whats the best plan of action????

smithy81_2

I have now added my Overdraft to my signature, I had left it off before as didnt see a way of paying it off, as you can see from my signature I have been making extra payments to Argos and paid off my cc with a ppi payment, I am currently paying £50 a month in fees for this overdraft which is driving me mad!! I havent got a good credit score so cant change to 0% deals.

I have joined the challenges and I am focussed to pay my debts I have contacted my cc today to ask about making additional payments from my current account but the only way is calling them to make additional payments!

What I am asking is what is the best way forward, the account I am using is still in my maiden name and me and hubby have a joint account which we are not currently using as all dd were transferred to his account although there is a overdraft on this account too of £1000 which is up to the limit!!

Can someone point me in the right direction feel like I am at a crossroad

fatbelly

I think we're going to need a statement of affairs on this one. The link is to a calculator and you should format for mse and remove links before posting.

smithy81_2

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 800
Partners monthly income after tax....... 1500
Benefits................................ 400
Other income............................ 0
Total monthly income.................... 2700
Monthly Expense Details
Mortgage................................ 285
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 80
Gas..................................... 70
Oil..................................... 0
Water rates............................. 64
Telephone (land line)................... 25
Mobile phone............................ 37
TV Licence.............................. 12.12
Satellite/Cable TV...................... 30
Internet Services....................... 15
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 370
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 23.64
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1841.76

Assets
Cash.................................... 0
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 161000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 137000...(285)......3.9
Total secured & HP debts...... 137000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclay Card ..................9586......150.......16.9
Tesco..........................2363......65........18.9
Asda ..........................1784.19...50........16.9
Hubbys Debt to M&D.............17000.....530.......0
HSBC Overdraft.................3500......50........16.9
Dorothy Perkins Card...........150.......5.........29.9
Argos .........................872.......2.........0
Total unsecured debts..........35255.19..852.......-

Monthly Budget Summary
Total monthly income.................... 2,700
Expenses (including HP & secured debts). 1,841.76
Available for debt repayments........... 858.24
Monthly UNsecured debt repayments....... 852
Amount left after debt repayments....... 6.24
Personal Balance Sheet Summary
Total assets (things you own)........... 161,000
Total HP & Secured debt................. -137,000
Total Unsecured debt.................... -35,255.19
Net Assets.............................. -11,255.19

harrys_dad

Just a quick question about your mortgage, before other comment on your SOA. you say you payments are £285 a month, which is £3420 a year. 3.9% of £137000 is £4110, so you are not even covering the interest, let alone any repayment. Are you sure the figures are correct?

smithy81_2

Unfortunatley we are on a Interest Only as cant afford a repayment at the moment guessed at the rate as not sure just know how much we pay monthly.

smithy81_2

Is there anyone that can offer any advice?

worriedwilf

Hey,

Well done for posting - I know it isn't easy. I am in a similar amount of debt to you. Are you able to transfer any of the debt to 0% cards?? I have saved a lot by doing this.

miketaff1408

Your SOA is wildly optimistic. There are glaring gaps there:


0 on entertaintment. So in an average month you spend NOTHING on nights out, newspapers, magazines, books, dvd's, music, itunes etc., coffee.

0 on clothes. You NEVER buy new clothes, not even charity shop clothes?

0 on presents. You never buy xmas/birthday cards, presents?

0 on haircuts. Do you really do it yourself or do the 5 of you never have haircuts?

0 on child expenses. Do any of the kids need money for school trips, school activities and hobbies? eg. swimming, sports, musical instruments?

Do you really break even every month as your figures suggest?

You have to be totally honest. Do a spending diary for a month and it will shock you what you spend that you would never have thought possible when you are writing out an SOA for the first time!

smithy81_2

No no entertainment we don't go out buy magazines I take packed lunch for work as does my husband and kids take packed lunch for school there have been a few school trips but only a couple, I cut kids and hubby's hair and I have mine done by a friend and I paint her nails. Hubby has even given up smoking so saved money there so he has a bottle of wine of a weekend as his vice, I tend to recycle gifts or offer a token I.e babysit for them so they can go out i buy my children presents with my children I buy there presents from Argos on buy now pay later and I will be getting new uniform for the kids in September as little on starts full time so I won't make any over payments that month. If hubby does overtime then it gets banked until July so will save that for new clothes for children, I can't remember the last time I brought clothes for myself, but I am always in my overdraft.

smithy81_2

I am hoping the Santander card I paid off this month which was 21.9% will offer a 0% so I can transfer a balance can't apply for another card as don't have a great credit score x

fatbelly

The car expenses for two cars also look low. You need to budget a monthly amount for road tax x 2 and insurance x 2 even if you pay annually.

Your benefits figure also looks low for 3 kids and £370 child care - maybe check that you are getting all the tax credits you are entitled to.

A benefit calculator shows £47.10 pw Child Benefit and £52.74 CTC, so the issue is whether you should be able to reclaim 70% of childcare costs and, if not why not?

https://www.gov.uk/help-with-childcare-costs/childcare-tax-credits

The main thing that is hurting you is the £530 per month payment to the in-laws. While you are paying that, you are accruing interest and charges elsewhere. Could they be persuaded to give maybe a 6-month payment holiday and then you could clear 3k of problem debt, and I'm looking at the overdraft here cos £50 of charges is giving an effective apr that is huge.