SOA - any advice gratefully received

[Deleted User]

Of the cards, the Barcalycard is the killer.

At the rate you are currently paying, it will take you 7 YEARS to pay it off, and you will pay more in interest, than you currently owe.

Consider dumping the Satellite/Cable TV, and going instead with a phone and BB deal. This should at least halve the cost.

Likewise, cancel the phone contracts and get a couple of £10-ish PAYG sims.

Putting the £60 saved from these two, toward the Barlaycard, would get it down to less than three years, and save you over £2,500 in interest.

Mrs_Cheshire

Just wanted to say well done for taking the first step and getting advice, I would definitely get in touch with step change, payplan or Christians against poverty ( all free) and get some impartial advice about how best to deal with it all. We're going through CAP, they have drawn up a Debt Management Plan based on our SOA and I feel like a weights been lifted. They are currently organising reduced payments to our creditors.
We have budgets set for everything and it really helps you feel in control and not worried about simple things like having food on the table. There were times when I'd only have the change in my purse to last in the week before payday.
If you've got any questions about the process just shout!

ValHaller

js8285 wrote: »

Unsecured Debts
Description....................Debt......Monthly.. .APR
Loan...........................10000.....220...... .11.9 was 10K now about 8K with 4 years to go
Barcalycard....................3000......80....... .27.9
First Direct CC................1600......50........0
Halifax Overdraft..............600.......40........0 i pay £10 a week, they charge £1 a day so it's a very slow way of paying this off - is there another way?
Halifax CC.....................1000......20........0
Total unsecured debts..........16200.....410.......-

A small improvement would be to put essential expenditures on to credit card to the extent of £600 and put the money you would use to pay this to clearing the overdraft. On the the cards this £600 would cost £16/month approx.

On its own it won't put your situation right, but it will help

js8285

Just wanted to say thanks so much to everyone for the suggestions, already made me feel better to know there are options available that i'd not even thought of.

I clearly need to sort the overdraft out.I'm going to try a few of the suggestions on here and if that doesn't work ask Halifax if they'll freeze the interest. It'll affect my credit but as some have said my credit will already have taken a hit due to the amount i have outstanding. And at least then my £10 a week will be paying off £10 a week and not £3.

Bedsit Bob - thanks so much for that, a real eye opener to show that a little change can take more than half the years off.

I'm going to look into the interest only on the mortgage for a year too, that'd give me a bit extra money to hit the other debts with for a year.

Thanks Mrs Cheshire, just been reading about CAP, that's really helpful as i'd not heard about them.

[Deleted User]

js8285 wrote: »

Bedsit Bob - thanks so much for that, a real eye opener to show that a little change can take more than half the years off.

The reduction of years is secondary, to the interest you will save.

£2.5k is a hell of a lot of interest.

The_booboos

js8285 wrote: »

Hello,

Sorry this is so long!

I have never posted on here before but i have been reading through the tips and advice for some time now, and putting as much as i can into practice. I am really struggling to make ends meet and i'd be so grateful for any advice anyone can offer. I've posted my SOA below. I have tried so hard not to default on any payments and have managed it so far (though had the odd late payment). I think my biggest issue is that we have next to nothing left over each month so when something comes up (e.g car tax, school trips/uniform, vet bills) i put them on a credit card as i don't have the money. This practice is also why the loan has increased over time - car died couple of years ago so had to increase the loan. I know we can't keep doing this when 'ad-hoc' things come up so something has to change, i'm just at a blank as to what to do now. So if anyone out there has any advice i'm open to anything!

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 1100
Benefits................................ 80
Other income............................ 400 Rent from property
Total monthly income.................... 2680

Monthly Expense Details
Mortgage................................ 450
Secured/HP loan repayments.............. 0
Rent.................................... 680 i know this is high, it is only a 2 bed flat, but it's an expensive area. Tied in for another 6 months yet but will look out for cheaper property after that, though realistically won't get anything much lower.
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 50
Gas..................................... 90 this is high as it includes overpayment for a build up from last winter, therefore can't change supplier.
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 50 that's 2 contracts
TV Licence.............................. 12
Satellite/Cable TV...................... 60 that's phone/tv/internet (needed for work)
Internet Services....................... 0
Groceries etc. ......................... 240 this is food, toiletries, pets
Clothing................................ 0
Petrol/diesel........................... 160 High but no other alternative for me getting to school and work on time (eg bus/car share)
Road tax................................ 0
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100 This is just after school club so we can both work full time. (in the school holidays it's much more so we have serious money problems in August)
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 8
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 40
HMRC overpayment........................ 15
Total monthly expenses.................. 2212


Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 750
Other assets............................ 0
Total Assets............................ 85750


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 75000....(450)......0
Total secured & HP debts...... 75000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................10000.....220.......11.9 was 10K now about 8K with 4 years to go
Barcalycard....................3000......80........27.9
First Direct CC................1600......50........0
Halifax Overdraft..............600.......40........0 i pay £10 a week, they charge £1 a day so it's a very slow way of paying this off - is there another way?
Halifax CC.....................1000......20........0
Total unsecured debts..........16200.....410.......-


Monthly Budget Summary
Total monthly income.................... 2,680
Expenses (including HP & secured debts). 2,212
Available for debt repayments........... 468
Monthly UNsecured debt repayments....... 410
Amount left after debt repayments....... 58

Personal Balance Sheet Summary
Total assets (things you own)........... 85,750
Total HP & Secured debt................. -75,000
Total Unsecured debt.................... -16,200
Net Assets.............................. -5,450

RE the first direct and Halifax Cards - these are both 0% for another 6 months or so, after this i plan on putting both balances onto my Barclaycard who are always offering me 0% on balance transfers.

RE the Mortgage - i've checked the rate and for a buy to let i'm on as good as i can be. I do make a £50 loss on the rent each month but i don't want to increase the rent in case my tenants move out. I will increase it to £450 if the tenants move on as it's been that much for 3 years now. Also, we can't live in that house as we moved to another area for work. Can't sell and buy something here (and stop the high rent) as house prices are almost double here.

I'm so worried about our situation that i've been thinking about consolidating it all into a secured loan, i know it is a risk and i know it'll mean paying over a longer term, but i'm so worried that something big will happen one month and we'll not be able to pay the rent as we have nothing saved.

I think that's it, can anyone please help???

Hi there, I think you have some excellent ideas from people so far.
If I may bullet point the areas I would look at.
1) Increase the rent to £430, its going the right way
2)Possible rent reduction where you are, ( has costs and time hastles )
3)Awareness of electric and gas heating costs, 1 degree makes a big difference
4) Pets ...what and how much ?
5)Consolidate all the debts over the shortest time, and don't take any more on.
6) Is it time for a pay rise ??!!, Extra work/overtime / new business , all you need is £200-£500 extra a month and it will make a big difference.

Thanks