opinions needed...please

katiepatie

posted my soa a while back and had some great help, so was hoping for some more of you good folks wisdom.

Right! we've made a bit of head way into our debt but am really running out of steam now, am now considering selling our house as it's the biggest outlay we have every month, a couple of agents think we'd get our deposit amount back.....so we would be able to pay off our debt (except the car) and start afresh.
tbh i hate the house now and want rid, but am not sure it's the best way to go financially. i've had a look at rented property and can get something suitable for half the mortgage money, but i just don't know if i should, am soooo confused any advice would be appreciated.

thanks in advance, KP

CCCS_Sarah

katiepatie wrote: »

posted my soa a while back and had some great help, so was hoping for some more of you good folks wisdom.

Right! we've made a bit of head way into our debt but am really running out of steam now, am now considering selling our house as it's the biggest outlay we have every month, a couple of agents think we'd get our deposit amount back.....so we would be able to pay off our debt (except the car) and start afresh.
tbh i hate the house now and want rid, but am not sure it's the best way to go financially. i've had a look at rented property and can get something suitable for half the mortgage money, but i just don't know if i should, am soooo confused any advice would be appreciated.

thanks in advance, KP

Hi Katie,

Selling your house is always an option, and most likely the fasted way to clear the debts. If you did decide to sell the house, you could always look into offering your creditors full and final settlements. Full and final settlements is a way of offering your creditors a reduced amount to clear the debts.

If you would like an appointment with the CCCS to discuss your options, you could call our helpline free on 0800 138 1111.

Hope this helps
Sarah

tyllwyd

If you want people's opinions, you need to give us a bit more info about your situtation, like how much did the house cost, how much is your mortgage, what sort of interest rate & monthly payments are going out etc. It would probably also help if you told us a bit about your family (do you have children?), and your debt situation. (I looked for your SOA but didn't find it)

When you say that you don't know if you should sell the house, what are you worried about - not being able to find a suitable rented house, not being able to get back on the property ladder or something else?

katiepatie

katiepatie wrote: »

My LBM was at chirstmas when my OH used a cc for food shopping, OH payed for everything bills/food and we spent my wage and OH used cc (obviously) all month.

Anyway i have sorted out as much i can (we had 2 maxed cc at 25.9% and savings:( both now paid off) so a massive THANK YOU to you all on here!!!!

Just want to get out of debt as soon as possible, so any advice would be great.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 3558 average over 2 months
one month is a bonus and one's a basic pay, rotating 4/4
Partners monthly income after tax....... 900 average 12 mnths mat pay
(this will return to 1800 but i'll then have 1000 in childcare)
Benefits................................ 238
Other income............................ 95
Total monthly income.................... 4791
Monthly Expense Details
Mortgage................................ 1417
Secured/HP loan repayments.............. 303
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 218 10 mths
Electricity............................. 90
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 50
Mobile phone............................ 35
TV Licence.............................. 12.12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 400 this includes nappies/milk for 2
Clothing................................ 30 not sure if this will even cover the teenagers size 11 shoes
Petrol/diesel........................... 120
Road tax................................ 40
Car Insurance........................... 27.05
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75.6 school meals and chores money
Medical (prescriptions, dentist etc).... 22 contact lenses
Pet insurance/vet bills................. 0
Buildings insurance..................... 40.4 both
Contents insurance...................... 0
Life assurance ......................... 17.71 OH
Other insurance......................... 22.1 my life insurance
Presents (birthday, christmas etc)...... 100
Haircuts................................ 10
Entertainment........................... 5 DS2's football training
Holiday................................. 0
Emergency fund.......................... 0
window cleaner/bin cleaner.............. 10
work overseas .......................... 300
Total monthly expenses.................. 3459.98

