My SOA

hugedebt

Ok, so this looks really bad, and I am the first to admit that it is :eek:

INCOME:

SALARY 1 - £1900
SALARY 2 - £1900
CHILD BENEFIT - £120
HUSBAND IS CURRENTLY TRYING TO GET A SMALL PART TIME BUSINESS SET UP TO EARN SOME EXTRA CASH ON HIS DAYS OFF!

TOTAL: £3920

EXPENDITURE:

Mortgage £1650 - WE ARE PUTTING HOUSE ON THE MARKET, RENT WILL BE £1000
Picture Secured Loan £515 - HOPEFULLY WILL PAY 10K OFF WHEN HOUSE SELLS
Council Tax £150 - WILL REDUCE SLIGHTLY WHEN IN RENTED
Service Charge £21 - WILL BE GONE WHEN HOUSE SOLD
Water £46
Buildings/Contents Insurance £35 - WILL REDUCE TO £13 WHEN HOUSE SOLD
Life/Mortgage Insurance £57 - WILL REDUCE TO £32 WHEN HOUSE SOLD
Gas £45
Electric £30
TV Licence £12
Internet £10
Food & Household Shopping £600 - WILL SAVE HERE - JUST NEED TO LEARN HOW!
Clothing £80
Telephone/Mobiles £130 - AM TRYING TO GET A BETTER DEAL
Birthdays/Xmas £35
Holiday £40
Union Subs £46
Haircuts £10
Glasses/Contacts £47 - WILL BE CHANGING HUBBYS CONTACT LENSES - MAYBE DOWN TO £34
Dentist £20
Gym £31 - HUBBY IS GOING TO TRY & GET OUT OF CONTRACT
Kid's Activities £10
Taxi's £80
Car Expenses £175
Eating at Work £100 - THIS WILL BE CUT DRASTICALLY
Interest on Overdrafts £25

DEBTS:

EGG CC £5500 OWED AT 16.9% - £105 (0% UNTIL SEPT 08)
EGG CC £10500 OWED AT 19.9% - £205
LLOYDS TSB CC £8500 OWED AT 15.9% - £170 (50% OF BALANCE IS 0%)
NORTHERN ROCK LOAN £16500 OWED AT 7.9% - £240 (72 MONTHS TO GO)
NEXT DIRECTORY £500 OWED AT 26.5% - £50
ARGOS CARD £480 OWED AT 27.9% - £20 (HALF AT 0% UNTIL APRIL 08)
ABBEY OVERDRAFT £1900
ABBEY OVERDRAFT £900
HALIFAX OVERDRAFT £1500
NORTHERN ROCK LOAN £30000 OWED AT 8.1% - £200 (RUNS ALONGSIDE MORTGAGE BUT RATE INCREASES ON SALE OF HOUSE)

TOTAL £4990

Not good, at all.

We do have some plans in place to reduce outgoings - some drastically......I have noted these alongside, but i'd love to hear if anyone can help me cut back more!!

I think I have to have permission from Picture to sell the house as they hold a second charge on it? Does anyone know if this is correct?

Also, if you are wondering how we are surviving, we are using savings to pay our debts at the moment & not putting any of the money away on the budget.

Thanks for your time & support,

E xx

_-*Sally*-__3

I am by no means "qualified" to comment really, but I DO think that surely selling house and renting is a backwards step..... Is there areason (aside from cash) that you are selling?

Although looking at your SOA and your income I would think you could balance it all out without selling the house.

hugedebt

We didn't really see any way of keeping the house and paying all these debts off. You do raise a very good point though, thanks. What do others think? Can we save ourselves & our house?? I know I need to go to CCCS but I really want to go with better figures.

perfectlypoor

How many children do you have, any pets?

CreditMonkey

Dont sell your house. Contact CCCS. As far as i'm aware Picture won't let you sell your house unless you are able to pay them back all the money you owe them. With out the house the loan is worthless to them so think thats a no go. CCCS will take care of your unsecured loans and might be worth talking to secured loan companies about making reduce payments for a month or two to help. Looking at your SOA there are so many places to save money and one of the experts will detail where soon i'm sure.

