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Debt advice 40k

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  • kimwp
    kimwp Posts: 2,986 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    RAS said:
    HANG ON, please.

    You are solvent even without your partner's contribution!

    Why are going going for defaults, wrecking your credit record unnecessarily?
    I think the soa needs to be accurate and with reasonable allowances before making this statement. 
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 16 January at 10:35AM
    Helloadviceplz said:
    Thank you @EssexHebridean. I have just checked my energy account and I am in credit and my monthly amount has now been reduced as of next month to £19.93 , my electricity however has increased to £71.07 per month. 

    I currently have £800 in savings so I may build this up over the next two months to get it to £1500 and then tackle the debts head on with anything else I have. 
    That's quite comparatively expensive on the electricity front - and is probably worth having a look at your annual use as it appears you use gas for your heating and hot water? Usually you expect people's gas cost to be higher than their electric, so probably worth investigating. 

    RAS said:
    HANG ON, please.

    You are solvent even without your partner's contribution!

    Why are going going for defaults, wrecking your credit record unnecessarily?
    Yes - I'd agree that the additional £500 added in here makes it very unlikely that you would not be making ends meet AND having some surplus too - I had failed to notice that the £500 wasn't currently included there. It's still vital to get the SOA - and hence your budget - correct though, and also to make sure that the surplus you should have on paper translates through to actual money left at the end of the month that can then be sent across to the immediate debt for tackling first. 
    🎉 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
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    RAS said:
    HANG ON, please.

    You are solvent even without your partner's contribution!

    Why are going going for defaults, wrecking your credit record unnecessarily?
    I dont understand what you mean here sorry?
  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Helloadviceplz said:
    RAS said:
    HANG ON, please.

    You are solvent even without your partner's contribution!

    Why are going going for defaults, wrecking your credit record unnecessarily?
    I dont understand what you mean here sorry?
    Your SOA currently isn't accurate as there is bits missing, wrong amounts etc - that needs refining and getting right, in most cases that would very likely mean your budget would be in debt by the time those bits are corrected BUT the £500 from your partner currently isn't shown there either, so that will - or should - more than balance out the "wrong" bits currently.

    What RAS is saying is that if you are currently running at a surplus, you can continue to make the minimum payments to the debts, with any surplus going to your most expensive debt to start tackling that. You don't need to stop payments and get defaults as you already have enough money to pay the debts and start clearing them. 
    🎉 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
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Ok thank you - I dont think I said I would ever stop making payments. But yes I will redo the SOA now and get that pasted here. Thank you so much for your advice.
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Thank you everyone, I have reposted the SOA with more accurate figures. Please note I am checking the eclectricity amount. My gas has been in credit hence the lower amount, but I am unsure why the electricity is so high. I will investigate this. I also need to find out APR's of both loans I havent done that yet but will call after work. 
    Please also know my aim is to pay this debt off, find ways if possible to reduce interest on loans. But also try to manage to build some savings. 

    Thank you, all advice is very much appreciated. This must be the year I get myself in a better position. I feel sad that my salary is fairly decent and I am still struggling to manage.

    Thanks


    [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......... 
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2891
    Partners monthly income after tax....... 500
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 3391[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 785.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 200
    Management charge (leasehold property).. 106.52
    Council tax............................. 170
    Electricity............................. 71.7
    Gas..................................... 19.93
    Oil..................................... 0
    Water rates............................. 45.72
    Telephone (land line)................... 0
    Mobile phone............................ 30
    TV Licence.............................. 14.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 10
    Groceries etc. ......................... 400
    Clothing................................ 25
    Petrol/diesel........................... 50
    Road tax................................ 10
    Car Insurance........................... 42.5
    Car maintenance (including MOT)......... 50
    Car parking............................. 30
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 40
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 10
    Entertainment........................... 100
    Holiday................................. 100
    Emergency fund.......................... 100[b]
    Total monthly expenses.................. 2451.19[/b]
    [b]

    Assets[/b]
    Cash.................................... 800
    House value (Gross)..................... 250000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0[b]
    Total Assets............................ 251800[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(785.7)....0[b]
    Total secured & HP debts...... 0.........-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    CREDIT CARD ...................2800......100.......22.47
    Loan marks and spen ...........26000.....447.......0
    Loan mbna .....................9486......247.......0[b]
    Total unsecured debts..........38286.....794.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,391
    Expenses (including HP & secured debts). 2,451.19
    Available for debt repayments........... 939.81
    Monthly UNsecured debt repayments....... 794[b]
    Amount left after debt repayments....... 145.81[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 251,800
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -38,286[b]
    Net Assets.............................. 213,514[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Please also note I own a 75% share in my apartment, the same flat recently sold for 270k. 
  • elsien
    elsien Posts: 36,102 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Your internet services are very cheap. Is that accurate because if so I need to know who you are using!
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    @elsien haha it is actually correct and yes it is cheap! I have a deal with Virgin which is my mobile phone and wifi for £39.79 per month! 
  • Helloadviceplz
    Helloadviceplz Posts: 32 Forumite
    10 Posts Name Dropper
    Sorry just one more note here - I have put £500 in partner income because that is what he currently gives me each month so my income plus £500 is what I am receiving each month. 

