Debt Help

ad2
ad2 Posts: 18 Forumite
Seventh Anniversary 10 Posts Combo Breaker
in Debt-free wannabe
Hi there. I was looking for some advice and hope you can help. We seem to have no spare money left after pay and our bills/expenses are more than our pay. I think we pay around £1000 in credit bills each month. We are up to date with all payments but it seems to be a struggle and we are looking for some help. Sometimes we are having to use more credit to get by. Please could you help and point us in the right direction at all? Thank you
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Comments

  • peb
    peb Posts: 1,950 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I'm not one of the experts here but I don't want to read and run.    The thing seems to be you don't actually know what your finances are so get together your statements, a cup of tea/coffee and fill out the statement of affairs.  Format for mse and post here so that you , and those who help, know the bones of the situation 

    https://www.stoozing.com/soa.php

    If you read round the forum you will see you aren't the first and won't be the last to be in this position.  
  • RAS
    RAS Posts: 34,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I'll guess we'd suggest a Statement of Affairs (budget) so we can see whether you can make any savings.

    But much of the time the problem is that people aren't budgeting for occasional but not unexpected costs like white goods failing, car repairs, family events. So they under estimate how much they need.

    But If you are borrowing to try and make payments on existing debts, you need to stop digging the hole.

    Stop paying unsecured debt. First get a new basic bank account, or try Monzo or Starling. Move your income to that account and manually move your essential standing orders and DDs like accommodation, CT and utilities. Then cancel the DDs for all your consumer debt and put any money you have after essential costs to an emergency fund.

    The sky won't fall in, your creditors will default your debts eventually and your credit record will improve 6 years later.
    If you've have not made a mistake, you've made nothing
  • ad2
    ad2 Posts: 18 Forumite
    Seventh Anniversary 10 Posts Combo Breaker
    Hi. Thank you for your replies. Here is what I have managed to come up with:

    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

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

    Monthly Income Details[/b]
    Monthly income after tax................ 3412
    Partners monthly income after tax....... 1558
    Benefits................................ 170.2
    Other income............................ 0[b]
    Total monthly income.................... 5140.2[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 621.1
    Secured/HP loan repayments.............. 380
    Rent.................................... 929.3
    Management charge (leasehold property).. 0
    Council tax............................. 199
    Electricity............................. 61.83
    Gas..................................... 61.83
    Oil..................................... 0
    Water rates............................. 90.52
    Telephone (land line)................... 0
    Mobile phone............................ 154.92
    TV Licence.............................. 13.25
    Satellite/Cable TV...................... 0
    Internet Services....................... 37
    Groceries etc. ......................... 600
    Clothing................................ 50
    Petrol/diesel........................... 250
    Road tax................................ 33.25
    Car Insurance........................... 84.49
    Car maintenance (including MOT)......... 30
    Car parking............................. 40
    Other travel............................ 335
    Childcare/nursery....................... 24
    Other child related expenses............ 59.1
    Medical (prescriptions, dentist etc).... 70
    Pet insurance/vet bills................. 56.35
    Buildings insurance..................... 10.72
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 55.73
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 0
    Entertainment........................... 22
    Holiday................................. 0
    Emergency fund.......................... 0
    Household Services...................... 22[b]
    Total monthly expenses.................. 4341.39[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1725
    Other assets............................ 0[b]
    Total Assets............................ 1725[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 109442...(621.1)....0
    Hire Purchase (HP) debt ...... 24898....(380)......0[b]
    Total secured & HP debts...... 134340....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Credit Card....................8500......220.......0
    Credit Card....................4700......140.......0
    Credit Card....................5900......86........0
    Loan...........................6909......300.......0
    Credit Card....................3538......121.......0
    Credit Card....................2558......25........0
    Store Card.....................455.......37.12.....0
    Store Card.....................138.35....20........0
    Credit Card....................250.......0.........0
    Overdraft......................250.......0.........0
    Store Card.....................631.......37........0[b]
    Total unsecured debts..........33829.35..986.12....-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 5,140.2
    Expenses (including HP & secured debts). 4,341.39
    Available for debt repayments........... 798.81
    Monthly UNsecured debt repayments....... 986.12[b]
    Amount short for making debt repayments. -187.31[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 1,725
    Total HP & Secured debt................. -134,340
    Total Unsecured debt.................... -33,829.35[b]
    Net Assets.............................. -166,444.35[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • TheAble
    TheAble Posts: 1,674 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Out of interest why are you paying both rent and a mortgage? Do you rent the place you live in but own another maybe?
  • RAS
    RAS Posts: 34,958 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    TheAble said:
    Out of interest why are you paying both rent and a mortgage? Do you rent the place you live in but own another maybe?
    Shared ownership? 

