SOA from a n00b

Xeno

Well, after several false starts over the past year, I feel I'm in a position to be able to start tackling my debts head on. Here goes
:beer:
Income
F/T Job £20k £1300 - rises to £24k in 2 months
P/T Job approx £200
Partners Income
F/T Job £12k £860 - rises to £14k in 4 months
P/T Job £186
Expenditure
(J) Mortgage £625 (£126k @ 6.1% Interest Only) Valued at £140k
(J) Secured Loan £235 (£11k @ 20.5%) Sub-prime company
(P) Personal Loan £150 (£7k @ 9%)
(P) Egg Card (Cancelled!) Balance £400 Don't know APR
(P) Mint Card Balance £600 Don't know APR
Doorstep loan (I know, I know ) £36 borrowed £300 owe £450!
(J) Car Loan £105 for next 24 months, don't know APR or balance
(J) Council Tax £150
(P) Car Insurance £75
(J) B&C £10
(J) Life Insurance £10
(J) Pet Insurance £19
(J) Food £100
(J) Mobile Phones £82 <-- Don't even use one!
(J) Phone/Internet £20
(J) Club membership £40

Also owe £2000 for repair work on my personal car, which will be worth approx £14k once complete, and I'd sell if it would significantly help.
Disputing electricity bill, they claim average usage £170pm for a 2 bed apartment when my neighbours use £50pm... I will have to address this at some point also.

Had problems with credit 5 years ago, 3 defaults & 1 CCJ while a student, all satisfied 4 years ago, paid everything on-time since then. No further lending in the past 12 months. Partners credit very good.

I've probably forgotten something, we used to spend alot on going out for meals, and on eBay etc, but that's been the first cutback. While they are fairly small debts, I was going to attack the credit cards first (currently only making the minimum £20 odd quid) to get a bit of motivation. Would trying to move the secured loan to a better lender be worth it?

Proud to be tackling my debt :T

Lizalu

Hi
Afraid I can't give you much advice but will bump you up for someone cleverer.

Can I just say well done on posting such a full SOA!

whitewing

I had a similar mobile bill to you (with orange) - called cust retentions and they sent me a new phone and cut my bill to £25 a month, and somehow applied a discount so now it's about £16.

I'm sure the mobile can be dramatically reduced.

Food bill seems good compared to many first SOA's - have you been lurking?

angelavdavis

Hi Xeno and welcome to MSE,

Here are my comments/recommendations to start you off.

Xeno wrote: »

Well, after several false starts over the past year, I feel I'm in a position to be able to start tackling my debts head on. Here goes
:beer:
Income
F/T Job £20k £1300 - rises to £24k in 2 months
P/T Job approx £200
Partners Income
F/T Job £12k £860 - rises to £14k in 4 months
P/T Job £186
Expenditure
(J) Mortgage £625 (£126k @ 6.1% Interest Only) Valued at £140k
(J) Secured Loan £235 (£11k @ 20.5%) Sub-prime company
(P) Personal Loan £150 (£7k @ 9%)
(P) Egg Card (Cancelled!) Balance £400 Don't know APR Phone them and find out.
(P) Mint Card Balance £600 Don't know APR Phone them and find out. If it is high - see if you can move this to a lower life of balance credit card.
Doorstep loan (I know, I know ) £36 borrowed £300 owe £450! How long is left on this loan?
(J) Car Loan £105 for next 24 months, don't know APR or balance
(J) Council Tax £150
(P) Car Insurance £75 Is this for one or two drivers? This seems very high, look at comparison sites to check if you could pay less.
(J) B&C £10
(J) Life Insurance £10
(J) Pet Insurance £19 How old are the pets, shop around and if they are young, it could be worth taking a chance and cancelling the cover
(J) Food £100 Is this all you spend?
(J) Mobile Phones £82 <-- Don't even use one! Why the almost £1000 per year bill then?
(J) Phone/Internet £20
(J) Club membership £40 Can this go? Better to put this on the credit cards

In addition, you appear to be missing gas/electric, water rates, birthdays, christmas, holidays, going out, car tax, mot, servicing, etc.

Also owe £2000 for repair work on my personal car, which will be worth approx £14k once complete, and I'd sell if it would significantly help. Yes, sell it and downscale to an older car (for about £2k) if necessary - use the £12k to pay off the £2k repair work, £7k personal loan, £2520 car loan and £450 Doorstep loan. Then you can overpay the credit cards and secured loan (if possible without penalty).
Disputing electricity bill, they claim average usage £170pm for a 2 bed apartment when my neighbours use £50pm... I will have to address this at some point also. So, do the meter readings tally? Don't put off sorting this, do it now. The sooner you know whether this is owed, the better so you can sort out your debts in a better manner.

Had problems with credit 5 years ago, 3 defaults & 1 CCJ while a student, all satisfied 4 years ago, paid everything on-time since then. No further lending in the past 12 months. Partners credit very good.

I've probably forgotten something, we used to spend alot on going out for meals, and on eBay etc, but that's been the first cutback. While they are fairly small debts, I was going to attack the credit cards first (currently only making the minimum £20 odd quid) to get a bit of motivation. Would trying to move the secured loan to a better lender be worth it? If you are likely to be able to reduce the interest rate and can move the debt without penalty (not usually possible - check your terms and conditions).

Proud to be tackling my debt :T

In total, I make it that you are spending more than £100 per month (and that is without the missing outgoings as described) than you earn so suggest you:

• Review the insurances and see if you can get better deals anywhere else
• Keep a spending diary so you can really see what you/OH are actually spending.
• Get rid of mobile phone (or switch to pay as you go and ration to £20 per month.
• Cancel club membership
• Sell the car as specified asap to release you from the bulk of the debts
• Switch the cards if possible to better rates

£18k worth of loans - secured and unsecured. What did you buy with these?Do you have anything to sell that can help the debts in addition to the car? Do you have a spare room to rent out to raise some extra cash?

Xeno

If I sell my car, would it not be better tackle the secured loan first as it's the most expensive?

edit for answers: Water £40, my car is expensed, partners been pretty reliable. The insurance is high for her as she's 21 and only 1 year no claims. Like I said we'll be cutting going out completely until we are in a better position, say 6 - 12 months of frugal living.

In the week I live away from home so I don't really spend alot, the club membership is about the only expenseI have to save me from spending all my time in a bar. I think £100 a month on food for 2 people is about accurate.

Phone bill is 2x phones @ £41 each, but then I got a company mobile so I never use mine, but I can't cancel the contract.

The electric I will not have to pay as the builders are liable for messing up the heating wiring. £170 a month is ridiculous!

Thanks for your advice.

Edit: I work it out as outgoings ~£1800 income ~£2500? Did you just mean my income? I think I can afford approx £500 a month to start with on tackling debt.

angelavdavis

Xeno wrote: »

If I sell my car, would it not be better tackle the secured loan first as it's the most expensive?

If you can, I really suspect you won't be able to overpay or settle this loan early. Hence my recommendation that you need to check ts and cs for this.