Statement of Affairs and Despair

scorpio_biker

Hi,

I just popped in to wish you all the best and make a suggestion on the mobiles - have you looked at giff gaff? I've recently moved myself, my partner and my stepdaughter to them. Their sim only goodybags start at £5 month, you can set them to be recurring (so like a contract) but once you use up the minutes they act like a PAYG so you can't rack up big bills (like my stepdaughter did on O2). You can have a top up amount if you want to (just in case). And for a family you get free calls and texts to other giffgaff phones, so handy for the kids contacting you. They use the O2 network and although they have no call centre (you manage it online) I've found it very good.

cakeforbrains

Bedsit_Bob wrote: »

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.

Thanks for all your thoughts and comments Bedsit Bob.

Just to clarify: the debt to the brother isn't interest free. We had arranged to pay him for up to another year after the capital had been repaid. I completely appreciate your argument about 'official debt', though. It was one of the only arguments towards doing what you're suggesting, but the arguments against are stronger.

You're right about the Barclaycard. That's the first target.

You mentioned the buildings insurance when assessing my SOA. We live in a rented house and have contents insurance. The flat that my husband owns is part of a shared freehold and we pay £40 per month towards a 'pot', which pays for insurance on the building.

We've discussed the cars a lot. I too have been in the position of having (2) children and no car. At that time it was because I hadn't yet passed my test. Similarly to now I lived at the edge of a village several miles from town. It was hell. I'm not saying we'll definitely keep both cars, but doing so is quite high on my priority list if we possibly can.

The broadband and TV are definitely up for review as, mistimed as it seems, it looks like we'll be moving in the new year (to another rental property). I'm certain we can save on the gas/electricity when we move and it does have a water meter.

The mobile phones work out as £11 per month each for my oldest sons and then the rest between me and my husband. He and I are still in contract, but they're due for renewal in a couple of months so we'll definitely review then. I'd be loathe to lose my contract because I'm one of the lucky few who gets half price line rental for life from T Mobile, but I can certainly reduce it. My OH has just discovered that he can get 25% off through a work scheme with Vodaphone.

Thanks Scorpio - I'll look into that for the boys.

Mattygroves2

One way to stop paying tax on the profit from the flat (assuming you keep it) would be to transfer ownership into both your names and then putting an election in to HMRC to state that the rent is shared 99 / 1 in your favour as you pay no tax.

Should be easier to do if you've got a BTL mortgage rather than CTL and will cost £500 or so in solicitors fees but that should be tax deductable and you'd save the £500 in a year (or less) if you're currently paying 40% tax on the profit.

I'd have to agree that your internet services bill is high particularly as you've also got high mobile bills (which presumably means you use them for calls). We live in the sticks (so can't get the cheap broadband costs) and pay on average £35 for phone line and broadband including all landline calls and I think that is high.

cakeforbrains

Yeah, we're planning to go to a solicitor to find out about our options with the ownership of the flat. I am currently not on the mortgage at all, though, so I don't know how that affects things. One other option is for OH to 'pay me' to manage the tenancy, which I actually do anyway, and for me to register as self employed.

We don't use the landline at all really. It's just a necessity in order to have broadband. We have fibre optic, which is why it's so much money.

[Deleted User]

cakeforbrains wrote: »

We don't use the landline at all really. It's just a necessity in order to have broadband. We have fibre optic, which is why it's so much money.

If you don't do a lot of downloading, you could use a Mobile Dongle for your Internet.

I get by on 3G per month, which costs me just £15 on PAYG.

Even on the occasions I use more (eg. holiday with bed weather), I get by on 7GB for just £25.

kerri_gt

Bedsit_Bob wrote: »

If you don't do a lot of downloading, you could use a Mobile Dongle for your Internet.

I get by on 3G per month, which costs me just £15 on PAYG.

Even on the occasions I use more (eg. holiday with bed weather), I get by on 7GB for just £25.

We had a dongle when we moved a few years ago and it was a nightmare trying to open anything, we're not out in the sticks but aren't right in a town either. The connection was slow and kept failing.

I'm not suggesting fibre optic would be my choice (we've been upgraded in the area recently but i just wouldn't pay for the cost of it) but I do understand location can have an impact on the availability of choice.

[Deleted User]

A lot depends on signal, kerri gt.

If the signal is good at your address, a Dongle can give an excellent connection.

AlexLK

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

Monthly Income Details
Monthly income after tax................ 0 You cannot afford to be bringing no income in.
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 Can this be reduced?
Management charge (leasehold property).. 40
Council tax............................. 193 Over 10 or 12 months?
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 80Per month??
Telephone (land line)................... 0
Mobile phone............................ 76Reduce to a £10 contract each.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 45Get rid.
Internet Services....................... 44Ring provider and se if you can get a better deal.
Groceries etc. ......................... 450
Clothing................................ 50For a family of five? Seems low.
Petrol/diesel........................... 100Seems low.
Road tax................................ 30
Car Insurance........................... 53
Car maintenance (including MOT)......... 10Can you seriously maintain two cars on £10 per month?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 30
Other child related expenses............ 30What is this?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 19
Life assurance ......................... 13
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
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.

Just to note that the mobile phone costs are for four phones: ourselves and our two older sons.

My husband's income is an average as he has erratic, yet consistent, overtime (if that makes sense).

The other income is made of maintenance (302) and rental income (490).

Also to say that the Nationwide credit card is mostly 0% and some not.

My comments are marked in red"ink".

spudsofa

Hi....just a couple of points....mobile phone...I just came off my contract to a 30 day rolling contract with Voda £11...people call me not vica versa. You should go on the lowest tariff without upgrading or payg. Should be able to cut £30 from that bill.

Next is grocery....any chance of knocking £50-100 off that ? Look out for coupons or deals ?

Sky....as you know, basic package in still in contract or go freeview/freesat. Internet...get use to lower speed. My speed varies from 1.5 meg to 3 meg. Trust me, you get use to the lower speed and I have 3 laptops in the house.

Clothing....thats £600 a year....drop a little ? £500 perhaps ?

As you have mentioned earlier....rent a cheaper house....a 3 bed or even a 2 bed if possible. As this will be a temp measure.

You need to cut corners and suffer some hardship to get out of this mess. Also....rent the flat out, if it isn't selling, it is losing you money.

Do all that then you should be alright.

W

patchwork_cat

For the mobiles and especially your children look into Ovivo For a one off £20 you get 200 mins, 300 texts, 500mb data a month http://www.ovivomobile.com/