Need Advise please?

Jules2054

taff,
I find your outgoings are high for 1 person.


My thoughts

Your BB is high at £44. This includes tv and landline
Is water rates @ £2.94 correct Yes, i get a reduction due to my financial situation

Electric @ £91 can you get this lower ? Only slightly. Im all electric, so no gas bill!
Nothing for buildings or contents Ins ? I did have these, but too expensive and would rather pay extra on my mortgage to pay less interest.
Nothing for clothing ? I know this seems odd, but I have loads of clothes for all weathers! :rotfl:

Jules2054

s that enough to downsize and pay your debt off? There are a quite a few factors you're going to have to take into account.
Ask yourself if the debt is increasing not decreasing, Decreasaing can you see a need for further loans or CC spending No [intentional or not, so e.g. you're spending on the CCs to live each month, or you're using them for one off big purchases] Im not using the CCs anymore, just paying them off
Your SOA shows a surplus every month, is this actually the case? Yes, thats why i wondered if it would be better to pay off the mortgages as they have interest on them, my CCs, dont! My CCs and mortgages can be paid off totally in 6yrs time with my work pension


Asking these questions because you're not currently working, and your benefits form your income.
There's not point in remortgaging if you won't be able to pay the repayments But the repayments on a lower interest rate plus paying extra each month with the extra money i have left each month is enough! Ive checked! and again, given the length of time before you retire Only 6 yrs and it can all be paid off! [ although some mortgages will continue past retirement age depending] then you have to ask yourself whether it would be better for you to stop trying to service the debts and default and do a DMP. However, your LTV is going to be insanely high so that's good. 17%
Looking at your repayment schedule, it looks as if you are already doing a DMP of some sort? Your repayments on the 10k loan are £10 a month? Is this right? Correct!

Jules2054

JayRitchie wrote: »

Do you get a lump sum with the pension in 6 years time? Yes Just under £28000,What will your annual income be with the pension? Around £8000

Are the credit cards interest free - in which case when does the interest free term end?

No interest as they are DMP

Jules2054

elsien wrote: »

No medical expenses at all, given that you are disabled?[ B]My meds are all covered and i have all the aids etc that i need. I can apply for the disabled facitlitties grant if needed for future stuff.[/B]
Your SOA says you have a £200 surplus each month. It that the case in reality?

Yes thats correct

Bluebell1000

Jules2054 wrote: »

Nothing for buildings or contents Ins ? I did have these, but too expensive and would rather pay extra on my mortgage to pay less interest.
[/B]

This is a massive risk. I really think home insurance is something you should arrange ASAP. It's not a huge expense. We pay less than £100 a year for buildings and contents cover, after cashback. If your house burns down, you would have no house, no possessions. You would still need to repay the mortgage, and you would have no-where to live, because there would be no money to rebuild the house. Please reconsider this!

Jules2054

Bluebell1000 wrote: »

This is a massive risk. I really think home insurance is something you should arrange ASAP. It's not a huge expense. We pay less than £100 a year for buildings and contents cover, after cashback. If your house burns down, you would have no house, no possessions. You would still need to repay the mortgage, and you would have no-where to live, because there would be no money to rebuild the house. Please reconsider this!

I do agree with you...just trying to get everything paid off quicker!
Ill have another look to see if i can get a better deal, but this does mean that ill have less to overpay off my mortgages and debts.

trex227

£200 for groceries seems a little high for 1 person. If I exclude cat food and litter our groceries for the month is only a bit more than yours but there’s 2 of us. And I’m not particularly thrifty when it comes to food, if I wanted to I could probably feed both of us on £120 a month.

enthusiasticsaver

Jules2054 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1042
Other income............................ 0
Total monthly income.................... 1042

Monthly Expense Details
Mortgage................................ 317
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 8
Electricity............................. 91
Gas..................................... 0
Oil..................................... 0
Water rates............................. 2.94
Telephone (land line)................... 0
Mobile phone............................ 6
TV Licence.............................. 13.2
Satellite/Cable TV...................... 0
Internet Services....................... 43.99
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 30
Road tax................................ 20.56
Car Insurance........................... 25
Car maintenance (including MOT)......... 15
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..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12.5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
window cleaner.......................... 2.5
bank fee................................ 1
Total monthly expenses.................. 788.69


Assets
Cash.................................... 500
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 121000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 19287....(317)......2.68
Total secured & HP debts...... 19287.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
wescot.........................1411......5.........0
amazon.........................67.6......33.8......0
cls............................10712.....10........0
pavillion......................709.......5.........0
Total unsecured debts..........12899.6...53.8......-


Monthly Budget Summary
Total monthly income.................... 1,042
Expenses (including HP & secured debts). 788.69
Available for debt repayments........... 253.31
Monthly UNsecured debt repayments....... 53.8
Amount left after debt repayments....... 199.51

Personal Balance Sheet Summary
Total assets (things you own)........... 121,000
Total HP & Secured debt................. -19,287
Total Unsecured debt.................... -12,899.6
Net Assets.............................. 88,813.4

Are all those unsecured debts on arrangements? As there is no interest being charged and if the creditors are not hassling I would continue to offer token payments and then ask for a full and final payment once your pension payment is paid. In the meantime overpay the mortgage as that is the only debt incurring interest and it is the most important. Can you start by upping the monthly payment to £350 when the amazon is repaid in 2 months time?

Do not consolidate or downsize. I would imagine the reason you have a relatively high interest rate is because you are not working so consolidating will not remedy that and I cannot see what the advantage would be unless you can get a lower rate. Have you approached your existing lender to see if they can get you a better deal? They do not tend to go through the whole credit scoring/application stage so that would work in your favour as being dependent on benefits is not attractive to lenders.

I would also put something in emergency savings as although you have £500 you have a very low value car so that might need work doing on it or replacing fairly soon. Do you need the car or does your disability mean that that is a priority? I think you should be saving at least £50 a month and any extra money you have at the end of the month pay off the mortgage.

Re the rest of your soa. No insurance is false economy. It is relatively cheap and if your house burnt down you would be in deep trouble. It is also a condition of any mortgage you insure the property so if they found it there is no insurance they could withdraw the mortgage and ask you to repay it in full now. Your groceries is high as is the internet charges but you should have something in entertainment.

-taff

Jules2054 wrote: »

But the repayments on a lower interest rate plus paying extra each month with the extra money i have left each month is enough! Ive checked!

In that case, you need a good broker to remortgage with. So again, best to ask on the mortgage board.

sazaccount

Please look at getting building and contents cover, a family friends house was gutted by a fire caused by a glass window decoration causing a rug in front of it to catch fire. No insurance still having to pay for everything even though no one can live in the house and the amount to replace items, structural work etc is tens of thousands