    What is the secured debt for?
    2 cars mentioned but only 1 valued.
    Phone and water rates are horrendous. 
    You need contents insurance.

    If you've have not made a mistake, you've made nothing
  • ad2
    ad2 Posts: 18 Forumite
    Seventh Anniversary 10 Posts Combo Breaker
    Yes that is shared ownership. Rent goes up every year guaranteed! The insurance is contents, we have buildings as part of Rent. Secured Debt which is a PCP but will check - this is the other car, value is around £20000 online. 
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,004 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You are significantly over stretched but you don’t mention what interest rates you are paying on the cards. £600 is high for groceries for 4 and the mobiles cost is high. Are your children teenagers? That would explain both.

    You may need a DMP as over half your income is going on debt repayments. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • ad2
    ad2 Posts: 18 Forumite
    Seventh Anniversary 10 Posts Combo Breaker
    Maybe there is work to be done on the food bill then but we never seem to be able to get lower than £120/£140 a week (dog food inc). No they are not teenagers and I have included school meals for 1 of them in that. I will see if anything can be done on your mobiles as well.

    I have updated it again, hope that helps

    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

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

    Monthly Income Details[/b]
    Monthly income after tax................ 3412
    Partners monthly income after tax....... 1558
    Benefits................................ 170.2
    Other income............................ 0[b]
    Total monthly income.................... 5140.2[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 621.1
    Secured/HP loan repayments.............. 380
    Rent.................................... 929.3
    Management charge (leasehold property).. 0
    Council tax............................. 199
    Electricity............................. 61.83
    Gas..................................... 61.83
    Oil..................................... 0
    Water rates............................. 90.52
    Telephone (land line)................... 0
    Mobile phone............................ 154.92
    TV Licence.............................. 13.25
    Satellite/Cable TV...................... 0
    Internet Services....................... 37
    Groceries etc. ......................... 600
    Clothing................................ 50
    Petrol/diesel........................... 250
    Road tax................................ 33.25
    Car Insurance........................... 84.49
    Car maintenance (including MOT)......... 30
    Car parking............................. 40
    Other travel............................ 335
    Childcare/nursery....................... 24
    Other child related expenses............ 59.1
    Medical (prescriptions, dentist etc).... 70
    Pet insurance/vet bills................. 72.85
    Buildings insurance..................... 0
    Contents insurance...................... 10.72
    Life assurance ......................... 0
    Other insurance......................... 39.23
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 0
    Entertainment........................... 22
    Holiday................................. 0
    Emergency fund.......................... 0
    Household Services...................... 22[b]
    Total monthly expenses.................. 4341.39[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1725
    Other assets............................ 0[b]
    Total Assets............................ 1725[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 108821...(621.1)....2.49
    Hire Purchase (HP) debt ...... 24898....(380)......7.3[b]
    Total secured & HP debts...... 133719....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Credit Card....................8500......220.......20.01
    Credit Card....................4700......140.......24.85
    Credit Card....................5900......86........24.1
    Store Card.....................164.63....30........34.9
    Loan...........................6909.89...300.......0
    Credit Card....................3732.84...121.......23.9
    Credit Card....................2532.24...25........0
    Store Card.....................589.75....37.12.....29.9
    Store Card.....................110.36....30........24.9
    Credit Card....................250.......0.........0
    Overdraft......................250.......0.........0
    Store Card.....................631.42....37........24.9[b]
    Total unsecured debts..........34271.13..1026.12...-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 5,140.2
    Expenses (including HP & secured debts). 4,341.39
    Available for debt repayments........... 798.81
    Monthly UNsecured debt repayments....... 1,026.12[b]
    Amount short for making debt repayments. -227.31[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 1,725
    Total HP & Secured debt................. -133,719
    Total Unsecured debt.................... -34,271.13[b]
    Net Assets.............................. -166,265.13[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,272 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    A few questions.
    Mobile phones. How many, are they still in contract, if so when do contracts end?

    Medical. Exactly what are they?

    Other insurances,. What are they?

    Haircuts. No one ever has their hair cut?

    Pet insurance. Could it be cheaper?

    and most of all food, do you buy all well known brands or supermarket own brands?
    If you go down to the woods today you better not go alone.
  • ad2
    ad2 Posts: 18 Forumite
    Seventh Anniversary 10 Posts Combo Breaker
    1x Phone & 1 Watch in contract till October 2025. Other is February 2027.

    The medical is a private prescription for our daughter, this will hopefully go by the end of the year.

    Boiler insurance £36.99 and gadget £2.24

    Family does haircut 😀

    Pet insurance - This is the 2nd year so went up slightly, can explore that.

    We buy a mix but could probably buy more supermarket brands.

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