Stuck!any info/advice would be appreciated

lost_in_debt_2

:eek: Hi,

I posted my situation on here earlier so sorry for repeating things-this time it might make more sense and I have added my SOA on as well-thank you for the advice in the new posters thread which has allowed me to do this.

I am new to all of this but have taken my head out of the sand and decided to face upto the facts no matter how hard it is! My husband and I have worked out a budget and have worked out that our outgoings are £270 more than we have coming in. We have cut back on as many things as we can think of-u might be able to help us cut back some more. You'll have to bear with me because up until now I have left my husband to deal with most things on his own as all the stress has caused me to have constant anxiety attacks, however I am managing to control these now and taking head out of the sand helps abit. I will put down our SOA as accurately as I can without my husband being here and then update them if I get it wrong anywhere. Currently I work part time-when i took the job on i was told i would be made full time within 4 months this has not happened and looks unlikely to happen so i am currently applying for either a higher paid full time job or another part time job on top of this one. my husband is also looking to increase his salary by looking for another job. we're both looking for jobs closer to home in order to cut our petrol costs which are a staggering £240 a month due to the location of our current jobs we need 2 cars so we have all those payments on top. We have asked the bank-HSBC to reduce our credit card and loan payments for a temporary period but they are refusing, we have also been refused a mortgage and/or loan payment holiday. The only think HSBC have offered us is a managed loan which would be spread over 12 years and would consolidate our loan, credit card and overdraft so our payments would be reduced to approx (Soz) £271 instead of £500 a month. We have been refused both an unsecured and secured consolidation loan recently. If we took the managed loan it would mean that we would have a cash card and no cheque book or overdraft facility for 12 months. The assistant manager at our branch felt that we could get ourselves out of the mess without going down this route. I am naive and have no idea about the pros and cons of a managed loan and any research i have done confuses me more-if anybody could give me some advice in plain english and not jargon i'd appreciate it! We dont really want to go down the IVA route although debt advisors have said its our only option but surely its abit drastic for £270 a month which we should be able to cover once I have more income? Really we feel stuck in a rut and no where seems to want to help us no matter how much we try-at end of the day not asking to stop payments just reduce them for a short period of time to allow us to get back on our feet! One option suggested by HSBC was to temporarily change our capital repayment mortgage to intrest ony (for 12-24months) which would help but everything the bank have suggested so far when we decide to go for it they say they cant help us which p's me off because they suggested in first place! Sorry long message just really need some support and if possible some advice!

Thank you!

Based on our budget-SOA

Income-monthly

My wages £900
My Husbands Wages £1436

---

Outgoings-monthly

Mortgage: £671
Council Tax: £99
Water: £33
Gas: £70-recently hiked up from £25 by British Gas
Electricity £53-Hiked up from £20 by BGas
Contents Insurance: £20
Life Ins: £40
Housekeeping (food, toiletries etc:) £200 (sure we could cut back abit)
TV license: £11
Broadband+TV: £20
Hire purchase: £266-Husbands car-5 payments left
Travel/Petrol: £240
Combined mobile costs: £80
Dental plan: £10
Repairs: £20
Car Ins/AA/Tax: £110
Overdraft: £20

---

Income total: £2336

Outgoings total: £1963

Surplus income: £373

---

Loans/credit cards total/ min repayment monthly and apr:

HSBC Loan: £22366/ £266.71/ 12.9%apr
HSBC Credit card: £7000/ £200/ 15.9%apr
Sainsburys Credit Card: £1100/ £25/ 15.9%apr
Capital One card: £4000/ £100/ 15.9%apr
Barclaycard: £1000/ £50/ 14.9%apr

Total Debt: £35 466
Total monthly Min repayments: £641.71

lynzpower

Hey there

Ill have a little browse over and see what I can recommend?

Based on our budget-SOA

Income-monthly

My wages £900 ( any chance of overtime? second job?)
My Husbands Wages £1436

---

Outgoings-monthly

Mortgage: £671
Council Tax: £99
Water: £33
Gas: £70-recently hiked up from £25 by British Gas (:eek: switch providers and do all energy saving tips , using est.org.uk)
Electricity £53-Hiked up from £20 by BGas ( as above)
Contents Insurance: £20 ( this is high, some people pay about 6 quid for contents a month)
Life Ins: £40 ( checked this is the cheapest?)
Housekeeping (food, toiletries etc £200 (sure we could cut back abit) ( yes for 2 of you, you can get it to about a 100, we have managed this with help from the Old style board, use up before buying more & use vouchers!)
TV license: £11
Broadband+TV: £20 ( do you NEED the TV? i bet its only digital anyway, digi channels are free- just get a digibox, in which case some broadbands are only a tenner a month)
Hire purchase: £266-Husbands car-5 payments left ( so in 5 months you will have 266 to give to other debts :beer:)
Travel/Petrol: £240 ( :eek: can you get any petrol subsidies through work? Must you drive ALL journeys- do you NEED the car? can you not use buses etc?)
Combined mobile costs: £80 ( :eek: theres a big saving here, can you go PAY- lots give free mins & texts) If not phone your mobile cos and take it down to the lowesrt tarriff & avoid using wherever possible)
Dental plan: £10
Repairs: £20 ( repairs to what - car?)
Car Ins/AA/Tax: £110 ( there HAS to be a saving here!!! can you break it down, whats for what?)
Overdraft: £20 ( interest- can you move banks to one with a free overdraft- alliance & leicester springs to mind)

---

Income total: £2336

Outgoings total: £1963

Surplus income: £373

---

Loans/credit cards total/ min repayment monthly and apr: Hows your credit rating? these APRs are massive, and if you can move to a low life of balance, or a 0% crd, then this will make sure all your repayments actually come off the balance

HSBC Loan: £22366/ £266.71/ 12.9%apr
HSBC Credit card: £7000/ £200/ 15.9%apr
Sainsburys Credit Card: £1100/ £25/ 15.9%apr
Capital One card: £4000/ £100/ 15.9%apr
Barclaycard: £1000/ £50/ 14.9%apr

Total Debt: £35 466
Total monthly Min repayments: £641.71

hope this helpS

lynz
x

lost_in_debt_2

Hi thanks all your notes really useful!

If we switch gas and electric providers would we have to pay balance off to British gas in full all at once or would this get carried over to new providers?

will look into the insurances!

The overdraft i'm paying £20 into a month is my student bank account-i'm trying to clear it-i should really put this down as another debt!

As for the mobiles i would be happy to either go pay as you go or go onto lowest tariff its my husbands account and i know he added my mob on in about oct/nov time just hope we can change it as it is high.

Will look into digibox when husband comes home tomorrow.

We cant cut down on our petrol costs, i do get an allowance for travelling i do for work but it doesnt cover the cost of petrol to and from home to work place (total 40 miles a day for me and husband total 50 miles a day)

Am looking for another part time job to bring in extra income have applied for lots waiting to hear back if worst come to worst will ask old employer if they can give me a some shifts but this will involve travelling extra 30 miles total a day so have to make sure it'd be worth while-as well as this will have to pay more tax and started paying towards my student loan but hey i'm not shy of working hard or long hours-just want it to make a difference!

Will def get housekeeping down!

The repairs £20 is for nothing but the budget planner we used on line said we should include it?!?

Cant wait for husbands car finance to be paid off!

I'm going to have to see how viable using public transport to get to work and during work would be as i am an outreach worker i am required to have transport but i guess i could use public transport, will look into bus and train fares to see.

Thanks for your help so far!!! its really made me think!x