Advice, please.

leo2001_2

Hi All,

I just registered to the Forum as I desperately need help re: my debt problems. I should be gtateful if I could have any advice from any of you.

I have a personal loan and a mortgage. And a few credit cards with full limits. The total amount of those cards is about £10000. I'm making minimum payments of about £300 per month towards them. I am deseparate to clear those off. I thought about getting loan and additional borrowing from mortgage. But the loan was recently renewed and the mortgage company refused to lend me more money.

I was in worse situation last year when I can't make regular payments to credit cards. I think my credit rating was (and still is) effective by it. But I have never been late on mortgage and personal loan payments. I had to move in with my boyfriend to rent my flat out. I managed to fill my overdraft up and now making regular minimum payments to credit cards. But every months all I earn (I'm in full time employment) was used up to pay off debt. But making only minimum payments is abviously not good.

Any advice to help my situation? Or am I at a deadend? I feel so trapped and helpless.

I do appreciate your suggestions!

Leo2001

EagerLearner

Hi Leo, welcome to the forum - if you post all the items you spend on money on per month, with amounts spent (even the 'miscelaneous' bits and pieces), I am sure we can pick through them and make some suggestions. This is called an SOA (Statement Of Affairs) and is the first way we can try and help.

uberzoldat

Hi Leo. Can I just say that the people here are excellent and are bound to help you. I would strongly advise against borrowing further in an attempt to clear the debt.

If you post your Statement of Affairs like EagerLearner says, it would be a great start.

leo2001_2

Hi,

Thank you for your replies.

Here is my SOA.

Income £2000 (salary plus rental income from my flat)

Expenses: (all pcm)
Mortgage £550
Rent £230
Loan repayment £320
Credit cards payment £300
Petrol £150
Food £100
Insurance £30
Life Insurance £25
Medical Insuance £25
Gym £25
Mobile £35
Internet £10
Support mum £100
Maintenance bill (for flat) £50

I really appreciate if you could give some suggestion.

Leo2001

leo2001_2

Hi,

Thank you for your replies.

Here is my SOA.

Income £2000 (salary plus rental income from my flat)

Expenses: (all pcm)
Mortgage £550
Rent £230
Loan repayment £320
Credit cards payment £300
Petrol £150
Food £100
Insurance £30
Life Insurance £25
Medical Insuance £25
Gym £25
Mobile £35
Internet £10
Support mum £100
Maintenance bill (for flat) £50

I really appreciate if you could give some suggestion.

Leo2001

postingalwaysposting

leo2001 wrote: »

Hi,

Thank you for your replies.

Here is my SOA.

Income £2000 (salary plus rental income from my flat)

Expenses: (all pcm)
Mortgage £550
Rent £230
Loan repayment £320
Credit cards payment £300
Petrol £150 ~ can this be cut down a little? either look into public transport or try and reduce your miles?
Food £100 ~ is this just for yourself? if this is the case pop over to the old style board for tips in reducing this, i guess you could knock £25 off that
Insurance £30 ~ whats this? car insurance/house insurance (to cover your flat) or contents insurance for the flat you are renting?
Life Insurance £25
Medical Insuance £25 ~ is this needed? is it essentail for your mortgage?
Gym £25 ~ this is technically a luxary, can you find a way of keeping fit thats free or are you tied?
Mobile £35 ~ can you try and cut this down a little? if its payg make less calls and more txts if its contract see if you can get a lower package?
Internet £10
Support mum £100 ~ i am guessing this is personal? can you give us a little more info on this?
Maintenance bill (for flat) £50

I really appreciate if you could give some suggestion.

Leo2001

Hi leo, all my sugestions are in pink. However i can see a fair few things missing including... car tax, mot and repairs... xmas and birthdays... holidays and day to day spends (parking/magazines etc). How do all of these get payed? are they saved for or payed as and when? As you rent your flat out what do you do if repairs need to be done? Also i am confussed as to what your 'insurance' covers?

someone will be along with other suggestions too later

I'mcomingbackasaman

leo2001 wrote: »

Hi,

Thank you for your replies.

Here is my SOA.

Income £2000 (salary plus rental income from my flat)

Expenses: (all pcm)
Mortgage £550
Rent £230 ?You pay rent and mortgage
Loan repayment £320
Credit cards payment £300
Petrol £150 ? change your job to nearer
Food £100
Insurance £30 ? Shop around for cheaper
Life Insurance £25 ? Shop around for cheaper
Medical Insuance £25 " " " "
Gym £25
Mobile £35
Internet £10
Support mum £100 (Is she claiming all she can so you can reduce this?)
Maintenance bill (for flat) £50

I really appreciate if you could give some suggestion.

Leo2001

You may have to move if you can't afford your place, I'd write a letter to the companies I owe asking for reduced payments for the time being due to financial hiccup, to help get on your feet.

leo2001_2

Hi,

Thank you for your suggestions.

I'm sorry if my SOA wasn't very clear and confusing.

