First time poster - SOA - advice please...

citydope

Hello,

Over the last 2 years I've seriously screwed up my life. I've gone from being reasonably successful to being a total numpty. I've gone from having 50k+ assets to nearly 45k debt. The details of what happened aren't that relevant, but I need to do something to pull things around. I've been around on these boards for quite a while (prior to the start of all my troubles - the shame), and started lurking on the debt free forums a while ago. I've been very impressed by the advice and support I have seen here, and I am baring my soul and asking for advice.

Despite having a well paid job, I'm regularly spending more than I earn. My rent, bills and debt repayments pretty much cover my monthly salary. I honestly do not know what to do.

As is advised, here is my SOA:

Monthly Income:
Salary : 3400

Monthly Outgoings:

Fixed:
Rent: 1500
Council Tax : 180
TV License: 12
Internet: 25
Tube (me): 85
Tube (wife): 20
Tube (daughter): 42
Mobile (me): 40
Mobile (wife):10
Mobile (daughter):30
Life Insurance: 30
Misc Other Bills: 90(~per month)
[Total Fixed : 2064]

Debt Payments:
Sainsbury Visa: ~ 180
Egg Visa: ~240
Egg Loan: ~370 (include insurance - maybe i drop the insurance)
M&S Visa: ~180
Virgin Visa: ~100
[Total Debt Payments: 1070]

[Total Outgoings before eating/living : 2064 + 1070 = 3134]

So, < 300 a month to look after the family with. Suffice to say, we spend more than that on food/clothes/etc. The debts just keep getting bigger...

Debts:
Egg Visa: 4200 (14.8%)
M&S Visa: 5750 (3.9% for life)
Sainsburys Visa: 6750 (6.9% life)
Virgin Visa: 17000 (10k @ 0% until 06/2007, 7k @ 15%)
Egg Loan: 12250 (7.7%)

Not a pretty picture. Net income virtually zero before even spending money to eat, total debt at ~45k. This year has been the worst of my life. I'd appreciate any thoughts on how I can turn this around in 2007.

Dope

Willsnarf1983

the reason why you got into debt could be a major reason and there are only a few things that make you lose so much money so quickly, if it is gambling then you need to get this sorted before the money will become sorted, if its a bad investment then thats just unlucky and you need to concentrate on the long hard slog, if its something else you may as well tell us as i don't know you from adam and talking to a stranger may help



Will

citydope

Hi,

Sorry. One other thing that I forgot to say, there has been some card shuffling of late, so the monthly payment allocations and the debts are a little bit out of sync.

Willsnarf1983

citydope wrote:

Hello,

Over the last 2 years I've seriously screwed up my life. I've gone from being reasonably successful to being a total numpty. I've gone from having 50k+ assets to nearly 45k debt. The details of what happened aren't that relevant, but I need to do something to pull things around. I've been around on these boards for quite a while (prior to the start of all my troubles - the shame), and started lurking on the debt free forums a while ago. I've been very impressed by the advice and support I have seen here, and I am baring my soul and asking for advice.

Despite having a well paid job, I'm regularly spending more than I earn. My rent, bills and debt repayments pretty much cover my monthly salary. I honestly do not know what to do.

As is advised, here is my SOA:

Monthly Income:
Salary : 3400

Monthly Outgoings:

Fixed:
Rent: 1500there are 3 of you in the family, even if theres 4 1500 on rent is a stupendous amount and you will prob need to look at downsizeing
Council Tax : 180
TV License: 12
Internet: 25
Tube (me): 85
Tube (wife): 20
Tube (daughter): 42
Mobile (me): 40
Mobile (wife):10
Mobile (daughter):30
Life Insurance: 30
Misc Other Bills: 90(~per month)What does this entail exactly?

[Total Fixed : 2064]

Debt Payments:
Sainsbury Visa: ~ 180
Egg Visa: ~240
Egg Loan: ~370 (include insurance - maybe i drop the insurance) I would say drop the insurance but others may disagree
M&S Visa: ~180
Virgin Visa: ~100
[Total Debt Payments: 1070]

[Total Outgoings before eating/living : 2064 + 1070 = 3134]

So, < 300 a month to look after the family with. Suffice to say, we spend more than that on food/clothes/etc. The debts just keep getting bigger...

Debts:
Egg Visa: 4200 (14.8%)
M&S Visa: 5750 (3.9% for life)
Sainsburys Visa: 6750 (6.9% life)
Virgin Visa: 17000 (10k @ 0% until 06/2007, 7k @ 15%)
Egg Loan: 12250 (7.7%)

Not a pretty picture. Net income virtually zero before even spending money to eat, total debt at ~45k. This year has been the worst of my life. I'd appreciate any thoughts on how I can turn this around in 2007.

Dope

What does your wife do, can she go earn?

