Please Help!

ElmerFudd

Hi. I am not new to the forum but I have not been on here for a long time. I don't remember my old username etc.
Anyway I have had quite a few problems over the last year or so which have now put me squarely further into debt.
I want to now start getting out of it again but need the advice of all you wonderful people!
Posted below is my SOA. Thanks!

[Edit:
Forgot to add that I have recently been asked to start paying back my student loan which will come to £160 a month, which means I have only got £8 left to go on debts, total of that is £8k]


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.................... 0
Monthly Income Details
Monthly income after tax................ 1626
Partners monthly income after tax....... 500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2126
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 194
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 30
Gas..................................... 20
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 20
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 20
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 129
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1646

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 3600.....(194)......7.9
Total secured & HP debts...... 3600......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds.........................9800......200.......21
Halifax........................7420......75........6.95
Barclays.......................1600......37........0
Student loan...................8000......160.......0.4
Total unsecured debts..........26820.....472.......-

Monthly Budget Summary
Total monthly income.................... 2,126
Expenses (including HP & secured debts). 1,646
Available for debt repayments........... 480
Monthly UNsecured debt repayments....... 472
Amount left after debt repayments....... 8
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -3,600
Total Unsecured debt.................... -26,820
Net Assets.............................. -30,420
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

dudley3012

ElmerFudd wrote: »

Hi. I am not new to the forum but I have not been on here for a long time. I don't remember my old username etc.
Anyway I have had quite a few problems over the last year or so which have now put me squarely further into debt.
I want to now start getting out of it again but need the advice of all you wonderful people!
Posted below is my SOA. Thanks!


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.................... 0
Monthly Income Details
Monthly income after tax................ 1626
Partners monthly income after tax....... 500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2126
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 194
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 120 do you pay this over 12 months? may be worth looking at
Electricity............................. 30
Gas..................................... 20
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 20
Mobile phone............................ 40 Go on PAYG
TV Licence.............................. 0 ???? you should be paying this
Satellite/Cable TV...................... 20
Internet Services....................... 10 can you get it with your landline for cheaper than this?
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 0-
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 129
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25- may be worth reviewing
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0- never?
Haircuts................................ 0- never?
Entertainment........................... 0- ditto?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1631

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 3600.....(194)......7.9- secured against what?
Total secured & HP debts...... 3600......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds.........................9800......200.......21
Halifax........................7420......75........6.95
Barclays.......................1600......37........0- is this really 0% and when does it finish, then what does it go to?
Total unsecured debts..........18820.....312.......-

Monthly Budget Summary
Total monthly income.................... 2,126
Expenses (including HP & secured debts). 1,631
Available for debt repayments........... 495
Monthly UNsecured debt repayments....... 312
Amount left after debt repayments....... 183
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -3,600
Total Unsecured debt.................... -18,820
Net Assets.............................. -22,420
Created using the SOA calculator at Reproduced on Moneysavingexpert with permission, using IE browser.

I have made some comments. I hope they help. There are probably some other things you can do that the other people wil lbe able ot help with. Mine are more questions than answers I am afraid

Tixy

Hi Elmer - welcome back.

Do you have the £183 left each month after you have paid everything else? Have you been using it to make additional debt repayments?

I've put a few suggestions below which you might be able to make a few savings on. The key thing really if possible would be to reduce your rent costs or for partner to increase their income somehow.

ElmerFudd wrote: »

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.................... 0
Monthly Income Details
Monthly income after tax................ 1626
Partners monthly income after tax....... 500 could your partner increase this? work more hours? are they entitled to any working tax credit?
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2126
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 194
Rent.................................... 800 this looks quite high - is it competitive for where you live? could you move somewhere cheaper? or do you have room for a lodger to help pay for costs?
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 30 have you checked this & gas is with the cheapest supplier recently? your elec looks a little high - is some of your heating electric?
Gas..................................... 20
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 20
Mobile phone............................ 40
TV Licence.............................. 0 dont you have this?
Satellite/Cable TV...................... 20 cancel for freeview? or look to see if you can get a cheaper deal all in for landline, internet & tv.
Internet Services....................... 10
Groceries etc. ......................... 200 This is a bit high for 2, maybe aim to cut down to say £160 to free up a bit extra.
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 129
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 0 don't you have this?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 is this realistic to spend nothing in a year?
Haircuts................................ 0 probably need something here
Entertainment........................... 0 and a small amount here
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1631