To "I'mcomingbackasaman"

I've moved to a rental accomodation (shares with my boyfriend) to let my own flat. That's why I have both mortgage and rent to pay. The income £2000 is including that rental income. My mum is not in UK. There's no benefits or support from government in the country she lives in. I can probably reduce it but that would be my last solution to my problems.

To "postingalwaysposting"

Petrol; It would be more expensive if I use public transport. I'm trying to reduce the miles. It's been reduced and by that extra I'm hoping to cover Tax and MOT when they are due.
Insurance £25 is for the car. I recently renewed it and that was the cheapest for 3rd party, fire and theft.
Medical Insurance is for not the one essential for Mortgage. It's private medical insurance. And the gym is the one connected to that insurance. Actually, I found it out from this website....the one Pruhealth was doing.

My current mobile phone contract is due to be ended at the end of september. It's not PAYG. I used to have landline, but I cancelled it to cut the cost down.

At the moment, I'm kind of scared to get to the X'Mas period as I don't have any saving for that. So far we managed to fix everythings needed by the tenants by ourself (thanks to my boyfriend). Whenever I got calls from my tenant, my first thought is "what happened in the flat and how much it's gonna cost me". I haven't had holidays for 2 years now. And lucky that I don't have to pay parking at work. I tied not to go to places need parking pay.

I think I could save on food and petrol more!

Leo2001

leo2001_2

Hi,

Thank you for your suggestions.

I'm sorry if my SOA wasn't very clear and confusing.

To "I'mcomingbackasaman"

I've moved to a rental accomodation (shares with my boyfriend) to let my own flat. That's why I have both mortgage and rent to pay. The income £2000 is including that rental income. My mum is not in UK. There's no benefits or support from government in the country she lives in. I can probably reduce it but that would be my last solution to my problems.

To "postingalwaysposting"

Petrol; It would be more expensive if I use public transport. I'm trying to reduce the miles. It's been reduced and by that extra I'm hoping to cover Tax and MOT when they are due.
Insurance £25 is for the car. I recently renewed it and that was the cheapest for 3rd party, fire and theft.
Medical Insurance is for not the one essential for Mortgage. It's private medical insurance. And the gym is the one connected to that insurance. Actually, I found it out from this website....the one Pruhealth was doing.

My current mobile phone contract is due to be ended at the end of september. It's not PAYG. I used to have landline, but I cancelled it to cut the cost down.

At the moment, I'm kind of scared to get to the X'Mas period as I don't have any saving for that. So far we managed to fix everythings needed by the tenants by ourself (thanks to my boyfriend). Whenever I got calls from my tenant, my first thought is "what happened in the flat and how much it's gonna cost me". I haven't had holidays for 2 years now. And lucky that I don't have to pay parking at work. I tied not to go to places need parking pay.

I think I could save on food and petrol more!

Leo2001

EagerLearner

Hi,

In addition to what you are already trying to cut (food, petrol) - can you join these sites?

- Pigsback.com - earn free high street vouchers which will help with Xmas & birthdays, even food shopping
- Quidco.com - every time you take out new insurance, new bank account etc you could get cash back in your account. For example, health insurance right now you get £115 back in cash, for nothing, no sneaky tricks or anything. In the last 2 years we have made alot of free money from Quidco (see sig).
- Clickback sites - free money for just clicking (see my sig) - only if you have time though.

The grocery challenge on the Old Style board is good to do every month too, keeps you to your target and you can save any money you don't spend towards Xmas for example or nice treats.

Hope this helps - it is good you are aware of the need to cut down, you definately need to have money aside in an ISA for your flat maintenance just in case and I understand the need to send money to your mum.

RAS

leo2001 wrote: »

Hi,

Thank you for your replies.

Here is my SOA.

Income £2000 (salary plus rental income from my flat) How much do you charge for rent?

Expenses: (all pcm)
Mortgage £550 - Is this interest only or repayment
Rent £230
Loan repayment £320 - we need to se the APRs, value and final payment dates for all of these
Credit cards payment £300 - we need to se the APRs, value and minimum monthly payment dates for all of these
Petrol £150 - you need to cut this back - even if only by driving conservatively, keeping the tyres at the right pressure, travellling at less than the speed limit and turning off in stationary traffic. Buy a little book, record the mileage, every furle purchse and the mileage per litre in between purchases to teach you haow to get the best out of the vehicle.
Food £100 - you can reduce this
Insurance £30 - what sort
Life Insurance £25 - if you have no dependants do you need this? If you do need it check out the cheapest term insurance and use quidco.
Medical Insuance £25 - you cant afford this when you are in debt
Gym £25 - ditto - it does not matter if it was the cheapest deal on here, it is costing you your credit rating and the highest APR on your cards
Mobile £35 - cut this to the minimum package and go PAYG as soon as possible
Internet £10
Support mum £100 - you really need to talk to mum. If your finaces go belly up then you will not be able to send her anything.
Maintenance bill (for flat) £50 - sensible, but stash it in an ISA

I really appreciate if you could give some suggestion.

Leo2001

Also

Car maintenance, tax, council tax, clothes, etc.

Sorry but can you go to the edit button and mark up exactly want each insurance is for?

You say 325 for car insurance but those are listed as life and medical.