Opinions on situation....

orcocan

i think your question is wrong... sorry for being blunt but you have negative assets so it basically means you have been living beyond your means. Anything that might go wrong in your life you'd have no savings to rely on. Yes you see a lot worse on this board but I don't think you should look at people who have been mismanaging their finances for years for inspiration.
If I were you, I'd try to
1) revise your monthly spending and/or try to increase your income
2) become debt free as rapidly as you can
3) once you're done set up an emergency fund and save up at least a few months salary

best of luck!

RAS

AmnestyJon wrote: »

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 and ( 1 Bike )

Monthly Income Details
Monthly income after tax................ 600
Partners monthly income after tax....... 1000
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1600

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 10
Mobile phone............................ 55 - drop you tariffs if possible
TV Licence.............................. 11
Satellite/Cable TV...................... 15 - do you need this?
Internet Services....................... 15
Groceries etc. ......................... 250 - you can shave £100 off this easily
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 21
Car Insurance........................... 110 - try to haggle this dowmn on renewal
Car maintenance (including MOT)......... 0 - you need this
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..................... 0
Contents insurance...................... 0 - you need this
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 -0 you need to budget for these.
Haircuts................................ 0 - never
Entertainment........................... 0 - ever?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1432


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 200
Total Assets............................ 3700

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Motorbike......................6000......140.......0
Littlewoods....................170.......35........0
Car............................1000......55........0
Total unsecured debts..........7170......230.......-


Monthly Budget Summary
Total monthly income.................... 1,600
Expenses (including HP & secured debts). 1,432
Available for debt repayments........... 168
Monthly UNsecured debt repayments....... 230
Amount short for making debt repayments. -62

Personal Balance Sheet Summary
Total assets (things you own)........... 3,700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,170
Net Assets.............................. -3,470

This is based on our MINIMUM income, which hasn't happened yet as my hours nor my partners ( touch wood ) have never been on our minimum.

OK

So you are living totally to the limit of your income and could come a cropper at some stage.

Those debts do have APRs and you need to know them. Next time you earn £1800, pay off and ditch the Littlewoods catalogue.

Check out the current balances on the loans - not what you borrowed but what you owe.

Can you overpay the loans without penalty (I am going to bet not).

I suggest a year belt tightening and putting the money aside.

1. You may not be able to pay off the loans any quicker
2. You need to start budgetting for replacing a car without taking out yet another loan.
3. You neeed a safety net in case either of you loses your job and can only get JSA.

downsizer3

The ideal is no debt and some savings rather than how much debt you can cope with.
As per the previous poster - try to get rid of the debts by cutting back and hitting it as hard as you can. Then get some savings behind you. Ditch the debt whilst you can - if one of you lost your job it could easily come unstuck when you can't meet debt repayments - DFW is full of people in that boat sadly.

AmnestyJon

Thanks for all the input, I apologise about missing some of the information out, the debts interest rates are in paperwork somewhere in my folder I'm yet to search for, but the figures were the final amounts including the interest,

Luckily littlewoods is being cleared soon as alot of you have said it's bad and nasty!

I've also left out random things, such as presents and haircuts, as sometimes a friend will cut our hair for free, or sometimes she wants a little money, depends really, so anything that fluxes alot, I kinda left out as it wasn't a ganrunteed outgoing.

I can see what alot of you are saying in regards to having nothing to fall back on and needing some savings and how our assets don't even equal to our debts total.

I appreciate all your insight and I'm pushing all I can for more hours at work to clear this all up,

Another thing that might add to my original query of " is this a normal " situation, is me and my partner are only 21, I guess that's why I was asking if it's a normal situation, as well I'm still young and thought it was alot of debt for our age.

orcocan

mate if you're 21 and you're questioning whether this is something you should think about, you're definitely on the right track

don't lose your sleep trying to figure out whether this is "normal", that's completely irrelevant. Do the right thing, for yourself, for your partner and for your future. Pay off all your debt and start saving.

Rather than wondering if it's "normal", the question you should ask is 'is it "manageable"'. The answer is absolutely yes. Sounds like you already know what you need to do, so keep doing it and you'll see in a few years you won't regret it. So don't worry about "normal", if your friends go on fancy holidays they can't afford while you're tightening your belt just ignore them. You'll know you're doing the right thing. So best of luck mate! :-)

AmnestyJon

orcocan wrote: »

mate if you're 21 and you're questioning whether this is something you should think about, you're definitely on the right track

don't lose your sleep trying to figure out whether this is "normal", that's completely irrelevant. Do the right thing, for yourself, for your partner and for your future. Pay off all your debt and start saving.

Rather than wondering if it's "normal", the question you should ask is 'is it "manageable"'. The answer is absolutely yes. Sounds like you already know what you need to do, so keep doing it and you'll see in a few years you won't regret it. So don't worry about "normal", if your friends go on fancy holidays they can't afford while you're tightening your belt just ignore them. You'll know you're doing the right thing. So best of luck mate! :-)

Thanks, that's a real uplifter!

I'm glad someone thinks I'm on the right track ! I wasn't sure :rotfl: