Finally decided to get my life in order and get debt free!!!!!!!

bigt1888

hi all,

this is my first post and after struggling for the past few years hoping that my ever growing debt mountain would get smaller all on its own i have finally decided to face up to the fact that the only person who is going to fix things is me!!!

so here goes

INCOME

my monthly salary £1950
my wifes salary £750
child benefit £138

income total £2838

OUTGOINGS

mortgage £717
council tax £116
gas/electric £127
life insurance £39
home insurance £13
caravan insurance £17
personal loan 1 £318
personal loan 2 £217
personal loan 3 £156
car finance £200
car insurances £71
credit card 1 £27
credit card 2 £51
credit card 3 £120
credit card 4 £58
phone/broadband £37
wifes mobile £27
tv licence £12
contact lenses £5
child maintenance £260

total outgoings £2588

in total at this moment i have an outstanding mortgage of £94,500

and total unsecured debts of £52,318.60


im still unsure how this board works but i have decided to be as upfront and open as posible in the hope that someone can point me in the right direction and get me out of this mess that seems to be getting worse and worse every month.

if anyone can give me advise as to what information i should provide in order for someone o help then i would be more than grateful......

climbintheladderouttadebt

Hi Bigt1888,

Welcome to MSE! I'm sure there will be some very helpful and experienced posters along soon to help and advise.

Well done on taking your first step!

bigt1888

thanks for the speedy response!!!! it lets me know that there is someone out there which fills me with hope!!!!!!!!

RAS

Can you fill in this form

http://www.makesenseofcards.com/soacalc.html

And format it for MSE - you may have to remove the link at the bottom of the page to post up because of yourt low post count.

You need to add food, clothing , values of loans and cards and their limits and Aprs.

bigt1888

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.................... 2

Monthly Income Details
Monthly income after tax................ 1950
Partners monthly income after tax....... 750
Benefits................................ 138
Other income............................ 0
Total monthly income.................... 2838

Monthly Expense Details
Mortgage................................ 717
Secured/HP loan repayments.............. 820
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 80
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 37
Mobile phone............................ 27
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 40
Car Insurance........................... 70
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 18
Buildings insurance..................... 39
Contents insurance...................... 13
Life assurance ......................... 39
Other insurance......................... 17
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 2950


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 131000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94500....(717)......5.8
Hire Purchase (HP) debt ...... 42000....(820)......0
Total secured & HP debts...... 136500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
card 1.........................4000......120.......0
catrd 2 .......................2600......58........0
card 3.........................2400......58........0
card 4.........................1100......26........0
Total unsecured debts..........10100.....262.......-


Monthly Budget Summary
Total monthly income.................... 2,838
Expenses (including HP & secured debts). 2,950
Available for debt repayments........... -112
Monthly UNsecured debt repayments....... 262
Amount short for making debt repayments. -374

Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -136,500
Total Unsecured debt.................... -10,100
Net Assets.............................. -15,600

WASHER

bigt1888 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.................... 2

Monthly Income Details
Monthly income after tax................ 1950
Partners monthly income after tax....... 750
Benefits................................ 138
Other income............................ 0
Total monthly income.................... 2838

Monthly Expense Details
Mortgage................................ 717
Secured/HP loan repayments.............. 820
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 80 - are you in arrears? If not, this is too high
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 37 - too high
Mobile phone............................ 27 - can you reduce
TV Licence.............................. 12
Satellite/Cable TV...................... 0 ? Do you not have sky/cable?
Internet Services....................... 0 ?
Groceries etc. ......................... 400 - far too high
Clothing................................ 50 - you can't afford this
Petrol/diesel........................... 200
Road tax................................ 40
Car Insurance........................... 70
Car maintenance (including MOT)......... 0 - you must put something here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 18
Buildings insurance..................... 39 - your home insurance is far far too high
Contents insurance...................... 13
Life assurance ......................... 39 - it is important to have these, far more important than a mobile so do not cancel these
Other insurance......................... 17
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 100 - you certainly cannot afford a holiday for the next few years.
Emergency fund.......................... 0
Total monthly expenses.................. 2950


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 131000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94500....(717)......5.8
Hire Purchase (HP) debt ...... 42000....(820)......0
Total secured & HP debts...... 136500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
card 1.........................4000......120.......0
catrd 2 .......................2600......58........0
card 3.........................2400......58........0
card 4.........................1100......26........0
Total unsecured debts..........10100.....262.......-


Monthly Budget Summary
Total monthly income.................... 2,838
Expenses (including HP & secured debts). 2,950
Available for debt repayments........... -112
Monthly UNsecured debt repayments....... 262
Amount short for making debt repayments. -374

Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -136,500
Total Unsecured debt.................... -10,100
Net Assets.............................. -15,600

I have added comments in above. You need to reduce your spending today, the mobile, the holiday etc to make your books balance.

You have a good salary, and I suspect you are over the £40K a year joint salary which means next april you will lose the tax credits worth £545 per year. £40 per month. You need to slash all unneccessary spending.

Take a look at the CCCS website, it has a wealth of knowledge on there.

WASHER.x.

RAS

Ok

Plainly your biggest problem is that you have massive secured debts. When can you return the cars under their argreements without penalty. usually it is the half way mark.

