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advice sought please
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advice sought please
Hi
I have found this board again after a number of years away and I am in really big need of advice.
I have accrued an enormous amount (eye watering in fact) of unsecured debt over the last few years and whilst I have been aware I need to address it, I have not done so.
A change in my personal circumstances has forced this issue and I need to start working out how on earth I can begin to sort it out.
May I ask - is it usual to post an SoA as a starting point?
Thanks in anticipation (and with some relief)
I have found this board again after a number of years away and I am in really big need of advice.
I have accrued an enormous amount (eye watering in fact) of unsecured debt over the last few years and whilst I have been aware I need to address it, I have not done so.
A change in my personal circumstances has forced this issue and I need to start working out how on earth I can begin to sort it out.
May I ask - is it usual to post an SoA as a starting point?
Thanks in anticipation (and with some relief)
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- Lemon Pip
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- Lemon Half
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Re: advice sought please
cheshirecat wrote:May I ask - is it usual to post an SoA as a starting point?
Available via viewforum.php?f=4 > financecalculators/ > financecalculators/soa.php
Welcome back.
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- Posts: 13
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Re: advice sought please
[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2895
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2895
Monthly Expense Details
Mortgage................................ 557
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 50
Gas..................................... 46
Oil..................................... 0
Water rates............................. 12.5
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 9.7
Satellite/Cable TV...................... 0
Internet Services....................... 12
Groceries etc. ......................... 250
Clothing................................ 20
Petrol/diesel........................... 50
Road tax................................ 24.5
Car Insurance........................... 18.9
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 12
Buildings insurance..................... 37.22
Contents insurance...................... 0
Life assurance ......................... 7
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1391.82
Assets
Cash.................................... 0
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 82000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 48509....(557)......3.99
Total secured & HP debts...... 48509.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan 1.................10489.....227.......3.9
Halifax loan 2.................7941......196.......12.9
Halifax mastercard.............9113......93........19.2
virgin card....................8532......106.......17.5
barclaycard....................16485.....370.......15.9
Total unsecured debts..........52560.....992.......-
Monthly Budget Summary
Total monthly income.................... 2,895
Expenses (including HP & secured debts). 1,391.82
Available for debt repayments........... 1,503.18
Monthly UNsecured debt repayments....... 992
Amount left after debt repayments....... 511.18
Personal Balance Sheet Summary
Total assets (things you own)........... 82,000
Total HP & Secured debt................. -48,509
Total Unsecured debt.................... -52,560
Net Assets.............................. -19,069
[/tt]
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2895
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2895
Monthly Expense Details
Mortgage................................ 557
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 50
Gas..................................... 46
Oil..................................... 0
Water rates............................. 12.5
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 9.7
Satellite/Cable TV...................... 0
Internet Services....................... 12
Groceries etc. ......................... 250
Clothing................................ 20
Petrol/diesel........................... 50
Road tax................................ 24.5
Car Insurance........................... 18.9
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 12
Buildings insurance..................... 37.22
Contents insurance...................... 0
Life assurance ......................... 7
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1391.82
Assets
Cash.................................... 0
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 82000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 48509....(557)......3.99
Total secured & HP debts...... 48509.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan 1.................10489.....227.......3.9
Halifax loan 2.................7941......196.......12.9
Halifax mastercard.............9113......93........19.2
virgin card....................8532......106.......17.5
barclaycard....................16485.....370.......15.9
Total unsecured debts..........52560.....992.......-
Monthly Budget Summary
Total monthly income.................... 2,895
Expenses (including HP & secured debts). 1,391.82
Available for debt repayments........... 1,503.18
Monthly UNsecured debt repayments....... 992
Amount left after debt repayments....... 511.18
Personal Balance Sheet Summary
Total assets (things you own)........... 82,000
Total HP & Secured debt................. -48,509
Total Unsecured debt.................... -52,560
Net Assets.............................. -19,069
[/tt]
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- Lemon Half
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Re: advice sought please
cheshirecat wrote:
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan 1.................10489.....227.......3.9
Halifax loan 2.................7941......196.......12.9
Halifax mastercard.............9113......93........19.2
virgin card....................8532......106.......17.5
barclaycard....................16485.....370.......15.9
Total unsecured debts..........52560.....992.......-
I thought the usual recommended solution in the absence of being able to transfer balances to a lower rate was to snowball. In other words reduce the monthly payments on the lower APR loans or cards to the minimum required and throw all available cash at repaying the highest APR. Though you may not be allowed to reduce the payments on the Halifax loans.
