Advice on Clearing approx £40,000 debt

SimonDeVerde

Thanks superbiatch.


As most of the debt is mine she'd rather I pay it off myself rather than "bleeding her dry"

Regards
SDV

GeorgieFTB

SimonDeVerde wrote: »

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................ 1375
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2775
Monthly Expense Details
Mortgage................................ 200
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 50 - check comparision sites to make sure you are getting the best deal
Gas..................................... 50 - ditto
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20 - this could be lumped into the TV
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 0
Groceries etc. ......................... 300 - this could be cut to £200 with not too much effort, check out the old style board
Clothing................................ 100 - this should be cut out, if it's the other halfs you might be able to make a deal with her
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 20
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50 - whats this? could it be cut down
Medical (prescriptions, dentist etc).... 30 -can you look at pre-pay for prescriptions or is the medical insurance?
Pet insurance/vet bills................. 0
Buildings insurance..................... 20 - check comparision sites you should be able to get buildings and contents for about £20 together
Contents insurance...................... 20 - see above
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - should have something in here
Haircuts................................ 20
Entertainment........................... 200 - you can cut this back
Holiday................................. 0
Emergency fund.......................... 0 - need something here
Total monthly expenses.................. 1342

Assets
Cash.................................... 0
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 134000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 4000.....(200)......9
Total secured & HP debts...... 4000......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................13000.....428.......13.7
BOS............................11000.....320.......27.95
BOS ONE........................2000......34........27.95 - I would concentrate on this debt, highest apr and small, good to knock one off early:D
MBNA...........................925.......30........25
Virgin.........................1850......46........23
EGG............................4300......120.......25
Total unsecured debts..........33075.....978.......-

Monthly Budget Summary
Total monthly income.................... 2,775
Expenses (including HP & secured debts). 1,342
Available for debt repayments........... 1,433
Monthly UNsecured debt repayments....... 978
Amount left after debt repayments....... 455
Personal Balance Sheet Summary
Total assets (things you own)........... 134,000
Total HP & Secured debt................. -4,000
Total Unsecured debt.................... -33,075
Net Assets.............................. 96,925

What did the money get spent on? Is there anything you can sell to help out?

I think I remembered a comment that sounded like your wife wasn't on board. If I'm wrong feel free to ignore the next paragraph.

If the debts were spent on the family they are hers as well, you may have to win here round, produce your family SOA, and use a snowball calculator to work out when you will be debt free, then you can let her know how much 'spare' cash you will have when you are debt free, and how much your family are paying in interest. It might just help her to cut back.

If they really are just your debts you still might want to let her know your plans, ask for help, let her know that if you owed her, it would be cheaper for both of you and you could come to an agreement *wiggly eyebrows smiley* If you paid her back it would work out cheaper in the long run.


Good luck
Gx

themull1

Do you not get child benefit?

[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................ 1375 Any way to increase? Overtime? Second job?
Partners monthly income after tax....... 1400 as above
Benefits................................ 0 Are you claiming all that you are entitled to? Child benefit maybe?
Total monthly income.................... 2775

