Newbie - Call from Bank

Ramrod_2

HI

My girlfriend uses this site and is always talking about it. I had a call from the bank yesterday and I felt sick after.

So my girl suggested I posted my SOA and some details in the hope of some feedback

Incomings
Wages 1561

Total Incomings 1561

Outgoings
Mortgage 804.37
Sainsburys CC 40 min pay
Halifax C 21.07 min pay
loan 225 starts Dec 06 (but put in to show issue)
Overdraft Fees
Orange Phone 35
Powergen Gas 45
Powergen Elec 35
United Util 28.81
TV Licence 11.37
Friends Prov 50.33 Mortgage insurance
Virgin Car Ins 26.73
NTL Broadband/TV 41.17
DD Savings 10
Council Tax 85
DD Maintinance 225
CAIS Col 39.04 House insurance
Egg Card 5 min pay

Total Out 1727.89

Total Incomings 1561
Total Outgoings 1727.89

Diff -166.89

HSBC Loan starts Dec 06 for 8 years just had 3 month payment break to start and still in mire
Total £22, 500 interest rate is 6.9% at £231 per month

Sainsbury cc APR 0% until 6/07 then 15.9% just paying min payment
(£1750 limit £3400)
Halifax cc APR 13.9% (£1100 limit £6450)
Egg cc APR no idea (£78 limit no idea) asked for details

I have ebayed everything I can
No overtime paid with job but hours worked
Would be difficult to get a 2nd job as main job means working funny hours last minute and travelling

She's already said I need to look at my Experian for my credit thing (sorry can't think of the word)
Pigsback ??
Quidco
Ring CCCs or Payplan - not sure about these any feedback would be welcome

I would be grateful for some advice

Many thanks

barnaby-bear

Ramrod wrote:

Can't believe you never go to dentist, go out, have car repairs, house repairs, buy kid birthday present, have a haircut.

Rent a room in your house?

Any equity in house?

Janey51

Hi Ramrod. Welcome to MSE and well done for taking the first step.
Initial comments on your SOA:
Does your girlfriend actually live with you ? (sorry...personal!). Just wondered if she does and contributes anything?
And you haven't put anything in for food at all!

CLAPTON

you have just taken out a loan for 22k....what has the money been used for ?

Brassic

Hi there,
As Barnaby Bear has already said - you need to include things like groceries in your soa - as much as you want to cut back you do need to eat! :rolleyes:

I think you are going to need to accept the fact that you are going to have to make some harsh sacrifices in order to be able to cope with this debt. But well done for taking that first step in posting on here - and I'm sure you'll get loads of help!

My first thoughts are :

Drop the savings dd.
See if you can switch bb supplier and go to freeview for tv.
Cancel your mobile phone, or go to a cheaper tarif.
Your mortgage insurance seems high - can this be renegotiated?
Do you have a home phone line that isn't accounted for there?

This isn't going to cover the defecit and pay for your shopping though. I'm wondering if this is a case for CCCS, or perhaps a prelminary enquiry to them for some advice, but I'm no expert so I'll take a back seat now and see what everyone else says.

Good Luck!

Ramrod_2

Sorry this is all a bit new to me, Im not really sure how to work out car repairs I do the service but if anything more and I guess it would have to be credit card, I do stuff round the house myself, cut my own hair not much of a task these days, I do have to buy presents, but dont go to the dentist..bad me.
I did think about the whole renting a room in my house thing but because I have a 6 year old daughter who stays some nights and weekends, it just wouldnt work.
I do have at least 60K in the house as equity but dont earn enough to remortgage.

Brassic

Ok, for cars you need to work out how much MOT, Tax, AA cover, tyres, and some potential repairs will cost per year and then divide by 12. That money goes somewhere safe each month until you need it. Same for presents, house repairs, entertainment etc.

Ramrod_2

My girlfriend does not live with me, and unfortunatly its not an option just at the moment, the loan was only really a top up to and existing one to pay off a 3k overdraft.
Im not sure how much I would need for shopping, as you can probably tell I have been a bit of a "head in the sand" kind of guy. I think the whole shopping thing will become clearer in the next couple of weeks as I try to spend as little as possible.
I do have a home phone and thats included in with the NTL/broadband figure.
My mobile phone is only a couple of months into an 18 month contract but I will see if I can change tarrif.

CLAPTON

it seems to me that even if you had no debt but included things like food, water, car related costs, petrol, something for clothes, xmas, etc you still would not break even.

first thing then is to up date your spending budget ...as already said for annual or one offs make an estimate and divide by 12. (you can use EDIT to go back and add these items

and again what was the 22,500 used for ?

barnaby-bear

CLAPTON wrote:

and again what was the 22,500 used for ?

Buying lots of things? Maybe why the household insurance so high lots of gadgetry? If so can it be sold.

Ramrod_2

loan for 22,500 was an original loan that I had to pay off debts from divorce and credit cards, it was topped up to pay off a 3000 overdraft.
I will have to sit down later and work out all the other figures for car, food, etc

thanks to everyone for your input so far.