There are the sort of SOA that CCCS would allow you but is not going to get you solvent as you do not have enough to cover your spends, before the unsecured debts, so i am going to skin this SOA.

Also you need to list the APRs on the cards as this massivley affects which way you pay them off.

bigt1888 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.................... 2 - do you really really need two cars?

Monthly Income Details
Monthly income after tax................ 1950
Partners monthly income after tax....... 750
Benefits................................ 138
Other income............................ 0
Total monthly income.................... 2838

Monthly Expense Details
Mortgage................................ 717
Secured/HP loan repayments.............. 820 - OUCHHHH!!!!!
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 80 - very high. Get energy saving lamps, turn down any water heater, turn off everything at the socket and remove transformers.
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 37 - very very high. You need to cut this back
Mobile phone............................ 27 - can you reduce the package and then go PAYG
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 - you need to get this to £300 ugently and aim for £260
Clothing................................ 50 - you simply cannot aford to spemnd £600 on clothes. Shoes and knickers only for a while - from Primark
Petrol/diesel........................... 200 - are all the journeys essential?
Road tax................................ 40
Car Insurance........................... 70 -
Car maintenance (including MOT).........
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 18
Buildings insurance..................... 39 - this is very high given it does not include contents
Contents insurance...................... 13
Life assurance ......................... 39
Other insurance......................... 17
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 100 - unless this is already booiked you have to cancel this until the finances are worked out.
Emergency fund.......................... 0
Total monthly expenses.................. 2950


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 131000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94500....(717)......5.8
Hire Purchase (HP) debt ...... 42000....(820)......0
Total secured & HP debts...... 136500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
card 1.........................4000......120.......0
catrd 2 .......................2600......58........0
card 3.........................2400......58........0
card 4.........................1100......26........0
Total unsecured debts..........10100.....262.......-


Monthly Budget Summary
Total monthly income.................... 2,838
Expenses (including HP & secured debts). 2,950
Available for debt repayments........... -112
Monthly UNsecured debt repayments....... 262
Amount short for making debt repayments. -374

Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -136,500
Total Unsecured debt.................... -10,100
Net Assets.............................. -15,600

bigt1888

thanks for the replies guys!!!!

let me try to answer what i can and take it from there

we need two cars as i need my car for work and my wief needs a car to do the school run and drop and collect the kids from nursery/school and get to and from work etc and public transport is not an option as it simply does not cover the areas that she needs to cover in the tim allowed..

telephone covers line rental and broadband we dont have sattelite tv only freeview through virgin

groceries are admittedly too high will definately aim to hit the £250 mark

clothing budget is to cover kids evergrowing bodies and work clothes but again it could be trimmed

fuel costs are high due to wifes journeys and my milage at work and are at the bare minimum

holiday costs are for the site fees and upkeep of our caravan which is our only form of relaxation every weekend and i consider it essential as it covers all our holidays

Fortheloveofmoney

bigt1888 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.................... 2

Monthly Income Details
Monthly income after tax................ 1950
Partners monthly income after tax....... 750
Benefits................................ 138
Other income............................ 0
Total monthly income.................... 2838

Monthly Expense Details
Mortgage................................ 717
Secured/HP loan repayments.............. 820
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 80
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 37
Mobile phone............................ 27
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 40
Car Insurance........................... 70
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 18
Buildings insurance..................... 39
Contents insurance...................... 13
Life assurance ......................... 39
Other insurance......................... 17
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 2950


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 131000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94500....(717)......5.8
Hire Purchase (HP) debt ...... 42000....(820)......0
Total secured & HP debts...... 136500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
card 1.........................4000......120.......0
catrd 2 .......................2600......58........0
card 3.........................2400......58........0
card 4.........................1100......26........0
Total unsecured debts..........10100.....262.......-


Monthly Budget Summary
Total monthly income.................... 2,838
Expenses (including HP & secured debts). 2,950
Available for debt repayments........... -112
Monthly UNsecured debt repayments....... 262
Amount short for making debt repayments. -374

Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -136,500
Total Unsecured debt.................... -10,100
Net Assets.............................. -15,600

Well done for posting. This step is always hard.

I think a few things are missing from your SOA. Do you pay water rates? You also need to add something for car maintenance & MOTS.

Did I also see on your OP that you pay child maintenance? This also needs to be added.

I know that you consider your caravan and holidays to be essential but the fact remains that you are nearly £400 short per month for paying your bills. More if you include the missing items.

You simply cannot afford the £100 per month for the caravan sorry

With the figures being so tight you may need to go on a debt management plan and I don't think they will allow the caravan expenses.

Can you not sell it to help pay back some of the debt?

RAS

I assume then that the caravan is covered by the massive secured loan?

Sorry but you simply cannot afford £900 per month, a whacking £10,800 per year to cover your holidays. On a massively depreciating "asset".

That is cost much more than your home.

pennypusher

Hi you are showing a shortfall of £374 per month, even if you save £150 per month on groceries you are still going to be short. You say the caravan is essential but unless you get some more money I don't see how you can afford it. If you did get rid of it you would also be able to save money on petrol. It is definitely nice to have but I don't see how you are going to get the figures to balance with it.