how do i get out of debt?

andyfromotley

honeybee111 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 840
Partners monthly income after tax....... 1700
Benefits................................ 190
Other income............................ 0
Total monthly income.................... 2730

Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 317
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 105 This is really high!! Your gas and electric bill come to nearly 2k per year!!! Cut it down dramatically. Shift suppliers, use less. a lot less![ Aim for no more that £1200 per year/B]
Gas..................................... 60
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 30
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 15 You can get this cheaper. Aim for £16 per month for phone and internet
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 240 Again huge - why so much?
Road tax................................ 30
Car Insurance........................... 160 Nearly 2k on car insurance?? Flipping heck!!
Car maintenance (including MOT)......... 20 Not enough to mot service and repair two cars
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 140
Medical (prescriptions, dentist etc).... 0 Never??
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 Nope, way too high
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 100
Total monthly expenses.................. 2507


Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 3000
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 227500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96000....(500)......0
Secured Debt.................. 10000....(317)......0
Total secured & HP debts...... 106000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit union...................6500......160.......0
barclaycard....................7500......165.......0
capital one....................1000......50........0
argos..........................850.......50........0
kays...........................850.......50........0
studio24.......................850.......50........0
Total unsecured debts..........17550.....525.......-


Monthly Budget Summary
Total monthly income.................... 2,730
Expenses (including HP & secured debts). 2,507
Available for debt repayments........... 223
Monthly UNsecured debt repayments....... 525
Amount short for making debt repayments. -302

Personal Balance Sheet Summary
Total assets (things you own)........... 227,500
Total HP & Secured debt................. -106,000
Total Unsecured debt.................... -17,550
Net Assets.............................. 103,950

Hi i have added some comments but i don't think they are going to resolve this one. (although you should look at those expenses i have highlighted) You may need some kind of debt relief. Particularly as your maternity leave is going to reduce your income. Try calling national debt line or step change or CAP. They will go through it piece by piece with you and suggest solutions.

honeybee111

thanks.
regards car.
we are in rural scotland. we both spend £30 a week on fuel.
car insurance is £75 and £80. i have probably spent £500 on car maintenance this year.
electricity is in arrears so cant shift... ive no idea how we spend so much but apparently its normal.. last year i used 18% more!
i dont save for christmas or birthdays.
there is always something else to pay first.

honeybee111

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 552
Partners monthly income after tax....... 1700
Benefits................................ 337
Other income............................ 0
Total monthly income.................... 2589

Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 317
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 105
Gas..................................... 60
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 30
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 240
Road tax................................ 30
Car Insurance........................... 155
Car maintenance (including MOT)......... 45
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 130
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2197


Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 3000
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 227500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96000....(500)......0
Secured Debt.................. 10000....(317)......0
Total secured & HP debts...... 106000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................7500......165.......0
credit card....................1000......50........0
catalogue......................850.......50........0
credit union...................6500......160.......0
store card.....................850.......20........0
catalogue payment pla..........850.......30........0
Total unsecured debts..........17550.....475.......-


Monthly Budget Summary
Total monthly income.................... 2,589
Expenses (including HP & secured debts). 2,197
Available for debt repayments........... 392
Monthly UNsecured debt repayments....... 475
Amount short for making debt repayments. -83

Personal Balance Sheet Summary
Total assets (things you own)........... 227,500
Total HP & Secured debt................. -106,000
Total Unsecured debt.................... -17,550
Net Assets.............................. 103,950

Created using the SOA
Reproduced on Moneysavingexpert with permission, using Firefox browser.

HappyMJ

There you go now it balances and shows you have £77 cash every month to spend on whatever you like. You can use that £77 for either your discretionary spending such as Christmas, presents, birthdays or special occasions or making overpayments on your debts but if all your debts are charging no interest save as much of it as possible for a potential full and final settlement offer in the future.

£11,050 at £315 per month and you'll be debt free in 3 years and can then concentrate on the mortgage.

edit: you edited it after I posted....I thought you were going to use the settlement to clear one of the debts which then creates the surplus each month. If you clear the credit union debt with the settlement you will have that surplus you had before you edited it.

andyfromotley

Her income is about to drop for maternity leave too.

HappyMJ

andyfromotley wrote: »

Her income is about to drop for maternity leave too.

