Trying to get her Debt Free - Advice needed

NorthernLas

Jim - You need to have another look at the SOA, you have car tax at £100 a month and surely that can't be right.

People normally look at it to see what can be saved and if there are things that people have forgotten. It's really difficult to do this with the one you have posted as you have said the GF does not contribute to the household apart from food.

Assuming that she does spend something (or has done for things to build up), it would be useful for her to have an honest spending diary and to look in her cupboards as RAS suggests to see what can be ebayed or returned.

While it is great that you are supporting her, she reallly needs to set herself realistic targets to clear things. It can sour a relationship if one plays the parent when they should be a team.

May2013

JammyJim wrote: »

Here we go:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 4
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1030
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1030

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 270 - is this just your GF's half of the HP loan?
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45 - this is high, can she move to PAYG or sim only
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0 - suggest that GF ebays old clothes to raise funds for this
Petrol/diesel........................... 200 - this is high
Road tax................................ 100 - ?? think this could be wrong
Car Insurance........................... 70
Car maintenance (including MOT)......... 0 - maybe she should budget something here
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..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - Maybe she should budget something here
Haircuts................................ 50 - way too high based on her current situation
Entertainment........................... 0 - does she never go out?? Suggest you budget a small amount here too
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 885


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 400
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 10400


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 5745.....(270)......18.7
Total secured & HP debts...... 5745......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide CC..................5539.91...160.......29.95
Halifax CC.....................3590.33...100.......29.95
next...........................642.98....60........25.99
house of frazor................513.61....25........29.3
Total unsecured debts..........10286.83..345.......-


Monthly Budget Summary
Total monthly income.................... 1,030
Expenses (including HP & secured debts). 885
Available for debt repayments........... 145
Monthly UNsecured debt repayments....... 345
Amount short for making debt repayments. -200

Personal Balance Sheet Summary
Total assets (things you own)........... 10,400
Total HP & Secured debt................. -5,745
Total Unsecured debt.................... -10,286.83
Net Assets.............................. -5,631.83

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using Firefox browser.

This SOA is really tight and any savings made are unlikely to be enough to make a difference to the bottom line number. As suggested already could you downsize the car maybe??

• There’s no budget for presents (Birthday, Xmas) and I’ll bet that she’ll be buying some token gifts and cards throughout the year.
• Clothes – I guess she will be able to create budget for this by ebaying items that she no longer wears.
• Social spends – does she ever go out with her friends for a drink after work / cinema? You may need to allocate a small amount of budget for this.
• £50 a month for haircuts is excessive…might be cheaper if she were to visit the local beauty college.
• Mobile phone is also high, is her contract up for renewal soon, I have a sim only deal for £15 (800 minutes, unlimited texts etc etc)

I suggest you ask your GF to keep a spending diary and log every single purchase however small it may seem, magazine, chocolate bar, make-up, costa coffee etc….you’ll be amazed how quickly these items add up and from this you will have a clearer picture of the state of play.

The opinion on here tends to be never consolidate and based on her income and existing borrowing I think it's highly unlikely that she will get a loan. I'm not an expert on the DMP route but I'm sure someone will be along soon who will tell you if this will be the best way to go.

JammyJim

May2013 wrote: »

This SOA is really tight and any savings made are unlikely to be enough to make a difference to the bottom line number. As suggested already could you downsize the car maybe??

• There’s no budget for presents (Birthday, Xmas) and I’ll bet that she’ll be buying some token gifts and cards throughout the year.
• Clothes – I guess she will be able to create budget for this by ebaying items that she no longer wears.
• Social spends – does she ever go out with her friends for a drink after work / cinema? You may need to allocate a small amount of budget for this.
• £50 a month for haircuts is excessive…might be cheaper if she were to visit the local beauty college.
• Mobile phone is also high, is her contract up for renewal soon, I have a sim only deal for £15 (800 minutes, unlimited texts etc etc)

I suggest you ask your GF to keep a spending diary and log every single purchase however small it may seem, magazine, chocolate bar, make-up, costa coffee etc….you’ll be amazed how quickly these items add up and from this you will have a clearer picture of the state of play.

