Newbie advice please

LillythePink

When did you take out your fixed mortgage? What rate is it at? Yes, to break it, it will cost you, but we are paying 1667 pm on 352k so you should investigate with your bank - you don't know if you don't ask.

BEAT_THE_DEBT

as far as i know you make token payments until a plan is in place ask cab .x

dancingfairy

Mortgage................................ 1405
Secured/HP loan repayments.............. 150
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 126
Electricity............................. 175 every month?? this is very very high as is gas - you need to see if you have any credit on your account and shop around
Gas..................................... 56
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 72 this is high - what are you paying for in this?
Mobile phone............................ 60 how many mobiles is this? you should be able to manage for under 20 each
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 700 this is quite high - see if you can make any cutbacks here - I spend 250 ish for 2 so you should be able to get it for 500. Try and do batch cooking, use cheap basic brands for things that don't matter much - ie tinned tomatoes etc
Clothing................................ 80 try not to buy any clothes unless necessary for now
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100 what's this?
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 44 did you shop around for this?
Contents insurance...................... 0
Life assurance ......................... 32
Other insurance......................... 43
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30
Entertainment........................... 0 you will need to budget something here - even if it's a small amount.
Holiday................................. 0
Emergency fund.......................... 0 you might want to add something here
Total monthly expenses.................. 3398

The above are my comments - hope you can make some of the cutbacks suggested.
Good luck
df

dancingfairy

Having a quick look through your SOA I would say this about the following debt solutions:
1) bankruptcy is a possibility with that level of debt - however with equity in your house you may not want to do this
2) an IVA might be a possibility - head over to the IVA board to see what you think of them
3) you certainly could do a debt management plan(dmp) - according to your SOA, after paying your essential bills you have 356 a month to put towards your debts. In a dmp this would be split between your creditors and you would ask them to stop interest and charges to allow you to pay the debts off. A dmp is an informal agreemenet whereas an IVA is a formal solution and binding on both parties. With a dmp as you make savings in your budget/your circumstances imrpove you can pay more and if things get worse - ie loose your job you can pay less.
Obviously that is just my initial reading of you situation and you would need to look into the solutions to see which is the best for you. I am not a debt counsellor or qualfied in any way so please do make sure you do your own reasearch.
Good Luck
df

sadmum_3

Mortgage................................ 1405 14 years left
Secured/HP loan repayments.............. 150
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 126
Electricity............................. 175 every month?? this is very very high as is gas - you need to see if you have any credit on your account and shop around - Paying back underpayment from previous years
Gas..................................... 56
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 72 this is high - what are you paying for in this? Includes internet access and telephone and TV package
Mobile phone............................ 60 how many mobiles is this? you should be able to manage for under 20 each 3 mobiles contracted until Dec2011
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 700 this is quite high - see if you can make any cutbacks here - I spend 250 ish for 2 so you should be able to get it for 500. Try and do batch cooking, use cheap basic brands for things that don't matter much - ie tinned tomatoes etc Includes laundry, pet food
Clothing................................ 80 try not to buy any clothes unless necessary for now
Petrol/diesel........................... 120
Road tax................................ 10
Car Insurance........................... 43
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100 what's this?2 teenage children, commited to paying for scholl trip to France
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 44 did you shop around for this?Includes contents as well yes I did shop
Contents insurance...................... 0
Life assurance ......................... 32
Other insurance......................... 43
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30 For all 4 of us 6 weekly
Entertainment........................... 0 you will need to budget something here - even if it's a small amount.
Holiday................................. 0
Emergency fund.......................... 0 you might want to add something here
Total monthly expenses.................. 3398




Thanks all, comments very much appreciated.

LillythePink

The groceries include laundry - what exactly?

The 14 years you have left on your fixed rate - how long was it initially for and what rate? It may still be worth talking to your bank about it and seeing what penalty you would pay and what deal you would get if you stayed with them

dancingfairy

With regards to the mortgage - yes it's worth seeing if this is still a good deal etc and whether you could get a better deal, however you should ensure this doesn't cost you more over the long term - many people have consolidated their debts over a longer period (I know this is not what you planned to do but the pitfalls are similar) and the temptation is that when you are paying less each month you are less careful than you would have been and then run up more debt and also it costs a lot more in the longer term with interest on interest etc - I am concerned that while in debt crisis you don't panic and end up rushing into something for short term gain but will leave you paying a lot more over time.
df

MFWannabe

sadmum wrote: »

Mortgage................................ 1405 14 years left
Secured/HP loan repayments.............. 150
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 126
Electricity............................. 175 every month?? this is very very high as is gas - you need to see if you have any credit on your account and shop around - Paying back underpayment from previous years Do you know how much longer you have until this is paid back?
Gas..................................... 56
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 72 this is high - what are you paying for in this? Includes internet access and telephone and TV package - Cut to lowest tv package
Mobile phone............................ 60 how many mobiles is this? you should be able to manage for under 20 each 3 mobiles contracted until Dec2011
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 700 this is quite high - see if you can make any cutbacks here - I spend 250 ish for 2 so you should be able to get it for 500. Try and do batch cooking, use cheap basic brands for things that don't matter much - ie tinned tomatoes etc Includes laundry, pet food - Even including laundry and pet food this is still a huge amount; you should be able to cut this to £400 per month. Make a shopping list. Try shopping online and having it delivered; this takes away the temptations you see going round the shop
Clothing................................ 80 try not to buy any clothes unless necessary for now
Petrol/diesel........................... 120
Road tax................................ 10 - Is this correct for 2 cars?
Car Insurance........................... 43
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100 what's this?2 teenage children, commited to paying for scholl trip to France - How many more payments do you have to make?
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 44 did you shop around for this?Includes contents as well yes I did shop
Contents insurance...................... 0
Life assurance ......................... 32
Other insurance......................... 43 - What is this for?
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30 For all 4 of us 6 weekly
Entertainment........................... 0 you will need to budget something here - even if it's a small amount.
Holiday................................. 0
Emergency fund.......................... 0 you might want to add something here
Total monthly expenses.................. 3398




Thanks all, comments very much appreciated.

Hi
I've made some comments above. Some items depend how much longer you have to pay them for i.e school trips. Once these are paid then that's £100 extra you will have per month which you should use to pay off debts

sadmum_3

Mortgage................................ 1405 14 years left
Secured/HP loan repayments.............. 150
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 126
Electricity............................. 175 every month?? this is very very high as is gas - you need to see if you have any credit on your account and shop around - Paying back underpayment from previous years Do you know how much longer you have until this is paid back? Should be paid back within 1 year
Gas..................................... 56
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 72 this is high - what are you paying for in this? Includes internet access and telephone and TV package - Cut to lowest tv package We have done what we can
Mobile phone............................ 60 how many mobiles is this? you should be able to manage for under 20 each 3 mobiles contracted until Dec2011
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 700 this is quite high - see if you can make any cutbacks here - I spend 250 ish for 2 so you should be able to get it for 500. Try and do batch cooking, use cheap basic brands for things that don't matter much - ie tinned tomatoes etc Includes laundry, pet food - Even including laundry and pet food this is still a huge amount; you should be able to cut this to £400 per month. Make a shopping list. Try shopping online and having it delivered; this takes away the temptations you see going round the shop Will try to budget less but have been advised to be realistic so not to end up in a mess again
Clothing................................ 80 try not to buy any clothes unless necessary for now Ok
Petrol/diesel........................... 120
Road tax................................ 10 - Is this correct for 2 cars? Yes mine is leased and taken from my wage before I get it
Car Insurance........................... 43
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 100 what's this?2 teenage children, commited to paying for scholl trip to France - How many more payments do you have to make? 4 x £50
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 44 did you shop around for this?Includes contents as well yes I did shop
Contents insurance...................... 0
Life assurance ......................... 32
Other insurance......................... 43 - What is this for?Gas breakdown and washing machine breakdown
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30 For all 4 of us 6 weekly
Entertainment........................... 0 you will need to budget something here - even if it's a small amount.
Holiday................................. 0
Emergency fund.......................... 0 you might want to add something here
Total monthly expenses.................. 3398

Thanks fro the advice keep it coming x

gfplux

You have received a great deal of very good advise. I also imagine that when you have answered some of the questions it has made you think about what you are spending your money on.
You have to live within your means. Therefore you may want Sky TV but you can not afford it.
You may have committed to phone contracts without thinking of the real cost impact on your budget, but now you have to fight to get out of the contracts.
You have got into debt precisely because you have not thought about how you spend your family income.
Now you need to live the life you CAN afford not the life you would LIKE to afford.
The solution is in the hands of the two adults and two children in your household. Are your children being brought up to know that money can only be spent once?
Good Luck.