Help needed

autumn2012_2

I have been on here for about 2 years off and on and I was doing well getting my debt down and feeling much better. Earlier this year my husband lost his job and was out of work for 6 weeks. He then had to go away for 8 weeks training which meant although he had accommodation and travel covered he still had the expense of food etc whilst there which living from a hotel for 8 weeks is expensive anyway because he had to go away for 8 weeks I had to leave my job as they wouldnt keep it open for me for that long. Im self employed now and my income varies however we are back upto the 24k mark now. I know what I need to do but my head isnt in the right place to do it. Christmas approaching and birthdays galore, my kids are needing clothes and shoes! I need a kick up the backside!!

Sanctioned_Parts_List

*kick*

Do you want to make an SOA and have advice, or do you want sympathy for hotel living? (he says while stuck in a hotel in the second most boring city on Earth)

National_Debtline

Hi Autumn2012,


People often find debt overwhelming and sometimes getting started is the hardest part. A SOA is the best place to start, factor in a budget for Christmas and clothes for the kids etc. but try and be practical. Consider what you can spend rather than what you would like to spend. It can sometimes be harder to start dealing with things if you have convinced yourself you 'can't' have something - you can - it's just that things need to be in proportion. There are loads of tips online, and on the forum, about keeping the cost of Christmas down, have a look at what might suit you to help you.


Once you have your new SOA you can weigh up your choices, and think about whether you are going to negotiate to repay the debts yourself, or use a free DMP to help or would you be able to consider insolvency options. Good luck,


Laura
@natdebtline

autumn2012_2

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

Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 1460
Benefits................................ 420
Other income............................ 0
Total monthly income.................... 2280

Monthly Expense Details
Mortgage................................ 275
Council tax............................. 110
Electricity............................. 80
Gas..................................... 40
Water rates............................. 50
Telephone (land line)................... 17.40 (includes internet, in contract)
Mobile phone............................ 40
TV Licence.............................. 12
Groceries etc. ......................... 260
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 3
Car Insurance........................... 63
Car maintenance (including MOT)......... 30
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 20
Buildings insurance..................... 17
Life assurance ......................... 25
Presents (birthday, christmas etc)...... 40
Total monthly expenses.................. 1252


Assets
Cash.................................... 1000
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 1....6500
Other assets............................ 0
Total Assets............................ 112000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 64200........275........0
Secured Debt.........................0
Total secured & HP debts............-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Santander Loan............5750......230...............
Hitachi Loan.................4800.......260................
Car..............................6650........220...............
My Barclaycard...........600........20................29.9
Hubby Barclaycard......2650.......80..............18.9
Santander CC..............2130......25................18.9
MBNA..........................2100.......25...............27.9

Total unsecured debts........................- 24680


Monthly Budget Summary
Total monthly income.................... 2280
Expenses (including HP & secured debts). 2102
Available for debt repayments........... 172

Sanctioned_Parts_List

Actually you're in pretty good order.

First, take a breath - your husband went away for a while and your expenses increased. This is what the emergency buffer is for... but as it's still there, you didn't use it as intended and borrowed instead. So:

i) Use the £1000 cash savings to pay off your Barclaycard (£600) and £400 of the MBNA card. Don't close one of the cards and let this function as your emergency (boiler go boom) buffer.
ii) Increase your payments to MBNA by the £172 unaccounted money - effectively £200/month. This will be paid off in 10 months.
iii) Everything else put into stoozing.com's snowball calculator. I reckon you'd pay Hubby's BC, then Santander, then MBNA for credit cards. Then rebuild your cash emergency buffer. Then tackle the loans.

autumn2012_2

Thanks! I think I'm in a terrible mess but that makes sense! I just need to buckle down and do it now!