soa from emka

emka_2

Hi,
This is my version of an soa
My wages per month £1200
my husband's £1400
child credit 42
total 2642

ougoings
mortgage £ 554.48
a&l loan 253.51
lloyd's loan 282.48
lloyd's loan 217.33
car loan 131.79
0% loan 54.25
life ins 15.01
house build & cont 42.57
unions 64.60
water 38.33
cc tax 79
gas serv 19.40
gas 65
elec 38
sky 48
mobile 48
tel 25
broadband 25
wage cover 15
pet ins 22
scottish widows 35.90
car ins 43.29
car maint 40
food bills 150
kids 80
petrol 200
virgin credit card 122
sky cr card 60
outings 300
overdraft 3200
total 6269.94

Loans totalled 30 000 when I took them out and the credit cards total 7700, at the moment, because all this debt is in my name I have a bad credit score. The bank want me to settle these debts on my mortgage, by incurring a penalty with my existing mortgage of £1700 and going with c&g at a rate of 6.9% borrowing £89000. They said if we did this they would give us a bridging loan with nothing to pay for 3 months until the mortgage goes through. I feel cornered and let down by the bank as they have said they carried on giving me the overdrafts, because I could afford; which I obviously couldn't. My mariage is nearly over, but I still have to stay with him as we cannot afford to separate, due to this debt, and my life will be a complete misery with him until I can pay this debt off and leave him.
i undertand why he's so angry, becasue I never told him, but not out of deviousness just out of stupidly thinking I could deal with paying it off my self, but I've made my bed now lie in it I suppose or at least the settee for the next x amount of years, as apparrently I am too unworthy and useless to sleep in my own bed!!!!!!!! What a mess. By the way the bank manager, who is years younger than I stated it's not that bad, who is she kidding.
Please help as I have to make a decision by tomorrow whether to go with the bank deal or not:embarasse

tyllwyd

Before you do anything, make sure you get in touch with one of the free debt advice charities - CCCS, PayPlan, National Debtline. You need someone who can weigh up all the options for you before you make a big decision like this.

RAS

Hiya

please contact CCCS or NDL, contacts are here http://www.moneysavingexpert.com/loans/debt-help-plan#help

You do not have to make a decision by tomorrow, whatever the bank says. In fact, any offer made with that sort of deadline is best left to lie for a while. It would be very very reasonable to tell them that you are taking independant financial advice from a debt charity before deciding what to do.

The debt charity does need to know.

How much is owed rather than just the monthly amount and the APRs.

How much equity there is house?

RAS

Also, I would strongly advise that both you and OH get another bank account sorted out now.

If you have difficulties, ask for a basic account as there is no credit check. No OD but you can pay DDs, SO and get a card.

emka_2

Hi,
To those who have given me advice, it was really helpful didn't like the impersonal touch of the cccs, but I tried the ndh and they were fantastic and put me on to an independent charity financial adviser. I am still waiting for him to call back, but he did agree to what this present bank manager has to offer, although he is still looking for better deals. I am and have been thinking about opening another account and taking my eventual funds to another bank, such as nationwide. Lloyd's not only has given me more than i feel I can afford, but they have returned dd without prior warning and without good advice following the problem. Their phone line is a shambles and the information I gained there was of little use and indeed basically they gave me the wrong information re these direct debits and also did not help me further ie checking if other debits were going to be returned.
I feel they practice in helping people into debt and then trying to reep the rewards after, in charges, loans and re-mortgaging. Yes, I do know I am not blameless in my situation.
I have at last done an soa, which helped with the phone calls I have had to make. Sole destroying to think I had only 7 years left on my mortgage and now that will be gone, also, for what, it wasn't if I had holidays in bali or somewhere exotic to acrew such debt. It was merely daily living, holidays I should not have gone on and presents that should not have bought.
My one piece of advice to anyone just realising their debt is to tell partners straight away and not hide it, trying to sort it our on your own is stressful and I for one ended it making bad mistake after bad mistake. My husband feels betrayed, can hardly blame him; but he did help to spend it, so at least he has some of the stress I've had for the last year and a half:eek:

RAS

EMKA

Please will you stop thinking about securing this debt on your home. If you cannot pay that back, then you lose the house.

