Is It Too Late For Help????

skint_lad195

Hey everyone, I have been lurking in the shadows for some time now and I have decided that it is time for me to do something about the mess im in.

I'll try and post everything but if I miss anything im sure someone will let me now.

Monthly Income

Salary: £1175
Child Benefit and WFTC: £176

Total Income = £1351

Monthly Outgoing

Mortgage + buildings & contents insurance: £320.46 - £61000 outstanding
Secured Loan: 274.85 - £28000 outstanding
personal Loan: £119.04 - £6000 outstanding
Barclay Card: £12 - £1100 outstanding
Mastercard: £50 - £1700 outstanding
Personal Loan: £68 - £2500 outstanding
catalogue: £22 - £500 outstanding
Store Card: £12 - £260 oustanding
Hire purchase: £68.64 - £2500 outstanding
Phone: £15
Contract Mobile: £37
Sky: £46
Council Tax: £86
Electric: £50
Gas: £20
Car Insurance: £40
Diesel: £50
Food: £100
Ciggarettes: £100

Total Outgoings = £1490.99

My house has the Mortgage and the Secured loan on it. The house is worth around £95k. My mortgage company are not interested in lending me the money to pay everything off.

Living on this is 2 adults and a child. As you can see I spend more than I earn and I really dont know what to do.
I have another child due in June.

Any Help will be appreciated.

Skint_Lad195

lindsaygalaxy

Are you able to remortgage to pay off your debts and just have one payment going out. Also, are you sure you only spend £100 a month of food? That seems very little for 3 of you. Then there is the obvious one, cutting out, or at least cutting down on smoking is gonna save you a lot of money!

hypno06

Hi and welcome.
The first things that jump out are sky - you don't need it and it is a large amount of cash each month that you cannot afford.

Ciggies - this has to be the obvious one to go. Not cheap and not good for you or for the family.

These on their own will make a big difference.

Have a look at Southernscousers sticky on posting your SOA at the top of this board, it is really helpful and will give you and us far more to work on.

Good luck!

arthur_dent_2

There are some obvious ones here like cutting out sky and surviving on Freeview. Car insurance seems really high if you use the price comparison sites next time they should save you loads. Ciggies have to go for both your financial and bodily health. Mobile phone costs seem high can you go to a cheaper deal, survive with and older phone for a while or really if possible use pay as you go. Lojok at Martins article on changing your gas and elecctricity supplier it might be cheaper to combine the two. Check that your council tax banding is accurate. Get rid of catalogues and store cards first as they are high interest rate. Put as much Credit card debt onto 0% cards or low interest life time debt deals. Get your Buildings and contents insurance seperately to your mortgage lender, it WILL be cheaper.


Good luck, don't panic (espescially with a small one due) remember child benefit will increase. You have taken the first steps to dealing with everything rather than sweeping it under the carpet.

CLAPTON

several things

firstly can you re-organise your soa so the unsecured debts are separated from the main spending
and also add all the APRs for the debts

so it should look like this

a. list of income
b. a detailed list of spending (include mortgage and secured debt but exclude unsecured debt)
c. a total of spending as above
d. now you can see how much you have to pay debt monthly by forming income minus spending
e. a list of unsecured debts i.e. debt amount, monthly debt repayment , APR
f. a total of unsecured debt and of monthly unsecured debt repayment


secondly your Spending is seems to leave out things
so you have nothing in for the annual or one off things like car tax,servicing, repairs, mot, AA/RAC, or clothes, presents, any holidays etc.
as a home owner you need an emergency fund

you can't afford sky, ciggies or mobile at 37 (think PAYG at £5 a month)

please redo the SoA in the format suggested and include as many of the other costs as you can ..you must be realistic.

only when we can see the real level of spending is it really possible to advise.

