Oh my, how much do I owe

FlipsLDC

Hi all, Hoping for some good advice on this hugh mess ive got myself into, basically I can no longer afford my outgoings to incommings and I am now going to contact my creditors hoping to freeze interest and suggest min payments. I have posted my SOA below. Would appreciate it if anyone can give me advice on how much I should offer the creditors, eg should they all be the same value or dependant on how much I currently pay to them, or any advice on a way forward to clear these. Sorry if this is abit of a mess, head still banging on how much I actually owe....

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1200
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2720

Monthly Expense Details
Mortgage................................ 369
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 119
Electricity............................. 55
Gas..................................... 55
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 20
Mobile phone............................ 60
TV Licence.............................. 19
Satellite/Cable TV...................... 24
Internet Services....................... 20
Groceries etc. ......................... 350
Clothing................................ 10
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 15
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1606


Assets
Cash.................................... 0
House value (Gross)..................... 165000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 168000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 16500....(369)......0
Total secured & HP debts...... 16500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Visa...........................6500......190.......2.072
cap 1..........................3200......185.......34
barclay........................4000......90........27.9
Car............................3400......109.......0
DFS............................2000......62........0
Venture........................1600......60........0
Windows........................3750......88........26
aa.............................26000.....369.......5.85
Halifax........................17000.....257.......8.9
Halifax........................23000.....273.......10.9
moorcroft......................14000.....100.......0
preference.....................2000......80........27.9
mnba...........................2500......70........0
Total unsecured debts..........108950....1933......-


Monthly Budget Summary
Total monthly income.................... 2,720
Expenses (including HP & secured debts). 1,606
Available for debt repayments........... 1,114
Monthly UNsecured debt repayments....... 1,933
Amount short for making debt repayments. -819

Personal Balance Sheet Summary
Total assets (things you own)........... 168,000
Total HP & Secured debt................. -16,500
Total Unsecured debt.................... -108,950
Net Assets.............................. 42,550

Willow_K

There are probably some small changes you could make to your SOA, but you will not be able to make up you £819 a month short fall.

You really need to call National Debt Line, CCCS or PayPlan as soon as possible to talk through your options. Make sure you contact one of the free charities and not a fee paying one.

Good Luck x

Tixy

Hi Flips and welcome

Well done for posting and asking for help.

If you are going to be paying less than the minimum payments then you need to work out the total you can afford for debt repayments and the split this pro-rata based on the balance owed to each creditor. This is the fairest way to do it and the way the creditors accept.

Have you sort any advice from one of the debt charities? Just want to check you are aware of the implications of reduced payments (ie a wrecked credit file)

I'll look through your costs see if i can think of anything to suggest

FlipsLDC wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1200
Benefits................................ 0 include child benefits here. Are you entitled to any tax credits?
Other income............................ 0
Total monthly income.................... 2720

Monthly Expense Details
Mortgage................................ 369
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 119 there is a quick check you can do to make sure you are in the correct CT band, have you ever looked at this.
Electricity............................. 55 Gas..................................... 55 These look quite high, have you checked you are with the cheapest supplier and cheapest tariff? have you tried reducing your usage?
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 20
Mobile phone............................ 60 can you reduce at all?
TV Licence.............................. 19
Satellite/Cable TV...................... 24 landline, satellite and internet currently £64, look for a combined package for less or consider cancelling SKY and getting combined internet & phone (cheapest is about £20 for both)
Internet Services....................... 20
Groceries etc. ......................... 350 need to reduce this quite a bit. Have you tried the drop a brand challenge? try making a meal plan for the week then only shopping from that list.
Clothing................................ 10
Petrol/diesel........................... 120 are all journeys essential?
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 120 ?what is this for, is it the cheapest, do youget a season ticket etc?
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 15
Buildings insurance..................... 15all insurances make sure you shop around at renewal time, and look if you can earn cashback to save even more.
Contents insurance...................... 15
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30 can you go slightly longer between cuts?
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1606


Assets
Cash.................................... 0
House value (Gross)..................... 165000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 168000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 16500....(369)......0
Total secured & HP debts...... 16500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Visa...........................6500......190.......2.072 is this the monthly interest rate?
cap 1..........................3200......185.......34
barclay........................4000......90........27.9
Car............................3400......109.......0
DFS............................2000......62........0
Venture........................1600......60........0
Windows........................3750......88........26
aa.............................26000.....369.......5.85
Halifax........................17000.....257.......8.9
Halifax........................23000.....273.......10.9
moorcroft......................14000.....100.......0
preference.....................2000......80........27.9
mnba...........................2500......70........0
Total unsecured debts..........108950....1933......-


Monthly Budget Summary
Total monthly income.................... 2,720
Expenses (including HP & secured debts). 1,606
Available for debt repayments........... 1,114
Monthly UNsecured debt repayments....... 1,933
Amount short for making debt repayments. -819

Personal Balance Sheet Summary
Total assets (things you own)........... 168,000
Total HP & Secured debt................. -16,500
Total Unsecured debt.................... -108,950
Net Assets.............................. 42,550

Okay well that really is quite a lot of debt compared to what you earn and have left for repayments. You have put that your mortgage is £16.5k? is that right or should it be £165k.

I think bearing in mind the shortfall you have and the amount of debt I would suggest that you speak to one of the debt charities before you set out a repayment plan to your creditors.

Do you have any items you can sell to raise some cash? What was the debt money spent on? was it just general overspending over years or specific large items or something else?

Have you considered whether either of you could get a second job or overtime at work? Could you get a lodger in to help contribute.

Here is a list of the recommend free debt advisors http://forums.moneysavingexpert.com/showthread.html?t=2077631

Good luck

miss_missy

FlipsLDC wrote: »

Hi all, Hoping for some good advice on this hugh mess ive got myself into, basically I can no longer afford my outgoings to incommings and I am now going to contact my creditors hoping to freeze interest and suggest min payments. I have posted my SOA below. Would appreciate it if anyone can give me advice on how much I should offer the creditors, eg should they all be the same value or dependant on how much I currently pay to them, or any advice on a way forward to clear these. Sorry if this is abit of a mess, head still banging on how much I actually owe....

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1200
Benefits................................ 0 you should be getting at least CB and may be entitled to tax credits also check this out CB is 20 per week
Other income................. ........... 0
Total monthly income.................... 2720

Monthly Expense Details
Mortgage................................ 369
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 119 pay over 12 months instead of 10
Electricity............................. 55 this is high look to reduce and check to see if you can get a better deal
Gas..................................... 55 same as above
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 20
Mobile phone............................ 60 reduce this try to get better deals or go PAYG
TV Licence.............................. 19 this should be 12 and some pence i always budget 13
Satellite/Cable TV...................... 24 you could reduce this or go freeview
Internet Services....................... 20
Groceries etc. ......................... 350 this is a little high you could reduce by at least 50 easily but could prob get down by 100 with a little extra work
Clothing................................ 10
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 120 this seems alot for extra travel are they anyways of reducing this?
Childcare/nursery....................... 0
Other child related expenses............ 20 whats this?
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 15
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30 you could try and reduce a little, using local colleges etc
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0 you should budget something here
Total monthly expenses.................. 1606


Assets
Cash.................................... 0
House value (Gross)..................... 165000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 168000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 16500....(369)......0
Total secured & HP debts...... 16500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Visa...........................6500......190.......2.072
cap 1..........................3200......185.......34
barclay........................4000......90........27.9
Car............................3400......109.......0
DFS............................2000......62........0
Venture........................1600......60........0
Windows........................3750......88........26
aa.............................26000.....369.......5.85
Halifax........................17000.....257.......8.9
Halifax........................23000.....273.......10.9
moorcroft......................14000.....100.......0
preference.....................2000......80........27.9
mnba...........................2500......70........0
Total unsecured debts..........108950....1933......-


Monthly Budget Summary
Total monthly income.................... 2,720
Expenses (including HP & secured debts). 1,606
Available for debt repayments........... 1,114
Monthly UNsecured debt repayments....... 1,933
Amount short for making debt repayments. -819

Personal Balance Sheet Summary
Total assets (things you own)........... 168,000
Total HP & Secured debt................. -16,500
Total Unsecured debt.................... -108,950
Net Assets.............................. 42,550

hi ive listed somethings above such as child benefit which should get you 86 extra a month but i can see a way of make up an 800 shortfall
i would suggest you talk to one of the debt charities
cccs do an online debt remedy which is very good as you dont have give any personnel details and they give you some ideas of what they would reccommend i use it to keep my budgeting on track its very good have a try i have to say with the size of your debts i would say your best off getting help asap
do you current have use an overdraft?
i would also reccommend opening a new bank account so you have one ready just incase but make sure its not linked to someone you owe

well done for posting sorry my advice doesnt sound great but your doing the right thing getting help and advice

miss_missy

hi
after rereading your post i see your going to contact your creditors do you have any debts with the bank you currently bank with? if so you need to get a new account and have your wages paid into the new asap
i would suggest you do token payments for at least one month and tell them your getting advice from one of the debt charities to give you some time to sort out what to do

Tixy

Agree with mis missy - here is the relevant token payment letter - which will also give you some breathing space for a month - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52

WASHER

Welcome to MSE and the DFW board.

Your debt seems to be rounded up, is the debt the actual amount outstanding or the amount you think is outstanding? Two very different things.

Are any of the outstanding debts secured loans, you seem to have three loans, 2 Halifax and one AA, are these amounts correct?

You have taken a very important step tonight posting on here, its never easy seeing your SOA in black and white, Martin Lewis once said he has never seen a debt problem which cannot be solved, and I think this is true in your case. You do need professional and free advice, no amount of cost cutting is going to make up the short fall, the CCCS are fantastic, they will help you free of charge, there are other companies too which do free of charge counselling, Payplan is one, and Christians against Proverty is another.

WASHER.x.

FlipsLDC

Many thanks for all the advice so far, Token payment for a month seems a good idea now that Im finally sorting this mess out. I have contacted CCCS and await contact from them, I have gone through all my outgoings to reduce it further. Mobile phones are high due to having 3 between all 3 of us. Cannot go for any other packages for phone/internet due to location of where I live. very unique situation there unfortunatly. I also work away hence extra public transport (buses + Trains), I also havent put any benefits on as my child leaves school this year and these will stop so thought best no to include. Again many thanks for advice will keep you all posted how I get on and as always any other advice will be greatly received. I wont be beaten on this now.

slummymummyof3

Where do you do your weekly shop? Try aldi/lidl to lower shopping bill. Have you got food in your cupboards/freezer that you can use up in order to reduce your outgoings at all?

Have you got anything you can sell on ebay?

Is your child in further education? Are you able to claim EMA?

Look at the costs of life insurance - they have reduced lots over the last few years so you may be able to get a better deal - check oofers on cash back sites as well.

Keep a spending diary to check you aren't spending unnecessary money such as coffees whilst out as these soon mount up

WASHER

FlipsLDC wrote: »

. Cannot go for any other packages for phone/internet due to location of where I live. very unique situation there unfortunatly.

Would that be Karoo you are with?

FlipsLDC

Yeah Washer thats the one, Its a great service we have.:)