What are my options

Audio68

Just been rate jacked by Santander again and it's getting a little tight financially. Here is my situation
We both take home round £1450/month, £2,900 total
Mortgage £900/month
CSA £75/month, £3000 arrears (don't ask)
Wife's Sainsbury loan £305/month, 24 payments left
Wife's Lloyds credit card £500 balance, making min payments £40
My Santander credit card £14,000 balance @24%, making minimum payments £390
My MBNA closed credit card £15,000 balance @19%, making minimum payments £240
My M&S credit card £2,000 @5%, making minimum payments £50
Total £1,925
Will all the utility bills, food etc we are close to the edge and looking for a strategy.
We have never missed an payment, ever, lived in the same house 8 years, both with same employer over 20 years and bank with Santander (8 years).

Suggestions anyone?

Cheers

Simon

laisbojar83

Hi Simon,

I think the best thing you can do is post your full SOA here so everyone can have a look and give some advice.

Here is the link: www.makesenseofcards.com/soacalc.html

xxx
L.

katsu

Look at the articles under credit cards for how to refuse the rate jacking. I'm sure it can be done but you would no longer be able to use the card.

Audio68

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1440
Partners monthly income after tax....... 1440
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2880

Monthly Expense Details
Mortgage................................ 900
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 50
Mobile phone............................ 0
TV Licence.............................. 20
Satellite/Cable TV...................... 30
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 90
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
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..................... 9
Contents insurance...................... 9
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1678


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 186000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(900)......0
Total secured & HP debts...... 160000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
csa............................3000......74........0
m&S............................2000......50........0
Santander......................14000.....390.......0
sainsbury......................7000......305.......0
MBNA...........................15000.....240.......0
Lloyds.........................500.......50........0
Total unsecured debts..........41500.....1109......-


Monthly Budget Summary
Total monthly income.................... 2,880
Expenses (including HP & secured debts). 1,678
Available for debt repayments........... 1,202
Monthly UNsecured debt repayments....... 1,109
Amount left after debt repayments....... 93

Personal Balance Sheet Summary
Total assets (things you own)........... 186,000
Total HP & Secured debt................. -160,000
Total Unsecured debt.................... -41,500
Net Assets.............................. -15,500

katsu

Audio68 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... so no kids, right?
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1440
Partners monthly income after tax....... 1440
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2880

Monthly Expense Details
Mortgage................................ 900
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130 is this your 12 month or 10 month figure?
Electricity............................. 50 seems high for just two adults. See advice below.
Gas..................................... 50 Ours is around £35 pcm but our house is a bit cold. Check the relevant bits of the advice below.
Oil..................................... 0
Water rates............................. 30 check if a meter would save you money. Ours is metered at ~£20pcm
Telephone (land line)................... 50 you can reduce this - read martin's articles on the main site tabs above.
Mobile phone............................ 0
TV Licence.............................. 20 errr? Usually £12.
Satellite/Cable TV...................... 30 get a freeview box and save over £300pa
Internet Services....................... 0
Groceries etc. ......................... 250 you would be able to get this down a bit if you visit the Old Style forum
Clothing................................ 0
Petrol/diesel........................... 90
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
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..................... 9
Contents insurance...................... 9
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 never?
Haircuts................................ 0 never?
Entertainment........................... 0 never?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1678


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 186000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(900)......0
Total secured & HP debts...... 160000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
csa............................3000......74........0
m&S............................2000......50........0
Santander......................14000.....390.......0
sainsbury......................7000......305.......0
MBNA...........................15000.....240.......0
Lloyds.........................500.......50........0
Total unsecured debts..........41500.....1109......-


Monthly Budget Summary
Total monthly income.................... 2,880
Expenses (including HP & secured debts). 1,678
Available for debt repayments........... 1,202
Monthly UNsecured debt repayments....... 1,109
Amount left after debt repayments....... 93 does this feel right or is something missing above?

Personal Balance Sheet Summary
Total assets (things you own)........... 186,000
Total HP & Secured debt................. -160,000
Total Unsecured debt.................... -41,500
Net Assets.............................. -15,500

So, Gas and Electric:
* Check if you are on accurate bills
* check your consumption via a comparison site and if it is worth you switching use a cashback site to switch
* don't use the immersion to heat water if you have a big old tank
* turn lights off when not in the room, fit energy saving bulbs, turn things off not use standby
* see if your council lends out OWL meters via the library so you can measure the electric consumption of your stuff
* turn the heating down a bit and wrap up more.

For 2 adults 0 kids we are on a dual fuel deal and pay £16 for electric (no TV, no tumble dryer, do have electric shower and washing machine) and currently £30 for gas (gas cooker and have a boiler over 15yrs old but wear lots of layers as house is a bit cold!). Gas will probably go up a bit over the winter but I think you could make some savings here.

Hope this helps.

Audio68

Thanks for the advice on utilities, I really do need to concentrate on addressing my debt at the moment but will look at that as I go along. I do however agree that I estimated a couple of the utilities but there are with £10 or so.
Now, back to my debt, any suggestions??

Simon

Malky

Do you have anything to show for your £38K debt that you can sell and throw back at your debts?

Nottoobadyet

how long ago did Santander raise your interest rate? You should be able to reject the change in rate, so long as you are willing to stop using the card.

Audio68

I've sorted the rate jack today so that panick is over. With regard to selling stuff, that would really be a last resort and I think I'm a way off that.
Looks like I just keep paying what I pay, I just thought there may be a strategy I could use
eg move all cc debts to one of us then settle with a personal loan in the other one's name

Probably a stupid idea

eyeopener2

You need to look at the whole picture, which is why the Utilities were mentioned.

What have you spent the money on?
Will you continue spending at this rate?

Your SOA indicates a surplus but have you really?

Nothing for presents? Haircuts? Entertainments? This says that you may be overspending each month. Have another look at your SOA and include these items ands see where your at. Its suprising where it all goes.

Then you will see where you can cut back, so you stop borrowing more to fund your lifestyle, then start making a plan to pay it back.

Verbatim

Are you snowballing? That is paying minimums to all cards except the one with the highest interest. Pay as much as you can to this target debt until it's gone then target the next highest rate card etc. This method allows you to pay off with the least amount of interest.

Are you still using cards? You have to work out a budget and stick with it including a monthly amount for annual bills and a realistic sum for fun.

Can you increase your income? Let a room or have a Mon - Thurs lodger or a student, do a second or weekend job? See the up your income thread. If you're not reducing the capital owed are you finding that your payments are just covering the interest added each month? If you're paying interest on interest each month this will quickly spiral out of control. I hope you can get things sorted soon.