But perhaps you have enough of a good credit rating to get favourable balance transfer offers.
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- Lemon Slice
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Re: advice sought please
I can't see much fat to trim in your spending.
Any stuff you can sell/car boot etc?
If this figure is true, i.e. you really have an extra £511 left at the end of each month, then personally I would save a couple of months into an emergency fund of £1000 for when the car packs up or the boiler goes phut that you then don't have to reach for the credit card.
Take your credit cards out of your wallet.
Then snowball
Throw the £511 at the Halifax mastercard, so in 20 months that will be paid off, and you'll then be able to put the £93 + the £511 on the virgin one. That's 15 months, then that's an extra £700pm to throw at the barclaycard.
It also depends how long the loans are for, as when they finish that's another £400pm you can throw at the cards. So at some point it could be over £1100 hammering at the barclaycard, that would be making serious debts.
It's going to be a long slog, years not months, but it's doable, just concentrate on the goals of paying off each card and each loan in turn.
Any stuff you can sell/car boot etc?
Amount left after debt repayments....... 511.18
If this figure is true, i.e. you really have an extra £511 left at the end of each month, then personally I would save a couple of months into an emergency fund of £1000 for when the car packs up or the boiler goes phut that you then don't have to reach for the credit card.
Take your credit cards out of your wallet.
Then snowball
Unsecured Debts
Halifax mastercard.............9113......93........19.2
virgin card....................8532......106.......17.5
barclaycard....................16485.....370.......15.9
Total unsecured debts..........52560.....992.......-
Throw the £511 at the Halifax mastercard, so in 20 months that will be paid off, and you'll then be able to put the £93 + the £511 on the virgin one. That's 15 months, then that's an extra £700pm to throw at the barclaycard.
It also depends how long the loans are for, as when they finish that's another £400pm you can throw at the cards. So at some point it could be over £1100 hammering at the barclaycard, that would be making serious debts.
It's going to be a long slog, years not months, but it's doable, just concentrate on the goals of paying off each card and each loan in turn.
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- Lemon Slice
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Re: advice sought please
All sounds like very good advice to me. It does look like a long slog. If it were me I would create a series of mini milestones, say every time you reduce the outstanding debt by 2,500, and having a small celebration. Best of luck with it.
Pendrainllwyn
Pendrainllwyn
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- Lemon Pip
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Re: advice sought please
Council Tax - Are you getting the single person deduction?
Life Insurance - Why do you need this?
Easy Money making stuff
Rent a room - do you have a spare room?
Ebay - Most people have loads of junk other people love to buy
Paul
Life Insurance - Why do you need this?
Easy Money making stuff
Rent a room - do you have a spare room?
Ebay - Most people have loads of junk other people love to buy
Paul
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- Lemon Slice
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Re: advice sought please
The building insurance seems a bit steep. I suggest shopping around before the next renewal.
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- Lemon Slice
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Re: advice sought please
cheshirecat wrote:Electricity............................. 50
Gas..................................... 46
Seems high. Depends on size and efficiency of the house though of course. If you haven't already price comparison site it. Thermostat down a few degrees.
cheshirecat wrote:Buildings insurance..................... 37.22
Seems high for a circa 140k house. Mine was never more than £150 a year for a similar valued house. Shop around.
cheshirecat wrote:Presents (birthday, christmas etc)...... 25
I'm sure these people would prefer you got out of debt than receive these gifts.
cheshirecat wrote:Haircuts................................ 20
At that price can I assume you are a lady? If not then you can buy some clippers for 1 months budget and not pay again until you're out of debt.
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- Lemon Slice
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Re: advice sought please
Can you get another loan? - even at 12.9% it would be better than the credit cards.
