Help, outgoings are more than incoming :(

gembo69

Hi everyone.
Before I start, I’m one of these ’we’ll cross that bridge when we get to it’ kind of people, but it’s getting way out of control now and I need to stop and look at what I’m doing!
Husband and I both work full time and we have a 6 year old daughter. The mortgage is in husbands name and no equity in it yet.
My unsecured debt equates to 35k and husbands 40k.
Husband works in a bank so not sure if debt management or Iva would affect his job.
From my calculations salary and child benefit is £3200 with outgoings equating to £3400, that’s not including money for food petrol or living.
Really don’t know what is the best option, any help would be very much appreciated. Thanks.

[purplesignup][/purplesignup]

Scilly

I think your best starting point is to complete a SOA* (format it for MSE) so the helpful folk on here can see your outgoings & get a clearer picture of your situation. Then we/ they will be able to give you better advice.
*Statement of affairs ... I don’t have the link but pop it into the search box & im sure it’ll pop up!
All the best!

kram

Hi gembo69,

Post your SOA here so people could give some advice?

Here's the link:

http://www.stoozing.com/calculator/soa.php

You could also look at the debt remedy tool on the stepchange website, its anonymous with no commitment.

Good luck

K

zippygeorgeandben

Yup - post that SOA and don't cut any corners!

kram

Hi gembo69,

It would be worth finding out more & clarifying your husband's position at the bank & how it would be affected by debt management.

You could contact the CAB, Stepchange or where he works might provide an anonymous helpline.

Don't let this hold you back get the ball rolling asap.

fatbelly

That's a lot od debt but a healthy income. I've subscribed to this thread so will comment publicly rather than by responding to the pm you sent me.

gembo69

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 1615
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 3147

Monthly Expense Details
Mortgage................................ 304
Secured/HP loan repayments.............. 50
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 10
Mobile phone............................ 100
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 10
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 125
Road tax................................ 3
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 25
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 5
Contents insurance...................... 5
Life assurance ......................... 18
Other insurance......................... 9
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1462


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 103000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 80000....(304)......0
Secured Debt.................. 20000....(50).......0
Total secured & HP debts...... 100000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan...................9750......225.......0
Natwest loan...................8750......225.......0
Natwest loan...................6750......325.......0
Mam loan ......................5000......200.......0
Friend loan....................2600......200.......0
Sister loan....................2400......500.......0
Nationwide.....................1500......50........0
Halifax overdraft..............1000......40........0
Natwest overdraft..............1000......0.........0
Studio.........................300.......20........0
Tesco card.....................1750......50........0
Tesco card.....................750.......25........0
New look.......................100.......5.........0
Next...........................1000......25........0
Capital one....................200.......6.........0
Mbna...........................1500......40........0
Mbna...........................2000......60........0
Ratesetter.....................3750......115.......0
Very...........................700.......50........0
Barclaycard ...................4250......120.......0
Barclaycard....................6250......180.......0
Halifax card...................500.......15........0
Halifax card...................500.......15........0
Natwest card...................2600......50........0
Natwest card...................7500......120.......0
Natwest card...................7500......190.......0
Total unsecured debts..........79900.....2851......-


Monthly Budget Summary
Total monthly income.................... 3,147
Expenses (including HP & secured debts). 1,462
Available for debt repayments........... 1,685
Monthly UNsecured debt repayments....... 2,851
Amount short for making debt repayments. -1,166

Personal Balance Sheet Summary
Total assets (things you own)........... 103,000
Total HP & Secured debt................. -100,000
Total Unsecured debt.................... -79,900
Net Assets.............................. -76,900

It’s actually scarier than I thought. Feel like I want to curl up and die

gembo69

The 20000 secured loan was a ‘help to buy’ loan when we got the house. We have until 2021 to pay it back. We don’t pay anything for it yet.

fatbelly

After five years you will be required to pay an interest fee of 1.75% of the amount of your Help to Buy shared equity loan at the time you purchased your property, rising each year after that by the increase (if any) in the Retail Prices Index (RPI) plus 1%. The loan itself is repayable after 25 years or on the sale of the property if earlier.

So a small payment from 2021 and repay in full 20 years later.

For now you have 1685 per month available to service 80k of debt and the contractual payments are 2850.

We're not going to liberate an extra 1200 per month from your budget. I think bankruptcy is too risky. You don't have equity now but you might have in 3 years.

