Making a start.

bibliotaphist

My first post...

I don't have any questions (yet). I just need to get this off my chest!

My wife and I have been struggling with debt for the past 7 years. We lost a lot of money a few years ago (bought our first house when prices were at a peak; had to move 18 months later; couldn't get a tenant; had to sell the house at a £20,000 loss) and have been effectively living off credit cards and using them to make up shortfall every month. Not sensible, but I couldn't see an alternative.

£40,000 of unsecured debt split between a loan and credit cards.

After a year or two of just about maintaining the debt I've long run out of 0% deals to shift between, minimum payments have been getting impossible. Bank getting less friendly. Credit rating nosediving.

All getting on top of me.

I've now registered with CCCS and they're going to be in touch with Debt Management Plan details. Looking into basic account w/ Co-op Bank; trying to reduce mortgage and insurance payments, though it's going to take a while.

Having read some of the threads on this forum, I'm very pleased to be here with people who have been in the same boat.

It's a start.

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................ 1702.77
Partners monthly income after tax....... 0
Benefits................................ 174.28
Other income............................ 0
Total monthly income.................... 1877.05

Monthly Expense Details
Mortgage................................ 697.50
Council tax............................. 109.00
Electricity............................. 12.50
Gas..................................... 16.00
Water rates............................. 43.31
Telephone (land line)................... 39.87
TV Licence.............................. 12.37
Groceries etc. ......................... 94.00
Clothing................................ 10.00
Petrol/diesel........................... 80.00
Road tax................................ 30.00
Car Insurance........................... 10.53
Car maintenance (including MOT)......... 20.00
Other travel............................ 42.00
Other child related expenses............ 12.00
Medical (prescriptions, dentist etc).... 6.00
Buildings insurance..................... 20.00
Life assurance ......................... 10.78
Other insurance......................... 39.87
Entertainment........................... 17.50
Emergency fund.......................... 20.00
Total monthly expenses.................. 1343.23

Assets
House value (Gross)..................... 135000
Total Assets............................ 135000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110000...(697.5)....7
Total secured & HP debts...... 110000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................18237.....240.......8.5
Overdrafts.....................4780......70........10.2
Credit card 1...................1930.....100.......XXXXX
Credit card 2...................3549.....100.......XXXXX
Credit card 3...................960.....50.......XXXXX
Credit card 4...................6473.....174.......XXXXX
Credit card 5...................4298.....120.......XXXXX
Total unsecured debts..........40227.....854.......-

Monthly Budget Summary
Total monthly income.................... 1,877.05
Expenses (including HP & secured debts). 1,343.23
Available for debt repayments........... 533.82
Monthly Unsecured debt repayments....... 854
Amount short for making debt repayments. -320.18

Personal Balance Sheet Summary
Total assets (things you own)........... 135,000
Total HP & Secured debt................. -110,000
Total Unsecured debt.................... -40,227
Net Assets.............................. -15,227

Hannah_10

I notice you list overdrafts plural and credit cards plural, but only the one interest rate. Is that right? It is probably a good idea to edit this and add each debt as a separate entry.

Pollycat

Are you sure you're getting all the benefits you'e entitled to?

Any chance of your wife trying to find a job?

Some of your outgoings sound really low - gas,electric and groceries in particular.
Can you really feed 2 adults and 2 kids on £94 per month?

bibliotaphist

Thanks, Hannah_10.

Overdrafts plural (2), but yes both on the same rate.

Credit cards: that rate was the average (which I worked out a while ago and had to hand).

I've now broken down the cards figure into individual amounts for my five cards... (there's that panicky feeling again!!!!!!!!) - I need to dig out the individual APR rates for each card, which I'll add to the post as I get them.

Thanks for the advice. I'm going to keep editing this and adding to it as I can dig out more information.

Panic subsiding again :-)

bibliotaphist

Benefits: I think so. We get CB and Child Tax Credits. We were getting some Working Family Tax Credits but then told we weren't eligible any more because of my income, and because my wife doesn't work more than a few hours a week.

My wife looks after our two small children so it's hard for her to work. She does a few hours a week through the summer, but that hasn't picked up yet.

Gas and Electric - we've been taking part in a scheme that has meant we got a very cheap rate for a while. I don't doubt these will go up. Aaaaaaaaagh!

bibliotaphist

On the plus side, CCCS have been in touch about our DMP. And totting up for this month, my unsecured debts are down 0.5% on last month (which I'm taking as my peak starting figure).

OK, one two-hundredth ain't much. But it's better than the escalating figure I've been in despair at since last summer.

Tixy

Hi and welcome

Are these figures for your total household or are they just the income and costs you actually take control of?
If this is the whole income for the household I would imagine you might be entitled to more in benefits and is your partner able to work.

Most of your costs look reasonable yet some look like they may be too low. £94 for groceries for 4 people for a month seems unrealistically low. Can you really insure both cars for £126 a year combined? and your utilities look low (which is great if its realistic and you are not building up arrears).

Your other insurance cost might be worth looking at to see if you can get the same cover cheaper elsewhere (although obviously it depends on what its for).

Edit - sorry see you've answered some of this whilst I was typing

bibliotaphist

Oh, and food... yeah, we've been pretty much managing on £90 a month for a while now.

bibliotaphist

Thank you!

Yes, this is the whole household.

Those figures are what we've been paying, yeah. Car insurance was correct for last year. Two very small, old cars, third party only, both in my wife's name, plenty of no claims discount.


Food/groceries. We get a box of farm veg delivered once a fortnight, costing £25/month. We grow all the rest of our own fruit and veg. We don't eat out. We buy all cheap and discount stuff.

That said, I'm going to be keeping even more of an eye on what we spend, to make sure I'm not missing anything.

Utilities - OK, this is the one I'm suddenly worried about! To do: ring the gas company.

bibliotaphist

Insurance: yes, I need to look at this to see if I can get a better deal. I've had the same life/critical illness and unemployment insurance for nearly 5 years. Time I reviewed it.

Thank you, everyone, for your help and support. This board = brilliant invention!

Tixy

Are you currently up to date with your repayments (if struggling)? Your mortgage rate looks quite high. Is it fixed at the moment? is there any chance you could get a better fixed deal before you start your DMP and so before your credit rating gets badly affected with defaults etc? Not sure if it would be at all viable but might be something to think about.