How Do I go about fixing this?!?!

Donury236

So I added up all we owe - other than mortgage. and it comes to £15,898.76 roughly. Its around £618 a month in repayments, approx £278 of that is interest.

I did try to get a repayment loan to pay it all off but they said that "they didn't think that ALONGSIDE all the other borrowing we could afford it"

Selling the house will not solve it so that is not an option in any way shape or form.

I have looked and if we get a loan of 16000k over 4 years the interest could be around 4% and repayments of £361. £256 LESS than we pay at the moment. and would pay back £17,329.40 as opposed to £29,652 if we keep it as is. but our credit ratings are in teh 650-770 bracket.

I do not know how to convince the banks that I am trying to clear it all as obviously........they want us to keep paying them the interest don't they! Why make £17.5k when you can make nearly 30 k!?

I really do not know what to do. I could do an IVA but that will mean we cannot even have a mobile phone contract for 6 years and the car would poss be sold if deemed ot be over 5k.

I just don't know what to do... This year - until April 2015 its manageable as we get help with childcare. Next year we wont and so we will be in minus figures to the point of not even able to get to work.

I use Calendar Budget and I reconcile it every evening and we have halved our spending but still....need help.

parsniphead

Hi Donury236

I didn't want to read and run. There will be lots of people along soon to help but completing a statement if affairs will help.

I'm not good with technology so hope the link works.

http://www.stoozing.com/calculator/soa.php

Best wishes.

Tixy

The issue for a potential lender for a new loan is that they cannot force you to use the money to repay your existing debts, or cannot be sure that you will not run up those debts again. So they take the worse case scenario that you spend the £16k and need to afford repayments on the £32k worth of debt.
That is why a potential lender is likely to decline you, not because you would be paying less in interest.

What debts do you currently have and what are the interest rates on each.
Did you apply for the £16k loan from one of the banks you already owe money to?

You may not be in a position to get a cheaper loan for the whole amount, but you may be able to move some of the debt to cheaper deals.

Donury236

**I just checked and I putteh sky amount in wrong as that was the kids having films during the hols 0 usually its £31 a month**

This is as it is now: Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1408
Partners monthly income after tax....... 1789.19
child Benefits................................ 136
Other income (Tax credits for childcare)............................ 946
Total monthly income.................... 4279.19

Monthly Expense Details
Mortgage................................ 563
Secured/HP loan repayments.............. 239.70000000000005
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124
Electricity............................. 250
Gas..................................... 0
Oil..................................... 100
Water rates............................. 0
Telephone (land line)................... 18
Mobile phone............................ 77.25
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 18
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 250
Road tax................................ 10
Car Insurance........................... 45.9
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 1200
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 43
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3526.85


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 131000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94000....(563)......4.99
Secured Debt.................. 4889.....(104.7)....8.5
Hire Purchase (HP) debt ...... 6500.....(135)......12.5
Total secured & HP debts...... 105389....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Very...........................4056......200.......39.7
Vertbaudet.....................48.7......5.........39.7
Studio.........................220.......25........29
TSB CC.........................900.......48........18
tsb od.........................250.......6.........18
First cc.......................1800......55........18
First OD.......................500.......100.......18
Natwest CC.....................1100......25........18
Natwest OD ....................2000......30........18
h&m............................135.......25........0
Total unsecured debts..........11009.7...519.......-


Monthly Budget Summary
Total monthly income.................... 4,279.19
Expenses (including HP & secured debts). 3,526.85
Available for debt repayments........... 752.34
Monthly UNsecured debt repayments....... 519
Amount left after debt repayments....... 233.34

Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -105,389
Total Unsecured debt.................... -11,009.7
Net Assets.............................. 14,601.3

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.

This is what it will be as of April next year as we will no longer get childcare paid for:
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1408
Partners monthly income after tax....... 1789.19
Benefits................................ 136
Other income............................ 0
Total monthly income.................... 3333.19

Monthly Expense Details
Mortgage................................ 563
Secured/HP loan repayments.............. 239.70000000000005
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124
Electricity............................. 180
Gas..................................... 0
Oil..................................... 100
Water rates............................. 0
Telephone (land line)................... 18
Mobile phone............................ 77.25
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 18
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 250
Road tax................................ 10
Car Insurance........................... 45.9
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 1200
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 43
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 3456.85


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 131000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94000....(563)......4.99
Secured Debt.................. 4889.....(104.7)....8.5
Hire Purchase (HP) debt ...... 6500.....(135)......12.5
Total secured & HP debts...... 105389....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Very...........................4056......200.......39.7
Vertbaudet.....................0.........0.........39.7 - would be cleared
Studio.........................0.........0.........29 - would be cleared
TSB CC.........................900.......48........18
tsb od.........................250.......6.........18
First cc.......................1800......55........18
First OD.......................500.......100.......18
Natwest CC.....................1100......25........18
Natwest OD ....................2000......30........18
h&m............................0.........0.........0 - would be cleared
Total unsecured debts..........10606.....464.......-


Monthly Budget Summary
Total monthly income.................... 3,333.19
Expenses (including HP & secured debts). 3,456.85
Available for debt repayments........... -123.66
Monthly UNsecured debt repayments....... 464
Amount short for making debt repayments. -587.66

Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -105,389
Total Unsecured debt.................... -10,606
Net Assets.............................. 15,005

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.