I repeat though 'Don't sell the house'. Thats the last last resort especially with kids. When my lightbulb moment happened its one of the routes i considered but so glad now i never did.

The quote 'know i need to go to CCCS but wanted to go with better figures' is a classic guilt/ashamed quote. I love the fact i have admitted my debt, i even tell my friends all about it, i ring my creditors more now than they have ever rung me and have never been made to feel ashamed or stupid. Like us you are just a normal hardworking person who is bad with money and has made some mistakes.

perfectlypoor

Can the taxi costs be cut down by getting the bus, can you meal plan to save money there and take packed lunches to work, I know these are small things but will help. How big is your house, could you sell and downsize instead of renting?

leoetal19

on your soa there are so many areas you can trim b4 the house-£680 food household n clothes-could be cut by 75% easily and others too the house?? may be your biggest purchase /asset but its your home. take some independent advice-FREE b4 u jump xx

wydsiwyrg

Hi there hugedebt.

I'm just going to answer to your "to sell, or not to sell" dilemma at the moment. There are many areas you could cut back in your SOA - but I'm sure you know those. You seem to be doing this in a balanced way.

You've definitely taken on a mortgage which is above your means; in my opinion. I WOULD consider selling your place IF and only IF 1) it will ease things considerably (which it seems it will). 2) You want to sell the place in any case within the next 5 years (either to move "up the ladder", or to move abroad, or for any other reason). 3) If you have very little equity in the house (but enough to pay off the secured loans) (by very little, I would mean 5-10% above your loans/mortgage by the date of renewal of your fixed rate). 4) if you are on an interest only mortgage.


Hope this gives some food for thought. I wouldn't paint across the board and say "don't sell", because in my eyes now is probably the best time to sell. However, I do not want to say "do sell"; if this is a home you're planning to keep for many many years, and you can cope, comfortably and keep it.

Tim

_-*Sally*-__3

I would think you could DRASTICALLY cut food, clothes, mobiles
- as they all seem very high to me.... I would think by doing this you could almost half your shortfall.....

Numpty_Monkey

:hello: hi hun welcome to the friendliest place on the net

some others will have better ideas about your SOA, but a few that get my attention
food / work meals - £700 - you could get that down to £200 to £250
have a look on the Money saving old style board http://forums.moneysavingexpert.com/forumdisplay.html?f=33
(hope the link works first time i've tried to do it )
and the lunch log challange thread on here

Clothing - £80 - dont think i've spent that in a year - if you've got young uns, try charity shops and ebay, then you can sell on what they've grown out off... and a bit off extra income for selling other stuff you don't wear.

Phones /internet £140 - look at Sky/virgin packages phone /tv/internet from £30, or at payg mobiles

Union subs £46 - is this a mandatory thing? i think it is for some jobs?

Taxis - £80 :eek: - can this be cut down public transport, or walking( it's good for you:j)

Holidays £40 sorry hun but at the mo this is a luxury Thats £4800 per year on holidays, have a holiday by all means but...is it worth losing your house for??

Other people who have better knowledge will come along and give you better advice than me(this is the first time i've had a go at looking at an soa)

Take care and welcome to the club:T

hugedebt

Thanks for all your replies, you are all so helpful & friendly.

We haven't got any pets, but we have 2 children - 18 months & 4 months.

With regards to selling the house, we may be able to sell it and buy somewhere cheaper, hence avoiding redemption penalties with the mortgage company, & this should keep Picture happy too as they can move the loan across. We have definately taken a mortgage on that is beyond our means....god knows how but I do feel Bl**dy stupid for it .

I am returning to work from maternity leave in a couple of weeks & hubby & I are doing opposite shifts so we don't pay for childcare, hence the taxi costs as I have to get home from the train station at midnight and I don't drive!