Help please

kimwp

Is car maintenance really £3600 a year or is that £300 the annual amount? 

booandboo

kimwp said:

Is car maintenance really £3600 a year or is that £300 the annual amount? 

oh yes not sure how I got that! thankyou

booandboo

Updated [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................ 800

Partners monthly income after tax....... 3000

Benefits................................ 1277

Other income............................ 0[b]

Total monthly income.................... 5077[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 1200

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

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

Management charge (leasehold property).. 0

Council tax............................. 153

Electricity............................. 240

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

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

Water rates............................. 44

Telephone (land line)................... 0

Mobile phone............................ 30

TV Licence.............................. 15

Satellite/Cable TV...................... 0

Internet Services....................... 40

Groceries etc. ......................... 900

Clothing................................ 80

Petrol/diesel........................... 300

Road tax................................ 24

Car Insurance........................... 110

Car maintenance (including MOT)......... 180

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

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

Childcare/nursery....................... 0

Other child related expenses............ 150

Medical (prescriptions, dentist etc).... 400

Pet insurance/vet bills................. 40

Buildings insurance..................... 0

Contents insurance...................... 28

Life assurance ......................... 88

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

Presents (birthday, christmas etc)...... 50

Haircuts................................ 40

Entertainment........................... 200

Holiday................................. 100

Emergency fund.......................... 0

Car lease............................... 228[b]

Total monthly expenses.................. 4640[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 270000

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

Car(s).................................. 2

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

Total Assets............................ 270002[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 187000...(1200).....4.84[b]

Total secured & HP debts...... 187000....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Halifax CC.....................10500.....250.......16.92

Lloyds CC......................6500......300.......27.39

Lloyds CC......................6075......236.......26.85

paypal.........................1600......100.......0

Partners % cards...............20000.....350.......0

Sainsburys.....................3000......70........20.8

MBNA...........................2000......50........4.9

Very home shopping ............1400......100.......0

Natwest CC part 2..............3000......0.........0

Natwest CC part 1 .............7500......100.......0

Virgin CC......................3300......75........20.01

Halifax overdraft .............500.......0.........0

HMRC...........................2000......50........0

HSBC CC part 2.................2700......0.........20.8

HSBC CC part 1.................1693......112.......0

Barclaycard CC.................8500......90........21.9

M&S CC part 2..................1000......50........28.9

M&S CC part 1..................1000......0.........0

Loyds business loan............1000......50........0[b]

Total unsecured debts..........83268.....1983......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 5,077

Expenses (including HP & secured debts). 4,640

Available for debt repayments........... 437

Monthly UNsecured debt repayments....... 1,983[b]

Amount short for making debt repayments. -1,546[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 270,002

Total HP & Secured debt................. -187,000

Total Unsecured debt.................... -83,268[b]

Net Assets.............................. -266[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Andyjflet

Hi, don't worry, having a sustainable plan is half the battle and will make you feel better, will drop back in once I have digested this, first things that spring to mind.

1. Well done for making an arrangement with HMRC as they have more power than the consumer debt creditors.
2. Are you still living off credit? 
3. You need to sit down and have a full and frank conversation away from the kids with your partner. 

booandboo

Thanks I hope to get a plan, I’ve read lots on here but just not sure what’s best and I will talk to my partner when I can bring a solution aswell. 

I’m worried about the mortgage mostly. 

I am still living off credit because of the amount I’m paying on cards but if that was less I could manage. 

Andyjflet said:

Hi, don't worry, having a sustainable plan is half the battle and will make you feel better, will drop back in once I have digested this, first things that spring to mind.

1. Well done for making an arrangement with HMRC as they have more power than the consumer debt creditors.
2. Are you still living off credit? 
3. You need to sit down and have a full and frank conversation away from the kids with your partner. 

ManyWays

Ignoring quibbles about small amounts, clearly there is no way this can carry on as you are way too short a month.

If you redo a SOA it may be helpful if you can split out disability benefits from other benefits.

2 cars, is that one you own and a lease car, are both essential? Because debt management (whether through a firm like Stepchange or a DIY version), will wreck your credit scores so you will not be able to get a new lease car or reasonably priced HP when this one ends

Stateofart

Your electricity and gas spend is astronomical. Whats going on here?

Your grocery spend is also very high and could be easily halved.  

It's been mentioned by £3600 on car maintanance?  What type of car do you drive !!

booandboo

ManyWays said:

Ignoring quibbles about small amounts, clearly there is no way this can carry on as you are way too short a month.

If you redo a SOA it may be helpful if you can split out disability benefits from other benefits.

2 cars, is that one you own and a lease car, are both essential? Because debt management (whether through a firm like Stepchange or a DIY version), will wreck your credit scores so you will not be able to get a new lease car or reasonably priced HP when this one ends

All of the benefits are disability, 327 carers allowance and the rest DLA.

we do need 2 cars as one for work and the other car for my son who can’t walk far and relies on a wheelchair.

without too much feeling sorry for myself, up until 3 years I earned 3k a month. We had debt but managed to pay it. Then the kids got ill, I couldn’t work , in that time our mortgage shot up and the cost of living and now I’m just in a mess. I often think selling the house would be better to pay it but that’s not fair on my partner and would cause so much stress to the kids.

in a few years I’ll be able to work more and pay more off but not until the kids are older

Andyjflet

In my opinion and I'm sure others would advise, is to stop paying the consumer debt, to me it looks like its impossible to manager your way out of this. There is specific advice on the pinned posts on how to do this, you can either manage it yourself, if you have the awareness and energy, or ask one of the charity free services, like Stepchange, to manage it for you. 
There are consequences obviously, you will default and these will stay on your file for 6 years, but you are almost certain to be able to renew with your provider. 
I guess it also depends on your situation with your partner, do you want to spend six years tackling this together or make the break before you embark on your separate journeys?

booandboo

Thankyou I’ve read a lot on here and this is what I thought, it just seems scary and wrong. Obviously I can see the logic.

Will it be possible for me to come off the mortgage when it’s due for renewal next year? Or will his credit be so poor that that’s not an option? I think he would pass the affordability checks.