Assets
Cash.................................... 0
House value (Gross)..................... 249000
Shares and bonds........................ 0
Car(s).................................. 12000
Other assets............................ 2500
Total Assets............................ 263500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 221466...(1417).....5.62
Hire Purchase (HP) debt ...... 15500....(303)......11
Total secured & HP debts...... 236966....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
rbs............................8064.43...279.......0
motorbike......................835.......119.......0
barclay card...................9089......231.......6.73
loan...........................7247.79...217.......11.9
Total unsecured debts..........25236.22..846.......-

Monthly Budget Summary
Total monthly income.................... 4,791
Expenses (including HP & secured debts). 3,459.98
Available for debt repayments........... 1,331.02
Monthly UNsecured debt repayments....... 846
Amount left after debt repayments....... 485.02
Personal Balance Sheet Summary
Total assets (things you own)........... 263,500
Total HP & Secured debt................. -236,966
Total Unsecured debt.................... -25,236.22
Net Assets.............................. 1,297.78

this was my soa in jan i think, i will try to update it as i did take advice and cancel stuff we didn't need. Before posting this i had paid off 2 credit cards with our 14000 savings.

tbh tyllwyd i think am worried about not getting back on the property market ever again (DH 36 and am 34), both of us are fed up only just getting by and because my hubby works away more than half the year, am starting to feel its just not worth it, we're looking at a dfd of dec but am running out of steam and just want to get of the bus and start over but am not sure if its the best way to go, should l sit put while am paying off the debt or get out now, clear the debt and start saving again....argh my head hurts

pennypusher

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 3558 average over 2 months
one month is a bonus and one's a basic pay, rotating 4/4
Partners monthly income after tax....... 900 average 12 mnths mat pay
(this will return to 1800 but i'll then have 1000 in childcare)
Benefits................................ 238
Other income............................ 95
Total monthly income.................... 4791
Monthly Expense Details
Mortgage................................ 1417
Secured/HP loan repayments.............. 303
Rent.................................... 0
Management charge (leasehold property).. 0tr
Council tax............................. 218 10 mths Try and spread this over 12 months
Electricity............................. 90 Can you get a cheaper supplier or turn the thermostat down a bit
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 50
Mobile phone............................ 35
TV Licence.............................. 12.12
Satellite/Cable TV...................... 40 Get rid of this and get freeview
Internet Services....................... 0
Groceries etc. ......................... 400 this includes nappies/milk for 2
Clothing................................ 30 not sure if this will even cover the teenagers size 11 shoes You prob need more here
Petrol/diesel........................... 120
Road tax................................ 40
Car Insurance........................... 27.05
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75.6 school meals and chores money Maybe do packed lunches for a while
Medical (prescriptions, dentist etc).... 22 contact lenses Can you get these cheaper online
Pet insurance/vet bills................. 0
Buildings insurance..................... 40.4 both See if you can get these cheaper
Contents insurance...................... 0
Life assurance ......................... 17.71 OH
Other insurance......................... 22.1 my life insurance
Presents (birthday, christmas etc)...... 100
Haircuts................................ 10
Entertainment........................... 5 DS2's football training
Holiday................................. 0
Emergency fund.......................... 0
window cleaner/bin cleaner.............. 10 Get rid of this
work overseas .......................... 300
Total monthly expenses.................. 3459.98

Assets
Cash.................................... 0
House value (Gross)..................... 249000
Shares and bonds........................ 0
Car(s).................................. 12000 Can you get a cheaper car
Other assets............................ 2500 Can you get rid of the bike
Total Assets............................ 263500

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 221466...(1417).....5.62
Hire Purchase (HP) debt ...... 15500....(303)......11
Total secured & HP debts...... 236966....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
rbs............................8064.43...279...... .0
motorbike......................835.......119...... .0
barclay card...................9089......231.......6.73
loan...........................7247.79...217...... .11.9
Total unsecured debts..........25236.22..846.......-

