Hi All

Frodobaggins

Dont Know were to start really. i have been a closet reader of this forum for a few weeks and thought its time to take my head out of the sand and confront my debts. Any help and advice truly appreciated.Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 4
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 1100
Benefits................................ 135
Other income............................ 300
Total monthly income.................... 3735
Monthly Expense Details
Mortgage................................ 350
Secured/HP loan repayments.............. 699
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 80
Gas..................................... 120
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 12
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 40
Internet Services....................... 20
Groceries etc. ......................... 400
Clothing................................ 20
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 45
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 45
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2140

Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 103000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 50746....(350)......0
Secured Debt.................. 34918....(530)......0
Hire Purchase (HP) debt ...... 6976.....(169)......0
Total secured & HP debts...... 92640.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................7571......360.......0
provident......................3507......400.......0
catolgues......................3896......292.......0
Total unsecured debts..........14974.....1052......-

Monthly Budget Summary
Total monthly income.................... 3,735
Expenses (including HP & secured debts). 2,140
Available for debt repayments........... 1,595
Monthly UNsecured debt repayments....... 1,052
Amount left after debt repayments....... 543
Personal Balance Sheet Summary
Total assets (things you own)........... 103,000
Total HP & Secured debt................. -92,640
Total Unsecured debt.................... -14,974
Net Assets.............................. -4,614

[Deleted User]

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 4
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2200 (Any way to increase? Overtime)
Partners monthly income after tax....... 1100 (Again, anyway to increase?
Benefits................................ 135
Other income............................ 300 (what's this? Can it be increased?)

Total monthly income.................... 3735
Monthly Expense Details
Mortgage................................ 350
Secured/HP loan repayments.............. 699
Council tax............................. 90 (Are you paying over 10 months - can you switch to paying over 12 - or during 2 CTax free months overpay on debt costing you the most in interest)
Electricity............................. 80 (High, check comparison sites, and check you are on the cheapest tariff for your usage - often online and duel fuel are cheaper)
Gas..................................... 120 (as above)
Water rates............................. 40
Telephone (land line)................... 12
Mobile phone............................ 20 (If in contract, see if you can drop a tariff - if out of contract, see if you can get a descent £10 SIM only package, or go PAYG)
TV Licence.............................. 12 (Try combining with home phone - shouls get both for approx £20 - compare the different providers that operate in your area - BT, Talk,Talk, Virgin, etc)
Satellite/Cable TV...................... 40 (Cancel, if in contract drop to the lowest package)
Internet Services....................... 20 (as home phone above)
Groceries etc. ......................... 400 (Possibly could be reduced - not sure, you have a few mouths to feed - try dropping brands, batch cooking, meal planning etc- Go over to the old style board on this forum for hints, tips, and cheap healthy meal recepies)
Clothing................................ 20 (essentials only for now)
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 45 (check comparison sites at renewal)
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 0
Medical (prescriptions, dentist etc).....7
Buildings insurance..................... 45 (Does this also include contents?)
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (perhapse need a little here?)
Haircuts................................ 0 (never?)
Entertainment........................... 0 (Nothing)
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2140

Assets
House value (Gross)..................... 100000
Car(s).................................. 3000
Total Assets............................ 103000

Secured & HP Debts
Description....................Debt......Monthly...APR (You need to find out what the APR is on all of these)
Mortgage...................... 50746....(350)......0
Secured Debt.................. 34918....(530)......0
Hire Purchase (HP) debt ...... 6976.....(169)......0
Total secured & HP debts...... 92640.....-.........-

Unsecured Debts (Again, need to know the APR's of these)
Description....................Debt......Monthly...APR
loan...........................7571......360.......0
provident......................3507......400.......0
catolgues......................3896......292.......0
Total unsecured debts..........14974.....1052......-

Monthly Budget Summary
Total monthly income.................... 3,735
Expenses (including HP & secured debts). 2,140
Available for debt repayments........... 1,595
Monthly UNsecured debt repayments....... 1,052
Amount left after debt repayments....... 543 (Well the good news is that you have a healthy surplus at the end of the month to make overpayments - do you actually have this at the end of every month? If not, keep a spending diary and note down everything your money gets spent on in the month from postage stamps, to coffees, debt repayment and mortgage...you will soon see where it goes, and you can adjust your SOA/spending habits as necessary.

