Please help, reaching the end of the road

ciderwithrosie_2

you've put down your annual salary as £53,000, on a monthy net income of £2,500 you must mean £35,000 surely?

jubilee14

ciderwithrosie wrote: »

you've put down your annual salary as £53,000, on a monthy net income of £2,500 you must mean £35,000 surely?

Not necessarily if his salray has pension and child care vouchers and also if he has a company car or any BIK this is deducted from the Tax allowance meaning paying more tax.

ellesbellesxxx

Ok am home again so can continue with more thoughts for you.

Say you are ruthless...cut 80 from satellite, 200 from groceries (potential for more!) and potentially even 30 from gas/elec. That's another 300 minimum towards your bills. Or 3600 in a year!!! (Be careful to make sure everything has been calculated correctly, as like Redpete said there are several things missing)

If you review your car, this has great potential to save - even if just for a few years. You are spending a LOT of money on the car itself, I can't see any maintenance costs so am hoping that for time being this is included, otherwise that's another big cost.

The first debt to tackle it seems is the Natwest CC with 29.9% Apr. You could clear this within a year if you cut back 300 a month, making min payments to Virgin.
What was the loan for can I ask? Can you overpay on this?
Have you included your relative's loan - do you have a timescale on this?

Make sure you put in child benefit into SOA, could your partner get any work? Even surveys etc all help!

Is the 92 really left at the end of the month? (Spending diary will help!!!)If so, put this straight away towards Credit Card.
Child related expenses are very high, I am wondering if these are for clubs/tuition etc. Could be reviewed too... this is 50 a week between 2 children...

You will find a lot of people have been in your boat and have come out the other side, you can too!

redpete

ciderwithrosie wrote: »

you've put down your annual salary as £53,000, on a monthy net income of £2,500 you must mean £35,000 surely?

I'd expect around £2900 after typical deductions for tax, NI & pension.

nicp60

Depends on the pension - mine is 7.4%, which would make a £320 monthly deduction.

OP also has student loans - £280 ish deduction on a £53000 salary.

According to my salary app, Net pay with no pension would be £2867. Deduct pension and it could easily be £2500

[Deleted User]

frank_butcher wrote: »

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................ 2500Is this accurate? I thought your salary was £53,000 - what are the deductions?
Partners monthly income after tax....... 0Any option to get something here?
Benefits................................ 0Child benefit?
Total monthly income.................... 2500Not completely sure that this is accurate, can you please confirm

Monthly Expense Details
Mortgage................................ 761
Secured/HP loan repayments.............. 212
Council tax............................. 145Is this over 10 or 12 months, if 10 ask your local council if you can spread over 12 to help you budget
Electricity............................. 65Both this and below are very high. Are you paying back arrears? If so, how much and when will they be fully repaid? If not, check if you are in credit with the company you are currently with, and if so claim it back. Also, use comparison sites to see if you are on the best deal for your area/usage. If switching will be cheaper then take a look at cashback sites for further incentives (e.g. Total cashback and Quidco etc). Switch things off and don't leave things on stand by, use energy saving bulbs, switch down or off radiators in rooms not currently/regularly in use (winter obv.), and switch down the thermostat on the hot water boiler by a few degrees, you re unlikley to notice)
Gas..................................... 110as above, often online, duel fuel and paying by DD can save as well, but as mentioned above - use comparison sites
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 15This is £12.44 is it not?
Satellite/Cable TV...................... 110Very high, consider freeview or Freesat, or at the very least downgrading the package - you could get home phone and Internet for approx £20-£25 per month
Internet Services....................... 0
Groceries etc. ......................... 500You could reduce this a lot. Try Lidl/Aldi, plan meals in advance, make a list of what is NEEDED before you go to the supermarket and stick to it, don't food shop hungry, drop brands, bulk buy, cook from scratch, bulk cook and freeze extra portions etc
Clothing................................ 0never, not even for the children?
Petrol/diesel........................... 120
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 0never?
Car parking............................. 0never?
Other travel............................ 0never?
Childcare/nursery....................... 0
Other child related expenses............ 200What does this cover?
Medical (prescriptions, dentist etc).... 0never?
Buildings insurance..................... 30is this buildings and contents combined? If not then consider getting contents insurance?
Contents insurance...................... 0
Life assurance ......................... 20
Presents (birthday, christmas etc)...... 0never? Birthdays Xmas? Even for the children?
Haircuts................................ 0never?
Entertainment........................... 0nothing? Never?
Emergency fund.......................... 0Prob need something, even a small amount e.g. £10 per month so that if/when an emergency crops up you're not tempted to reach for further credit
Total monthly expenses.................. 2408


Assets
House value (Gross)..................... 240000
Car(s).................................. 16000 Your car is worth more than what is owed on it, can you sell it, pay off the finance, and but a run around with the c.£4,000 difference? This would reduce your monthly outgoings to debt letting you concentrate on others? or is there a break clause at any point in the finance deal meaning that you will be able to get out of it
Other assets............................ 0Have a good clear out and e-bay, gumtree, car boot what is no longer used/in reasonable condition - over pay the proceeds to the debt that is costing you the most in interest each month
Total Assets............................ 256000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 163000...(761)......3.49
Hire Purchase (HP) debt ...... 12000....(212)......11If you were in a position to get rid/downgrade the car, this would be a big saving every month
Total secured & HP debts...... 175000....-.........-

Unsecured DebtsHave you stopped spending on the cards? If not then do so now.
Description....................Debt......Monthly...APR
Virgin Credit Card.............8000......100.......0How long is this 0% for and is the £100 the minimum payment?
Natwest Credit Card............3000......100.......29.9This is your highest charging debt and so if/when you are in a position to overpay any of your debts then this should be the one that you overpay first
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. -320This looks like bad news, but in reality I think that a combination of double checking ACTUAL figures and inputting them into the SOA and making sure that you are on the cheapest deals for utilities and cutting back in other areas (Pay for TV and groceries are the two that spring to mind most), then ends could meet reasonable easily. But there does seem to be a few things that are missing from your SOA as well, my suggestion would be to either go through old bank statements to identify ACTUAL SPENDS in each area, and/or keep a spending diary to see where your money is going - carry around a note book/use your phone to make a list of EVERYTHING that money gets spend to, from the really big monthly spends to the really small things like newspapers and cups of tea.

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.

I have made some comments above - hope they help,

D9

amorge

If OP is on £53k they aren't entitled to Child benefit

triple_choc_chip

amorge wrote: »

If OP is on £53k they aren't entitled to Child benefit

Yes they are, they would have to pay 30% of it back though. It's on a sliding scale between £50k and £60k. I claim mine and keep it in an ISA - much like stoozing.

triple_choc_chip

Ok Frank Butcher I'm guessing here but if others are right about your student loan repayment, that leaves £150 paid monthly to the relative.

If that's correct, your student loan will be paid in just over 2 years and the reli in just over 3. Assuming the car loan and unsecured loan are fixed payments, any extra can be thrown at the highest rate credit card from now and much more in two years time.

So the answer to your question is - Yes there is a way out and you are on the right road but it aint gonna be quick! Although it could be quicker if you ditch the paid TV, plan the shopping and turn down your thermostat; and even quicker still if you switch cars, although that is probably a step too far if you are keeping up appearances. As you will discover there's always a different way, it comes down to how much you are prepared to change.

frank_butcher

Thank you so much for the replies.

In regards to the income, my £53k is subject to 40% tax, NI, pension, student loan and a train season ticket loan deducting around £200 a month!

My gas and electric is high because when I bought the house, the estimate for my needs wasn't calculated properly. 18 months later I'm in arrears and am paying it back via the higher direct debits.

Sky will be the first thing to disappear.

I don't have a good enough credit profile to borrow any more. I don't have enough equity in the house for a secured loan. I'm going to have to deal with the situation as it is without more consolidation arnt I? Is there any options available?