help needed

darwins_mum

It is the day after my 43rd birthday, and am now ready to grab the debt devil by the horns.
my personal circumstances are as follows:
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I have a mortgage of £97k, property currently worth £105k.
I am only paying the interest, currently £200 pcm and have no arrears.
I owe £10k on a personal loan to Lloyds TSB. I currently pay £100 pcm, interest is currently frozen, last month I struggled to pay this, so made a token payment of £1 as my outgoings were horrendous, major repairs needed to the car and a broken fridge freezer.

£2,030 overdraft with Lloyds tsb, interest not frozen and the amount outstanding is over the agreed limit. Currently repaying this at £25 per month, struggled to pay this last month.

£300 overdraft with Lloyds, repaying £25 per month. Still accruing interest.
£300 to a previous energy supplier, currently being repaid at £20 a month.
I am Working on a week to week basis, earning approx £300 a week, if I am lucky but only £190 on a bad week.
Tax credit approx £200
Monthly outgoings total around £900.
my soa seem to change monthly, and things have spiralled out of control, it is impacting on my relationships with family members, affecting my sleep and ability to perform at work.


My savings depleted after a 3 month period of unemployment due to ill health, so am feeling very insecure without a cushion.


I have frozen my pension contributions due to affordability. If I were to re-establish these, would they be viewed as a priority expenditure when submitting income and expenditure details as part of a financial proposal to creditors?

Given the insecure nature of my employment, and levels of unsecured debt, I am at a loss as to the best way to proceed and what arrangements would work best for me. IVA or DMP?

Any advice great fully received, the strain of managing my finances is starting to take its toll.
DM
:mad:

isy1011

Dont despair. There is always something that can be done and someone who can help.

Can you post some sort of SOA that is possibly an average one for people to see if savings/ gains can be made anywhere?

NorthernLas

Use this format for the SOA http://www.makesenseofcards.com/soacalc.html

Format for MSE and post back to this thread (you will need to delete the link at the end)

A good source of info on debt options can be found on the national debtline website

DVardysShadow

Get yourself a basic bank account away from Lloyds and anyone else you owe money to and put your income and spends there. It looks like you are going to start defaulting and Lloyds will use the right of offset to take any credit balance from your current account

darwins_mum

I opened a new bank account last year with HSBC, after lloyds used the right to offset when I missed my first loan repayment, my benefit and salary go in there. I have pared down spending to a bare minimum and cant see where to make any further savings.


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 900
Partners monthly income after tax....... 0
Benefits................................ 300
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 25
Gas..................................... 127
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 17
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 24
Groceries etc. ......................... 120
Clothing................................ 30
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 52
Car maintenance (including MOT)......... 25
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 30
Other insurance......................... 17
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 220
Total monthly expenses.................. 1339


Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 107000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(200)......0.05
Total secured & HP debts...... 97000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10000.....386.......0.16
overdraft......................2090......75........0
overdraft......................390.......25........0
Total unsecured debts..........12480.....486.......-


Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 1,339
Available for debt repayments........... -139
Monthly UNsecured debt repayments....... 486
Amount short for making debt repayments. -625

Personal Balance Sheet Summary
Total assets (things you own)........... 107,000
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -12,480
Net Assets.............................. -2,480

katsu

darwins_mum wrote: »

I opened a new bank account last year with HSBC, after lloyds used the right to offset when I missed my first loan repayment, my benefit and salary go in there. I have pared down spending to a bare minimum and cant see where to make any further savings.


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 900 is this the lowest monthly figure or an average of some kind?
Partners monthly income after tax....... 0
Benefits................................ 300 have you checked you are getting all the benefits you are entitled to? Try the entitledto website or citizens advice
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 80
Electricity............................. 25
Gas..................................... 127 are you heating the street? :eek: Turn thermostat down, have gas on for less hours a day, check for estimated bills, check comparison sites for a better deal.
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 17
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 24 you can get it for £7.50 from )2, def. better deals out there. Shop around
Groceries etc. ......................... 120
Clothing................................ 30
Petrol/diesel........................... 150 cut out non-essential journeys
Road tax................................ 20
Car Insurance........................... 52
Car maintenance (including MOT)......... 25
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30 what is this? can you reduce it?
Medical (prescriptions, dentist etc).... 20 can you get a pre-payment certificate or similar?
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 30
Other insurance......................... 17
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20 get it done by college students for less
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 220???? are you really saving this??? stop now.
Total monthly expenses.................. 1339


Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 107000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(200)......0.05
Total secured & HP debts...... 97000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10000.....386.......0.16
overdraft......................2090......75........0
overdraft......................390.......25........0
Total unsecured debts..........12480.....486.......-


Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 1,339
Available for debt repayments........... -139
Monthly UNsecured debt repayments....... 486
Amount short for making debt repayments. -625

Personal Balance Sheet Summary
Total assets (things you own)........... 107,000
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -12,480
Net Assets.............................. -2,480

I've given some comments. Do you have to pay the monthly overdraft costs each month of £100?

Hope the above is some help.

Nottoobadyet

Are you sure you're getting all the benifits you're entitled to? Are you getting any CSA?

To be honest, you've done really well at cutting back and its going to be hard on such a low income.

Hannah_10

Before we even think about debt repayments your SOA shows you are over your means. I also notice it shows benefits and income as round numbers, rarely are they ever. So I need to ask, is this SOA an accurate reflection of what you are really receiving and spending over an average month in the current year?

I can find you the £139 you need to even get your income and expenditure to match in this SOA, but before I do... Am I looking at the right numbers?

tallyhoh

Assuming the car is paid for (is it?) you are still forking out approx £260 a month on it. Is there no cheaper transport?

darwins_mum

Hi all, thanks for taking the time to listen,
I have used an average monthly figure for my salary, as it varies depending on the amount of hours a week I work. some weeks I take home £400 others £150.
I use my car mainly for work, and get to reclaim my mileage at a paltry 40p per mile. I also have to take my son to his fathers twice a month which is a 90 mile round trip. I am looking into selling the car and buying something cheaper, which will hopefully save on fuel costs, insurance etc.
typo for the emergency fund, this should read £20 not £200!
currently tied into my current ISP for another 6 months, but will shop around then.
I am paying a previous provider £20 p/m for gas, and British Gas £97 reduced from £106, due to 6 months of estimated bills last year. this is due to reduce to £77 per month soon I think.
child related expenses are my sons violin lessons, not strictly a necessity, but there is so other little entertainmet at the moment, I am loath to let it go.

Hannah, I will post another SOA when I have trawled through my bank statements fully.
I am not sure if I can change my tax credits awards, as they informed me it was based on last years earnings, which were considerably more than I earn now.
The other panic is that I am due to finish my current contract in a few weeks and am at a loss as to how I will pay my priority debts, never mind LLoydsTSB!
just had lloyds tsb on the phone wondering where their money is, I am wondering too!
trying to keep my chin up and will post again in due course.

HappyMJ

If you are being reimbursed car expenses you then need to either not include car expenses or put down under Other Income the amount that your employer gives you. Forget about all the debts pay them £1 per month until you can get a proper SOA together then figure out what's left and they can each have a little. If that little is £1 per month then that's all they get.

Re: Housing...On your income is it worth owning a home. I don't think it is. You could sell up and rent. Housing benefit would then pay the rent as you are on such a low income. I don't believe you are only paying £200 towards the mortgage 5% on £97,000 is £400 per month interest only which on your wages is unaffordable. At 43 you should be on a full repayment mortgage. Are you claiming Council Tax Benefit?