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  • FIRST POST
    • worried_witless
    • By worried_witless 2nd Aug 18, 1:25 PM
    • 3Posts
    • 1Thanks
    worried_witless
    Help :-(
    • #1
    • 2nd Aug 18, 1:25 PM
    Help :-( 2nd Aug 18 at 1:25 PM
    I'm at work so can't say much at the moment, but please see my SOA. I am behind on lots of payments too, so it's worse than it looks.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1200
    Partners monthly income after tax....... 2200
    Benefits................................ 192.4
    Other income............................ 0
    Total monthly income.................... 3592.4


    Monthly Expense Details

    Mortgage................................ 672
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 122
    Electricity............................. 45
    Gas..................................... 25
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 0
    Mobile phone............................ 140
    TV Licence.............................. 13
    Satellite/Cable TV...................... 55
    Internet Services....................... 32
    Groceries etc. ......................... 400
    Clothing................................ 100
    Petrol/diesel........................... 120
    Road tax................................ 16
    Car Insurance........................... 28
    Car maintenance (including MOT)......... 50
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 60
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 20
    Contents insurance...................... 16
    Life assurance ......................... 35
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 100
    Haircuts................................ 10
    Entertainment........................... 50
    Holiday................................. 0
    Emergency fund.......................... 0
    Endowment............................... 66.3
    Gym x 2 ................................ 30
    Brown bin collection.................... 3.5
    Total monthly expenses.................. 2263.8



    Assets

    Cash.................................... 0
    House value (Gross)..................... 280000
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 280500



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 180000...(672)......1.74
    Total secured & HP debts...... 180000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Lloyds CC......................3526......130.......25
    Barclaycard ...................7317......190.......25
    Sunny x 4......................0.........0.........49.9
    Hitachi Finance................625.......125.......0
    Natwest........................2449......80....... .25
    Paypal.........................1510......120...... .19.99
    Next...........................2383.5....120...... .22.9
    Next...........................100.......5........ .22.9
    Likely loans x 2...............1900......212.......59.9
    Wageday Advance PDL............319.95....106.......288
    Lending Stream.................96.64.....48.32.....1333
    Amigo..........................2288......104...... .49.9
    Total unsecured debts..........22515.09..1240.32...-



    Monthly Budget Summary

    Total monthly income.................... 3,592.4
    Expenses (including HP & secured debts). 2,263.8
    Available for debt repayments........... 1,328.6
    Monthly UNsecured debt repayments....... 1,240.32
    Amount left after debt repayments....... 88.28


    Personal Balance Sheet Summary
    Total assets (things you own)........... 280,500
    Total HP & Secured debt................. -180,000
    Total Unsecured debt.................... -22,515.09
    Net Assets.............................. 77,984.91
Page 1
    • indesisiv
    • By indesisiv 2nd Aug 18, 1:31 PM
    • 6,229 Posts
    • 20,420 Thanks
    indesisiv
    • #2
    • 2nd Aug 18, 1:31 PM
    • #2
    • 2nd Aug 18, 1:31 PM
    Its not terrible as at least you have more coming in than going out.
    But a couple of really simple points.

    Mobile phone bill is huge!!
    TV and internet bill when combined is also huge and can be reduced.
    Other than that if you really do have £88 left each month put the numbers in a snowball calculator and start overpaying. You need to be looking at reducing some of those interest rates fast it will make a big difference.
    “Time is intended to be spent, not saved” - Alfred Wainwright
    • worried_witless
    • By worried_witless 2nd Aug 18, 1:36 PM
    • 3 Posts
    • 1 Thanks
    worried_witless
    • #3
    • 2nd Aug 18, 1:36 PM
    • #3
    • 2nd Aug 18, 1:36 PM
    That's 4 mobile bills, I forgot to say, us both and 2 daughters. Going to threaten to leave Sky but in contract with Virgin for wi-fi.
    • enthusiasticsaver
    • By enthusiasticsaver 2nd Aug 18, 1:42 PM
    • 7,191 Posts
    • 15,633 Thanks
    enthusiasticsaver
    • #4
    • 2nd Aug 18, 1:42 PM
    • #4
    • 2nd Aug 18, 1:42 PM
    I think on those interest rates and if you are behind on payments it will need to be a DMP.

    Contact stepchange but I am sure this is what they will recommend. The interest rates are too high and some payday loans there which are a trap you will find it difficult to get out of. Paying £1240 a month towards unsecured debt on top of £740 for your mortgage (presumably the endowments are to pay off the mortgage?) is unsustainable when being charged interest at those rates.

    There are a few things you could save on your soa but there is no emergency savings and if you are behind on payments I guess that you are overspending and this is the reason for the debt?

    Things you could cut down on are satellite tv, clothing, mobiles as £140 a month is shocking.

    Do you know how the debt occurred in the first place? Have you tried keeping a spending diary or checked your statement to see where you are overspending? Presumably going to payday loans you must have had this increase over quite a long period?

    Now to the good news and there is some.

    Your income is enough to cover your bills, just about. It may in fact be that stepchange will say you are not eligible for a DMP as your outgoings are less than your income even without making any savings. What you really need though is the interest frozen. That involves taking out a DMP, either through stepchange or self managed, writing to your creditors asking them to default you and freeze the interest and then the amount you pay monthly will pay off the debt in probably less than 2 years. This depends on them agreeing to freeze the interest and you will need to keep a tighter rein on your spending.

    If you can manage to live within budget and decide not to do a DMP tackle the debts one at a time starting with the most expensive. Cut up credit cards and make any savings you can. You can sort this with better financial discipline but freezing the interest will be the biggest help. No more cards or loans as that will make things worse. If you do the DMP default on the unsecured debts asap, open a bank account with no overdrafts and save up an emergency savings account as you will have no access to credit.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Mnd
    • By Mnd 2nd Aug 18, 2:04 PM
    • 743 Posts
    • 905 Thanks
    Mnd
    • #5
    • 2nd Aug 18, 2:04 PM
    • #5
    • 2nd Aug 18, 2:04 PM
    Mobiles is massive. .we pay 17.50 for 2 with tesco
    Presents 100 a month is a lot as well
    • Willing2Learn
    • By Willing2Learn 2nd Aug 18, 2:19 PM
    • 1,605 Posts
    • 1,218 Thanks
    Willing2Learn
    • #6
    • 2nd Aug 18, 2:19 PM
    • #6
    • 2nd Aug 18, 2:19 PM
    You might want to consider cancelling gym membership too...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • tallyhoh
    • By tallyhoh 2nd Aug 18, 2:20 PM
    • 2,160 Posts
    • 2,228 Thanks
    tallyhoh
    • #7
    • 2nd Aug 18, 2:20 PM
    • #7
    • 2nd Aug 18, 2:20 PM
    What is Sunny X 4?
    Tallyhoh!

    Stopped Smoking October 2000. Saved £21,840 so far!
    • sourcrates
    • By sourcrates 2nd Aug 18, 2:21 PM
    • 15,533 Posts
    • 14,617 Thanks
    sourcrates
    • #8
    • 2nd Aug 18, 2:21 PM
    • #8
    • 2nd Aug 18, 2:21 PM
    Hi,


    I notice there is an Amigo Guarantor loan listed, even to the casual outsider, its clear you are in trouble here.

    As you are a homeowner, your options here are very limited, but you have a reasonable income, so you can tackle this, and you have two real choices on how you go about doing it.

    Both options will require you to draw a line in the sand, so to speak, cancel all your non essential debt repayments, and then take a deep breath............you then write to each unsecured creditor, telling them you are in financial difficulty, and on receiving this, they will automatically put your account on hold, for 30 days min.

    Its called breathing space and has been agreed between lenders and the FCA to allow you time to sort out a plan to tackle your debt, and to take advice.

    Now you must continue to pay Amigo, as it is essentially a secured debt, who is the guarantor for this loan ?

    But the rest are all non essential payments.

    Now at this point you have a choice, you can either, work out a reasonable budget, that allows you to live without further access to credit, then whatever is left, you split between your creditors, and repay on a monthly basis (you must obviously ask them all to stop interest and charges first).

    Or the other method is to, again, stop making regular payments, but tackle say a single debt per month with what you have left after your budget, for making debt repayments.

    Pay the smallest first, and so on, debt collection takes a very long time, and you can put off any creditor that should want to get legal, by offering a payment or a settlement to them.

    Both methods require a complete change of perception and attitude on your part though, you must learn to live within budget, and develop at thick skin to deal with creditors.

    But it can easily be done if you apply yourselves correctly.
    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/
    • sourcrates
    • By sourcrates 2nd Aug 18, 2:22 PM
    • 15,533 Posts
    • 14,617 Thanks
    sourcrates
    • #9
    • 2nd Aug 18, 2:22 PM
    • #9
    • 2nd Aug 18, 2:22 PM
    What is Sunny X 4?
    Originally posted by tallyhoh

    Four payday loans with the lender Sunny.
    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/
    • 0Credit
    • By 0Credit 2nd Aug 18, 2:42 PM
    • 45 Posts
    • 64 Thanks
    0Credit
    GULP

    Sadly I can relate as I am/have been in the same boat to some extent. Those payday loans each month really add up as does NEXT.

    It looks like you have a couple of the payday loans near to paying off but I am guessing you pay off then get back into them each month? Each costing £30-£100 a month in interest?

    Looking through your outgoings this is my advice (and yes it sounds simple but can be tough but once done it's real money and it's helping)

    1. Do a mortgage check. You may be able to switch providers and save £50 a month.
    2. Mobile phones are horrific deals. Your kids can probably be on PAYG or even just you parents. You would be surprised how far £20 credit goes. From £140 a month you could easily run 4 people for £60.
    3. TV: Sky, Virgin, BT. Can all knock at least £5 a month off your bill just by ringing up and threatening to leave. Some here will say to cancel completely but I understand you have kids to please and it may be a must.
    4. GYM: It is a tough one but how often do you go and what exercises do you do? If you go little/can do exercises without a gym that is £360 a year straight into paying off debt.

    Just these 4 things alone if you did it right could save you in the region of £150-£200 a month.

    Other things you can do:

    1. Sell unwanted items (kids must have loads of stuff they don't use)
    2. Bulk cook foods/buy better. £400 a month is a fair bit and above the national average.
    3. Re-order your debt. Speak to each lender and make sure each high interest lender is getting more than a lower interest lender.
    4. Credit card swaps/debt reconciliation if you have good credit (but I doubt you do).

    Hope that helps.
    • CakeCrusader
    • By CakeCrusader 2nd Aug 18, 2:56 PM
    • 571 Posts
    • 289 Thanks
    CakeCrusader
    You've had some really good advice here. Do you really need to spend £100 a month on clothes and £100 a month on presents? That's £2,200 a year, it's an awful lot. You could do with looking to see where you can make savings, I'd start here (and with the Gym membership). You're spending way to much on mobile phones, are you paying for the devices too? £50 on entertainment when you're paying for internet/TV can be reduced. Have a few weekends where you chill out at home, make the pizza rather than order in, watch a movie together. You'll save the £50.



    Remember that this won't last forever, and you can rejoin the Gym etc once you've got your finances up to date.
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Aug 18, 4:37 PM
    • 929 Posts
    • 1,270 Thanks
    zippygeorgeandben
    Gym memberships are expensive even when you aren't in debt!
    Savings End September 2018
    September 2018 £986.09
    October 2018
    November 2018
    December 2018
    January 2019
    • worried_witless
    • By worried_witless 2nd Aug 18, 4:59 PM
    • 3 Posts
    • 1 Thanks
    worried_witless
    Thanks everyone, hugely appreciated, will reply later once I am home xxxx
    • Willing2Learn
    • By Willing2Learn 2nd Aug 18, 5:13 PM
    • 1,605 Posts
    • 1,218 Thanks
    Willing2Learn
    Why does Sunny x4 loans have a zero balance @ 49.9APR on your soa? If you do have existing debt with Sunny then you should know their rate is 1291% APR representative (I just checked). Though, maybe you negotiated a lower APR?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Smellyonion
    • By Smellyonion 6th Aug 18, 2:13 PM
    • 136 Posts
    • 85 Thanks
    Smellyonion
    On a lot of the SOAs, people forget to tackle the root cause.


    Without your debts and even with your somewhat lavish spending, you would have 1.3k left each month. Yet you have managed to accumulate 22k in debt,


    Questions;


    Why did you require loans if your spare cash each month is high?


    Where did this money from the debt go? Which assets (value of materialistic processions) do you have?


    If not many assets, what services are you wasting the money on? Where did you spend that 22k?


    You need an inventory of all assets of any value you own and their value. I would make informed decisions to downgrade where can and put any spare cash into the high interest loans. Your situation is purely behavioural and you have more than enough income to ensure a comfortable lifestyle.
  • National Debtline
    Hi OP


    I agree with the above poster that the most important thing here is arguably assessing how/why the debts - and in particular the short-term loans and Amigo - came about. Was there some kind of temporary situation or something out of the blue which led to you turning their way? Are you confident now that whatever issue it was is unlikely to reoccur?


    If you can answer those questions you'll be much better placed to act on the rest of the advice you get.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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