My S.O.A. Please somebody HELP!!!!!!

Going-under-fast

After putting my thread on yesterday it was recommended that I do a statement of affairs, It took sometime but here it is.

Im selling my house because I took on a mortgage which has proven to be too much for us to handle so ive changed to interest only to try and help matters, I also have a secure loan on the mortgage which we took out with the house (I have since learned that Martin hates them! Whoops!):money:
I stand to make no profit from the house sale by the time I pay estate agents etc. Plus Northern Rock will not let me reduce my mortgage as they say my credit score isnt good enough. Im tied in with them for a further 3years and on selling my house I will have to pay them £5000.00 its not a good situation.

Anyway here is what I have to pay out every month and its really getting me down and cant see anyway out. would greatly appreciate anyones advice to help me through this and become DEBT FREE!!!!!

My Salary £1500.00 (this varies sometimes more, but can be less)
Partners Salary £1380.00 (Always)
Total Income £2880.00

Mortgage £978.38 (Inerest only)
Coucil Tax £141.00
Water £28.18
Gas & Elec £44.00
House Insurance £39.40
B.T. £24.00
Mobile £50.00 (approx)
Car Insurance £30.42
Life Insurance £172.09 ( joint and covers everything crititcal illness etc)
Contact Lens £13.00
Sky & Phone £50.00
T.V. £10.99
Fuel £120.00
A.O.L. £17.99

This is where it gets really horrible........

Credit Cards

Virgin Balance £2878.43 Limit £4100.00 Apr 24.9% (How rude!)min pay £80.00
LLoyds TSB Platinum Balance £999.79 Limit £15000.00 Apr 15.75 min pay £20.00
Liverpool Victoria Balance £6622.20 Limit £8100.00 Apr 16.62 min pay £133.00
Barclaycard Balance £164.08 Limit £3500.00 Apr 19.9 min pay £5.00
Tesco Personal Loan Amt £10000.00 repayments £230.00 Time left 53months at 6.7% apr

Overdarft £450.00 (Always over that and incurr charges)

My Husband

Credit cards
egg £3000.00
barclaycard 0% interest for 14 months £3000.00
Overdraft £1800.00
Fuel £150.00
Car Insurance £30.00
Food £150.00

Im shaking as i write this, its so horrible to be in this situation. Please can anyone Help?????

micron_2

Just seen your post as I was about to log off. I know how you are feeling I was in exactly the same position in the summer with over 50K of debt which I have now managed to get down to 11K. You are in the right place for advice, support and motivation. Hang in there it will get better. This site is definitely the place to help you through it. I must dash now but will be back to see how you are doing. You have made the first positive step by dealing with your debt.

oops_a_daisy

Well done on posting - thats one of the hardest parts. Silly question but do you have any savings at all?
Having had a quick look 1 thing definately needs to go NOW and that is your Sky subscription - thats a £40 per month saving straight away. I will leave it to others who have more up to date experience with SOA's to go through the whole thing with you but dont worry - things can be changed around. You have come to the right place. xoopsx

consultant31

Your mobile bill is huge, can you downgrade it at all?
Can you cancel Sky?
My AOL is £14.99 a month, ring them and say you want it at that price (it's what I did when I found out someone else had it cheaper than me and it worked)
I don't see anything for food and household expenses, have you forgotten to add them in?

Fortheloveofmoney

Well done for posting. It's a big step!!

Is the figure for Life Insurance correct? £172.09 per month works out at £2065.08 per year :eek: That's your partners whole salary for a month and a half every year.

tealady

Fuel £120 per month. How big is your house? This seems very high, you need to look at what is causing this. Things like having showers not baths NEVER leave anything on standby, turn heating down bvy 1degree, all this will help. And remind everyone that lights turn off as well as on.

debrag

tealady I think fuel is petrol not heating.

Did you get a 100% mortgage that is high.

Get broadband with sky as well as phone or go to virgin 3 for £30

Move your council tax to 12 months not 10.

You have food under your husbands outgoings. £150 is for th both of you right? It can be cut down.

What is BT if you have phone with sky?

