A little help? Be as harsh as you like - i'm desperate!

muppetx

Okay, here is my story, first time poster but be as harsh as you like, I need to get out of this mess and am willing to do anything.

Got married last year, I had no debt, but no house and no savings. Husband got a lovely house, but 15k debts. We cut back everything we could think of, then worked out a plan to be debt free in no time, with two wages wasn't going to be a problem. HOWEVER!

I got pregnant, spent the first 6 months in hospital, sick pay Finally got back to work and planned to work until my due date however had the baby 2 months early! (she is fine now btw!) So instead of 2 months wages, I started maternity pay early and spent 2 months travelling 50 miles every day to see my baby.

This is the position we are in now:

Husband Me
Income
Wages 1392.00
Maternity Pay 484.57
Tax Credits 84.54
Child Benefit 81.20
Bank Reward 5.00
Total 1397.00 650.31

Direct Debits
Mortgage 535.69
Electric & Gas 89.00
Council Tax 132.00
Sky 11.50
Car Loan 243.98
Orange - Landline 16.85
Orange Mobile 40.00 25.00
Sofa Loan 59.09
Home Insurance 14.95
Life Insurance 11.23
Dog Insurance 18.39
Contents Insurance18.49
TV Licence 10.87
Gas Care 15.25
Baby Savings 10.00
Bank Charges 12.50

Expenditure
Petrol 120.00
Food Shopping 200.00
Credit Card 100.00 250.00
Total 1329.79 605.00

Surplus/Deficit 67.21 45.31



Credit Cards
Paul 3500
Jenny 3000

Family Loan 6000

I hate being debt, have never done it in my life. Makes me so sad. I am willing and able to get back to work, but can't earn more than i am getting in maternity pay without using a child minder which wouldn't be worth it. Have made £150 on e-bay this month and £90 at a car boot which will go straight to credit card.

HELP ME!!!!!

bargainbetty

I would start by doing a proper statement of affairs using the sticky notes at the top of the forum, which will break it down further and really show the money leakage.

Initially though, look at combining your building/contents insurance - you could probably halve this. Reduce your phone contracts (it's worth asking). What are the bank charges? If it is a monthly charge, ask to swap to a basic account without charges or have a really good look at the benefits you would get from it and see if you can use them.

Check all your insurances (dog costs seem high) but your overall food bill could probably not come down too much. What is the Gas Care? That seems high, unless you get a lot of work done.

Best of luck
x

lesalanos

hi and welcome,

is there any chance that you could fill in the common soa... its a lot easier to read and digest.

there willbe lots of great advice coming and loks like there are already some bits that can easily be cut on phone, sky, insurance etc

muppetx

any better? forgot to say house is also up for sale, has been for 3 months, hoping to move to a smaller property, but no interest in our house yet

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................ 484.57
Partners monthly income after tax....... 1392
Benefits................................ 165.74
Other income............................ 0
Total monthly income.................... 2042.31

Monthly Expense Details
Mortgage................................ 535.6
Secured/HP loan repayments.............. 310
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 132
Electricity............................. 89
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 16.85
Mobile phone............................ 60
TV Licence.............................. 10.87
Satellite/Cable TV...................... 11.5
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 18.5
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................. 18.39
Buildings insurance..................... 14.95
Contents insurance...................... 18.49
Life assurance ......................... 11.23
Other insurance......................... 15.25
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1637.63


Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 109000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79000....(535.6)....5.39
Hire Purchase (HP) debt ...... 8000.....(310)......0
Total secured & HP debts...... 87000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC 0% for 10 months............3500......80........0
CC 0% for 10 months............3000......60........0
Family Loans...................6000......0.........0
Total unsecured debts..........12500.....140.......-


Monthly Budget Summary
Total monthly income.................... 2,042.31
Expenses (including HP & secured debts). 1,637.63
Available for debt repayments........... 404.68
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 264.68

Personal Balance Sheet Summary
Total assets (things you own)........... 109,000
Total HP & Secured debt................. -87,000
Total Unsecured debt.................... -12,500
Net Assets.............................. 9,500

RAS

So do you have iover £250 available for debt repayment each month?

lesalanos

muppetx wrote: »

any better? forgot to say house is also up for sale, has been for 3 months, hoping to move to a smaller property, but no interest in our house yet

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................ 484.57
Partners monthly income after tax....... 1392
Benefits................................ 165.74
Other income............................ 0
Total monthly income.................... 2042.31

Monthly Expense Details
Mortgage................................ 535.6
Secured/HP loan repayments.............. 310
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 132
Electricity............................. 89
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 16.85... does this include any calls?
Mobile phone............................ 60 ..high.. what contracts are you on? can you reduce?
TV Licence.............................. 10.87
Satellite/Cable TV...................... 11.5..get rid of this if you are out of contract
Internet Services....................... 0
Groceries etc. ......................... 200..seems good
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 18.5
Car maintenance (including MOT)......... 0..need something here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 18.39
Buildings insurance..................... 14.95
Contents insurance...................... 18.49
Life assurance ......................... 11.23
Other insurance......................... 15.25
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1637.63


Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 109000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79000....(535.6)....5.39
Hire Purchase (HP) debt ...... 8000.....(310)......0
Total secured & HP debts...... 87000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC 0% for 10 months............3500......80........0
CC 0% for 10 months............3000......60........0
Family Loans...................6000......0.........0
Total unsecured debts..........12500.....140.......-


Monthly Budget Summary
Total monthly income.................... 2,042.31
Expenses (including HP & secured debts). 1,637.63
Available for debt repayments........... 404.68
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 264.68

Personal Balance Sheet Summary
Total assets (things you own)........... 109,000
Total HP & Secured debt................. -87,000
Total Unsecured debt.................... -12,500
Net Assets.............................. 9,500

this SOA shows that you have £264 left each month after payng debts but assume that this is wrong. do you know where this goes to?

muppetx

This money also goes to the debts, every penny left before payday goes to debts. Only minimum amount needing paid in calculator.

gonzo127

muppetx wrote: »

any better? forgot to say house is also up for sale, has been for 3 months, hoping to move to a smaller property, but no interest in our house yet

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................ 484.57
Partners monthly income after tax....... 1392
Benefits................................ 165.74 - double check you are getting everything you should be using the entitled to website
Other income............................ 0
Total monthly income.................... 2042.31

Monthly Expense Details
Mortgage................................ 535.6 - interest only or repayment
Secured/HP loan repayments.............. 310
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 132 - paying over 10 months or 12?
Electricity............................. 89 - check you are with the cheapest supplier
Gas..................................... 0 - no gas?
Oil..................................... 0
Water rates............................. 0 - no water?
Telephone (land line)................... 16.85
Mobile phone............................ 60 - check how many mins and texts you are using and then contact supplier to find out if you can change to a more suitable tarrif - worst they can say is no
TV Licence.............................. 10.87
Satellite/Cable TV...................... 11.5
Internet Services....................... 0
Groceries etc. ......................... 200 - not bad could save a little here i expect i usualy say to aim for £60 per person per month
Clothing................................ 0 - probably need a bit here even if only for the child
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 18.5
Car maintenance (including MOT)......... 0 - need some here 'just in case'
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 18.39
Buildings insurance..................... 14.95
Contents insurance...................... 18.49 - look at combining your home insurances to see if you can save money
Life assurance ......................... 11.23
Other insurance......................... 15.25
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0 - i would always recommend something here to allow you to cover any white goods should they die
Total monthly expenses.................. 1637.63


Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 109000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 79000....(535.6)....5.39
Hire Purchase (HP) debt ...... 8000.....(310)......0
Total secured & HP debts...... 87000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC 0% for 10 months............3500......80........0
CC 0% for 10 months............3000......60........0
Family Loans...................6000......0.........0
Total unsecured debts..........12500.....140.......-


Monthly Budget Summary
Total monthly income.................... 2,042.31
Expenses (including HP & secured debts). 1,637.63
Available for debt repayments........... 404.68
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 264.68 - do you actually have this?

Personal Balance Sheet Summary
Total assets (things you own)........... 109,000
Total HP & Secured debt................. -87,000
Total Unsecured debt.................... -12,500
Net Assets.............................. 9,500

ok i have made some comments i think you are missing a few bits out of your budget however as it stands you should have quite a bit left after all your payments and monthly outgoings, so the question is - do you have this? - i am guessing not so the best thing you can do is a spending diary.

basically get a little note book and pen and write down EVERYTHING that goes out of your account on what it was spent on from a 10 pence newspaper to a £50 treat this should allow you to spot areas of spend you dont even realise you have.

you can also do a retrospective one wher eyou will need to go through last months bank statement of you and your partner and do the same marking down what each 'spend' was for and then totaling up the items

muppetx

Benefits - CB and TC not entitled to anything else.
Council Tax - 10 months, includes water rates?!
Mortgage - Repayment
Gas/Electric (combined) - Just changed to cheaper supplier, pay both together with 1 DD)
Mobile - Will phone them!
Groceries - Will try!
Clothing - In lucky position of been given enough clothes for her to see her through first year...this will change!
Insurances, these were duw when baby was in the hospital (Feb) we just renewed them without checking, i know they could have been done cheaper. Could we cancel and take out new policies now?
Emergencies - Come out CC repayment money if there are any in month, pay CC with money left before next pay day. Should we still have a savings accoount do you think?

Hate living like this.

Thanks so much for comments so far, trying to type with baby on lap, excuse typos! thanks

muppetx

p.s since March we have not spent a penny on extras such as papers/takeaways etc outside the £200 groceries budget. We really are trying. Debit cards not used outside of budget. Anything like birthdays/fathers day cards and pressies have been bought when we have sold something on e-bay or carboot pennies.

muppetx

Phoned about mobiles, we only get the house phone (free evening and w/e calls) and internet at that price because of the 2 mobile contracts we have. So no reduction there. (With orange, think 16.95 is quite good for all that inc line rental?)