Moneymoron1 SOA - It's a bad one

warriorfullights

Like tilly said, you can't pay debt with debt. It is like you are in a never-ending circle. Your life on how you pay for everything becomes circular. As long as you are paying, it is still a liability and not an asset.

moneymoron1

RAS wrote: »

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.



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.

I am looking into getting a lodger now or even renting the house out all together

Working through your comments on my SOA below

I use very little gas, mainly electricity, but the payments are high, i have just got 200 back from credit on the account, waiting for that to be paid into my account now, and also have changed to a cheaper supplier so i imagine it will go down to about 50 for both

Mobile phone contract is just that, contracted and until it is in a position to reduce i am stuck with it

Cancelling sky this week as i dont get to watch it anyway

I can reduce the spending on food and i will be doing that, will live off eggs, and pasta etc

I dont intend on buying any clothes when i cant afford to live, that was just obeying what the SOA asked for, i have enough clothes to not need to buy anymore for the next 6 months

My driving isn't the issue, i drive very conservatively, i just do a lot of miles at the moment

Car insurance is high as unfortunately i am only young, have 6 years no claims but i am still young and getting hammered by recent price rises thanks to our lovely uninsured drivers

Again the birthday presents thing was just for the SOA, i dont save that for the year, i buy presents when they are due based on what i can afford

moneymoron1

ViolaLass wrote: »

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.

Yes i am single (well not married, i have a girlfriend) i have no idea what it was for, when i was sold the mortgage they told me that i needed life insurance and assurance

moneymoron1

HappyMJ wrote: »

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?

bonus has gone, was used to pay off other debts, so effectively my salary is 25k

I am trying to do all i can to avoid the CCJ or BR route, this week is analysing everything i can possibly do, and next week is doing whatever i can do.

moneymoron1

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 will do this, do you think i would be able to get a first direct account? i have the wages to get one of those accounts and i could get £125 which would help me get some stuff sorted, or am i very likely to be rejected for this account?

moneymoron1

oldtractor wrote: »

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.

I am about to move into a job that i get a pay rise, and the possibility of getting overtime, which i will do all i can.

Once this happens and i am hoping before the end of august, ideally within 2 weeks i will be able to earn more and prioritise debts to get everything down

RAS

moneymoron1 wrote: »

Again the birthday presents thing was just for the SOA, i dont save that for the year, i buy presents when they are due based on what i can afford

Sorry but that is a big part of your problem.

As Martin says in one of his books, part of the reason he got into debt advice was because a friend was struggling to cope with the post-Christmas debt - not eating because she had blown money on presents.

Now Christmas kinda comes round every year? At roughly the same time?

Had this friend put £30 per month away all year, she would have been able to go otu and buy pressies without going into debt and spending the whole of January and February stressed out with debt.

You need to budget every month for your annual expenses. Put that money into a real or virtual ssaving account, so that you can pay them when they come arround.

Maybe you could save £50 per year just by paying your car insurance up front. Annual road tax is cheaper than 6 monthly, so is contents insurance as a rule.

Whaere has this £20K gone?

What do you have that you can sell?

moneymoron1

RAS wrote: »

Sorry but that is a big part of your problem.

As Martin says in one of his books, part of the reason he got into debt advice was because a friend was struggling to cope with the post-Christmas debt - not eating because she had blown money on presents.

Now Christmas kinda comes round every year? At roughly the same time?

Had this friend put £30 per month away all year, she would have been able to go otu and buy pressies without going into debt and spending the whole of January and February stressed out with debt.

You need to budget every month for your annual expenses. Put that money into a real or virtual ssaving account, so that you can pay them when they come arround.

Maybe you could save £50 per year just by paying your car insurance up front. Annual road tax is cheaper than 6 monthly, so is contents insurance as a rule.

Whaere has this £20K gone?

What do you have that you can sell?

I agree, and i will start to do that, i just need to get on track over the next month, starting with paying the bills at the start of august

Car insurance is on a credit card so is not on a monthly payment, that card was interest free although has just changed. I buy road tax per year, this year is only due at end of october

The debt is on a variety of things, majority is student debt (overdrafts and a couple of the cards) the other is on things for the house and generally being an idiot and not looking after my finances how i know i can.

I am selling everything i can this week on ebay, and other forums, just to get rid of everything.

I am hoping to make it through august, and then in september i will have the new wage with overtime and that should ease the stress for a little while, whilst i clear the charges, saving me over 250 a month straight away

ViolaLass

moneymoron1 wrote: »

Yes i am single (well not married, i have a girlfriend) i have no idea what it was for, when i was sold the mortgage they told me that i needed life insurance and assurance

Did you buy the house with your girlfriend? Do you have any dependents? If not, I can't see what these products would be for, unless the life insurance also covers you if you're ill/injured etc.

moneymoron1

ViolaLass wrote: »

Did you buy the house with your girlfriend? Do you have any dependents? If not, I can't see what these products would be for, unless the life insurance also covers you if you're ill/injured etc.

No the house is mine, family member on the mortgage but i'm the only one who pays the bills