Help

67goes

Don't know where to start! Finally trying to face it but not opening letters yet. 2 months behind on three of the card payments.

Statement of Affairs and Personal Balance Sheet
Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 3200
Partners monthly income after tax....... 1800
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 5000
Monthly Expense Details
Mortgage................................ 1031
Secured/HP loan repayments.............. 340
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 180
Electricity............................. 80
Gas..................................... 100
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 30
Mobile phone............................ 100
TV Licence.............................. 12
Satellite/Cable TV...................... 60
Internet Services....................... 20
Groceries etc. ......................... 800
Clothing................................ 100
Petrol/diesel........................... 300
Road tax................................ 300
Car Insurance........................... 110
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 16
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 80
Buildings insurance..................... 30
Contents insurance...................... 10
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 3914

Assets
Cash.................................... 0
House value (Gross)..................... 280000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 281000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 220000...(1031).....5
Secured Debt.................. 15000....(340)......13
Total secured & HP debts...... 235000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................13900.....460.......25
credit card....................7200......220.......25
credit card....................8500......250.......18
catalogue......................800.......75........20
overdraft......................3000......0.........3
credit card....................5000......150.......21
credit card....................6600......180.......25
credit card....................6300......150.......28
Total unsecured debts..........51300.....1485......-

Monthly Budget Summary
Total monthly income.................... 5,000
Expenses (including HP & secured debts). 3,914
Available for debt repayments........... 1,086
Monthly UNsecured debt repayments....... 1,485
Amount short for making debt repayments. -399
Personal Balance Sheet Summary
Total assets (things you own)........... 281,000
Total HP & Secured debt................. -235,000
Total Unsecured debt.................... -51,300
Net Assets.............................. -5,300

FireWyrm

67goes wrote: »

Don't know where to start!

Statement of Affairs and Personal Balance Sheet
Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 3200
Partners monthly income after tax....... 1800
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 5000 Excellent start. most people dont have anything like that disposable income.
Monthly Expense Details
Mortgage................................ 1031
Secured/HP loan repayments.............. 340
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 180 First option here is to pay over 12 months rather than 10.
Electricity............................. 80 That's huge. You need to adress this urgently especially when taken into acount with the Gas bill. Reduce consumption considerably.
Gas..................................... 100
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 30
Mobile phone............................ 100 Another huge one. What is causing this?
TV Licence.............................. 12
Satellite/Cable TV...................... 60 And again. Drop some packages of the Sky contract and renegotiate. Often you can get it considerably cheaper than this.
Internet Services....................... 20
Groceries etc. ......................... 800 To be blunt...too much. You should be able to manage on £350 and that's generous. Spending diary to understand where this is going and why and more structured comments can be given.
Clothing................................ 100 Every month?!
Petrol/diesel........................... 300
Road tax................................ 300 £3000 a year, really?
Car Insurance........................... 110
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 16
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 80 £900 a year?!
Buildings insurance..................... 30
Contents insurance...................... 10
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 3914

Assets
Cash.................................... 0
House value (Gross)..................... 280000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 281000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 220000...(1031).....5
Secured Debt.................. 15000....(340)......13
Total secured & HP debts...... 235000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................13900.....460.......25
credit card....................7200......220.......25
credit card....................8500......250.......18
catalogue......................800.......75........20
overdraft......................3000......0.........3
credit card....................5000......150.......21
credit card....................6600......180.......25
credit card....................6300......150.......28
Total unsecured debts..........51300.....1485......-

Monthly Budget Summary
Total monthly income.................... 5,000
Expenses (including HP & secured debts). 3,914
Available for debt repayments........... 1,086
Monthly UNsecured debt repayments....... 1,485
Amount short for making debt repayments. -399
Personal Balance Sheet Summary
Total assets (things you own)........... 281,000
Total HP & Secured debt................. -235,000
Total Unsecured debt.................... -51,300
Net Assets.............................. -5,300

With the cuts above, you could pay off most of that debt in about 3 or 4 years easily. You have lots of capacity between your income and ammended expenditure, so begin by tackling one of the highest rate cards first.

wannabee_in_credit

Don't you get child benefit? And is your road tax really £300 a month?
There are loads of potential savings to be made here, groceries, clothing, mobiles etc.
Someone wiser than me will advise.

eta: I see someone wiser already has above.

lou2003uk

£800 a month on groceries is nuts where do you shop? And road tax at that price a month what do you drive? Defo some massive cuts you can make which is a good start....

67goes

Thanks for help so far, think I made mistake with food and car tax etc will revisit. Have another question, MBNA very keen to set up DMP, how will this affect current mortgage etc, does this seem the right approach? Have tried to get reduced APR on cards to no avail? Anyone experince of dealing with Capital one in this regard?
Thanks for your positive thoughts.

Angry_Bear

67goes wrote: »

Thanks for help so far, think I made mistake with food and car tax etc will revisit. Have another question, MBNA very keen to set up DMP, how will this affect current mortgage etc, does this seem the right approach? Have tried to get reduced APR on cards to no avail? Anyone experince of dealing with Capital one in this regard?
Thanks for your positive thoughts.

Going on a DMP will not affect your current mortgage, but will almost certainly prevent you getting a good rate when your current deal runs out - which could be very costly.
Your credit cards are unlikely to reduce your APRs unless 1) you miss payments, or 2) they think you can get a better deal elsewhere.

From your SOA, you should easily be able to meet your minimum payments and a bit more with the corrections and improvements above. Throw everything at your highest APR card and start to snowball (http://www.whatsthecost.com/snowball.aspx), with your income it shouldn't take long before you're making inroads. As you do your credit score will improve and you should have the option of switching to better card deals (but close the old one ).