does my plan make sense

Sea78

No problem - here it is

http://forums.moneysavingexpert.com/showthread.html?t=107280

Sea xx

liz105

If you re-mortgage won't the mortgage company want to value your house themselves?

debtfree1day

Hi - In terms of mortgage company, I am not sure. Existing customer, but kind of thought the worse that can happen is they send someone decide that actually the amount if say 95% of loan and therefore charge higher rate or a fee for the risk, or reduce the amount they will lend (possibly to zero!)

Whilst not rushing into anything, I have sent the application in as its no obligation and at least will understand options better.

SOA

OK.....Income Month
Partner 2600
My Wage 300
Child Benefit 209
Maintenance 300
Child Tax Cr 44
TOTAL 3453

Debt

Credit Card 3700 9.9%
Credit Card 6000 21.9%
Overdraft 2000 15.9 Limit is 4900 and normally on it, but just got partners wages
Credit Card 2600 23.9%
Credit Card 2370 17.9%
Credit Card 3400 5.9% Limit is 3600 so cant put anymore there
Credit Card 2550 24.9%
credit Card 2772 0% until oct 1st - limit 3000
Loan 18700 at about 8% i think, pay back 505 per month
Loan 9800 at about 6% i think, pay back 600 per month
Debt to Gambling 1315 0% pay back 500 per month
Debt to Gambling 15700 0% pay back nothing yet....not been touched since Feb
Overdraft 2300 18% ish - limit 2500
Overdraft 1300 9.9% limith 1500


Assets

BS Savings - 600
PO Bond - 2000 invested, tied in estimate return 3000
Newc Bonds - 4000 invested , tied in estimated return 6000
20 yr bond - expired 2018 1200....tied in
partners company shares , 2450 at current value released tax free march 08
CIS investment - 1519, was meant to mature 2016, but planned to get cash out on Monday?
Other bonds - £40 pr month.....1200

outgoings not including loans / credit cards etc etc

Utilities incl Council Tax 323.35
Phone 100
Mortgage 1373
Savings and Investments 126.7
TV license and sky 54.87
life insurance 10.69
cis 22.7 thats the one Im cashing in monday
food 470
parking 50
petrol 90
school dinners 80
kids going out 70


car insurance bought in jan so not a problem at the moment. wear and tare an issue as my partners wages includes a payment to ensure he has a car he can use with work, but topuch wood.......


writing this down makes feel its all hopeles....as you can see our spending without debts is a problem, but then 1100 of loans.....and credit card min payments just to stoip the interest going up....

shall is end the letter begging for frozen interest???

lisa
xxx

debtfree1day

Hi - In terms of mortgage company, I am not sure. Existing customer, but kind of thought the worse that can happen is they send someone decide that actually the amount if say 95% of loan and therefore charge higher rate or a fee for the risk, or reduce the amount they will lend (possibly to zero!)

Whilst not rushing into anything, I have sent the application in as its no obligation and at least will understand options better.

SOA

OK.....Income Month
Partner 2600
My Wage 300
Child Benefit 209
Maintenance 300
Child Tax Cr 44
TOTAL 3453

Debt

Credit Card 3700 9.9%
Credit Card 6000 21.9%
Overdraft 2000 15.9 Limit is 4900 and normally on it, but just got partners wages
Credit Card 2600 23.9%
Credit Card 2370 17.9%
Credit Card 3400 5.9% Limit is 3600 so cant put anymore there
Credit Card 2550 24.9%
credit Card 2772 0% until oct 1st - limit 3000
Loan 18700 at about 8% i think, pay back 505 per month
Loan 9800 at about 6% i think, pay back 600 per month
Debt to Gambling 1315 0% pay back 500 per month
Debt to Gambling 15700 0% pay back nothing yet....not been touched since Feb
Overdraft 2300 18% ish - limit 2500
Overdraft 1300 9.9% limith 1500


Assets

BS Savings - 600
PO Bond - 2000 invested, tied in estimate return 3000
Newc Bonds - 4000 invested , tied in estimated return 6000
20 yr bond - expired 2018 1200....tied in
partners company shares , 2450 at current value released tax free march 08
CIS investment - 1519, was meant to mature 2016, but planned to get cash out on Monday?
Other bonds - £40 pr month.....1200

outgoings not including loans / credit cards etc etc

Utilities incl Council Tax 323.35
Phone 100
Mortgage 1373
Savings and Investments 126.7
TV license and sky 54.87
life insurance 10.69
cis 22.7 thats the one Im cashing in monday
food 470
parking 50
petrol 90
school dinners 80
kids going out 70


car insurance bought in jan so not a problem at the moment. wear and tare an issue as my partners wages includes a payment to ensure he has a car he can use with work, but topuch wood.......


writing this down makes feel its all hopeles....as you can see our spending without debts is a problem, but then 1100 of loans.....and credit card min payments just to stoip the interest going up....

shall is end the letter begging for frozen interest???

lisa
xxx

pavlovs_dog

debtfree1day wrote: »

Debt
Debt to Gambling 1315 0% pay back 500 per month
Debt to Gambling 15700 0% pay back nothing yet....not been touched since

why are you only paying one off? are there any penalties for not paying back at the mo?


