Desperately Need Help/Advice

jonesie01

I posted this in the wrong place to start with so apologise for that but didn't know how to move the post.

Please can somebody help me, I'm desperate and don't know where else to turn. I'm ashamed to be posting here, but after years of trying to deal with it realise that I can't do that without any help.

I'm spending around £600 a month more on loans (totalling £30k) than I earn and don't know how to change this. I earn £35 pa pre tax and have an overdraft of £4/5k, I took out a couple of loans to clear a credit card and bank debt I had (I know this was a bad thing) and after being out of work for six months the debt got out of hand. When I did get a new job the salary was less than before so keeping my head above board has become very difficult and I don't know where else to turn.

I'm happy to provide any information at all, please just let me know what information is needed.

I early await any help anybody has to offer.

Thank you

National_Debtline

Hi Jonesie

Welcome to the forum.

A good place to start is completing a statement of affairs to get an overview of your income and expenditure. If you complete the template through this link you can post your results here and I’m sure you’ll get suggestions of where you might be able to cut spending.

www.stoozing.com/calculator/soa.php

If there's still simply no way you can realistically afford the contractual minimum payments on your debts you might need to look into other options, which will depend on your circumstances. For example you might want to look into arranging reduced monthly payments and freezing interest, either by yourself or through a free debt management plan (DMP).

If you contact one of the free debt advice charities you will be able to get full advice on your options based on your situation.

James
@natdebtline

sourcrates

Hi,

If your overspending on credit repayments by £600 a month only one thing you can do, and that's to stop that right away and take stock of the situation.

SOA is a good start, looks certain some kind of debt remedy will be nessessary.

jonesie01

Thank you both for your help. I've filled out the SOA and here's the results:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2247.39
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2247.39

Monthly Expense Details
Mortgage................................ 882
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 122.62
Council tax............................. 120
Electricity............................. 46
Gas..................................... 0
Oil..................................... 30
Water rates............................. 14
Telephone (land line)................... 50.67
Mobile phone............................ 15.34
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 260
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
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..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 32.29
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1685.04


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(882)......3.5
Total secured & HP debts...... 160000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Sainsburys.....................21000.....327.5.....7.9
HSBC...........................11000.....219.......7.9
HSBC...........................1000......37.15.....7.9
VAG............................18878.....359.......0
Total unsecured debts..........51878.....942.65....-


Monthly Budget Summary
Total monthly income.................... 2,247.39
Expenses (including HP & secured debts). 1,685.04
Available for debt repayments........... 562.35
Monthly UNsecured debt repayments....... 942.65
Amount short for making debt repayments. -380.3

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -160,000
Total Unsecured debt.................... -51,878
Net Assets.............................. -211,878

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

lazer-zxr

Just to get the SOA correct, You should include your house value and car value in your assets section. Can you also add when your mortgage tie in expires, as there are better deals out there than 3.5% now.
Also, to put this in perspective, can you advise how many adults in the household, and how many kids?

System

Your house is crippling you, especially with the management fees. Can you downsize?

jonesie01

Is this okay:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2247.39
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2247.39

Monthly Expense Details
Mortgage................................ 882
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 122.62
Council tax............................. 120
Electricity............................. 46
Gas..................................... 0
Oil..................................... 30
Water rates............................. 14
Telephone (land line)................... 50.67
Mobile phone............................ 15.34
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 260
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
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..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 32.29
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1685.04


Assets
Cash.................................... 0
House value (Gross)..................... 230000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 230000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(882)......3.5
Total secured & HP debts...... 160000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Sainsburys.....................21000.....327.5.....7.9
HSBC...........................11000.....219.......7.9
HSBC...........................1000......37.15.....7.9
Sofa...........................2100......43.75.....0
VAG............................18878.....259.......0
Total unsecured debts..........53978.....886.4.....-


Monthly Budget Summary
Total monthly income.................... 2,247.39
Expenses (including HP & secured debts). 1,685.04
Available for debt repayments........... 562.35
Monthly UNsecured debt repayments....... 886.4
Amount short for making debt repayments. -324.05

Personal Balance Sheet Summary
Total assets (things you own)........... 230,000
Total HP & Secured debt................. -160,000
Total Unsecured debt.................... -53,978
Net Assets.............................. 16,022

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

The value of the house is £230,000 and the current mortgage tie expires in 2018, the car is worth £40k although approximately half of it is paid already but it's not in my name.

There's one other adult, my partner, but they're not working at the moment and there's no children

lazer-zxr

Your house and car are expensive. A car can be liquidated more quickly, and if its worth £40k .... by not in your name, do you mean not yours to sell?

jonesie01

lazer-zxr wrote: »

Your house and car are expensive. A car can be liquidated more quickly, and if its worth £40k .... by not in your name, do you mean not yours to sell?

If I can help it I'd rather not liquidate the car or house. The car isn't mine to sell and the house is jointly owned so again I can't do anything with it without getting permission.

Is that the only option I have?

Muttipops

Any chance of partner getting some income or benefits if can't work?
Any chance of getting a lodger if you have a spare room?
You need more income!! And that is what I am trying to see if there is any chance of.
Others will comment on SOA for you, I don't have the time now.


And I know you said you felt ashamed, but don't be, the majority of people in the UK are in a pretty much the same boat as you with debts they can't manage right now!! You might get the odd comment on here from the disapproving dept, but on the whole we are a tame bunch!

jonesie01

andydownes123 wrote: »

Your house is crippling you, especially with the management fees. Can you downsize?

Unfortunately no, it's jointly owned but is a small one bedroom, one office place. When the time comes to change our mortgage it should come down a lot as we'll then be just over a 3rd of the way through