I have been refused 0% credit card and need help to sort out our finances please.

poohbear59

We managed to get our debt to zero and have now increased debt to almost unmanageable levels.

All the borrowing has been to convert our derelict barn into a holiday let. It will bring in enough money to cover the payments once let.

The major problem is that I have all the debt in my name, except the loans which are in joint names, and now when I try to get another 0% credit card I am being refused. DH has just applied for a Santander card and been given £1000 credit only. We wanted to transfer some of my debt that has come to an end on 0% to his card.

I am seeing a business advisor next week and hope to get a business account in my name. The business plan is being written at the moment too. The major problem we have is managing the debt and also gaining more credit to complete the build.

The building society won't lend us any more as they use our present earnings for calculation.

I am on IB but hope to be able to work again soon. The jobcentre are helping me with the business plan.

We also have three sons who are all students who live here during holidays. We fed them in exchange for work on the barn and garden. We have paired spending down as low as we can manage. If we were able to continue moving debt around to 0% cards things would have been easier.

Can anyone give me advice on where to look next or how to sort out my debts, please?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 5
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 313
Partners monthly income after tax....... 1848
Benefits................................ 439
Other income............................ 0
Total monthly income.................... 2600

Monthly Expense Details
Mortgage................................ 495
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 72
Gas..................................... 10
Oil..................................... 70
Water rates............................. 18.32
Telephone (land line)................... 30
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 22
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18
Pet insurance/vet bills................. 20
Buildings insurance..................... 84.9
Contents insurance...................... 0
Life assurance ......................... 52
Other insurance......................... 30
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 0
Total monthly expenses.................. 1542.22


Assets
Cash.................................... 400
House value (Gross)..................... 500000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 1000
Total Assets............................ 501900


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 80000....(495)......3
Total secured & HP debts...... 80000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Co-op loan.....................10066.....174.......7.9
Brittania loan.................10000.....153.......7.9
Tesco cc.......................3594......107.......14.9
Co-op visa.....................6790......136.......16.9
PO cc..........................2800......68........0
Lloydstsb......................950.......19........4.9
Virgin cc......................2800......25........0
Total unsecured debts..........37000.....682.......-


Monthly Budget Summary
Total monthly income.................... 2,600
Expenses (including HP & secured debts). 1,542.22
Available for debt repayments........... 1,057.78
Monthly UNsecured debt repayments....... 682
Amount left after debt repayments....... 375.78

Personal Balance Sheet Summary
Total assets (things you own)........... 501,900
Total HP & Secured debt................. -80,000
Total Unsecured debt.................... -37,000
Net Assets.............................. 384,900

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

misscousinitt

Hi

How much is it going to take to finish the Barn?

Your SOA shows a surplus of £345 per month - do you have this? Would it be better to use your surplus doing up the Barn instead of taking out more credit?

Internet/TV/Landline - could these be combined or reduced to get a better deal?

Insurances seem high - have you shopped around? Car Maintenance also seems high...

The things I have mentioned may not make much difference in the short term as it all depends how much money you need to complete the barn and get some return on it.

Sorry couldn't be much help - there's bound to be someone along soon who can help.

Good luck.

poohbear59

misscousinitt wrote: »

Hi

How much is it going to take to finish the Barn?

To finish and fit it out about another £15000

Your SOA shows a surplus of £345 per month - do you have this? Would it be better to use your surplus doing up the Barn instead of taking out more credit? We are using the surplus to pay for materials to finish the barn but it is not nearly enough.

DH has a job ATM which is giving us the surplus for this and last month. Fingers crossed he will find something else soon

Internet/TV/Landline - could these be combined or reduced to get a better deal? I will look at internet and phone combinations as we have those separate ATM. TV is no good as we live in the sticks.

Insurances seem high - have you shopped around? Car Maintenance also seems high... yep, shopped around but because of claims made couldn't get it cheaper:(

Car is the pits but DS3 will be home soon and he can do car repairs:)

The things I have mentioned may not make much difference in the short term as it all depends how much money you need to complete the barn and get some return on it.

Sorry couldn't be much help - there's bound to be someone along soon who can help.

Good luck.

Thank you, You have spurred me on to sort out the phone/internet to save money. I am also thinking of giving up my mobile as it costs about £20 a month. I never use the minutes or texts available to me.

Tixy

Have a look here to start http://www.moneysavingexpert.com/phones/home-phone-calls

Plus your B&C looks high (even considering the value of your house), have you shopped around for that? and Life insurance? and whatever other is?
Again you should find articles/tips for all of them here - http://www.moneysavingexpert.com/insurance/

Is there any way to finish the holiday let cheaper? or if its going to be more than 1 unit finishing one off so you can start getting some money in?

Any chance you could switch to interst only mortgage for a while (not usually advisable but in your situation would be a possible help).

Also check gas & elec are the cheapest suppliers - your elec looks quite high but maybe some is to do with the renovation. But if you haven't switched in 18months or so you might be able to get a better deal. Oil looks expensive as well would there be anyway to reduce the cost of this (do you have one of those schemes nearby where you and neighbours all buy oil together and get a bulk purchase price/discount).

You could switch to a PAYG mobile and just top up when you need.

poohbear59

Tixy, we did think of using freegle/freecycle for some of the furniture but are not sure if it is allowed for a business. Since you replied I have had a look on ebay too. I may be able to find cheaper bedroom furniture there. The heating system is going to be the greatest cost and we are trying to move away from oil and electricity for the barn. In the long run we know it will save us money. I have posted a few questions on another thread.

We have considered moving our furniture in from the house and living without until we can afford to buy. That way we could let the place sooner:D

I think I have decided to go for a PAYG phone, thanks for the ideas.

The other insurance is for HSA to cover dental optical etc and ATM we are getting more back than we pay in so it is working for us.

I did follow all the guidance about insurance around last Autumn but maybe I need to try again. I haven't insured the barn yet but I should do soon as it has become a cottage rather than a derelict building.

I checked the oil and elec and we still have the cheapest we can get here:( We buy oil with the neighbours too.

We have just bought 13 tonnes of wood for the wood burner to cut down on oil costs this coming Winter.

Ames

I don't see why you can't use freegle for a business, I wouldn't mind if the stuff I'm giving away went to one, although I'd prefer it if they were upfront.

If the heating's the main thing could you just get some plug in electric heaters for a few months, the electric bills will be high but you'll be making some money from them, and in summer they shouldn't need a lot of heating. Between what you can let them for and your £300 surplus it shouldn't take too long before you make enough to finish it all.

Ames

Or another option would be to go to auctions for furniture, there's someone on the notice to newcomers thread who goes to them a lot and gets some real bargains, and older furniture would probably fit well with a barn conversion, you can call it 'character' lol.

poohbear59

I just noticed I have put £40 for holiday that should have been in the row beneath for emergencies.

The £50 a month for car repairs goes into a savings account each month so it is there when we need it. It is down to about zero at present:)


Ames, maybe if I told people offering things on Freegle that it was for the barn and let them decide. I like the idea of electric heating for now but I doubt DH will agree.

poohbear59

Ames I hadn't thought about auctions. I will have a look on here and see if I can find someone who goes to them. I think I would need advice before I took the plunge:D

I am disabled but I reckon DD and maybe DSs would go with me.

Tixy

Well there is probably a seperate board that auctions should come under but 3dogs (who Ames was referring to) goes to loads and I'm sure could give you a beginners guide - she certainly gets good deals, I'll ask her to take a look across here.

Marisco

And you could always get your three lads to do a spot of renovation on the furniture i.e sanding and painting etc;)