Later is here

Lotstogain

Hi,


I've been lurking for a while. I'm 48 and have been more or less in debt from my early 20s. And not even any student loans back in my day.


I'm embarrassed to say I don't think I've ever saved up or budgeted for anything in my whole life. It's always been 'buy now, pay later'. Well ... later is here. In fact it probably arrived a few months ago.


Because my financial management has been so poor, I've been rescued a few times by being able to reclaim bank charges, PPI or cashing in old work pensions. But then I've built the debt back up again. And again.


Now, I've got around 26K unsecured debt on credit card - which is my main concern. I've realised, unless some miracle happens ... there's no more magic money to rescue me. I can't continue to spend on credit cards and I'm struggling to see how I can make more than min repayments. I've also got a car on 0% finance, a mortgage (taken out 2 years ago), and a loan from bank of mum towards mortgage deposit....


I do feel ashamed that it has taken me so long to realise this - and I am not sure if I have had 100% LBM yet (maybe it's low energy), as - when I post my SOA - you will see I still have holidays in there ...


I can't believe that I have managed to run up this kind of debt without even having any kids etc. I think I've been living like an overgrown kid/teenager myself..


Over the past few months I have tried to juggle some stuff around to be a bit more MS, but now I am not sure how to shave it down any more. (well, holidays ... ?)


I will post my SOA and hopefully will get some advice/ tough love/ whatever - just good to know there are others dealing with similar things.


Thanks for listening

National_Debtline

Hi Lotstogain


Thanks for your post and we will look forward to seeing your SOA. I think you can expect lots of productive responses. Your situation is far from unique and there are always solutions available, even if some require bigger steps than others.


Dennis
@natdebtline

Lotstogain

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.................... 1
Monthly Income Details
Monthly income after tax................ 1809
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1809
Monthly Expense Details
Mortgage................................ 525
Secured/HP loan repayments.............. 195
Rent.................................... 0
Management charge (leasehold property).. 5
Council tax............................. 89
Electricity............................. 28
Gas..................................... 29
Oil..................................... 0
Water rates............................. 25.17
Telephone (land line)................... 10
Mobile phone............................ 8
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 12
Groceries etc. ......................... 20
Clothing................................ 1
Petrol/diesel........................... 60
Road tax................................ 2.5
Car Insurance........................... 23.5
Car maintenance (including MOT)......... 16.49
Car parking............................. 0
Other travel............................ 5
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10.4
Pet insurance/vet bills................. 0
Buildings insurance..................... 12
Contents insurance...................... 12
Life assurance ......................... 40
Other insurance......................... 1.5
Presents (birthday, christmas etc)...... 30
Haircuts................................ 6
Entertainment........................... 80
Holiday................................. 113
Emergency fund.......................... 0
Total monthly expenses.................. 1371.68

Assets
Cash.................................... 0
House value (Gross)..................... 123000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 131000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 102000...(525)......0
Secured Debt.................. 12000....(195)......0
Total secured & HP debts...... 114000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
santander......................3500......35........0
mbna...........................4000......40........0
barclays.......................4000......100.......0
virgin money...................7000......100.......0
m&s............................4000......100.......0
Total unsecured debts..........22500.....375.......-

Monthly Budget Summary
Total monthly income.................... 1,809
Expenses (including HP & secured debts). 1,371.68
Available for debt repayments........... 437.32
Monthly UNsecured debt repayments....... 375
Amount left after debt repayments....... 62.32
Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -114,000
Total Unsecured debt.................... -22,500
Net Assets.............................. -5,500

LJB290

I think a lot of us who frequent and lurk on this board can identify with what you say!
There are so many knowledgeable people on here who will be able to help steer you in the right direction!
No point in looking backwards and feeling guilty. Look backwards and learn from past mistakes but look forward to the future where you make much more sensible choices (most of the time)

Lotstogain

Comments welcome!

redpete

Why the life insurance if you have no dependants?

You need to add the APR % to the debts.

£20 a month on groceries! I think not. (Not convinced by £1 a month on clothes either.)

The rest looks reasonable although holiday and entertainment could be cut..

National_Debtline

Hi again


I'm assuming the grocery/clothing figures are missing an extra 0?? Maybe double check the figures in case you made some typos in your haste. You should be able to edit your post to reflect any changes.


In the meantime, I'd certainly agree with redpete that life insurance represents £40 that might be better used elsewhere.


Also, the loan from your mum is not reflected anywhere within the SOA - what understanding do you have with her as to repayments?


Dennis
@natdebtline

Lotstogain

Yes - £20 is ridiculous I know. But I am trying to make my budget balance and actually save for holidays (for once) which I am kind of committed to (I am prepared for the lecture).


So I'm guessing that's how it works - live on beans and lentils if you want to afford the holidays.


500g of split peas is about 50p in Mr Ts, and I have farm shop veg packs for 4.50 ... which I can make into stews etc. I live alone so its fine to eat lots of weird repetitive meals ..


re life insurance .. I'm not sure. I think it includes critical illness cover. And I have always been paranoid about leaving others with my debts when I die?


The APRs are all 0% Santander finishes April, others later in 2016 and then 2017. I am not using any of those for spending except ... I have been on the M & S one which is approx. 18%. But I know I must stop ...

Lotstogain

Its officially a gift .. I have no formal arrangement to pay her back, but I feel I should .. however ..


It's a bit complicated as for a while I lived in another property she has - and then continued paying some of the bills there even after I moved out. I have only just stopped this arrangement with her ...


So I think I have spent around £5k doing this over the years. (I think in my mind it was sort of guilt money for not living closer to her - my mental health has been a contributing factor .. )


Poor decisions like this are partly why I am on here and need help

blondieliz

If you live of just lentils and beans you will surely be lacking vitamins and minerals - are you really convinced that £5 per week is sustainable?

[Deleted User]

sorry but holiday is something that happens to other people when you're in debt. If you're serious about reducing and paying down debt, then £113 on a holiday plan per month is something that could be much better spent.