My Debts

EssexHebridean

SOA comments in red as usual:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1699.41
Partners monthly income after tax....... 1324.76
Benefits................................ 0 You need to put the CB figure in here, and account elsewhere for the children's expenses as well - that way you know where you stand and can see if you're over-or under budgeting for what an activities etc they do are costing
Other income............................ 0
Total monthly income.................... 3024.17

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 725
Management charge (leasehold property).. 0
Council tax............................. 150 If this is currently paid over 10 months remember you have two months now of no payment - so set that money straight aside off the debt before it just gets spent. From the start of the new financial year it may be easiest to spread it over 12 monthly payments as this makes budgeting easier.
Electricity............................. 80 This and the gas are both on the high side - check you're on the best deals (although as I suspect both your credit histories are shot to pieces you may have issues changing supplier) and read Martin's guides to reducing energy use also.
Gas..................................... 80 If anyone in the house has bare arms or legs right now, turn the thermostat down a couple of degrees...
Oil..................................... 0
Water rates............................. 60 If this is metered then can you reduce usage at all?
Telephone (land line)................... 20
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 400 You could probably shave this a bit
Clothing................................ 25
Petrol/diesel........................... 150 Read Martin's guide on driving economically
Road tax................................ 13.59 re you paying this and the insurance monthly? If so you're paying a premium to do so - if there is any way you could budget for setting money aside towards paying next year's bill on at least one of them that would be a good plan.
Car Insurance........................... 31.46 see above
Car maintenance (including MOT)......... 20 Sure this is realistic? You have an oldish car I assume, and you are doing a fair bit of mileage - Remember to allow for things like servicing, tyres, screenwash, wiper blades... I don't think you're going to cover that lot for £20 a month I'm afraid.
Car parking............................. 0 You never pay to park anywhere?
Other travel............................ 0 Nobody ever jumps in a taxi, or gets a bus?
Childcare/nursery....................... 0
Other child related expenses............ 0 See comments above re this needing to be budgeted
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 You're sorting this now, hopefully!
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 41.66
Haircuts................................ 10 This covers all 5 of you?
Entertainment........................... 50 £25 each for you & your partner, and this covers everything as well as the occasional treat with the kids etc?
Holiday................................. 0 You're definitely not planning any trips away at all until the debt is gone?
Emergency fund.......................... 0 You need something here.
Total monthly expenses.................. 1876.71


Assets
Cash.................................... 0 So where is the money you save for presents, car expenses, clothes etc? That should be shown here.
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 300 You need a long term plan in place for replacement of this
Other assets............................ 0
Total Assets............................ 300

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Total unsecured debts..........0.........0.........- This needs completing.


Monthly Budget Summary
Total monthly income.................... 3,024.17
Expenses (including HP & secured debts). 1,876.71
Available for debt repayments........... 1,147.46
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,147.46 Except it's a long way below that - the minimum payments on 42k are going to pretty much wipe that out, at a guess, possibly worse.

Personal Balance Sheet Summary
Total assets (things you own)........... 300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 300 Errr...no. -£42,049.38

I'm honestly quite concerned that at the moment you truly don't have a handle on the situation you and your family are in. You need to get EVERYTHING down in black and white - that's the only way you're actually going to even begin to start tackling this.

determined_new_ms

Madfool wrote: »

The children are 2, 8, and 10

My partner receives CB £192.40 a month, we are very strong believers in that goes on the children and nothing else! That's why the SOA reflects 0 on children's expense as the CB is used for that and nothing else. It works really well for us, and allows us to budget.

I do this. Nearly all expenses relating to our child comes out of the CB which I have in an account. I've been using the cb like this for the past 4 years and there is always a small surplus that's in her account. We keep the costs low while she's young so the surplus helps her out when she's not so inexpensive :money:

Madfool

ev8 wrote: »

Honestly, if you have an excessive spending problem, spending excessively at the end of the year is only asking for more trouble IMO.

The flood gates will be open and it's easy for someone who has an addictive personality to slip into old habits once that happens.

