Newbie drowning in debt circa £330K

[Deleted User]

Joanne123 wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2350
Partners monthly income after tax....... 905
Benefits................................ 1022
Other income............................ 0
Total monthly income.................... 4277
Monthly Expense Details
Mortgage................................ 1360
Council tax............................. 177Is this over 10 or 12 months, if 10, ask your council can you spread over 12.
Electricity............................. 85This seems on the high side, but maybe not if there are people at home all day - my suggestion would be first to check that you are not in credit with the company (and if so claim it back), if not then check that you are on the cheapest tariff with the cheapest company that services your area (check comparison sites), and if switching is cheaper, then check cashback sites for incentives (eg onepoll cash back, topcash back, Quidco), also ensure that things get switched off instead of left on standby, only have things switched on eg lightes etc in rooms where people are.
Gas..................................... 80As above, also switch the thermostat down by a few degrees on the hot water boiler and the heating (you're unlikely to notice), also switch down or off radiators in rooms that are empty.
Water rates............................. 36
Telephone (land line)................... 34What does this include? Shop around and see if you can get it cheaper elsewhere - Talktalk have phone and internet package for approx £20-£25 per month, so do a comparison with companies (and again check cash back sites if cheaper elsewhere)
Mobile phone............................ 14Not expensive, but do look at other companies eg GiffGaff
TV Licence.............................. 12.12
Internet Services....................... 0??
Groceries etc. ......................... 760Wow! This is astronomical, and I think that this can be reduced by a huge amountOnly buy what you will use, shop with a list and stick to it, meal plan, batch cook, drop brands, don't shop when hungry, try lidl/aldi - also take a look around the old style board for hints and tips on cheap recepies
Clothing................................ 40Every month? Try charity shops, e-bay, car boots, - all sell on (eg e-bay) what's no longer worn/still wearable
Petrol/diesel........................... 60Given how low this is, is it worth having two cars (or is the petrol of one a work expense?)
Road tax................................ 50
Car Insurance........................... 40
Car maintenance (including MOT)......... 25
Car parking............................. 2
Other travel............................ 5
Other child related expenses............ 186What does this cover? Can you get the same or similar for cheaper elsewhere?
Medical (prescriptions, dentist etc).... 14Would a pre-paid certificate be cheaper?
Buildings insurance..................... 16.5
Contents insurance...................... 16.5At renewal shop around and see if you can get the same cover for cheaper elsewhere
Life assurance ......................... 122Can this be gotten cheaper elsewhere? Seems high (but I really am not an expert)
Presents (birthday, christmas etc)...... 30Does this get saved somewhere for when it's needed?
Haircuts................................ 40Cut back on this - see if there is a local college near by that does trainee cuts or demonstration cuts etc for free or cheap, go an extra week or two in between
Entertainment........................... 20what does this cover?
Holiday................................. 50Not sure that you can afford this right now! Does this get saved somewhere for when it's needed?
Emergency fund.......................... 30Does this get saved somewhere for when it's needed?
Total monthly expenses.................. 3305.12

Assets
Cash.................................... 0Should there not be something here for non-monthly expenses - car tax, MOT, presents, Xmas, emergency savings?
House value (Gross)..................... 320000
Car(s).................................. 2500
Other assets............................ 800What's this? Anything that can be sold to pay off a chunk of debt?
Total Assets............................ 323300

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 261000...(1360).....5.89Would it be possible to extend the mortgage by a few years to reduce your monthly payment? This would give you more available to pay of the more expensive debt, and once other debts are gone you could reduce it again and/or overpay?
Total secured & HP debts...... 261000....-.........-

