Help Needed Please

WilmarieG

Hello all,

I have posted before and all seemed to go well, but alas.

We (my hubby and I) use to live in Wales and were doing fine, until his company went into administration. We'd spent all our savings on a holiday and a week later, found out that he had lost his job. His salary was the larger one, mine being only £900 a month (pocket money).

Because we're from South Africa, he's on a work permit visa and had to get another job quick, which he found in Kent. So we packed our bags and moved all the way from West to East.
Needless to say, this side of the country everything is triple the price, so giving us a further knock.

We've had to take out loans and although they are all much lower now, I have a dilemma!!

In my husband's name we have a loan with a remaining balance of £7100. Nothing else in his name!

In my name however, we have a small loan of £1050, a credit card with an outstanding balance of £1250, a storecard with £175 outstanding and 2 HP's, totaling £500. Unfortunately we had to buy furniture when we moved into our new house, as we had nothing - we're renting by the way.

Then we have a joint bank account with an overdraft (drawn to the limit) of £1900.

Total = £11975

I know this isn't a bank shattering amount and we are managin payments fine. But my husband has just been told that the new company he works for will have to take back the company van, which means he needs to get some form of transport.

He has found a motorbike that he wants, which is only £800. He works close to the house and sometimes from home, so he doesn't need a car.

I don't really want to apply for another loan for just £800, so thought I would get a loan for a little more and pay off some of the other things we have at the moment. But I am having no luck, all the soft searches are giving me an "unfortunately..."

Please help, my stomach is in knots and my husband has already arranged for a meeting to test drive the bike...:(

Thank you,

Wilmarie

BlushingRose

Not that I'd advise another loan, but can't he take one out in his own name?

Poosmate

If hubby works so close to home and sometimes works from home could he not get a bicycle instead of a motorbike? No insurance, no petrol, very little maintenance and you could probably pick one up very cheap from Ebay, Gumtree, or even free from Freecycle.

How many payments are left on your HP's and your small loan? Remember as those get paid off you can then start to pay more off your storecard and credit card.

If you post up your SOA the fab peeps on here could probably find ways for you to reduce your outgoings to help you out too.

Use this link:

http://www.makesenseofcards.com/soacalc.html

Poo

WilmarieG

Hello,

SOA as follows, just finished this:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1150
Partners monthly income after tax....... 2050
Benefits................................ 0
Other income............................ 150
Total monthly income.................... 3350

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 37
Rent.................................... 750
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 44
Gas..................................... 60
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 10
Mobile phone............................ 25
TV Licence.............................. 13
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 430
Clothing................................ 0
Petrol/diesel........................... 152
Road tax................................ 0
Car Insurance........................... 41
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................. 18
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 29
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1792


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 600......(37).......0
Total secured & HP debts...... 600.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Rinus Loan.....................7200......450.......0
Wilmarie Loan..................1050......150.......0
Dorothy Perkins................175.......25........0
Credit Card....................1216......75........0
Total unsecured debts..........9641......700.......-


Monthly Budget Summary
Total monthly income.................... 3,350
Expenses (including HP & secured debts). 1,792
Available for debt repayments........... 1,558
Monthly UNsecured debt repayments....... 700
Amount left after debt repayments....... 858

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -600
Total Unsecured debt.................... -9,641
Net Assets.............................. -8,741

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I've tried getting a loan in his name, but as he has no other financial contracts, he keeps getting refused.

Looking at this statement though, I'm a little puzzled to say the least, because we never have £800 left at the end of the month...I think some serious cash watching is necessary maybe!

WilmarieG

What I also don't understand with regards to being declined, is the fact that I am a member at Check My File, which says that my credit score is 740 (I was under the impression this wasn't bad)?? And hubby's is 808.

Do I understand the scoring incorrectly?

Poosmate

The scorings don't really mean anything to be honest as all the financial institutes use their own secret scoring system.

You do have a large surplus left but you seem to have missed a few expenses such as car tax and maintenance. The other things you should budget for is medical/dental (I'd put say £5 or £10 in there), then haircuts, Presents/Christmas/Birthdays - you never buy anyone any pressies? not even each other? Haircuts? And entertainment? Also, you really should put something by into a savings account as an emergency fund and with an £800+ surplus you should easily be able to save £100 per month.

Even if you added a bit in each of these fields you'd still have a large surplus. This money is escaping some how. You need to find out where. Keep a spending diary to find out where and how.

Lastly, your shopping budget is huge for 2 adults, you could probably easily half it.

Good luck anyway.

Poo

~Beanie~

WilmarieG wrote: »

Hello,

SOA as follows, just finished this:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1150
Partners monthly income after tax....... 2050
Benefits................................ 0
Other income............................ 150
Total monthly income.................... 3350

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 37
Rent.................................... 750
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 44
Gas..................................... 60
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 10
Mobile phone............................ 25
TV Licence.............................. 13
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 430- MASSIVE for 2 adults, eaily halved if not more
Clothing................................ 0 - really nothing?
Petrol/diesel........................... 152
Road tax................................ 0 - Nothing?
Car Insurance........................... 41
Car maintenance (including MOT)......... 0 - Nothing?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 18
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 29
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - No presents?
Haircuts................................ 0- No haircuts?
Entertainment........................... 0 - Nothing? Never go out?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1792


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 600......(37).......0
Total secured & HP debts...... 600.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Rinus Loan.....................7200......450.......0
Wilmarie Loan..................1050......150.......0
Dorothy Perkins................175.......25........0
Credit Card....................1216......75........0
Total unsecured debts..........9641......700.......-


Monthly Budget Summary
Total monthly income.................... 3,350
Expenses (including HP & secured debts). 1,792
Available for debt repayments........... 1,558
Monthly UNsecured debt repayments....... 700
Amount left after debt repayments....... 858

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -600
Total Unsecured debt.................... -9,641
Net Assets.............................. -8,741

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I've tried getting a loan in his name, but as he has no other financial contracts, he keeps getting refused.

