Im scared

scaredandalone_2

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 950
Partners monthly income after tax....... 0
Benefits................................ 1000
Other income............................ 250
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 291
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 55
Gas..................................... 55
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 19
Mobile phone............................ 40
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 380
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 70
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 120
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 11
Buildings insurance..................... 7.5
Contents insurance...................... 7.5
Life assurance ......................... 8
Other insurance......................... 20
Presents (birthday, christmas etc)...... 80
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 25
Emergency fund.......................... 40
Total monthly expenses.................. 1735


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 127000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 50000....(291)......0
Total secured & HP debts...... 50000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................11300.....404.......0
Catalogues.....................9900......580.......0
Car- Loan from parent..........3000......84........0
Total unsecured debts..........24200.....1068......-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 1,735
Available for debt repayments........... 465
Monthly UNsecured debt repayments....... 1,068
Amount short for making debt repayments. -603

Personal Balance Sheet Summary
Total assets (things you own)........... 127,000
Total HP & Secured debt................. -50,000
Total Unsecured debt.................... -24,200
Net Assets.............................. 52,800

scaredandalone_2

Some of them I have just put figures in for example birthdays etc because at the moment I don't have a penny to spend on clothes.birthdays etc

Fosterdog

scaredandalone wrote: »

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 950
Partners monthly income after tax....... 0
Benefits................................ 1000
Other income............................ 250
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 291
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97 Is this over 10 or 12 months?
Electricity............................. 55 This is high
Gas..................................... 55
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 19
Mobile phone............................ 40 This is high
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 380 This is very high
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 20
Car Insurance........................... 70
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 10 what other travel?
Childcare/nursery....................... 120
Other child related expenses............ 40 What other expenses?
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 11
Buildings insurance..................... 7.5
Contents insurance...................... 7.5
Life assurance ......................... 8
Other insurance......................... 20 What other isurance?
Presents (birthday, christmas etc)...... 80 Too high for now
Haircuts................................ 10 Reduce haircut frequency
Entertainment........................... 50Look into free days out, fun at home etc.
Holiday................................. 25 Is a holiday essential?
Emergency fund.......................... 40 Your debts are the emergency right now
Total monthly expenses.................. 1735


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 127000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 50000....(291)......0 No interest?
Total secured & HP debts...... 50000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................11300.....404.......0 one card or multiple? Interest free?
Catalogues.....................9900......580.......0 one or multiple? Need interest rates
Car- Loan from parent..........3000......84........0 Is car worth £2000 or £3000?
Total unsecured debts..........24200.....1068......-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 1,735
Available for debt repayments........... 465
Monthly UNsecured debt repayments....... 1,068
Amount short for making debt repayments. -603

Personal Balance Sheet Summary
Total assets (things you own)........... 127,000
Total HP & Secured debt................. -50,000
Total Unsecured debt.................... -24,200
Net Assets.............................. 52,800

Comments in red above

There are quite a few ways for you to make some changes based on this SOA. You are on a very good income and your actual living costs are/can be relatively low leaving you lots to throw at debts.

Firstly spread your council tax over twelve months instead of ten. This will bring payments down to £80 a month. Have you applied for your single adult discount to reduce it further?

Be more careful with gas and electric, are you on the best tariff? Make sure things are turned off when not in use, don't leave lights on, only heat rooms when needed, apply for grants to improve insulation in the home, new more efficient boiler etc.

How long is left on your mobile contract? How many phones? Can you reduce tariffs or go to SIM only deals? can be as low as £5 per month.

Groceries are very high for one adult and three young children, have a look on the OS board for meal and menu ideas, they have challenges like feed a family of four for £10 a week, you don't need to go that extreme but it will show you how much you overspend and waste.. Plan a weeks meals in advance and only buy what's on the list. The children won't be eating big meals at their age so this can be very doable.

£80 is a lot each month for presents when you have debt, your children are young enough to not expect big and expensive gifts, agree with family and friends that you won't buy each other presents this year (we had one xmas with just £200 to spend between four children aged 6-11 and had a wonderful christmas)

£10 is a lot for monthly haircuts, try leaving it longer between your own cuts and cutting the children's hair yourself.

