Am I a terrible person?

Karonher

Jackmessedup said:

TheAble said:

You should really include your mortgage and car payments on the SOA. It's not a clear picture without.

I have updated it

It does not seem to have been updated - still showing expenses as £1,585.

Grumpy_chap

Jackmessedup said:

Hi everyone, 

I have done my SOA. The most difficult thing I have ever done. I 'll be honest - I am a 40 year old man and I have sat and cried. It's awful and I am so ashamed. God knows how it's come to this. 

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 1

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 3408

Partners monthly income after tax....... 1311

Benefits................................ 0

Other income............................ 280[b]

Total monthly income.................... 4999[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 114

Electricity............................. 176 includes overpayment as I was in arrears. Will drop to around £120

Gas..................................... 0

Oil..................................... 0

Water rates............................. 40

Telephone (land line)................... 24

Mobile phone............................ 100 - 3 phones

TV Licence.............................. 14

Satellite/Cable TV...................... 35

Internet Services....................... 25

Groceries etc. ......................... 300

Clothing................................ 50

Petrol/diesel........................... 160

Road tax................................ 6

Car Insurance........................... 60

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 120

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 15

Pet insurance/vet bills................. 22

Buildings insurance..................... 18

Contents insurance...................... 0

Life assurance ......................... 36

Other insurance......................... 0

Presents (birthday, christmas etc)...... 50 - not sure if this is right. We normally just buy whatever

Haircuts................................ 20

Entertainment........................... 200 wasn't sure what to put here so I picked £200!

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 1585[/b]

[b]

Assets[/b]

Cash.................................... 1200

House value (Gross)..................... 215000

Shares and bonds........................ 0

Car(s).................................. 4800

Other assets............................ 0[b]

Total Assets............................ 221000[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

loan 1.........................6900......132.......6.9

CC1............................12400.....256.......6.9

CC2............................4568......98........6.9

next...........................600.......56........0

creation ( wife)...............4800......135.......19.9

Tesco..........................4600......125.......19.9

Very (nasty)...................2400......128.......50

CC 0%..........................6800......120.......0

CC 5...........................2850......68........16.9

CC4 * nasty one)...............4900......185.......27

CC3 ( nasty one)...............9700......297.......24[b]

Total unsecured debts..........60518.....1600......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,999

Expenses (including HP & secured debts). 1,585

Available for debt repayments........... 3,414

Monthly UNsecured debt repayments....... 1,600[b]

Amount left after debt repayments....... 1,814[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 221,000

Total HP & Secured debt................. -0

Total Unsecured debt.................... -60,518[b]

Net Assets.............................. 160,482[/b]

Hi Jack,

Well done on getting this far.  I am not an expert on these matters - there are others far more experienced than I - but here are some observations I made:

1. Mortgage payment is not listed.  Nor is the mortgage balance listed in the personal balance sheet.
2. Are you living in an all-electric house?
3. Land Line £24, Cable TV £35, Internet £25.  Total £84.  I have a Virgin package at £44.  Opportunity to save.
4. Mobile phone £100 for 3.  I have a phone owned outright and SIM-only contract at £9 for unlimited talk, unlimited text, 10 Gb data.  No need to have a phone costing £20 or more per month.  My phone is around the £150 mark and more than everything I need.
5. Car costs.  Do you need 2 cars?  Are the costs listed for both cars?  There must be some maintenance cost, unless this is rolled into the finance package.  In your other thread, you say 60 miles each way to work.  5 days/week = 600 miles/week.  50 mpg = £12 gallons/week.  £6/gallon = £72 per week.  Is £160 per month for petrol correct?

Just some initial ideas for areas to check and possible opportunities to make efficiencies.  Every efficiency release £ to reduce debt.

Jackmessedup

thanks for all of the posts. Our electicity cost is actually for both electric and gas - I am not sure of the breakdown. 

I will look again at our fuel costs but I am definitely not spending that much. 

Jackmessedup

Would it be wise to use an empty Barclaycard at 20%apr to clear our very which is 50%apr?

TheAble

Jackmessedup said:

Would it be wise to use an empty Barclaycard at 20%apr to clear our very which is 50%apr?

I don't think so. Just focus on getting it paid off soonest then close the account.

Jackmessedup

TheAble said:

Jackmessedup said:

Would it be wise to use an empty Barclaycard at 20%apr to clear our very which is 50%apr?

I don't think so. Just focus on getting it paid off soonest then close the account.

My thought was pay it off using the credit card. Close the very account and then clear the balance with 20% interest instead of 50%??

Sea_Shell

Jackmessedup said:

Would it be wise to use an empty Barclaycard at 20%apr to clear our very which is 50%apr?

If you have an "empty" credit card, as well as all the balances, TBH I think the best thing to do would be to cut it up to avoid temptation!!     Do you mean completely empty, or is it one of the ones on the list, with a small balance?

Is the Very account still being spent on?    As really that card should be cut up too.    

Where are you with limits on each of the cards?   Maxed out or available balance remaining.   


Which of those cards do you use for your essential everyday spends (shopping, petrol etc)?

elsien

Jackmessedup said:

TheAble said:

Jackmessedup said:

Would it be wise to use an empty Barclaycard at 20%apr to clear our very which is 50%apr?

I don't think so. Just focus on getting it paid off soonest then close the account.

My thought was pay it off using the credit card. Close the very account and then clear the balance with 20% interest instead of 50%??

Sounds feasible to me. But only if you do just use it to clear the very balance, close the very account and don’t use the card to rack up any more spending on top. 

TheAble

Jackmessedup said:

TheAble said:

Jackmessedup said:

Would it be wise to use an empty Barclaycard at 20%apr to clear our very which is 50%apr?

I don't think so. Just focus on getting it paid off soonest then close the account.

My thought was pay it off using the credit card. Close the very account and then clear the balance with 20% interest instead of 50%??

I just think a different frame of mind is needed - one where you throw as much as possible at the debts rather than tinkering with interest rates. Looking at your surplus you could, at a push, pay the Very off in one month.

Grumpy_chap

Jackmessedup said:

Would it be wise to use an empty Barclaycard at 20%apr to clear our very which is 50%apr?

What will that save in total liability?  Don't forget to consider any initial balance transfer fee.