Will

Annie_Fanny

citydope wrote:

Hello,

Over the last 2 years I've seriously screwed up my life. I've gone from being reasonably successful to being a total numpty. I've gone from having 50k+ assets to nearly 45k debt. The details of what happened aren't that relevant, but I need to do something to pull things around. I've been around on these boards for quite a while (prior to the start of all my troubles - the shame), and started lurking on the debt free forums a while ago. I've been very impressed by the advice and support I have seen here, and I am baring my soul and asking for advice.

Despite having a well paid job, I'm regularly spending more than I earn. My rent, bills and debt repayments pretty much cover my monthly salary. I honestly do not know what to do.

As is advised, here is my SOA:

Monthly Income:
Salary : 3400

Monthly Outgoings:

Fixed:
Rent: 1500
Council Tax : 180
TV License: 12
Internet: 25
Tube (me): 85
Tube (wife): 20
Tube (daughter): 42
Mobile (me): 40
Mobile (wife):10
Mobile (daughter):30
Life Insurance: 30
Misc Other Bills: 90(~per month)
[Total Fixed : 2064]

Debt Payments:
Sainsbury Visa: ~ 180
Egg Visa: ~240
Egg Loan: ~370 (include insurance - maybe i drop the insurance)
M&S Visa: ~180
Virgin Visa: ~100
[Total Debt Payments: 1070]

[Total Outgoings before eating/living : 2064 + 1070 = 3134]

So, < 300 a month to look after the family with. Suffice to say, we spend more than that on food/clothes/etc. The debts just keep getting bigger...

Debts:
Egg Visa: 4200 (14.8%)
M&S Visa: 5750 (3.9% for life)
Sainsburys Visa: 6750 (6.9% life)
Virgin Visa: 17000 (10k @ 0% until 06/2007, 7k @ 15%)
Egg Loan: 12250 (7.7%)

Not a pretty picture. Net income virtually zero before even spending money to eat, total debt at ~45k. This year has been the worst of my life. I'd appreciate any thoughts on how I can turn this around in 2007.

Dope

Citydope - you have come to the right place for help. You should congratulate yourself about this fact!

First things first - does your wife know about the debts? You need to work together as a unit to hammer this debt down and get on with your lives.

You need to keep a spending diary to find out where the £300 is going each month.

Things you can do to get the debt down:
Have you got anything to sell?
Can you move to a cheaper place to live?
Does your wife work?
Could you get a part time job as well?
Could your daughter work?
Have you got any bank charges?

Ok so the above is a few things to get you thinking.

Well are here pretty much 24/7 so don't be afraid to ask questions. We have all been there!

2007 will be a much better year for you.

Annie
Xx

hbl_2

How involved are your family? Better to not keep this sort of thing under wraps. Kudos for rolling up your sleeves and all, but better to do it together?

I take it you're in London and (judging by the phone bill) you have a teenage daughter. I realise that making comfort zone changes to the family might not keep everyone happy, especially if they're used to a certain standard of living which has become less feasible. It might be a good time to include your daughter in some budgeting exercises, something my parents never did for me, but I think I would have really appreciated (so as not to be in my position now!).

Obviously moving would be a big clue to the girls that something's amiss, so best to be honest about such things. No need to mention numbers per ce, but when my folks moved when my dad got a new job they said matter of fact, "things are going to change, it'll be tight before it gets better." The plus side is that shaving £500 off rent wont cost you any more to commute, but that's £3000 a year. Rent just eats you alive in London as it is.

Good luck, but more importantly, good sense.

beanielou

Eeek!! Rent of £1500.
think that you seriously need to look at trying to reduce this so that you can hopefully at least break even each month.

CLAPTON

you really need to complete the SoA and add food , clothes etc. this is because its not possible to advise on the debt situation without seeing how much you really need to live on (essential spending)

so it goes like this
income minus essential spending = amount left to pay off debts.

if there isnt enough to pay off debts then you have to consider

a. increase income...extra job, can wife work etc
and /or
b. decrease essential spending (maybe cheaper accommodation, no mobiles, etc)
and/or
c. refinance debts

if this still doesn't work then you need to consider debt management plans, IVA, bankruptcy.

but the essential starting point has to be understanding your essential spending.

lynzpower

I live in london and I would suggest you move, if you are renting. We are hoping to rent a 2 bedroom HOUSE ( not flat ) with garden for 733 a month.

this is a saving for us, but it would be massive for you. Almost halving!!!! Massive saving, and fairly easy in the "lack of pain, instant gain" terms.

How old is your daughter- is local schooling an issue - what borough are you in?

fay66

i came here yesterday city hope ive done the same thing, ive had some really big life changes this year and done some things crazy things the same i am 35k in debt and no assets i did have £27 k in august and blew the lot.