Unsecured Debts
[FONT=courier
new]Description....................Debt......Monthly...APR[/FONT]
John Lewis (me)................8054......16.9......270I think the monthly payment and the APR are the wrong way around here?
John Lewis (Husband)...........6750......17.9......195And here?
Kays...........................260.......45........0
Nationwide.....................5950......133.......17.9
Bank of Scotland...............6977......69.77.....3.94
MBNA (husband).................3748......115.......23
MBNA (me)......................7942......181.......14.95
Halifax one CC.................1849......18.49.....7.92
Post Office CC.................945.......94.5......18.9
Marks and Spencer CC...........10849.....270.......18.9
Overdraft (husband)............1200......0.........21.2
Overdraft (joint acco..........1800......0.........18.9
Overdraft (me).................1650......0.........18.9
Zopa...........................1682......210.......8.9
Barclaycard (husband)..........10780.....195.......11.4
Barclaycard (me)...............7800......185.......10.5
Total unsecured debts..........78236.....1551.56...-

Monthly Budget Summary
Total monthly income.................... 4,277
Expenses (including HP & secured debts). 3,305.12
Available for debt repayments........... 971.88
Monthly UNsecured debt repayments....... 1,551.56
Amount short for making debt repayments. -579.68
Personal Balance Sheet Summary
Total assets (things you own)........... 323,300
Total HP & Secured debt................. -261,000
Total Unsecured debt.................... -78,236
Net Assets.............................. -15,936

I have made some comments above, HTH,

D9

If you cannot manage to get your income to meet your expenditure, then you are getting further in to debt each month, and while I think there are significant savings to be made in your SOA (most notably groceries), only you can identify if this is achievable.

If you are unable to manage, contact one of the debt charities who will be able to give you free impartial advice on your situation,

HTH

D9

RAS

I assume that you have a joint mortgage or at least the house is in joint names?

Looking at the distribution of your debts, mine, his and ours, please please BOTH get proper advice from either CCCS, NDL or CAP.

You have over £60K in equity, so you need advice that protects your situation.

If you were to go bankrupt or do an IVA the Official Receiver will expect you to re-mortgage or sell to release that equity.

Given that you debt is only £15K more than your equity you could end up paying 3 (BR) or 5 (IVA) years debt repayments plus the equity plus the OR fees which would in total be more than you owe now.

Because some of the debt is on your husband's name, some yours and some joint, the debt companies will need separate arrangments with each entity.

Joanne123 wrote: »

Statement of Affairs and Personal Balance Sheet
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 261000...(1360).....5.89
Total secured & HP debts...... 261000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
John Lewis (me)................8054......16.9......270
MBNA (me)......................7942......181.......14.95
Overdraft (me).................1650......0.........18.9
Barclaycard (me)...............7800......185.......10.5

Me - debt= 25446

John Lewis (Husband)...........6750......17.9......195
MBNA (husband).................3748......115.......23
Overdraft (husband)............1200......0.........21.2
Barclaycard (husband)..........10780.....195.......11.4

Husband debt = £22478

Kays...........................260.......45........0
Nationwide.....................5950......133.......17.9
Bank of Scotland...............6977......69.77.....3.94
Halifax one CC.................1849......18.49.....7.92
Post Office CC.................945.......94.5......18.9
Marks and Spencer CC...........10849.....270.......18.9
Overdraft (joint acco..........1800......0.........18.9
Zopa...........................1682......210.......8.9

Total unsecured debts..........78236.....1551.56...-

Monthly Budget Summary
Total monthly income.................... 4,277
Expenses (including HP & secured debts). 3,305.12
Available for debt repayments........... 971.88
Monthly UNsecured debt repayments....... 1,551.56
Amount short for making debt repayments. -579.68
Personal Balance Sheet Summary
Total assets (things you own)........... 323,300
Total HP & Secured debt................. -261,000
Total Unsecured debt.................... -78,236
Net Assets.............................. -15,936

RAS

Joanne123 wrote: »

I work but husband doesn't (he's age 66 and retired). He cares for the children, particularly our son who is disabled.

I think that your husband is going to have to look for work that he can do whilst the children are at school.

You can make the budget balance, but there is no scope to pay back the debt unless you increase the household income.

