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  • FIRST POST
    • gembo69
    • By gembo69 23rd Nov 17, 6:11 PM
    • 40Posts
    • 19Thanks
    gembo69
    Help, outgoings are more than incoming :(
    • #1
    • 23rd Nov 17, 6:11 PM
    Help, outgoings are more than incoming :( 23rd Nov 17 at 6:11 PM
    Hi everyone.
    Before I start, I’m one of these ’we’ll cross that bridge when we get to it’ kind of people, but it’s getting way out of control now and I need to stop and look at what I’m doing!
    Husband and I both work full time and we have a 6 year old daughter. The mortgage is in husbands name and no equity in it yet.
    My unsecured debt equates to 35k and husbands 40k.
    Husband works in a bank so not sure if debt management or Iva would affect his job.
    From my calculations salary and child benefit is £3200 with outgoings equating to £3400, that’s not including money for food petrol or living.
    Really don’t know what is the best option, any help would be very much appreciated. Thanks.

    This Forum tip was included in MoneySavingExpert.com's weekly email!
    Last edited by MSE Andrea; 29-11-2017 at 12:35 PM.
Page 4
    • enthusiasticsaver
    • By enthusiasticsaver 24th Nov 17, 5:14 PM
    • 4,868 Posts
    • 9,191 Thanks
    enthusiasticsaver
    You have very few options available to you as your income is nowhere near high enough to sustain almost £80k of unsecured lending. I am amazed really at the irresponsible lending practices of some of these high street banks in lending you both this much money.

    Your husband losing his job though would only hinder the debt repayment so he needs to check whether any debt management solution is acceptable. You can go on to a DMP though and I would suggest you ring stepchange asap to see which solution would be better for you - either a DMP or bankruptcy. This may also impact on your help to buy loan unless you can deal with this quickly. You can't afford to give your mum £200 per month so that needs to stop immediately. By the time any debt solution is agreed on then the loan to your sister will presumably have been repaid. No account will be given to friends and family loans.

    When your husband knows whether he would lose his job then he can look into debt solutions. For both of you though interest on that level of debt is too much to cope with on top of capital repayments so a freezing of interest would be needed.
    3 days to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, 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
    • z1a
    • By z1a 24th Nov 17, 5:24 PM
    • 821 Posts
    • 662 Thanks
    z1a
    I wouldn't worry about husbands job when he's on such a poor wage, our labourer gets more than that for 39hr weeks.
    • gembo69
    • By gembo69 24th Nov 17, 6:18 PM
    • 40 Posts
    • 19 Thanks
    gembo69
    I wouldn't worry about husbands job when he's on such a poor wage, our labourer gets more than that for 39hr weeks.
    Originally posted by z1a
    Not sure where you live, but in our region I’d say his wage was half decent when comparing it to people I know, relatives and people I work with. Other than my friends who’s partners work in oil and gas.
    Maybe he should take his vr he was offered and become a labourer!
    • IAmWales
    • By IAmWales 24th Nov 17, 6:25 PM
    • 1,864 Posts
    • 3,883 Thanks
    IAmWales
    So...spike tp phone provider they can reduce my tariff to £37 instead of 57. The only thing is it is a new 24 month contract. Is this the best thing to do? Old Contract runs out sept 18.
    Originally posted by gembo69
    That's still far too high. Do not commit to a new contract unless you know how you are going to manage your debt, and when you do make it a £7 a month sim only deal.
    • gembo69
    • By gembo69 24th Nov 17, 6:40 PM
    • 40 Posts
    • 19 Thanks
    gembo69
    That's still far too high. Do not commit to a new contract unless you know how you are going to manage your debt, and when you do make it a £7 a month sim only deal.
    Originally posted by IAmWales
    Can’t do anything with my contract until sept 2018, other than lowering it to £37 but that gives me a new 24 month contract.
    Any advice?
    • z1a
    • By z1a 24th Nov 17, 6:43 PM
    • 821 Posts
    • 662 Thanks
    z1a
    Not sure where you live, but in our region I’d say his wage was half decent when comparing it to people I know, relatives and people I work with. Other than my friends who’s partners work in oil and gas.
    Maybe he should take his vr he was offered and become a labourer!
    Originally posted by gembo69
    You say he has a senior position in a bank, yet only clears £400/week, doesn't seem right. And you say he hates it anyway.
    Actually I was wrong about our labourer, he's on £10.50/hr, so gross of £409/week, but o/time at 1.5x, no stress, and no real responsibility.

    I'm in Lancashire BTW, by no means a high earning area.

    If I were you I wouldn't let his job stand in the way of getting a chance to see a clear way of clearing your debts.

    Good luck whatever you do, I got myself out of a similar situation, similar amount of debt about 9 years ago.
    • Grumpelstiltskin
    • By Grumpelstiltskin 24th Nov 17, 6:53 PM
    • 2,189 Posts
    • 2,231 Thanks
    Grumpelstiltskin
    I wondered about possible deductions from your husband's wages. Pension? Staff loan? Sharesave?

