HElP!!! where do i start

magic_fairies

HI
where do i start?
ok here goes, im in debt to around £17000, which includes
mortgage £5500
Car Loans £4200
Personal Loans £1000
Credit Cards £4000
Family loan £2000

it seems like im digging deeper and its making me ill.
ive looked on these posts and ive realised my debt is probably lower than most but that doesnt mean its any easier.

what the eck do i do.... i cant release equity in my house because im in debt with mortgage, which in all honesty the equity could clear the lot. i cant take out a big loan to pay it off as my credit rating is really bad. where do i turn

please help

datlex

Hi OP, can you clarify re the mortgage is £5500 what you owe on top of your regular monthly payments or is it the balance left. If it is what you owe, that is your priority- forget the other debts temporarily other than token payments. Your home is at risk if you don't get that sorted. The family loan is the lowest priority, they won't want you homeless and you can probably do things for them to help pay it off.

LoulaBelle

Do a Statement of Affairs - someone will post a link

sourcrates

Hi,


Fill this in as accurately as possible, format for MSE when prompted, then we can give constructive advice :


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

magic_fairies

thank you for replying. and yes the mortgage arrears are on top of monthly payments.


on with the SOA. will upload soon


and thank you

magic_fairies

okay so this is my SOA. next month feb 26th my partners income goes up to £1000 should I update that SOA now or next month

I had an idea of possibly getting a secured loan on the house to cover all debts. then in 6 months once credit rating improved, then to remortgage releasing equity to pay off the secured loan. which means a clean slate mortgage and normal bills . is this a stupid idea?

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2


Monthly income after tax............. ... 0
Partners monthly income after tax....... 491
Benefits...........................… .. 920
Other income......................... ... 0
Total monthly income............. ....... 1411

Monthly Expense Details
Mortgage................. .........… ... 100 (whilst were in a mess)
Secured/HP loan repayments...… ...… .. 0
Rent............................. ....... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 60
Gas..................................... 60
Water rates......................... .... 70
Telephone (land line).........… ....... 0
Mobile phone......................... ... 38 (mine and my sons. sim only)
TV Licence............................. . 12.5
Satellite/Cable TV...................... 40 (in contract)
Internet Services...................... . 29 (in contract)
Groceries etc. ......................... 250
Clothing............................. ... 50
Petrol/diesel........................... 180
Road tax................................ 30
Car Insurance........................... 82
Car maintenance (including MOT)......... 6.6
Car parking............................. 25.6
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance....... .............. 28
Contents insurance...................... 22
Life assurance ......................... 25
Other insurance......................... 0
Presents (birthday, christmas etc).. .... 100 (only jan feb n march.. all birthdays done then)
Haircuts................................ 30
Entertainment........................... 0 (we haven't done anything for months)
Holiday................................. 0 ( I wish)
Emergency fund.......................... 0 (from where)
Total monthly expenses................. . 1448.7

Assets
Cash.................................... 0
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 5000 (both financed.)
Other assets............................ 0
Total Assets............................ 135000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 5500.....(100)......0
Total secured & HP debts...... 5500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit cards...................3900......130.......0
car loans......................4200......180.......0
personal loan..................1000......183.......0
family loan....................2000......0.........0
Total unsecured debts..........11100.....493.......-

Monthly Budget Summary
Total monthly income.................... 1,411
Expenses (including HP & secured debts). 1,448.7
Available for debt repayments........... -37.7
Monthly UNsecured debt repayments....... 493
Amount short for making debt repayments. -530.7

Personal Balance Sheet Summary
Total assets (things you own)........... 135,000
Total HP & Secured debt................. -5,500
Total Unsecured debt.................... -11,10
Net Assets.............................. 118,400

kazwookie

You need to put the total for your mortgage, not just the arrears.

Can you up either of your incomes.

magic_fairies

100 is all im paying at the moment on my mortgage.

my partners wage goes up to 1000 in feb.

im currently on the search for work. my kids schools are 3 miles apart so getting them to school is a bit of a challenge when looking for full time work to start at 9 and finishing for 2.30 to collect the kids. getting a childminder would cost much more than I can afford. so currently hoping to pick something up part time,

also this prob sounds pants. but, I get more financial help being at home than I would out working part time. at least until aug until the oldest leaves school.

the youngest goes to high school in sept 2020 so she will be able to walk home safely with her sister. again which opens more doors for time etc.

my thoughts whilst at home is to study to better my chances of better paid work to clear debts

everthing seems so hard and out of my reach

enthusiasticsaver

How come the diesel is so high when it looks like your partner only works part time and you don't work at all? That cannot all be for school pickups and drop-offs. You should be prioritising your mortgage above all else. Your buildings and contents insurance is really high. Are you checking comparison sites to see if you can get that lower? Your presents fund should be cut drastically while you are in this mess but it looks like the biggest issue is 2 cars and the associated costs that go with it and low income. Can you get an evening job or weekend?

Have you defaulted on any of the debts and are the interest rates really 0%? No definitely you should not take out a secured loan, I don't think you will get one anyway. Until your partners income increases I suggest token payments to credit cards and loan and just prioritise the mortgage. You need to put the total balance not just the arrears and this has to be prioritised above all else. If you default on the car loans they may take the cars if it is HP.

ShakeItOff

Car parking, insurance and fuel all look quite high to me, based on your circumstances. I probably spend as much as that on fuel each month with a 60 mile round commute.

Is there a chance to look at saving on presents? I appreciate that is only for a couple of months but would help a little.

£30 for haircuts seems a little high (though I fully confess that I don't have children and don't know how often they need haircuts). If it is that, is there a chance to go to a Supercuts kind of place, or go with an apprentice/trainee as they're usually cheaper.

HampshireH

Is your SOA accurate (aside of missing the full mortgage info)

Only £38 for sim only deals is very high for 2 people (Mine is £6 p/m and its the same package as O2 offered at 28pm on a contract) Does you partner and other 2 children not have phones? If so these need to be included too. But the costs can be cut quite a bit.

Your water bill is £840 annually. Thats also quite high, you can do things around the house to reduce this if you are on meters. Less baths, quick showers, block in the cistern to use less water, ensuring the washing machine has the right amount of laundry in it etc.

Contents insurance more than buildings insurance seems particularly high. Any comparison site is likely to bring this cost down. But definitely look at both

£30 a month for hair cuts - Lots of places do cheap kids cuts could you consider this? Also they don't need monthly cuts so this could be reduced slightly as its currently £360 a year.

I really recommend keeping your receipts and putting them all into a spreadsheet over a few weeks/ a month so you can see the true costs of spending. It may be a packet of sweets for one of the kids or dinner at the chippy but those little extras we don't consider as monthly expenses often show a considerably amount which we didn't know we were spending.

Its a useful exercise in self awareness and understanding on reflection what could have been saved.

We found my partner was spending a fortune on coffee but never really considered it. Every morning he popped to the garage and bought a coffee for the 40mile commute. This has been replaced with a flask saving over £700 a year! (based on 5 days a week £3 per coffee and 47 weeks year). When looking at our costs when we came to saving together, is wasn't something I was aware of so ever knew, but it was a significant amount which has lead to money being put to better use,