Looking at this statement though, I'm a little puzzled to say the least, because we never have £800 left at the end of the month...I think some serious cash watching is necessary maybe!

Fisrtly, can I just ask that you pleeease don't refer to £900 pm as 'pocket money'. Some of us had debt larger than yours with less than your 'pocket money' coming in!!

I also think that you have missed some items off your SOA. Nothing for car tax or maintenance? You or your partner never buy clothes or get your hair cut?

And your grocery bill is HUGE for 2 people and is the first place that massive savings could be made.

If after all the above your SOA still shows a surplus, you need to keep a spending diary where you keep a track of EVERYTHING you spend money on. It will definitely show you where your money is going!

dancingfairy

Part of the problem you're going to have is that each search for credit will show on your credit file. If you've just taken out credit when moving house and possibly had a credit check for that? then it will all start to count against you.
Secondly when you apply for say 2000 the bank will not understand that you want to consolidate - they will look at it as extra debt so it is therefore more likely that the computer will say no.
I suggest you start a spending diary and try and recoup as much as possible of that 'spare' money each month, make perhaps one last, well researched attempt for credit and then try a credit union if you have one.
Can he persaude work to wait a few months to take the van back?
Can he get lifts for a short while? The bus on the odd day?
Perhaps work will give him a small loan to buy a bike/motorbike if he asks nicely?
Best of Luck
df

Angry_Bear

Going by your SOA, you don't need a loan. If you have a very lean month you'll have the cash available to buy the bike outright ... no additional debt.

Then you can work on a spending diary to work out where your "surplus" is disappearing (mine always goes on top-up shops, milk, crisps, bread etc.) Once you've actually got some money spare at the end of each month you can start paying more than the minimums and clearing the debt.

The snowball calculator here http://www.whatsthecost.com/ is always a good motivator to find an extra bit to throw at the debt .

WilmarieG

Hello again all,

Right, I've had agood little accounting session, so I can start cutting some of this out - but first I need to be honest about my spending, right? So corrected SOA below...

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 2100
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 37
Rent.................................... 750
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 44
Gas..................................... 60
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 10
Mobile phone............................ 27
TV Licence.............................. 13
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 430
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 0
Car Insurance........................... 41
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 45
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 18
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 29
Other insurance......................... 1
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Check My File........................... 7
Part-Time College Course................ 50
Charity................................. 5
Bank Account Interest................... 15
Bank Account Fee........................ 15
Total monthly expenses.................. 1945


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 500......(37).......0
Total secured & HP debts...... 500.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclay Loan - Rinus...........7200......493.......0
Barclay Loan - Wilmar..........1050......134.......0
Credit Card....................1250......40........0
Overdraft......................1800......0.........0
Dorothy Perkins................175.......30........0
Total unsecured debts..........11475.....697.......-


Monthly Budget Summary
Total monthly income.................... 3,200
Expenses (including HP & secured debts). 1,945
Available for debt repayments........... 1,255
Monthly UNsecured debt repayments....... 697
Amount left after debt repayments....... 558

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -500
Total Unsecured debt.................... -11,475
Net Assets.............................. -10,475

I've given hubby a good pep talk regarding spending and the fact that we are currently overspending by soooo much! We are now on a cost-cutting mission! So, I am going to keep posting on this thread and whether it's read or not will not influence me...it seems laying out my finances this way helps me realise where I am overspending!

So, saving for today:

End of every month I buy the dog food (for our 2 large dogs) on which I normally spend £120 (this is for a month's food). But, having a browse on the internet and looking at the quality of foods, I have now cut this down to a 1/3 of the price almost.

Tomorrow I will pick up my reserved dog food, 2 minutes drive from my office, at the low cost price of £46.61 for a month's food for both dogs!! :T

Total saving of £73.39 - It's a good start!

Thank you all, I just needed a good talking to it seems!

WilmarieG

To add to my "shavings," as this was done last week. I spoke to my mobile phone provider and started the conversation with "I would like to cancel..."

I got offered an array of phone contracts to counter this supposed cancellation and have struck the following deal:

Instead of the £50 I paid monthly for my Blackberry, I have been offered a monthly contract of £21 (of course there are the extra occassional charges - especially with family overseas - I don't phone them, but there is the occasional text. My new contract has little texts and minutes, but enough data for me to Skype to South Africa).

That's a total monthly saving of £23 which has been added to my signature total!

To boot, they also gave me a brand new Samsung Galaxy S2 free of charge. I have also sold my Blackberry to a recycling company for £45.

Shows what you can achieve if you try harder - already spending £100 less this month!

...I spoke to a few girls at work today and got them all signed up to a car boot sale beginning of Spring...I'm going to clean out the garage and my cupboards this weekend!