Please help, reaching the end of the road

frank_butcher

Afternoon,

I have lived a lie for the last 10 years, I admit to be careless with money and now i'm close to 30 I am wising up and starting to worry about my future. Here is a quick list of my debts:

£24000 (unsecured personal loan)
£12000 (car loan)
£11000 (2x credit cards)
£7500 (student loan)
£5500 (loan to relative)

Rough total of £60000. This alone equates to around £1050 a month in repayments.

I am a home owner (mortgage). House value us approx £240000. I owe £163000 on the mortgage.

I am in a secure job earning around £53000 a year.

Is there anyway out of this mess? Any options available to me?

ellesbellesxxx

Hi
First of all, your student loan - presumably that comes out your wages? If so, that is your last priority (after your mortgage even!) so take that out the equation.

The loans/credit cards you have taken - what are they for? Holidays/work on your home/subsiding living? Keeping a spending diary might help you work out where this money is going. Filling in a SOA (Statement of Affairs) will show you where money is going too... if it is subsidising your living that has caused your debts, is this because you are living beyond your means or having to take out loans to meet basic bills??
You have said you have been careless which implies living beyond your means.

Credit cards - 0% deals?

Car loan - do you really NEED a car that costs this much?

Just a few observations on the info in front of me... however, if you do want more advice, fill in a SOA and people can advise you.

There will definitely be a solution...you have equity in your house too - a good bit - so definitely there will be a good solution

matttye

Can you post a Statement of Affairs?

frank_butcher

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2500

Monthly Expense Details
Mortgage................................ 761
Secured/HP loan repayments.............. 212
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 145
Electricity............................. 65
Gas..................................... 110
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 15
Satellite/Cable TV...................... 110
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2408


Assets
Cash.................................... 0
House value (Gross)..................... 240000
Shares and bonds........................ 0
Car(s).................................. 16000
Other assets............................ 0
Total Assets............................ 256000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 163000...(761)......3.49
Hire Purchase (HP) debt ...... 12000....(212)......11
Total secured & HP debts...... 175000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin Credit Card.............8000......100.......0
Natwest Credit Card............3000......100.......29.9
Tesco Loan.....................24000.....212.......7.2
Total unsecured debts..........35000.....412.......-


Monthly Budget Summary
Total monthly income.................... 2,500
Expenses (including HP & secured debts). 2,408
Available for debt repayments........... 92
Monthly UNsecured debt repayments....... 412
Amount short for making debt repayments. -320

Personal Balance Sheet Summary
Total assets (things you own)........... 256,000
Total HP & Secured debt................. -175,000
Total Unsecured debt.................... -35,000
Net Assets.............................. 46,000

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

frank_butcher

Thanks for your replies so far, did the statement. I feel like crying now.

ellesbellesxxx

Ok. Just looking through this, there are a few things that stand out...

-Do you not get child benefit?
-What are child related expenses?

-Gas and elec together are HUGE
-Cut back on groceries - you could shave this down at least by 200!
-110 for satellite - get rid. You could have freeview or even a lower package and not miss out. This is a rip off!
-Does your car tax really cost 20 a month? 240 a year? Your car insurance 50 a month = 600 a year. Add on 2400 a year for finance and you are spending 3500 before petrol on your car alone. Do you need this model?
I have to go out, but just a few thoughts. This can definitely be sorted

ellesbellesxxx

Don't be sad - just by cutting back on a few things you can sort this easily!!!!!!!

matttye

Is that presents/haircuts/entertainment really accurate? You spend nothing on birthdays or christmas, nothing for medical expenses, nothing for entertainment?

I know it's hard to specify a precise amount but you should try to specify something at least, because if you don't budget for them they'll hit you hard.

Some excellent ideas from ellesbellesxxx in post #2, which I won't reiterate. I would stress the selling the car and buying something cheaper idea though; that money would be much better spent in clearing some of your debt.

Satellite/cable TV bill is very high - could you drop anything here?

Any way of cutting the petrol/diesel bill? Is work within cycling distance?

matttye

frank_butcher wrote: »

Thanks for your replies so far, did the statement. I feel like crying now.

SoA's always are brutal because they make you think of things you wouldn't normally. Plenty of room for savings in yours though!

Jonesy88

I agree with the others. This can be sorted. Take a few deep breaths and start phoning suppliers.

When was the last time you gave reads to your gas/elec supplier? are you in credit? is the DD accurate? are you on the cheapest tariff for you based on your usage? Just ask them - they should know!

TV - wow it's a lot! could you downgrade or get rid completely? Sky are normally very good at more or less halving your bill if you threaten to leave.

Food bill - where do you shop? do you do packed lunches?

redpete

Gas, Satellite TV, groceries, car insurance and childcare expenses all stand out to me as being high.

Lack of partner's income, entertainment, haircuts & holidays also.