    Helloadviceplz said:
    Thank you everyone, I have reposted the SOA with more accurate figures. Please note I am checking the eclectricity amount. My gas has been in credit hence the lower amount, but I am unsure why the electricity is so high. I will investigate this. I also need to find out APR's of both loans I havent done that yet but will call after work. 
    Please also know my aim is to pay this debt off, find ways if possible to reduce interest on loans. But also try to manage to build some savings. 

    Thank you, all advice is very much appreciated. This must be the year I get myself in a better position. I feel sad that my salary is fairly decent and I am still struggling to manage.

    Thanks


    [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......... 
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2891
    Partners monthly income after tax....... 500
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 3391[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 785.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 200
    Management charge (leasehold property).. 106.52
    Council tax............................. 170
    Electricity............................. 71.7
    Gas..................................... 19.93
    Oil..................................... 0
    Water rates............................. 45.72
    Telephone (land line)................... 0
    Mobile phone............................ 30
    TV Licence.............................. 14.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 10
    Groceries etc. ......................... 400
    Clothing................................ 25
    Petrol/diesel........................... 50
    Road tax................................ 10
    Car Insurance........................... 42.5
    Car maintenance (including MOT)......... 50
    Car parking............................. 30
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 40
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 10
    Entertainment........................... 100
    Holiday................................. 100
    Emergency fund.......................... 100[b]
    Total monthly expenses.................. 2451.19[/b]
    [b]

    Assets[/b]
    Cash.................................... 800
    House value (Gross)..................... 250000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0[b]
    Total Assets............................ 251800[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(785.7)....0[b]
    Total secured & HP debts...... 0.........-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    CREDIT CARD ...................2800......100.......22.47
    Loan marks and spen ...........26000.....447.......0
    Loan mbna .....................9486......247.......0[b]
    Total unsecured debts..........38286.....794.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,391
    Expenses (including HP & secured debts). 2,451.19
    Available for debt repayments........... 939.81
    Monthly UNsecured debt repayments....... 794[b]
    Amount left after debt repayments....... 145.81[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 251,800
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -38,286[b]
    Net Assets.............................. 213,514[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    Helloadviceplz said:
    Thank you everyone, I have reposted the SOA with more accurate figures. Please note I am checking the eclectricity amount. My gas has been in credit hence the lower amount, but I am unsure why the electricity is so high. I will investigate this. I also need to find out APR's of both loans I havent done that yet but will call after work. 
    Please also know my aim is to pay this debt off, find ways if possible to reduce interest on loans. But also try to manage to build some savings. 

    Thank you, all advice is very much appreciated. This must be the year I get myself in a better position. I feel sad that my salary is fairly decent and I am still struggling to manage.

    Thanks


    [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......... 
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2891
    Partners monthly income after tax....... 500
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 3391[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 785.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 200
    Management charge (leasehold property).. 106.52
    Council tax............................. 170
    Electricity............................. 71.7
    Gas..................................... 19.93
    Oil..................................... 0
    Water rates............................. 45.72
    Telephone (land line)................... 0
    Mobile phone............................ 30
    TV Licence.............................. 14.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 10
    Groceries etc. ......................... 400
    Clothing................................ 25
    Petrol/diesel........................... 50
    Road tax................................ 10
    Car Insurance........................... 42.5
    Car maintenance (including MOT)......... 50
    Car parking............................. 30
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 40
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 10
    Entertainment........................... 100
    Holiday................................. 100
    Emergency fund.......................... 100[b]
    Total monthly expenses.................. 2451.19[/b]
    [b]

    Assets[/b]
    Cash.................................... 800
    House value (Gross)..................... 250000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0[b]
    Total Assets............................ 251800[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(785.7)....0[b]
    Total secured & HP debts...... 0.........-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    CREDIT CARD ...................2800......100.......22.47
    Loan marks and spen ...........26000.....447.......0
    Loan mbna .....................9486......247.......0[b]
    Total unsecured debts..........38286.....794.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,391
    Expenses (including HP & secured debts). 2,451.19
    Available for debt repayments........... 939.81
    Monthly UNsecured debt repayments....... 794[b]
    Amount left after debt repayments....... 145.81[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 251,800
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -38,286[b]
    Net Assets.............................. 213,514[/b]

    [i]Created using the SOA calculator at www.stoozing.com. 
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

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