Sooo much debt again argghhhhh!!!!

nuggett100

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................ 1015
Partners monthly income after tax....... 1500
Benefits................................ 175
Other income............................ 0
Total monthly income.................... 2690
Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 100
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 31
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 122
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 50
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 25
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2103

Assets
Cash.................................... 0
House value (Gross)..................... 395000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 399000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 175000...(1200).....0
Total secured & HP debts...... 175000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10430.....251.......15.3
loan...........................11500.....252.......10.9
overdraft......................500.......0.........16.9
credit card....................34........34........0
catalogue......................300.......0.........0
strore card....................350.......35........24.9
credit card....................4000......100.......0
credit card....................1000......40........24
credit card....................1200......30........16.9
overdraft......................600.......0.........16.9
credit card....................470.......25........19.9
Total unsecured debts..........30384.....767.......-

Monthly Budget Summary
Total monthly income.................... 2,690
Expenses (including HP & secured debts). 2,103
Available for debt repayments........... 587
Monthly UNsecured debt repayments....... 767
Amount short for making debt repayments. -180
Personal Balance Sheet Summary
Total assets (things you own)........... 399,000
Total HP & Secured debt................. -175,000
Total Unsecured debt.................... -30,384
Net Assets.............................. 193,616
Reproduced on Moneysavingexpert with permission, using IE browser.


I cant beleive we are in this much debt!! How the hell am i ever going to pay off all of this debt?:(:eek:

I am so hopeless with money it isnt even funny. I need an accountant to tell me what i can and cant spend i think. How do people get out of debt this bad?

majikatt

Hiya,

Many of the people here can help you, and will!

I am an accountant and if I can offer any FREE help (just to enforce that I want nothing in the way of recompense other than to have helped someone) then give me a shout

You are NOT alone!! you have taken the first step by posting!

Oh and btw, your entertainment bill would go a long way to covering the shortfall if you could shave it down!!

Foggster

nuggett100 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 4 What are the other 2 adults contributing to the household?
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1015
Partners monthly income after tax....... 1500
Benefits................................ 175
Other income............................ 0
Total monthly income.................... 2690
Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 Figure needed here
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0 This needs a figure
Clothing................................ 100 This is quite alot for 1 month - can this be reduced
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 31
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 122
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 Figure
Contents insurance...................... 0 Figure
Life assurance ......................... 50
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 This is very high for each month
Haircuts................................ 25
Entertainment........................... 150 Can you do without this for the time being?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2103

Assets
Cash.................................... 0
House value (Gross)..................... 395000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 399000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 175000...(1200).....0
Total secured & HP debts...... 175000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10430.....251.......15.3
loan...........................11500.....252.......10.9
overdraft......................500.......0.........16.9
credit card....................34........34........0
catalogue......................300.......0.........0
strore card....................350.......35........24.9
credit card....................4000......100.......0
credit card....................1000......40........24
credit card....................1200......30........16.9
overdraft......................600.......0.........16.9
credit card....................470.......25........19.9
Total unsecured debts..........30384.....767.......-

Monthly Budget Summary
Total monthly income.................... 2,690
Expenses (including HP & secured debts). 2,103
Available for debt repayments........... 587
Monthly UNsecured debt repayments....... 767
Amount short for making debt repayments. -180
Personal Balance Sheet Summary
Total assets (things you own)........... 399,000
Total HP & Secured debt................. -175,000
Total Unsecured debt.................... -30,384
Net Assets.............................. 193,616
Reproduced on Moneysavingexpert with permission, using IE browser.


I cant beleive we are in this much debt!! How the hell am i ever going to pay off all of this debt?:(:eek:

I am so hopeless with money it isnt even funny. I need an accountant to tell me what i can and cant spend i think. How do people get out of debt this bad?

A few points that may need firming up.

niccatw

You don't have any expenditure down for council tax, gas, electricity, groceries...? Are they included elsewhere?

The first thing I would do, if I were you, is to keep a spending diary of exactly where all you money is going, so you can check this is really a true reflection of what you are spending (or get out your old banks statements and go through them thoroughly).

I'd say that there's scope for reducing spending on presents and entertainment, but I suspect you've added your food shopping to them? Even so, have a look at the old style thread and get some ideas for reducing the costs.

Do you know how your credit rating is despite the debt? If you have been managing to meet all you minimun payments on time, there might be scope for negotiating with credit card companies and juggling some of those debts until they are 0%.

It looks worse than it is, you will be able to sort it out (have a look at my signature. And the debt was probably about 4k more than that at it's highest point). But it is a long, hard slog and you do need to know what are priorities for you and your family as sacrifices do have to be made. You also have to be completely honest about where your money is currently going - based on your paperwork not guesswork. (A spending diary definitely helps with this; I had no idea just how much I was spending just "nipping to the shop" or to ATM. And I could never account for the money I'd taken out of the ATM.)

Oh, and welcome to the forums

clairbear1000

At first look nothing for Groceries.

Also, you have a family of 4 adults and 2 children, are you getting some housekeeping from the other adults.

Fear not, some super clever people are on their way to give much better questions and advice than me.

Firewalker

Nuggett, I also noticed that much of your SoA is empty - you need to know what goes under the different headings. Also from what I am seeing the issue is not only, or even mainly, that you are hopless with money. There is just not enough of it, it seems. Which only means that you will have to:

1) Know exactly what you spend now
2) Have a hard look what you can live without or change (go interest only mortgage, for instance, for some time)
3) Set a budget
4) Develop the discipline to stick to it never mind what.

Easy, I say. And we will help you with all that - there are actions and tricks. But you have to get and share the information first.

Firewalker

rising_from_the_ashes

nuggett100 wrote: »

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................ 1015
Partners monthly income after tax....... 1500
Benefits................................ 175
Other income............................ 0
Total monthly income.................... 2690 Do the other 2 adults contribute or is this included in these figures?
Monthly Expense Details
Mortgage................................ 1200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 Should be something here
Electricity............................. 0 & here
Gas..................................... 0 & here if you have gas
Oil..................................... 0
Water rates............................. 0 Are you in Scotland? Otherwise need something here
Telephone (land line)................... 0 No landline?
Mobile phone............................ 65
TV Licence.............................. 0 You need to include this - just over £12/month
Satellite/Cable TV...................... 0
Internet Services....................... 0 No broadband?
Groceries etc. ......................... 0 Need to include this
Clothing................................ 100 Cut back on this - use clothes you have
Petrol/diesel........................... 200
Road tax................................ 10
Car Insurance........................... 31
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 122
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 Need something here
Contents insurance...................... 0 & here
Life assurance ......................... 50
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 Need to cut this drastically
Haircuts................................ 25
Entertainment........................... 150 Need to cut this too
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2103

Assets
Cash.................................... 0
House value (Gross)..................... 395000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 399000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 175000...(1200).....0
Total secured & HP debts...... 175000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................10430.....251.......15.3
loan...........................11500.....252.......10.9
overdraft......................500.......0.........16.9
credit card....................34........34........0
catalogue......................300.......0.........0
strore card....................350.......35........24.9
credit card....................4000......100.......0
credit card....................1000......40........24
credit card....................1200......30........16.9
overdraft......................600.......0.........16.9
credit card....................470.......25........19.9
Total unsecured debts..........30384.....767.......-

Monthly Budget Summary
Total monthly income.................... 2,690
Expenses (including HP & secured debts). 2,103
Available for debt repayments........... 587
Monthly UNsecured debt repayments....... 767
Amount short for making debt repayments. -180
Personal Balance Sheet Summary
Total assets (things you own)........... 399,000
Total HP & Secured debt................. -175,000
Total Unsecured debt.................... -30,384
Net Assets.............................. 193,616
Reproduced on Moneysavingexpert with permission, using IE browser.


I cant beleive we are in this much debt!! How the hell am i ever going to pay off all of this debt?:(:eek:

I am so hopeless with money it isnt even funny. I need an accountant to tell me what i can and cant spend i think. How do people get out of debt this bad?

Hello, welcome & congratulations for having your LBM.

A couple of suggestions/queries from me!

[Deleted User]

You need to keep a spending diary noting down everything that you spend from a carton of milk to the mortgage and everything inbetween.

As others have noted above, you have a lot missing from your SOA, Council tax, groceries, utilities, home isurance. Even without including all of these expenses you are short every month.

Also it seems that you have 4 adults in the house and only two are contributing anything (Are they covering the cost of the other bills?).

There are also several areas that you can cut down on in your SOA:
Mobile phones (not sure how many this is for, but if you are in contract see if you can drop a tariff or two), if/when out of contract look at PAYG/SIM only deals, there are some good ones out there for £10pm
Clothing £100 a month is very high, buy essentials only for now and wear what you have. If you have been spending that much on clothes every month your wardrobe must be bursting at the seems - sell what you no longer wear on E-bay
Presents again £100 per month is quite a lot of money to be spending every month, especially as you cannot afford it right now. Drop for now.
Entertainment again, cut this back, it's quite a lot to spend and you just cannot afford it

Your mortgage payment seems high, especially relative to your income - whilst no one here would recommend shifting any unsecured debt to secured det, would it be possible to extend the length of your mortgage freeing up more cash to paydown the debts? You could always reduce it again once debt-free?

I have put these debts in the order that you should be making overpayments to them (if you can - once you've updated your SOA, this will be clearer). They are in the order from the one that is the highest cost to you, to the one that's costing you the least.

Description....................Debt......Monthly.. .APR
strore card....................350.......35........24.9
credit card....................1000......40........24
credit card....................470.......25........19.9
overdraft......................500.......0........ .16.9
credit card....................1200......30........16.9
overdraft......................600.......0........ .16.9
loan...........................10430.....251...... .15.3
loan...........................11500.....252...... .10.9
credit card....................34........34........0 (Is this 0%? If so for how much longer, and can you switch some of your most expensive debt to it? What is the credit limit on this card?)
catalogue......................300.......0........ .0 Is this 0%, and are you making no payment to it?
credit card....................4000......100.......0 Again, is this 0%, how long for? What's the credit limit? and can you switch some of your more expensive debt to it?)
Total unsecured debts..........30384.....767.......-

HTH

D9

nuggett100

Hi guys and thank you soo much for all the help and advice so far.

Our SOA is slightly different and let me explain why. I should have pointed this out sooner really. We live with my parents and my husband shares the mortgage with them. We give them £1200 per month and this covers everything, mortgage, food, bills, council tax etc. We transfer this amount to them every month and let them worry about the rest. This is why we have 4 adults in the household. Make sense? This month my husband has had a flat pay month and it is shocking!!!! We have not a penny spare for anything this month and i hate it!! Need to sort ourselves out once and for all. We always pay our debts on time and have no defaults on our accounts so credit ratings are great.

Thnks again for the help and advice. x

Marine_life

You have a lot of equity - why not remortgage?

dancingfairy

Is the house jointly owned or does he just pay a contribution towards the mortgage?
Is the amount you pay towards bills a fair share do you think? Obviously you shouldn't rip off your family but you are struggling right now so it might be worth revisiting if you can.
You've been given loads of advice re cutting your outgoings so far but I agree with Domino - can you get in touch with you card provider that only has 34 on it and ask if they have any balance transfer deals etc and shift the most expensive debts on to it.
Any way of earning a little extra - any spare childrens clothes you can ebay/car boot? etc
df