Novice.. Made a start for help

starlite1

Hi,
I'm new to forums of any kind so please be patient and forgive me if i beach any rules..
I have completed a SOA which told what i already new.. :embarasse

My situation is that following my divorce I had to set up a new home from scratch with nothing.. As my marital home is on the market I funded this largely through credit cards. knowing I could pay off the balances when it sold. Much more complicated that but have simplified it ) Also i brought debt from the marriage. Over 3 years i have switched debt to interest free deals which have all come to an end..! I now cannot get any new credit. I contacted the C.C companies to ask for an interim interest reduction but all have refused. I am currently on income support and have just completed 3 years study for a new career..
Not sure where togo from here as i cannot make ends meet.. but will be able to pay debts off when house sells I will also need to apply for a mortgage so can't risk a blemish on my credit score.. i have applied for and been turned down in the last 6 months for 2 credit cards..
SOA as follows:

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 842.23
Other income............................ 43.33
Total monthly income.................... 885.56

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 125
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35.7
Telephone (land line)................... 27.58
Mobile phone............................ 33
TV Licence.............................. 12.04
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 25
Road tax................................ 11
Car Insurance........................... 17
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..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 436.32


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2800
Other assets............................ 0
Total Assets............................ 2800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
halifax C.C....................5500......75........21.95
mint c.c.......................4600......127.......23.29
virgin c.c.....................3000......80........26.4
freemans catalogue.............600.......57.19.....NaN
Argos store card...............500.......90........NaN
Asda store card................850.......25........24.5
Littlewoods credit ca..........250.......7.5.......27.9
Barclaycard....................1000......25........0
car loan.......................3641......77.37.....12
Total unsecured debts..........19941.....564.06....-


Monthly Budget Summary
Total monthly income.................... 885.56
Expenses (including HP & secured debts). 436.32
Available for debt repayments........... 449.24
Monthly UNsecured debt repayments....... 564.06
Amount short for making debt repayments. -114.82

Personal Balance Sheet Summary
Total assets (things you own)........... 2,800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,941
Net Assets.............................. -17,141

Wow

I can't be bothered to read it all but welcome to the forum.:j:D

daviesalie_2

starlite1 wrote: »

Hi,
I am currently on income support and have just completed 3 years study for a new career.. Are you likely to get a job soon? I'm not sure how it all works but New Deal may be able to help you initially.

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 842.23
Other income............................ 43.33
Total monthly income.................... 885.56

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 125 - Are you on economy 7, can you get a cheaper rate? I am and pay £102 (3bed house) Use the comparison sites for cheapest rate.
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35.7
Telephone (land line)................... 27.58 Do you need a mobile and a land line, could one go for now?
Mobile phone............................ 33
TV Licence.............................. 12.04
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 25
Road tax................................ 11
Car Insurance........................... 17
Car maintenance (including MOT)......... 0 Should be something here, service, tyres, etc
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..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 How will you be funding xmas/birthdays if house doesn't sell as quick as you hope
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 436.32


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2800
Other assets............................ 0
Total Assets............................ 2800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
halifax C.C....................5500......75........21.95
mint c.c.......................4600......127.......23.29
virgin c.c.....................3000......80........26.4
freemans catalogue.............600.......57.19.....NaN
Argos store card...............500.......90........NaN
Asda store card................850.......25........24.5
Littlewoods credit ca..........250.......7.5.......27.9
Barclaycard....................1000......25........0
car loan.......................3641......77.37.....12
Total unsecured debts..........19941.....564.06....-


Monthly Budget Summary
Total monthly income.................... 885.56
Expenses (including HP & secured debts). 436.32
Available for debt repayments........... 449.24
Monthly UNsecured debt repayments....... 564.06
Amount short for making debt repayments. -114.82

Personal Balance Sheet Summary
Total assets (things you own)........... 2,800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,941
Net Assets.............................. -17,141

Hi Starlite and welcome (from a fellow (nearly) newbie).

I've made a few suggestions on your SOA. I was in a similar situation to you re waiting for house to sell and borrowing on cards a few years ago. But with me the house took over a year to sell and didn't get as much as I hoped in the end. Cleared off most of debt but stupidly didn't get rid of cards hence my signature, but thats another story:o.

Sounds like everythings hinged on the house selling. Has it been up for sale long?

If it takes some time to sell whats the likelihood of you getting a job since you've finished your studies?

I may be wrong but I think you could work up to 15 hours and still claim income support? May help you meet the shortfall.

Sorry its limited but I'm sure you'll have lots of replies with more advice.

Good luck and I'm sure there's a solution x

WASHER

starlite1 wrote: »

Hi,

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 842.23
Other income............................ 43.33
Total monthly income.................... 885.56

Monthly Expense Details
Mortgage................................ 0 - DO YOU NOT PAY RENT OR A MORTGAGE - IS THIS PAID BY THE GOVERNMENT?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 DO YOU NOT PAY COUNCIL TAX
Electricity............................. 125 - THIS IS VERY HIGH, SHOP AROUND USING A COMPARISON WEBSITE
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35.7
Telephone (land line)................... 27.58
Mobile phone............................ 33 - TOO HIGH, REDUCE YOUR PACKAGE OR TALK LESS ON THE PHONE:D
TV Licence.............................. 12.04
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0 - YOU MUST PUT SOMETHING IN HERE, YOU HAVE CHILDREN WHO ARE GROWING
Petrol/diesel........................... 25
Road tax................................ 11
Car Insurance........................... 17
Car maintenance (including MOT)......... 0 - AGAIN YOU MUST ADD SOMETHING IN HERE, YOUR CAR WILL NOT BE MAINTENANCE FREE, YOU WILL NEED A NEW TYRE EVENTUALLY
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 - DO YOUR CHILDREN NOT DO ANY OUT OF SCHOOL ACTIVITIES?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 - YOU MUST HAVE CONTENTS INSURANCE - VERY IMPORTANT
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - YOU MUST BUDGET FOR CHRISTMAS, OTHERWISE IT HAS A HABIT OF BITING YOU ON THE REAR!
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 - AGAIN, YOU MUST PUT SOMETHING HERE, WHAT WILL HAPPEN IF YOUR WASHING MACHINE BREAKS DOWN FOR EXAMPLE
Total monthly expenses.................. 436.32


