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| The independent answer to your debt problems | login join |
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helpneeded
| 22-10-2009 12:00 PM |
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Joined: 22 Oct 2009 Posts: 3 | We have 40K of unsecured debt Husbands work dried up at the moment so problem is temporary Mortgage of 104K House worth around 135000 Payplan contacting mme on Monday We have around £2700 nett income at the moment Any advise would be gratefully received Thanks |
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| DW George | 23-10-2009 12:28 PM |
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Joined: 01 May 2007 Posts: 492 My Profile | Hi helpneeded Net income is not really a good indicator of how healthy your finances are. What we need to know is how much disposable income you have. Debt management is a good short term solution for financial difficulty. Although it does not stop your creditors' from pestering you. Please use our SOA form and make it public so we can suggest ways to improve your income levels and also suggest ways to reduce your expenditure. George |
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helpneeded
| 28-10-2009 01:46 PM |
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Joined: 22 Oct 2009 Posts: 3 | Have done the Statement of affairs now |
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| DW George | 28-10-2009 02:46 PM |
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Joined: 01 May 2007 Posts: 492 My Profile | I have had a quick squint over your SOA and here are some of my thoughts Income - £2559 Expenditure - £1828.64 Disposable income = £730.36 However your total monthly out goings, including servicing your debts is £1400 + £1828.64 = £3228.64. Are you are still living off your credit cards? I have to pop out just now but will post back later some options. George |
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helpneeded
| 28-10-2009 04:22 PM |
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Joined: 22 Oct 2009 Posts: 3 | Yes living off Credit cards. |
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| DW George | 03-11-2009 11:27 AM |
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Joined: 01 May 2007 Posts: 492 My Profile | Sorry helpneeded, I had written a reply but forgot to post it. No matter how short term your finances are you need to be able to live within your means. This entails cutting back on expenditure and stop using your credit cards. Here are my thoughts about your SOA. - How many people are in the house? Food £275 you should be able to reduce this with some planning. - £41 for Satellite TV - you can't afford this. - Cleaning £50 can you expand on this? - Switch your mortgage to an interest only one. You may have to work and extra two years or so at the end but it's better than losing the house! - Have you spoken to the Credit Card companies about getting a lower rate? - Elephant in the room moment - smoking £120 a month can you afford this? The above savings could be in the region of £300+. Seeking debt management help via companies Payplan etc should only be a short term solution. But this solution will only work if you are control of your finances just now. Cut down as much as possible, look for extra sources of income, sell off things on ebay etc but don't ignore the problem. You are at a critical moment with your finances, throw away your credit cards and start leaving within your means. |
