Debt management needed

mocktudorland · 31 December 2011 at 7:35PM

Hi MS Experts
I'm very pleased to have found your site!

FYI - I have reviewed the checklists and initial pages and it looks like I an not in Debt Crisis but will be soon if I don't start managing my money/debt properly.

I have created as suggested on the First time posters page a SOA list.

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)

Total monthly income ................................3,200
Monthly expenses (incl. HP & secured loans) 2,850
Available for debt repayments ...................350
UNsecured debt repayments ...........................667
Amount short for making debt repayments -317

Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) ......................349,500
Total Secured & HP Debt .....................-124,597
Total Unsecured Debt .............................. -63,192
Net Assets ............................................. 161,711

Household Information
Number of adults in household 2
Number of children in household
Number of cars owned 1
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 2200
Partners monthly income 1000
Benefits 0
Other income 0
Total monthly income 3200

Expenses Amount(£)
Mortgage 640
Secured/HP loan payments 0
Rent 0
Management charge (leasehold property) 0
Council tax 159
Electricity 92
Gas 0
Oil 0
Water Rates 45
Telephone (land line) 0
Mobile phone 31
TV Licence 12
Satellite/Cable TV 0
Internet services 83
Groceries etc. 625
Clothing 20
Petrol/diesel 110
Road tax 10
Car Insurance 28
Car maintenance (including MOT) 20
Car Parking ............................ 15
Other travel ................. 30
Childcare/nursery.............. 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 10
Pet Insurance/Vet bills ........ 0
Buildings Insurance .......... 48
Contents Insurance .......... 0
Life Assurance ................. 33
Other Insurance .................. 39
Presents (birthday, christmas etc.) 20
Haircuts ............................ 10
Entertainment .................... 50
Holiday ........................... 10
Emergency Fund ............... 10
Card Holder Protection costs 64
Bank Charges - .................... 86
Assurance ............................. 32
Endowment 2 .................... 117
Endowment 1 ...................... 53
Pension payment ................... 143
Total monthly expenses 2670

Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 124597 (640) 4
Secured & HP Debt totals 124597 - -

Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Barclaycard 635 12 21.9
Co-Op 8426 166 20.1
Virgin 3272 61 20.6
Belgium Tax Yet 2B Paid 36822 150 0
HMRC 5500 150 3
Bank Overdraft 2000 50 12.7
Santander 5329 53 15.9
MBNA 1208 25 18.9
Unsecured Debt totals 63192 667 -

Asset Description Value (£)
Cash .................................... 0
House Value (Gross) 300000
Shares and bonds 0
Car(s) 4500
Other assets (e.g. endowments, jewellery etc) 45000
Total Assets 349500

Personal Family Loans
Mother – Car Loan – (£5,000) - Must pay back in full by March 2012
Father-In-Law (£4,200) – No deadline on loan
Son (£900) – No deadline on loan

Looking forward to your suggestions
Steve

MFWannabe · 31 December 2011 at 7:46PM

Hi
Can you please do an soa using the on www.makesenseofcards.com

It is the preferred one on here as it easily lists all outgoings and incomings and debts and amount left over. Then all the lovely people on here will be along to help you

rising_from_the_ashes · 31 December 2011 at 7:46PM

Hi Mock, well done for posting, it's the first step and often the hardest.

The first place to start would be to post the SOA in the "MSE format" - it makes it a lot easier for us to offer advice http://www.makesenseofcards.com/soacalc.html

mocktudorland · 31 December 2011 at 7:58PM

OK. Thanks for the quick reply.
Will repost my SOA via the suggested links/format
Steve

thriftychap_2 · 31 December 2011 at 8:23PM

Blimey, thats about 75k plus the mortgage! A SOA would be advantageous!

Good luck, a new year a new start! You will gets lots of help on the board. Is everyone in your family on board with the aim of reducing this debt?

mocktudorland · 31 December 2011 at 9:40PM

Have updated my SOA above

Awaiting your candid comments.
S

MFWannabe · 31 December 2011 at 9:49PM

Sorry but you really need to fill out the soa on the link above that Rishing from the Ashes posted for you. This makes things so much clearer for us. I know it may seem like a pain, but it will be worth it when you get loads of good advice

rising_from_the_ashes · 31 December 2011 at 9:51PM

Ffew comments from me below - it's still in a strange format so sorry if I miss something obvious:o

mocktudorland wrote: »

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)

Total monthly income ................................3,200
Monthly expenses (incl. HP & secured loans) 2,850
Available for debt repayments ...................350
UNsecured debt repayments ...........................667
Amount short for making debt repayments -317

Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) ......................349,500
Total Secured & HP Debt .....................-124,597
Total Unsecured Debt .............................. -63,192
Net Assets ............................................. 161,711

