Finally facing up - SOA

Kittykat85

Ok, so the title says it all. I am in a dire situation with unsecured debt. I have been considering a secured loan but could only get offers with ridiculous interest rates plus I REALLY don't want to risk my house.

I got here by being naive and massively overspending. I have nothing to show for it. I also have depression/anxiety issues and this isn't helping. I'm currently on a final written warning for sick absence at work.

Here goes....
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1427.23
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1427.23

Monthly Expense Details
Mortgage................................ 361.7
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 73
Electricity............................. 30
Gas..................................... 28
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 29.99
Groceries etc. ......................... 350
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10.4
Pet insurance/vet bills................. 25.33
Buildings insurance..................... 23.71
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 25
(Unnamed monthly expense)............... 0
Dog food and general costs.............. 55
Total monthly expenses.................. 1219.25


Assets
Cash.................................... 0
House value (Gross)..................... 74000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 74000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 66950....(361.7)....4.99
Total secured & HP debts...... 66950.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan...................4250......119.2.....24.2
Natwest Overdraft..............1050......30........19.9
Nationwide Overdraft...........250.......0.........0
SimplyBe.......................238.......11.3......44.9
Barclaycard....................1500......17.47.....3
Capital One....................450.......15........39.9
Very.co.uk.....................1337.5....35.3......49.9
Nationwide Loan................9250......186.3.....14
Total unsecured debts..........18325.5...414.57....-


Monthly Budget Summary
Total monthly income.................... 1,427.23
Expenses (including HP & secured debts). 1,219.25
Available for debt repayments........... 207.98
Monthly UNsecured debt repayments....... 414.57
Amount short for making debt repayments. -206.59

Personal Balance Sheet Summary
Total assets (things you own)........... 74,000
Total HP & Secured debt................. -66,950
Total Unsecured debt.................... -18,325.5
Net Assets.............................. -11,275.5

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I propose to use the following creditor offers, initially for a year. Hopefully in that time of living within a realistic budget I will be able to get a second job or a lodger and also stop/seriously cut back smoking

Debt Details & Offer to Creditors

Secured & HP Debt DescriptionDebt(£)Monthly(£)Mortgage66950 (361.7) Secured & HP Debt totals66950 - Unsecured Debt DescriptionDebt(£)Offer(£)Natwest Loan425048.23Natwest Overdraft105011.92Nationwide Overdraft2502.84SimplyBe2382.7Barclaycard150017.02Capital One4505.11Very.co.uk1337.515.18Nationwide Loan9250104.98Unsecured Debt totals18325.5207.98

Feedback please, be honest (but gentle)

Pablosammy

Hi! Well done for facing up to it.

It's actually a fairly reasonable SOA. The only item that sticks out to me is the grocery amout of £350. I'm in a two person household, and without really trying or 'going without' ours is below £200. You could easily halve that bill by shopping sensibly, freeing up most of the £200 you're short by. I take it most of that is due to smoking?

Do you have the space/inclination for a lodger? (EDIT: Just re-read and realised you are considering it!) You could quickly pay off some of the high-interest low-balance debts with a bit of extra income.

I'd think carefully about going down any sort of DMP or offers to creditors, as I don't think you're too far off and I wouldn't suggest getting any more black marks on your credit file.

Last but not least, I understand how depression and anxiety can affect finances (rather than the other way around!), as I've struggled with it myself since an early age. The fact you're on here shows you must be feeling reasonably ok right now and not hiding away... make the most of it and get everything in order.

lee111s

If you get a lodger and cut out smoking your financial situation will improve drastically.

I've never understood how people can justify smoking whilst being in lots of debt. Well done for coming clean though, with some sensible decisions you'll be able to get on track.

Good luck!

seanavfc92

Kittykat85 wrote: »

I have been considering a secured loan but could only get offers with ridiculous interest rates plus I REALLY don't want to risk my house.

I am so glad you didn't go with this.

It is such a crazy decision to voluntarily secure unsecured debt on a house! People are scared senseless when the creditors threaten to go for a Charging Order, yet are happy to take a secured loan out!

zenshi

lee111s wrote: »

I've never understood how people can justify smoking whilst being in lots of debt.

Good luck!

I take it you have never been a smoker?!

It really isn't that easy to stop regardless of the debt situation!

double_mummy

i do less than you on groceries for 2 adults and 2 kids you could probs cut that to about 150 get yourself over to the old style board

also where do you buy your dog food? have you looked online?

is your council tax over 10 or 12 months?

can you cut your entertainment bill down a bit - its £480 per year? what about your clothing bill - you have put down £360 per yer do you actually spend that? what about hair dressing could that be cut as it is £120 per year atm?

Kittykat85

Yes, I spend around £30-35 a week on tobacco. I also have a fizzy drink addiction, I've down shifted to Sainbury's own but I don't drink anything else.
I really just need a break from living on nothing! I also owe my mum about £1000 but that's informal. I'd hope that by going on to a DMP I can get myself sorted and then go back up to full payments. Also, if I'm just paying minimum balances hardly change. By going down this route and asking for interest and charge freezes I'll make MORE headway.
My biggest fear is losing my house.

Kittykat85

Clothing - yes I probably do as I am a size 24 a lot of the discount option don't fit and I also take a size 9EEE shoe, making Evans pretty much my only option there, at £30 a pair! I walk a lot so basic shoes wear out quickly.
I don't currently feel like I do anything entertaining as I'm always broke! That figure is a meal with my father once a month and 2 nights at friends house where we bring a bottle/dessert or cook.
Haircut is very realistic. The cheapest I've found here is £13 for a dry cut, I have stopped colouring it and need a cut every 6 weeks as it is a very short style. I also accounted for my eyebrow waxing as I could go without any makeup if they are done. That may sound extravagant bug I need to feel confident in my job dealing with customers face to face.

Kittykat85

I feed my boy raw, it costs about 95p per day + bones from the butcher at £2.99, the rest would actually be toys/chew sticks etc

theoretica

For fizzy drinks have you tried sparkling water (big bottle of the cheapest sort) + squash?

Kittykat85

theoretica wrote: »

For fizzy drinks have you tried sparkling water (big bottle of the cheapest sort) + squash?

I'll give that a try, thank you.