SOA help please

mickyc79

hello...hope i'm putting this on the right board...I've been reading through some of your entries and find myself in a similar position. Please see below my SOA and please offer any advise and share experience if youve been in a similar position.

Currently we are just meeting our monthly payments, but once the 0% deals fall off a few of the cards shortly, we will be in real trouble! I dont think there's anywhere where we can cut costs as we're on all the best deals we an get at the moment and only have basic BT Tv package along with broadband. Both our mobiles are new contracts so have at least 2 years to run on them...

I'm starting to lose sleep over whats coming and havent fully addressed this with my wife yet, i know i have to ,but we've had a lot of personal stuff going on the last year or so, and i think bringing up these debts could be too hard for her to take...

I've spoken to step change who advised the credit union would reject any protected trust deed, which i'm wary of anyway as i dont want to lose any of the equity in the house (joint mortgage). Is there a better way for me to clear my debts (around £58000 of total, my wife only has about 2K all in on her cards).

20K in cards has been built up over the last 2 years, mostly on holidays, garden refurb, christmas and birthday presents for our 2 kids....we suffered a miscarriage 2 years ago and we were debt free at the time, but i found myself spending on lots of things for the house and garden and holidays hen i knew i shouldnt have been. I had lots of 0% offers at the time for 40months and thought i would be able to pay them back no problem in that time...didnt work out like that!

The credit union loan was actually for debt consolidation just before the miscarriage, so cant go back to them to help again when i'm now in a worse position than i was then!

Just got a new loan for a new kitchen, so once thats installed we wont need any credit for the forseeable future anyway, so not too worried about my credit rating taking a hit...more concerned about shielding my wife from the stress....Please offer any helpful advice or criticism...I so want to be debt free again and more than willing to pay it all back, i have spent it after all, but once the interest from the cards kicks in i wont be able to service it at the level required.

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.................... 1

Monthly Income Details
Monthly income after tax................ 1712
Partners monthly income after tax....... 650
Benefits................................ 137
Other income............................ 120
Total monthly income.................... 2619

Monthly Expense Details
Mortgage................................ 324
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 70
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 19
Mobile phone............................ 55
TV Licence.............................. 15
Satellite/Cable TV...................... 15
Internet Services....................... 19
Groceries etc. ......................... 350
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 27
Car Insurance........................... 100
Car maintenance (including MOT)......... 25
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 ......................... 27
Other insurance......................... 15
Presents (birthday, christmas etc)...... 60
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1511


Assets
Cash.................................... 0
House value (Gross)..................... 119000
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 119800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 61000....(324)......2.56
Total secured & HP debts...... 61000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
mbna...........................5300......67........0
mbna...........................5000......53........0
mbna...........................1600......55........22.9
credit union...................27500.....481.......10
hitachi........................7500......181.......15.9
halifax........................1300......25........0
barclaycard....................950.......25........0
virgin.........................600.......25........0
virgin.........................4200......42........0
barclaycard....................2900......70........18.9
Total unsecured debts..........56850.....1024......-


Monthly Budget Summary
Total monthly income.................... 2,619
Expenses (including HP & secured debts). 1,511
Available for debt repayments........... 1,108
Monthly UNsecured debt repayments....... 1,024
Amount left after debt repayments....... 84

Personal Balance Sheet Summary
Total assets (things you own)........... 119,800
Total HP & Secured debt................. -61,000
Total Unsecured debt.................... -56,850
Net Assets.............................. 1,950

efes_shareholder

Monthly Income Details
Monthly income after tax................ 1712
Partners monthly income after tax....... 650
Benefits................................ 137
Other income............................ 120
Total monthly income.................... 2619

Monthly Expense Details
Mortgage................................ 324
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 70
Gas..................................... 50
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 19 - Is this needed ?
Mobile phone............................ 55 - Is this Sim only , can you get a cheaper tariff ?
TV Licence.............................. 15
Satellite/Cable TV...................... 15
Internet Services....................... 19
Groceries etc. ......................... 350
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 27
Car Insurance........................... 100- wow this seems high , is it both cars
Car maintenance (including MOT)......... 25
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 ......................... 27
Other insurance......................... 15
Presents (birthday, christmas etc)...... 60
Haircuts................................ 10
Entertainment........................... 0 - this has no allocation ?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1511

UncannyScot

Hi and welcome to the DFW Diaries

Have you looked at the budget planner and snowball calculator available on the main MSE site?

