SOA - Gemspan - bleak!!!!

gemspan

As promised I attach my SOA. Quite dismal reading really. Its self explanatory but any more questions please just ask. I may have forgotten something.

SOA November 2006

Income at present:

£120 per month dog walking
£450 per month Tesco
£400 per month Additional Part time job
£200 per month selling ebay, car boots etc.,

Total Income: £1270 after tax

Outgoings: (eek!!!)

Mortgage: £575 (£113,500)
Council Tax: £120 (arrears!)
Black Hrse Secured: £265 (£20,000 but disputing due to PPI – should be £15,000)
Car £260 £8,000 (trying to downsize but negative equity –any advice!)
Petrol/Insurance etc., £100
Electric/Gas: £100
Phone/Internet: £ 25
Mobile Phone: £ 10 pay as you go!
Sky (basic package) £ 16 (I never go out!!!!)
Food: £100
Dogs: £ 50
Toiletries etc., £ 50

Total outgoings: £1671 (priority)

Credit Cards:
Alliance & Leicester £ 25 (£2580 reduced agreement they have offered 40% settlement)
Co-op £ 10 (£1150 reduced agreement)
Bank of Scotland £ 0 at the moment £5530
Asset Link £2200 loan with DC but planning to pay off with sale of my house
Parents £4700 planning to pay off by house sale but M&D just want to see me sorted out!
Student Loan (BOS) £13,000 - £25 per month but haven’t paid for a month.
Friend: £500


Assets:

House on market for £160,000 which leaves £27,500 when secured paid off.
Calculate I am owed around £7000 in bank charges for all my accounts in last 6 years.
£600 made from ebay and stuff still on to sell. Going to go to car boots this weekend to see what I can find to sell.

Would like to keep £15,000-£20,000 for deposit on new house but would it be better to stay here and remortgage to clear current secured debt and get rid of car for a van with no payments. Can only do this when mortgage is cleared and pay cash £1000 for a van.

I am also looking into getting a better paid job for say 30 hours a week. Something that will bring in £16-£18,000. I can also do dog shows and make and sell dog treats there. A couple are coming up in the new year.

Thanks a lot for any help

Annie

Beanietdc

Umm.. I make your income £1170 based on your figures...

gemspan

Oops, So it is. I wasn't using a calculator and have had a long day so not focussing properly.

Annie

CLAPTON

trying to clarify this

property value 160,000

less mortgage 0f 113,000
less secured loan 20,000
less selling costs 2,500 (estate agent and solicitors) (say)

net cash after sale 24,500 say

your unsecured debts including car, parents and friend add to 37,660 now some of these may be reduced by full&final settlement? It doesn't seem to me that there will be anything left to buy another property.


it might be best to rent in the short term, clear all the debts and then start saving for a new house deposit....and yes try to get a higher paying job.

i dont see that remortgaging will resolve your problems....would you be able to get a higher mortgage on your earnings?

tyllwyd

I've been trying to think of some sensible advice, but to be honest (as you already know!) your income isn't covering your debts and I can't see any tinkering around at the edges that might make any difference.

I agree with Clapton, selling and then renting for a while looks sensible so you can get back on your feet.

I've never had a student loan so I don't really know the rules, but I thought you didn't have to pay back when you are on a low income?

You said you are in negative equity with the car - is it a simple loan, and the car is worth less than the current settlement figure, or is it a more complicated arrangement?

gemspan

Hi

Thank you for your replies. The situation re my house is correct, although legal fees are £5000 for buying and selling!!!

I can't afford to pay all my debts off but wanted to reduce the major (secured!) ones so that I can then start plugging away at the unsecured. My mortgage will increased to £115,000 but I will not have the secured loan, or the loan to Link Financial. THis means that my outgoings will be reduced, I will have more money to play with to throw at debts (unsecured!) and I can then start to see a light at the end of the tunnel.

Alternatively, I can get a remortgage of £135,000 to clear the current mortgage and secured loan (if I can get the £5000 back that BHF are trying to take for PPI that I won't have the benefit of for 9 years - then I can pay other things too. I also wouldn't have the expense of legal fees of £5000.

I have looked into renting in the short term until I get back on my feet but nobody is interested in taking me on because I have dogs. So that idea isn't feasible as me getting rid of my dogs is like asking somebody to get rid of their children. I live on my own, don't have kids and my dogs are my family so that is a real no go area.

The SOA is correct at the moment but I am looking for a better paid job to bring in more money and I hope to get one fairly quickly in the new year.

I hope this makes sense.

Thanks
Annie

Just wanted to add that my car is on HP. I have almost 2 years left to run. I want to get rid of it as it is a big car, with big bills to pay, and change it for a van but I will still have money left to pay on it if I traded it in so is there anything I can do. I dont think so!!!!

lynzpower

gemspan

this isnt true

Thank you for your replies. The situation re my house is correct, although legal fees are £5000 for buying and selling!!!

as you wont be buying again at this stage you wont have these fees. Check out the figures in my sig. Im aiming for selling for 1200, incouding complete redecoration.most of this ( sols fees) dont need to be paid till Im sold - selling feess was 450 for me - there is less about definately. Ive used housenetwork- an online estate agent- very cheap with quidco cash back very easy to deal with.

lynzpower

if you are committed to not moving. then your food and toiletries are high. If you live with just you adn the dogs - and the dogs cost 50pcm

150 on food & toiletries for you is high, as thats more than I spend on 2- plus I bet you have a staff discount at tescos? - theres a £75 saving there with some savvy planning

CLAPTON

you might want to read this about HP debts and how you can return the car

http://www.direct.gov.uk/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DebtsAndArrearsArticles/fs/en?CONTENT_ID=10013226&chk=1uPl5U

anniestar

Welcome and good luck. What breed of dogs do you have?(am NOT going to say get rid or anything like that- last person in the world to do that LOL-see my other posts!) just being nosey!!!

CLAPTON

ok if renting is ruled out because of the dogs

options are then

a. stay as you are:
even with (say) returning the car and getting a better job you still couldn't pay the priority bills unless the job was substantually better

can you let a room or two in the property??

b. remortgage to pay off the secured loan...
-have you checked you could get a remortgage given your level of debts? if so what would the repayments be?

and again can you let a room or two out?

c. sell and buy

again what would the mortgage repayments be?