Increasing Debt - advice on what to to

miket1964

Here is my statement of affairs as done on the website link - I have downloaded info from National Debt line.
In reality my biggest killer is cash flow into my business, late payments mean that I pay myself wages late etc etc.
My business is owed £2332 to date - reminders sent. And then another £1130 is due on the 30th, no one pays on time ever, no matter what you do.
Also certain costs are through the business, internet, running of car, etc as this is offset against tax when my account are done.

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.................... 1

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 450
Benefits................................ 125
Other income............................ 0
Total monthly income.................... 2075

Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 102
Electricity............................. 92
Gas..................................... 60
Oil..................................... 0
Water rates............................. 48
Telephone (land line)................... 40
Mobile phone............................ 0
TV Licence.............................. 10
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
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................. 10
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 26
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1570


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 124000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 114000...(550)......0
Total secured & HP debts...... 114000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Cap One........................5615......250.......23.9
RBS............................2423......60........19.94
Egg Card.......................1153......35........0
Barclay Card...................2444......60........24.9
Total unsecured debts..........11635.....405.......-


Monthly Budget Summary
Total monthly income.................... 2,075
Expenses (including HP & secured debts). 1,570
Available for debt repayments........... 505
Monthly UNsecured debt repayments....... 405
Amount left after debt repayments....... 100

Personal Balance Sheet Summary
Total assets (things you own)........... 124,000
Total HP & Secured debt................. -114,000
Total Unsecured debt.................... -11,635
Net Assets.............................. -1,635

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

NorthernLas

Mike - Your SOA suggests that you can meet your payments with a little spare, but without the added complication of cashflow...

One area that could be reduced is shopping - people on the Old Style board cook for about £60 pp a month. Another thing is that you don't appear to have any children's expenses - do they go to after school club or activities?

Maybe you and OH could both keep spending diaries for a short time to see where the shopping and other money goes. At least then you will know if your SOA is accurate. Could you arrange the shopping to to a big shop on one of the weeks when your cards don't come out, or adjust the payment dates on the cards.

WRINKLES

miket1964 wrote: »

Hi
The Cap One and Sky (now Barclays) are the oldest I have had those two a long while, I would say before 2007. What does this imply?

Have a look at never in doubt s unenforceability thread , on debts pre april 2007.

miket1964

Hi Northern Lass
We cook our own meals, I don't and won't eat ready meals or cheap unhealthy food. We are aiming at £400 per month thats £25.00 per week each for the four of us.
To stop us using the debet card, oh and I forgot to mention we are 1000 overdrawn with our bank, we have decided to withdraw the cash in one lump sum and have that as a shopping fund to make us keep to the budget over the month.
I didn't put in incidental, non regular expenses.
Finally the Cap One card is the biggest amount, if I try and sell the car and buy something cheaper, this would raise around 2.5K, would it be better to reduce the cap one balance or pay off one of the other cards in full.

NorthernLas

Mike -

It is great that you are planning to knock £100 off your monthly grocery bill. Cheap food does not neccessarily mean unhealthy though. E.g. you are unlikely to notice the difference between own brand tomatoes and premium brand, but the price will be different. Also, if you do then go back to the premium brand.

If you are overdrawn, this needs to go into your SOA. The idea is to get this as accurate as possible.e

Re. Re credit cards, I guess you should pay the one with the highest interest. If you pay one off completely you may get a low life balance transfer but I don't have experience with this, sorry.

[You could even put the cash a bank account and use it to pay minimums on all of your cards and giving you a cushion until business picks up - not MSE but an option]