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Feeling a bit hopeless & in need of advice

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Anon_12345
Anon_12345 Posts: 13 Forumite
10 Posts
in Debt-free wannabe
I have spent weeks researching different debt consolidation options as I have credit card debt pushing the £20k mark which just seems to be going nowhere. I have been keeping on top of transferring them around to 0% to keep interest down but i am already paying around £250 a month just on min payments which I know will never clear the balance.  I feel like I don't know where to go next, I am so annoyed I let it get to this point.  I did have a loan offer but it was against the house which I am nervous to do, I really need a plan of action but just have no idea where to start - need motivation to know it is possible to see a light at the end of the never ending debt tunnel.
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Comments

  • fatbelly
    fatbelly Posts: 22,856 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Hi. Securing non-priority debt against the house is rarely a good idea so well done for avoiding that.

    Similarly debt consolidation has a long and glorious history of not working. Fine in theory but generally just leads to re-consolidation and re-re-consolidation.

    You need to look at this from a fundamental level and study the numbers. We recommend posting a statement of affairs using this calculator.

    https://www.lemonfool.co.uk/financecalculators/soa.php

    Please format for mse


  • Anon_12345
    Anon_12345 Posts: 13 Forumite
    10 Posts
    Great thank you, I will take a look at that now and will post.

  • Anon_12345
    Anon_12345 Posts: 13 Forumite
    10 Posts
    Household Information[/b]
    Number of adults in household........... 3
    Number of children in household......... 2
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2238
    Partners monthly income after tax....... 0
    Benefits................................ 195
    Other income............................ 0[b]
    Total monthly income.................... 2433[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1072
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 151
    Electricity............................. 70
    Gas..................................... 75
    Oil..................................... 0
    Water rates............................. 22
    Telephone (land line)................... 0
    Mobile phone............................ 90
    TV Licence.............................. 13
    Satellite/Cable TV...................... 89.5
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 20
    Car Insurance........................... 24.5
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 75
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 28
    Contents insurance...................... 0
    Life assurance ......................... 39
    Other insurance......................... 20
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 2039[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 0[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 281462...(1072).....2.24[b]
    Total secured & HP debts...... 281462....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Virgin.........................5372.79...56........0
    Tesco..........................5623.99...58........0
    MBNA...........................5487.35...61........0
    Next...........................535.......30........NaN
    Very...........................869.46....58.6......NaN
    Barclaycard....................4239.86...130.......0[b]
    Total unsecured debts..........22128.45..393.6.....-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,433
    Expenses (including HP & secured debts). 2,039
    Available for debt repayments........... 394
    Monthly UNsecured debt repayments....... 393.6[b]
    Amount left after debt repayments....... 0.4[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -281,462
    Total Unsecured debt.................... -22,128.45[b]
    Net Assets.............................. -303,590.45[/b]
  • TheAble
    TheAble Posts: 1,676 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Mortgage feels a bit punchy relative to income. Have you taken a pay cut since you got that?

    Very frugal on the groceries but sky needs to go and the mobiles need to be cut drastically.

    But on the whole feels like income may be the issue. Maybe consider some additional work if little scope to increase in your current position.
  • Anon_12345
    Anon_12345 Posts: 13 Forumite
    10 Posts
    I was a bit unsure how to put in, the mortgage monthly amount shown is the full amount but I pay £800 towards this - into a joint account with my partner, should I have just shown that on the SOA?
  • Jude57
    Jude57 Posts: 730 Forumite
    Ninth Anniversary 500 Posts Name Dropper
    If you're doing a solo budget just enter your own income (salary/benefits) and then enter only your expenditure, leaving off your OH's contribution.

    It would be helpful to know who the third adult is and whether they contribute financially. Also, from the above SOA, it looks as though you're paying most household costs so it would be useful to know why that is. Don't feel you have to give lots of personal information, just the bare facts as it will help to give context to your situation, then posters can tailor their advice.
  • Anon_12345
    Anon_12345 Posts: 13 Forumite
    10 Posts
    That makes sense, I will re-enter just the details I am paying to give a clearer picture, I have also put the figures in the wrong way round for the adults / children, it is just 2 adults & 3 children. Let me update that and re-post that might make a bit more sense then, thank you for the advice.
  • Anon_12345
    Anon_12345 Posts: 13 Forumite
    10 Posts
    Hopefully this is more accurate - my partner & I have a joint account which covers the mortgage / gas & electric and other utilities & council tax / Sky TV - I put in £800 per month and my partner puts in £950 as he earns a bit more than I do.  The debt is solely mine though that I am wanting to clear, apologies for confusion, its my first time completing one of these.

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2238
    Partners monthly income after tax....... 0
    Benefits................................ 195
    Other income............................ 0[b]
    Total monthly income.................... 2433[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 800
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 55
    Electricity............................. 35
    Gas..................................... 30
    Oil..................................... 0
    Water rates............................. 22
    Telephone (land line)................... 0
    Mobile phone............................ 90
    TV Licence.............................. 13
    Satellite/Cable TV...................... 50
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 20
    Car Insurance........................... 24.5
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 75
    Other child related expenses............ 65
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 28
    Contents insurance...................... 0
    Life assurance ......................... 39
    Other insurance......................... 20
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 1616.5[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 0[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 281462...(800)......2.24[b]
    Total secured & HP debts...... 281462....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Virgin.........................5372.79...56........0
    Tesco..........................5623.99...58........0
    MBNA...........................5487.35...61........0
    Next...........................535.......30........NaN
    Very...........................869.46....58.6......NaN
    Barclaycard....................4239.86...130.......0[b]
    Total unsecured debts..........22128.45..393.6.....-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,433
    Expenses (including HP & secured debts). 1,616.5
    Available for debt repayments........... 816.5
    Monthly UNsecured debt repayments....... 393.6[b]
    Amount left after debt repayments....... 422.9[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -281,462
    Total Unsecured debt.................... -22,128.45[b]
    Net Assets.............................. -303,590.45[/b]
  • comeandgo
    comeandgo Posts: 5,930 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If your £800 covers utilities and council tax then you don’t need to include anything in the separate headed items. Do you never have a haircut, buy any presents?  I know when my kids were little I seemed forever to be buying gifts for the parties they had been invited to.
  • Jude57
    Jude57 Posts: 730 Forumite
    Ninth Anniversary 500 Posts Name Dropper
    @Anon_12345 don't worry, we've all been new to filling out a SOA and not many get it right first time. Usually the best thing to do is go through at least a couple of months worth of bank statements, so you can see where your money actually goes, then you can start with the current facts rather than what would be the ideal spending situation.

    You'll get lots of good advice here but sorting your situation out won't be painless. Just remember, no one here is sitting in judgement; it's just that we've been there and know how hard it can be to see the wood for the trees.
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