Tixy

Ok so at the moment it looks like you have an extra £230 to put towards your debts on top of the minimum payments?
Is that reality and if so are you paying it to your debts? Are you targeting it to your most expensive debts first?

If so then by the time you lose the childcare tax credits your debts should be quite a bit lower with some repaid altogether. In a year you would pay off more than the £1400 reduction you have shown in the second SoA

Is the childcare costs of £1200 all year round? (not just that amount in the schoole holidays). Is that likely to decrease anytime soon - e.g. if children are starting school or moving up to secondary school?
If the childcare costs are just before and after school then would there be a possibility of one or both of you changing your working hours or even reducing your hours to reduce those costs?

Your elec costs look very high - are you paying off arrears? if not then I would definitely shop around or look at your usage.

Given that the APR on the Very debt is very high it may be worth seeing if either of you are able to get accepted for a personal loan to cover these debts. How many recent credit applications have you made?

Tixy

I have just put the details of your debts in to a snowball calculator.

If you can afford £750 a month towards your debts and pay them in the right order then you could have all the debts paid off by January 2016, just 17 months.

When do your tax credits stop? if they stop from April next year then by then at £750 a month you could have paid £4016 off your balances, and your minimum payments would be around £210 a month, far less than they are now.

National_Debtline

Hi donury

Thanks for putting up your SOA(s). It's a good idea to give us the before/after picture as you have done.

The loss of your tax credits next year suggests to me that seeking a consolidation loan isn't the answer - even if you'd been accepted for it.

At least knowing that you have eight months before that drop in income gives you time to explore opportunities for reducing expenditure wherever possible. At the very least the aim should be to get that April 2015 budget to break even (before any unsecured debt repayments are taken into account). Obviously this website has oodles on how to find cheaper utilities/insurance/cable etc., though I appreciate you're probably doing that already.

Without getting too far ahead of ourselves, you may end up being able to negotiate reduced payments on your mortgage on an informal/temporary basis, should you find that your budget is unable to balance. The fact that you have some equity may give you a little more bargaining power with your lender.

These are just a few thoughts at this stage. I certainly don't see an IVA as being your best bet right now given the income changes on the horizon.

Kind regards

Dennis
Twitter: @natdebtline

Donury236

Tixy wrote: »

Ok so at the moment it looks like you have an extra £230 to put towards your debts on top of the minimum payments?
Is that reality and if so are you paying it to your debts? Are you targeting it to your most expensive debts first? I try to.

Recently things have cropped up like weddings, birthday nights out etc so that is NOT what we have left over, its nearer less than £100 a month if at all

Tixy wrote: »

If so then by the time you lose the childcare tax credits your debts should be quite a bit lower with some repaid altogether. In a year you would pay off more than the £1400 reduction you have shown in the second SoA

Tixy wrote: »

Is the childcare costs of £1200 all year round? (not just that amount in the schoole holidays). Is that likely to decrease anytime soon - e.g. if children are starting school or moving up to secondary school?
If the childcare costs are just before and after school then would there be a possibility of one or both of you changing your working hours or even reducing your hours to reduce those costs?

I have a 1yr old and a 5yr old. 5 yr old is before and after and 1yr old is all day. We cannot change hours as its fixed hours and we only have 1 car and work 30- miles from where we live so we car share. I am the only driver

Tixy wrote: »

Your elec costs look very high - are you paying off arrears? if not then I would definitely shop around or look at your usage.

yes, I have been tracking it and it *should* be about £120 a month!

Tixy wrote: »

Given that the APR on the Very debt is very high it may be worth seeing if either of you are able to get accepted for a personal loan to cover these debts. How many recent credit applications have you made?

I have not made any, however my ratings are 661 and 772. all the catalogues, the FD c/c, nATWEST od AND NATWEST c/c ARE IN my name.

