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

NorthernLas

Should the caravan be listed as an asset?
Can you get extra income by renting it out?

Is the debt secured or HP and how long will it run for?

If you can reduce your shopping, will help with your shortfall, but not enough

Could you keep a spending diary to see how accurate your estimates are? it also helps to make you think do you need to spend and helps you spot things you forgot?

bigt1888

the loans are all unsecured and only one of them is related to the caravan with monthly costs of £150 remaining balance approx £8000 caravan value approx £8000

the others are loans that i took out around three years ago (£20000 for a house extension and £10000 to clear off older loans and cards) as well as the hp for the car

RAS

Hi

You need to separate out the secured and unsecured loans in your SOA and to list the caravan as an asset. Click the edit button and you can alter your SOA.

Obviously you have been living beyond your means for some time, as the consolidation loan three years ago and the £10K unsecured recent debt suggesst that you have been spending at least £3k per year more than you earn.

You do need to work out whaen you can return the car that is on HP (aND CHECK THAT IT IS HP NOT A LOAN MASQUERADIGN AS HP) soory re caps.

bigt1888

hi northern las

you are probably right the caravan should be listed as an asset

it is financed and i belive it is secured against the caravan itself. it has 4yrs to run.

thanks very much for your post i really appreciate the fact that you seem so genuinely constructive which is a massive help ayt the moment!!!!

i will take your advice and start a spending diary immediately as i think on reflection that some of my figures on ths SOA are a bit out so i want to accurately get a grasp on the real figures before i get too depressed!!!!!

once again thanks to everyone who has replied som far as you have all given me food for thought and inspired me even more tlo get this mess sorted!!!!

bigt1888

hi RAS

how do i alter the original SOA or do i redo the SOA from scratch?

theoretica

You have 2838 income. From this you have to pay 717 mortgage, 116 council tax, 820 secured loan 262 unsecured loan, 260 child maintenance (I assume, from the first post), 39 life insurance. This gives you 624 to divide up over the rest of your life- utilities, cars, groceries, home and contents insurance, telephone, pets... these currently add up to 1141, without the caravan, so you need to halve your spending. This will be very hard, but is possible. However, I simply can't see how you can keep the caravan- sorry.

If the secured loan is on the caravan and you can clear most of this by selling it then everything will be easier for you and I am sure you will find some other means of relaxation.

RAS

bigt1888 wrote: »

hi RAS

how do i alter the original SOA or do i redo the SOA from scratch?

Ahh. If you are shifting secured and unsecured debts, they come under different totals.

Either do it manually, then click edit in post 5 and alter that.

or re-dot the SOA on senseofcards, then copy, click edit and paste the new SOA in.

richardvc

Welcome to MSE, the folks here are friendly, knowledgable and extremely practical. They will tell you how it is so please don't be offended as it is meant with the best intentions. They certainly helped me on my journey to becoming debt free so have belief that it can be achieved.

But I am going to start with the bad news and I hate to say it, but the caravan has got to go.

You are spending more than you earn which gives you two choices - earn more or spend less. Every day that this isn't addressed then you are losing money.

The real experts will be on their way soon and good luck on your journey.

bigt1888

updated SOA think i have it right this time but cant be sure..... its so much to think about seeing it all written down for the first time!!!

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.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 80
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 17
Mobile phone............................ 27
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 40
Car Insurance........................... 70
Car maintenance (including MOT)......... 10
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..................... 0
Contents insurance...................... 13
Life assurance ......................... 39
Other insurance......................... 17
Presents (birthday, christmas etc)...... 30
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 100
Emergency fund.......................... 0
child maintenance....................... 240
Total monthly expenses.................. 2331


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 8000
Total Assets............................ 139000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94500....(717)......0
Total secured & HP debts...... 94500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
personal loans.................34000.....670.......0
caravan loan...................8000......156.......0
credit cards...................10000.....254.......0
Total unsecured debts..........52000.....1080......-


Monthly Budget Summary
Total monthly income.................... 2,838
Expenses (including HP & secured debts). 2,331
Available for debt repayments........... 507
Monthly UNsecured debt repayments....... 1,080
Amount short for making debt repayments. -573

Personal Balance Sheet Summary
Total assets (things you own)........... 139,000
Total HP & Secured debt................. -94,500
Total Unsecured debt.................... -52,000
Net Assets.............................. -7,500

RAS

You need the APRs on those loans and cards. They look horrendous.