Sinking Fast!!!

debjan

Hi,

This is my first posting, I really need help and would be greatful for any advice you can give me. My husband left me a couple of years ago with a whole load of debt, a house that is falling apart around me and in dire need of a new central heating boiler. I have been plodding along for a while now but I need to do something to sort it out. Below is my SOA. I only have four years to go on my mortgage but the endowment policy attached to it is running £4,000 short. I am also running in arrears with my gas and electricity! I should be retiring in ten years, but can't see that happening now. The only asset I have is the house which is worth about £65,000.

Monthly income
My wage - £708
Working Tax Credit - £89.78

TOTAL - £797.78

Monthly Outgoings
Mortgage - £59.14
Council Tax - £79
Electricity - £37
Gas - £50
Telephone - £25
Mobile phone - £10
Contents Insurance - £10.63
Building Insurance - £18.16
Hair - £10
Clothes - £20
Groceries - £150
TV Licence - £12.12
Travel Expenses - £34.80
Prescriptions - £5

TOTAL - £520.85

Debts
Argos Store Card - £525 (limit £1000), minimum payment £21, APR 27.9%
BHS Store Card - £454 (limit £1000), minimum payment £18, APR 26%
B&Q Store Card - £159 (limit £1000), minimum payment £6, APR 26.8%
Littlewoods Visa - £3121 (limit £4000) minimum payment £85, APR 29.9%
Asda Mastercard - £3397 (limit £4000)minimum pay £103.34, APR 19.9%
Asda Loan - £9112 - monthly payment £182.25, length of term 60 months, 46 months to go, APR 15.9%
Gas Arrears - £230
Electricity Arrears - £150

Cannot believe the amount of debt I have, please help!!:(

Moneytroubles_2

Hiya hun, welcome to the boards and well done on facing your problem, looking at your SOA you have 276.93 left a month after bills and outgoings, do you actually have this?

Also are you paying your minimum payments at the mo?

With regards to your Gas and Electric have you spoke to your supplier regarding this? I was in a similar position and they allowed me to start paying using the top up cards and they set the payment to £50 every other week and this included the gas and electric i was using and also my arrears. xxx

brians_daughter

sorry to be so short with reply (will read soa later) but there are grants and schemes out there for heating issues ie boilers and insulation if you are on certian benefilts - i think tc are one of the qualifying ones..worth looking into. Not only will it save you cost of new boiler but will lower heating bills as well.

savingmummy

Hi and welcome
Sorry to hear you have been through a tough time.

I would suggest doing a full SOA http://www.makesenseofcards.com/soacalc.html Include ALL monthly incomings and outgoings, debts/aprs. Then hit the MSE button and then post it here!
It will be much clearer and accurate and will show a grand total!

Debts
Argos Store Card - £525 (limit £1000), minimum payment £21, APR 27.9%
BHS Store Card - £454 (limit £1000), minimum payment £18, APR 26%
B&Q Store Card - £159 (limit £1000), minimum payment £6, APR 26.8%
Littlewoods Visa - £3121 (limit £4000) minimum payment £85, APR 29.9%
Asda Mastercard - £3397 (limit £4000)minimum pay £103.34, APR 19.9%
Asda Loan - £9112 - monthly payment £182.25, length of term 60 months, 46 months to go, APR 15.9%
Gas Arrears - £230
Electricity Arrears - £150

cut up the cards!!

debjan

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.................... 0
Monthly Income Details
Monthly income after tax................ 708
Partners monthly income after tax....... 0
Benefits................................ 89.78
Other income............................ 0
Total monthly income.................... 797.78
Monthly Expense Details
Mortgage................................ 59.14
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 37
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 25
Mobile phone............................ 10
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 34.8
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 18.16
Contents insurance...................... 10.63
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 541.85

Assets
Cash.................................... 0
House value (Gross)..................... 65000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 65000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 25000....(59.14)....0
Total secured & HP debts...... 25000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
store card.....................525.......21........27.9
store card.....................454.......18........26
store card.....................159.......6.........26.8
electricity arrears............150.......0.........0
gas arrears....................230.......0.........0
loan...........................9112......182.......15.9
credit card....................3397......103.......19.9
credit card....................3121......85........29.9
Total unsecured debts..........17148.....415.......-

Monthly Budget Summary
Total monthly income.................... 797.78
Expenses (including HP & secured debts). 541.85
Available for debt repayments........... 255.93
Monthly UNsecured debt repayments....... 415
Amount short for making debt repayments. -159.07
Personal Balance Sheet Summary
Total assets (things you own)........... 65,000
Total HP & Secured debt................. -25,000
Total Unsecured debt.................... -17,148
Net Assets.............................. 22,852


Thanks for your help. The cards have been cut up since he left and I've just been covering the minimum payments with the savings I had left, but now they're gone. I have contacted the energy advisory service to see if I am entitled to any grants towards a heating system, waiting to hear back from them. Just didn't know where to start, wasn't sure if a trust deed would be for me or bankruptcy or a repayment plan!!! My head is in turmoil!

Moneytroubles_2

Thanks for posting, someone will be here soon to add comments and help you I am sure, have you considered getting a second job, or taking in a lodger to help boost your income. I used to have a foreign exchange student live with me xx

debjan

I work everyday 1 till 8.45 so struggling to find something that fits in with that plus I don't keep in good health, I have arthritis so struggling a bit with what I'm doing as it is.

debjan

Any advice, gratefully received

yorkshire-lad

hi and welcome, sorry to hear about your situation:(.
now,im no expert on these SOA's but after having a read i think there may be a few areas you could save.

do you live on your own?

£150 seems to be a lot for food, have you checked out the old style board for cheap food ideas?

if you look around, i think you maybe could get your land line a little cheaper too.

i think for the time being you could cut back on the presents, there are websites where you can get freebies etc which make ideal presents (not much but its the thought what counts)

have you contacted your energy supplier to discuss your bill. it also helps to provide upto date meter readings every month too,so the DD can be calculated better.
(i used to work for an energy supplier dealing with bills etc, and it really helps to let your supplier know if you are struggling with your bills, a pre payment meter is usually a good way to go)

im sure someone will be able to advise further, but i hope this helps a little:)

EDIT: sorry just seen that there is one in your household! doh!

Raggs_2

If you didn't mind having exchange students, would you mind having a lodger? I believe there's a tax free limit of around 4,000 each year (someone will know better than I), this extra income per month should be enough income to cover the debt repayments, and also, then enough to cover the possible loss from the endowment.

The only thing I can see as high in the SOA, is the groceries, it should be possible to reduce this (unless there's more than usual requirements).

debjan

Thanks, already looking at ways to cut my food bills, so that is going down, only shopping twice a month and my daughter buys me the basics on a daily basis. The clothes bill and the presents bill has to go for the time being, need to get back on my feet first. Thought about going for a trust deed, but scared they make me sell the house. Its all I have left