[Deleted User]

Donury236 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1408
Partners monthly income after tax....... 1789.19
child Benefits................................ 136
Other income (Tax credits for childcare)............................ 946
Total monthly income.................... 4279.19

Monthly Expense Details
Mortgage................................ 563
Secured/HP loan repayments.............. 239.70000000000005
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124 - If over 10 months, swapping to 12 months will reduce it to £103-33 per month.
Electricity............................. 250 - How much? :eek:
Gas..................................... 0
Oil..................................... 100 - How much? :eek:
Water rates............................. 0
Telephone (land line)................... 18
Mobile phone............................ 77.25 - How many phones?
TV Licence.............................. 13
Satellite/Cable TV...................... 50 This is £600 per year. Cut down or, better yet, cancel and go Freeview/Freesat.
Internet Services....................... 18
Groceries etc. ......................... 300 - This is high, even for 4 people.
Clothing................................ 25
Petrol/diesel........................... 250
Road tax................................ 10
Car Insurance........................... 45.9 - Is there a reason (new driver, low/zero NDC) why this is so high?
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 1200 - this isn't far short of your salary. :eek:
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0 - Never?
Pet insurance/vet bills................. 0
Buildings insurance..................... 25
Contents insurance...................... 0 - You need this. Costs around a tenner.
Life assurance ......................... 43
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0 - Never?
Entertainment........................... 0 - Never?
Holiday................................. 0 - Not even days out?
Emergency fund.......................... 0 - You need something in here, doubly so as you are a home owner.

Total monthly expenses.................. 3526.85


Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 131000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94000....(563)......4.99
Secured Debt.................. 4889.....(104.7)....8.5
Hire Purchase (HP) debt ...... 6500.....(135)......12.5
Total secured & HP debts...... 105389....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Very...........................4056......200.......39.7 - Concentrate on this.
Vertbaudet.....................48.7......5.........39.7 - and this.
Studio.........................220.......25........29 - followed by this.
TSB CC.........................900.......48........18
tsb od.........................250.......6.........18
First cc.......................1800......55........18
First OD.......................500.......100.......18
Natwest CC.....................1100......25........18
Natwest OD ....................2000......30........18
h&m............................135.......25........0
Total unsecured debts..........11009.7...519.......-


Monthly Budget Summary
Total monthly income.................... 4,279.19
Expenses (including HP & secured debts). 3,526.85
Available for debt repayments........... 752.34
Monthly UNsecured debt repayments....... 519
Amount left after debt repayments....... 233.34

Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -105,389
Total Unsecured debt.................... -11,009.7
Net Assets.............................. 14,601.3

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.

You really need to cut back hard, and pay off as much as you can over the next 9 months, in anticipation of the new SOA coming into effect.

Your energy costs (£4,200 per year) are insane.

Search comparison sites for a better deal and, in the meantime, look to cut back on usage.

Just getting rid of the pay TV, going PAYG/sim only on the mobiles (even on 4 phones), and knocking about £100 off Groceries, will give you nearly £200pm extra.

You should be able to knock a hundred or so more off, by swapping energy supplier and being more economical with electricity usage.

[Deleted User]

Donury236 wrote: »

yes, I have been tracking it and it *should* be about £120 a month!

Even £120 seems high.

Given you list oil, I'm guessing the heating is oil fired, so what on earth are you running on electricity, that uses £120 worth, per month?

Also, from what you have said about work and child care, it looks like the house is empty all day, during the week, which makes the £120pm for electricity seem incredibly high.

Donury236

National_Debtline wrote: »

Hi donury

Thanks for putting up your SOA(s). It's a good idea to give us the before/after picture as you have done.

The loss of your tax credits next year suggests to me that seeking a consolidation loan isn't the answer - even if you'd been accepted for it.

At least knowing that you have eight months before that drop in income gives you time to explore opportunities for reducing expenditure wherever possible. At the very least the aim should be to get that April 2015 budget to break even (before any unsecured debt repayments are taken into account). Obviously this website has oodles on how to find cheaper utilities/insurance/cable etc., though I appreciate you're probably doing that already.

Without getting too far ahead of ourselves, you may end up being able to negotiate reduced payments on your mortgage on an informal/temporary basis, should you find that your budget is unable to balance. The fact that you have some equity may give you a little more bargaining power with your lender.

These are just a few thoughts at this stage. I certainly don't see an IVA as being your best bet right now given the income changes on the horizon.

Kind regards

Dennis
Twitter: @natdebtline

Dennis thanks.

The issue with the mortgage is that we are shared ownership and to change it at all we require permission from the Scottish Executive and they would have to investigate any additional borrowing on the mortgage. We spoke to the lender who confirmed that it was not worth it as it also will involve extra costs due to the level of paperwork involved. They advised a loan - and them promptly turned it down. our interest rate does go down to 3.99% in December though.

I have looked into the house insurance and that is still the cheapest of the level of cover we require. I do hope to change electricity supplier when the debt amount we have is paid off (currently its £400). we were on a variable plan till ed august and after that it is going onto the standard so that I am not tying us into any contract again. based on usage it would be around £1600 a year.

I would like to cancel the SKY! We got it as just transferred when we moved. We do not have a terrestrial Ariel but do have the dish now I guess so not really any need for the subscription.

the only difference personally is that my income had more than tripled as I was PT before I was on maternity leave. BUT....I am a temp....not an employee.