Statement of Affairs and Despair

Dozey_crow

cakeforbrains wrote: »

Thank you so much for replying. Funnily enough, a lot of your advice is stuff I've already started doing.

***There's a tongue in cheek 'great minds' and all that comment to make there**

2) Yes, I am definitely looking into reducing that. I have started baking a lot recently (cheap baking) and being much more economical and I think I have already reduced it to be honest. As I said, I now have one 'housekeeping' bank account so I can keep a good eye on it. I've also been making much better use of vouchers and coupons as long as they're for stuff I'd buy anyway.

***brilliant! Although I would still go and have a read because there are the most incredible money saving ideas. I don't post prolifically there but I have learnt loads. One thing that is an eye opener are the number of cleaning products you dont need as an mse alternative does all. I have saved loads with the simplest of things.***

A) I have already bought some small items (cellophane etc.) in order to make Christmas presents for adults. This year it will be millionaire's shortcake (ironically?) with edible gold glitter. I've bought all the presents for the children and spent £60 on each of them.

***£60 is amazing you have done really well.:T Christmas shopping is one area where I need to be more organized as we are last minute and spend too much. I luuurrrrrvvvvveee millionaire shortbread that sounds delicious..***

I've sold LOADS on ebay and facebook over the last few weeks. Mostly old baby things. I've made £460 so far.

I want our attitude to be one that means this never happens again.

Cake for brains you are doing really really well so don't be took hard on yourself. The way you are going and the strength and determination you are showing mean that you are unlikely to be in this situation ever again. Grit your teeth and have a look on old style.. You'll get there!!

cats2013

First things, you have done amazing and the motivation to step up to take action is huge and will help.

Though the best advice I can give, having been there, at risk of and getting realistic there is no room for luxuries when you are in the situation you are in. It will be hard, but be realistic with the two younger children and that things will be changing for a while. get them on board too. They will grow up to be more mature, respectful and lovely young people this way.

So....mobile phones for the children.. this really is silly at the ages. that 22 pounds a month strait away. plus a few pounds for selling the phones.


Sky and internet - this can be used at the library or using a payg dongle. much cheaper - the amount you could save a month is so huge and you can cancel - speak to them. I did it and used free view to entertain. Xmas often they have free sky channles for a weekend too.

The groceries £450 a month? Far too mud and yo could easily half this with meal plans, cheaper brands.

Sell the flat! empty as it is it will be quicker to sell. Once that is gone the worry of that will be so much better

You can do this by being really strong and ruthless. I can easily see about 300 a month of savings to put to debts.

Good luck Cats

hummingbird

Love and hugs to you cakes, I'm not an expert to give advice but sending huge good wishes and will follow your progress.

Just to say keep looking for things to smile about ......there are always some however hard things are. And your little treasures will be on board with you I'm sure.

You will win through however long it takes and the support on here is amazing:T

Vikipollard

Can your OH speak to Vetting about the financial issue? Depending on the organisation, it may be that showing he is dealing with his debt (formally) is enough for them to clear him.

I had to attain MV status for a promotion role and was petrified as I was in an IVA. Even though I had always been honest about it, I was convinced that I would fail vetting. Before I submitted the papers, I made an appointment with a vetting officer and told them all about it (in tears, I might add). They went through why the debt had existed (marriage breakdown) and were satisfied with the steps I had taken to address the problem and the MV came through no problem.

I'm no expert at all, though I would hope that a conversation in which he can detail the plans to sell the flat and tackling the debt head on would go some way to settling their concerns.

kerri_gt

Didn't want to read and run.

There has been some pretty good advise on here already, and firstly, big hugs - you will get through this, if you are having dark thoughts, do speak to someone, call the Samaritans or see a GP. No amount of debt it worth three children losing a parent over xx

Have you spoken to OH brother again? Perhaps he would be willing to reduce the payments to him while you try to sell the flat? Is it vacant at the moment or if not, how quickly could you put it up for sale vacant? Would it be possible for you to move to cheaper accommodation in the short term? I know this could be hard as you need up front deposits etc.

Speak to Sky and see if you can at least reduce the package if they won't let you exit. Also your internet services seem high - we pay £7.50 a month with Sky for Ultd internet.

Regarding the boys mobiles - do they really need them? i.e are there times when they are out and about on their own (without you) and need to get in contact with you? I would imagine perhaps the 12yr old is, but maybe not the 10yr old yet? £11 a month each is quite high, have you looked at Giff Gaff SIM only options for example?

Definitely look at the Old Style Board too for batch cooking. And if you're at home, have you considered some home baking to sell locally (not sure if the ins and outs of any certification you might need but I'm sure friends and family might be interested)?

Could you take on a part time job perhaps a couple of evenings a week, cleaning or bar work? Even something temporary over the festive period?

If OH parents do help out as a living inheritance, ensure that everything is formally done through a solicitor - thus avoiding and nasties or arguments further down the line (it does happen.)

And well done on being restrained on the kids Xmas presents, you have no idea how many people in your situation would still go all out with some notion that come Jan a fairy godmother will somehow make all the xmas spends disappear. x

cakeforbrains

Hi there everyone. I just wanted to come back and thank you all for your support. Last week was so incredibly stressful and it seemed that all the brown stuff just kept hitting the fan. It was like an onslaught.

