i've got a debt problem and need help!

scheisse_strasse

Phew thats that bit out of the way, so i'm hoping this is the start of me digging myself out the mire and eventually into debt free heaven! (fingers and any other bendable parts crossed)

My problem the short version
I moved into my first house in 2007 with a 105% mortgage after taking advice from a financial advisor tieing me in for 5 years at a fixed rate.

Over the next two years the cost of living went up my wage didn't so i got in the situation of just getting by and if things went wrong borrowing on plastic to fill the gap. (mistake i know now)

Last year the company had a rubbish year and as a result 4 people lost there jobs, during this period i suddenly became aware i have no qualifications for the job i do and little chance of getting in the industry i wanted so i took on a distance learning course buy now pay later for 12 months thinking at least this would help in the long term better job prospects etc. the company made no more redundancies and are now financially secure.

So now the fee's for this course are looming in the next couple of months i have very little money and i've cut everything back, to the point of cancelling my sky £23pm and my gym membership £35pm ontop of that i've tried getting a loan to cover everything but been refused apparently cos my income and expenditure are too close, even though up to now my credit ratings been great.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1336
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1336

Monthly Expense Details
Mortgage................................ 576
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 58
Electricity............................. 28.5
Gas..................................... 28.5
Oil..................................... 0
Water rates............................. 15.5
Telephone (land line)................... 10.78
Mobile phone............................ 25
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 6.48
Groceries etc. ......................... 130
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 5.42
Bike Insurance........................... 40
Bike maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 32
Life assurance ......................... 8.99
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1097.29


Assets
Cash.................................... 0
House value (Gross)..................... 89500
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 91500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 99578....(576)......5.89
Total secured & HP debts...... 99578.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
egg............................5479.31...110.......19.9
clydesdale.....................5950......256.......29.9
FD.............................5400.78...128.5.....7.9
Total unsecured debts..........16830.09..494.5.....-


Monthly Budget Summary
Total monthly income.................... 1,336
Expenses (including HP & secured debts). 1,097.29
Available for debt repayments........... 238.71
Monthly UNsecured debt repayments....... 494.5
Amount short for making debt repayments. -255.79

Personal Balance Sheet Summary
Total assets (things you own)........... 91,500
Total HP & Secured debt................. -99,578
Total Unsecured debt.................... -16,830.09
Net Assets.............................. -24,908.09


So i'm asking for some help can anyone offer some good advice as all i get is get a DMP but i don't want to go down that route as i want to buy a house with my gf in the next couple of years (the only reason no sooner is to do with been tied into mortgages) and to my understanding this would do my credit rating plenty of harm. I feel i'm doing everything i'm able but it doesn't seem to be enough

Please help!

Thanks

DVardysShadow

£40/month on fuel, £400/month on insurance £300/month on maintenance and £65/month.

So you travel about 320 miles for a cost of £765 each month. About £2.50/mile? Use taxis, it's cheaper - or update your SoA.

linz

Hi,

Could you go PAYG on your mobile? Or drop to a cheaper tariff?

£130 a month on food isn't bad, but you could get this down. Slow cookers are good for winters, you could make 4 portions of, say casserole and eat one, freeze 3. Cheap and convenient at the same time.

What about not buying any new clothes for a few months? Or taking a look in your local charity shops instead? They have some nice stuff in them.

Buildings & contents you may get cheaper if you shop around.

Use cashback sites for anything you buy online.

HTH and good luck.

scheisse_strasse

linz wrote: »

Hi,

Could you go PAYG on your mobile? Or drop to a cheaper tariff?

£130 a month on food isn't bad, but you could get this down. Slow cookers are good for winters, you could make 4 portions of, say casserole and eat one, freeze 3. Cheap and convenient at the same time.

What about not buying any new clothes for a few months? Or taking a look in your local charity shops instead? They have some nice stuff in them.

Buildings & contents you may get cheaper if you shop around.

Use cashback sites for anything you buy online.

HTH and good luck.

