In a bit of a mess

nicrobx4

Hi all,
I'm an avid MSE follower but this is my first post
I need some advice, i'm ruled by my debts.
I earn 26,000 a year, my hubby is self employed and work is a little thin on the ground at the moment and we're beginning to struggle.
We currently owe £130,000 mortgage, £970 a month, house worth approx £180,000
We have 4 credit cards full to bursting and a santander loan adding upto £26,000 and can only afford to pay minimum payments.
We have never missed any payments but we have just been refused a mortgage based on the amount of outstanding credit therefore our credit score has been affected and we now have a fair score. (This is under dispute as they searched more than once)
We're stuck as to which way to turn, any advice would be greatfully received

Statement of affairs below

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2300

Monthly Expense Details
Mortgage................................ 970
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 50
Gas..................................... 63
Oil..................................... 0
Water rates............................. 37
Telephone (land line).& broadband........ 30
Mobile phone............................ 50
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
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..................... 30
Contents insurance...................... 26
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1951


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 183000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(970)......0
Total secured & HP debts...... 130000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................7000......139.......7
credit card....................7500......65........17
credit card....................5500......110.......17
credit card....................3000......70........17
credit card....................4000......105.......17
Total unsecured debts..........27000.....489.......-


Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,951
Available for debt repayments........... 349
Monthly UNsecured debt repayments....... 489
Amount short for making debt repayments. -140

Personal Balance Sheet Summary
Total assets (things you own)........... 183,000
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -27,000
Net Assets.............................. 26,000

LITTLEMISSDEBT

Hi, I'm not going to be able to help with this as I, like you, am trying to wade my way out of debt.

There will be lots of really kind and helpful people on this board who will though.

Just wanted to say good luck on your debt journey and join a few threads. Really good at motivating and they make you realise that you are not alone.

J4mes

Welcome!:)

Right straight on it. Ultimately its coming down to your husbands low income, is there any other jobs that he could do around his current job, an extra £500 a month from him would make a massive difference..

Also your SOA seems to have a few areas missing, haircuts, entertainment, clothing, etc... is this 100% accurate?

You'll get plenty of help on here, from people a lot more experienced/knowledgeable than me!! (Tho maybe not til tomorrow )
James

merlot123

nicrobx4 wrote: »

Hi all,
I'm an avid MSE follower but this is my first post
I need some advice, i'm ruled by my debts.
I earn 26,000 a year, my hubby is self employed and work is a little thin on the ground at the moment and we're beginning to struggle.
We currently owe £130,000 mortgage, £970 a month, house worth approx £180,000
We have 4 credit cards full to bursting and a santander loan adding upto £26,000 and can only afford to pay minimum payments.
We have never missed any payments but we have just been refused a mortgage based on the amount of outstanding credit therefore our credit score has been affected and we now have a fair score. (This is under dispute as they searched more than once)
We're stuck as to which way to turn, any advice would be greatfully received

Statement of affairs below

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 500
Benefits................................ 0 You should be entitled to Child Allowance
Other income............................ 0
Total monthly income.................... 2300

Monthly Expense Details
Mortgage................................ 970
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 50
Gas..................................... 63 this is high
Oil..................................... 0
Water rates............................. 37
Telephone (land line).& broadband........ 30
Mobile phone............................ 50 Lower your tariff
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
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..................... 30 These two are high combined
Contents insurance...................... 26
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1951


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 183000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(970)......0
Total secured & HP debts...... 130000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................7000......139.......7
credit card....................7500......65........17
credit card....................5500......110.......17
credit card....................3000......70........17
credit card....................4000......105.......17
Total unsecured debts..........27000.....489.......-


Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,951
Available for debt repayments........... 349
Monthly UNsecured debt repayments....... 489
Amount short for making debt repayments. -140

Personal Balance Sheet Summary
Total assets (things you own)........... 183,000
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -27,000
Net Assets.............................. 26,000

Welcome to MSE and the Debt Free board.

I have added comments in above.

