We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
SOA advice appreciated on debt plan
So I posted end of last year about doing a DMP but I didn’t, I just panicked about doing it and continued as I was.
So a bit of background, I was earning about another £800 a month on top of what I am earning now, but the second job I was doing came to an end suddenly with about 2 weeks notice in November. So this was the start of things getting worse. However had made bad choices up until that point and although most of my debt is on 0% or low percent I just took on too much as a large proportion of my Monthly spend is debt payments.
On top of losing that job I also was diagnosed with a heart condition which is lifelong and I need to manage through healthy lifestyle and reducing stress. I am 37 yrs old for reference and have a young family.
The soa below is based on my earnings, my debts and the joint debts in my name I have out half r payment the same with the mortgage and any joint bills.
My husband from yesterday knows how bad things are , I told him everything. He cannot afford more than what he puts in for half of our joint bills so I have just included my share in the soa.
He can’t help financially but wants to support with helping us sort it. The idea was for me to work extra hours, currently I work 25 hrs per week and manage after childcare etc. but I could do an extra 12 hours of week per week with an extra job, but I am worried about burning out and managing a full time job whilst trying to care for our children and this new heart condition which is proving difficult to manage and I have symptoms daily.
The plan was to suck it up and do the hours for the next 6 months or so with budgeting correctly to live within our means and pay off debt. My husband can’t work any extra hours as he already works full time and he isn’t allowed to on top
of his job.
I know I have rambled but I just want to check we are doing the right things as my head feels full right now and it is difficult to se through it and a clear path.
[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................ 2534
Partners monthly income after tax....... 0
Benefits................................ 175
Other income............................ 0[b]
Total monthly income.................... 2709[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 675
Secured/HP loan repayments.............. 217
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 50
Gas..................................... 0
Oil..................................... 0
Water rates............................. 42.5
Telephone (land line)................... 0
Mobile phone............................ 16.5
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 28
Groceries etc. ......................... 350
Clothing................................ 26
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 25
Car maintenance (including MOT)......... 25
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 150
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 15
Buildings insurance..................... 5
Contents insurance...................... 5
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 25
Entertainment........................... 42
Holiday................................. 25
Emergency fund.......................... 25
House maintenance ...................... 20
Professional fees....................... 46[b]
Total monthly expenses.................. 2198[/b]
[b]
Assets[/b]
Cash.................................... 0
House value (Gross)..................... 357500
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0[b]
Total Assets............................ 372500[/b]
[b]
Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 268000...(675)......4.66
Hire Purchase (HP) debt ...... 12000....(217)......10.9[b]
Total secured & HP debts...... 280000....-.........- [/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Barclays loan..................6800......235.......6.9
Novuna.........................13800.....150.......6.9
Creation.......................1800......80........0
Lloyds ........................7600......195.......0
Paypal.........................250.......5.........0
Fluid..........................2600......30........0
MBNA 2.........................7500......105.......0
MBNA 1.........................10500.....90........0
V12............................1900......40........0[b]
Total unsecured debts..........52750.....930.......- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,709
Expenses (including HP & secured debts). 2,198
Available for debt repayments........... 511
Monthly UNsecured debt repayments....... 930[b]
Amount short for making debt repayments. -419[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 372,500
Total HP & Secured debt................. -280,000
Total Unsecured debt.................... -52,750[b]
Net Assets.............................. 39,750[/b]
[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
Comments
-
On those figures a dmp looks like a good option. Maybe offer a bit less than the full £500, try to save on the side and look for full & finals down the line0
-
if one of the reasons you were scared of a DMp is your mortgage, you will still be able to get a new fix from your current lender when this one ends.
I agree this looks like a DMP.0 -
My current lender is mpowered mortgages and they have now closed apparently to new lending but will allow existing ones to continue until the end of the fixed term which is about 2 years away. So we would have to move lenders at this point1
-
Your SOA looks okay. Lots of money going into 'nice to haves though' like haircuts, entertainment and holiday. Considering the debt, I'd perhaps stall some of these.0
-
oh that is bad news. You will find it very difficult or impossible to get a decent rate mortgage in 2 years if you are on a DMP.
mpowered cant make you change mortgage lenders in 2 years time but the mortgage rate would go up to their standard variable rate, which at the moment is 5.74% (https://mpowered.co.uk/svr). I dont know if how they set the SVR is written into your mortgage contract?
when will the childcare bills start to drop?0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.3K Work, Benefits & Business
- 605.9K Mortgages, Homes & Bills
- 179K Life & Family
- 263.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards