Is it all doom and gloom? Urgent Help Please......

splishsplash

You don't have any amounts entered for clothes or presents either... your child at least will have presents/parties, and will require new clothes, shoes +/- school uniforms and books and things.

Likewise, summer holidays are coming - will you do nothing at all that requires extra spending?

Your figure of £60 pm for groceries - is that realistic? It would be fantastic if it were, but don't forget to allow for toiletries, cleaning products, washing powder etc in that.

Your SOA will help you more if it takes everything into account... that way, there are no nasty surprises that tempt you to use the credit cards again.

For that reason, I would also include an emergency fund, in case you need house/car repairs etc. You don't have any amount in for car maintenance/MOT... is this realistic? You may need tyres/servicing etc.

Have you thought about you and your wife keeping a spending diary for a couple of weeks to see where the money is going? Just carry a notebook and pen, and write in every penny you spend. It can be very illuminating. Once you're aware of where the danger areas are, you can really start tackling the problem.

Merlot

mletters wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1680
Partners monthly income after tax....... 350
Benefits................................ 110
Other income............................ 0
Total monthly income.................... 2140

Monthly Expense Details
Mortgage................................ 620
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 138
Electricity............................. 75 - Far too high
Gas..................................... 40
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 25
Mobile phone............................ 45 - Get rid off completely
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0 - Do you use the libraby:D

Groceries etc. ......................... 60 - Surely this is weekly and not monthly
Clothing................................ 0
Petrol/diesel........................... 140
Road tax................................ 32
Car Insurance........................... 40
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 44
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 14
Contents insurance...................... 14
Life assurance ......................... 0 - This is really really important, above the mobile phone, you need to have life insurance
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1339

Assets
Cash.................................... 0
House value (Gross)..................... 415000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 7000
Total Assets............................ 432000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 131000...(620)......0
Total secured debts........... 131000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Intelligent Finance............25000.....381.......7.8
Capital One....................4691......136.......0
Marks and spencer..............4853......0.........0
EGG............................3500......70........0
ABBEY..........................2860......47........0
RBS............................4069......91........0
Barclaycard....................8010......180.......0
Total unsecured debts..........52983.....905.......-

Monthly Budget Summary
Total monthly income.................... 2,140
Expenses (including secured debts)....... 1,339
Available for debt repayments........... 801
Monthly UNsecured debt repayments....... 905
Surplus(deficit if negative)............ -104

Personal Balance Sheet Summary
Total assets (things you own)........... 432,000
Total Secured debt...................... -131,000
Total Unsecured debt.................... -52,983
Net Assets.............................. 248,017

I have added comments in above, By your SOA, and you haven't included many things like car maintenance, Food for the month, internet, you are not going to break even, my advice to you is either consider selling your home and be totally debt free or get your wife to enter into a DMP with CCCS/Payplan, (very few people are suited to IVA, one of the debt charities will advise you on this).

My only word of advice, is to take action now, not next week, your outgoings are more than your incomings, and unless you so something today, you could end up missing payments etc, and you will not be able to/have difficulty remortgaging if you chose to move house.

Merlot.x.