£50 on entertainment is a lot, check out what family fun days/events are on in your area, usually free or very cheap entry, go to the park, buy some art and craft stuff for more fun on rainy days. there are lots of free or cheap ways to entertain yourself and kids.

Do you really need a holiday every year, skip one year to clear debts, same with emergency fund, right now you are in the emergency, you will be losing more than you can save on interest rates alone so not worth putting it aside.

It's hard to comment completely on the actual debts without having it broken down more into individual debs and interest rates, what are the minimum payments? Have you looked into snowballing? You reduce the high interest debts first so it costs you a lot less in the long run.

Are you getting divorced? If you are the debts are part of the marital finances so if you get a good solicitor your ex may be ordered to pay off some of the debts and or pay towards the mortgage to keep his children in their home. This would be awarded on top of CSA.

Good luck with this, it seems bad now but once you get everything in order, start making realistic payments and learn to live on a budget it will get a lot easier.

19lottie82

I wouldn't say £10 a month is a lot for 4 peoples haircuts? Even at training college prices.

OP, main things that you could cut back on are

1) Presents, this is a lot. cut back to £30 a month. This gives you £60 for each child's birthday and Christmas.

2) Mobile, I appreciate you are more than likely in a minimum term contract, but it's always worth giving them a call to see if they can reduce your tariff at all. And change to PAYG or sim only as soon as you can.

3) Holiday / Emergency Fund, you can't afford either of these right now. Start them again when you are in abetter financial position/

4) Groceries, cut this to £250 - £300 by meal planning and "dropping brands". I find online shopping helps as you are less likely to chuck extras in to the trolley, and can keep an eye on your budget.

5) Gas / Electric, can this be reduced? Again, try phoning your supplier re a new tariff.


However your main problem are your huge debt repayments. Hopefully things will be a bit better for you once your DMP starts. Pay a £1 token payment to them this month.

jaxsmar

I went of a £9.50 sun holiday a few years back had a great time. Also on the freebie site this year was a holiday 'clamping' you have free tent and equipment and you do voluntary work on the campsite. Otherwise the holiday has to go good luck keep us informed.

19lottie82

scaredandalone wrote: »

Some of them I have just put figures in for example birthdays etc because at the moment I don't have a penny to spend on clothes.birthdays etc

You'll need to budget a sensible but realistic amount for clothes too. Once your DMP is in motion, make sure you put money aside every month for annual expenses (MOT, Christmas / birthday presents / clothes), rather than having to take the whole annual cost off one monthly payment.

harrys_dad

One thing you need to understand is that companies that you are in debt to cannot make you pay what you do not have. Shop Direct may reject your DMP (but this is unlikely) but there is no way they can get more money. It is highly unlikely they will ever take any action as you have gone through Stepchange and done a proper budget. SD may try to threaten you, but they are powerless. Just ensure all contact is in writing, and inform StepChange of everything.

There is a huge amount of support on this board, and loads of good advice. Well done for coming on and asking for help.

StuC75

How much have you spent through Shop Direct recently given opening comment of 'I have used them since my husband has left '.. They may object if such spending occurred once aware of new financial situation..

scaredandalone_2

Will look at everything you have recommend agree sticking to a budget has been a huge issue for me and is something I have changed, I used around £400 to buy new bed as mine was broken literally beyond repair since but this was before I even considered it to be an issue, to be fair I can afford to make all the repayments but it is leaving me with nothing at the end which yes is my problem but my wages vary month to month some months it can be half depending on where the school holidays lie meaning I can not get through that month hence the reason looking into dmp and trying to get myself sorted once and for all.

eyeopener2

No, you can't afford the repayments if your eating toast, please remember that. You have to get out of the idea that creditors come first, they don't.

You do a budget and if all you have left is £1 then that is what they get.

Once your into your DMP things will settle down and you learn to live frugally, that is you stick to your budget and actually live, and sleep and not worry yourself to an early grave.

It works, trust me I know.

E2