£20k Debt Including SOA

LousyBanker

Hi


I'm a long time lurker on this forum and finally feel the need to reach out for some support.


Due to a sequence of poor choices when I was younger I find myself £20k in debit at the age of 27.


I was living with parents up until I bought a house with my partner in November last year. Since then I've found it hard to manage the financial commitments of both my existing debts and the added cost of being a homeowner. My disposable income has near enough diminished.


What would my options be going forward? One of the problems is one of my creditors is also my employer. Therefore I would feel reluctant to reach out to them in case it jeopardies my employment.


I have attached a SOA below, at the moment I am paying the mortgages and insurances whereas my OH is paying all others bills as well as running her car. It equates to a 50/50 split of our joint expenses.



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1350
Monthly Expense Details
Mortgage................................ 433.5
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 92
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25.86
Contents insurance...................... 0
Life assurance ......................... 23.56
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 844.92

Assets
Cash.................................... 0
House value (Gross)..................... 103500
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 103500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 100000...(433.5)....0
Total secured & HP debts...... 100000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
TSB Loan.......................12563.....326.5.....7.2
HSBC Loan......................7558......128.1.....9.9
HSBC Credit Card...............95.49.....5.........0
Total unsecured debts..........20216.49..459.6.....-

Monthly Budget Summary
Total monthly income.................... 1,350
Expenses (including HP & secured debts). 844.92
Available for debt repayments........... 505.08
Monthly UNsecured debt repayments....... 459.6
Amount left after debt repayments....... 45.48
Personal Balance Sheet Summary
Total assets (things you own)........... 103,500
Total HP & Secured debt................. -100,000
Total Unsecured debt.................... -20,216.49
Net Assets.............................. -16,716.49
Created using the SOA calculator at stoozing
Reproduced on Moneysavingexpert with permission, using other browser.

RecentPost

is it a joint mortgage?

does your partner know about your debts?

Grumpelstiltskin

You ay your OH pays the other bills yet you show £100 for groceries, what does this cover?

Also £100 for entertainment, you can't afford that.

EssexHebridean

Well done for a start for realising that you need some input - becoming a homeowner for the first time can be a financial culture shock for a lot of people, even without debts, so it's not surprising you're finding managing things a bit of a struggle. Let's see what we can do about helping you fix your situation. Comments on the SOA in red as usual.
[QUOTE=LousyBanker;75921130

I have attached a SOA below, at the moment I am paying the mortgages and insurances whereas my OH is paying all others bills as well as running her car. It equates to a 50/50 split of our joint expenses.



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1350
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1350
Monthly Expense Details
Mortgage................................ 433.5
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 So all these bills are at zero because your OH is paying them - correct?
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60 This is high - when is your contract up? Once it is, keep your phone and go to a cheap SIM only plan.
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100 Assume this is a 50% of your spend? Is that accurate though or are there takeaways, the odd work lunch bought, a quick bite to eat while out and about at the weekend forgotten?
Clothing................................ 0 Nope - there needs to be something here, even if yo are well served for most things, budget *something* to allow for essentials. (And set it aside each month too - it builds up and then when something is needed there is enough in the bank to pay for it)
Petrol/diesel........................... 0 Again - car costs entirely covered by your OH?
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 92 Is this fixed or can yo reduce it at all?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25.86 Hopefully this includes contents cover too?
Contents insurance...................... 0
Life assurance ......................... 23.56
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Not realistic...or so your OH will tell you on Valentines Day/their Birthday/A.NOther significant date...
Haircuts................................ 10
Entertainment........................... 100 You can make a saving here - cutting this back by 50% would mean you could start getting some money stashed into savings against hitting those loans with lump sum payments, if allowed.
Holiday................................. 0
Emergency fund.......................... 0 Between you do you actually have at least a basic emergency fund saved up? It's a good idea to add to it even if so, but if not you need to work together on this - £1000 is the minimum I'd usually suggest for a homeowner with a car.
Total monthly expenses.................. 844.92

Assets
Cash.................................... 0
House value (Gross)..................... 103500
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 103500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 100000...(433.5)....0
Total secured & HP debts...... 100000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
TSB Loan.......................12563.....326.5.....7.2
HSBC Loan......................7558......128.1.....9.9
HSBC Credit Card...............95.49.....5.........0 How long is the 0% on this?
Total unsecured debts..........20216.49..459.6.....-

Monthly Budget Summary
Total monthly income.................... 1,350
Expenses (including HP & secured debts). 844.92
Available for debt repayments........... 505.08
Monthly UNsecured debt repayments....... 459.6
Amount left after debt repayments....... 45.48 Hmmm...squeaky
Personal Balance Sheet Summary
Total assets (things you own)........... 103,500
Total HP & Secured debt................. -100,000
Total Unsecured debt.................... -20,216.49
Net Assets.............................. -16,716.49
Created using the SOA calculator at stoozing
Reproduced on Moneysavingexpert with permission, using other browser.





[/QUOTE]

Well the great news is that you ARE making ends meet - the bad news of course is that there's a few odds and ends in there which you're not accounting for currently, and it's that which will trip you up.

Is there any option at all to increase your income do you think? Second job or more hours in the one you have? Any chance of a promotion in the pipeline perhaps? Because you pay for a small number of monthly outgoings there is obviously less available to play with.

Another option here could be whether your OH would be willing to help you out by paying a higher proportion of the monthly outgoings - I get that it['s not a great thing to have to ask, but it could be worth a go. You could even agree to subsequently pay them back but without the high-ish interest rates that are currently hammering you.

In terms of actually attacking the debts themselves, the 0% card will at least be coming down month on month which is good - just make sure you don't get caught with the 0% rate ending as even on a small balance you don't want to be paying interest. The loans are obviously as you know the big issue here. Now this is not usually something that we'd suggest, but let's be a bit left field about this. Get yourself onto the MSE Credit Club and see what it suggests about your current eligibility for any loans. Now we're not talking about consolidation here, as such, as you won't be looking to extend the time you'll be paying things off for at this stage - but see if there's a chance you could reduce the interest rate for that second loan in particular. So you're looking for the same term as you currently have remaining on that, but for a lower interest rate - don't do anything on applying as yet, but see what's out there.

Sncjw

Is it correct tho list the mortgage in both expenses and also the secured debt area. Isn’t this doubling your debt on the soa?

JayRitchie

Hi OP

Could you clarify - is the mortgage £100k total or is this your share of the total? Whose name is the house in?

How do you travel to work? Travel costs seem low?

theoretica

Do you have a spare room in your new house? Renting it out for a while could really help.

wjr4

What exactly does your life assurance cover? Does it also cover critical illness?