£46k in debt.....at 24.

in_need_of_direction

Sorry should have wished you a happy birthday. I know you said it wasn't the best time to get a decision but if it had been me, it would have been exactly what I wanted. I find bad news that I can work on easier to cope with than having something hanging over me.

tootallulah

Hello I too am pleased that you are not behind bars. Now you know exactly where you are, what you have to do and you know that with a fair following wind you will be out of the mire by the age of 27, which is often just about when most of us realise we are in debt.

I am looking forward to seeing you succeed, to be honest at 18% interest I would think that every £1 over paid counts.

tootallulah

One other thing are you interest only on the mortgage? If you could do that for three years then that would be a help.

Also you just need to batten down the hatches, sell anything that you can, take on any extra work that you are offered (obviously the wrong time for your real job but there may be other offers). And you need to get an extra payment put away "just in case". I would say it is time to review the toys and EBay the heck out of your stuff none of which means a bat in comparison with a roof over your head. Pre Christmas is the perfect time. Also offer yourself to clear up peoples' stuff from spare rooms and garages and do a regular car boot. When I got my first house, having lied about what I earned, it was car boots that meant I kept the house. I lived off my families and friends tat for nearly two years, and honestly - happy times.

Many of us have done stupid things of greater and lesser severity, the key is not to be defined by your mistakes, and never to make them twice.

girlatplay

Happy new thread YB.

I echo what the others have said. You already know what you need to do and now you have the exact figure to work with.

When you are 27 and all this is behind you, you will still be 10 years younger than what I am now!!! :eek::cool:

I have subscribed

heartbreak_star

Happy birthday and happy new thread.

Good advice given here - hopefully you're sorted soon.

Best of luck!

HBS x

YoungBusinessman

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 3500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3500

Monthly Expense Details
Mortgage................................ 600
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 40
Clothing................................ 40
Petrol/diesel........................... 210
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 1350


Assets
Cash.................................... 2500
House value (Gross)..................... 67500
Shares and bonds........................ 0
Car(s).................................. 12000
Other assets............................ 2000
Total Assets............................ 84000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 45000....(600)......0
Total secured & HP debts...... 45000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Court repayment................46000.....1700......18
Total unsecured debts..........46000.....1700......-


Monthly Budget Summary
Total monthly income.................... 3,500
Expenses (including HP & secured debts). 1,350
Available for debt repayments........... 2,150
Monthly UNsecured debt repayments....... 1,700
Amount left after debt repayments....... 450

Personal Balance Sheet Summary
Total assets (things you own)........... 84,000
Total HP & Secured debt................. -45,000
Total Unsecured debt.................... -46,000
Net Assets.............................. -7,000

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

Ok well iv not put anything for a few household expenses as the £600 a month that iv put for mortgage repayment covers my half of everything, from mortgage payment to council tax/electric. The house value/mortgage outstanding is only displaying my half share, its actually worth £125k with £90k outstanding. The income is net amount as a minimum average iv achieved over last 24 months, since i have well and truely got the motivation and drive to blast this debt away, i will be banging in the hours come summer time and an increase in income will be more than likely. -£7k net worth so i suppose iv just set my first goal, get that emergency fund build high enough that emergency fund is breaking even. Before summer at least.

Thanks for all the replies and support this far, these forums are incredible. :j:beer:

YoungBusinessman

Also 2 adults in household as own house joint with my gf, the debt is all mine as is the above figures. She has her own income and no debt(so jealous but so will i be....soon!!! )

girlatplay

I don't want to burst your bubble but £67,500 x 2 = £135,000, not £125,000. There is a figure not quite right there somewhere.

SOA looks good though. There is not much you can cut back on. I could ask if you really need new clothes, but it's not a huge saving with the level of salary you have. As you said, the monthly income is minimum average so if you are likely to earn more you will be putting that towards the debt anyway. You have a comfortable income, even with the debt. You have money left over after the normal debt payments.

Also, the £100 to the emergency fund may be coming out of your income but will be building up in your savings ready for any emergencies so you are planning well.

Keep going!

kermit2601

Greetings YB, just popping in to wish you all the best. What do you do work-wise out of interest?

As mentioned above there aren't really that many potential cutbacks you can make/haven't already made but the big one that springs out is the cars. That's the reason I ask about your job. Do you need 2 cars (I'm aware that some people do so just a question) and the petrol/diesel seems very high (again I'm aware it might be for work/living out in the middle of nowhere)? If at all possible that would be the first thing to look at. If you can sell one of the vehicles, according to your assets valuation that could get you £5-6k towoards your emergency fund then the lump sum pay off.

YoungBusinessman

Girl at play, absolutely correct, total oversight! SO net worth is infact -£12k not -£7k!!! So thats the target for 2015, never miss a payment and build up the emergency fund to get a positive net worth by the end of 2015. Itl soon fly round like this Xmas has, i just need to keep motivated.

I work in construction industry on price work. Thats how weather/dark mornings/evenings effect pay over the winter. I dont have 2 cars i just have my work car, the other car is my gfs which she needs for work, its worth about £17k which i didnt include(if only it was mine, id be selling it tomorrow!) we have many ambitious long term goals financially, this is just a small step paying this debt off, the overall picture is much much bigger although this will probably be the hardest part!! Seen someone post on these boards with 90K debt........if mine was that level id worry alot more than i am doing!!!

As for the income, that seems to be the minimum average but anything could happen. It could end up higher it could end up lower, thats why this emergency fund....is an emergency!! Looks like a horrible day tomorrow, not looking forward to working all day for zilch....least iv got work lined up for Saturday which will go straight to the emergency fund!! Off to put my feet up and watch "Skint". Hopefully pick up a few tips!!