what to do with out debt

em12

Hi me and my husband have 2 personal loans totalling £35k, this has been gradually building over many years due to 2 lots of maternity leave pay cuts at work and childcare etc. We are really struggling to pay minimum payments but just about do it the loans are now for 7 years they are personal loans so not secured on our mortgage, we dont have any equity in our house. I cant see us struggling like this for the next 7 years its unbearable and kids are suffering. I am worried to get help as dont want to get bad credit and involved with bailiffs, debt collectors and nasty letters etc as wouldnt be able to cope with that. Can anyone offer any advice. My husband and i both work. thanks x

CH27

Can you post your SOA please?

There is a link further up the page.

em12

what is an soa! sorry to sound thick

PHYTHIAN

Well done Em12. You now have your head out of the sand and are facing your debt.

That is step number one and is often the most difficult to face. As mentioned above, post your SOA on here and let some of these wonderful people help you out. Untold numbers of them have been through exactly what you are ( often much much worse) and have come out the other side of it. You and your family will too. It might be hard at times, but you'll get there.

Keep you chin up.

CH27

em12 wrote: »

what is an soa! sorry to sound thick

You don't sound thick.
An SOA is a Statement of Accounts.
It details all your incomings & outgoings. There is a thread about it further up the debtdree wanabee page.

PHYTHIAN

SOA is a Statement Of Affairs. It is a template for listing all your Incomings and Outgoings as well as your assets etc.

em12

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 950
Partners monthly income after tax....... 1400
Benefits................................ 160
Other income............................ 0
Total monthly income.................... 2510
Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 42
Gas..................................... 42
Oil..................................... 0
Water rates............................. 41
Telephone (land line)................... 10
Mobile phone............................ 70
TV Licence.............................. 15
Satellite/Cable TV...................... 25
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 30
Car Insurance........................... 80
Car maintenance (including MOT)......... 0
Car parking............................. 12
Other travel............................ 0
Childcare/nursery....................... 368
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 18
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2149

Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 123000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(550)......0
Total secured & HP debts...... 115000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................25000.....410.......0
loan...........................9000......115.......0
Total unsecured debts..........34000.....525.......-

Monthly Budget Summary
Total monthly income.................... 2,510
Expenses (including HP & secured debts). 2,149
Available for debt repayments........... 361
Monthly UNsecured debt repayments....... 525
Amount short for making debt repayments. -164
Personal Balance Sheet Summary
Total assets (things you own)........... 123,000
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -34,000
Net Assets.............................. -26,000

CH27

Your grocery bill is very high. You could reduce that a lot. Look on the Old Style board for tips.

Your mobile costs are high. Can you swap to pay as you go or reduce tarrifs?

Are you eligible for childcare vouchers?

Do you really need two cars?

How long do the loans have to run?

How long will you have to pay so much childcare?

Could you cancel your Sky?

em12

with paying for nappies, wipes etc i cant seem to get grocery bill down but can continue to try. Mobile is high and am working on that but it does include internet as well and that is the bill for mine and husbands. Sky is offer at £25 month but when offer finishes it is going. We have to have 2 cars as school is not local and we both do drop off and pick ups to work round shifts. Thanks appreciate all the advise i can get.
ps loan has 7 years on it

CH27

Re the groceries,
Do you meal plan?
Could you drop a brand?
Do you batchcook?
Do you cook from scratch?

Look at the Old Style board & they have loads of great tips to reduce spending.
I spend £250 per month on 2 adults & a teenager who eats me out of house & home.

Heyman_2

The big-hitters there are undoubtedly your grocery bill and car bills (petrol/insurance/tax etc).

If you absolutely need two cars, can you do any car-pooling with anyone at your work places? i.e. you pick them up and they give you some money towards expense?

Nappies/Wipes/Nappy bags etc can be very expensive - do make sure you're getting the best deal and bulk buy where possible. Asda always do 2 big packs of their own brand nappies for £10 which we find is usually the best deal, occasionally they do Baby events where they do really good deals on nappies/wipes etc. Alternatively you could get the reusable nappies as these apparently save lots of £££s over time. Is baby on solids yet? Food in jars is ridiculously expensive, lots of ways to get baby food costs right down.

£70 mobile cost is obscenely high, even if it does include internet. If you are out of contract on those, google HotUKDeals as great mobile/internet deals are always posted on there (example £5-£10 for monthly mobile tariff which includes minutes/texts/internet allowance!!!), as well as supermarket/baby deals.

Hope all of that helps a bit!