£80,000

thejames

Shovel_Lad wrote: »

I have always found healthy eating is less expensive than junk food eating. £600 is a huge amount for a family of 4 to pay, many families spend less than half that amount and eat well. The Old Style board could help you here, but maybe you could start by reviewing your receipts and meal plans. Expensive and unnecessary things have a habit of sneaking in if you are not vigilant.


Are you sure this is the monthly charge? Even as interest only, £267 a month on £215,000 would mean you are getting your mortgage at 1.49% which seems incredibly low to me.

Yes we spoke to them a few years ago and asked if we could lower it as we were drifting into debt as you can see it didnt change. So yes it is right, unfortunatly in a sad way if it were higher at least we had something that was ours.:o

thejames

debtfreewannabe321 wrote: »

also keep a spend diary! when i first started on here it was invaluable to me, to see exactly where every penny was going. you'd be surprised.

I have 3 kids & a husband and our grocery bill is £250 or thereabouts every month. sometimes we go over but not by much x

Thats amazing thank you x

katsu

thejames wrote: »

Sorry missed three things...


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1200 is this including the £300 you say you are being overpaid or did you take £300 off? Do you work think you are being overpaid?
Partners monthly income after tax....... 2100
Benefits................................ 138
Other income............................ 0
Total monthly income.................... 3438
Monthly Expense Details
Mortgage................................ 267
Secured/HP loan repayments.............. 37 what is this?
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 116 is this annual/12 months or is this what you pay each month for 10 months, giving you 2 months without payments, where you can then pay the 116 off a debt in those 2 months?
Electricity............................. 55 G&E are high at £110 combined. Are you on estimated bills? Can you log in to your utility provider and get your KWH usage for both then use a comparison site to see if you would be better off to switch. Also, turn everything off, no standby, check thermostat for CH etc.
Gas..................................... 55
Oil..................................... 0
Water rates............................. 26.54
Telephone (land line)................... 60 If this is just phone look at dropping your package. If it includes internet still check for better deals and if it includes TV cancel the TV element.
Mobile phone............................ 120 How long left on the contracts? Call and see if you can drop a tariff. Alternative idea would be to sell a handset, then put the sim in a cheap handset for now, but have say £200 or whatever from the handset sale towards your debt clearting.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 600 Use the oldstyle boards, do meal plans, perhaps shop online and get it delivered. Have beans on toast one night for tea. Shop at Aldi or Lidl, drop a brand. You can easily save £200 here.
Clothing................................ 0
Petrol/diesel........................... 240 how many non essential trips? Do motorway driving at 60 not 70 to save fuel.
Road tax................................ 22
Car Insurance........................... 85 This is really high - use comparison sites at renewal time. Is the car essential for work as the insurance is over £900 a year :eek:
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 12
Pet insurance/vet bills................. 0
Buildings insurance..................... 49
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1826.66

Assets
Cash.................................... 0
House value (Gross)..................... 240
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2240

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 2150000..(267)......0
Hire Purchase (HP) debt ...... 0........(37).......0 what is this?
Total secured & HP debts...... 2150000...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Nat west.......................18.713....283.......0 when does this finish?
Co Op..........................18.416....270.......0 when does this finish?
Credit cards...................44.859....1060......0
Car............................3000......100.......0 when does this finish?
Over draft.....................2500......0.........0 Is there any monthly fee for this?
New Boiler.....................5400......97........0when does this finish?
Total unsecured debts..........10981.99..1810......-

Monthly Budget Summary
Total monthly income.................... 3,438
Expenses (including HP & secured debts). 1,826.66
Available for debt repayments........... 1,611.34
Monthly UNsecured debt repayments....... 1,810
Amount short for making debt repayments. -198.66
Personal Balance Sheet Summary
Total assets (things you own)........... 2,240
Total HP & Secured debt................. -2,150,000
Total Unsecured debt.................... -10,981.99
Net Assets.............................. -2,158,741.99

I think you are still missing some things in your SOA unless you never go out and have a drink or spend any money on entertainment etc. You might find a spending diary helpful.

Try and do something with the phones and groceries and you will be able to cover the £198 you are currently showing as short. I think you will probably find you are a bit more short than that tho.