If you do a debt managment plan, then the debt remains unsecured, there is a chance of getting the interest charges stopped and you can increase or decrease the payments if your circumsntaces change. It is a lot safer.

dhassen

Hi emka,

I hope you work things out - I just noticed on the bottom on your SOA - it says Overdraft 3200? surely you mean that's what you owe, not what the monthly interest is? It makes your outgoings figure way higher than it seems it should be - although you clearly still need help.

poppyg_2

Emka

It would be better if you could do something like a DMP, however if you feel a loan would be better please post on here with further details about the amount you're going to loan, over what period of time etc etc so that people can advise you regarding budget planning so as not to run up the debt again

Have you tried Payplan to get a view from them, just because CCCS weren't right for you doesn't mean they wont be.

I hope things are a bit better with your husband now, keep us posted

Welshlassie

emka wrote: »

Hi,
This is my version of an soa
My wages per month £1200
my husband's £1400
child credit 42
total 2642

ougoings
mortgage £ 554.48
a&l loan 253.51
lloyd's loan 282.48
lloyd's loan 217.33
car loan 131.79
0% loan 54.25
life ins 15.01
house build & cont 42.57 check this is the cheapest, go through Quidco for cashback
unions 64.60 are these really needed?
water 38.33
cc tax 79 is this paid over 10 or 12 months
gas serv 19.40 do you need this, you may be better saving this into an account should anything happen you have some funds to hand to pay for it
gas 65 this seems quite high have you switched at all
elec 38
sky 48 get rid of this and get freeview
mobile 48 wow, go pagy
tel 25 can this be cut
broadband 25 you can get this much cheaper
wage cover 15 what is this for
pet ins 22 is this the cheapest (what are you insuring btw)
scottish widows 35.90 what's this for?
car ins 43.29 is this the cheapest, again check for quotes and go through quidco
car maint 40 is this actually saved anywhere?
food bills 150 how many is this for
kids 80 what for?
petrol 200 can this be cut at all, walk places, car share etc
virgin credit card 122
sky cr card 60
outings 300 outings where? this really needs to be cut, there are plenty of places you can go free of charge.
overdraft 3200 I hope you mean this is the total OD not monthly interest
total 6269.94

Loans totalled 30 000 when I took them out and the credit cards total 7700, at the moment, because all this debt is in my name I have a bad credit score. The bank want me to settle these debts on my mortgage, by incurring a penalty with my existing mortgage of £1700 and going with c&g at a rate of 6.9% borrowing £89000. They said if we did this they would give us a bridging loan with nothing to pay for 3 months until the mortgage goes through. I feel cornered and let down by the bank as they have said they carried on giving me the overdrafts, because I could afford; which I obviously couldn't. My mariage is nearly over, but I still have to stay with him as we cannot afford to separate, due to this debt, and my life will be a complete misery with him until I can pay this debt off and leave him.
i undertand why he's so angry, becasue I never told him, but not out of deviousness just out of stupidly thinking I could deal with paying it off my self, but I've made my bed now lie in it I suppose or at least the settee for the next x amount of years, as apparrently I am too unworthy and useless to sleep in my own bed!!!!!!!! What a mess. By the way the bank manager, who is years younger than I stated it's not that bad, who is she kidding.
Please help as I have to make a decision by tomorrow whether to go with the bank deal or not:embarasse

I work your outgoings to be £3069.94 you could easily shave alot of that from what I have suggested, maybe as much as £450pm, which would mean you are bringing home more than you are paying out.

If you can rein in some of the spending, sell some things on ebay, car boot sales etc and throw that money at the debt you could it paid off sooner than you think.

Have a look at www.whatsthecost.com/snowball.aspx plug you figures in and it will tell you what debts to pay off in what order and will give you a debt free date.

Well done on trying to sort this out. Once you your head around it you will feel a lot better.

Nala

Welshlassie has made some great suggestions there....I'm also hoping the o/d is the total and not what you're paying each month...and £300 in outings would be a big chunck off the debts.

Only a couple of things. Do you have child benefit to add into your incomings?

Outgoings - have you budgetted for road tax?

emka_2

Hi to you all,
Thank you and I have been in touch with payplan to see if they can help, I'm waiting for them to ring me back.
The od is £3200, but the charge of interest is £30.
Total debt is 40,318
I have about 115000 est value of equity
my current mortgage finishes in 7 years 7 months and is 47,700 @ £554 per month
The bank are trying to push and it would have been easy to jump in and allow them to have their own way, so I am learning very fast, AT LAST, not to jump to the first solution but to wait and investigate all the options and gain help from more experienced dfw's