gal

timetosort wrote: »

Hello,

Here’s the SOA



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.................... 1

Monthly Income Details
Monthly income after tax................ 2105.78
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2105.78

Monthly Expense Details
Mortgage................................ 389
Secured/HP loan repayments.............. 61.90999999999997
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 81
Electricity............................. 39
Gas..................................... 39
Oil..................................... 0
Water rates............................. 25.98
Telephone (land line)................... 19.41
Mobile phone............................ 30
TV Licence.............................. 12.2
Satellite/Cable TV...................... 19.41
Internet Services....................... 19.41
Groceries etc. ......................... 50 - good if this is correct - sure there are no top up shops/work lunches etc?
Clothing................................ 10
Petrol/diesel........................... 0 -do company pay all of this - no contribution for private mileage?
Road tax................................ 0 do company still pay this? If not you will need to budget
Car Insurance........................... 70.78
Car maintenance (including MOT)......... 0 do company still py this? If not you will need to budget
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15.23
Contents insurance...................... 15.23
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - never?
Haircuts................................ 0 - never?
Entertainment........................... 0 - you need a least something here
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 897.56


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 120000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 89000....(389)......1.4
Secured Debt.................. 13500....(61.91)....1.49
Total secured & HP debts...... 102500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin.........................3843.2....25........0
Halifax........................4342.35...44.75.....0
Santender......................3117.86...71.77.....0
Car............................34000.....483.4.....7.99
Total unsecured debts..........45303.41..624.92....-


Monthly Budget Summary
Total monthly income.................... 2,105.78
Expenses (including HP & secured debts). 897.56
Available for debt repayments........... 1,208.22
Monthly UNsecured debt repayments....... 624.92
Amount left after debt repayments....... 583.3

Personal Balance Sheet Summary
Total assets (things you own)........... 120,000
Total HP & Secured debt................. -102,500
Total Unsecured debt.................... -45,303.41
Net Assets.............................. -27,803.41

Hi

I guess you do not £583 spare each month? Some comments in red as to where it might be going

Good luck - this is doable

timetosort_2

Hi,

Updated.....

I get 15p a mile back from Company for fuel, this is usually more than I put in on a HSBC credit card used for expenses only
Car tax / Maitenance will be required - Well be getting money back on P87 from HMRC going to bank this for car maitain
Groceries - updated to £70... Have cut down loads and eat at mums some nights!
Hair cut - yes £10 added although less (this covers other like deodarant / etc.)

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.................... 1

Monthly Income Details
Monthly income after tax................ 2105.78
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2105.78

Monthly Expense Details
Mortgage................................ 389
Secured/HP loan repayments.............. 61.90999999999997
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 81
Electricity............................. 39
Gas..................................... 39
Oil..................................... 0
Water rates............................. 25.98
Telephone (land line)................... 19.41
Mobile phone............................ 30
TV Licence.............................. 12.2
Satellite/Cable TV...................... 19.41
Internet Services....................... 19.41
Groceries etc. ......................... 70
Clothing................................ 10
Petrol/diesel........................... 10
Road tax................................ 10
Car Insurance........................... 70.78
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15.23
Contents insurance...................... 15.23
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1027.56


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 120000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 89000....(389)......1.4
Secured Debt.................. 13500....(61.91)....1.49
Total secured & HP debts...... 102500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin.........................3843.2....25........0
Halifax........................4342.35...44.75.....0
Santender......................3117.86...71.77.....0
Car............................34000.....483.4.....7.99
Total unsecured debts..........45303.41..624.92....-


Monthly Budget Summary
Total monthly income.................... 2,105.78
Expenses (including HP & secured debts). 1,027.56
Available for debt repayments........... 1,078.22
Monthly UNsecured debt repayments....... 624.92
Amount left after debt repayments....... 453.3

Personal Balance Sheet Summary
Total assets (things you own)........... 120,000
Total HP & Secured debt................. -102,500
Total Unsecured debt.................... -45,303.41
Net Assets.............................. -27,803.41


Reproduced on Moneysavingexpert with permission, using Firefox browser.[/i]

GeorgeUK

Mortgage................................ 389
Interest only or repayment?

Council tax............................. 81
Is this being paid over 12 months or 10?

Electricity............................. 39
Gas..................................... 39
This is not bad. You can check the emter readings with the companies t osee if you are in credit and reclaim that money. Check the comparison sites for a better deal (uswitch, moneysupermarket)

Mobile phone............................ 30
PAYG?