Jox

Good luck Joanne (same name as me heehee), the first step is facing up to things and eliminating all the unneccessary things for now - with all the tips above you can do it.

rokchik

Hello, I'm more of a lurker than a poster, but I had to come on just to tell you to please ignore the previous poster who's telling you, (and anyone else who's reading), that you can sell your eggs and get a cheque for £1200 at the age of 49 - of course you can't!! (As I am sure you are well aware!!).

No reputable clinic will touch anyone under the age of 35; you also have to have a fairly impeccable family health history.

Hope you get some help with your debts, we have about £16k unsecured and my husband is unemployed, (desperately job hunting). It's awful isn't it. Good luck!

rokchik

Sorry re: my previous post, obviously that should have read "OVER the age of 35", not under. D'oh, sorry!

Upsidedown_Bear

rokchik wrote: »

Hello, I'm more of a lurker than a poster, but I had to come on just to tell you to please ignore the previous poster who's telling you, (and anyone else who's reading), that you can sell your eggs and get a cheque for £1200 at the age of 49 - of course you can't!! (As I am sure you are well aware!!).

No reputable clinic will touch anyone under the age of 35; you also have to have a fairly impeccable family health history.

Hope you get some help with your debts, we have about £16k unsecured and my husband is unemployed, (desperately job hunting). It's awful isn't it. Good luck!

The maximum you can recieve is £750, no idea where they got £1200 from.

http://www.hfea.gov.uk/egg-donation-and-egg-sharing.html

[Deleted User]

Unsecured Debts
Description....................Debt......Monthly.. .APR

**John Lewis (me)................8054......270......16.9
**John Lewis (Husband)...........6750......195......17.9
Kays...........................260.......45....... .0
Nationwide.....................5950......133...... .17.9
Bank of Scotland...............6977......69.77.....3.94
MBNA (husband).................3748......115.......23
MBNA (me)......................7942......181.......14.9 5
Halifax one CC.................1849......18.49.....7.92
Post Office CC.................945.......94.5......18.9
Marks and Spencer CC...........10849.....270.......18.9
Overdraft (husband)............1200......0.........21.2
Overdraft (joint acco..........1800......0.........18.9
Overdraft (me).................1650......0.........18.9
Zopa...........................1682......210...... .8.9
Barclaycard (husband)..........10780.....195.......11.4
Barclaycard (me)...............7800......185.......10.5
Total unsecured debts..........78236.....1551.56...- The monthly figure if you did get the Monthly payment and APR mixed up in the first column is £1981.76

Monthly Budget Summary
Total monthly income.................... 4,277
Expenses (including HP & secured debts). 3,305.12
Available for debt repayments........... 971.88
Monthly UNsecured debt repayments....... 1,551.56
Amount short for making debt repayments. -579.68 - Again, if you did muddle up the first two listed debts, this is also greater, -£1009.88

Personal Balance Sheet Summary
Total assets (things you own)........... 323,300
Total HP & Secured debt................. -261,000
Total Unsecured debt.................... -78,236
Net Assets.............................. -15,936

** Please double check these APR's as I have assumed that you have put them in the wrong columns and have changed them around

Please confirm if the APR's were correct. While I think that there is plenty of room for cutting in your SOA I am really unsure if cutting it by more than £1000 each month is sustainable, please please contact one of the debt free charities.

Details of who can be contacted are on this sticky: https://forums.moneysavingexpert.com/discussion/2077631

HTH,

D9

ellesbellesxxx

As a Teacher, was just going to say about school trips - do talk to Head - esp as you have twins, they would not expect you to keep getting further into debt for voluntary funds - even if you contributed a little they would be grateful. At our school, for twins they expect a lot less and have actually just started suggesting a family contribution. I would be mortified if I thought a family would struggle due to spending for a tripx

ellesbellesxxx

Ps I can see that would be hard for hubby to work - could he do ebaying and surveys etc around childcare?