New to this and need help help help!

bumblebee1

Hi All,

Any advice/help/guidance would be hugely appreciated. Over the last few years I've managed to rack up about 30k worth of credit card and loan debt. I have a job and reasonable income, but find myself unable to make any dents in my monthly repayments. I have equity in a flat I own, but currently owe Managing Agents well over £2000. I'm due to re-mortgage in 3 months time but won't be able to access any of that equity until I pay off the Managing Agent debt. I tried to extend one of my loans last autumn but was turned down because my current account is always overdrawn. I've also tried speaking to my bank, but they've been useless. I'm sure there's a solution to all this, but I feel stuck at the moment and I'm not quite sure where to begin. If anybody could point me in the right direction I'd be grateful. Thanks in advance...

Tixy

HI Bumblebee and welcome

I would suggest the first thing is to complete a monthly statement of affairs (http://www.makesenseofcards.com/soacalc.html) so you can see the full picture in black and white, how much yourowe and how far short you are of making your repayments each month.

If you then also post the results on here people will be able to advise on possible ways forward for you.

Good luck

bumblebee1

Many thanks...here's a breakdown...any more advice gratefully received!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 3800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3800
Monthly Expense Details
Mortgage................................ 660
Secured/HP loan repayments.............. 475
Rent.................................... 0
Management charge (leasehold property).. 145
Council tax............................. 100
Electricity............................. 20
Gas..................................... 25
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 30
Mobile phone............................ 30
TV Licence.............................. 10
Satellite/Cable TV...................... 20
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 100
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 35
Entertainment........................... 250
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2675

Assets
Cash.................................... 0
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 285000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 129000...(660)......6.1
Secured Debt.................. 13000....(475)......9
Total secured & HP debts...... 142000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................7200......175.......30
credit card....................6100......140.......29
credit card....................1500......35........25
credit card....................700.......30........20
credit card....................1500......35........25
Total unsecured debts..........17000.....415.......-

Monthly Budget Summary
Total monthly income.................... 3,800
Expenses (including HP & secured debts). 2,675
Available for debt repayments........... 1,125
Monthly UNsecured debt repayments....... 415
Amount left after debt repayments....... 710
Personal Balance Sheet Summary
Total assets (things you own)........... 285,000
Total HP & Secured debt................. -142,000
Total Unsecured debt.................... -17,000
Net Assets.............................. 126,000

elsie52

£500 for groceries for 1.......eeek.:eek::eek::eek: Think I had better get my specs on before I read any more.

elsie52

bumblebee1 wrote: »

Many thanks...here's a breakdown...any more advice gratefully received!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 3800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3800
Monthly Expense Details
Mortgage................................ 660
Secured/HP loan repayments.............. 475
Rent.................................... 0
Management charge (leasehold property).. 145
Council tax............................. 100
Electricity............................. 20
Gas..................................... 25
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 30
Mobile phone............................ 30
TV Licence.............................. 10
Satellite/Cable TV...................... 20
Internet Services....................... 0
Groceries etc. ......................... 500 That is way too much.even if you spent £200, you would be eating extemely well..
Clothing................................ 100 reduce by half
Petrol/diesel........................... 40
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 35
Entertainment........................... 250knock this down to half
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2675

Assets
Cash.................................... 0
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 285000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 129000...(660)......6.1
Secured Debt.................. 13000....(475)......9
Total secured & HP debts...... 142000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................7200......175.......30
credit card....................6100......140.......29
credit card....................1500......35........25
credit card....................700.......30........20
credit card....................1500......35........25
Total unsecured debts..........17000.....415.......-

Monthly Budget Summary
Total monthly income.................... 3,800
Expenses (including HP & secured debts). 2,675
Available for debt repayments........... 1,125
Monthly UNsecured debt repayments....... 415
Amount left after debt repayments....... 710
Personal Balance Sheet Summary
Total assets (things you own)........... 285,000
Total HP & Secured debt................. -142,000
Total Unsecured debt.................... -17,000
Net Assets.............................. 126,000

Just by doing those three things, you would be £475 better off, which would go towards your debts. Have a look at the Money Saving Old style boards. Do you cook from scratch?

elsie52

Please don't think I am being tough on you, but we earn far less than you, and we have paid off £40k in the last 2 years, we still have £34k to go. We don't have a lavish lifestyle, but we do eat well, and live our lives with various hobbies and the occasional holiday.

Tixy

Well done for posting it.

bumblebee1 wrote: »

Many thanks...here's a breakdown...any more advice gratefully received!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 3800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3800
Monthly Expense Details
Mortgage................................ 660
Secured/HP loan repayments.............. 475
Rent.................................... 0
Management charge (leasehold property).. 145
Council tax............................. 100 do you get the single persons discount?
Electricity............................. 20
Gas..................................... 25
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 30
Mobile phone............................ 30
TV Licence.............................. 10
Satellite/Cable TV...................... 20
Internet Services....................... 0
Groceries etc. ......................... 500 are you really spending this? what sort of things do you eat? seriously this is a large amount, even takeaways every night would barely add up to this amount. Most on here aim for £100 or less per person, but if you start by aiming for £200 you'd still be making a huge saving.
Clothing................................ 100 cut down until your arrears are paid off?
Petrol/diesel........................... 40
Road tax................................ 0 do you have a car? you have petrol. If you have a car you need to budget for all the costs (1/12 each month of the annual cost)
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120 what is this for?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 35
Entertainment........................... 250 this is a lot whilst your have arrears
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2675

