Debt management needed

mum2one

mocktudorland wrote: »

Hi MS Experts
I'm very pleased to have found your site!

FYI - I have reviewed the checklists and initial pages and it looks like I an not in Debt Crisis but will be soon if I don't start managing my money/debt properly.

I have created as suggested on the First time posters page a SOA list.

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)

Total monthly income ................................3,200
Monthly expenses (incl. HP & secured loans) 2,850
Available for debt repayments ...................350
UNsecured debt repayments ...........................667
Amount short for making debt repayments -317

Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) ......................349,500
Total Secured & HP Debt .....................-124,597
Total Unsecured Debt .............................. -63,192
Net Assets ............................................. 161,711

Household Information
Number of adults in household 2
Number of children in household
Number of cars owned 1
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 2200
Partners monthly income 1000
Benefits 0
Other income 0
Total monthly income 3200

Expenses Amount(£)
Mortgage 640
Secured/HP loan payments 0
Rent 0
Management charge (leasehold property) 0
Council tax 159 - when you have the two free months, use this money to chuck at debt with the highest apr as extra payments
Electricity 92 - is this a constant £92, ring and see if you are in credit, and also make sure you regulary supply
Gas 0
Oil 0
Water Rates 45 - for 2 of u may be worth looking into
Telephone (land line) 0
Mobile phone 31
TV Licence 12
Satellite/Cable TV 0
Internet services 83 - if this is tv, phone, + net, ring and say you want to cancel - u usually get a better deal, but def get better deal
Groceries etc. 670 - really sorry but this is way high, look at wat your buying, buy what you need, downgrade brands, - even on a standard supermarket shop there would be no need to spend over £300 pm, this alone would get the difference back.
Clothing 20
Petrol/diesel 110
Road tax 10
Car Insurance 28
Car maintenance (including MOT) 20
Car Parking ............................ 15
Other travel ................. 100
Childcare/nursery.............. 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 10
Pet Insurance/Vet bills ........ 0
Buildings Insurance .......... 48 - def shop around at renewal, for us weve knocked £70 off this yr, by changing insurers, sometimes combining words, other companes work better doing policies singly, but an evening soent searching can be frustrating, but have a glass of wine!
Contents Insurance .......... 0
Life Assurance ................. 33
Other Insurance .................. 39
Presents (birthday, christmas etc.) 20
Haircuts ............................ 10
Entertainment .................... 50
Holiday ........................... 100 - maybe at the moment a holiday could be put on hold or a shorter version? just till you get straighter
Emergency Fund ............... 10
Card Holder Protection costs 64 - sorry to ask but is that per month, if it is its daylight robbery, look at what your covered with
Bank Charges - .................... 86 - is that for a fee paying account as well as bank charges, are you getting value for money from account if fee paying
Assurance ............................. 32
Endowment 2 .................... 117
Endowment 1 ...................... 53
Pension payment ................... 143
Total monthly expenses 2850

Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 124597 (640) 4
Secured & HP Debt totals 124597 - -

Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Barclaycard 635 12 21.9
Co-Op 8426 166 20.1
Virgin 3272 61 20.6
Belgium Tax Yet 2B Paid 36822 150 0
HMRC 5500 150 3
Bank Overdraft 2000 50 12.7
Santander 5329 53 15.9
MBNA 1208 25 18.9
Unsecured Debt totals 63192 667 -

Asset Description Value (£)
Cash .................................... 0
House Value (Gross) 300000
Shares and bonds 0
Car(s) 4500
Other assets (e.g. endowments, jewellery etc) 45000
Total Assets 349500

Personal Family Loans
Mother – Car Loan – (£5,000) - Must pay back in full by March 2012
Father-In-Law (£4,200) – No deadline on loan
Son (£900) – No deadline on loan

Looking forward to your suggestions
Steve

I've put some thoughts by your figures, I have tried to be gentle, the 1st thing that has jumped out is this car loan from mum, have you paid any iof the 5k yet, really look into this.

You've taken the 1st and most difficult step, but youve done it at the right time before the problem kicks in.

Good luck with it all x

merlot123

I can't the wood for the trees with that format. It would be helpful to use the link provided to post an SOA.

You have lots of options available to you, but need to see the SOA in a better format to comment.

merlot123

mocktudorland

Hi MSE's
Thanks for all your comments so far.

Just FYI
The £92 Electricity amount is also for Gas. Is this still high for a 3 bedroomed Semi detatched house?

Water rates - The amount is just the annual figure split into monthly payments. Can you switch water providers like Electricity & Gas?