Rob
Rob
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- Lemon Half
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Re: advice sought please
nmdhqbc wrote:cheshirecat wrote:Buildings insurance..................... 37.22
Seems high for a circa 140k house. Mine was never more than £150 a year for a similar valued house. Shop around.
Fair point on the premium and shopping around but rebuildings costs are not based on property prices. I've seen many a place where the insurance cover (as verified by appointed professionals) is twice the value of the property, which includes land.
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- Lemon Half
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Re: advice sought please
robbelg wrote:Can you get another loan? - even at 12.9% it would be better than the credit cards.
Alternatively is remortgaging a possibility, given the apparent equity in the property, which may not be impossible given the loans appear to be unsecured, and it might therefore spread the repayments further into the future? I know little of mortgages though and wonder if the existence and level of the unsecured debt would make remortgaging an no go area.
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Re: advice sought please
Hi all
Many many thanks for all your replies.
I shall try and respond to each in turn but bear with me
Many many thanks for all your replies.
I shall try and respond to each in turn but bear with me
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Re: advice sought please
Alaric wrote:cheshirecat wrote:
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan 1.................10489.....227.......3.9
Halifax loan 2.................7941......196.......12.9
Halifax mastercard.............9113......93........19.2
virgin card....................8532......106.......17.5
barclaycard....................16485.....370.......15.9
Total unsecured debts..........52560.....992.......-
I thought the usual recommended solution in the absence of being able to transfer balances to a lower rate was to snowball. In other words reduce the monthly payments on the lower APR loans or cards to the minimum required and throw all available cash at repaying the highest APR. Though you may not be allowed to reduce the payments on the Halifax loans.
But perhaps you have enough of a good credit rating to get favourable balance transfer offers.
I doubt very much that with my current level of unsecured debt that I would have a sufficient rating to be offered anything more preferable than the current rates I am paying.
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Re: advice sought please
UncleIan wrote:I can't see much fat to trim in your spending.
Any stuff you can sell/car boot etc?Amount left after debt repayments....... 511.18
If this figure is true, i.e. you really have an extra £511 left at the end of each month, then personally I would save a couple of months into an emergency fund of £1000 for when the car packs up or the boiler goes phut that you then don't have to reach for the credit card.
Take your credit cards out of your wallet.
Then snowballUnsecured Debts
Halifax mastercard.............9113......93........19.2
virgin card....................8532......106.......17.5
barclaycard....................16485.....370.......15.9
Total unsecured debts..........52560.....992.......-
Throw the £511 at the Halifax mastercard, so in 20 months that will be paid off, and you'll then be able to put the £93 + the £511 on the virgin one. That's 15 months, then that's an extra £700pm to throw at the barclaycard.
It also depends how long the loans are for, as when they finish that's another £400pm you can throw at the cards. So at some point it could be over £1100 hammering at the barclaycard, that would be making serious debts.
It's going to be a long slog, years not months, but it's doable, just concentrate on the goals of paying off each card and each loan in turn.
Loan 1 settles in 50 months and loan 2 in 53 months. My plan was to throw any surplus to the mastercard, as this is the debt with the highest interest but that kind of goes against the snowball principle does it not?
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Re: advice sought please
PaulBullet wrote:Council Tax - Are you getting the single person deduction?
Life Insurance - Why do you need this?
Easy Money making stuff
Rent a room - do you have a spare room?
Ebay - Most people have loads of junk other people love to buy
Paul
Council tax - I can apply for the single person deduction once my partner moves out which is early next month.
And I will sell any available stuff I have!
Renting a room may be doable, but not a preferred option, however I would give this consideration should the situation start to become unmanageable
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Re: advice sought please
malkymoo wrote:The building insurance seems a bit steep. I suggest shopping around before the next renewal.
Will do - I agree, it does seem excessive
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- Lemon Half
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Re: advice sought please
cheshirecat wrote:Loan 1 settles in 50 months and loan 2 in 53 months. My plan was to throw any surplus to the mastercard, as this is the debt with the highest interest but that kind of goes against the snowball principle does it not?
That is the snowball principle. If you pay off some of the debt with the highest APR first, you save on next month's interest, so you've got more spare cash available. Hence "snowball" because the amount you can pay off increases with time.
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