I am feeling much better now and, over the weekend, my husband and I have put a huge amount of hours into a plan for going forward. One key element of the plan is that his parents are willing to lend us £15000 but to defer repayments for two years and then accept £250 per month thereafter.

We've created reams and reams of data discussing what best to do with this money and come to the conclusion that for a number of reasons it would be best to pay off my husband's brother. It would cover the whole of the capital of the debt and save a lot in interest and it would also help repair their relationship. Added to this, it would 'free up' around £500 per month to throw at the other debts.

If we spend the next three or four years concentrating on that and, at the same time, manage to keep the flat that we let out (not withstanding interest rate rises and tax costs now that my OH pays 40% tax) then we may end up in a position where we'll have paid our debt and have enough equity to have a deposit for a house. Frankly, when I worked that out I felt like I had won the lottery.

The other very clever thing about my OH's parents' offer is that in two years our youngest will be at school and I will be in a position to bring in some money without spending 80% of it on childcare.

Regarding the DV, we had another interview, this time together, and I was able to show that despite the high level of debt we're very organised and not burying our heads in the sand (anymore). The position on that is looking a lot more positive.

There is a lot of hard work ahead, but I feel like a weight has been lifted.

nomunnofun

Just a small point. Make sure that a formal loan agreement is drawn up. I have no idea regarding the value of your OH's parents potential estate but, in the absence of any paperwork, it could be regarded by HMRC as a gift to your husband and be included in their estate in the event of death within seven years.

[Deleted User]

cakeforbrains wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2 - Do you really need 2 cars?

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 3000
Benefits................................ 203
Other income............................ 798
Total monthly income.................... 4001

Monthly Expense Details
Mortgage................................ 460
Secured/HP loan repayments.............. 0
Rent.................................... 1000
Management charge (leasehold property).. 40
Council tax............................. 193 - If this is over 10 months, switching to 12 months will save you about £33pm.
Electricity............................. 60 - Check comparison sites, to look for a cheaper deal.
Gas..................................... 60 - Check comparison sites, to look for a cheaper deal.
Oil..................................... 0
Water rates............................. 80 - Seems high. Is this on a meter? If not, consider one.
Telephone (land line)................... 0
Mobile phone............................ 76 - This is high, even for 4 phones. Go £10 PAYG ASAP.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 45 - Get rid of this and go Freeview/Freesat.
Internet Services....................... 44
Groceries etc. ......................... 450
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 30
Car Insurance........................... 53
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 30
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 - You need this on a Mortgaged property.
Contents insurance...................... 19
Life assurance ......................... 13
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 - You need something in here.
Union fees.............................. 15
Total monthly expenses.................. 2900.12


Assets
Cash.................................... 0
House value (Gross)..................... 95000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 100000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 76000....(460)......2.5
Total secured & HP debts...... 76000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide credit car..........8314......97........10
MBNA...........................4572......49........0
Barclaycard....................3037......50........0
Nationwide loan................5600......169.......13.4
Lloyds loan....................6500......138.......10
Debt to brother................15000.....500.......0
Natwest overdraft..............2000......0.........0
Barclaycard....................549.......30........21.9
Natwest credit card............922.......20........0
Natwest Credit card............2336......48........0
Total unsecured debts..........48830.....1101......-


Monthly Budget Summary
Total monthly income.................... 4,001
Expenses (including HP & secured debts). 2,900.12
Available for debt repayments........... 1,100.88
Monthly UNsecured debt repayments....... 1,101
Amount short for making debt repayments. -0.12

Personal Balance Sheet Summary
Total assets (things you own)........... 100,000
Total HP & Secured debt................. -76,000
Total Unsecured debt.................... -48,830
Net Assets.............................. -24,830

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

My comments in red.

The debt to concentrate on is the Barclaycard, due to the high APR.

At the current rate you are paying, it'll take you 22 months to pay it off, and cost you £111 in interest.

However, if you go to 12 months on the CT, dump the pay TV, and reduce the mobile phones to £10 PAYG, then use the money saved toward Barclaycard, you can clear it in 4 months, and pay just £15 interest.

Once Barclaycard is cleared, you will then have a massive £313pm to throw at the next highest APR, ie. the Nationwide loan, which you can have paid off in less that 2 years from now.

[Deleted User]

cakeforbrains wrote: »

I suppose he could use a car and I could take the bus, but with three children (one toddler) that would be a logistical nightmare.

My mother used the bus all the time, and she also had three children, with just 5 years between the three of us.

[Deleted User]

cakeforbrains wrote: »

and come to the conclusion that for a number of reasons it would be best to pay off my husband's brother. It would cover the whole of the capital of the debt and save a lot in interest and it would also help repair their relationship. Added to this, it would 'free up' around £500 per month to throw at the other debts.

I appreciate the way you are thinking, but there are 2 contra-arguments.

1. The debt to the brother is 0%, whereas some of your others are quite high APR.

2. The debt to the brother, presumably, doesn't show on your credit file, so paying it off doesn't improve your "official debt" situation, whereas paying off the Barclaycard, Nationwide Loan and the Lloyds Loan, will make reduce your "official debt" to barely £21,000.