Trying but failing

richs_3

Hi everyone!
Please be nice - I'n new and also have just had the 'lightbulb moment' so feeling fragile (but determined to move forwards).

Situation: Homeowner but with cc debt and unsecured loan debt that is crippling me. Have managed by just paying interest but cc at limit and don't know what else to do.

SoA

INCOMINGS

Salary: 2204

OUTGOINGS
Mortgage: 321 (Halifax - paying interest only)
Loan:232 (santander - 24mths left at this fixed rate)
Electric/Gas: 32 (combined fuel discounted rate DD)
Water: 50 (Southern Water approx. Quarterly bill-metered)
Sky: 40 (now cancelled)
BT: 47 (monthly - credit in account so now on payment hol till Nov)
Vodafone: 30
Insurances: Car: 40 (DD Hastings)
Buildings:200 annually
Mortgage/Life: 31 (LV Life monthly)
Petrol:90
TV license-12
Union fees:160 (paid quarterly)
Food:200
Travel:100

I have already cancelled non-essentials and tried cutting costs as advised in other strands on here. I know I should be able to manage but am struggling and now things at a head. Just about to miss first ever payment on CC to MBNA - phoned them to ask for help but they refused saying my spending was on non-essentials so it was my own fault and I wasn't eligible for rate-cut or help.They did change my payment date to 1st instead of 24th month which should help budget better in future. Constantly living in my overdraft (A+L -1500).

Have looked to consolidate by borowing on mortgage but can only borrow 80% LTV on existing deal (= another 5000) and deal rate would go up so not worth it I don't think. Have put house on market and if it sells I'll be debt free but no longer homeowner .
I am aware my debt is my fault, I don't intend to try and shirk it. I want options for how to manage what there is and get out of this please.

ithomso1

Hi there Richs

First of all congratulations for the lightbulb moment!

I think what might be better is looking at a more detailed SOA provided on this site. As i Don't believe that the expenditure has added up to your income ? Its also easier to break it all into monthly figures instead of Annual/Month all one one sheet.

Many Thanks

NorthernLas

Link for standard SOA for MSE http://www.makesenseofcards.com/soacalc.html

Wannabe01

Hi and welcome to the site.

I have added some comments to your SOA hope it helps a bit.

richs wrote: »

Hi everyone!
Please be nice - I'n new and also have just had the 'lightbulb moment' so feeling fragile (but determined to move forwards).

Situation: Homeowner but with cc debt and unsecured loan debt that is crippling me. Have managed by just paying interest but cc at limit and don't know what else to do.

SoA

INCOMINGS

Salary: 2204

OUTGOINGS
Mortgage: 321 (Halifax - paying interest only)
Loan:232 (santander - 24mths left at this fixed rate)
Electric/Gas: 32 (combined fuel discounted rate DD)
Water: 50 (Southern Water approx. Quarterly bill-metered)
Sky: 40 (now cancelled)
BT: 47 (monthly - credit in account so now on payment hol till Nov)
Vodafone: 30
Insurances: Car: 40 (DD Hastings)
Buildings:200 annually Is it possible to get cheaper
Mortgage/Life: 31 (LV Life monthly)
Petrol:90 Can you reduce this at all?
TV license-12
Union fees:160 (paid quarterly)
Food:200 How many are you feeding on this budget? I don't even spend as much as this on 2 adults and a child.
Travel:100 Is this essential travelling? Can it be reduced in any way?

bottleofred

Hi Richs and welcome to the forum,

I've never had anything but helpful advice on this forum so don't worry. I've counted up what you've got on your SOA and including the quarterly union fees, it appears you pay out just over £1500 per month, which in theory should leave you with around £700. However, as you have not put your credit card payment on this, you may want to think if you've missed anything on the SOA. You've cancelled the sky which is good, but despite having a holiday, £47 a month for BT seems expensive. Your mobile phone bill is quite high also, as a pay as you go would cost approximately £10 per month. Have a think about anything else you pay out and if there is not that much you should start a spending dairy to see exactly where your money is going. The consumer credit counselling service can assist with template letters and advice etc to send to your creditors such as MBNA etc. Someone else will be along soon with more advice/knowledge than me.

Good luck in getting sorted

richs_3

Thanks so far - helpful - am currently planning on a day of phonecalls tomorow to sort/reduce some of the bills as suggested.

Some more info - I forgot council tax @73 per month (incl single discount)

The food bill is too much - added up from bank statemnt incorrectly - should be 100.
The BT is for calls and broadband package - will investigate reducing it more.
Travel is not poss to reduce anymore - live in isolated area so costs for bi-monthly ferry/train are unavoidable.

Have got the day off tomorrow so writing a plan of action and will sort out that detailed SoA to add here as an update.
Thanks again

Tixy

Hi Rich and welcome

Sorting out a detailed SoA should help you see the full picture, it might remind you of costs you have forgotten about.
Another really useful thing for you will be a spending diary for a couple of months to track everything you spend, often its those little amounts (newspaper, lottery ticket, can of pop) that add up to the money we think we should have spare each month.
Either use a spreadsheet, notebook or spendingdiary.com - whichever you think you will most likely keep up to date.

Just whilst you sort things out this letter should help you hold off creditors for a month - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52 (NB if you have a current account/ overdraft with the same bank as your credit cards suggest you set up a new bank account ASAP to move your wages into so they don't take you payment automatically)