consolidation

monnie38

hiya,
im wondering if you can help me?
i am recently married and paying off a small loan for this.
we own our house and have a few debts,
I know that our debt is small compared to some however it is painful!
we really would love to try for a baby however in our situation we really cant afford it.

i did the SOA calculator(below) and i was wondering if you think we shold carry on paying our debt or possible go to a consolidation company to repay only 1 debt ?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2600

Monthly Expense Details
Mortgage................................ 558
Secured/HP loan repayments.............. 250
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 120
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 60
Petrol/diesel........................... 165
Road tax................................ 30
Car Insurance........................... 50
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 19
Buildings insurance..................... 12
Contents insurance...................... 12
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2001


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 150
Car(s).................................. 14000
Other assets............................ 0
Total Assets............................ 139150


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 92000....(558)......0
Hire Purchase (HP) debt ...... 16000....(250)......4.2
Total secured & HP debts...... 108000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................7000......250.......0
credit card....................9000......150.......0
Total unsecured debts..........16000.....400.......-


Monthly Budget Summary
Total monthly income.................... 2,600
Expenses (including HP & secured debts). 2,001
Available for debt repayments........... 599
Monthly UNsecured debt repayments....... 400
Amount left after debt repayments....... 199

Personal Balance Sheet Summary
Total assets (things you own)........... 139,150
Total HP & Secured debt................. -108,000
Total Unsecured debt.................... -16,000
Net Assets.............................. 15,150

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


Please can you advise?

heartbreak_star

monnie38 wrote: »

hiya,
im wondering if you can help me?
i am recently married and paying off a small loan for this.
we own our house and have a few debts,
I know that our debt is small compared to some however it is painful!
we really would love to try for a baby however in our situation we really cant afford it.

i did the SOA calculator(below) and i was wondering if you think we shold carry on paying our debt or possible go to a consolidation company to repay only 1 debt ?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2600

Monthly Expense Details
Mortgage................................ 558
Secured/HP loan repayments.............. 250
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 50Your fuel seems high - have you shopped around?
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 120I think this might be yearly not monthly?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400Quite high - check the Old-Style boards for tips on cutting this down
Clothing................................ 60quite high - can you wear what you have, downsize to Primarni or sell to offset?
Petrol/diesel........................... 165
Road tax................................ 30
Car Insurance........................... 50
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 19
Buildings insurance..................... 12
Contents insurance...................... 12
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 0really?
Entertainment........................... 0really?
Holiday................................. 0
Emergency fund.......................... 0Should have something here
Total monthly expenses.................. 2001


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 150
Car(s).................................. 14000
Other assets............................ 0
Total Assets............................ 139150


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 92000....(558)......0
Hire Purchase (HP) debt ...... 16000....(250)......4.2
Total secured & HP debts...... 108000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................7000......250.......0
credit card....................9000......150.......0
Total unsecured debts..........16000.....400.......-


Monthly Budget Summary
Total monthly income.................... 2,600
Expenses (including HP & secured debts). 2,001
Available for debt repayments........... 599
Monthly UNsecured debt repayments....... 400
Amount left after debt repayments....... 199

Personal Balance Sheet Summary
Total assets (things you own)........... 139,150
Total HP & Secured debt................. -108,000
Total Unsecured debt.................... -16,000
Net Assets.............................. 15,150

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


Please can you advise?

Few warblings from me in purple.

It's great that you have a surplus, but do you actually have it at the end of the month?

HBS x

thehappybutterfly

Same sort of advice at HBS above but also a comment about the whole 'can't afford to have a baby' thing. I might get criticised for this but in reality, nobody can ever really 'afford' a baby. You cut your cloth to suit your means so if you have a baby before you 'can afford it', you just find a way to manage. You can never forecast just how expensive children are!

bargainbetty

Your current debt is £16k. To qualify for a further loan, your income would need to be substantially higher than it is - most banks use the 50% of income less total current debt rule, as they cannot guarantee that you would ue the money to clear you debts, so have to use a 'tota;' figure.

Your TV licence figure is wrong, as noted, so you can allow for another £100 per month of disposable income. As others have also noted, you could reduce your clothing and food spends (use the Old Style board for really good hints on how to minimise your household budgets) and throw that money at the credit card to bring that down first.

Consolidation isn't usually a good idea - I've done it twice, and unless you are really dilligent about not using the cards ever again, you do tend to run up more debt!

If you could bring down the card to a low-life-of balance deal (unless you really do have a 0% card and loan) then you will be able to save on interest payments in the long term. In the short term, the best/wisest option is to tighten your belt and throw all your spare money at the debts for a while. Tell yourself that when you reach X amount you will start trying for a child, and that will help concentrate your mind too!

Best of luck.

nfollows1982

bargainbetty wrote: »

Your current debt is £16k. To qualify for a further loan, your income would need to be substantially higher than it is - most banks use the 50% of income less total current debt rule, as they cannot guarantee that you would ue the money to clear you debts, so have to use a 'tota;' figure.

I'm not sure what Natwest use then as I had £14k of outstanding card debt on a £19k salary and they gave me a £20k loan no questions asked for consolidation!!

To the OP, I thought consolidating would be the best thing but when you see all these credit cards with £0.00 on them it's so easy to run up more debt.