Where to start please .....

TC1

OK. Below is as honest and accurate as it's going to get.
On 31.4.11 we move on to a lifetime tracker mortgage with the Woolwich which will be .95% above base. Short term we intend to stay with this and pay off some debt and see what happens with the BOE rate.

All CC are on long term 0%.

I guess we need to know where to start. Do we pay of CC or start on the 18000 Mortgage reserve.

We have managed to tread water for a long time but now are up for clearing some of this god awful debt.

Any advice/criticism will be considered.

Thanks

TC1



Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 450
Benefits................................ 188
Other income............................ 0
Total monthly income.................... 3038

Monthly Expense Details
Mortgage................................ 799
Secured/HP loan repayments.............. 72
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 173
Electricity............................. 38
Gas..................................... 0
Oil..................................... 100
Water rates............................. 53
Telephone (land line)................... 30
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 35
Car Insurance........................... 45
Car maintenance (including MOT)......... 200
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 18
Contents insurance...................... 15
Life assurance ......................... 7.8
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 25
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 2557.8


Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 303000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 103500...(799)......5.59
Secured Debt.................. 18000....(72).......4.99
Total secured & HP debts...... 121500....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Barclaycard....................10913.....250...... .0
Nationwide.....................3600......36....... .0
MBNA...........................2520......25....... .0
Santander......................230.......25....... .0
A&L Loan.......................1506.96...115.9.....0
Total unsecured debts..........18769.96..451.9.....-


Monthly Budget Summary
Total monthly income.................... 3,038
Expenses (including HP & secured debts). 2,557.8
Available for debt repayments........... 480.2
Monthly UNsecured debt repayments....... 451.9
Amount left after debt repayments....... 28.3

Personal Balance Sheet Summary
Total assets (things you own)........... 303,000
Total HP & Secured debt................. -121,500
Total Unsecured debt.................... -18,769.96
Net Assets.............................. 162,730.04

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

impulsive

My priority would be the secured debt. Get rid of that, then worry about the rest.

Tixy

Hi TC!

How much will your reduced mortgage payment free up a month (whilst the base rate is at current levels?)
At the moment it looks like you are just breaking even each month, is that right? So its the freed up money from the mortgage payment reduction that you want to decide how to use?

Do you know what the APRs are on your unsecured debts? Be worth finding that out first. Some you say are 0%, what about the loan? any overdraft? how long until your 0%s finish?
Whilst I understand that you probably don't like having that secured debt it is relatively low interest and you do have a lot of equity in your house (if you were in a position where you were in negative equity I would perhaps suggest otherwise). My feeling would be to start by trying to reduce down any unsecured debts charging interest.

Does the secured loan allow monthly overpayments (without penalty)?

You haven't specifically said if you wanted other feedback on your SoA but.......

TC1 wrote: »

Statement of Affairs and Personal Balance Sheet

Council tax............................. 173 have you ever done the 5min check to see you are in the correct band?
Oil..................................... 100 thats depressing! is this the average amount (ie £1200 a year) or is it only as high as £100/m in winter?
Groceries etc. ......................... 400 this could probably be reduced if you wanted to? - not saying you need to but just that some people on DFW can manage on quite a bit less.
Car maintenance (including MOT)......... 200 this seems very high - any specific reason for this?

TC1

Tixy wrote: »

Hi TC!

How much will your reduced mortgage payment free up a month (whilst the base rate is at current levels?)
At the moment it looks like you are just breaking even each month, is that right? So its the freed up money from the mortgage payment reduction that you want to decide how to use? Yep Tixy that's right. The mortgage will reduce by about £200.

Do you know what the APRs are on your unsecured debts? Be worth finding that out first. Some you say are 0%, what about the loan? any overdraft? how long until your 0%s finish? All on 0% for at leasts six months will post exact dates and APRs asap.
Whilst I understand that you probably don't like having that secured debt it is relatively low interest and you do have a lot of equity in your house (if you were in a position where you were in negative equity I would perhaps suggest otherwise). My feeling would be to start by trying to reduce down any unsecured debts charging interest.

Does the secured loan allow monthly overpayments (without penalty)? Not sure, I'll check as overpayments was something I hadn't even considered here.

You haven't specifically said if you wanted other feedback on your SoA but.......

all advice gratefully recieved Tixy.

Note sure about the council tax. Where do I check ??

In relation to the oil. We got stung just before Xmas when the oil price went bonkers.

Car maintance should be £100 not £200.

Sorry to confuse.

TC1

Tixy

Council Tax Rebanding: Lower your band and save £1,000s
It might be quite a long shot but it only takes a few mins to check.

theoretica

If the secured loan stays at 4.99% but the credit card debt is at 0% you pay less interest if you pay off the secured debt first.

However
- if you can't get a new 0% deal the credit card interest rate may suddenly shoot up
- because of balance transfer fees it will cost you some few % to keep the credit card debt
- can you easily borrow back from the mortgage if you overpay it and then have a crisis?

For these reasons I personally would incline to splitting the payments between secured and unsecured debt if I were in your situation.

Is the A&L loan really 0%?