It looks like that's been taken into account first post says income is £880 and SOA says income is £552.

Dobbibill

It may be worth checking this out to see if you are entitled to anymore benefits now that you have had another child. http://benefits-calculator.turn2us.org.uk/AboutYou

Petrol/diesel........................... 240
Road tax................................ 30
Car Insurance........................... 155
Car maintenance (including MOT)......... 45

How much would this decrease if you got rid of one of the cars temporarily, while you are on mat leave?

Depending on the age/condition of the car, as to what you would get if you sell it but it would be additional money towards the debts.

What is this? Would it decrease while you are on mat leave?

Other child related expenses............ 130

Just a few suggestions to go with PP's.

DB

Rachiedabbler70

honeybee111 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 552
Partners monthly income after tax....... 1700
Benefits................................ 337
Other income............................ 0
Total monthly income.................... 2589

Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 317
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 105
Gas..................................... 60
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 30 (if this is a contract phone can you change to PAYG when contract expires?)
TV Licence.............................. 15 (Do you need TV? I don't have TV which is a throwback to when I had £18k of unsecured debt and had to trim everything off)
Satellite/Cable TV...................... 0
Internet Services....................... 15 (consider some sort of a deal if this is close to expiring - I got Plusnet for £2.50 a month for 12 months, paid line rental in one off payment and was given £80 cashback)
Groceries etc. ......................... 300
Clothing................................ 50 (can you manage for a year without anything new - except kids
Petrol/diesel........................... 240 (can this be reduced now you are on maternity leave?)
Road tax................................ 30
Car Insurance........................... 155
Car maintenance (including MOT)......... 45
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 130 (is this a controllable expense - this amount alone could help you overpay your debts each month/
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15 (if this is close to expiring try shopping around as I got a deal for £84 for combined building and contents for 12 months )
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2197


Assets
Cash.................................... 0
House value (Gross)..................... 220000
Shares and bonds........................ 3000
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 227500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 96000....(500)......0
Secured Debt.................. 10000....(317)......0
Total secured & HP debts...... 106000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................7500......165.......0
credit card....................1000......50........0
catalogue......................850.......50........0
credit union...................6500......160.......0
store card.....................850.......20........0
catalogue payment pla..........850.......30........0
Total unsecured debts..........17550.....475.......-


Monthly Budget Summary
Total monthly income.................... 2,589
Expenses (including HP & secured debts). 2,197
Available for debt repayments........... 392
Monthly UNsecured debt repayments....... 475
Amount short for making debt repayments. -83

Personal Balance Sheet Summary
Total assets (things you own)........... 227,500
Total HP & Secured debt................. -106,000
Total Unsecured debt.................... -17,550
Net Assets.............................. 103,950

Created using the SOA
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Hi - I've made some comments in red - hope these give some food for thought. Do you shop around for all your insurances - car, house etc.? My car renewal came through and it was £100 more than the best quote on line so I got my existing company to price match or I would leave - so they price matched. Your food budget looks good already I would suggest trying the grocery challenge to keep you to this amount. Hope it all gets better for you. You will find a way through:)

honeybee111

thank you,
we shop at lidl iceland, and have a large freezer. we shop in bulk.£300 will last approx 6weeks.so eventually i end up with surplus.

phone contracts due to end november and wont be renewed.
the house insurance, is £27 a month. could look into going cheaper.
diesel costs of £240 are about right, and they were recently £400, due to my husbands relocating his workplace closer to home.
because we live rurally we ideally need two cars, but can see that this would free up so much cash each month. we may have to reconsider this option.

the last 3 months of my maternity my wage is NIL.
i've managed to calculate that as my husband gets 13 pay days, as long as we dont fall behind, we will be well ahead with our mortgage, so in the last month we will have a month extra mortgage payment spare. and can use that instead.

I actutally dont spend £50 a month on clothes. i would be aswell taking my £50 to carboot and spending it on clothes there. my kids dont often get new clothes.
my new baby has lots of accessories, i dont think i paid £5 for any singular item and that includes a jumperoo.
we dont eat out. we dont have take aways. we dont smoke. we do drink but not a lot.
i think to half of my problem is not budgetting for emergencies, and holidays/birthdays/christmas. and not saving.

in_need_of_direction

Have you outgrown children's clothes or toys that you could sell?