I've not used the snowball calculator myself but I have seen folks using it as a means of prioritising which Debt / Card to pay off first. General advice is to try and clear as much as possible from the ones that you are paying interest on.

Try not to worry about it too much, as there is always a way through (easier said than done, I know).

Personally, I would cut up and cancel each of the cards as I cleared them off and then only keep one of them.

kazwookie

Does the new kitchwen have to be installed? if the old one is still in place, send the new kitchen loan back and cancel the new kitchen.

mickyc79

The old kitchen has been ripped out, so no going back now! The debts are just about manageble just now, but if any emergencies come up, or if i just want to send my wife flowers or something, it leaves me short...this will only hold out until next July when the £5300 MBNA card reverts to 22.9% interest rate which will tip me way over my limit...

We've obviously been living outwith our means, i think in part due to me not wanting to disappoint my wife or kids by ever saying no...:(

Our youngest is starting school in august, so my wife, who currently only works part time, is looking at getting a full time job, so fingers crossed this happens then we can sit down and talk about paying the highest interest ones off. I'm looking for a 2nd job too, but dont want to sacrafice time with my kids because of something ive got us into...

enthusiasticsaver

I think first of all you need to tell your wife. If she is blissfully unaware of the state of your finances then she is undoubtedly not as economical as she could be. You both need to be on the same page.

It is a shame you ripped the old kitchen out as I cannot see any way you can afford to install a new one even if it is already bought presumably on credit. Who is installing it?

You have no emergency savings nor any allocation for entertainment which is unrealistic for 2 children. I think at your level of debt you may need to look at a DMP. Ring stepchange and see what they suggest.

UncannyScot

mickyc79 wrote: »

The old kitchen has been ripped out, so no going back now! The debts are just about manageble just now, but if any emergencies come up, or if i just want to send my wife flowers or something, it leaves me short...this will only hold out until next July when the £5300 MBNA card reverts to 22.9% interest rate which will tip me way over my limit...

We've obviously been living outwith our means, i think in part due to me not wanting to disappoint my wife or kids by ever saying no...:(

Our youngest is starting school in august, so my wife, who currently only works part time, is looking at getting a full time job, so fingers crossed this happens then we can sit down and talk about paying the highest interest ones off. I'm looking for a 2nd job too, but dont want to sacrafice time with my kids because of something ive got us into...

Sometimes though we have to say, "No, sorry, we cannot afford to do it at the moment."
It is difficult, been there and done it and It does NOT mean you are a bad husband and father by saying no.

Agree with ES above that you MUST discuss this with your wife in order to deal with things effectively and most importantly, together, as a family.

mickyc79

Kitchen fitter is being paid from loan we got to do the whole thing...We're going on holiday in October and i don't want to bring it up before then as she will not enjoy our holiday if i do. Will need to wait until after we get back then address it.

We have about 50K equity in the house, so hoping we can talk to the bank about extending the mortgage by maybe 30K....this would clear all the cards and kitchen loan. I'm reluctant to go into a DMP as my credit union loan will be paid off in about 6-7 years and i should have around 6-7K savings built up in the scheme by then.

Using an online calculator, upping my mortgage by 30K, over 20 years, which is current loan term, my monthly mortgage would only be £475. If i could sort that out then i would cut up all my cards and have plenty left over which would mean i wouldn't need to use credit anyway...

All the major jobs have been done to the house (once the kitchen is finished).Got new windows and doors, driveway, loft conversion and landscaped garden. It;s not like i've been gambling or spending the money on drugs, drink or other frivolous things. Its all been spent on the house, holidays for us and the kids and Christmas and birthdays.

After holiday plan is to go to bank to discuss mortgage...if they agree then problem solved...if not then might have to go down the DMP route.

It's a real struggle keeping this to myself as we have a really open relationship otherwise....I just know my wife would freak out and lapse back into depression (i never mentioned my wife has history of this...me too to be honest).

anna_1977

have you paid the holiday in full - seriously think about cancelling it - it seems bonkers to go on holiday with all the debt and getting in more all the time.
You really do need to talk to your wife, I know you don't want to hurt her but the sooner the better.

KxMx

I'd keep a speeding diary as well, every penny spent gets recorded.

Often where you think money is going and where it is actually going are two different things!

When you've kept it for several weeks you can then have a look and see what is reasonable, and what isn't, and make changes accordingly.

beanielou

I would cancel the holiday if you can.
You really cannot afford this.