Please Advice and help needed

needtogetout

thx lauzullen

recalculated again the SOA

Monthly income after tax................ 1900 (this is after overtime)
Partners monthly income after tax....... 1200
Total monthly income.................... 3100[/b]

Monthly Expense Details
Mortgage................................ 600 (this is property abroad my parents live there ,so can't rent it out)
Rent.................................... 775 (this is not shared ownership just rent)
Council tax............................. 112 (paid monthly)
Electricity............................. 110 (paid monthly)
Water rates............................. 293(yearly)
Telephone (land line)................... 44
Mobile phone............................ 23(checking on this one)
TV Licence.............................. 12
Groceries etc. ......................... 200 (trying to reduce it)
Clothing................................ 15
Petrol/diesel........................... 30 ( the job i do finishes very late at night or have to start very early in the morning no buses so no other option)
Road tax................................ 10
Car Insurance........................... 100
Childcare/nursery....................... 600 ((paid monthly - out of this 400 pounds is vouchers which is tax free from my and my wife's salary, so its 400 + 200)
Haircuts................................ 10
Total monthly expenses.................. 2934[/b]


Assets
Car(s).................................. 500

Total Assets............................ 500[/b]


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 45000....(600)......12
Total secured & HP debts...... 45000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Card1..........................4500......60........34
card2..........................4500......60........34
card3..........................1600......45........27.5
card5..........................350.......20........27.5
card4..........................2000......50........27.5
Total unsecured debts..........12950.....235.......-


Monthly Budget Summary
Total monthly income.................... 3,100
Expenses (including HP & secured debts). 2,934
Available for debt repayments........... 166
Monthly UNsecured debt repayments....... 235
Amount short for making debt repayments. -69

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -45,000
Total Unsecured debt.................... -12,950
Net Assets.............................. -57,450

i need to check on the child benefit/tax credit thing.thx burntfingers

Well done for posting. One thing that leaps out is the car. Everyone seems to claim theirs is essential but if you only spend £30 a month on petrol, could you not sell it and get the occasional taxi for really awkward journeys?

i wish i could jump out of the car. i got the job bcoz of the car in first place

i need to work out on this SOA once again
and i''ll post it very soon the exact picture.might have missed some bits and bobs need to find out all

lauzellen

Rent seems high - is this competitive for where you live?

With regards the childcare - have you included the £400 pcm of vouchers within your income? Or are those income figures after the childcare vouchers are taken off? I ask as this makes a big difference to your SOA.

Can you pay the water monthly instead of once a year to spread the cost? Although the SOA above shows you are short for making debt repayments this would only occur in that one month that you pay the big chunk out for water.

With regards to your house that has a mortgage on it is it sat empty? - Just saw your edit to your post - is there any way your parents can contribute towards the mortgage? Or would it be possible to get a lower interest rate?

Clarie_2

Hiya, thanks for the SOA that's great. Well done you, this is your first big step done, and hopefully you have found it helpful just doing it, even before you get comments.

Obviously, your big thing is the two housing costs, rent and mortgage. It makes sense you don't want to sell right now - renting out your house in the meantime seems the obvious thing to do! you have to pay for upkeep anyway, and you should be able to rent it out for enough to cover the mortgage on it, and if you are savvy, even make something from it.

Ok, so managing debts and starting up ebay biz:
1) will ebay biz be on top rather than instead of your current income? If it's instead of, that could be risking with your committed outgoings.
2) I take it you are no longer using cards? Do you have a repayment plan like snowballing (if you don't know what this is just say and someone will post a link) or are you paying minimums each month? THey are all on very high aprs - is your credit good enough to get some of them on a lower apr by doing balance transfers? You can get some good 'rates for life of balance' which would help you a bit.
3) do you really have 224 pounds left each month? If not where does it go?
4)HOw much will your ebay biz cost in start up and to run? Have you got a business plan for it?

Clarie

PS sorry just saw that your parents live in the house you pay mortgage on. Is there any way they can contribute to the costs of this? take in lodgers / claim benefits etc?
PPS The interest on the mortgage seems high? Any way of getting a lower deal?

needtogetout

hi
thx for the replies , this site is really very helpful

i'll post a detailed SOA tomm bcoz im off tomm and me and my wife can sit together and workout everything
then i'll post it

thx once again

dancingfairy

Hi - according to your SOA you should have around 200 a month spare when you've redone it to calculate the water over 10 months.
It sounds strange but 200 is actually pretty easy to loose every month - you proably spend it on some or all of the following - entertainment -ie ccinema, meals out,drinks out, car maintenace?, presents for birthdays? holidays? bus tickets? makeup, cd's,dvd's, clothes - you probably spend more than 15 a month on average I'd guess? , food in the supermarket -especially when you only went in for bread and milk and ended up with loads of bargains, coke/bottled water, crisps, snacks, coffee on the way to work/at work, cigarettes, magazines etc etc. A spending diary and also a look back over recent bank statements should help you figure out where it's going - you may need to amend your SOA as you go along until you know the exact figures. Once you know your weaknesses you can take action.
Hopefully you can free up most of this 'spare' 200 pounds and start to put it to good use to start hammering those debts down before they get more out of control.
Best of Luck
df

needtogetout

hi everybody
this is my revised SOA the previous one had some mistakes which has been rectified

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 1200
Benefits................................ 42
Total monthly income.................... 3142[/b]

Monthly Expense Details
Mortgage................................ 600(paid monthly)
Rent.................................... 775(paid monthly the cheapest rent in our area)
Council tax............................. 112(paid monthly)
Electricity............................. 110(paid monthly)
Water rates............................. 25(paid monthly)
TV+ broadband package................... 44(paid monthly)
Mobile phone............................ 28(paid monthly)
TV Licence.............................. 12(paid monthly)
Groceries etc. ......................... 200(paid monthly)
Clothing................................ 15
Petrol/diesel........................... 30
Road tax................................ 68(paid 6 monthly)
Car Insurance........................... 95
Childcare/nursery....................... 600(paid monthly , in this 400 is voucher which is deducted from my salary before it is taxed)
Haircuts................................ 10
Total monthly expenses.................. 2724[/b]


Assets
Car(s).................................. 500
Total Assets............................ 500[/b]


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 45000....(600)......12
Total secured & HP debts...... 45000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
card1..........................4500......55........34
card2..........................4500......55........34
card3..........................1600......35........27
loan2..........................13000.....450.......13
loan1..........................18000.....555.......17.4
card5..........................350.......25........27
card4..........................2000......40........27
Total unsecured debts..........43950.....1215......-


Monthly Budget Summary
Total monthly income.................... 3,142
Expenses (including HP & secured debts). 2,714
Available for debt repayments........... 428
Monthly UNsecured debt repayments....... 1,215
Amount short for making debt repayments. -787

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -45,000
Total Unsecured debt.................... -43,950
Net Assets.............................. -88,450

This is the real picture, any suggestion where should i start from, and i want to pay all these off w/o going bankrupt or iva route,can it be done

[Deleted User]

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 1200 (Anyway to increase?)
Benefits................................ 42 (Are you claiming all that you are entitled to?)
Total monthly income.................... 3142

Monthly Expense Details
Mortgage................................ 600(paid monthly)
Rent.................................... 775(paid monthly the cheapest rent in our area)
Council tax............................. 112(paid monthly)- see if you can spread this over 12 instead of the usual 10 months
Electricity............................. 110(paid monthly) - this seems very high, even if you are electric only - check on comparison sites like USwitch to see if going with a different company would be cheaper - and if so check if that company is offering cashback from one of the cashback sites (Quidco, Onepoll, Topcashback)
Water rates............................. 25(paid monthly)
TV+ broadband package................... 44(paid monthly)- can you drop the package - cut out the TV maybe?
Mobile phone............................ 28(paid monthly)- pretty high, eben for two,if stuck in a contract drop a tariff, if/when out of contract look at SIM only deals (some good £10pm deals), or go PAYG
TV Licence.............................. 12(paid monthly)
Groceries etc. ......................... 200(paid monthly)- Try meal planning, batch cooking, shopping at cheaper supermarkets (lidl/Aldi)etc
Clothing................................ 15 (essentials only for now)
Petrol/diesel........................... 30
Road tax................................ 68(paid 6 monthly) -divide this figure by 6 otherwise it will distort the SOA result (and perhapse budget 1/6th every month so it doesn't all come out from one month)
Car Insurance........................... 95 (Very high - shop around)
Childcare/nursery....................... 600(paid monthly , in this 400 is voucher which is deducted from my salary before it is taxed)(so should this only show £200 on the SOA, or have you put your pre-taxed salary at the top - again confirm this is the correct figure or it will distort the SOA's totals)
Haircuts................................ 10
Total monthly expenses.................. 2724