Also, do none of you, three kids and two working adults, not have a mobile phone? And all five only spend £25 a month on any clothing. Then the children also have 0 expenses at all?

Is this fully accurate?

Agree'd i have a very bad addictive personality. I would like to think i have this under control now though.

Myself and my partner have mobiles, but they are business phones so no expense to us.

Children's clothing etc is covered by CB, so i left it out of the SOA

EssexHebridean wrote: »

I can see your thinking, but you need to accept that those other years, when you - as you state yourself - made life hell - those are gone and you can't get them back. You can't "buy back" those years now by throwing money at everyone - particularly when that money will still be off the back - to be 100% frank about it - of using "other people's money" thanks to the debts. I KNOW that this probably feels really harsh - but what on earth do you think you'd get for a (for example) £2,600 christmas that you can't get for a £1300 one? Gold plated turkeys? More food than you have space for in the fridge? Big shiny gadgets that any kids old enough to understand realise all too well are guilt offerings (Trust me, they really will) and the ones not old enough to understand grow out of in a few months anyway? Scale things down a bit, look for experiences and good memories which don't need to cost a fortune and will be far more appreciated over time, and above all don't lose the momentum on paying off the debt - it will be quite INCREDIBLY hard to go back to pulling belts in afterwards, don't underestimate that. You can still have a wonderful Christmas but budget for it across a year rather than leaving two months to pick up the full bill.

People make good memories - not money.

This made me chuckle at the thought of Golden Turkey's, but at the same time i 100% get what you mean. What is done is done, it's time to move forward as you're right i can't change the pass and shouldn't think that spending loads of money on the family is a way to 'fix' it. I will rethink the Christmas budgeting and bring it right down to a realistic figure. So i can throw even more at the bills.

anna_1977 wrote: »

I totally agree that the CB should go on the kids but I think you need to include everything including that and the debts in order to get an accurate SOA. Personally I think you'll struggle to throw £1k a month at the debt, I'm not sure it's totally realistic. But massive good luck

Do you mind me asking why you're determined to go it alone? Have you contacted someone like Stepchange for advice, even if you don't use them I think it's worth running all the figures past them.

I have contacted Stepchange in the pass, they suggested bankruptcy at the time which i wanted to avoid. I really want to do this alone (as much as possible) as i put us in the situation so i'm compelled to be the one who fixes it.

EssexHebridean wrote: »

Yes - right now. Never mind replying to any more posts - hop over to the main MSE site, read the guide on their about pegging down the costs of insurance, and sort yourself a policy. This is really quite ridiculously important - and needs doing before you go to sleep tonight.

Your first job then is to find out what the minimum payments are on everything and enter those into the SOA. Brace yourself too. That surplus is about to take one heck of a dive.

Sorted Contents insurance out with MoreThan, £6.68 a month

ev8 wrote: »

Also, how on earth can you just up and stop paying bills for two months because Christmas is coming?

Aren't they going to be knocking on your door asking for the money to your bills?

I wouldn't stop paying 'bills' the normal monthly household bills are still to be paid, i would have just been using the excess. I don't worry about people knocking on the door, as it already happens. As pointed out by another use though this is not the best idea going forward so i will not be entertaining that plan any longer.

I will update my SOA to reflect new changes, but honestly i do NOT pay any of my debts currently and have not done for the last 18 months+ this is why it's left blank and how my excess is so high, this is how i will snowball the debts also.

ev8

Madfool wrote: »

Agree'd i have a very bad addictive personality. I would like to think i have this under control now though.

Myself and my partner have mobiles, but they are business phones so no expense to us.

Children's clothing etc is covered by CB, so i left it out of the SOA

What did you do for a mobile before this month?

BIB, I don't ever think an addiction is that under control in that it's completely gone. It can always spark back, and if you have trouble with excessive spending, allowing this to come back in for a couple of months isn't the best idea.

It's kind of why in AA they don't suggest a month of drinking as a reward.

But it seems you are starting to rethink that.