If you do have this at the end of the month, then overpay this towards the debt that's costing you the most in interest (Has the highest APR). I can't comment on which ones these are you need to dig out the paperwork and contact the companies to ask if needs be.

Personal Balance Sheet Summary
Total assets (things you own)........... 103,000
Total HP & Secured debt................. -92,640
Total Unsecured debt.................... -14,974
Net Assets.............................. -4,614

Hi,

I have put some comments on your SOA above, hopefully some of them will be of use to you.

You need to find out what interest rate you are being charged on your debts, to know where to prioritise overpayments.

HTH

Domino9

ceh209

Frodobaggins wrote: »

Household Information
Number of adults in household........... 4
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2200
Partners monthly income after tax....... 1100
Benefits................................ 135
Other income............................ 300
Total monthly income.................... 3735

What's your household situation? e.g. are the adults grown up children and the other income their contribution to the household expenses? Or do you have a lodger? This will help people to make suggestions regarding your outgoings.

Frodobaggins wrote: »

Monthly Expense Details
Mortgage................................ 350
Secured/HP loan repayments.............. 699 Secured on what? From your debts below it looks like partly a car and partly on the house?
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 80 Gas and electric together are huge! Are you in arrears?
Gas..................................... 120
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 12
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 40 Non-essential, even if the kids think otherwise!
Internet Services....................... 20 Have you looked for cheaper? Can be as low as 6.50 if you're in the right areas
Groceries etc. ......................... 400 How many are you feeding? Even if 6 people it could maybe be reduced a bit
Clothing................................ 20
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 45
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 0
Buildings insurance..................... 45 Shop around for cheaper, seems high for your house value? Although I presume it includes contents aswell?
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2140

Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 103000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 50746....(350)......0 Need APRs on all debts to advise which to pay off first
Secured Debt.................. 34918....(530)......0
Hire Purchase (HP) debt ...... 6976.....(169)......0
Total secured & HP debts...... 92640.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................7571......360.......0
provident......................3507......400.......0
catolgues......................3896......292.......0
Total unsecured debts..........14974.....1052......-

Monthly Budget Summary
Total monthly income.................... 3,735
Expenses (including HP & secured debts). 2,140
Available for debt repayments........... 1,595
Monthly UNsecured debt repayments....... 1,052
Amount left after debt repayments....... 543 Do you really have this every month? Start a spending diary if not
Personal Balance Sheet Summary
Total assets (things you own)........... 103,000
Total HP & Secured debt................. -92,640
Total Unsecured debt.................... -14,974
Net Assets.............................. -4,614

Hi I've made a few suggestions and asked some questions which should help other people make suggestions. Good luck with your debt-free journey, you will get lots of support here :A

ceejaydee23

i too was gonna say £400 a month on grocery shopping is extortionate! we have 4 mouths to feed and i'm just learning to cope with £60 a week! it can be done, and still have things left in the freezer (i just have to still be a little tougher on myself)

Frodobaggins

Hi guys,
thanks for all your replies. The adults in our house are grown up children who work and contribute £300 between them (other income).
I dont have £500 surplus per month I accidently forgot to list £10863 credit card and £2995 bank overdraft. I am at the max limit with cards dont pay much more than minimum each month, then us it to pay toward catologues, therefore never actually reducing cc balance.
I didn't find SOA easy to understand so to clarify:

I earn roughly £2200
partner £1100
child benefit £ 135
children contribute£300
TOTAL = £3735

£50746 mortgage
£34918 2nd mortgage (secured)
£6976 HP car (wasnt that much when bought 2 yrs ago!)
£7571 bank loan only 21 payments left (originally £25000)
£3507 provident loans which we were using to live on and pay debts
£3896 calolgues
£10863 credit cards
£2995 overdrafts

I calculate my outgoings to be £3682 but always extra expences need to find.


