Help on getting back on the straight and narrow

ClaretBob

Looking for a bit of help and guidance

I have managed to accrue quite an amount of debt, not through any particular way just through my bad management of finance and overspending when we don't have it.

I am married and have 2 children, the debts are in my name only

Currently I am meeting payments on all debtors but by the end of this month my overdraft will be maxed. So in effect I'm using credit to pay credit.

I'm probably going to need to do a cash transfer to clear my od to keep us going while I get a plan together to keep things going.

We have a mortgage and I cannot risk our family home.

What info do people need in order to provide some advice?

I've started having health issues connected to the worries around this, my wife is aware.

marcsshell

Hi,
Try posting a SOA so people can see what you income and expenditure is and offer ways you can cut down.

ClaretBob

Sorry what's SOA?

sourcrates

ClaretBob wrote: »

Sorry what's SOA?

Statement of affairs - http://www.stoozing.com/calculator/soa.php

marcsshell

sourcrates wrote: »

Statement of affairs - http://www.stoozing.com/calculator/soa.php

What sourcrates said lol. Was just about to post the link myself.

ClaretBob

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 2070
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2070

Monthly Expense Details
Mortgage................................ 577
Secured/HP loan repayments.............. 185
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 109
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 14
Satellite/Cable TV...................... 28
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 50
Petrol/diesel........................... 80
Road tax................................ 0
Car Insurance........................... 25
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1624


Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 135000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 109000...(577)......4.3
Hire Purchase (HP) debt ...... 7000.....(149)......0<
(Unnamed debt).................350......(36).......0
Total secured & HP debts...... 116350....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................10900.....215.......6.9
Virgin ........................1900......25........0
Halifax .......................1700......17........0
Overdraft .....................1700......0.........0
Total unsecured debts..........16200.....257.......-


Monthly Budget Summary
Total monthly income.................... 2,070
Expenses (including HP & secured debts). 1,624
Available for debt repayments........... 446
Monthly UNsecured debt repayments....... 257
Amount left after debt repayments....... 189

Personal Balance Sheet Summary
Total assets (things you own)........... 135,000
Total HP & Secured debt................. -116,350
Total Unsecured debt.................... -16,200
Net Assets.............................. 2,450

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

marcsshell

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2 Could you get rid of one of the cars?

Monthly Income Details
Monthly income after tax................ 2070
Partners monthly income after tax....... 0 Does your wife work?
Benefits................................ 0 Are you entitled to any child benefits?
Other income............................ 0
Total monthly income.................... 2070

Monthly Expense Details
Mortgage................................ 577
Secured/HP loan repayments.............. 185
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 109
Electricity............................. 75 Price comparison to see if you can get you gas and electric down. I did pay around £70 for both gas and electricity combined
Gas..................................... 75
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 0
Mobile phone............................ 30 Look at getting sim only deal
TV Licence.............................. 14
Satellite/Cable TV...................... 28
Internet Services....................... 0
Groceries etc. ......................... 150 Is this correct?
Clothing................................ 50
Petrol/diesel........................... 80
Road tax................................ 0
Car Insurance........................... 25
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0 Should have this
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 80 Seems quite high.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1624


Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 135000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 109000...(577)......4.3 Could you get a lower rate? Again I changed rate recently and saved around£50 pm
Hire Purchase (HP) debt ...... 7000.....(149)......0<
(Unnamed debt).................350......(36).......0
Total secured & HP debts...... 116350....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................10900.....215.......6.9
Virgin ........................1900......25........0
Halifax .......................1700......17........0
Overdraft .....................1700......0.........0
Total unsecured debts..........16200.....257.......-


Monthly Budget Summary
Total monthly income.................... 2,070
Expenses (including HP & secured debts). 1,624
Available for debt repayments........... 446
Monthly UNsecured debt repayments....... 257
Amount left after debt repayments....... 189

Personal Balance Sheet Summary
Total assets (things you own)........... 135,000
Total HP & Secured debt................. -116,350
Total Unsecured debt.................... -16,200
Net Assets.............................. 2,450

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/font][/QUOTE]

ClaretBob

Hi,

Thanks for your feedback. I can't switch my mortgage to a new deal yet. It's ran on to the standard rate but due to fairly high ltv the fixed rates are higher than the standard. Will look in as soon as poss.

My mobile phone runs out in September and won't be renewed so that will go.

Entertainment at 80 for the month, that's for the 4 of us, maybe a dinner out once a month and bits and bats here and there. Is that a lot?

My wife does work part time, by the time she pays her car, bills and childcare. She has nothing to contribute unfortunately

Thanks

ClaretBob

Sorry missed some of your points. Unfortunately we do need 2 cars, we work in opposite directions and she needs a car to be able to do the school run and nursery drops.

I should also note that my wage figure is net after deductions. I currently pay 151 to student loan, and 243 as childcare direct to nursery.

My student loan payment should end in October.

[Deleted User]

ClaretBob wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 2070
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2070

Monthly Expense Details
Mortgage................................ 577
Secured/HP loan repayments.............. 185
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 109 - If this is over 10 months, switching to 12 months will reduce it to £90-83.
Electricity............................. 75 - This seems high. Try a comparison site gor a better deal.
Gas..................................... 75 - This seems high. Try a comparison site gor a better deal.
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 0
Mobile phone............................ 30 - How many phones?
TV Licence.............................. 14
Satellite/Cable TV...................... 28 - Get rid ASAP, and go Freeview/Freesat.
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 50
Petrol/diesel........................... 80
Road tax................................ 0
Car Insurance........................... 25
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0 - You need something in here, especially as you are a householder.

Total monthly expenses.................. 1624


Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 0 - Two cars, and they're not worth anything :huh:
Other assets............................ 0
Total Assets............................ 135000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 109000...(577)......4.3
Hire Purchase (HP) debt ...... 7000.....(149)......0<
(Unnamed debt).................350......(36).......0
Total secured & HP debts...... 116350....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................10900.....215.......6.9
Virgin ........................1900......25........0
Halifax .......................1700......17........0
Overdraft .....................1700......0.........0
Total unsecured debts..........16200.....257.......-


Monthly Budget Summary
Total monthly income.................... 2,070
Expenses (including HP & secured debts). 1,624
Available for debt repayments........... 446
Monthly UNsecured debt repayments....... 257
Amount left after debt repayments....... 189

Personal Balance Sheet Summary
Total assets (things you own)........... 135,000
Total HP & Secured debt................. -116,350
Total Unsecured debt.................... -16,200
Net Assets.............................. 2,450

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

Are Virgin, Halifax and the overdraft really 0%?

Dobbibill

ClaretBob wrote: »

Monthly Budget Summary
Total monthly income.................... 2,070
Expenses (including HP & secured debts). 1,624
Available for debt repayments........... 446
Monthly UNsecured debt repayments....... 257
Amount left after debt repayments....... 189
[/i]

If your SOA is correct then you should not be faced with the OD being maxed out, it should be improving by this much each month.

Now you have something to work with, keep a spending diary and see if there is anything you have missed on your SOA like parking, coffee or a sandwich at work, picking up bread/milk on the way home. The little things add up so quickly, it's surprising.

Don't worry, it's rarely spot on first time, but it does give you a good starting base.

The only other thing I would add is if/when you look to change providers for anything use TCB. I have saved loads doing car insurance, home insurance etc.