on verge of a breakdown

Desperadoo · 13 July 2017 at 6:07PM

Bit of background....my partner and myself owe a lot of money. We are dealing with them separate.as any sort of DMP formal or informal would effect my job . He is going to approach a Debt Charity about his so only my details below.

Household expenses are my half, car expenses are mine....we have two cars as need them for work, cannot use public transport due to nature of work and distance

I owe almost £20k and just cannot make payments any more. I have not missed any payments YET but robbing Peter to pay Paul every week. I have applied for a loan of £20k which has been approved " in principle " and paperwork should be with me tomworrow , my monthly payments for it will be £384...apr is i think 15.7% ( high I know ) and term is 7 years

I just dont know what to do, this is making em so ill. Can anyone see anything I have missed ?

I know no APR for Cards, dont have info to hand but all are over 20%, no 0% available to move debt around . not sure of details of mortgage either, sorry only half filled in

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 2 only my car expenses below

Monthly Income Details
Monthly income after tax................ 1300 my average as self employed , some months may be slightly more
Partners monthly income after tax....... 0 see above only mine on this SOA
Benefits................................ 0
Other income............................ 150 DD housekeeping money
Total monthly income.................... 1450

Monthly Expense Details
Mortgage................................ 282.3 half of mortgage
Secured/HP loan repayments.............. 192 Car on PCP
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 35.1
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 45
TV Licence.............................. 0 hubby pays
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 120 ( 520 total for household )
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 29.87
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 16
Other insurance......................... 13.66
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday.................................0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
hair.................................... 20
Total monthly expenses.................. 1008.93

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(282.3)....0
Hire Purchase (HP) debt ...... 0........(192)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
creation.......................3467.7....105.......0
creation.......................6440.65...165.......0
halifax........................585.......20........0
bank cc .......................500.......20........0
santander......................1829.36...50........0
mbna...........................1679.7....55........0
mbna...........................1081.96...35........0
mbna...........................1171.93...30........0
mbna...........................2539.11...80........0
Total unsecured debts..........19295.41..560.......-

Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 1,008.93
Available for debt repayments........... 441.07
Monthly UNsecured debt repayments....... 560
Amount short for making debt repayments. -168.93

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,295.41
Net Assets.............................. -19,295.41

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

k3lvc · 13 July 2017 at 6:15PM

Firstly - don't have an immediate breakdown (I've been there/done that and it didn't help)

I'm sure others will be along to help soon but my initial comments are

a) If you're in a relationship it's a joint effort so SOA should include all
b) You say you need car but you can't afford it - over 20% of your income goes on it (and you've got no road tax and little in for MOT/service costs)
c) how does 1/3 of a grocery bill of £520 become £120
d) you can't afford a holiday
e) you've hair twice
f) you can't afford £45 for a mobile phone

Al may be harsh but unfortunately true

Desperadoo · 13 July 2017 at 7:19PM

k3lvc wrote: »

Firstly - don't have an immediate breakdown (I've been there/done that and it didn't help)

I'm sure others will be along to help soon but my initial comments are

a) If you're in a relationship it's a joint effort so SOA should include all....
As explained he will be doing a DMP so thought i would do my own , sorry
b) You say you need car but you can't afford it - over 20% of your income goes on it (and you've got no road tax and little in for MOT/service costs) tied in as only had ht car a few months, tax £35 per year
c) how does 1/3 of a grocery bill of £520 become £120 because thats all i can afford :-(
d) you can't afford a holiday taken out
e) you've hair twice taken out
f) you can't afford £45 for a mobile phone tied in for anoother 16 months :-(

Al may be harsh but unfortunately true

thanks for taking the time to reply, i am trying to keep mine separate as hubby will be going for a DMP , I have had a breakdowns twice before so know the signs which is why i am trying to sort this out , or will have nothing to repay anything with

determined_new_ms · 13 July 2017 at 7:49PM

I would say try not to worry too much. Do one thing each day and things will improve. I am a born worrier and I can drive myself into a real state of stress by obsessing over worries and know this is very unhealthy. I get better by taking time to bring relation and happiness to my life daily as well as dealing with the issues.

I do think the soa is difficult to fully assess as it isn't full. You have built up a lot of debt over a long period of time (I assume) so even if your bills should be this you are spending more.

Tomorrow's challenge - I suggest a night off of worrying about this, a bath, film, book, call a friend/family member whatever flats your boat - is to go through bank statements/credit card statements and work out what you are really spending your money on. Keep a spending diary religiously for a month and see where you are frittering away money.

The next thing I would look at is ways to increase your income

if you want a quick win you can easily bring down your grocery shopping bill, mobile bill, look at k3lvc's suggestions they are good.

Hair - when my income decreased I had to give up my expensive hair habit. I went my natural colour (grey specks an all). I couldn't bear to give up my hairdresser, I have curly hair and getting anyone who knows how to cut it well has been a life long challenge. I now get it cut a few times a year. Small changes/compromises

Hiddenidenity · 13 July 2017 at 8:14PM

Groceries at 520 are extortionate! We are a family of 5 with one in nappies and a dog and don't spend half of that. Definitely something you can cut back on.

Gas and electric looks high. check comparison sites.

The car is another killer.

How old is your DD? can she contribute more so the bills are split 3 ways rather than 2?

Mobile phone I know your in contract but speak to them, see if you can lower the amount, always worth asking them.

Do you actually have the loan? IF so make sure you pay off every penny of the debt you have now. Cut up the cards, close the accounts! Otherwise you could find yourself back here with a 20k loan and 20k on cards again. Sounds harsh but it happens so often.