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 3600.....(194)......7.9 What so you have on HP? is the 3600 the current balance or the original amount?
Total secured & HP debts...... 3600......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds.........................9800......200.......21 is this a loan or a cc?
Halifax........................7420......75........6.95
Barclays.......................1600......37........0 is this really 0%?
Total unsecured debts..........18820.....312.......-

Monthly Budget Summary
Total monthly income.................... 2,126
Expenses (including HP & secured debts). 1,631
Available for debt repayments........... 495
Monthly UNsecured debt repayments....... 312
Amount left after debt repayments....... 183
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -3,600
Total Unsecured debt.................... -18,820
Net Assets.............................. -22,420
Created using the SOA calculator at Reproduced on Moneysavingexpert with permission, using IE browser.

ElmerFudd

Thanks for the comments dudley3012 and Tixy.

Firstly I should have pointed out that the TV license is paid up until November this year, although after this I will need money for that too!
Council tax - despite requesting for them to allow me to pay over a 12 month period they refused. The upside is I have two supposed "free" months, which allows me to pump the money into the debt.
The mobile phone cost covers 2 phones (mine and my wife's). I was on PAYG and due to my work was paying a lot more than that each month for just me. Cheapest plans for my use sadly - and I have shopped around.
The phone/internet/TV is actually one price (which hopefully should be down by £10 next bill), and is necessary for my wifes part time reviewing work. We moved to this company after checking all the other options late last year and its by far cheaper than we were paying last year.
Pet insurance - definitely something I'll be looking into as it may be due for a review. Thing was 4 years ago we had no insurance, our pet got ill and we were lumbered with a + £1000 vet bill. Premiums are high because of this.
Haircuts - we cut each others hair. Entertainment - currently games/ satellite, other things in the weekend free things etc. hanging out with friends, walking in the park, very infrequently go to the movies, not pub people. Presents are on an ad hoc basis, when we can afford them.
The loan should really have gone in the unsecured part, since it is not secured against anything. Barclays 0% goes back to 6.95% (or there abouts) in 11 months time.
My wife is unable to work more hours currently. The rent is competitive for my area and we are on a fixed contract til 2013. The gas/ electric is complicated. The boiler is the only thing run on gas. We also have underfloor heating, which is run on electric. The hob/cooker is electric. The high cost is due to the winter period and I am hoping that will drop back down again. Unfortunately our rates also increased. I plan on shopping around but haven't gotten around to it yet. Thanks for reminding me!
Unfortunately the Lloyds is a credit card. They jacked up the rate from 5.5% APR three years ago, through 11%, 17% and finally 21% a few months back.

Thank you for your help on this so far. My plan is to look at lowering our groceries, and shop around for better gas/electric supplier.

Tixy I forgot to add my student loan and the contents insurance, which will leave me with a sum total of £8 a month additional to go on the debt.

I am seriously tempted to consolidate onto a loan some of the debt but I know that will probably be ridiculous. I am having problems now getting 0% and or low LOTB CC's to transfer to.

RAS

Your student loan should be deducted from your salary before it is paid to you?

dudley3012

Hi Elmer, It looks like you have looked at most of the obvious ones then. Would you consider talking to a charity like Payplan or CAB (although appt are like hen's teeth atm) to see if you can negotiate lower payments ot the debts etc.
It was hard for me at the beginning, but honestly, was one of the best things I could have done. The debts are no longer increasing and some of them are getting paid off. The phone still rings off the hook sometimes, but then they get a letter and that stops as well.

