New - SOA done, what to do next?

MrsMerlot_2

Hi, I have been reading the posts on there for a few weeks now and finally sat down with my partner yesterday and after spending hours adding up, finding all the paperwork etc, we did our SOA. A massive shock to see it all written down and the fact that we have so much debt, all our own fault we know.

We are currently paying all bills and minimum payments but then finding we use the credit card at the end of the month to cover food shopping and if anything crops up like car repairs etc. We are also hoping to get married, and although we realise there is no way we can possibly afford it, its given us something to aim towards, as well as being comfortable and debt free one day.

As you will see from the SOA, we have 3 credit cards with a combined debt of approx 13500. We are paying £200 interest on these alone each month. We also have a loan each and a joint loan (which we took out last year to pay another debt).

I want to know what the best way of dealing with this mess is? We cant shuffle around because we're maxed out and I doubt we would be accepted for any other credit cards.

Is it worth going to our bank (we both bank at the same one) and asking for a joint loan to pay off what we owe, therefore paying less interest over the term, or will they just laugh in our faces?

I've thought about CAB and have tried the CCCS Debt Remedy which suggested we cut down on smoking and Sky TV.

We now have a basic sky package which we cant get out of until the contract ends in August, and my partner is covered in (free) nicotine patches trying to quit smoking.

What can we do to reduce the interest? I recently paid off a small loan with Black Horse and they keep sending me junk mail offering me more money (£7500) but I scared I will get declined and this will affect my credit record.

I have also had a credit report and asked an old credit card provider to close their account and it was showing £0 balance but £5900 credit available. How long will this take to show up?

I've also asked at work for overtime and realise I'm very lucky that they are considering it.

I'm on a lifetime tracker mortgage, and am dreading interest rates going up, because then we will be in a bad way.

I just feel that we are balancing on the edge and now is the time to do something before the situation gets worse. We have cut the cards up too. I also rang and asked them to reduce the APR but they wouldnt budge.

Where do we start? The bank? CAB? Consolidation loan? Apply for more cards/loans to get better interest rates? Thanks for reading.

SOA

[FONT=&quot]Monthly Budget Summary[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Amount(£)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Total monthly income[/FONT]

[FONT=&quot]2,640[/FONT]

[FONT=&quot]Monthly expenses (incl. HP & secured loans)[/FONT]

[FONT=&quot]1,798.42[/FONT]

[FONT=&quot]Available for debt repayments[/FONT]

[FONT=&quot]841.58[/FONT]

[FONT=&quot]UNsecured debt repayments[/FONT]

[FONT=&quot]680.41[/FONT]

[FONT=&quot]Amount left after debt repayments[/FONT][FONT=&quot][/FONT]

[FONT=&quot]161.17[/FONT][FONT=&quot][/FONT]

[FONT=&quot] [/FONT]
[FONT=&quot]Personal Balance Sheet Summary[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Amount(£)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Total Assets (things you own)[/FONT]

[FONT=&quot]83,400[/FONT]

[FONT=&quot]Total Secured & HP Debt[/FONT]

[FONT=&quot]-55,456[/FONT]

[FONT=&quot]Total Unsecured Debt[/FONT]

[FONT=&quot]-29,525.59[/FONT]

[FONT=&quot]Net Assets[/FONT][FONT=&quot][/FONT]

[FONT=&quot]-1,581.59[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Household Information[/FONT]
[FONT=&quot]Number of adults in household[/FONT]

[FONT=&quot]2[/FONT]

[FONT=&quot]Number of children in household[/FONT]

[FONT=&quot] [/FONT]

[FONT=&quot]Number of cars owned[/FONT]

[FONT=&quot]1[/FONT]

[FONT=&quot]Income, Expense, Debt & Asset Details[/FONT]
[FONT=&quot]Income[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Amount(£)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Monthly income after tax[/FONT]

[FONT=&quot]1290[/FONT]

[FONT=&quot]Partners monthly income[/FONT]

[FONT=&quot]1350[/FONT]

[FONT=&quot]Benefits[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Other income[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Total monthly income[/FONT][FONT=&quot][/FONT]

[FONT=&quot]2640[/FONT][FONT=&quot][/FONT]

[FONT=&quot] [/FONT]
[FONT=&quot]Expenses[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Amount(£)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Mortgage[/FONT]

[FONT=&quot]384[/FONT]

