Advice needed please

smitheim

Hi Guys,
Hoping some of you may be able to offer advice, have read through threads for advice and decided best way forward is to post soa (Painful as it is) As you can see our current outgoings are larger that income, partly I must stress after oh was attacked and unable to work for some months leading to arrears etc also partly from having meals out put onto plastic to make us feel better I know some of you might disapprove but would really like to re-mortgage to clear debts and have little left over for car as ours is really needing a lot of work now and is 14 yrs old but our current lender (iNG) have refused
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 360
Partners monthly income after tax....... 1040
Benefits................................ 490
Other income............................ 0
Total monthly income.................... 1890
Monthly Expense Details
Mortgage................................ 239
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 78
Electricity............................. 100
Gas..................................... 0
Oil..................................... 52
Water rates............................. 51
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 12.5
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 94
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 16
Contents insurance...................... 15
Life assurance ......................... 8
Other insurance......................... 26
Presents (birthday, christmas etc)...... 50
Haircuts................................ 5
Entertainment........................... 80
Holiday................................. 40
Emergency fund.......................... 20
Total monthly expenses.................. 1678.5

Assets
Cash.................................... 0
House value (Gross)..................... 99000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 100000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 58000....(239)......1.39
Total secured & HP debts...... 58000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Egg Card (Me)..................3495......107.......26.9
Barclaycard ...................4100......92........6.49
Natwest........................490.......11........16.9
Choice.........................900.......88........0
Littlewoods....................800.......90........0
Tesco..........................3200......66........16.9
Egg (Oh).......................1770......50........16.9
Total unsecured debts..........14755.....504.......-

Monthly Budget Summary
Total monthly income.................... 1,890
Expenses (including HP & secured debts). 1,678.5
Available for debt repayments........... 211.5
Monthly UNsecured debt repayments....... 504
Amount short for making debt repayments. -292.5
Personal Balance Sheet Summary
Total assets (things you own)........... 100,000
Total HP & Secured debt................. -58,000
Total Unsecured debt.................... -14,755
Net Assets.............................. 27,245


Thankyou in advance x

Tixy

Hi, I know its painful but its a really good step for you to be able to see the full picture, so well done for doing it. And remember any comments people make are meant well!

You are right consolidation/remortgaging is rarely recommended and if the mortgage company has refused looks like you might not have much choice at the moment.

Okay looking at your SoA

smitheim wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 360 is this low because of looking after children? is there any scope to increase hours?
Partners monthly income after tax....... 1040
Benefits................................ 490 are you sure you are getting all you are entitled to?
Other income............................ 0
Total monthly income.................... 1890
Monthly Expense Details
Mortgage................................ 239
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 78
Electricity............................. 100 This is high - does it include arrears? how much is arrears and how much current?
Gas..................................... 0
Oil..................................... 52 is this the average over a year or only in winter?
Water rates............................. 51 is this metered or unmeasured? have you looked to see if a meter would be cheaper (it may not be though)
Telephone (land line)................... 20
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 12.5 you could look for a landline/internet combined deal (these start at £19 for both I think)
Groceries etc. ......................... 400 should be able to make some savings here, try meal planning before you shop, try Martins drop a brand challenge and look for other tips on the old style board here on MSE
Clothing................................ 50 try to keep to a minimum, only essentials whilst you have arrears etc
Petrol/diesel........................... 200 is this all essential? is it mostly commuting? do you always fill up at the cheapest places and do you drive efficently?
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 94 what are these?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 16
Contents insurance...................... 15 try shopping around for B&C, should be able to save a little based on your house value
Life assurance ......................... 8
Other insurance......................... 26 what is this? is it the best price?
Presents (birthday, christmas etc)...... 50 need to reduce while you have a shortfall (sorry)
Haircuts................................ 5
Entertainment........................... 80 need to reduce at the moment
Holiday................................. 40 and you cannot afford this if you cannot afford your debts
Emergency fund.......................... 20
Total monthly expenses.................. 1678.5

Assets
Cash.................................... 0
House value (Gross)..................... 99000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 100000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 58000....(239)......1.39
Total secured & HP debts...... 58000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Egg Card (Me)..................3495......107.......26.9
Barclaycard ...................4100......92........6.49
Natwest........................490.......11........16.9
Choice.........................900.......88........0
Littlewoods....................800.......90........0
Tesco..........................3200......66........16.9
Egg (Oh).......................1770......50........16.9
Total unsecured debts..........14755.....504.......-

Monthly Budget Summary
Total monthly income.................... 1,890
Expenses (including HP & secured debts). 1,678.5
Available for debt repayments........... 211.5
Monthly UNsecured debt repayments....... 504
Amount short for making debt repayments. -292.5
Personal Balance Sheet Summary
Total assets (things you own)........... 100,000
Total HP & Secured debt................. -58,000
Total Unsecured debt.................... -14,755
Net Assets.............................. 27,245


Thankyou in advance x

I'm sorry to be brutal with your fun items but you cannot go on with a shortfall this size. How soon could you earn more? how old are the children? Are your debts increasing by £300 odd per month? Are you still using the cards?

Its great that your mortgage rate is so low at the moment but remember base rates will rise and then your payments could increase dramatically.

niccatw

I agree with Tixy. Not much to add dreally.

You want to be throwing anything you have spare at your Egg card - that intersest rate is hideous! I'm guessing Choice and Littlewoods aren't that great either?

Do you have anything you could ebay/car boot? Try shopping in charity shops for a while (if you don't already.), or looks out for toy libraries for the kids.

aybe look into mystery shopping, daily clicks and surveys to supplement your income if working more hours really isn't feasible. It won't give you that much but it might help a little.

Have a look at InMyDreams diary for ebay selling inspiration http://forums.moneysavingexpert.com/showthread.html?t=1908855

Good luck

Tixy

Also - I don't suppose that you egg interest has just gone up in the last week has it? A lot of people's have and if so you can opt out of any increase and continue to pay at the old rate.

MrsTinks

If your current mortgage lender isn't interested in letting you consolidate then I am willing to bet you won't get even a half decent rate anywhere else either... what you need to do is either increase your income or (far easier looking at your SOA) reduce your outgoings... Tixy has covered most of the items and looking at the potential savings you should be within budget pretty soon and infact have money spare... this could either be used for saving for a car or even better to over pay your existing debt. The age of your car doesn't matter - the real cost of it will. ie 14 years is nothing - I've had cars 40 years old that cost me less to run than a 6 year old car work out the repairs it's likely to need and if you can afford them or how long it will take you to save this.

smitheim

Tixy wrote: »

Hi, I know its painful but its a really good step for you to be able to see the full picture, so well done for doing it. And remember any comments people make are meant well!

You are right consolidation/remortgaging is rarely recommended and if the mortgage company has refused looks like you might not have much choice at the moment.

Okay looking at your SoA



I'm sorry to be brutal with your fun items but you cannot go on with a shortfall this size. How soon could you earn more? how old are the children? Are your debts increasing by £300 odd per month? Are you still using the cards?

Its great that your mortgage rate is so low at the moment but remember base rates will rise and then your payments could increase dramatically.

Thank you so much for taking the time to reply (all of you) I'm sorry for my delay in answering - couldn't really do it while oh was home as he's a bit sensitive about things like this!
Some good points made - will try to answer each part;
My wage - it is low but as you guessed is because I need to be here when kids come home from school - hopefully may be able to increase hours in a couple of years when they're old enough to care for themselves.
Benefits - I think that is all we're entitled to
Electricity - this has been bothering me, no arrears yet it is v high, am on prepayment meter and have just last week switched to eon which should save about £20/month - have asked about switching to dd but will apparently have to wait 6 months.
Oil - I had to put this as no option for coal which is what we use. This is rough average, over last few months when v cold were going through 8 bags/month (£105.60!!:eek:)
Water includes some arrears but basic bill is in region of £400/yr - I think it is due to region N Wales :mad:
Similarly with broadband/phone, best rates are not available in our area.
Groceries I know I will have to try harder, but boys never seem to stop eating! (growing lads of 14 and 11)
Clothing too, not much for us, mainly trainers/ rugby boots for ever growing boys!
Petrol - I don't drive myself, oh doesn't actually travel far to work but often rugby games with boys, car seems to b v inefficient (hence us hoping to replace it)
Other ins is mortgage ppi
I know we'll need to reduce entertainment hol money is currently paying for london trip for ds2 - can't have him being only kid in class not to go.
And yes, egg card increased interest in last week as well as twice in last few months :mad: have sent them snotty e-mail and cut up card which made me feel a bit better, lol!

smitheim

niccatw wrote: »

I agree with Tixy. Not much to add dreally.

You want to be throwing anything you have spare at your Egg card - that intersest rate is hideous! I'm guessing Choice and Littlewoods aren't that great either?

Do you have anything you could ebay/car boot? Try shopping in charity shops for a while (if you don't already.), or looks out for toy libraries for the kids.

aybe look into mystery shopping, daily clicks and surveys to supplement your income if working more hours really isn't feasible. It won't give you that much but it might help a little.

Have a look at InMyDreams diary for ebay selling inspiration

Good luck

Thank you for these suggestions will have a look at the link - have sold a few bits recently which has helped me to leave cards alone

smitheim

Forgot to add to Tixy, 'other child-related expenses is dinner money and bus to school for eldest and pocket money for both, which I have cut back on to £15/month

smitheim

MrsTine wrote: »

If your current mortgage lender isn't interested in letting you consolidate then I am willing to bet you won't get even a half decent rate anywhere else either... what you need to do is either increase your income or (far easier looking at your SOA) reduce your outgoings... Tixy has covered most of the items and looking at the potential savings you should be within budget pretty soon and infact have money spare... this could either be used for saving for a car or even better to over pay your existing debt. The age of your car doesn't matter - the real cost of it will. ie 14 years is nothing - I've had cars 40 years old that cost me less to run than a 6 year old car work out the repairs it's likely to need and if you can afford them or how long it will take you to save this.

Thank you I get your point with the car but oh insists that it has become v inefficient and uses a lot of fuel

GardenShed

Are you at the limit on all cards? Just wondering If you could maybe shift some of it to lower interest rates away from the evil egg card?

smitheim

GardenShed wrote: »

Are you at the limit on all cards? Just wondering If you could maybe shift some of it to lower interest rates away from the evil egg card?

Thank you for your reply - we are just about at the limit on all the cards except for oh's egg card. I hate the fact that I pay £107ish each month on my egg card and balance only reduces by £30 :mad: