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  • FIRST POST
    • strayduck
    • By strayduck 14th May 18, 8:46 PM
    • 3Posts
    • 0Thanks
    strayduck
    Help with huge debts
    • #1
    • 14th May 18, 8:46 PM
    Help with huge debts 14th May 18 at 8:46 PM
    Hello,

    I have accumulated huge debts due to a gambling addiction. This is being addressed with counselling and husband having control of my back cards and accounts etc. I now need to tackle the finance side of things whilst trying to minimise the impact on him and my child.

    Below is my SOA any suggestions grafefully received.

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 2500
    Partners monthly income after tax....... 1300
    Benefits................................ 87
    Other income............................ 0
    Total monthly income.................... 3887


    Monthly Expense Details

    Mortgage................................ 1263
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 222
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 16
    Mobile phone............................ 50
    TV Licence.............................. 13
    Satellite/Cable TV...................... 15
    Internet Services....................... 15
    Groceries etc. ......................... 250
    Clothing................................ 50
    Petrol/diesel........................... 250
    Road tax................................ 25
    Car Insurance........................... 60
    Car maintenance (including MOT)......... 40
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 250
    Other child related expenses............ 20
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 20
    Contents insurance...................... 20
    Life assurance ......................... 110
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    Haircuts................................ 30
    Entertainment........................... 200
    Holiday................................. 40
    Emergency fund.......................... 40
    Total monthly expenses.................. 3159



    Assets

    Cash.................................... 0
    House value (Gross)..................... 340000
    Shares and bonds........................ 0
    Car(s).................................. 18000
    Other assets............................ 1000
    Total Assets............................ 359000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 296000...(1263).....0
    Total secured & HP debts...... 296000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    natwest loan...................10700.....212.......5.69
    natwest od.....................7000......100.......0
    natwest ccard..................3040......59........18.9
    barclaycard....................4000......60....... .18.9
    hitachi loan...................10000.....212.......3.9
    halifax loan...................6900......170.......14.9
    halifax ccard..................4000......59........4.9
    Total unsecured debts..........45640.....872.......-



    Monthly Budget Summary

    Total monthly income.................... 3,887
    Expenses (including HP & secured debts). 3,159
    Available for debt repayments........... 728
    Monthly UNsecured debt repayments....... 872
    Amount short for making debt repayments. -144


    Personal Balance Sheet Summary
    Total assets (things you own)........... 359,000
    Total HP & Secured debt................. -296,000
    Total Unsecured debt.................... -45,640
    Net Assets.............................. 17,360
    Last edited by strayduck; 15-05-2018 at 10:25 AM.
Page 1
    • sourcrates
    • By sourcrates 14th May 18, 10:14 PM
    • 14,025 Posts
    • 13,280 Thanks
    sourcrates
    • #2
    • 14th May 18, 10:14 PM
    • #2
    • 14th May 18, 10:14 PM
    Hi,

    Welcome to the forum.

    At first glance your food bill is massive, is your CT really 222 per month ?

    Is your house in joint names ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • JayRitchie
    • By JayRitchie 15th May 18, 12:05 AM
    • 19 Posts
    • 16 Thanks
    JayRitchie
    • #3
    • 15th May 18, 12:05 AM
    • #3
    • 15th May 18, 12:05 AM
    Is that mortgage value correct - 296,000? It looks way too high for your income level.
    • strayduck
    • By strayduck 15th May 18, 10:28 AM
    • 3 Posts
    • 0 Thanks
    strayduck
    • #4
    • 15th May 18, 10:28 AM
    • #4
    • 15th May 18, 10:28 AM
    My apologies the SOA was incorrect and have edited original post. Also its below for reference.

    Food is actually 250
    Yes, council tax is 222
    The house is in joint names. Its a help to buy property. I am on 43k and partner is 30k
    Partner took out an additional loan last year to help me but i didnt tell him the full truth and got into a bigger mess. He pass 600 for the loan so only puts in 1300.

    We got the house just before my addiction kicked in.

    Believe the house has to be sold and is on the market.

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 2500
    Partners monthly income after tax....... 1300
    Benefits................................ 87
    Other income............................ 0
    Total monthly income.................... 3887


    Monthly Expense Details

    Mortgage................................ 1263
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 222
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 16
    Mobile phone............................ 50
    TV Licence.............................. 13
    Satellite/Cable TV...................... 15
    Internet Services....................... 15
    Groceries etc. ......................... 250
    Clothing................................ 50
    Petrol/diesel........................... 250
    Road tax................................ 25
    Car Insurance........................... 60
    Car maintenance (including MOT)......... 40
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 250
    Other child related expenses............ 20
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 20
    Contents insurance...................... 20
    Life assurance ......................... 110
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    Haircuts................................ 30
    Entertainment........................... 200
    Holiday................................. 40
    Emergency fund.......................... 40
    Total monthly expenses.................. 3159



    Assets

    Cash.................................... 0
    House value (Gross)..................... 340000
    Shares and bonds........................ 0
    Car(s).................................. 18000
    Other assets............................ 1000
    Total Assets............................ 359000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 296000...(1263).....0
    Total secured & HP debts...... 296000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    natwest loan...................10700.....212.......5.69
    natwest od.....................7000......100.......0
    natwest ccard..................3040......59........18.9
    barclaycard....................4000......60....... .18.9
    hitachi loan...................10000.....212.......3.9
    halifax loan...................6900......170.......14.9
    halifax ccard..................4000......59........4.9
    Total unsecured debts..........45640.....872.......-



    Monthly Budget Summary

    Total monthly income.................... 3,887
    Expenses (including HP & secured debts). 3,159
    Available for debt repayments........... 728
    Monthly UNsecured debt repayments....... 872
    Amount short for making debt repayments. -144


    Personal Balance Sheet Summary
    Total assets (things you own)........... 359,000
    Total HP & Secured debt................. -296,000
    Total Unsecured debt.................... -45,640
    Net Assets.............................. 17,360
    • andydownes123
    • By andydownes123 15th May 18, 11:41 AM
    • 206 Posts
    • 288 Thanks
    andydownes123
    • #5
    • 15th May 18, 11:41 AM
    • #5
    • 15th May 18, 11:41 AM
    Firstly - life assurance, this seems high?

    Also, I agree with one of the points. Me and partner are earn about the same as you and your partner. Our house is worth 130k on about 450 pcm mortgage. This is, as you can imagine, very comfortable compared to our wages, however it does mean come disaster (lose job, gambling addication for example), we can cope on one wage. We would just about continue a nice-ish lifestyle. Your house is three times as much, plus the associated costs of a larger home, council tax, maintenance etc.

    Have you considered downsizing?
    • strayduck
    • By strayduck 15th May 18, 12:37 PM
    • 3 Posts
    • 0 Thanks
    strayduck
    • #6
    • 15th May 18, 12:37 PM
    • #6
    • 15th May 18, 12:37 PM
    House is on market as we speak.
    We live in south west in an area that is very expensive but looking to move further out.

    Partner has condition which makes his life assurance very expensive.
    • CIS
    • By CIS 15th May 18, 12:59 PM
    • 10,483 Posts
    • 6,053 Thanks
    CIS
    • #7
    • 15th May 18, 12:59 PM
    • #7
    • 15th May 18, 12:59 PM
    Have you spread the council tax payments over the whole year (12 payments) rather than the standard 10 payments ?
    I no longer work in Council Tax Recovery but instead work as a self employed Council Tax specialist. My views are my own reading of the law and you should always check with the local authority in question.
    • Gladioli
    • By Gladioli 15th May 18, 1:36 PM
    • 44 Posts
    • 102 Thanks
    Gladioli
    • #8
    • 15th May 18, 1:36 PM
    • #8
    • 15th May 18, 1:36 PM
    OK, you are in a bit of a financial crisis however before you take the big decision of selling the house, you really need to take some advice from someone like stepchange who provide free advice to people in debt. Even if you get the asking price for the house you will not clear your debt. Have you considered anything else, such as a debt management plan?
    • jubilee14
    • By jubilee14 16th May 18, 2:24 PM
    • 279 Posts
    • 852 Thanks
    jubilee14
    • #9
    • 16th May 18, 2:24 PM
    • #9
    • 16th May 18, 2:24 PM
    I agree with Glaioli irrespective if your house value/mortgage puts you at the top end of expenses, the mortgage isnt really that much compared to the value, that would be the last thing i let go. Your 144 short to cover payments which would be a stay still situation.
    You have 200 on entertainment for 3 of you which seems a bit high and Sky/BB/Phones - all of these can be cut down/out before i would tackle the mortgage. But what ever decision you make once your in a DMP you cant get a mortgage until your credit rating settles down. We have that problem, i see others paying less than me but to be fair with interest rates generally low as they are its not my main worry.

    I would say though that for the value of your house your utilities do look rather low.

    for sure talk to Stepchange see your options as i doubt the sale of your house would solve all the problems. Its just DMP takes a lot longer - but hey my past 5.5 years really has flown by and I am 10 months away from being df x good luck
    LBM Sept 2012
    started DMP 1.11.12
    Debt 37012/5649 DFD Oct 2019 about April 2019
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