Don't know where to start! SOA in post #22

Squidlet16

Statement of Affairs and Personal Balance Sheet:
Household Information:
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details:
Monthly income after tax................ 1245
Partners monthly income after tax....... 1417
Benefits................................ 81
Other income............................ 0
Total monthly income.................... 2743

Monthly Expense Details:
Mortgage................................ 360
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 101
Electricity............................. 45
Gas..................................... 40
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 0
Mobile phone............................ 54
TV Licence.............................. 13
Satellite/Cable TV...................... 65
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 40
Petrol/diesel........................... 260
Road tax................................ 11.25
Car Insurance........................... 22
Car maintenance (including MOT)......... 12.5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 54
Medical (prescriptions, dentist etc).... 61
Pet insurance/vet bills................. 15.9
Buildings insurance..................... 21.87
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 45
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1810.52

Assets:
Cash.................................... 0
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 81500

Secured & HP Debts:
Description....................Debt......Monthly...APR
Mortgage...................... 90500....(360)......5.49
Total secured & HP debts...... 90500.....-.........-

Unsecured Debts:
Description....................Debt......Monthly...APR
Natwest Loan...................7862......273.......6.4
Next Account...................75........12........25.99
NRAM Loan......................14500.....130.......5.49
Natwest Overdraft..............2800......40........14.89
Total unsecured debts..........25237.....455.......-

Monthly Budget Summary:
Total monthly income.................... 2,743
Expenses (including HP & secured debts). 1,810.52
Available for debt repayments........... 932.48
Monthly UNsecured debt repayments....... 455
Amount left after debt repayments....... 477.48

Personal Balance Sheet Summary:
Total assets (things you own)........... 81,500
Total HP & Secured debt................. -90,500
Total Unsecured debt.................... -25,237
Net Assets.............................. -34,237

John1993_2

Squidlet16 wrote: »

I understand what you're saying but it's not as if we've been buying huge TV's and cars with the money.

No, you did far worse, unfortunately, and spent it on a party that you are still paying for seven years later. A car would at least serve a purpose.

Your bad debts are a symptom of an underlying problem, as you are spending money that you don't have, and doing it systematically over many years. Unsecured debt of over 25,000 on such a low wage is a real issue, and you are going to struggle to repay it without dealing with the underlying issue too.

I'm not saying this to nag, or judge, but it'll be no good cutting back to the bone, coming up with a ten year plan to clear it, and then borrowing another 10k to set yourself up in Australia. You will also need to cut out the big loans, such as speculating on property when you can't afford to do so.

With these debts, and with your low age, I suspect that some people may suggest looking at bankruptcy. That's not my area of expertise, so I'll just wish you good luck, and step out. I don't think, from the above, that you've really had your "lightbulb" moment yet, as you still seem a bit sanguine about some of the borrowing.

Squidlet16

I agree completely that we've made some bad decisions in the past, & I'm certainly not taking those mistakes lightly. They were made through a mixture of youth, poor advice and stupidity. However, we are where we are at this point and we want to move forward. I'd suggest that the stress and sleepless nights I've been having, & the fact that I'm in the process of taking on extra agency shifts to earn extra money would go some way to show that we have indeed had our 'light bulb moment'.

We have no intention of taking out any further debt to get to Australia - not sure where you got that idea from. We joined this forum for the advice of other people who have been where we are and made it out of the other side. We thought it would help us to focus and organise our finances. It's already been incredibly helpful.

We don't have any intention of looking into bankruptcy as an option. These are our debts and we intend to repay them.

Thanks for your input. It's been very helpful and we do appreciate it...but I don't appreciate the judgements you seem to have made, despite saying that you're not here to judge.

John1993_2

Squidlet16 wrote: »

We have no intention of taking out any further debt to get to Australia - not sure where you got that idea from.

I got it from looking at your liquid assets (none) your properly spare income (little), and considering the cost of emigrating.

I'm intrigued, though. You will likely need a car, new clothes, an airline ticket, rental deposit, living costs until you are paid, and so on. You've not listed (that I can see) savings to cover all of this, so how do you intend to pay for it?

Have you a savings account set up that you left off the SOA? It'll likely be £10-15,000 needed before you go. Where is it to come from if you don't intend to borrow?

Squidlet16

I'm in the process of taking on extra shifts to earn an extra £350 per month. This, over the period of time until our projected debt free date (April 2016) will amount to £10500 which is enough to emigrate and set ourselves up for the first 2-3 months (we will both be going over with jobs so we will be paid at the end of month one).
I'm also looking to apply for a band 6 post when one comes up in our local area to increase my monthly pay.

John1993_2

You're planning to pay off the 34,000 in 30 months, and also save £10,500?

That's over £1,100 a month that you need to find (not counting your overtime, as that's going towards your savings), which looks quite hard given what's in your SOA. Can you share the calculations that brought you to the debt free date please?

Is the 350 per month the after-tax figure?

pelirocco

Squidlet16 wrote: »

I'm in the process of taking on extra shifts to earn an extra £350 per month. This, over the period of time until our projected debt free date (April 2016) will amount to £10500 which is enough to emigrate and set ourselves up for the first 2-3 months (we will both be going over with jobs so we will be paid at the end of month one).
I'm also looking to apply for a band 6 post when one comes up in our local area to increase my monthly pay.

You hope you will be going over with jobs. The advice seems to be to allow £20k to cover you when first emigrating . Australia has a booming economy at the moment but the downside is its now an expensive place to live.

Check out frugal queens blog , she cleared a shed load of debt

Squidlet16

That's our estimated debt free date using the snowball tool.

Yes...I'm looking at 300-350 after tax. It's based on working one extra shift with a private agency per week.

I'm not suggesting it's going to be easy...but like you said, people need to have their lightbulb moment and we've realised that, to get where we want to go, we're going to have to put in a lot of work. Looking around the forum there are a lot of people who have done exactly the same thing...and paid off much more debt.

It doesn't solve the problem with the house, but it will put us into a much better position.

Squidlet16

Thanks Pelirocco. I'll have a look at the blog.
We have a few friends who have emigrated, some with much more and some with less. Going over without jobs isn't an option for us. We have our little boy to think about so we won't go until we have jobs secured.

Squidlet16

John1993 - to clarify - we're looking to clear our unsecured debts by that date (25000)