Help needed - no judgement please

SuzyN

Hi,

not sure where to begin but long story short for various reasons my finances are out of control. I can "technically" live on what I earn but run out of money every month and always end up resorting to my credit cards. I pay the minimum payments for them all but I will never ever pay them off and pay nearly £1000 on them alone a month - the interest rates I have discovered tonight are horrific. Mostly 29-34%.

I don't know where to start. I need help. I have not cut items out of my statement below e.g. I know that someone will tell me my cleaner needs to go but many things are tied into contracts etc...

Its a nightmare. Can someone look and see if they have any advice. I was thinking of contacting my credit card companies and asking for a break from interest or a lower interest rate to prevent me defaulting.

One card nearly always defaults as it gets collected on 29th and I don't get paid to the 30th/31st so it gets collected on 1/2 as a re run. Another card is £300 over its limit. Barclaycard no longer charge £12 every month but its just getting bigger over the limit.

I have declared simply everything below - I have added in childcare costs that I don't pay atm but they will be paid from September onwards so this is why I need to sort things out. This is the items for myself and husband.

Thanks for your thoughts,

SN

Number of people in my household
Adults - 2
Children under 18 - 2

Income - Monthly
Wages / Salary - 2200
Wages / Salary (Partner) - 2000
Child Benefit - 137

Total Income - 4,337.00
!
Outgoings
Monthly
Mortgage(s) - 966
Council Tax - 72
Food / Housekeeping - 500
Electricity - 55
Gas - 55
TV Licence / Rental - 13.00
Hire Purchase / Conditional Loan - 380.00 (x2 cars - 1 PCP and 1 finance)
Clothing - 50
Telephone - 70
Travel / Car Costs / Petrol - 320
School Meals - 100
Insurances - 239
Health Costs / Prescriptions - 30
Childminding - 400
Gas Finance (installation) - 67
Halfords - 37
Credit Union Loan - 166
Phone Apple Loan - 44 (0%)
Phone Apple Loan - 44 (0%)
Sky - 52 (tied in)
Ipad - 31 (tied in)
Netflix - 8
iTunes music - 15 (children use)
Cleaners - 125
Overdraft Interest - 50 (overdraft 3600 all used)
Cat Food - 30.00
Dog Food - 35
Vet fund - 50.00

Total Outgoing - 4,004.00
!


Money for Creditors

Monthly Total Income - 4,337.00
Total Outgoing - 4,004.00

Money For Creditors - 333.00
!

SuzyN

These are the bills I HAVE to pay then see what I have left over. Does not include things like cars needing serviced, new school uniforms and shoes etc, food, petrol (we use a lot to get to work) and the new childcare costs from Sept. I usually live on about 700/900 a month.


MORTGAGE - original 119,351.13 806.08 4.74 svr Household Monthly total - 965.66
MORTGAGE - sec loan 23,628.43 159.58 4.74 svr Household Totals - 142,979.56

Next Directory 2435.46 122 22.9% Credit Card Unsecured Debt
MBNA LIMITED 868.51 29.53 29.9% Credit Card Unsecured Debt
Santander UK PLC 868.83 12.62 30.24% Credit Card Unsecured Debt
BARCLAYCARD 2321.45 52.35 28.9% Credit Card Unsecured Debt
MBNA LIMITED 2686.94 63.40 17.9% Credit Card Unsecured Debt
CAPITAL ONE 55.46 £5.00 34.08% Credit Card Unsecured Debt
RBS PLC TESCO 3451.31 92.35 24.09% Credit Card Unsecured Debt
Bank of Scotland 3569.58 94.87 22.2% Credit Card Unsecured Debt
BARCLAYCARD 14,336 321.52 25.9% Credit Card Unsecured Debt
BARCLAYCARD Egg 4471.48 132.09 26.9% Credit Card Unsecured Debt

Totals!!!8230; 35065.19 owed 925.73 (monthly)

Santander (car 1) 171.40 Finance Secured Debt
Santander (car 2) 211.17 Finance Secured Debt
Gas Finance - Barclays 66.67 Finance Unsecured Debt
Halfords Finance 36.43 Finance Unsecured Debt
Credit Union Loan 166.00 Finance Unsecured Debt
Apple Phone (Barclays) 43.95 Luxury Unsecured Debt
Apple Phone (Barclays) 43.95 Luxury 739.57 Unsecured Debt

