what to do - help needed

loobie

Our tax credits have gone down by £30 a week. I have just started a new job and we are in a mess. Dh doesn't see it, his motto is "we'll be OK", but I know we won't.

He pays for all the bills, mortgage, etc, so his contribution is a real no brainer.

Here is the downfall.

141.33 x 4 = 565.32 - my wage
99.99 x 4 = 399.96 - tax credits
125.8 - child benefit


Total = 1091.08

Direct debits = 395.46 - includes loan payment 214.15

Credit Cards – 236 :embarasse

Nursery – 84

Leaves – 375.62 for everything else - food petrol, saving for our holidays

So, to put it mildy, we are totally screwed.

~Beanie~

How many children do you have? How much petrol do you use per month? To be honest, you can't afford to save for a holiday at the moment. Can you list what credit cards you have, the balances, minimum payments and interest rates? What are the direct debits for if your husband pays all the bills?

It may be better if you could post a full SOA and list everything that you pay for.

RAS

Hi love for starter, you need to multiple the income by 4.3 so that is 1172.91 per calendar month

But - the issue may be the split in responsibilities between you and OH.

Can you post up a full SOA, with his and your income and expenditure?

Also if you post the APRs and minimum payment plus maximum amounts on those CCs, there may be some scope to sort things out.

loobie

Hope this all makes sense

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 565.32
Partners monthly income after tax....... 890
Benefits................................ 525.76
Other income............................ 0
Total monthly income.................... 1981.08

Monthly Expense Details
Mortgage................................ 429.14
Secured loan repayments................. 214.15
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 110
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 33.24
Telephone (land line)................... 5
Mobile phone............................ 55
TV Licence.............................. 11
Satellite/Cable TV...................... 55
Internet Services....................... 10
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 5
Car Insurance........................... 42.95
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 84
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 18.98
Contents insurance...................... 0
Life assurance ......................... 91.63
Other insurance......................... 0
Presents (birthday, christmas etc)...... 12
Haircuts................................ 2
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1599.09

Assets
Cash.................................... 0
House value (Gross)..................... 128000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 133000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 85000....(429.14)...5.04
Secured Debt.................. 15000....(214.15)...11.7
Total secured debts........... 100000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
First Direct...................4451......140.......4.95
Amazon.........................1874......56........6.95
sky............................2800......50........0
Total unsecured debts..........9125......246.......-

Monthly Budget Summary
Total monthly income.................... 1,981.08
Expenses (including secured debts)....... 1,599.09
Available for debt repayments........... 381.99
Monthly UNsecured debt repayments....... 246
Surplus(deficit if negative)............ 135.99

Personal Balance Sheet Summary
Total assets (things you own)........... 133,000
Total Secured debt...................... -100,000
Total Unsecured debt.................... -9,125
Personal net worth...................... 23,875

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

loobie

We have 2 children, 1 aged 5.5 and the other aged 2.

We try to spend just £25 a week on petrol.

The direct debits are: the loan, my mobile, sky, my life insurance, loan insurance, car insurance and house insurance.

RAS

Loobie

Thanks for an excellent SOA. Will come to that in a moment. really sorry to see that you ahve a large secure loan at a higher APR that your CCs.

Can you advise a few things?

What is the limit on the CCs?

Can you over pay on the loan without penalty?

Is the mortgage repayment or interest only?
Can you have a look at the loan and see if it would pay out if either you or OH lost your jobs or had you income cut substantially? if not, maybe you should reclaim on it and get it cheaper elsewhere.

Looking at all those insurances costs, could you have a look at the Insurance tab on the front page of this site and check out the comparision sites? I suspect that you could get all of them cheaper elsewhere, the life insurance looks massive. And if you sign up for www.quidco.com or one of the other cashback sites, you could get money back for swapping.

RAS

A few ideas below

loobie wrote: »

Hope this all makes sense

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 565.32
Partners monthly income after tax....... 890
Benefits................................ 525.76
Other income............................ 0
Total monthly income.................... 1981.08

Monthly Expense Details
Mortgage................................ 429.14 - interest only or repayment?
Secured loan repayments................. 214.15
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 110
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 33.24
Telephone (land line)................... 5
Mobile phone............................ 55 - this is very high, can you cut the package back or go PAYG?
TV Licence.............................. 11
Satellite/Cable TV...................... 55 - There are cheaper deals around - you may be able to get a bundle for £35
Internet Services....................... 10
Groceries etc. ......................... 250 - For two adults and two small kids, this could be cut back. Head over to the Money Saving Old style board for ideas.
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 5
Car Insurance........................... 42.95 - check if this can be had cheaper - unless you are very young or have points
Car maintenance (including MOT)......... 0 - you need to put aside a small amount each month for this
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 84
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 18.98
Contents insurance...................... 0
Life assurance ......................... 91.63 - this is massive
Other insurance......................... 0
Presents (birthday, christmas etc)...... 12
Haircuts................................ 2
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1599.09

Assets
Cash.................................... 0
House value (Gross)..................... 128000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 133000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 85000....(429.14)...5.04
Secured Debt.................. 15000....(214.15)...11.7
Total secured debts........... 100000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
First Direct...................4451......140.......4.95
Amazon.........................1874......56........6.95
sky............................2800......50........0
Total unsecured debts..........9125......246.......-

Monthly Budget Summary
Total monthly income.................... 1,981.08
Expenses (including secured debts)....... 1,599.09
Available for debt repayments........... 381.99
Monthly UNsecured debt repayments....... 246
Surplus(deficit if negative)............ 135.99

Personal Balance Sheet Summary
Total assets (things you own)........... 133,000
Total Secured debt...................... -100,000
Total Unsecured debt.................... -9,125
Personal net worth...................... 23,875

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

loobie

CC limits are:

First Direct - 5100
Amazon - 3200
Sky - 3000

We can overpay on the loan without penalty.

Mortgage is interest only, but fixed rate coming to end in November

Loan Ins - was £84, but found it for £21

Life Ins - it's for Dh, and is tied into the mortgage. We can change mortgage providers, but if we cancel the life insurance policy we ahve to pay a penalty.

tallyhoh

Your insurance payments are HUGE, especially your life assurance. I have never, ever seen one for that much.

£91.63, now would that be something they sold along with your mortgage by any chance? Suggest you pop along to your provider & tell them you cannot afford it & to give you basic life cover, as from now.

For comparison mine is £8.77 a month & you can get it cheaper. I bet one of you may already have life cover at work, check it out.

Edit: Just saw your post above re: penalty. It might be worth paying it to get out.

RAS

Loobie

How much or how many outstanding payments on the loan

And - are you absolutely, absolutely sure paying the loan off early will reduce your monthly payments and your total interest owed?

tallyhoh

You may not have to change mortgage provider to get out of the life insurance bit. Check your paperwork carefully. Just because you had the life ins at the same time doesnt mean you may not be able to cancel it. Its absolutely mammoth!!!!!