Household Information
Number of adults in household 2
Number of children in household
Number of cars owned 1
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 2200
Partners monthly income 1000
Benefits 0
Other income 0
Total monthly income 3200

Expenses Amount(£)
Mortgage 640
Secured/HP loan payments 0
Rent 0
Management charge (leasehold property) 0
Council tax 159
Electricity 92 This is high - even with no gas. have you checked usage / comparison sites?
Gas 0
Oil 0
Water Rates 45 Have you got a water meter - appears high for 2
Telephone (land line) 0
Mobile phone 31 Not too bad but try to lower package / switch to PAYG
TV Licence 12
Satellite/Cable TV 0
Internet services 83:eek: This is HUGE! You will be able to get this much lower (my landline & broadband is only £25 as a comparison)
Groceries etc. 670:eek: Sorry but for 2 this is astronomical! Try the grocery challenge on the old style board - couples manage on £100/month!
Clothing 20
Petrol/diesel 110
Road tax 10
Car Insurance 28
Car maintenance (including MOT) 20
Car Parking ............................ 15
Other travel ................. 100 Whats this - any way to reduce
Childcare/nursery.............. 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 10
Pet Insurance/Vet bills ........ 0
Buildings Insurance .......... 48 High - try comparison sites - as a comparison mine is equivalent to £15/month (assume incl contents?)
Contents Insurance .......... 0
Life Assurance ................. 33
Other Insurance .................. 39 What's this? Do you really need it?
Presents (birthday, christmas etc.) 20
Haircuts ............................ 10
Entertainment .................... 50
Holiday ........................... 100 Sorry but you can't afford one atm
Emergency Fund ............... 10Needs to be higher - suggest £50
Card Holder Protection costs 64:eek: What's this for?
Bank Charges - .................... 86 Is this your account fee & interest/charges? Have you asked if you can reduce at all?
Assurance ............................. 32 What's this?
Endowment 2 .................... 117
Endowment 1 ...................... 53
Pension payment ................... 143
Total monthly expenses 2850

Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 124597 (640) 4
Secured & HP Debt totals 124597 - -

Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Barclaycard 635 12 21.9
Co-Op 8426 166 20.1
Virgin 3272 61 20.6
Belgium Tax Yet 2B Paid 36822 150 0
HMRC 5500 150 3
Bank Overdraft 2000 50 12.7
Santander 5329 53 15.9
MBNA 1208 25 18.9
Unsecured Debt totals 63192 667 -

Asset Description Value (£)
Cash .................................... 0
House Value (Gross) 300000
Shares and bonds 0
Car(s) 4500
Other assets (e.g. endowments, jewellery etc) 45000
Total Assets 349500

Personal Family Loans
Mother – Car Loan – (£5,000) - Must pay back in full by March 2012
Father-In-Law (£4,200) – No deadline on loan
Son (£900) – No deadline on loan

Looking forward to your suggestions
Steve

Hi Steve, sorry if some of the above sounds harsh ..... your shortfall can easily be wiped out by only reducing the grocery bill - and with other savings mentioned you should be able to make some progress.

You want to start throwing everything spare at the highest debt (but make just above the min payments on the others) - are you up to date on your payments?

The best bit of advice I was ever given was to work out why the debts had happened & dealing with those issues (whatever they are) - otherwise it's easy to build debt on debt on debt etc.

Believe me I know - I climbed my way out of £23k the first time, £17k the second time and it was only when I realised I was up to about £6k again that I sat down and worked out where I was going wrong, addressed those issues and finally began to make progress.

The other thing to do would be to have a chat with one of the debt charities as you may feel it's too much to take on yourself without help - details are in the sticky at the top of the board.

Good luck

DVardysShadow · 31 December 2011 at 9:51PM

FREEZ wrote: »

Sorry but you really need to fill out the soa on the link above that Rishing from the Ashes posted for you. This makes things so much clearer for us. I know it may seem like a pain, but it will be worth it when you get loads of good advice

Agree. And use the courier font - or a fixed font to post. Much easier to read.

Foolish_spendthrift · 31 December 2011 at 9:57PM

The things leaping out at me immediately are Groceries at £670, which for two of you should be more like £150, and Internet Services at £83, which seems incredibly high - what exactly does that cover. Also, if you're in London, why have a car and all associated costs - do you really need it? there are some other scary looking things on there as well, but you need to re-do your SOA so it's easier to read.
I'm afraid I think you are in debt crisis - even with your assets you are living well beyond your means, so you've found MSE just in time.

rising_from_the_ashes · 31 December 2011 at 10:03PM

Sorry I didn't notice the assets (agree with the others.... sorry Steve, it's just so much easier in the "normal" style) - could you sell some of these? £45k of jewelery is a lot when you're so much in debt.

Debt management needed

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