Your mortgage is very high compared to your current income. Could you go repayment only for a while whilst you repay some of this debt?

You should be entitled to Child Allowance.

Your SOA is not complete, you have no provision for entertainment, christmas, birthdays or clothing. You need something for these.

If you do not expect your income to increase in the next month or so, I would personally be contacting the CCCS (a debt charity) to look at arranging a DMP, you are getting further into debt each month currently and you cannot continue.

Google CCCS, it has a wealth of knowledge on the website.

It's late at night, and you are probably not sleeping due to thinking about the debt, this can be sorted, either by increasing your income or going to the CCCS, either way, it really isn't worth losing sleep over, the creditors cannot have what you haven't got.:D

Do you have an overdraft on your bank account?

merlot123

merlot123

Another question, why did you apply for a mortgage? Was this to consolidate your debts?

merlot123

nicrobx4

merlot123 wrote: »

Welcome to MSE and the Debt Free board.

I have added comments in above.

Your mortgage is very high compared to your current income. Could you go repayment only for a while whilst you repay some of this debt?

You should be entitled to Child Allowance.

Your SOA is not complete, you have no provision for entertainment, christmas, birthdays or clothing. You need something for these.

If you do not expect your income to increase in the next month or so, I would personally be contacting the CCCS (a debt charity) to look at arranging a DMP, you are getting further into debt each month currently and you cannot continue.

Google CCCS, it has a wealth of knowledge on the website.

It's late at night, and you are probably not sleeping due to thinking about the debt, this can be sorted, either by increasing your income or going to the CCCS, either way, it really isn't worth losing sleep over, the creditors cannot have what you haven't got.:D



Do you have an overdraft on your bank account?

merlot123

Thanks for the quick reply, thought i was the only one awake!:( and i no your right about the sleep thing.

Not entitled to any benefits the kids are 22 & 20, (I don't charge them any rent, the youngest is at uni, and my oldest is saving with his girlfriend to try and rent a place)

My mortgage is a repayment mortgage and its over 18 years and fixed for another 6 plus a £6,000 get out clause.
Christmas, birthdays, entertainment etcc even food some weeks has gone on the cards, we are now at our maximum limit on them all.

Overdaft £3,000

Not sure what a DMP is so i'll take a look, I think just putting it all down has woken me up, i may have to sell the hubby on ebay
Thanks again

Hiddenidenity

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 500 Needs to try and up this maybe even a part time job?
Benefits................................ 0 You should have child benefit here £146ish a month (£33.70 a week) Also you may qualify for some Child Tax Credit?
Other income............................ 0
Total monthly income.................... 2300

Monthly Expense Details
Mortgage................................ 970
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 106
Electricity............................. 50 See Below
Gas..................................... 63 :eek: This combined with elec is high check comparrisons and what your usage
Oil..................................... 0
Water rates............................. 37 Metered?
Telephone (land line).& broadband........ 30 Does this include landline? If so still might be able to get it a little cheaper
Mobile phone............................ 50 Too high can you cut tariffs switch to pay and go?
TV Licence.............................. 14 Should be £12ish
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 Can possibly cut this by £50 at least pop over to the old style board plenty of good help there
Clothing................................ 0
Petrol/diesel........................... 200 All esential?
Road tax................................ 20
Car Insurance........................... 50 Is this the cheapest for what you need on comparison to other companys?
Car maintenance (including MOT)......... 0 Should have something here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 And here
Pet insurance/vet bills................. 0
Buildings insurance..................... 30 This with contents seems quite high check comparrisons at renewal
Contents insurance...................... 26 see above
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Need something here
Haircuts................................ 0 and here
Entertainment........................... 0 and here you must spend something
Holiday................................. 0
Emergency fund.......................... 0 Need this
Total monthly expenses.................. 1951


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 183000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 130000...(970)......0
Total secured & HP debts...... 130000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
loan...........................7000......139...... .7
credit card....................7500......65........17
credit card....................5500......110.......17
credit card....................3000......70........17
credit card....................4000......105.......17
Total unsecured debts..........27000.....489.......-