If you do have the loan and you will pay the debt off at least your SOA wont be in a minus. There's obviously bits you can still cut back on too.

Your SOA doesn't include entertainment, or presents? this isn't realistic either.

Hope this helps x

Desperadoo · 13 July 2017 at 9:35PM

Hiddenidenity wrote: »

Groceries at 520 are extortionate! We are a family of 5 with one in nappies and a dog and don't spend half of that. Definitely something you can cut back on. this is something we are looking at

Gas and electric looks high. check comparison sites. where we live only have 2 choices for each but will definelty check this out

The car is another killer. yes I know

How old is your DD? can she contribute more so the bills are split 3 ways rather than 2? she's in her 20's and feels she pays enough .

Mobile phone I know your in contract but speak to them, see if you can lower the amount, always worth asking them.

Do you actually have the loan? IF so make sure you pay off every penny of the debt you have now. Cut up the cards, close the accounts! Otherwise you could find yourself back here with a 20k loan and 20k on cards again. Sounds harsh but it happens so often. waiting on paperwork for it, IF I take it all cards will be closed. Cards have already been destroyed and to be honest once hubby enters DMP because we have a joint mortgage my credit rating will be destroyed too so won't be able to get any more credit which i am pleased about
ere to
If you do have the loan and you will pay the debt off at least your SOA wont be in a minus. There's obviously bits you can still cut back on too. yes thats what i am weighing up

Your SOA doesn't include entertainment, or presents? this isn't realistic either. yes I know but just don't know what to put in and what not

Hope this helps x

thanks for the reply, i have tried to answer what i can

Hiddenidenity · 13 July 2017 at 9:43PM

Desperadoo wrote: »

thanks for the reply, i have tried to answer what i can

DD feels she's paying enough?

She's not a toddler. Show her in black and white what it costs to 'live'

Show her what her bills would be should she find her own place. I can guarantee she won't find even a house share for that amount. You definitely can't here and I'm up north in a rough area.

Please don't take this the wrong way. You're her parent, what you say goes!

Could you speak to the debt charity too? I don't mean take on a DMP as you've said you can't but at least for some advice and someone to talk too? You can't carry the burden all yourself, something has to give before it's your health that does.

Remember this is the start and the worst it can be. It can only get better from now, you've realised there's a problem and you can and will sort it.

Desperadoo · 13 July 2017 at 9:56PM

Hiddenidenity wrote: »

DD feels she's paying enough?

Could you speak to the debt charity too? I don't mean take on a DMP as you've said you can't but at least for some advice and someone to talk too? You can't carry the burden all yourself, something has to give before it's your health that does.

Remember this is the start and the worst it can be. It can only get better from now, you've realised there's a problem and you can and will sort it.

i honestly don't know who to speak to, sitting here in pieces

macman · 13 July 2017 at 10:10PM

A few things stand out to me in your SOA. You cannot possibly only have 2 gas/electricity suppliers: there are at least 40 suppliers on the market. Your figure of £35 for each fuel is also very low.
Landline phone: £10 doesn't even cover line rental.
You've put in zero for water bills-how come?
No buildings or contents insurance? You must have at least the former as a condition of your mortgage. But you have life insurance and another un-named insurance totalling £29.66?
Car: no road tax?
Mobile phone: £45 per month over 2 years means a high end handset, iPhone or top range Android. Sell that for maybe £300-£400, buy a cheap Android handset for £60 and the proceeds should pay your current contract for at least 8 months.
I'm pointing this out not to pick holes in your SOA, but because you can't begin to control your spending unless you know exactly what you are already spending. Good luck.

Desperadoo · 13 July 2017 at 10:24PM

macman wrote: »

A few things stand out to me in your SOA. You cannot possibly only have 2 gas/electricity suppliers: there are at least 40 suppliers on the market. in northern ireland so only have a few suppliersYour figure of £35 for each fuel is also very low. as above this is my half only
Landline phone: £10 doesn't even cover line rental. nternet /phone/tv is £60 per months so put £30 for my half split between phone/internt/tv
You've put in zero for water bills-how come? as above n.ireland and we don't pay water
No buildings or contents insurance? You must have at least the former as a condition of your mortgage. But you have life insurance and another un-named insurance totalling £29.66? the 29.66 is my car and the other insurance is my half of house/contents insurance
Car: no road tax? £35 per year
Mobile phone: £45 per month over 2 years means a high end handset, iPhone or top range Android. Sell that for maybe £300-£400, buy a cheap Android handset for £60 and the proceeds should pay your current contract for at least 8 months. will check what its worth but can't see it being that much

thanks for reply have tried to answer your questions

Alexland · 13 July 2017 at 10:43PM

Hi

I really sympathise and hope you find a positive way forward. I agree that if DD is in a position to pay a fair percentage of the utility bills it would be very helpful.

It's worth checking you are on a competitive mortgage deal. Is there any possibility your credit rating would let you shift the debt onto a zero interest credit card or maybe extend the mortgage value or term?

On the supermarket could you shift down to own brand, buy wonky veg, avoid ready meals & snacks or give up alcohol etc? How much of this spend is really yours?

Are you entitled to any tax breaks or have you previously overpaid? Do you have family, friends or a local credit union that might lend at a lower rate?

Is there anything you can do to boost you family's monthly income? Do you have any assets to sell on eBay? Could you do online surveys, switch banks, etc to earn a bit more? Even low value stuff adds up.

Hope at least one of those ideas works for you.

Alex

on verge of a breakdown

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