The opinion on here tends to be never consolidate and based on her income and existing borrowing I think it's highly unlikely that she will get a loan. I'm not an expert on the DMP route but I'm sure someone will be along soon who will tell you if this will be the best way to go.

Actually the loan for the car is wrong, her half is 135, i pay the other half...

Yes she pays for little bits like chocolate/ice cream and things when she pops to the shop, but not sure on the exact amount.

Will edit the above

NorthernLas

Jim - you are doing well and I hope GF is sitting beside you as you type. I forgot to say before that anyone can slide into something without realising how far they have got, so she had done well 'fessing up' and now needs to be ready for action.

Little odds and sods here and there do mount up, which is why she (and maybe you) need spending diaries. A little notebook to write absolutely everything in. Then you can both see things that are not needed and things that are bought to 'make you feel better' (which I imagine she may be in need of now).

Anyway, if you haven't spotted it - there is a great spot at the top of the forum https://forums.moneysavingexpert.com/discussion/2077631 which has lots of info as to who to speak to regarding debt. CCCS and national debtline have loads of useful information and CCCS has an on-line debt advisor that you can try out before speaking to a real person. It may give you a better idea as to what options there are to paying the debt off.

JammyJim

NorthernLas wrote: »

Jim - you are doing well and I hope GF is sitting beside you as you type. I forgot to say before that anyone can slide into something without realising how far they have got, so she had done well 'fessing up' and now needs to be ready for action.

Little odds and sods here and there do mount up, which is why she (and maybe you) need spending diaries. A little notebook to write absolutely everything in. Then you can both see things that are not needed and things that are bought to 'make you feel better' (which I imagine she may be in need of now).

Anyway, if you haven't spotted it - there is a great spot at the top of the forum ...which has lots of info as to who to speak to regarding debt. CCCS and national debtline have loads of useful information and CCCS has an on-line debt advisor that you can try out before speaking to a real person. It may give you a better idea as to what options there are to paying the debt off.

Thanks for that, yes she's sat here next to me all night reading the posts everyone has been putting and trying to get ideas on how to sort this all out.

NorthernLas

https://forums.moneysavingexpert.com/discussion/2077631 Sorry Jim - in my excitement I forgot to post the link and my typing didn't make sense

There will be solutions (even if it seems a little bleak at the moment), don't give up!

JammyJim

NorthernLas - aye its a bit bleak at the moment, as we cannot think of anything other then loans, but cannot get this.

NorthernLas

Well then loans is not an option Jim, so time for an alternative strategy ... if there is not enough dosh to make minimum payments it gets sticky (but not half as bad as if you igniore it and take a loan with W0nga etc.)

You are doing the right thing you know and that is:
1. Work out how big the problem is
2. Work out how many beans are coming in and how many need to go out (taking account of essential spends)
3. Getting a strategy and testing that it works
4. Getting your sense of humour back - because you have both learned some very useful lessons

(Sorry if this sounds patronising, it is not meant with that intent) Stick around, most of the people on here are helpful

p.s. In a worst case I would really consider if you can both cope with a smaller car, or run the one you have less. Also consider what additional income can GF achieve through ebay sales or second job?

backinbusiness

JammyJim wrote: »

NorthernLas - aye its a bit bleak at the moment, as we cannot think of anything other then loans, but cannot get this.

You will look back and realise this is a good thing, honestly.

It's forcing you to examine your finances sooner rather than later (too late in my case!).

I posted just the other day that my light bulb moment came the day I couldn't access any additional credit - and thank goodness for it!

I realise it's early days for you both just now - but the inability to borrow even more will turn out to be a cloud with a silver lining.

Good luck OP (and OP's girlfriend!)

bib x

2johnies

I took a loan with wonga.com... will I be able to take more than one? they are expensive...aernt they? does anyone know of anything cheaper?