Assets

BS Savings - 600
PO Bond - 2000 invested, tied in estimate return 3000
Newc Bonds - 4000 invested , tied in estimated return 6000
20 yr bond - expired 2018 1200....tied in
partners company shares , 2450 at current value released tax free march 08
CIS investment - 1519, was meant to mature 2016, but planned to get cash out on Monday?
Other bonds - £40 pr month.....1200

you have a lot of very expensive debts. i cant help but feel your savings wuld be better off servicing them. you're not really in any financial position at the moment to be putting money by for tomorrow


outgoings not including loans / credit cards etc etc

Utilities incl Council Tax 323.35 can we have a breakdown, to see if what you pay for gas/leccy etc is competitive. have you played around with the uswitch website to see if you can get a better quote?

Phone 100

is this line rental and calls? any mobiles? who are you with and what package - there may be cheaper alternatives. does this include internet?

Mortgage 1373
Savings and Investments 126.7
TV license and sky 54.87

sky is a luxury you can ill afford. can you cancel or cut down your package? phoning to cancel may get you a better deal. a freeview box is only £20 odd quid nowadays

life insurance 10.69
cis 22.7 thats the one Im cashing in monday
food 470

again this is high. how many is this for? does it include cleaning materials etc? have a look on the oldstyle board for advice on how to cut back without feeling the pinch

parking 50
petrol 90

what about insurance, mot, maintenance costs? could you walk/ bike/take public transport? are there any cheaper (or even free) places you could safely park the car, even if it means a 5-10 mintue walk?

school dinners 80

could the kids take packed lunches, this would work out much cheaper. especially now summer is here, its not as if they need a hot meal to warm them up. likewise, do you and hubby buy lunch at work, or take a packed lunch?

kids going out 70

what does this cover? can you find cheaper ways of entertaining them? i know it must be heartwrenching to tell them that mum and dad cant afford it at the mo, but the truth is you cant. its more important that they are fed, clothed, and have a roof over their heads. oh, and love dont cost a thing :kisses3:


car insurance bought in jan so not a problem at the moment. wear and tare an issue as my partners wages includes a payment to ensure he has a car he can use with work, but topuch wood.......


writing this down makes feel its all hopeles....as you can see our spending without debts is a problem, but then 1100 of loans.....and credit card min payments just to stoip the interest going up....

shall is end the letter begging for frozen interest???

lisa
xxx

just a few ideas/questions, hope this helps

blackangeluk

Hi there and welcome to the board

I think in relation to the mortgage they will want to come and value it, when we have remortgaged in the past they have always done a valulation. If you do borrow more than the house is worth you could end up with negative equity, my parents had the same problem years ago when the housing market dipped and that is something I would never wish on anyone.

It is daunting posting your SOA but it's amazing the advice that people come up with which really really helps.

Only a few things I noticed on your SOA. The amount you spend on food - could you reduce this at all? I know it is difficult with a family, however I have changed from Mr Tescos and to Mr Aldis and have budgeted £240 a month for food this month. We list everything we have in the cupboard and then do a meal plan using as much of the stuff as we have to try and cut back. Everything is home cooked as well. The Old Style board is really good for cutting back and going back to basics.

Would it be possible to put the kids on packed lunch for the rest of the School year to save money?

Are you on the cheapest package with sky, could you ring them and try and negotiate a deal? I told them I was leaving and got some money knocked off - worth a try?

Is your phone bill for home and mobiles as it seems quite big, could you get your calls through other providers rather than BT?

Probably stating the inevitable but have you shopped around for electricity/gas suppliers? Have you considered whether a water meter would be any cheaper? Home Insurance - I think Halifax are offering good deals at the moment.

Re your credit cards, I could only think of what others have said i.e. try and ring to get them cheaper or apply for 0% ones?

Also re the childrens spends, maybe you could explain to them that you can't afford it now and throw that at your debts instead.

Not sure whether I've helped at all, but when I first posted my SOA a lot of people advised the above to me and it was amazing the difference it makes.
Reluctantly I stopped the childrens savings plans until I am financially in a better position - they will benefit in the long term I am sure

Good luck though, I am sure that others will post a lot of good advice as they are some fantastic and supportive people on this board.

blackangeluk

pavlovs_dog wrote: »

just a few ideas/questions, hope this helps

It's amazing how all us DFW think the same :T I think our posts were almost identical

pavlovs_dog

blackangeluk wrote: »

It's amazing how all us DFW think the same :T I think our posts were almost identical

im not actually a DFW'r :shhh: (well, aside form the student loan but that doesnt count ) and hope never to be anything other than a MFW.

whilst it terrifies me the amount of debt people get into, at the same time i dont like to see people suffer, and love to help. the advice i offered was no more than common sense, and 'tricks of the trade' learned from on here.

the hard work in these cases is almost always done by the OP, who not only has to live up to the magnitude of their situation, but then has to sort out a way to get through it all. whilst i will admit that i feel a lot of people get themselves into debt through a combination of greed and blind stupidity, i have nothing but respect and admiration for those who have the courage to put their hands up, seek help and turn things around. i cant imagine for one minute that its easy to come on here and admit how much debt you're in, and thats why its so important that the forum here is so friendly and supportive, with DFW'rs and non DFWrs alike pitching in to help find a viable solution. here's hoping we can work our collective magic for debtfree1day as well :beer:

blackangeluk

Hi, I sincerely hope one day I am a MFW rather than a DFW!

I sat posting my first message and SOA in floods of tears but I think that was the start of a long journey and I have been taught that money has to be respected and repaid. I think without people on this board my feelings of hopelessness would have continued and escalated.

I am now back in control of my finances to a degree and I WILL be debt free soon.

ZIZA

Just a thought- could you not extend the term of your mortgage?
Is the interest rate lower than most of your debts?
It would then free up more money to throw at your debts