Telephone (land line)................... 19.41
Satellite/Cable TV...................... 19.41
Internet Services....................... 19.41
Is this a package deal?

Buildings insurance..................... 15.23
Contents insurance...................... 15.23
Again, i would check the comparison site to see if you are getting the best deal.

Emergency fund.......................... 0
Need something here.

If you don't have £450 left at the end of the month, it would be a good idea to keep a spending diary - then you can see where the extra money is going - lunches/coffe at work etc

Can you tell us the APR's as well as the credit limits for the cards? You may be able to get a balance transfer deal with an existing card that won't require a credit check. It's usually better to have a nil balance on one of the cards, but if that's not possible right now, you may be able to shuffle the funds so you are paying less interest.

miss_missy

hi
well done on doing your soa and you have 580 surplus thats a good amount

now first thing can you post more details of all debt credit limits when 0% finish apr, do you have any cc your not using?

as for your spending it is pretty good altho gas and elec look into trying to reducing these

i dont know about buying cars on pcp? do you not need to pay for any servicing? and do you not have any petrol cost? i have to say 34000 seems alot for a car but you can afford it most my partner and i have ever paid is £10000 and i thought that was alot (i am not a car person they get me from a-b)

one thing to do is check you are sure you have included everthing in your soa you have nothing for presents/christmas, haircuts, medical, entertainment, holiday im not saying you should but just make sure you are not missing things

last thing you have at present got enough to be able to put at least £25 per month away incase of emergencies, then if boiler breaks down or you have a repair your not reaching for the credit card

miss_missy

oh lots of things happened in the time it took me to write that reply

can i suggest you work out what expenses you will have for the car over the year and put it in your soa and start saving it so that you get used to doing this then them money you get from hmrc can go straight to paying off debts, i think its better to get used to saving for this incase what you get isnt as much as you thought

timetosort_2

Mortgage................................ 389
Interest only or repayment?
Repayment at the moment, I was going to look at other interest only options this week, but guess its better to keep paying if back.

Council tax............................. 81
Is this being paid over 12 months or 10?
Over 10, so Feb / March none I think.


Electricity............................. 39
Gas..................................... 39
This is not bad. You can check the emter readings with the companies t osee if you are in credit and reclaim that money. Check the comparison sites for a better deal (uswitch, moneysupermarket)
Have submitted new ones, will look at other options.


Mobile phone............................ 30
PAYG?
Contract, I use 600mins and unlimited texts, line rental a little cheaper but £30 includes the calls.

Telephone (land line)................... 19.41
Satellite/Cable TV...................... 19.41
Internet Services....................... 19.41
Is this a package deal?
Yes I split the costs across all of them (Virgin)

Buildings insurance..................... 15.23
Contents insurance...................... 15.23
Again, i would check the comparison site to see if you are getting the best deal.
Agree, should wait for renewal?

Emergency fund.......................... 0
Need something here.
Agree

If you don't have £450 left at the end of the month, it would be a good idea to keep a spending diary - then you can see where the extra money is going - lunches/coffe at work etc

Can you tell us the APR's as well as the credit limits for the cards? You may be able to get a balance transfer deal with an existing card that won't require a credit check. It's usually better to have a nil balance on one of the cards, but if that's not possible right now, you may be able to shuffle the funds so you are paying less interest.

APRS –
Santender – 15.9% - Just checked my state and the 0% ends in October not July (that will be a help!)
Virgin – 16.6% (I think can’t see it on the statement) – ends June 2010
Halifax – 21.95% - June 3rd.

Miss_Missy – yes I need to budget costs for the car in all areas.

Thanks,

Dave

timetosort_2

Changed the gas and electric to Scottish Power... that should save some money.
Counted up the change from my money box, aiming to avoid taking any money out prior to pay day at the end of this week.

niccatw

Hey timetosort... definitely recommend trying to keep a spending diary. I have to say I find keeping mine hard work and a bit tedious... but half that is the fear of what it tells me!!!! I discovered that for the less concrete things on my SOA (groceries, entertainment, presents etc) I had put what I wanted to be spending, not what I actually was spending. Keeping a spending diary helps sort out a realistic budget for the these things - and makes me more aware of whether things are luxuries or a necessary part of keeping me sane and on track to get rid of mt debt

The other comments seem sensible and it definitely will be doable if you can be strict with your payments for a relatively short period of time.