The mobiles contract and i'm stuck for at least 12 months, the clothes I just put in as it asked for it i've been spending very little on them for months now, when i do budget brands. The slow cookers a good idea though could well help save some cash on the weekly shop, thanks

Linda32

Hiya, glad you to hear your not redundant, I got made redundant at the start of last month, and although I was reasonably pleased as I wasn't happy at all, sometimes its not very nice.

Shopping around seems to be the key, so I've commented on a few of the things I've noticed. Hope thats okay?

scheisse_strasse wrote: »

Electricity............................. 57 shop around see if you can get this cheaper, it seems alot, try Atlantic
Telephone (land line)................... 10.78 Try Primus if you are not lock in to any deal
Groceries etc. ......................... 130 This is very very good
Road tax................................ 65 This seems very very high, but if thats the cost then thats it.
Buildings insurance..................... 30 How much :eek: I've just renewed mine Shealias Wheels £63 for the year
Contents insurance...................... 32 As above about £4.00 a month with Swinton
Life assurance ......................... 8.99, About the same here, we pay £19.99 for both of us.
Other insurance......................... 27.5 What else is left
Gym..................................... 36.5 When I'm in work my council gym is £25.00 a month and £12.00 a year membership

Hope that helps

linz

http://direct.asda.com/Asda-Slow-Cooker/001545332,default,pd.html

Asda has one for £7. it's showing as out of stock at the mo, but instore may have them. Otherwise, maybe try TJ Hughes

niccatw

Hi

Your SOA looks very similar to mine in terms of earnings, mortgage and some of the outgoings. You'll see from my signature that I owe a bit more than you!

I didn't want to go down the DMP route so I sat down with my bank statements for the last year and scrutinised where I was actually spending. Then I started a spending diary. That helped immensely; so much was being frittered away on nonsesne!

I also decided I needed to get a second job whether I liked it or not. I've been doing that for 2 years now.

Luckily I have a spare room too, so I got a lodger (much as I would love to have my house back all to myself!).

I found the easiest thing to cut back was my grocery budget. I budget £80 per month, though I'm veggie so that might make it easier. I get a veggie box delivered to keep me out of the supermarket (tried online shopping too but had a hiccup, lost my entie trolley and took a huffy tantrum from which I've never recovered!)

But I also found I needed to budget in treats or I just freaked out and tumbled right off the wagon! My friend's are now used to me taking the car and drinking water all night long! :rotfl: (So when I do actually have a drink on a night out, I don't always get given the chance to pay my own way!) But I found out that I wanted to treat myself to a haircut ever couple 2-3 months, so I don't beat myslef up about that any more.

From your SOA, I'd be looking at the insurances you pay out. But the rest looks ok to me (my car is leased through work so I can't comment on the costs of that as I've no idea!).

Really, I need to be regularly doing my spending diary and checking my budget to keep me on track, otherwise I still find it very easy to spend more than I intended (hence I also do the No Spend Day (NSD) challenge and try to aim for 12 days a month where I don't spend a penny).

I'd also recommend having a look at some of the debt free diaries for inspiration!

Good luck

DVardysShadow

Road tax still down as £65/month.

MFWannabe

scheisse_strasse wrote: »

Phew thats that bit out of the way, so i'm hoping this is the start of me digging myself out the mire and eventually into debt free heaven! (fingers and any other bendable parts crossed)

My problem the short version
I moved into my first house in 2007 with a 105% mortgage after taking advice from a financial advisor tieing me in for 5 years at a fixed rate.

Over the next two years the cost of living went up my wage didn't so i got in the situation of just getting by and if things went wrong borrowing on plastic to fill the gap. (mistake i know now)

Last year the company had a rubbish year and as a result 4 people lost there jobs, during this period i suddenly became aware i have no qualifications for the job i do and little chance of getting in the industry i wanted so i took on a distance learning course buy now pay later for 12 months thinking at least this would help in the long term better job prospects etc. the company made no more redundancies and are now financially secure.

So now the fee's for this course are looming in the next couple of months i have very little money and i've cut everything back, to the point of cancelling my sky £23pm and my gym membership £35pm ontop of that i've tried getting a loan to cover everything but been refused apparently cos my income and expenditure are too close, even though up to now my credit ratings been great.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1336
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1336

Monthly Expense Details
Mortgage................................ 576
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 58
Electricity............................. 57
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15.5
Telephone (land line)................... 10.78
Mobile phone............................ 25 - Cut this down to a lower package; or go payg
TV Licence.............................. 12.12
Satellite/Cable TV...................... 23 - Should this be here; as you said above that you've cancelled?
Internet Services....................... 6.48
Groceries etc. ......................... 130 - Could cut this by £30
Clothing................................ 15
Petrol/diesel........................... 40 - Is this right? If so; do you really need a car?
Road tax................................ 65 - Is this right? This is a lot; what sort of car is it?
Car Insurance........................... 40
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30 - check comparison sites to see if you can get cheaper
Contents insurance...................... 32 - check comparison sites to see if you can get cheaper
Life assurance ......................... 8.99
Other insurance......................... 27.5 - What's this for?
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 0
Gym..................................... 36.5 - Should this be here? You said above that you've cancelled?
Total monthly expenses.................. 1248.87


Assets
Cash.................................... 0
House value (Gross)..................... 89000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 91000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 99578....(576)......5.89
Total secured & HP debts...... 99578.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
egg............................5479.31...110.......19.9
clydesdale.....................5950......256.......29.9
FD.............................5400.78...128.5.....7.9
overdraft......................400.......0.........0
Total unsecured debts..........17230.09..494.5.....-


Monthly Budget Summary
Total monthly income.................... 1,336
Expenses (including HP & secured debts). 1,248.87
Available for debt repayments........... 87.13
Monthly UNsecured debt repayments....... 494.5
Amount short for making debt repayments. -407.37

Personal Balance Sheet Summary
Total assets (things you own)........... 91,000
Total HP & Secured debt................. -99,578
Total Unsecured debt.................... -17,230.09
Net Assets.............................. -25,808.09


So i'm asking for some help can anyone offer some good advice as all i get is get a DMP but i don't want to go down that route as i want to buy a house with my gf in the next couple of years (the only reason no sooner is to do with been tied into mortgages) and to my understanding this would do my credit rating plenty of harm. I feel i'm doing everything i'm able but it doesn't seem to be enough

Please help!

Thanks

Hi
I've made some comments above; but i can't see where you can make £400 worth of cutbacks. Consider selling your car; if you're really only spending £40 a month on fuel do you really need it?
If you do need a car consider selling anyway and getting something cheap.
Consider getting a 2nd part time job or do you have a spare room you could rent out?

mum2one

scheisse_strasse wrote: »

Phew thats that bit out of the way, so i'm hoping this is the start of me digging myself out the mire and eventually into debt free heaven! (fingers and any other bendable parts crossed)

My problem the short version
I moved into my first house in 2007 with a 105% mortgage after taking advice from a financial advisor tieing me in for 5 years at a fixed rate.

Over the next two years the cost of living went up my wage didn't so i got in the situation of just getting by and if things went wrong borrowing on plastic to fill the gap. (mistake i know now)

Last year the company had a rubbish year and as a result 4 people lost there jobs, during this period i suddenly became aware i have no qualifications for the job i do and little chance of getting in the industry i wanted so i took on a distance learning course buy now pay later for 12 months thinking at least this would help in the long term better job prospects etc. the company made no more redundancies and are now financially secure.

