Advice and help with £28k debts

DaedricPrince

https://forums.moneysavingexpert.com/discussion/comment/81912487#Comment_81912487

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 3650
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 3650[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 979
Secured/HP loan repayments.............. 174
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 141
Electricity............................. 139.04
Gas..................................... 0
Oil..................................... 0
Water rates............................. 31.22
Telephone (land line)................... 0
Mobile phone............................ 56.04 - Just switched 2 plans to ID Mobile SIM only for £8pm each. The handset plan has 2 months to run and then I'll do the same with that, so will drop to £24pm total in May 😁
TV Licence.............................. 14.96
Satellite/Cable TV...................... 18
Internet Services....................... 29.99 - Found a deal with a provider who paid out your existing contract! Switched tonight so will be paying the above price for 5ooMbps broadband 😁
Groceries etc. ......................... 280 - Been through everything and found that if I stop buying ad hoc bits and pieces from the local shop, my usual staples, store cupboard and freezer essentials and one or two "treats" should be doable for this IF I can plan, cook and stay even slightly organise. So hopefully, £100 saved a month (fingers crossed).
Clothing................................ 50
Petrol/diesel........................... 250 - works provided bus that's free. Can only get this when I'm working in certain locations, so not a complete saving, but should certainly help for a few days a month.
Road tax................................ 17
Car Insurance........................... 36.97
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 50 - Sons train tickets for school when he stays here.
Childcare/nursery....................... 0
Other child related expenses............ 400
Medical (prescriptions, dentist etc).... 9.9
Pet insurance/vet bills................. 8.3
Buildings insurance..................... 47.93 - unfortunately auto renewed (thanks terrible memory)
Contents insurance...................... 0
Life assurance ......................... 50.27
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60 - 2 kids, niece and nephew, and parents for birthdays and xmas (my brother and I both agree not to buy each other because neither is bothered by presents)
Haircuts................................ 14
Entertainment........................... 100 - Yes, want to keep this but can stomach the £8 saving to keep a nice round number per month 😁
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 3017.62[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 212000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0[b]
Total Assets............................ 221000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 152095...(979)......4.45
Hire Purchase (HP) debt ...... 8661.....(174)......11.4[b]
Total secured & HP debts...... 160756....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Tesco..........................26489.....529.7.....9.6
Amazon.........................475.45....47........0
Overdraft......................1000......50........39[b] - Have included a payment here or it will sit forever accruing fees
Total unsecured debts..........27964.45..626.7.....- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,650
Expenses (including HP & secured debts). 3,017.62
Available for debt repayments........... 632.38
Monthly UNsecured debt repayments....... 626.7[b]
Amount left after debt repayments....... 5.68[/b] Better but not exactly mega bucks 🙄

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 221,000
Total HP & Secured debt................. -160,756
Total Unsecured debt.................... -27,964.45[b]
Net Assets.............................. 32,279.55[/b]

I've run through the SOA above again with changes that have either been done already or are feasible for the next month. The problem I see here is that it seems I can have an Emergency fund OR very slowly pay down the overdraft, during which time it will still be racking up fees to the tune of ~£20pm which will wipe out any surplus again 😑

I'm still really unsure as to whether this is the way forward or a DMP. I also know that the ADHD tax will be paid, regardless of intention, at some point which is worrying when the amount left over is so tight. Last thing I want to do is add to the debts again 😔

Payplan must be finished for the weekend because I haven't had a reply since 5pm. My mind is overloaded and racing, anxiety is high and I feel paralysed in decision making around this, despite the positive little wins above.

ManyWays

A debt adviser would consider £280 a month a VERY low amount to spend on groceries for an adult and 2 part time children.

It is fine if you can manage it without worrying about food and the cost becoming a full time occupation. But do not feel guilty or slacking if you can not.

DaedricPrince

https://forums.moneysavingexpert.com/discussion/comment/81913039#Comment_81913039

Someone above said £380 was very high. I guess somewhere in the middle then?

DaedricPrince

Right, I've been a busy bee and have been going through everything obsessively for the last day or two (thanks hyperfocus!) I've re-done my SOA including changes already made, changes in process and changes that can be made in under 2 months time. I've included an emergency fund and small payments to the overdraft. Bearing in mind that @saajan_12 said my groceries are too high and @ManyWays thinks the new target is very low, I've gone somewhere in the middle 😉Changes are bolded.