Monthly Budget Summary
Total monthly income.................... 4,791
Expenses (including HP & secured debts). 3,459.98
Available for debt repayments........... 1,331.02
Monthly UNsecured debt repayments....... 846
Amount left after debt repayments....... 485.02
Personal Balance Sheet Summary
Total assets (things you own)........... 263,500
Total HP & Secured debt................. -236,966
Total Unsecured debt.................... -25,236.22
Net Assets.............................. 1,297.78
I've made a few suggestions where you could cut down. Hope this helps.

katiepatie

going by our new soa, our unsecured debt is now at 21,179.89, so we have managed to make some head way:j thats made me smile for a change lol


pennypusher thanks for the comments, the motorbike is up for sale at the moment, so fingers crossed the weather picks up and it should sell for at least £2500.

maybe i should ask why shouldn't i sell the house?....worth 249000 with outstanding mortgage of 220000, approx 5000 to sell, which should leave enough to cover debt and then save debt payment amount (at present) plus the savings from not paying the mortgage, which means we could save 1300ish per month :think:

JohnD76

If I were you I would use your £485.02 a month to clear your bike loan over the course of two months which would save you £119 a month, and sell the bike.

Add the £485.02 + £119 (£604.05) to your loan payments if you can, or use it against one of the cards if you can't over pay the loan.

What would you do if you sold the house? At least you are currently paying off your mortgage and not someone elses.

If you rent, have you thought about how much you would have to put down for the deposit?

pennypusher

Hi well if you sell the house and then rent you may have to move regularly if your landlord gives you notice and that won't be much fun with the children. You might then also have to change schools for them and playgroups/nursery. You will then move into a house that you have no say in decorating and you will be paying other people money.
Can you extend the mortgage so you pay less each month? To be honest you have a large salary and should be able to live comfortably with some adjustment.
According to your SOA you have a large amount left over at the end of the month. If you don't, start a spending diary to see exacly what you are spending it all on. If you keep a very tight eye on your spending you should be able to sort it all out.

katiepatie

pennypusher, i think thats the biggest fear tbh (having to move again at the end of a lease), the kids are at a RC school, so are bused in from a large area, so that wouldn't be a problem.
i think it might have more to do with not feeling settled here....which has led to the constant over spending, we bought this house while we had 2 children at school, after 4 years trying for more children gave up and moved to this new build, then we got pregnant lol. so maternity leave for a year, then we were blessed with another pregnancy while i was still on leave......not at all what we planned for, we're just lucky! (av been on half pay for 3 years:eek:)
anyway i now have 4 perfect children, a good income, 21 grand debt:(, a hubby who's only here 5 months of the year and a house that i feel is just not worth it. enough of my moaning:o
thanks for the responses am guessing we'll continue with snowballing and your right JohnD76 at least its our mortgage we're paying not someone elses, but roll on DFD!
KP

TurnaroundSue

Hi Katie - do you mean that you will be debt free in December this year? If so, I personally think it would be a good idea to stay put myself, as in just over 6 months time you will have all that money to yourself which you could consider putting some in overpayments on your mortgage. When the market picks up and you have more equity in your home you can move then. What is it that you do not like about the house? Why don't you feel that you fit it? Will it change things if you move in the fact that your OH will still be away for 5 months of the year? Does that get to you sometimes? Is this the one of the causes of your spending? Maybe if you can understand the cause underlying in your spending it might help to find a solution.

I agree that a spending diary would be a good idea so you can see where all the money goes. Maybe you could post an up to date SOA and then you might feel better seeing how much inroad you have made to your debt since the last one.

Good luck and keep posting

dancingfairy

hi -I agree with Turnaround Sue- if it's December this year then that's not long to go. Maybe update the snowball and see when your new debt free date is? When you are debt free you will have 1,300 pounds a month spare for yourselves :j.
The other option of course is to just pay the minimums and then use some of the surplus to treat yourself a little and then use the rest of the surplus to pay off the debt - o.k it will extend your debt free date but it might keep you saner! - a small treats budget.
Good Luck with whatever you decide.
df