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Hi... I'm new... Please be gentle!!! :-)

Hi

I'm new here on the forums but have been lurking this long time.

I'm on a mission to sort my "five year plan" although that screen name was taken!!!

We're struggling with a good bit of unsecured debt, and having difficulties with our mortgage and secured loan.

Ive been onto CCCS and am hoping GE Money will accept us on the Homeowner Mortgage Support Scheme.

Any insight would be great.

Thanks...

L xxx
:hello: Struggling mum of three....
«13

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi and welcome

    What have CCCS suggested as an option for you? or haven't you got that far yet?

    Have you had a read of this post? The Big Guide to Becoming Debt Free - if not its a handy starting plan to taking back control of your money and what you spend it on.
    I can't remember if Trev mentions spending diaries in that thread but I think they are invaluble when you first set out on a debt free journey.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • gonnafixit
    gonnafixit Posts: 20 Forumite
    Hi Tixy

    Thanks for the welcome. Am looking forward to sharing our journey with you all.

    I have a telephone appointment with CCCS on Tuesday coming to discuss ways forward. Hopefully they'll have some ideas.

    I am going to go browse around the site now and see what I can learn :-)

    L xx
    :hello: Struggling mum of three....
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Hello there and welcome to the boards, youve come to the right place,

    If you like, you could post up an SOA (statement of affairs) and we may be able to help with your incomings and outgoings.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • gonnafixit
    gonnafixit Posts: 20 Forumite
    McKneff

    I am working on the SOA as we speak.

    We are seriously in the red as it is and have made cutbacks over the last 6 months regarding Insurances etc and I have just cancelled the Sky altogether.

    The cost of childcare is killing us, but if I don't work we'd be no better off.

    Will come back when I'm brave enough to show the SOA
    :hello: Struggling mum of three....
  • gonnafixit
    gonnafixit Posts: 20 Forumite
    Statement of Affairs

    Monthly Household Income £2700
    (Includes Tax Credits & Child Benefit)

    Outgoings

    Mortgage | £515 | Interest Only - GE Money

    Sec. Loan | £350 | Repayment - GE Money - The fixed rate ends next June and payment will almost double

    Rates | £170 | Includes a payment towards previous arrears

    Childcare | £529.50 | We recieve Childcare Vouchers also

    Mobile Phones | £48.00 | Both new contracts for 24 months

    AA Breakdown | £20.00 | Covers both cars and essential given the miles my husband does each month

    Car Insurance | £81 | 2 cars - just renewed - cheapest available

    House Insurance | £15 | Buildings & Contents - just renewed - cheapest available

    Life Insurance | £18 | just renewed - cheapest available

    TV License | £12 |

    Electric | £60 | Am in NI so no option to change provider

    Karate | £26 | For 6 year old son - could cancel but dont want to ;-)

    Oil | £70 |

    Diesel | £400 | hubby is on the road a lot for work

    Petrol | £40 | My wee runaround!

    Groceries and other household items | £500 | I only ever buy what we need, and stick strictly to my list. I also mostly buy whats cheapest. Tesco Value & Tesco Own brand.

    Nappies |£40 | I buy Pampers Simply Dry and ONLY when theyre on offer. I have never paid RRP for nappies in my life.

    Comments Welcomed....

    Am preparing "The Debts" now
    :hello: Struggling mum of three....
  • gonnafixit
    gonnafixit Posts: 20 Forumite
    I should add that we had discussed just letting the house go and spend the time we would have between now and repossession saving our asses off and paying off unsecured debts.... but I REALLY do not want to loose my home. Negative equity BTW
    :hello: Struggling mum of three....
  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi

    It might be better to use the statement of affairs calculator - http://www.makesenseofcards.com/soacalc.html to make sure you budget for things like road tax, car maintenance, clothes/haircuts etc etc. Otherwise you end up with a budget that isn't workable long term. For things you don't spend on every month work out an estimated annual spend and then divide by 12 for a monthly budget.