Tixy

I think you will struggle to get a consolidation loan or any new credit due to the amount of debt you already have compared to your income.
Generally we don't recommend consolidation loans anyway. As it is you can just meet your minimum payments and overall your interest rates are probably better than you would find on a consolidation loan anyway. Again as you can meet minimum payments I think its unlikely that any of the debt charities could help you.

Regarding the lloyds credit card - are you now aware that you can reject any APR increases? Its a shame you didn't do that last time they increased it but make sure you do if they try to increase it again.

Is the halifax debt a credit card? what is the credit limit on it? If you are not at the limit then you could slow stooze some of this lloyds debt to this card. This is where you put your normal spending (say groceries or your travel pass) on your halifax card and then use the money from your current account that would have paid for these to pay off the more expensive lloyds card. Same with the barclaycard as even at the higher rate of 11% or so its still a lot cheaper than lloyds.

I assume your student loan is the old-style which isn't collected from your salary?
Obviously things will be tight and paying off the debts will be slow with only £8 for any overpayments so any savings you can make in other areas will help, even just saving £10 here or there.

bargainbetty

Can I suggest you ask for the Student Loan payment to be double checked - based on your salary, that payment looks a little high per month. If you are on the PAYE deduction scheme for the Income based student loan, you should be paying closer to £100, not £160.

Ask your payroll people to check!

ElmerFudd

RAS and bargainbetty - my student loan is from 2000 and before. I have been deferring payments until this year. My recent payrise just threw me £20/ month over the threshold. Half the loan is with HSL the other half is with another company since HSL sold on the loan for the other two years. I am guesstimating the other half but I know HSL are expecting one payment of £36 for one years loan and one payment of £42 for another years loan. It could be more for the other ones but based on last years statement I think it will be £160 total from both loan companies (it was a 4 year course). I'll be paying back the student loan through my bank by direct debit. I have until the end of next month to get as much as I can paid off from the debt to make things easier. I'll have to call the student loan people to double check exactly what I will have to pay.
dudley3012 those are definitely options I will consider, but will give it a few months to see how I cope.
I'll actually be a little worse off overall financially than last year.
Tixy - I actually knew I could reject the APR rise charge but at the time the only other card I had with available credit on it (for emergencies) had a higher APR and typically the rise came just when there was an unexpected death in the family that I had to pay funeral costs toward. I didn't really want to use the Barclays or Halifax in emergencies as I didn't want to have a higher APR'd set of money sitting on those cards (although I know the rules have changed now on some cards).
I know I need to get out of the mindset of an "emergency" credit card but despite the struggle it has helped a number of times over the years.
Consolidating is definitely not the way to go - even if I could. As for stoozing I only have £400 available credit left on the Halifax (and yes it is a credit card, sorry I wasn't clear) and Barclays dropped my credit limit by £400 without telling me last month, putting me close to the limit.(Note that at the same time the high APR card *raised* my limit by £3000 without telling me. I have already put it back to how it was but Barclays won't raise my limit back to where it was before). TBH I never thought about stoozing to those cards (considering their APR's and the old system where the banks wouldn't pay off the high APR stuff first) but I will have to check the new terms and conditions to make sure that they will pay the highest APR's first. Thanks for the idea!

Thanks for the help everyone. I have a lot to think about.

ElmerFudd

Just worked out that once all the essentials and minimum payments are met I am left with £164 for food/ cleaning stuff for the month for two adults and a pet. Is this workable? The problem is currently my wife and I are spending at least £50 a week if not more (the pet food alone is roughly £5 a month - I really don't want to shell out for Vet bills again). If it wasn't for the student loan coming out things would be more comfortable. On top of this Lloyds has risen the APR to 24% as of this month, and I can't get anymore credit on either of the other lower APR cards.
Any more suggestions please??

katsu

Get the wife onto the old style boards to look at cheap meals.

I am spending around £50 but we have specific dietary requirements to cater for that mean we can't follow the cheapest advice. If nothing else having a beans on toast night once a week should help cut your food costs...