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

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 3650
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 3650[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 979
Secured/HP loan repayments.............. 174
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 141
Electricity............................. 139.04
Gas..................................... 0
Oil..................................... 0
Water rates............................. 31.22
Telephone (land line)................... 0
Mobile phone............................ 24
TV Licence.............................. 14.96
Satellite/Cable TV...................... 4.99
Internet Services....................... 29.99
Groceries etc. ......................... 330
Clothing................................ 40
Petrol/diesel........................... 250
Road tax................................ 17
Car Insurance........................... 36.97
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 50
Childcare/nursery....................... 0
Other child related expenses............ 400
Medical (prescriptions, dentist etc).... 9.8
Pet insurance/vet bills................. 0
Buildings insurance..................... 47.93
Contents insurance...................... 0
Life assurance ......................... 50.27
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 14
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 60[b]
Total monthly expenses.................. 3044.17[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 212000
Shares and bonds........................ 0
Car(s).................................. 9000
Other assets............................ 0[b]
Total Assets............................ 221000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 152095...(979)......4.3
Hire Purchase (HP) debt ...... 8661.....(174)......11.4[b]
Total secured & HP debts...... 160756....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Loan ..........................26489.....529.7.....9.6
Amazon.........................475.45....47........0
Overdraft......................1000......30........39[b]
Total unsecured debts..........27964.45..606.7.....- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 3,650
Expenses (including HP & secured debts). 3,044.17
Available for debt repayments........... 605.83
Monthly UNsecured debt repayments....... 606.7[b]
Amount short for making debt repayments. -0.87[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 221,000
Total HP & Secured debt................. -160,756
Total Unsecured debt.................... -27,964.45[b]
Net Assets.............................. 32,279.55[/b]

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

stymied

Do you have anything you can sell or the ability to make extra income from overtime / bar work / side hustle / surveys? Have you recently had a pay rise or could you ask your manager? Your SOA is so close to balancing that it would seem a shame to go down the DMP route. I assume it would be risky with ADHD to open a new line of credit but if you could get some of your credit onto a 0% card that could help with paying off the expensive overdraft sooner.

Is the HP your car? Was that purchased fairly recently?

DaedricPrince

https://forums.moneysavingexpert.com/discussion/comment/81913359#Comment_81913359

I don't want to sound pathetic, but spending all day at work and masking, literally forcing concentration and paying attention, and acting like a real grown up boy leaves me absolutely wiped out mentally and physically when I get home. Sometimes leads to weeks of fatigue, depression and general non functioning if it gets too far. Luckily I get a very generous leave allowance, so can usually put a weeks leave in before things get that far. A side hustle really would be a struggle, especially around having the kids as well. I have my appointment to start meds for the ADHD, on top of the meds I already take for bipolar, next week. Hopefully this might help to alleviate some of that.

No overtime in my role unfortunately.

The annual pay talks have started at work and it's set pay grades (big government owned employer). There is the possibility of shifts and shift pay hopefully not too far in the distance which would be a decent pay lift.

I had briefly looked at the Tesco 0% money transfer card (0% for 9 months) to pay off the overdraft, but the little voice tells me the ADHD gremlins will see that as available spends 😩 i suppose I could cut up the card once the funds have been transferred over (assuming I'd get accepted).

HP is the car, yes and it was purchased last April after a less than stellar driver wrote off my old car 😑

I agree the DMP route does seem a shame and it definitely would bring about general feelings of shame and failure. This looks tough, especially knowing my general traits when it comes to attention to boring adult things like bills, but if I can somehow keep on top of it, I'd much prefer to be able to balance the books and avoid it.

in_need_of_direction

i get what you're saying about burn out but seriously feel that with you being so close, it'd be worth the stretch. even one or two surveys a week could deal with the shortfall. i think you've done amazingly well at trimming costs since your first SOA. Even one decent item sold could significantly speed up tackling the overdraft. best of luck with it all

DaedricPrince

Happy to report that I applied for the tesco card and it was accepted. This means I can transfer the cash to pay off the overdraft and save a fortune in overdraft fees. The overdraft will be paid and cancelled ASAP, and then chip away at the card balance with zero fees or interest to worry about for 9 months.

Hopefully, my yearly bonus (if there is one) will cover that in June. An added bonus is 1 clubcard point per £8 on transactions, 1 point per £4 in Tesco and 1 point per £4 spent on Tesco fuel plus 1 point for every 2 litres, all.on top of the usual clubcard points. So, if I use it for everyday transactions and then pay the balance immediately from my pots, I should rack up some decent vouchers (I don't often shop in tesco but will be handy to have vouchers from everyday spends. Possibly save them for xmas or exchange for money off trips or activities with the rewards partner scheme).

Weirdly have gone from doom and gloom, to being excited for payday to get the ball rolling with the pots, emergency fund and the challenge of keeping to budget. My adhd brain is seeing this as a "game" to win!

Also signed up for the mailing list at Farmfoods and was rewarded with 2 vouchers! One for £5 off when spending £60 and one for £2 off over £25. Bonus, as I shop there regularly anyway (when I do actually travel to the big town, anyway) 😀

DaedricPrince

@in_need_of_direction

Thanks! I'm intrigued by the surveys. Are they worth the time? I would also have zero idea where to look to sign up or what it really entails to make it worthwhile. Definitely something to look into though.

RAS

https://forums.moneysavingexpert.com/discussion/comment/81911237#Comment_81911237

The third tab in the Reduce Debt and Boost Income section is Boost Your Income. There's whole threads on each survey scheme. And various other small ways to make small amounts of money.