    How many of you are there in the family? £500 seems high for groceries (unless it contains more than food, cleaning stuff and toiletries).
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • gonnafixit
    gonnafixit Posts: 20 Forumite
    There are 4 of us.... 2 adults and 2 kids. Still buying babymilk etc.
    :hello: Struggling mum of three....
  • gonnafixit
    gonnafixit Posts: 20 Forumite
    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................ 1250
    Partners monthly income after tax....... 1220
    Benefits................................ 200
    Other income............................ 0
    Total monthly income.................... 2670

    Monthly Expense Details

    Mortgage................................ 515
    Secured/HP loan repayments.............. 350
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 170
    Electricity............................. 60
    Gas..................................... 0
    Oil..................................... 70
    Water rates............................. 0
    Telephone (land line)................... 10
    Mobile phone............................ 48
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 5
    Groceries etc. ......................... 500
    Clothing................................ 20
    Petrol/diesel........................... 400
    Road tax................................ 25
    Car Insurance........................... 20
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 11
    Childcare/nursery....................... 530
    Other child related expenses............ 27
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 15
    Contents insurance...................... 0
    Life assurance ......................... 18
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 0
    Entertainment........................... 20
    Holiday................................. 20
    Emergency fund.......................... 0
    Total monthly expenses.................. 2886


    Assets

    Cash.................................... 0
    House value (Gross)..................... 185000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 185000


    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 175000...(515)......0
    Secured Debt.................. 41000....(350)......0
    Total secured & HP debts...... 216000....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Total unsecured debts..........0.........0.........-


    Monthly Budget Summary

    Total monthly income.................... 2,670
    Expenses (including HP & secured debts). 2,886
    Available for debt repayments........... -216
    Monthly UNsecured debt repayments....... 0
    Amount short for making debt repayments. -216

    Personal Balance Sheet Summary
    Total assets (things you own)........... 185,000
    Total HP & Secured debt................. -216,000
    Total Unsecured debt.................... -0
    Net Assets.............................. -31,000
    :hello: Struggling mum of three....
  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi

    Thanks for posting in this format. I've made a few comments below (these are not meant to be criticsms but just suggestions as to where you might be able to save giving the shortfall you have before debt repayments.)
    gonnafixit wrote: »
    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................ 1250
    Partners monthly income after tax....... 1220
    Benefits................................ 200 have you checked you are getting all you can for tax credits etc? can you get help with childcare costs?
    Other income............................ 0
    Total monthly income.................... 2670

    Monthly Expense Details

    Mortgage................................ 515 is that interest only or repayment?
    Secured/HP loan repayments.............. 350 what was this used for? anything that could be sold to put towards debts?
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 170
    Electricity............................. 60
    Gas..................................... 0
    Oil..................................... 70
    Water rates............................. 0
    Telephone (land line)................... 10
    Mobile phone............................ 48
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 5
    Groceries etc. ......................... 500 this seems very high - there are families on here who can manage on around £200-250 a month for a family of your size. On a CCCS DMP you would be allowed a max of £400 I believe (to include nappies etc) which most manage on well, perhaps check out the old style board for tips on reducing this down?
    Clothing................................ 20
    Petrol/diesel........................... 400 can OH claim any of this back from work at all in expenses? should this not be £440 to include what you pay as well?
    Road tax................................ 25
    Car Insurance........................... 20 is it really only 20 for 2 cards? you'd mentioned 81 before - or did that include other costs?
    Car maintenance (including MOT)......... 20 does seem much for 2 cars especially considering OHs miles - have you budgeted for new tyres and servicing etc?
    Car parking............................. 0
    Other travel............................ 11
    Childcare/nursery....................... 530 are you entitled to any benefits towards this for your youngest?
    Other child related expenses............ 27
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 15
    Contents insurance...................... 0
    Life assurance ......................... 18
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 0
    Entertainment........................... 20
    Holiday................................. 20
    Emergency fund.......................... 0
    Total monthly expenses.................. 2886


    Assets

    Cash.................................... 0
    House value (Gross)..................... 185000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 185000


    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 175000...(515)......0 what apr? are you on a fixed rate deal? do you have arrears on this?
    Secured Debt.................. 41000....(350)......0 what apr? any arrears?
    Total secured & HP debts...... 216000....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Total unsecured debts..........0.........0.........-


    Monthly Budget Summary

    Total monthly income.................... 2,670
    Expenses (including HP & secured debts). 2,886
    Available for debt repayments........... -216
    Monthly UNsecured debt repayments....... 0
    Amount short for making debt repayments. -216

    Personal Balance Sheet Summary
    Total assets (things you own)........... 185,000
    Total HP & Secured debt................. -216,000
    Total Unsecured debt.................... -0
    Net Assets.............................. -31,000

    It does look like it might be a struggle to keep the house with this statement of affairs. Could OH increase his income at all? overtime or a second job?
    Would it be feasible to get a lodger to help with the mortgage & secured loan cost?
    How far are you into looking at the mortgage support scheme? I don't know a lot about this but presumably it won't help with the secured loan?
    Anything's you could sell to put towards the debts? could you manage with one car? or downgrade your cars to cheaper ones (depending on what they are currently worth)?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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