Monthly Budget Summary
Total monthly income.................... 2,300
Expenses (including HP & secured debts). 1,951
Available for debt repayments........... 349
Monthly UNsecured debt repayments....... 489
Amount short for making debt repayments. -140 You need to find a way to balance this at least, Otherwise your getting deeper in debt each month

Personal Balance Sheet Summary
Total assets (things you own)........... 183,000
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -27,000
Net Assets.............................. 26,000

Made some comments above, If you have no way of making your SOA balance then I suggest calling one of the debt charites there is lots about these on here

Sorry just seen your kids are older that 18 so ignore the bit about child benefit etc

nicrobx4

J4mes wrote: »

Welcome!:)

Right straight on it. Ultimately its coming down to your husbands low income, is there any other jobs that he could do around his current job, an extra £500 a month from him would make a massive difference..

Also your SOA seems to have a few areas missing, haircuts, entertainment, clothing, etc... is this 100% accurate?

You'll get plenty of help on here, from people a lot more experienced/knowledgeable than me!! (Tho maybe not til tomorrow )
James

Hi there,
Thanks for being awake
Your right about the job front, like i said this has never really happened before so he seems to be sticking his head in the sand a bit, its a difficult one, he seems to think work will pick up. We've not really had the, GO AND GET A JOB, arguement, it's coming though!

Thanks again
Nik

merlot123

nicrobx4 wrote: »

Thanks for the quick reply, thought i was the only one awake!:( and i no your right about the sleep thing.

Not entitled to any benefits the kids are 22 & 20, (I don't charge them any rent, the youngest is at uni, and my oldest is saving with his girlfriend to try and rent a place)

My mortgage is a repayment mortgage and its over 18 years and fixed for another 6 plus a £6,000 get out clause.
Christmas, birthdays, entertainment etcc even food some weeks has gone on the cards, we are now at our maximum limit on them all.

Overdaft £3,000

Not sure what a DMP is so i'll take a look, I think just putting it all down has woken me up, i may have to sell the hubby on ebay
Thanks again

Husband's don't fetch much on Ebay, I tried that one:D However, Ebay as much as you can, it will make you feel a little better if you are proactive. Every little does help.

As regards to your children, a small amount of rent would help both of you, it would help you pay for the food etc, and it also teaches your child things are not free in life, it cost money to live.

A DMP is a Debt Management Plan, in a nutshell, its where an agreement is made with your creditors to pay a smaller amount off your debt each month, and hopefully they will freeze the interest too. This will impact on your credit rating though, so be sure you have no other solution first, like increasing your income. However, having said that, it would make your repayments and life a little more comfortable, and who needs any more credit anyway.

Other ideas are, sell your home, you have equity in it and move somewhere cheaper or rent and you could be debt free. (not an easy decision, but an option).

Do you have PPI (payment protection insurance) on any loans, cards etc? If so, you could read Martin article and possibly reclaim that back.

Could you sell your car and get a cheaper one?

You have options available to you at this time, as you have realise sooner rather than later you are struggling.

Can you edit your first post and pop your overdraft into the unsecured borrowings, this is also classed as a debt.

merlot123

nicrobx4

merlot123 wrote: »

Another question, why did you apply for a mortgage? Was this to consolidate your debts?

merlot123

Our mortgage was initially £1460 a month, (12 years) tried to remortgage to reduce the payment, couldn't do this because of the existing debt so i increased the term

It's a ten year fixed rate (seemed like a good idea at the time) initially for £108,000 we borrowed on top for home improvements

fatbelly

nicrobx4 wrote: »

Not sure what a DMP is so i'll take a look, I think just putting it all down has woken me up, i may have to sell the hubby on ebay
Thanks again

If he doesn't sell for enough to clear the mortgage, then you'll need to contact one of the organisations in Martin's list. They will all either manage a dmp for you or help you set one up. All these are fee-free so don't go outside this list for help/info