Financial pickle, advise needed

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  • EssexHebridean
    EssexHebridean Posts: 21,371 Forumite
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    Even if you don’t post the SOA here, we would strongly advise that you out it together anyway as it’s a really useful tool for getting a budget worked out. The advantage of posting it here is that we can often find savings that the originator of it has spotted, and also things that should be being budgeted, but aren’t! (You will note all the things that other posters are spotting here already just from your basic list - the SOA calculator has prompts for lots of things that you may well not have even considered! 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
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  • fatbelly
    fatbelly Posts: 20,481 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    edited 31 January at 10:52AM
    The question that the soa would answer is whether the contractual payments are affordable on the nonpriority debts - the loans and credit cards.

    If they are then you can manage the debts individually starting with overpaying the most expensive which is the overdraft.

    If they are not then you walk away from that overdraft, start a new current account with an unconnected bank, and use a debt management plan with the old o/d just becoming another debt.

    There is no appropriate insolvency option and you must not do an IVA if you are intending to move.

    Edit: Just noticed in your post you said you had 20k equity but youy figures show more than that. What are we missing? That's not a secured loan, is it?
  • 13thlegion
    13thlegion Posts: 55 Forumite
    First Anniversary Name Dropper First Post
    Even if you don’t post the SOA here, we would strongly advise that you out it together anyway as it’s a really useful tool for getting a budget worked out. The advantage of posting it here is that we can often find savings that the originator of it has spotted, and also things that should be being budgeted, but aren’t! (You will note all the things that other posters are spotting here already just from your basic list - the SOA calculator has prompts for lots of things that you may well not have even considered! 
    And to add to this already fantastic advice (as usual), the point is so you can find out what you really have, and where there are leaks that can be stopped.

    It's best to take time and work things out by looking at expenditure over a lengthy time, typically a year. This has the benefit of taking feelings and thoughts out of it and making it a simple maths question. Pretend you are looking at someone else's numbers and what friendly advice would you give them etc.

    Another benefit of taking a year (or as long as you have records for up to that) is that it will show things like Xmas or holiday spending. Then it's a simple case (though sometimes painful at first) of dividing that Xmas figure by 12 to give an accurate figure for a monthly SOA. For more regular things like fuel you can see what the typical or average usage is rather than relying on either a cheaper or more expensive single month example. 

    There is a solution to every problem, and you can do it.
  • MEM62
    MEM62 Posts: 4,748 Forumite
    First Anniversary Name Dropper First Post
    @Ukdawdler87 As already advised, the SoA is key to understanding your situation - for you as well as anyone else.  It would also be useful for you to analise the spending that got you into debt.  The amount and timeframe is too short to suggest that this was just household bills.  I would also suggest that you reconsider moving until you have improved your financial situation.  With that level of debt you really do not want the added expense of moving costs.  
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