Madfool

EssexHebridean wrote: »

SOA comments in red as usual:

I'm honestly quite concerned that at the moment you truly don't have a handle on the situation you and your family are in. You need to get EVERYTHING down in black and white - that's the only way you're actually going to even begin to start tackling this.

Thank you i will go through the SOA again when i get home from the office. Honestly though, i won't be updating the SOA to reflect payments to creditor's as i currently don't pay anything and have not done for 18 months+ and i don't intend on starting to pay them anything either until the Rent, C/T and Partner's CC are cleared as i have planned out. If i start entering payment agreements with them then i will have almost no excess and the 3 priorities will take years to clear.

ev8

Madfool wrote: »

I wouldn't stop paying 'bills' the normal monthly household bills are still to be paid, i would have just been using the excess. I don't worry about people knocking on the door, as it already happens. As pointed out by another use though this is not the best idea going forward so i will not be entertaining that plan any longer.

I will update my SOA to reflect new changes, but honestly i do NOT pay any of my debts currently and have not done for the last 18 months+ this is why it's left blank and how my excess is so high, this is how i will snowball the debts also.

But won't you have to start paying the minimum now you are employed? Or will you leave them until next year?

Do you not have to sort something out with them? Because do you have an excess when you have to pay off this debt?

BIB, maybe you don't, but perhaps your partner or kids do and would rather that not happen and have a lighter amount of gifts?

ev8

Madfool wrote: »

Thank you i will go through the SOA again when i get home from the office. Honestly though, i won't be updating the SOA to reflect payments to creditor's as i currently don't pay anything and have not done for 18 months+ and i don't intend on starting to pay them anything either until the Rent, C/T and Partner's CC are cleared as i have planned out. If i start entering payment agreements with them then i will have almost no excess and the 3 priorities will take years to clear.

Have they not asked you to come up with a payment plan/agreement already?

LoulaBelle

Put £10 away every Friday or £40 - £50 each month towards xmas - that's what i'm doing - husbands self employed so I'm just putting £10 away a week towards xmas - I also have a co-op card so that everytime I use it - it adds on points or money earnt then use that for food for Christmas - you don't need to go overboard.

EssexHebridean

Madfool wrote: »

Thank you i will go through the SOA again when i get home from the office. Honestly though, i won't be updating the SOA to reflect payments to creditor's as i currently don't pay anything and have not done for 18 months+ and i don't intend on starting to pay them anything either until the Rent, C/T and Partner's CC are cleared as i have planned out. If i start entering payment agreements with them then i will have almost no excess and the 3 priorities will take years to clear.

There aren't three priority debts - there are two. The Council Tax (In theory you can go to prison for non payment of that - unlikely but definitely not one to mess with) and the Rent (losing the roof over your head would be pretty unpleasant. From there on EVERYTHING needs to be tackled in order of the interest rate it's charging, disregard who "owns" the debt. That, and only that, in your position is the quickest and most efficient way of getting the debt cleared.

You said earlier that your partner is 100% behind you on working together to get this all paid off - which is great, but in the light of that in particular the idea of it costing you far more money than it needs to because you have a misguided sense that you have to pay off "her debt" first is just crazy. You're already going to be paying thousands and thousands of pounds in interest - but you want to add yet more to that? :eek:

Annie35

I'm just going to say it, you sound like you're having some sort of manic episode! As a wife of a 'superhero/I can fix it all' now 1 month into bankruptcy let me tell you, YOU CANT FIX IT*

"It matters not if ballifs come".. err does she not mind then? Your kids not mind when bailiffs want to size up the PlayStation & won't leave the drive?? When you have 1 hour to gather your stuff or they change the locks?? What about when they take attachment of earnings & take your choice away, honestly how long do you think you can keep running? She'll be ok scrimping then watching you "have a blow out"? Yeah she's gonna love that!

Serious consider bankruptcy, the relief of stopping running is **** amazing! You will get your buzz & it'll be over in 3 years) let it go, start again.

Your wife can service her own (not terrible amount of) debts on her income, she can fix herself, you telling her she doesn't need to you'll fix it all while your possessions are chunked on the street 'can't pay we'll take it away stylee' won't cut it.