Bagpuss1973

Hi skint-lad - not too sure that I can help any more than the above really

Again it is the obvious bits like lose the sky for a while, cut down on the smoking even if you can't totally give up yet - contact your GP for free help at giving up.
Change your mobile to either a pay as you go or a cheaper tariff.
Could you move your store cards to a 0% credit card or even your other credit cards because it would probably be cheaper as "store" cards have mega high interest on them.

You don't mention internet charges? Do you just use computer at work?

You also don't appear to mention water charges?

Just an idea because I've no idea of your circumstances/distances - if you are really only spending £50 on diesel (I am assuming to work) can you cycle/car share? Obviously this might be totally insane depending on your hours/route etc

DO NOT add any more to your mortgage, remember if you can't pay you will lose your home on SECURED debt.

Have you checked that you are not entitled to any further tax credits or help? check out www.entitledto.co.uk a very helpful site.

Goodluck

Bagpussx

in_my_wellies

Hi,
Would a PAYG mobile be cheaper, especially if you will be at home with the baby for a while you'll be using the land line phone. Then try to cut smoking and live without sky and you balance your books
Good Luck!

angelavdavis

Hi there and welcome to the forum!

So far all good advice - here's a bit of putting it into perspective:

If from this month, you cut out ciggies, Sky and cut down on mobile for four months you could pay off your £260 store card and £500 catalogue debt completely.

By June, you would be £200 better off every month and have cleared two debts!!!!:j

Check out MSE forums to see what tips other smoker are giving on packing in the habit.

Good luck!!!

moozie_2

Hello and welcome

Lets have a look...

skint_lad195 wrote:

Monthly Income

Salary: £1175
Child Benefit and WFTC: £176 Are you claiming all you are entitled to?
Total Income = £1351 You need to increase this either by additional employement or by changing jobs.
Monthly Outgoing

Mortgage + buildings & contents insurance: £320.46 - £61000 outstanding
Secured Loan: 274.85 - £28000 outstanding APRs and status on all those?
personal Loan: £119.04 - £6000 outstanding
Barclay Card: £12 - £1100 outstanding
Mastercard: £50 - £1700 outstanding
Personal Loan: £68 - £2500 outstanding
catalogue: £22 - £500 outstanding
Store Card: £12 - £260 oustanding
Hire purchase: £68.64 - £2500 outstanding
Phone: £15
Contract Mobile: £37 Cut it out and use pay as you go
Sky: £46 You cannot afford this, needs to go
Council Tax: £86
Electric: £50 £70 for these two is high. I pay £55 for a three bed semi. Try https://www.uswitch.com
Gas: £20
Car Insurance: £40 This is extortionate! :eek: Any particular reason?
Diesel: £50 Can you reduce this at all?
Food: £100
Ciggarettes: £100 I am afraid you cannot afford these

Total Outgoings = £1490.99

My house has the Mortgage and the Secured loan on it. The house is worth around £95k. My mortgage company are not interested in lending me the money to pay everything off. I think securing unsecured debts is a bad idea anyway so this is a blessing in discuise!

Living on this is 2 adults and a child. As you can see I spend more than I earn and I really dont know what to do.
I have another child due in June.

Any Help will be appreciated.

Skint_Lad195

You have a very hard task there Skint. Ebay/Amazon anything you can and cut out any unecessary expence. You must increase your income as soon as you can get additional/another job.

Please make sure you pay your mortgage and council tax before anything else!

Good luck!

System

lindsaygalaxy wrote:

Are you able to remortgage to pay off your debts and just have one payment going out.

No, No, No - do not do that. Currently your debts are unsecured and your house is not at risk. If you tie yourself in to a secured loan then your will be at risk. Dont do it. Its never too late - we've all learned that. Make this page your homepage and spend every possible waking hour on this site!! I do! Oh and welcome, and rest assured, you are in the right place.

Lenny

System

Oh, Ive just read the secure loan bit on the original post. Sorry cannot advise further on how to body swerve it. Could Payplan or CCCS help? ANyone?