TV LICENSING £12.37 Household
DOE RATES 71.61 Household
SSE Electric 53.00 Household
SSE GAS 50 Household
CAR TAX 1 12.25 Household
CAR TAX 2 2.62 Household
CAR TAX BIKE 7.43 Household

Life Insurance £75.90 Insurance
Motorbike Ins 17.12 Insurance
Home Ins 50.58 Insurance
Pet Ins 14.33 Insurance
Car Ins both 80.46 Insurance

SKY 52.00 Luxury
H3G Ipad 31.00 Luxury
netflix 7.99 Luxury
ITUNES 14.99 Luxury
Phone 17.00 Luxury
Phone 20.08 Luxury
BT (BB/Ph) 31.99 Luxury
Cleaner 124.00 Luxury

OVERDRAFT INT 1 40.64 INTEREST
OVERDRAFT INT 2 6.00 INTEREST

TOTAL OUTGOINGS - 3662.71

ReadingTim

Well, you've successfully differentiated between the luxuries and the necessities, which proves an initial stumbling bock for many.

You probably also know that the luxuries have to go, as you simply can't afford them. If they're tied into contracts, you need to haggle and try and reduce - claim you're having trouble meeting the payments and see if there's anything the providers can do.

With regard to the insurances, shop around for the ones you're legally required to have (car, bike) or are very sensible to have (buildings). With regard to the rest, take a long hard look as to whether they're actually necessary at present - whether you're getting anything from them, or are likely to make a claim in the near future - I'm thinking of life and pet insurance here.

Unfortunately, there's no magic bullet or instant fix - getting out of this is going to take time and require rather significant changes to your lifestyle which aren't going to be easy. Good luck

Ilona

No one will judge you, but they will tell you where you can cut down on your spending. You won't like it very much because you will want to maintain the lifestyle you already have. I'm afraid you either suck it up or carry on as you are.

You have luxuries on your list which need to be ditched. Money can be saved on your food bill, Two cars and a bike? Is the bike a hobby? You can't afford a cleaner, clean your own house. There's a whole list of luxuries that you can get rid of.

You will have to be brutal to get yourself out of this. It's common sense really, sort out the needs and wants, stop spending on wants. Big lifestyle changes would sort it out.

ilona

Larac

Hi - something you will need to get a 'grip' of is what is actually causing the 'overspend'. I noticed you have a secured loan on your house which suggests you consolidated and then went on to 'spend'. Looking at your 'finances' reminds me of me six years ago. (I too had a secured loan on the house). Best advice is to contact one of the free charities and discuss your options (Stepchange, Payplan or CAP). I went the DMP route and it made me sort out my budget also the relationship around 'wants' and 'needs'. I found DMP quite a shock to the system - but something I clearly needed to do.

National_Debtline

Hi Suzy and welcome to the forum


It would be really helpful if you could complete and post a statement of affairs (SOA). Your original list of income and outgoings has included debt payments under your household outgoings e.g. credit union, gas finance, Halfords and Apple loans. The first thing to establish is whether you can afford your normal household outgoings, before we come on to consider your debt payments.


You can complete a SOA here http://www.stoozing.com/calculator/soa.php. The layout will make it a little easier for us to understand your situation, just remember to format it for MSE.


Best wishes


Susie
@natdebtline

SuzyN

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................ 2200
Partners monthly income after tax....... 2000
Benefits................................ 137
Other income............................ 0
Total monthly income.................... 4337

Monthly Expense Details
Mortgage................................ 807
Secured/HP loan repayments.............. 544
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 72
Electricity............................. 56
Gas..................................... 55
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 37
TV Licence.............................. 13
Satellite/Cable TV...................... 52
Internet Services....................... 17
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 320
Road tax................................ 24
Car Insurance........................... 81
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 400
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 50
Buildings insurance..................... 25
Contents insurance...................... 25
Life assurance ......................... 76
Other insurance......................... 18
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 50
Itunes.................................. 15
Netflix................................. 8
Ipad.................................... 31
Total monthly expenses.................. 3531


Assets
Cash.................................... 0
House value (Gross)..................... 95000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 110000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 119352...(807)......4.74
Secured Debt.................. 23629....(160)......0
Hire Purchase (HP) debt ...... 7032.....(172)......0<
Car Red .......................9328.....(212)......0
Total secured & HP debts...... 159341....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Next directory.................2436......122.......22.9
Mbna ..........................869.......30........29.9
Santander .....................869.......13........30.24
Overdraft 2 (other)............100.......6.........0
Overdraft 1 (zero a/c..........3600......41........18.9
Barclays phone zero %..........396.......44........0
Barclays phone zero %..........396.......44........0
Credit union...................9960......166.......0
Halfords zero %................222.......37........0
Gas finance zero 0%............2400......67........0
Barclaycard ...................4472......133.......26.9
Barclaycard ...................14336.....322.......25.9
Bank of Scotland...............3570......95........22.2
Tesco..........................3452......93........24.09
Capital one....................56........5.........34.08
Mbna...........................2687......64........17.9
Barclaycard ...................2322......53........28.9
Total unsecured debts..........52143.....1335......-


Monthly Budget Summary
Total monthly income.................... 4,337
Expenses (including HP & secured debts). 3,531
Available for debt repayments........... 806
Monthly UNsecured debt repayments....... 1,335
Amount short for making debt repayments. -529

Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total HP & Secured debt................. -159,341
Total Unsecured debt.................... -52,143
Net Assets.............................. -101,484

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.[/font

SuzyN

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................ 2200
Partners monthly income after tax....... 2000
Benefits................................ 137
Other income............................ 0
Total monthly income.................... 4337

Monthly Expense Details
Mortgage................................ 807
Secured/HP loan repayments.............. 544
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 72
Electricity............................. 56
Gas..................................... 55
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 37
TV Licence.............................. 13
Satellite/Cable TV...................... 52
Internet Services....................... 17
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 320
Road tax................................ 24
Car Insurance........................... 81
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 400
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 50
Buildings insurance..................... 25
Contents insurance...................... 25
Life assurance ......................... 76
Other insurance......................... 18
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 50
Itunes.................................. 15
Netflix................................. 8
Ipad.................................... 31
Total monthly expenses.................. 3531


Assets
Cash.................................... 0
House value (Gross)..................... 95000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 110000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 119352...(807)......4.74
Secured Debt.................. 23629....(160)......4.74
Hire Purchase (HP) debt ...... 6767.....(172)......6.9<
Car Red .......................10137....(212)......9.9
Total secured & HP debts...... 159885....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Next directory.................2436......122.......22.9
Mbna ..........................869.......30........29.9
Santander .....................869.......13........30.24
Overdraft 2 (£1/day)...........100.......6.........0
Overdraft 1- zero a/c..........3600......41........18.9
Barclays phone zero %..........396.......44........0
Barclays phone zero %..........396.......44........0
Credit union...................9960......166.......12.6
Halfords zero %................222.......37........0
Gas finance zero 0%............1914......66........0
Barclaycard ...................4472......133.......26.9
Barclaycard ...................14336.....322.......25.9
Bank of Scotland...............3570......95........22.2
Tesco..........................3452......93........24.09
Capital one....................56........5.........34.08
Mbna...........................2687......64........17.9
Barclaycard ...................2322......53........28.9
Total unsecured debts..........51657.....1334......-


Monthly Budget Summary
Total monthly income.................... 4,337
Expenses (including HP & secured debts). 3,531
Available for debt repayments........... 806
Monthly UNsecured debt repayments....... 1,334
Amount short for making debt repayments. -528

Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total HP & Secured debt................. -159,885
Total Unsecured debt.................... -51,657
Net Assets.............................. -101,542

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

ReadingTim

SuzyN wrote: »

Statement of Affairs and Personal Balance Sheet


Monthly Expense Details
Mortgage................................ 807
Secured/HP loan repayments.............. 544
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 72
Electricity............................. 56
Gas..................................... 55
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15
Mobile phone............................ 37
TV Licence.............................. 13
Satellite/Cable TV...................... 52
Internet Services....................... 17
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 320
Road tax................................ 24
Car Insurance........................... 81
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 400
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 50
Buildings insurance..................... 25
Contents insurance...................... 25
Life assurance ......................... 76
Other insurance......................... 18
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 50
Itunes.................................. 15
Netflix................................. 8
Ipad.................................... 31
Total monthly expenses.................. 3531

So, where do YOU think you can make some savings in here?

Grumpelstiltskin

One thing that jumps out is the costs of all the insurances you are paying. eg. £50 per month buildings and contents.



You need to go through all of these, for instance what are the other insurances?

Ilona

ReadingTim wrote: »

So, where do YOU think you can make some savings in here?

I think Suzy has posted her SOA here because she is hoping that others might make some suggestions. If she knew the answer to your question, she wouldn't be here.

ilona