[FONT=&quot]Secured/HP loan payments[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Rent[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Management charge (leasehold property)[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Council tax[/FONT]

[FONT=&quot]77[/FONT]

[FONT=&quot]Electricity[/FONT]

[FONT=&quot]55.5[/FONT]

[FONT=&quot]Gas[/FONT]

[FONT=&quot]55.5[/FONT]

[FONT=&quot]Oil[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Water Rates[/FONT]

[FONT=&quot]16.9[/FONT]

[FONT=&quot]Telephone (land line)[/FONT]

[FONT=&quot]12[/FONT]

[FONT=&quot]Mobile phone[/FONT]

[FONT=&quot]20[/FONT]

[FONT=&quot]TV Licence[/FONT]

[FONT=&quot]9.74[/FONT]

[FONT=&quot]Satellite/Cable TV[/FONT]

[FONT=&quot]43.75[/FONT]

[FONT=&quot]Internet services[/FONT]

[FONT=&quot]7.5[/FONT]

[FONT=&quot]Groceries etc.[/FONT]

[FONT=&quot]250[/FONT]

[FONT=&quot]Clothing[/FONT]

[FONT=&quot]60[/FONT]

[FONT=&quot]Petrol/diesel[/FONT]

[FONT=&quot]75[/FONT]

[FONT=&quot]Road tax[/FONT]

[FONT=&quot]10[/FONT]

[FONT=&quot]Car Insurance[/FONT]

[FONT=&quot]22.39[/FONT]

[FONT=&quot]Car maintenance (including MOT)[/FONT]

[FONT=&quot]5[/FONT]

[FONT=&quot]Car Parking[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Other travel[/FONT]

[FONT=&quot]20[/FONT]

[FONT=&quot]Childcare/nursery[/FONT]

[FONT=&quot]20[/FONT]

[FONT=&quot]Other child related expenses[/FONT]

[FONT=&quot]380[/FONT]

[FONT=&quot]Medical (prescriptions, dentists, opticians etc.)[/FONT]

[FONT=&quot]30[/FONT]

[FONT=&quot]Pet Insurance/Vet bills[/FONT]

[FONT=&quot]18.5[/FONT]

[FONT=&quot]Buildings Insurance[/FONT]

[FONT=&quot]11[/FONT]

[FONT=&quot]Contents Insurance[/FONT]

[FONT=&quot]10[/FONT]

[FONT=&quot]Life Assurance[/FONT]

[FONT=&quot]14.64[/FONT]

[FONT=&quot]Other Insurance[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Presents (birthday, christmas etc.)[/FONT]

[FONT=&quot]30[/FONT]

[FONT=&quot]Haircuts[/FONT]

[FONT=&quot]20[/FONT]

[FONT=&quot]Entertainment[/FONT]

[FONT=&quot]30[/FONT]

[FONT=&quot]Holiday[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]Emergency Fund[/FONT]

[FONT=&quot]30[/FONT]

[FONT=&quot]Smoking[/FONT]

[FONT=&quot]80[/FONT]

[FONT=&quot]Total monthly expenses[/FONT][FONT=&quot][/FONT]

[FONT=&quot]1798.42[/FONT][FONT=&quot][/FONT]

[FONT=&quot] [/FONT]
[FONT=&quot]Secured & HP Debt Description[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Debt(£)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Monthly(£)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]APR(%)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Mortgage[/FONT]

[FONT=&quot]55456[/FONT]

[FONT=&quot](384) [/FONT]

[FONT=&quot]1.49[/FONT]

[FONT=&quot]Secured & HP Debt totals[/FONT][FONT=&quot][/FONT]

[FONT=&quot]55456[/FONT][FONT=&quot][/FONT]

[FONT=&quot]- [/FONT][FONT=&quot][/FONT]

[FONT=&quot]- [/FONT][FONT=&quot][/FONT]

[FONT=&quot] [/FONT]
[FONT=&quot]Unsecured Debt Description[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Debt(£)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]Monthly(£)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]APR(%)[/FONT][FONT=&quot][/FONT]

[FONT=&quot]M Credit Card [/FONT]

[FONT=&quot]5738[/FONT]

[FONT=&quot]128[/FONT]

[FONT=&quot]16.62[/FONT]

[FONT=&quot]T Credit Card[/FONT]

[FONT=&quot]1371[/FONT]