So now the fee's for this course are looming in the next couple of months i have very little money and i've cut everything back, to the point of cancelling my sky £23pm and my gym membership £35pm ontop of that i've tried getting a loan to cover everything but been refused apparently cos my income and expenditure are too close, even though up to now my credit ratings been great.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1336
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1336

Monthly Expense Details
Mortgage................................ 576
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 58 - just a thought do you get single person discount, - could you ask to pay over 12 months
Electricity............................. 57 - guessing no gas, but this could be reduced, simple things like - if charging laptop / mobile phone etc - use the room ur in that way you can keep an eye on, don't leave on standby, turn lights off
Gas..................................... 0
Oil..................................... 0
Water rates............................. 15.5 - as theres just you would u be cheaper on a meter
Telephone (land line)................... 10.78
Mobile phone............................ 25 - if your contract ask if they will reduce, when contract up consider pay and go or cashback sites
TV Licence.............................. 12.12
Satellite/Cable TV...................... 23 - I know ur cancelling - at the mo its a luxury
Internet Services....................... 6.48
Groceries etc. ......................... 130
Clothing................................ 15
Petrol/diesel........................... 40
Road tax................................ 65 - are you sure thats right????
Car Insurance........................... 40 - at renewal - shop around
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30 - at renewal shop around- look at cashback sites
Contents insurance...................... 32 - ditto
Life assurance ......................... 8.99
Other insurance......................... 27.5 - is that payment protection etc????
Presents (birthday, christmas etc)...... 0 - you'd need some in here
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 0
Gym..................................... 36.5 - I appriciate you've cut that out
Total monthly expenses.................. 1248.87


Assets
Cash.................................... 0
House value (Gross)..................... 89000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 91000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 99578....(576)......5.89
Total secured & HP debts...... 99578.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
egg............................5479.31...110.......19.9
clydesdale.....................5950......256.......29.9
FD.............................5400.78...128.5.....7.9
overdraft......................400.......0.........0
Total unsecured debts..........17230.09..494.5.....-


Monthly Budget Summary
Total monthly income.................... 1,336
Expenses (including HP & secured debts). 1,248.87
Available for debt repayments........... 87.13
Monthly UNsecured debt repayments....... 494.5
Amount short for making debt repayments. -407.37

Personal Balance Sheet Summary
Total assets (things you own)........... 91,000
Total HP & Secured debt................. -99,578
Total Unsecured debt.................... -17,230.09
Net Assets.............................. -25,808.09


So i'm asking for some help can anyone offer some good advice as all i get is get a DMP but i don't want to go down that route as i want to buy a house with my gf in the next couple of years (the only reason no sooner is to do with been tied into mortgages) and to my understanding this would do my credit rating plenty of harm. I feel i'm doing everything i'm able but it doesn't seem to be enough

Please help!

Thanks

I've popped a few suggestions on, but not to the extent that u need to save at, could your gf move in with you,or have u a 2nd bedrm you get a friend to lodge.

scheisse_strasse

Hi guys,

Thanks for you input so far i've tried to address some points you've kindly raised below.

Yes i've got the single persons council tax discount, i've changes the values on gas and electric as its a combined bill of £57pm
Satellites cancelled, mobile phone i'm stuck with checked, gym's gone although i'm paid up till december and intend to use it, the road tax was wrong i've corrected my original post to reflect this sorry folks!

Someone mentioned home phone this is with talk talk as is my internet so i'm guessing if i moved to primus i would have to move internet provider too?

i'll try cutting back on shopping i have special dietry requirements and this doesn't help. but i am logging all my shopping expenditure for this month to see exactly how much i'm spending on what to see if there's more savings I can make.

the cars actually a bike i sold the car 6 months after buying the house to clear some other debts so the bikes been my only form of transport for 3 years I cycle to work but my gf lives 20 miles away and going anywhere else as family friends live a distance away so need the bike for that, plus its one of the few things i enjoy in life i would be heartbroken to let it go plus its the wrong time of year to sell what with winter on the horizon! Plus its eight years old and i do the maintainence on it myself to save the £40 an hour the dealer wants.

I can't really get a second job as i work full time and am studying in my spare time, a lodger might be a way to go so any advice or links to threads on this would be appreciated! I've checked and no one i know is looking for a room to rent so it would be a stranger, knowing my luck it will end up with a serial killler!!:eek:

Hope I've covered all your queries, I just want to say thanks for all comments so far sorry about the typo's in my initial post, think i was just releived to be getting everything off my chest in the original post I rushed it a little.