Newbie and in need of advice please

dollybeads

Help please, I am in a total mess, very ashamed and feeling terribly guilty. All of this below is my own fault and no one else is to blame. I have spent seriously recklessly over the last 10 years or more. I am determined to get this sorted once and for all and to end the countless sleepless nights.

A few details, I am just going through a divorce, I still have my own home which I pay half the mortgage for, but am living with my new partner in his home which is mortgage free. We have an arrangement where he pays all the bills and I buy all the food and consumables. I know I can seriously cut down on our groceries, my diesel expenses are high as I live nearly two hours away from a well paid job which I love. I am trying to sell my home to help, but the market is not great at present. My aim is to move nearer. I would like to change my credit card to a 0% finance one, but my rating is in the middle and no spare credit on this and am worried about doing this. I would also like to combine the two loans but don't know if this is sensible or not?

I have just kept on burying my head in the sand, and spent to reward myself, all advice gratefully received. The thing I struggle most with, is that I have a great job, and am able to negotiate hard at work on all sorts of financial deals but in my personal life I am a complete useless jelly! Please help.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2600
Monthly Expense Details
Mortgage................................ 800
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 20
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 1740

Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 302000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 122000...(800)......0
Total secured & HP debts...... 122000....
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Loan................13173.....373.......8.1
Lloyds TSB Loan................15293.....336.......23.9
M&S CC.........................6300......156.......18.9
Next ..........................420.......50........0
Overdraft....................500........5.........0
Total unsecured debts..........35186.....915.......-

Monthly Budget Summary
Total monthly income.................... 2,600
Expenses (including HP & secured debts). 1,740
Available for debt repayments........... 860
Monthly UNsecured debt repayments....... 915
Amount short for making debt repayments. -60
Personal Balance Sheet Summary
Total assets (things you own)........... 302,000
Total HP & Secured debt................. -122,000
Total Unsecured debt.................... -35,186
Net Assets.............................. 144,814

Many thanks:(
To top it all just checked my bank balance to find they have taken £135.00 today for bank charges which I have no idea what they are for as not been overdrawn (over agreed overdraft) aaarrrrggghhh

MFWannabe

dollybeads wrote: »

Help please, I am in a total mess, very ashamed and feeling terribly guilty. All of this below is my own fault and no one else is to blame. I have spent seriously recklessly over the last 10 years or more. I am determined to get this sorted once and for all and to end the countless sleepless nights.

A few details, I am just going through a divorce, I still have my own home which I pay half the mortgage for, but am living with my new partner in his home which is mortgage free. We have an arrangement where he pays all the bills and I buy all the food and consumables. I know I can seriously cut down on our groceries, my diesel expenses are high as I live nearly two hours away from a well paid job which I love. I am trying to sell my home to help, but the market is not great at present. My aim is to move nearer. I would like to change my credit card to a 0% finance one, but my rating is in the middle and no spare credit on this and am worried about doing this. I would also like to combine the two loans but don't know if this is sensible or not?

I have just kept on burying my head in the sand, and spent to reward myself, all advice gratefully received. The thing I struggle most with, is that I have a great job, and am able to negotiate hard at work on all sorts of financial deals but in my personal life I am a complete useless jelly! Please help.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2600
Monthly Expense Details
Mortgage................................ 800 - Is this until the house is sold i presume?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35 - Cut to lower tariff or go payg
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 - You can seriously reduce this!! Should be able to reduce it by £150
Clothing................................ 50 - Cut this to £20 per month for now
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 20
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 15 - Check comparison sites to see if you can get cheaper
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 100 - Stop this for now while you are paying off debts
Total monthly expenses.................. 1740

Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 302000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 122000...(800)......0
Total secured & HP debts...... 122000....
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Loan................13173.....373.......8.1
Lloyds TSB Loan................15293.....336.......23.9 - Why is the interest rate so high on this one compares to first loan? If this is your own bank then speak to them to see if you can combine into one loan at a cheaper interest rate
M&S CC.........................6300......156.......18.9 - Apply for a 0% card or a low life of balance card
Next ..........................420.......50........0
Overdraft....................500........5.........0
Total unsecured debts..........35186.....915.......-

Monthly Budget Summary
Total monthly income.................... 2,600
Expenses (including HP & secured debts). 1,740
Available for debt repayments........... 860
Monthly UNsecured debt repayments....... 915
Amount short for making debt repayments. -60
Personal Balance Sheet Summary
Total assets (things you own)........... 302,000
Total HP & Secured debt................. -122,000
Total Unsecured debt.................... -35,186
Net Assets.............................. 144,814

Many thanks:(
To top it all just checked my bank balance to find they have taken £135.00 today for bank charges which I have no idea what they are for as not been overdrawn (over agreed overdraft) aaarrrrggghhh

Hi
I've made some comments above where you could make some good savings;especially with groceries. Apply for a 0% card or low life of balance card to move the m&s card to; the worst that can happen is you will be rejected; but you won't know until you try.

lvm

Your grocery costs are certainly on the high side...I'm a single person and only going to be spending £50 a month (on a budget!).