[FONT=&quot]28[/FONT]

[FONT=&quot]15.9[/FONT]

[FONT=&quot]B Credit Card[/FONT]

[FONT=&quot]5870[/FONT]

[FONT=&quot]130[/FONT]

[FONT=&quot]12.9[/FONT]

[FONT=&quot]Owe family[/FONT]

[FONT=&quot]5286[/FONT]

[FONT=&quot]100[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]FLM Loan[/FONT]

[FONT=&quot]2813.63[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]0[/FONT]

[FONT=&quot]N R Loan[/FONT]

[FONT=&quot]1479.15[/FONT]

[FONT=&quot]98.61[/FONT]

[FONT=&quot]11.9[/FONT]

[FONT=&quot]B H Joint Loan[/FONT]

[FONT=&quot]6967.81[/FONT]

[FONT=&quot]195.8[/FONT]

[FONT=&quot]16.58[/FONT]

[FONT=&quot]Unsecured Debt totals[/FONT][FONT=&quot][/FONT]

[FONT=&quot]29525.59[/FONT][FONT=&quot][/FONT]

[FONT=&quot] 680.41[/FONT][FONT=&quot][/FONT]

[FONT=&quot]- [/FONT][FONT=&quot][/FONT]

HappyMJ

What a strangely formatted soa. It makes it hard to read...anyhow you have a mortgage at 1.49% that's very cheap. I would look at a payment holiday on the mortgage and paying down the unsecured debt quicker or securing "some" of the highest cost debt (maybe only the bh joint loan). Not all of it you want to stay under 75% lvr. With your income it's unlikely to be approved though and you won't get any further unsecured credit at a cheap rate so you need to reduce spending as much as possible. You haven't included child benefit or child tax credits as income or is that included in your own incomes?

MrsMerlot_2

Hi, thanks for your fast reply, I've just tried to submit the SOA again but not having much luck.
We are not entitled to child benefit or credit, as DH's son lives with his ex partner. He just pay his maintenance via CSA and we also pay for school club when he picks him up from school.

We have done a budget to reduce spending on all we can, we've reduced the food budget and will be trying as much as we can.

Its not looking good for us is it?

RachelS

Smoking will be the biggest thing for you to cut out. As an ex-smoker myself I appreciate how tough that is, but it'll save nearly £1000 a year. Is that Sky the absolute basic package? Seems pricey for that.

Could you cut back a bit on clothing? If you have a decent amount of stuff, you could feasibly spend very little on it just for a year and use the extra saved to pay down some debt. Maybe try £30 a month...there are some great tips for money saving on the Old Style moneysaving board, stuff I would never have dreamed of in a million years but that all adds up.

dbt3mummy

is that the cost of your reduced Sky? That's horrendous! That is pretty much the cost of the entire package!
We pay £21.50 for the basic plus children's channels as we are yet to wean our daughter off the Disney channel!

If you tell sky you want to leave they will often try to keep you for at least another 3 months at half price.

I'd look at your grocery shop as well - you may be able to save a little by swapping one brand or cutting back on any luxuries you may have.

Good luck!

mummy2mygirls

Hello and welcome to the boards.
From your SOA it shows you have £161 left each mth after you have paid for everything yet you say your using ccs at the end of the mth - so it could be worth you doing a spending diary to see where this money is really going? My DH smokes and does try to give up but its not happening - he has started to smoke baccy most of the time and its saving us a fortune - would your dh do this??
Shopping could be cut down a bit? Sky seems to bit high - I think basic is about £20ish but not to sure - could you lower it or even better get freeview/sat when the contrac ends?? Clothing is also high and could be cut - have you got any things you dont use anymore which maybe you could ebay and add it onto the debt with highest APR? Good luck on your DF journey

HappyMJ

MrsMerlot wrote: »

Hi, thanks for your fast reply, I've just tried to submit the SOA again but not having much luck.
We are not entitled to child benefit or credit, as DH's son lives with his ex partner. He just pay his maintenance via CSA and we also pay for school club when he picks him up from school.

We have done a budget to reduce spending on all we can, we've reduced the food budget and will be trying as much as we can.

Its not looking good for us is it?

It looks OK. Not bad or good just OK.

Why is the Child Support £380? Are there arrears? 15% of £1350 is about £200 per month and it should be less if he actually sees the child regularly. If there are arrears how long will they take to paid off.