Look around for cheaper insurances

joeblack066

Going-under-fast wrote: »

After putting my thread on yesterday it was recommended that I do a statement of affairs, It took sometime but here it is.

Im selling my house because I took on a mortgage which has proven to be too much for us to handle so ive changed to interest only to try and help matters, I also have a secure loan on the mortgage which we took out with the house (I have since learned that Martin hates them! Whoops!):money:
I stand to make no profit from the house sale by the time I pay estate agents etc. Plus Northern Rock will not let me reduce my mortgage as they say my credit score isnt good enough. Im tied in with them for a further 3years and on selling my house I will have to pay them £5000.00 its not a good situation.

Anyway here is what I have to pay out every month and its really getting me down and cant see anyway out. would greatly appreciate anyones advice to help me through this and become DEBT FREE!!!!!

My Salary £1500.00 (this varies sometimes more, but can be less)
Partners Salary £1380.00 (Always)
Total Income £2880.00

Mortgage £978.38 (Inerest only)
Coucil Tax £141.00
Water £28.18
Gas & Elec £44.00
House Insurance £39.40
B.T. £24.00 ***What is this plus 'Sky and phone?***
Mobile £50.00 (approx)
Car Insurance £30.42
Life Insurance £172.09 ( joint and covers everything crititcal illness etc) ***you need to get this cheaper! Even £20 a month cheaper would help!***
Contact Lens £13.00
Sky & Phone £50.00 ***see above***
T.V. £10.99
Fuel £120.00
A.O.L. £17.99

This is where it gets really horrible........

Credit Cards

Virgin Balance £2878.43 Limit £4100.00 Apr 24.9% (How rude!)min pay £80.00
LLoyds TSB Platinum Balance £999.79 Limit £15000.00 Apr 15.75 min pay £20.00
Liverpool Victoria Balance £6622.20 Limit £8100.00 Apr 16.62 min pay £133.00
Barclaycard Balance £164.08 Limit £3500.00 Apr 19.9 min pay £5.00
Tesco Personal Loan Amt £10000.00 repayments £230.00 Time left 53months at 6.7% apr

Overdarft £450.00 (Always over that and incurr charges)

My Husband

Credit cards
egg £3000.00
barclaycard 0% interest for 14 months £3000.00
Overdraft £1800.00
Fuel £150.00
Car Insurance £30.00
Food £150.00

Im shaking as i write this, its so horrible to be in this situation. Please can anyone Help?????

I have added all this up, and as you haven't listed the min payments on your DH CC's have assumed them at £50 each, and it comes to £2617.45 This means that technically you should have £265pcm spare, which obviously you don't or you wouldn't be panicking, so job no. 1, start a spending diary to see exactly where this gets frittered away.
Job no 2, make the adjustments as listed if you possibly can, and this will give you another £60 at least giving you spare cash each month of £325+.
Now as you are in your 'lock in ' period with your mortgage, is selling the best option? I think you need to talk to CCCS or Payplan to see if you can find an alternative to giving away £5k. Either that, or increase your income, watch your spending, and snowball your debts clearing the highest APR's 1st
Could you take in a lodger? You can charge up to £75pw without it affecting your tax, so even after a small increase in utilities it would still be clearing you an extra £200 pcm.
Can either of you get a 2nd job. Again, an extra £50 per week may not seem much, but add it to rent paid and your current spare cash after you've made a few changes and you could have £725+ per calendar month to throw at your debts.

tealady

debrag wrote: »

tealady I think fuel is petrol not heating.

You're right, I've been awake since 2am ish so my eyes are going square now!

Going-under-fast

well done, you reduced your debt from 50k to 11k thats really impressive. how did you do it????? I think we will have to move back home to my parents to clear the debt thats why we are selling the house! Thank you so much for your message. It really helps to know that your not the only one!

mumsyrach

Hi, just read your post, just a thought but if your able to move in with you Mum, then why not rent out the house for a bit til you can get your finances more under control? That way you wont have to pay utilities or council tax on the property, obviously depending on the size of the house and the area, it should effectively pay for the mortgage!? hope you get it all sorted x x