Is there a possibility of you renting your house or rooms in your house out to support your mortgage costs?

dollybeads

Thank you for your advice, I just need to pull myself together and speak to the bank and as you say apply for a barclaycard or similar doing a good deal. My credit card is costing me £100.00 in interest each month alone! Interest rate on the loan, not sure why its so high, but was in desparation needed to move out of my house, husband took my car, etc etc so stupidly accepted anything they offered. Mortage is until the house is paid off.
will let you know how i get on.
Thank you all for reading and replying, it really helps.

dollybeads

Thank you, have been thinking about renting out and or have foreign exchange students as some friends do this and I believe you can earn approx 4k before paying any tax which sounds good.

will keep posting and updating on progress, thanks for your reply

lvm

I live in Edinburgh and the council here have some sort of lease thing you can get - they rent your flat/house from you for a fixed £££ per month for a 5 years. They use your house for those on housing benefit or something like that. The lease they sign also confirms they will hand house back to you in 5 years in the same condition as it is now so they take all responsibility for damage etc.

Not sure if this is just an Edinburgh thing but might be worthwhile to look into if it lets you keep your property as well...

dollybeads

Thank you yes that sounds great too, will look into this with the council as technically I hope to either sell my house and move nearer to work and my new partner is hoping to sell his too and perhaps we might buy something together and or cheaper. But housing market is very slow down south at present so nothing moving much. But thanks for the suggestion and just applied for 0% balance transfer card and got accepted. I can't believe it. Have been putting this off for years and paying £100.00 plus in interest every month for about 6 years!!!! What a bloody waste. I feel good that i have finally been brave enough to do this, but crap that it took me so long. Next step to tackle the bank and get the loan interest down to a reasonable amount. I am on a roll (i think and hope)
Thank you to all who have replied and given me hope, its greatly appreciated.

RachelS

Is there any way your work would give you an allowance towards travel expenses to keep you? It sounds unlikely, I know, but my friend's husband got an allowance for petrol just last week.

MFWannabe

dollybeads wrote: »

Thank you yes that sounds great too, will look into this with the council as technically I hope to either sell my house and move nearer to work and my new partner is hoping to sell his too and perhaps we might buy something together and or cheaper. But housing market is very slow down south at present so nothing moving much. But thanks for the suggestion and just applied for 0% balance transfer card and got accepted. I can't believe it. Have been putting this off for years and paying £100.00 plus in interest every month for about 6 years!!!! What a bloody waste. I feel good that i have finally been brave enough to do this, but crap that it took me so long. Next step to tackle the bank and get the loan interest down to a reasonable amount. I am on a roll (i think and hope)
Thank you to all who have replied and given me hope, its greatly appreciated.

Well done you :T Please don't beat yourself up about it; what matters now is that you've faced up to it and are going to tackle it now. Sounds like getting the 0% card as given you some incentive to change your situation

dollybeads

Thank you thats very kind, I do seem to have got complete inertia up to now due to embarrassment at having got myself into such a mess. It is wonderful to have somewhere that you can tell people your situation without being judged or criticised for what you have done. Somehow this makes it safe to proceed and start to tackle things. I think it must be working as my new Next catalogue arrived yesterday, I like nothing better (which is desparately sad) than looking through such publications and listing all the things I want for the next couple of months, lovely expensive boots, new shoes, dresses for work etc etc. But I found myself stopping and thinking (for the first time) I can't afford this and need to put this sort of many against my current debts. It so simplistic it is embarrassing but I have never ever thought like that, before its been I want, I must have...........usually now.

Thanks to this site and support from people like you, things are slowly changing.;)

dollybeads

"RachelS;39974690, Is there any way your work would give you an allowance towards travel expenses to keep you? It sounds unlikely, I know, but my friend's husband got an allowance for petrol just last week."

oooohhh hadn't thought about that, they are very generous to me in lots of ways and really look after me, so not sure I will be brave enough, but certainly will give it some thought. This suggestion though did inspire me as below:

I have today set up a car share with one of our doctors here which will save me about £60.00 per week, and was thinking of asking if I could work condensed hours ie 4 days instead of 5 for say the 6 months or year which would save another £40.00 in diesel alone each month. They have agreed this in the past as the Journey during recent roadworks was taking 3 hours each way!!

Many thanks for this suggestion, very helpful.