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2800
Other assets............................ 0
Total Assets............................ 2800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
halifax C.C....................5500......75........21.95
mint c.c.......................4600......127.......23.29
virgin c.c.....................3000......80........26.4
freemans catalogue.............600.......57.19.....NaN
Argos store card...............500.......90........NaN
Asda store card................850.......25........24.5
Littlewoods credit ca..........250.......7.5.......27.9
Barclaycard....................1000......25........0
car loan.......................3641......77.37.....12
Total unsecured debts..........19941.....564.06....-


Monthly Budget Summary
Total monthly income.................... 885.56
Expenses (including HP & secured debts). 436.32
Available for debt repayments........... 449.24
Monthly UNsecured debt repayments....... 564.06
Amount short for making debt repayments. -114.82

Personal Balance Sheet Summary
Total assets (things you own)........... 2,800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,941
Net Assets.............................. -17,141

Welcome to MSE and the Debt Free board. I have commented above. I suggest you speak to a debt charity like the CCCS (a free to use company who will help you).

Well done for acknowledging your situation now, its never easy seeing your SOA in black and white, although it does need completing somewhat, you must put a figure in for car maintenance and clothing for example.

Does the childrens father not contribute towards the children?

WASHER.x.

tiny_courageous

Welcome to DFW.

Just a thought but do you really need the car? Your petrol usage seems quite low, are they journeys that you could do by foot/get a lift?

Tixy

Hi and welcome

It looks like you are in a difficult position if you want to manage until your house is sold without affecting your credit rating.
Have you so far managed to keep all making all your minimum payments?
How far have you got with the house sale?
How soon until you start earning after your course? are you jobhunting? are you also hunting for 'any' jobs rather than just those in your field?

starlite1 wrote: »

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 842.23 have you double checked you are getting everything you can?
Other income............................ 43.33 whats this please? if its not child maintenance do you get any?
Total monthly income.................... 885.56

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 125 this is pretty high, does it include arrears? is all your heating electrical? have your tried reducing your usage and have you checked for a cheaper supplier/cheaper tariff?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35.7
Telephone (land line)................... 27.58 is this just telephone or does it inlude internet?
Mobile phone............................ 33 can you reduce at all? use less or switch to a cheaper tariff?
TV Licence.............................. 12.04
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0 do you not need anything here for the children?
Petrol/diesel........................... 25 based on the low mileage is a car essential? could you manage without?
Road tax................................ 11
Car Insurance........................... 17
Car maintenance (including MOT)......... 0 if you have a car you need to budget something for servicing, new tyres, mot etc
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 non at all?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 do you not have B&C at all? it can be got pretty cheap by using the tips on here.
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 never anything?
Haircuts................................ 0 never?
Entertainment........................... 0 nothing at all? not kids activities, after school clubs etc?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 436.32


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2800
Other assets............................ 0
Total Assets............................ 2800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
halifax C.C....................5500......75........21.95
mint c.c.......................4600......127.......23.29
virgin c.c.....................3000......80........26.4
freemans catalogue.............600.......57.19.....NaN
Argos store card...............500.......90........NaN
Asda store card................850.......25........24.5
Littlewoods credit ca..........250.......7.5.......27.9
Barclaycard....................1000......25........0
car loan.......................3641......77.37.....12
Total unsecured debts..........19941.....564.06....-


Monthly Budget Summary
Total monthly income.................... 885.56
Expenses (including HP & secured debts). 436.32
Available for debt repayments........... 449.24
Monthly UNsecured debt repayments....... 564.06
Amount short for making debt repayments. -114.82

Personal Balance Sheet Summary
Total assets (things you own)........... 2,800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,941
Net Assets.............................. -17,141

I suspect you have underestimated some of the costs of your budget (in terms of long term living) such as clothes, presents, entertainment etc. So long term your shortfall is probably more than the £115. If you realistically will be able to sell your house or get a job in the next few months then you may be able to stuggle on as you are.

If not then I think you need to seriously consider other options - those options are likely to effect your credit rating though.

So assuming you go for the struggle on option, what do you have you can sell to raise some money? old kids clothes, toys? books, music, games etc? try ebay/amazon/gumtree/carboot sales.

Have you checked you are getting all the benefits you can?
Do you get council tax benefit or are you exempt from council tax (I note you havn't included it in expenses).

You haven't put your house value in. Is your house free from mortgage or are you paying a mortgage each month that you haven't included? Or are you living elsewhere and get housing benefit?

How old are your kids? can then look to get paperrounds etc to earn any money? How soon do you hope (expect) to find work?

I'm sure others will be along with more suggestions.

Good luck

theoretica

How long has the house been on the market for, and how attractively is it priced? If it is pretty certain to sell soon a bridging loan might be worth investigating- with care!