Monthly Expense Details
Mortgage................................ 200
Council tax............................. 90 Are you paying this over the usual 10 months? Can you spread the payment over 12 (ask your council) and this will reduce the monthly payment a bit
Electricity............................. 50 ensure that you are on the cheapest tariff for your area (eg USwitch), often online and duel fuel are cheaper. If switching is cheaper then don't forget aabout the cashback sites (eg Quidco, onepoll cashback, topcashback)
Gas..................................... 50 as above
Water rates............................. 30 Are you on a meter? Perhapse one would work out cheaper
Telephone (land line)................... 20 does this include internet?
Mobile phone............................ 0 no mobile phones?
TV Licence.............................. 12
Satellite/Cable TV...................... 20 consider freesat/freeview as an alternative
Internet Services....................... 0
Groceries etc. ......................... 300 This can easily be reduced - meal plan, batch cook, drop brands, shop with a list, cheaper supermarkets (lidl/aldi) - take a look at the old style board for hints and tips on reducing groceries and cheap meal options
Clothing................................ 100 very high, buy essentials only until debt free - also with this amount of expenditure you must have a wardrobe bursting at the seams, have a good clear out and e-bay what no longer fits/you no longer wear
Petrol/diesel........................... 100 are all journeys essential?
Road tax................................ 10
Car Insurance........................... 20
Car maintenance (including MOT)......... 0 probably need something here - MOT? Service?
Other child related expenses............ 50 What does this cover? Is it good value? Can you get the same or similar elsewhere for less?
Medical (prescriptions, dentist etc).... 30 If this is prescriptions then look into getting a pre-paid certificate, it could well work out much cheaper. If contacts, then look at buying online to save a little
Buildings insurance..................... 20 when you can renew, look at comparison sites and see if you can get the same cover for cheaper elsewhere - also combined might save some
Contents insurance...................... 20 as above
Presents (birthday, christmas etc)...... 0 never? Birthdays? Christmas - it's a good idea to save a little every month to cover these, then when they come around they don't break the bank and blow your budget
Haircuts................................ 20
Entertainment........................... 200 This is very high - what does it cover? Can it realistically be cut back? Use couchers and offers for things like cinema and meals out etc
Total monthly expenses.................. 1342

Assets
House value (Gross)..................... 130000
Car(s).................................. 4000
Total Assets............................ 134000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 4000.....(200)......9 It won't be that long until this is gone freeing up £200 per month, but you are on a very high APR for a mortgage - can you switch? Or are you tied in to a fix?
Total secured & HP debts...... 4000

Unsecured Debts I have listed the following in the order that you should be prioritising overpayments (most to least expensive debt) - this way you will repay the minimum aamount of interest and pay of the actual debt te quickest.

The idea here is that you snowball the debts until they are gone. But first you have to ensure that you are no longer spending on any of the cards. Secondly, if any of them are loans rather than CC's before making any overpayments to them (the loans), check that you will not be charged a free for overpaying.

Then, always pay the minimum payment towards all debts, and with any monthly surplus (£455 acording to this SOA+ any further savings that you can make in your soa) pay towards debt 1. until this debt is completly cleared, when this is completly cleared, move on to debt 2. (this time paying the £455 SOA surplus plus debt 1.'s previous monthly minimum payment (£320) so once debt 1. is gone, you will be able to overpay a monthly amount of (£775+ ANY soa savings that you can make), when debt 2. is gone move on down the list until all debts are cleared in this manner. As each debt clears you will soon see the snowballing method pick up pack and the each of the debts will be repaid much quicker.

There is a calculator that will show you how long it will be until your Debt Free Day (DFD) is at the end of the page where you origionally filled in this SOA - it's worth taking a look at.

1. Description....................Debt......Monthly...APR
2. BOS............................11000.....320.......27.95
3. BOS ONE........................2000......34........27.95
4. MBNA...........................925.......30........25
5. EGG............................4300......120.......25
6. Virgin.........................1850......46........23
7. Loan...........................13000.....428.......13.7
Total unsecured debts..........33075.....978.......-

Monthly Budget Summary
Total monthly income.................... 2,775
Expenses (including HP & secured debts). 1,342
Available for debt repayments........... 1,433
Monthly UNsecured debt repayments....... 978
Amount left after debt repayments....... 455
Personal Balance Sheet Summary
Total assets (things you own)........... 134,000
Total HP & Secured debt................. -4,000
Total Unsecured debt.................... -33,075
Net Assets.............................. 96,925

Hi,

I have made some comments above, hope that some of them are of use to you.

Also, if you have a good credit history it might be worth trying to shift some of the more expensive debt to cheaper cards, or shuffling around the debt on to the cards that you currently have - moving some of the more expensive debt to cards with lower APR's (but make sure that you won't be penalised for this, or that if there are penalties for doing this, make sure that over the long term they will save you money)

D9