Assets
Car(s).................................. 500
Total Assets............................ 500
Your property should be here as an asset


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 45000....(600)......12
Total secured & HP debts...... 45000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
card1..........................4500......55....... .34
card2..........................4500......55....... .34
card3..........................1600......35....... .27
card5..........................350.......25....... .27
card4..........................2000......40....... .27
loan1..........................18000.....555...... .17.4
loan2..........................13000.....450...... .13
Total unsecured debts..........43950.....1215......-


Monthly Budget Summary
Total monthly income.................... 3,142
Expenses (including HP & secured debts). 2,714
Available for debt repayments........... 428
Monthly UNsecured debt repayments....... 1,215
Amount short for making debt repayments. -787 (should this be +£400 for childcare vouchers + plus 5/6th of your car tax?)

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -45,000
Total Unsecured debt.................... -43,950
Net Assets.............................. -88,450

Do you have a good credit rating - would it be possible to transfer some of your more expensive debts to 0% cards, or low life balace cards?

In order to make up the shortfall in your SOA you need to either increase your income or decrease your spending - depending on how acurate your SOA is (you need to double check the childcare vouchers, and adjust car tax) will affect what the monthly shortfall is. If making cutbacks in your SOA will still not make your income and expenditure meet, you need to talk to one of the debt charities. Tyr CCCS, NationalDetline or CAB. They will offer you free, impartial, non-judgemntal advice whilst also being in a position to deal with all the facts of your situation. They will be able to tell you what all your options are

HTH

D9

iamana1ias

Child benefit should be more like £90 a month (£80-something every 4 weeks).

Is £1900 and £1200 your take home pay? If so you should be adding the value of your vouchers in there too.

You can claim something like £250 per month on the vouchers - why are you only claiming £200 each?

Are your figures taken from bank statements or just off the top of your heads?

needtogetout

thx iamanalias for the reply

Child benefit should be more like £90 a month (£80-something every 4 weeks).

Is £1900 and £1200 your take home pay? If so you should be adding the value of your vouchers in there too.

You can claim something like £250 per month on the vouchers - why are you only claiming £200 each?

Are your figures taken from bank statements or just off the top of your heads?

my take home salary is 1900 (the 200 child voucher is deducted before tax from gross and also overtime) same is with my partners salary. i checked with the voucher firm they said they can only pay max 220, which i am going to do.the figures are after referring to my bank statements. is there any hope in my situation.

i donno if i am right in saying- i want to finish my credit cards first then i'll have some money to put in the loan which i want to deal later, after credit cards. then the mortgage

Clarie_2

Looking at your shortfall each month I'm wondering how you've been surviving? Are you using cards to live?
I'm not sure you could shave enough off your expenses to make this up - it's basically the cost of the extra mortgage, plus some. I think it might be time to call in one of the debt charities, who can give you advice on a Debt Management Plan. This will mean you freeze your interest on your unsecured loans, pay them back what you can afford each month. It will give you defaults and a low credit rating, but it seems you wouldn't be able to borrow more anyway, and it avoids bankruptcy. So it's one option for you.

Unless your internet biz has no expenses and can bring in 700 a month? In which case you need to get some of your cards shifted on to lower rates and start snowballing the payments.