Moneymoron1 SOA - It's a bad one

Tebheag

Hi for 28k your wages as other people have said should be about 1800. Really need to get more cash in. Part time job at weekends ? rent out a room ? Can you sell anything ? As much cash as you can raise to pay of the Pay day loans asap
Could you get a mortgage payment holiday ? Change to interest only ? Change the date mortgage comes out to just before payday and any other dds
Need to have a look at where your spending is going as presume there are things missed of for you to have got into so much debt perhaps keep a spending diary it all adds up £5 for a magazine drinks after work etc.
You will get there could be a lot worse at least you are still in credit once you have deducted all your debt from house equity !!
Good luck

moneymoron1

thechippy wrote: »

Trouble is though,

With just £62 pm to spare, you would not be even able to make the loan repayments!

You really need a dmp with the 62 being distributed on a pro rata basis.

It is the current interest and charges that are causing the problem, once they have gone and the stupid loans i would be able to manage it

moneymoron1

HappyMJ wrote: »

Then why is your net income so low? On £28,000 you should be bringing home £1,800 per month.

I get 13 paydays a year is one part of it, tax, NI, and Student Loan, also some was paid in the form of a bonus a couple months ago

moneymoron1

barbarawright wrote: »

Looks to me as if you have a choice between a mortgage and a car. Do you really need car? I know everyone on these boards says they live in the middle of nowhere and has to drive 50 miles to work but it does seem to me that car ownership is where a huge amount of debts start. Like others, I'm puzzled about your salary - there does seem to be £300 or £400 missing and it can't all be pension deductions.

You can get through this but you will need to make some major decisions. If getting rid of the car is an option, that would pretty much solve your problem, otherwise selling up or a DMP seem possibilities.

Yes the car is essential, i do work 70 miles away and also start at funny times so cant use public transport, regards to salary above

DVardysShadow

This is not the overall solution, but something you need to do. Get a new current account with a bank to whom [and associated companies] you owe no money. Get your pay transferred into that account - and keep it clean - NO overdraft. You will need this account. Pay nothing out of the others - at least that will stop transaction charges. You are going to default somewhere along the way. Let it happen - but under no circumstances go into overdraft on your clean new account.

RAS

Can you let any of your rooms to lodgers, to raise more income?

You need to work your SOA based on either 4 weeks or calendar months, not 4 weeks for income and monthly for expendture.

You simply are not earning enough to support your debts and you are living beyond your means.

moneymoron1 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400
Monthly Expense Details
Mortgage................................ 594.2
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 101
Electricity............................. 50 - this is very high given your gas bill. You need to check yourt meters to start with, go round and turn everying off except the fridge and freezer and keep them off unless you are using them
Gas..................................... 33
Oil..................................... 0
Water rates............................. 13
Telephone (land line)................... 13
Mobile phone............................ 35 - you cannot afford this reduce your tariff and then PAYG?
TV Licence.............................. 13
Satellite/Cable TV...................... 21 - you cannot afford this at all - freeview.
Internet Services....................... 13
Groceries etc. ......................... 120 - for one person, aim for £65
Clothing................................ 20 - wear wheat you own for a while
Petrol/diesel........................... 150 - drive conservatively and you can save 10-30 percent
Road tax................................ 12.5
Car Insurance........................... 80 - this is high. Why?
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 5
Contents insurance...................... 5
Life assurance ......................... 7
Other insurance......................... 13
Presents (birthday, christmas etc)...... 25 - you cannot afford this - £10
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1338.7

Assets
Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 147000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 102000...(594.2)....4.69
Total secured & HP debts...... 102000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Card 1.........................2463......65........21.71
Card 2.........................1979.23...74.28.....26.5
Card 3.........................2234.2....51.2......19.13
Card 5.........................461.1.....14.67.....0
Card 4.........................745.35....16.77.....22.6

These are debts
Overdraft 1 - £3100 (Halifax) £2 a day charges, but the charges have put me over and plenty £5 a days mean it is about 115 a month in charges (vicious cycle)

Overdraft 2 - £2750 (Santander) £10 a month, no interest
Overdraft 3 - £1500 (Lloyds Tsb) £5 a month, interest at about 15 a month

Charges - Lloyds - Currently struggling to get on top so about £100 a month
Charges - Santander - Same as above, about £100 a month

Payday Loan 1 - £1300 - 262.50 a month just in fees
Payday Loan 2 - £710 - 150 a month in fees

Owe family 1500

You are to solve this until you understand where the £20,000 worth of money you owe has gone. What have you been doing with it?

You desparately need find some way of stopping the payday loans from taking money each month, read saltnvinegar's excellent thread.

ViolaLass

Are you single? What's the life assurance for?

Your mobile phone, elec, sky, clothing and groceries could all be cut.

(This won't solve your problems but it may help).

Most importantly, if you're paid every 4 weeks, you need to work out what your real monthly income is else the SOA doesn't add up.

HappyMJ

moneymoron1 wrote: »

I get 13 paydays a year is one part of it, tax, NI, and Student Loan, also some was paid in the form of a bonus a couple months ago

Thanks for the explanation but it still doesn't add up. Your weekly after tax income including student loan deductions would be £389 per week or £1556 per 4 weeks. What did you do with the bonus?

You have a few options. Sell and pay off all your debts. Move somewhere cheaper and much closer to work. Basically start again with a nice clean credit file or....A DMP....Stop paying all your unsecured creditors immediately and start negotiating to pay them a couple of pounds per month each. This will destroy your credit rating and take many many years to both repay and fix the damage. £20,000 at £60 a month will take 28 years. You have a lot of creditors so pay each about 0.3% of the outstanding debt per month until repaid.

As you have equity in the house some of your creditors might go for a CCJ then a charging order then if they feel they want their money quicker they may force you to sell anyway. You will have to pay all their fees and charges they incur possibly leaving you with nothing possibly negative equity causing you to consider BR.

cassidy0111

DVardysShadow wrote: »

This is not the overall solution, but something you need to do. Get a new current account with a bank to whom [and associated companies] you owe no money. Get your pay transferred into that account - and keep it clean - NO overdraft. You will need this account. Pay nothing out of the others - at least that will stop transaction charges. You are going to default somewhere along the way. Let it happen - but under no circumstances go into overdraft on your clean new account.

I was going to suggest a Co-Op account. They have a basic one which you can manage at the post office. I think you need to get your wages away from any bank to whom you owe money asap.

oldtractor

Can you take a second job? bar work in the evenngs,cleaning? use the money to pay off the debts and cut up the cards so you cannot get further into debt.