I already work around 60 hours a week so think working more not realistic for me. I have switched electric supplier in last few weeks and seem to be saving around £5 a week. Dont know how gas is so high have queried this but just told that what we use.
Wedo seem to use much on shopping so possible saving there?
I hope to use any surplus to pay off cards, and as the provident and catolgues end use that money for cards.
We really spent nothing on presents at xmas and children fully supportive of clearing debts, they want to forgo family holiday this year to help get straight!
Much appreciate time and efforts in helping me.

BILLIE

Hi Frodo - well done on posting your SOA (braver than me). What you have to do is stop using the cards - hard I know, but all the time you are using you are not helping yourself. I had debt (more than yours in total). I cut up the cards and just used cash for food etc., All household bills came out by SO/DD and what was left was used towards debts. I wrote to the card providers and asked for reduced payments - 2 were/are really helpful and accepted my offer and stopped interest so that way all the payments are reducing the total. As for the others I worked hard to get them down below their limits and just keep plodding on. Took a 2nd job, although as you work 60 hours that is not easy. You say your children are adults and want to help - maybe (and this is a maybe) could they pay towards one of the debts each month to help out? When I was really down and out and in a horrible place I plucked up the courage to ask a family relative for help and the response was "why didn't you say - if I don't know you need help I can't give it". So might be worth having a family pow wow. Good luck - takes time but you will get there. Billie xx

Frodobaggins

Thanks for all your suggestions. I think getting kids on board is good idea. Not sure about contacting card companies, whats that about?
3 adults in house are men so reducing shopping bill a challenge but gonna give it my best.
My son has offered to pay satalite and broadband charges as he wants to keep sports chanels. Really good idea to ask family for help.
Many thanks for all your help.

Verbatim

Hi there,

I agree about not using the cards, they'll just make the debt bigger. I don't know how big your house is but have you got room for a lodger or a foreign student? Even if it was for a few months only you could focus on using the money for a specific debt. Could the adult children pay a little more? Again try to allocate any extra to a specific debt rather than letting it disappear into the general bank account. Pay minimums to all debts except the one charging the most interes and concentrate on paying that off first. This is called "snowballing"and will ensure you pay the least interest overall. The only time where this does not hold good is for loans where there's an early repayment charge.

In order to bring down the grocery spend you need to plan. So based on what you have in the cupboard/freezer make a meal plan and then a shopping list of the extras you need to make the meals. Then stick to it with the intention of buying as little as possible. Make double and freeze half, use basic/value brands or at least try them. if you have a tumble dryer try not to use it, turn off lights and chargers, computers etc when not in use. Is the heating on longer or higher than necessary?

It sounds as if you have a good idea about where you need to go with this already so I hope the putting it into action goes well.

Frodobaggins

Thanks for your feedback. I hav considered cutting up cards but I pay off £470 per month and use them to pay catolgues to avoid interest charges. I know I shouldn't do this but if I miss the catolgue payment the interest charged is about £80 a month, so dont know best thing to do.
Frodo x

pennypusher

Hi try to cut down your gas and electricity usage. Either get an energy monitor to see where you are using electricity or think about the things that cost the most. Only have your cooker on when cooking, cut down the time you have your central heating on or turn down the thermostat, only boil enough water for your drink not a full kettle, only use the washing machine and dishwasher if you have one when they are full, hang washing on the line instead of using a tumble drier. Draw the curtains when it gets dark to keep the heat in.

Check your gas meter and check that they are billing you for the gas you have used and that you don't have any credit.

Maybe if your sons are earning a good salary you could put up their rent to £200 per month each and use the extra money to help pay off the debts quicker therefore paying less in interest. Hope this helps.

Clarie_2

hiya,
couple of suggestions for you:

please can you let us know what your apr and minimum payment is on each of the loans, cc, catalogues, overdrafts? It sounds like you need to snowball your payments to avoid interest - there is a snowball calculator somewhere around which I'm sure a longer term poster can paste teh link to for you.

Secondly, it sounds like your adult children are living very very cheaply! For their benefit, it might be worth charging them a commercial rent plus money for bills etc. It will help you out, it will help them learn the real value of living, and it might even encourage them to spread their wings (reducing food bills! ;-) )

Clarie