Internet services - £83.
The nature of my work (Animation production & teaching) means I do have to have the ability to download fast large amounts of data from the internet.
Normally the monthly amount is capped at £76p/m for broadband & free landline. I am aware that it gets bumped up by calling 0800 / 0845 & my 2 sons mobile phone numbers.
Maybe I need to use Skype more to call and chat with my sons!

Driving to work £110 using my hybrid car is much cheaper than public transport & and free parking.

Bank Charges - deffinately need to address this. Often due to going over the agreed overdraft then added extra charges because of returned direct debits etc.

My groceries £670 figure also includes non food items like foil/bleach/toilet rolls etc.
Excuse a possible stupid question but can two people actually manage on food with just £23-£25 per week?

Sorry - The Holiday figure of £100 per month was a mistake. We haven't had a holiday fro 8 years - We just visited relatives Should have put £12p/m or £100 per year.

Thanks again for your comments and support.
Steve

camuk81

As regards shopping we are a family of 3 and I would say push the boat out on £280.00 a month, we have cut back from £480, however we can still enjoy the odd luxury! This is everything in Asda with the odd clothes thrown in here and there!

bupster

Hi Steve,

Looking at that, the groceries leapt out at me as well. Two people can manage on £25 a week, yes - but certainly on less than £100 a week! What on earth are you buying? If you're working from home, there's really no need to be living on expensive ready meals or not cooking from scratch. As other posters have said, you could make the shortfall up from that alone. Cut back completely on entertainments too, and you're already £400 or so better off.

Can you delay or lower the payments on your Belgian tax bill? You need to be prioritising the two cards with the highest APR.

You also probably need to work out how to pay the car loan to your mum - that's a lot of money to find from nowhere in March.

Hope these comments help - there's also a link somewhere at the top of one of the stickies to a debt advisory service. Good luck!

mocktudorland

My wife tells me that there were a lot of extra entertainment bills due to having people over these last few months. Also we bought a lot of items for setting up my son to go to University. So the £670 figure has be skewed somewhat.
Still recognise the validity of your comments though MSE's
Steve

katsu

Water, you contact the supplier and ask about a meter. Should save you around £15pcm.

Use an online site like mysupermarket (sign up via top cashback for an added bonus) to see where to get your groceries cheaper. Even with entertaining and uni as you have spent £670 there must still be room to cut down on groceries.

With such a big internet bill you def want to skype the kids.

Use the saynoto0870 website to get geographical numbers for the 0845s etc that you call, so you can use your inclusive minutes.

I think £92 G&E is high. We have a 2 bed semi and spend just under £50pcm (and I think we don't use all of that). Turn radiators down or off in the empty rooms, adjust the thermostat, check timers, line curtains, use energy saving bulbs, block draughts and wear a jumper!

Hope this is some help. If you can't get to break even with these sorts of savings then you need to look at things like stopping the pension contribution (which is not great) at least until you are no longer bouncing payments.

Good luck - you have to find changes you can make so please do act asap.

oldtractor

Mocktudorland if you go to the OS board you will find lots of recipes. My budget is £60 a week for 3 adults and also another adult who is here for only half the week. This figure includes all household cleaning things eg fairy liquid and so on and also cat food for 2 cats. So £150 a month for 2 adults is do-able.

rising_from_the_ashes

mocktudorland wrote: »

The £92 Electricity amount is also for Gas. Is this still high for a 3 bedroomed Semi detatched house?

Would still say that's high - mine's the same size and I pay £64 (no arrears & no credit!)

mocktudorland wrote: »

Internet services - £83.
The nature of my work (Animation production & teaching) means I do have to have the ability to download fast large amounts of data from the internet.
Normally the monthly amount is capped at £76p/m for broadband & free landline.

Are you able to claim any of the costs back from work?

mocktudorland wrote: »

My groceries £670 figure also includes non food items like foil/bleach/toilet rolls etc.
Excuse a possible stupid question but can two people actually manage on food with just £23-£25 per week?

Sorry Steve, those figures incl toiletries and household products etc ..... honestly, try the Grocery Challenge - a really friendly bunch and loads of tips on how to cut down.

(noted your comments) even if you get to £200, that's still saving nearly £500 / month:) and would cover the shortfall

mocktudorland

Thanks again for feedback.
Have done some re-calculations and have worked out the Food figure is actually £625 Not £670 p/m.

rising from ashes - Can't claim interent frm work. Points taken about food bills - Even at £625 its still to high though
katsu - great tip for saynoto0870

My wife says its a real boost to hear your advice and also hear the tales of people saying how they have become bebt free with careful management. Thanks from me and a hug from my wife!