A debt management plan (assuming interest frozen) will take 4 years and I don't think an IVA has many advantages in your situation. The 4 years dovetails in with the secured loan payments so I'd recommend a stepchange or payplan dmp as soon as possible.

Fosterdog

gembo69 wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 1615
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 3147

Monthly Expense Details
Mortgage................................ 304
Secured/HP loan repayments.............. 50If this isn’t being saved then don’t include it as an outgoing
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 135 if this over over 10 months ask to change it to 12 monthly payments of £112.5 instead
Electricity............................. 50combined with gas this is high, shop around for better deals and minimise your usage
Gas..................................... 50
Oil..................................... 0
Water rates............................. 45 also quite high, if on a metre be more mindful of usage, if not, consider one.
Telephone (land line)................... 10
Mobile phone............................ 100this is ridiculously high, if you are out of contracts switch to sim only for around £10pm if still in contract lower your tariffs to save something
TV Licence.............................. 13
Satellite/Cable TV...................... 50 this combines with the landline and internet is over £800 a year, it’s a luxury you can’t afford right now. Shop around for deal, lower packages and maybe get rid of the tv package and use nowtv or Netflix instead.
Internet Services....................... 10
Groceries etc. ......................... 300this is very high for just two adults and one child, could easily be cut in half or even less. Head over to the old style board for ideas
Clothing................................ 25 stop buying new clothes. Wear what you have and only replace essentials. Local buy and sell groups are great for bundles of kids clothes for your growing child.
Petrol/diesel........................... 125
Road tax................................ 3
Car Insurance........................... 50
Car maintenance (including MOT)......... 0 there really should be something here
Car parking............................. 25
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 5
Contents insurance...................... 5
Life assurance ......................... 18
Other insurance......................... 9what is this for? Is it needed?
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10 go less often and consider colleges with cheaper student cuts
Entertainment........................... 50 too high while in so much debt, look into free things to do in your area
Holiday................................. 0
Emergency fund.......................... 0 you really should have something here
Total monthly expenses.................. 1462


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 103000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 80000....(304)......0
Secured Debt.................. 20000....(50).......0
Total secured & HP debts...... 100000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan...................9750......225.......0 are these all really 0%
Natwest loan...................8750......225.......0
Natwest loan...................6750......325.......0
Mam loan ......................5000......200.......0
Friend loan....................2600......200.......0
Sister loan....................2400......500.......0
Nationwide.....................1500......50........0
Halifax overdraft..............1000......40........0
Natwest overdraft..............1000......0.........0
Studio.........................300.......20........0
Tesco card.....................1750......50........0
Tesco card.....................750.......25........0
New look.......................100.......5.........0
Next...........................1000......25........0
Capital one....................200.......6.........0
Mbna...........................1500......40........0
Mbna...........................2000......60........0
Ratesetter.....................3750......115.......0
Very...........................700.......50........0
Barclaycard ...................4250......120.......0
Barclaycard....................6250......180.......0
Halifax card...................500.......15........0
Halifax card...................500.......15........0
Natwest card...................2600......50........0
Natwest card...................7500......120.......0
Natwest card...................7500......190.......0
Total unsecured debts..........79900.....2851......-


Monthly Budget Summary
Total monthly income.................... 3,147
Expenses (including HP & secured debts). 1,462
Available for debt repayments........... 1,685
Monthly UNsecured debt repayments....... 2,851
Amount short for making debt repayments. -1,166

Personal Balance Sheet Summary
Total assets (things you own)........... 103,000
Total HP & Secured debt................. -100,000
Total Unsecured debt.................... -79,900
Net Assets.............................. -76,900

It’s actually scarier than I thought. Feel like I want to curl up and die

I’ve added comments in red on where some savings could be made but even with them all cut back it’s only likely to save £300-£400 a month so still not enough to cover the shortfall. It’s obviously more difficult because of your husbands job, you really do need to get clarification on if it will affect him and how.

Can either of you take on a second part time job? How essential is the car? Would using public transport be possible? You could potentially save over £100 a month more without the car and use money from selling it to clear your smaller debts or pay a chunk off higher interest ones.

Timetopullmysocksup

Hi, don't want to appear rude but what have you spent the majority of the money on? The reason I'm asking is because if its been on 'stuff' I would set to selling as much of the 'stuff ' as possible. It may be time consuming but that's how you are going to have to 'earn' some more money for your repayments.

I wish you luck on your journey and I know these guys on here will give you all the help they can.