id be very grateful for any advice on what to do

rubbish_rosie

Hi

Im not sure where to turn, im worried about doing the wrong thing. Should we keep trying to pay our debts off or consider an IVA. Its got to the point where I cant concentrate on anything but money and bills.

We have a fair income but our outgoings are mounting. We have had our house valued as we considered going into rented accomodation to save money but house prices have dropped and the house was valued at approx 170,000 - 175,000, our mortgage is for 180,000. This is an interest only mortgage and we need to change it as the interest rate goes up in December. There is an early redemption fee of 5,000 before Dec 11.



Here is a brief break down of incomings and outgoings. Our bills and mortagage are in joint names - the credit cards and loans are in sole names.

Me: Salary - take home approx 800 (11,180 pa)
Child maintenance 450
DLA (son) 263
chid benefit 165

Partner: Salary 2320 (40,000 pa)

Outgoings

Mortgage 865
Life !!! 142
Gas/Elec 143
Council Tax 135
Water 40
Car Insur 45
TV Licence 25
House insur 30
Maintenance (Child) 300
Mobile 45 (tied in for another 14 months)

Loans per month
290 (approx 10,500 left to pay)
199 (arrpox 6,500 )
128 (aprox 510 )

Overdrafts
6000 Fee 5 per month
6000 Fees approx 55
3000 Fees 5 per month
3000 Fees approx 5

Credit cards

Next 1600 approx 150 per month
Lloyds 6500 aprox 120
Virgin 8500 (3 months in arrears) interest approx 220 per month
Virgin 2700 approx 80
Asda 1450 approx 40
Barclay 2400 approx 60
Barclay 1900 aprox 50


I have 3 under 16's living at home and an over 18 at home part time.
I am looking at getting another part time job as I only work 30 hours per week.

All bills are upto date apart from one Virgin card in my partners name, which I have been thinking of getting a loan to pay it off but feel I need advice before I do anything with these debts.

I really dont know which way to turn, I am worried about doing anything before we have changed our mortgage.

Please help.

Thank you for reading this.

nic_santorini

Although you have popped your outgoings here, it is probably best to fill out a SOA - Statement of Affairs and then I am sure you will get more specific help. I hope someone can help you locate it on here. Have you spoken with CAB yet re your debt? Another loan may not be the best way forward.

kezlou

Hi rosie

Just wanted to say yu've come to the right place, there's also someone on here to regarding getting of debt, dmp's etc

What i would do is put up a proper SOA which goes through every little thing form fuel costs, grocery rent etc.
http://www.makesenseofcards.com/soacalc.html

That way its easily set out and maybe we can comes up with ideas.

Anyway just wanted to let you know you've done the hardest thing, i.e posting n here.

Hang in there

zarazara

Hi Rosie, welcome to the board,its an important first step and you have taken it by posting. Well Done. Firstly i tihnk you should change your forum name,you are not rubbish! Next, please post your SOA ,we can all take a look and see what we can do to help you.

rubbish_rosie

Here is my SOA. I am not sure of interest rates on the overdrafts - ill have to investigate.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 800
Partners monthly income after tax....... 2300
Benefits................................ 420 Child benefit and DLA (for my son)
Other income............................ 450
Total monthly income.................... 3970

Monthly Expense Details
Mortgage................................ 868
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135
Electricity............................. 71
Gas..................................... 71
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 24
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 410
Clothing................................ 50
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 42
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 300
Medical (prescriptions, dentist etc).... 7.25
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 142
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2426.25


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 173000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(868)......0
Total secured & HP debts...... 180000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................1600......160.......0
Barclay Card...................1827......41........24.9
Barclay card...................2400......60........24.9
Loan...........................540.......130.......0
Loan...........................6000......199.......0
Loan...........................10000.....290.......0
Alliance overdraft.............6000......5.........0
Alliance overdraft.............3000......5.........0
Lloyds overdraft...............3000......35........0
Lloyds overdraft ..............6000......65........0
lloydstsb......................6200......120.......24
virgin.........................2732......58........19.9
Virgin.........................8400......290.......29.9
Asda...........................1423......36........20
Total unsecured debts..........59122.....1494......-

Monthly Budget Summary
Total monthly income.................... 3,970
Expenses (including HP & secured debts). 2,426.25
Available for debt repayments........... 1,543.75
Monthly UNsecured debt repayments....... 1,494
Amount left after debt repayments....... 49.75
Personal Balance Sheet Summary
Total assets (things you own)........... 173,000
Total HP & Secured debt................. -180,000
Total Unsecured debt.................... -59,122
Net Assets.............................. -66,122


I look forward to hearing for anyone with advice. Thank you.

tbourner

Why so much for life insurance? Are you paying for unemployment cover and all that jazz as well? We cancelled our all singing insurance and now pay just under £25 a month - check your death in service cover from work as well, if your hubby gets 4x for example he won't need any insurance cover really.
And the gas and electric is HUGE!!! Have you tried switching? Have you tried switching things off!!!
You could probably cut down on the groceries, but this is where we struggle so I can't really preach.

I would say you need to budget more for car maintenance though, I know most don't but cars can cost silly money randomly unless you've got some fancy warranty that covers everything.

GeorgieFTB

rubbish_rosie wrote: »

Here is my SOA. I am not sure of interest rates on the overdrafts - ill have to investigate.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 800
Partners monthly income after tax....... 2300
Benefits................................ 420 Child benefit and DLA (for my son)
Other income............................ 450
Total monthly income.................... 3970

Monthly Expense Details
Mortgage................................ 868
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135 - are you paying over 10 months? could change to 12 or use the two 'free' months to pay more to debts
Electricity............................. 71 - massive, turn off stuff, look on comparision site for the cheapest, you can also brorrow a smart meter from the library to see what is costing so much
Gas..................................... 71 - see above for comparision sites
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 0
Mobile phone............................ 45 - already said you are tied but can you drop a tarrif?
TV Licence.............................. 24 - when does this drop to 12?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 410 - you should be able to save here, drop brands etc, the old style board should help
Clothing................................ 50 - I take it this is for kids clothes, can you ebay whatever they have out grown, I have two boys and this doesn't work for me as they ruin all clothes!
Petrol/diesel........................... 150 - are all trips nessesary, can you cut down any?
Road tax................................ 20
Car Insurance........................... 42 - comparision sites again...
Car maintenance (including MOT)......... 15 - might need more here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 300
Medical (prescriptions, dentist etc).... 7.25
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 142 - others have already said, v large I'd look to cut down
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - there should be something here
Haircuts................................ 10
Entertainment........................... 0 - something here as well, the kids must want some money to do stuff
Holiday................................. 0
Emergency fund.......................... 0 - nothing? What if you're boiler goes?
Total monthly expenses.................. 2426.25


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 173000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(868)......0
Total secured & HP debts...... 180000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................1600......160.......0
Barclay Card...................1827......41........24.9
Barclay card...................2400......60........24.9
Loan...........................540.......130.......0
Loan...........................6000......199.......0
Loan...........................10000.....290.......0
Alliance overdraft.............6000......5.........0
Alliance overdraft.............3000......5.........0
Lloyds overdraft...............3000......35........0
Lloyds overdraft ..............6000......65........0
lloydstsb......................6200......120.......24
virgin.........................2732......58........19.9
Virgin.........................8400......290.......29.9
Asda...........................1423......36........20
Total unsecured debts..........59122.....1494......-

Monthly Budget Summary
Total monthly income.................... 3,970
Expenses (including HP & secured debts). 2,426.25
Available for debt repayments........... 1,543.75
Monthly UNsecured debt repayments....... 1,494
Amount left after debt repayments....... 49.75 is this really left at the end of the month? If yes great put that to you're debts, if not then you will need a spending diary, and to re-do your SOA when you have more accurate numbers
Personal Balance Sheet Summary
Total assets (things you own)........... 173,000
Total HP & Secured debt................. -180,000
Total Unsecured debt.................... -59,122
Net Assets.............................. -66,122


I look forward to hearing for anyone with advice. Thank you.

All is not lost, when you stop paying the small loan you will have an extra £130 to throw at your debts, it might be a long slog though.

Can you get the rest of the family on board as well, how much is the over 18 contributing, or are they at uni, you said part-time. You will probably have to get the other kids on board as well.

Good luck and welcome to the board.
Gx

NeverAgain_2

Approaching £60,000 of unsecured debt, a house in negative equity, a £900 a month interest-only mortgage, and five mouths to feed.

On the plus side there is a decent income.

Even if all interest is frozen, it's going to take years and years to repay the cards and overdrafts.

I think you need to urgently consider bankruptcy.

You say you are already thinking of going into rented property.

Going bankrupt should give you a fresh start far sooner than struggling with debt repayment plans.

You could be renting and effectively debt-free within a few months.

The only fly in the ointment might be the large income, which the official receiver may want a part of.

kezlou

Hi Rosie,

how are you today?

rubbish_rosie wrote: »

Here is my SOA. I am not sure of interest rates on the overdrafts - ill have to investigate.

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 800
Partners monthly income after tax....... 2300
Benefits................................ 420 Child benefit and DLA (for my son)
Other income............................ 450
Total monthly income.................... 3970

Monthly Expense Details
Mortgage................................ 868
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135 is this over 10 months?
Electricity............................. 71 can this be reduced? check comparison sites and see if moving to another supplier if there is a better deal?
Gas..................................... 71can this be reduced? check comparison sites and see if moving to another supplier if there is a better deal?
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 0
Mobile phone............................ 45 could you drop down a tariff?
TV Licence.............................. 24
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 410 this could be reduced with care, i feed the four of us for about £200 or less. Takes time but can be done. Head over to the old style board for advice.
Clothing................................ 50 could you maybe reduce this further by only things as and when needed?
Petrol/diesel........................... 150 could you make less journeys?
Road tax................................ 20
Car Insurance........................... 42
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 300 can these be reduced in anyway, are they essential?
Medical (prescriptions, dentist etc).... 7.25
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 142 could you just get a basic plan instead? i saw one recently for £25 that seemed okay.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2426.25


Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 173000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(868)......0
Total secured & HP debts...... 180000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................1600......160.......0
Barclay Card...................1827......41........24.9
Barclay card...................2400......60........24.9
Loan...........................540.......130.......0
Loan...........................6000......199.......0
Loan...........................10000.....290.......0
Alliance overdraft.............6000......5.........0
Alliance overdraft.............3000......5.........0
Lloyds overdraft...............3000......35........0
Lloyds overdraft ..............6000......65........0
lloydstsb......................6200......120.......24
virgin.........................2732......58........19.9
Virgin.........................8400......290.......29.9
Asda...........................1423......36........20
Total unsecured debts..........59122.....1494......-

Monthly Budget Summary
Total monthly income.................... 3,970
Expenses (including HP & secured debts). 2,426.25
Available for debt repayments........... 1,543.75
Monthly UNsecured debt repayments....... 1,494
Amount left after debt repayments....... 49.75
Personal Balance Sheet Summary
Total assets (things you own)........... 173,000
Total HP & Secured debt................. -180,000
Total Unsecured debt.................... -59,122
Net Assets.............................. -66,122


I look forward to hearing for anyone with advice. Thank you.

Not sure if thats any help or not.
My boys go through clothes, shoes etc like no tomorrow, but any good stuff i ebay and see if get anything for them. Could be an idea.

When does the £540 loan end? Could you throw any spare money at it so it finishes sooner? If not just take a deep breath that in a few months that will be gone and you'll be able to put it towards another debt.

Its hard but you will get there in the end.

rubbish_rosie

Hi

Thank you for all your helpful comments.

I agree about the life assurance and we are working at getting the gas and electricity down, I have checked and we are on the cheapest tarrif, for the first time we are slightly in credit with these services so Im hoping the payments may be reduced very soon.

I cant cut down on the mileage as I use my car for work, I work in the community.

The £300 child outgoing is for my partners maintenance for his children so there is no flexibility there.

Where do I go for help, Im worried about foing to places like cccs as from what I can gather Ill end up with an IVA whether its the right thing or not.

If I can at all help it I would like to keep the house as I feel its security for the children, we were in rented for years and have moved so many times. Renting where we are will still cost around £800, we need to live near the childrens school as they have to walk home on the days I work.

Please can someone advise me on what I should do? I feel Im drowning and need help quick, its all so consuming.

dancingfairy

Hi the good news is that you have various options available to you - the hardest bit is going to be choosing the best one:D.
A quick summary below:
1) paying off the debt - your SOA is showing is that you should be able to manage to pay everything - just. As has been said if you wait until the loan is paid off you will have an extra 130 a month to pay off the debts. This is one way of doing it which will protect your credit rating from any further damage but it's going to be a long haul.
2) an IVA - here you are allowed to pay your regular bills each month (within certain limits of course) - from your SOA this is showing that you would have approx 1500 a month to go to your creditors. You would be expected to pay this amount (or whatever is agreed) for 5 years I think it is and at a certain point you would be expected to attempt to remortgage to release any equity - if there is no equity then no worries - if there is equity and you can't remortgage then you would probably look to offer another years worth of payments taking it to 6 in total I think. After this all your debt is cancelled/written off.
3) bankruptcy - similar to number 2 above with regards to spending within guidelines etc and any surplus being given to your creditors. I think you are only expected to make payments for 3 years though. The only issue with this is the house - at the 2 year 3 month mark the official receiver will assess your situation and if there is any equity in the property then he/she will be interested and may want to sell it. It also depends on whether the official receiver thinks your mortgage is similar or less to rentals as well as if you are paying over the odds then the OR may not let you keep the house.

What I suggest is that you talk to one (or more) of the debt charities for advice and opinions. They are there to give advice only - they cannot make you do something that you do not want to do or do not understand.
IF an IVA is recommended then head over to the IVA board on here and they will help you shop around to find the best practioner for you. If bankruptcy is a possible solution for you then I would head over to the bankruptcy board for help there as well.
It looks very much like an IVA/Bankruptcy will be your best options but think it all through and get as much info and advice as you can.
As a quick starting point you can put your figures into the CCCS online calculator and it will give you an initital idea.
Best of Luck
df