Hope the above ideas help.

sueh6

Martin is adamant that there is no problem that's not solveable in one way or another.

We had around 65k of debt (when it was totalled) - that was 18 months ago and come next month we will be under 40k with a debt free date of Dec 2013. It can be done but it takes a real commitment to getting rid of it. For me it has almost become an obsession and everything is thought about before being spent and we now buy nothing using cards except for our debit card.

Both you and your DH need to feel exactly the same about getting rid of it otherwise it wont work as it is such a huge amount. We don't have a DMP, we do it ourselves and use the snowball calculator religiously every month on Whats the Cost.

Good Luck

thejames

Shovel_Lad wrote: »

I have always found healthy eating is less expensive than junk food eating. £600 is a huge amount for a family of 4 to pay, many families spend less than half that amount and eat well. The Old Style board could help you here, but maybe you could start by reviewing your receipts and meal plans. Expensive and unnecessary things have a habit of sneaking in if you are not vigilant.


Are you sure this is the monthly charge? Even as interest only, £267 a month on £215,000 would mean you are getting your mortgage at 1.49% which seems incredibly low to me.

My husbands a junk a holic, would be happy with pizza and chips every night, I guess maybe I need to get my head around the food side, I know thats been one of our biggest problems. Thank you

thejames

sueh6 wrote: »

Martin is adamant that there is no problem that's not solveable in one way or another.

We had around 65k of debt (when it was totalled) - that was 18 months ago and come next month we will be under 40k with a debt free date of Dec 2013. It can be done but it takes a real commitment to getting rid of it. For me it has almost become an obsession and everything is thought about before being spent and we now buy nothing using cards except for our debit card.

Both you and your DH need to feel exactly the same about getting rid of it otherwise it wont work as it is such a huge amount. We don't have a DMP, we do it ourselves and use the snowball calculator religiously every month on Whats the Cost.

Good Luck

Thank you, its so true, weve been our own worst enemys. This has been a big battle Im sure weve got through the hardest part, and hopefully this will make it easier now that were a stronger couple.:A

Hovel_lady

Hope this link is the correct one

https://forums.moneysavingexpert.com/discussion/3459025

There are some useful links to other websites in it.

DVardysShadow

thejames wrote: »

Assets
Cash.................................... 0
House value (Gross)..................... 240
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2240

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 215000...(267)......0
Hire Purchase (HP) debt ...... 0........(37).......0
Total secured & HP debts...... 215000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Nat west.......................18.713....283.......0
Co Op..........................18.416....270.......0
Credit cards...................44.859....1060......0
Car............................3000......100.......0
Over draft.....................2500......0.........0
New Boiler.....................5400......97........0
Total unsecured debts..........10981.99..1810......-

Thanks. Now we can see some more errors, I think.

When you put those right, it looks like 75,000 debt overall and a monthly deficit of £200.

I would say you need to find yourselves another £1000/month of savings and extra income in order to bring that situation around - and this will take you probably 6 or 8 years. If this is not realistic, you need to think about bankruptcy or related options. Unfortunately, downsizing your house is probably out of the question, as any mortgage would cost more than you are paying now - and you would also need at least the equity you have in the property to buy again. And no real relief from renting, as this will also cost more, although it would release £20k after costs if you have not been over optimistic on the value of your house.

merlot123

Firstly, welcome to MSE and the debt free board.

You have done something tonight many others on the board haven't and that is post an SOA, it's not an easy thing to do, and certainly never easy seeing it in black & white.

I recommend a slow cooker to make cheap meals.

Also can you Ebay everything that isn't stuck down, every little does really help.

You are not alone with a debt figure like yours, and Martin Lewis say no problem is unsolvable and yours is no different.

I do think you need to think about contacting a debt charity as you are currently overspending each month, granted you can reduce your mobiles and grocery shopping, but you need to think long term. How an earth are you going to repay your capital on your mortgage, you need to address this along with your debt. Being on an interest only mortgage should be seen as a short term measure, but with debts at your level it could be sometime before you start repaying the capital.

I've just added your debt, I make it £92,888, unless you have made a mistake in the figures.

merlot123

thejames

oh. Thats not a good situation really.