Assets
Cash.................................... 0
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 285000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 129000...(660)......6.1
Secured Debt.................. 13000....(475)......9
Total secured & HP debts...... 142000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................7200......175.......30
credit card....................6100......140.......29
credit card....................1500......35........25
credit card....................700.......30........20
credit card....................1500......35........25
Total unsecured debts..........17000.....415.......-

Monthly Budget Summary
Total monthly income.................... 3,800
Expenses (including HP & secured debts). 2,675
Available for debt repayments........... 1,125
Monthly UNsecured debt repayments....... 415
Amount left after debt repayments....... 710 where is all this money going?
Personal Balance Sheet Summary
Total assets (things you own)........... 285,000
Total HP & Secured debt................. -142,000
Total Unsecured debt.................... -17,000
Net Assets.............................. 126,000

How much do you owe in arrears of your agents? You need to include it in your debts along with a repayment plan. Will they be happy if you pay over 3months? 6months?

You need to work out where the rest of your money is being spent (the £710 surplus) you are showing above - have you been overpaying on your other debts?
You do earn a good salary but if you have arrears then you are living beyond your means.

Why are you intending to remortgage? what do you want extra money for?
Do you have any other arrears for utilities etc?

I don't want to sound harsh but you really need to get in control of your money. I'd suggest you start a spending diary today where you write down every single thing you spend (even just the odd 50p - be it in cash, by card or online).

Hope this helps

EDIT - you also need to include your overdraft in your debts - put in the balance as it is the day before payday to give a true picture.

RAS

I am not going to be gentle here - your managment fee is an absolute priority, so you need to cut back massively to sort it out.

What will happen if you mortgage reverts to the SVR, in terms of payments?

bumblebee1 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 3800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3800
Monthly Expense Details
Mortgage................................ 660
Secured/HP loan repayments.............. 475 - what is this for?
Rent.................................... 0
Management charge (leasehold property).. 145
Council tax............................. 100
Electricity............................. 20
Gas..................................... 25
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 30 - you need to stop using this and reduce to rental only
Mobile phone............................ 30 - reduce this package
TV Licence.............................. 10 - should be £12
Satellite/Cable TV...................... 20 - reduce and then cancel
Internet Services....................... 0
Groceries etc. ......................... 500 - you can manage on £100 per month. Head over to the Old Style forum where they are working up a plan for a family of 4 to live on £100 per month.
Clothing................................ 100 - STOP, you can wear what is in the wardrobe for the rest of the year
Petrol/diesel........................... 40 - so why no tax, insurance, maintenance of car listed?
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30 - this is huge - get a prepayment card.
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40 - reduce this in the short-term
Haircuts................................ 35 - go somewhere cheaper for the next few months.
Entertainment........................... 250 - stop this until the management fee is paid and the cards reducing - £10 per month max.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2675

Assets
Cash.................................... 0
House value (Gross)..................... 285000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 285000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 129000...(660)......6.1
Secured Debt.................. 13000....(475)......9
Total secured & HP debts...... 142000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................7200......175.......30
credit card....................6100......140.......29
credit card....................1500......35........25
credit card....................700.......30........20 - any spare on here?
credit card....................1500......35........25
Total unsecured debts..........17000.....415.......-

Monthly Budget Summary
Total monthly income.................... 3,800
Expenses (including HP & secured debts). 2,675
Available for debt repayments........... 1,125
Monthly UNsecured debt repayments....... 415
Amount left after debt repayments....... 710
Personal Balance Sheet Summary
Total assets (things you own)........... 285,000
Total HP & Secured debt................. -142,000
Total Unsecured debt.................... -17,000
Net Assets.............................. 126,000

Your APRs tell you all you need to know - you are perceived as high risk. At that rate if you just pay the minimums, your debt will increase over the next year.

miss_missy

bumblebee1 wrote: »

Hi All,

Any advice/help/guidance would be hugely appreciated. Over the last few years I've managed to rack up about 30k worth of credit card and loan debt. I have a job and reasonable income, but find myself unable to make any dents in my monthly repayments. I have equity in a flat I own, but currently owe Managing Agents well over £2000. I'm due to re-mortgage in 3 months time but won't be able to access any of that equity until I pay off the Managing Agent debt. I tried to extend one of my loans last autumn but was turned down because my current account is always overdrawn. I've also tried speaking to my bank, but they've been useless. I'm sure there's a solution to all this, but I feel stuck at the moment and I'm not quite sure where to begin. If anybody could point me in the right direction I'd be grateful. Thanks in advance...

hi
its going to seem hard what people say on here you need to do but you need to listen even to things that sound really difficult i agree with what others say but the way out of your debt is not getting more you earn a good living you need to budget and budget hard then stick to it

1. where is the 710 you should have left each month?
2. if you have a car you need to budget more than just petrol
3. you have to cut back 500 on groceries per month is far too much for one person, you could easily cut 200 off that a month and still eat like a king
the clothing budget has to go 100 per month you must have more than enough clothes to last you at least for the rest of the year and reduce your entertainment budget by 200 until you management fees paid off

the above would get you 500 and let say you could find 500 of the missing 710 you could pay management fees off in 2 months

none of this would be easy but it will help you get back in control

how is your entertainment budget made up? what do you spend the money doing? is it just going out?

also are you planning to remortgage to pay your debt?? if so please reconsider as you can afford to pay them without remortgaging you just need to budget and stick to it

JA1000

£700 spare & potentially a lot more especially groceries. This is looking like £1000 per month spare.

Some people would give their right arm to have this debt and half this income spare.

This one will be about owning up - already done and a mind set into new budgeting. There is already plenty of help on here but I am sure more will arrive.