    I don't know about banks and I don't know what extra deductions there could be.
    • tlc678910
    • By tlc678910 26th Nov 17, 9:33 AM
    • 490 Posts
    • 877 Thanks
    tlc678910
    It must be a very tough decision to make but as your unsecured payments are 2800ish if you (both) go bancrupt you will be better off even if your husband loses his job and replaces it with one paying £1000 each month.

    With the gap between your income and outgoings if you don't take any action sooner or later action will be forced upon you.

    Just to confirm there is no equity in the house? The secured loan and mortgage account for the approximately the full house value?

    I think you need to explore all debt relief options and then be brave and go for it - don't spend the next few years sinking slowly.

    Good luck
    • fatbelly
    • By fatbelly 26th Nov 17, 9:50 AM
    • 11,656 Posts
    • 8,792 Thanks
    fatbelly
    It must be a very tough decision to make but as your unsecured payments are 2800ish if you (both) go bancrupt you will be better off even if your husband loses his job and replaces it with one paying £1000 each month.

    With the gap between your income and outgoings if you don't take any action sooner or later action will be forced upon you.

    Just to confirm there is no equity in the house? The secured loan and mortgage account for the approximately the full house value?

    I think you need to explore all debt relief options and then be brave and go for it - don't spend the next few years sinking slowly.

    Good luck
    Originally posted by tlc678910
    Note that in bankruptcy it's the equity in 3 years time that counts. Tread carefully.
    • pennystretcher
    • By pennystretcher 26th Nov 17, 3:05 PM
    • 311 Posts
    • 1,329 Thanks
    pennystretcher
    1. reduce family repayments (and giving money to your mum) where you can. Don't be afraid to tell them about the situation - you may be surprised the amount of support families can provide once they know why you cannot afford the current situation.
    2. use the money "gained" to pay off most expensive debts (you have to work out what these are)
    3. talk to debtline and explore the bankcruptcy option - however I'd be vary about this option, your income should be enough to pay off your debt in reasonable time if managed correctly. (Call companies and arrange for repayment - again talk to debtline how to go about this)
    4. chin up, you have acknowledged the problem, you can sort it out.
    MFW Dec 2017 £290 (almost there!!!)
    • sweetpea26
    • By sweetpea26 27th Nov 17, 8:48 AM
    • 700 Posts
    • 4,629 Thanks
    sweetpea26
    Hi there you have had lots of excellent advice here.

    Please do not hand over the bank accounts to your sister. You need to face up to this yourself. You need to handle this yourself or your husband. He works in a bank he can take care of his own families money. Otherwise you will not learn from your mistakes.

    I wish you well and will subscribe ...
    • gembo69
    • By gembo69 28th Nov 17, 2:17 PM
    • 40 Posts
    • 19 Thanks
    gembo69
    Spoke tp stepchange
    So, I have spoken to stepchange who have advised to go down the DMP route and all debt will be paid in 4 years and 1 month. We just need to clarify if it will affect husbands job, as some of the debt is with his bank. If it will affect his job, obviously our options will change.
    Paid all the monthly unsecured debt bills yesterday, which I shouldn't have really, as they will all go into default anyway.
    I know there is still a long way to go, but I'm feeling a lot better about it, and appreciate all the advice given
    • Pixie5740
    • By Pixie5740 28th Nov 17, 2:27 PM
    • 11,202 Posts
    • 15,655 Thanks
    Pixie5740
    Can’t do anything with my contract until sept 2018, other than lowering it to £37 but that gives me a new 24 month contract.
    Any advice?
    Originally posted by gembo69
    £37 is still too high. If you're going to start defaulting on your loans and credit cards would it really make any difference to default on your mobile contract as well? You could get a replacement handset (if necessary) and new contract for as little as £8 a month.

    https://www.moneysavingexpert.com/phones/mobile-phone-cost-cutting
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • gembo69
    • By gembo69 28th Nov 17, 5:28 PM
    • 40 Posts
    • 19 Thanks
    gembo69
    £37 is still too high. If you're going to start defaulting on your loans and credit cards would it really make any difference to default on your mobile contract as well? You could get a replacement handset (if necessary) and new contract for as little as £8 a month.

    https://www.moneysavingexpert.com/phones/mobile-phone-cost-cutting
    Originally posted by Pixie5740
    I never thought of that. What would happen to the handset, would they request it back? It’s an iPhone 7, due to finish contract in sept. I’ve got my husbands old Samsung I could use.
    • Kogvos
    • By Kogvos 29th Nov 17, 8:03 AM
    • 2 Posts
    • 2 Thanks
    Kogvos
    You’ve taken positive action in recognising and confronting your gambling & debt problems, Gembo, and discussing possible solutions here and with Stepchange. Continue along that path and stick with it and you can resolve this over time. One cost we generally don’t talk about as much as we should is the cost to your health because of the stress arising from all this. Seek professional (GP) help and advice on that if you need to - just as you are doing on money matters. Secrecy and bottling things up can be really stressful, it might be an idea to just come clean with family members and close friends about your financial problems, the reasons for them and what you’re trying to do to deal with them. Not easy, I know, and far easier to say than do. If a one-Off family ‘meeting’ isn’t viable maybe take a weekend soon to travel around and talk to the key family members and friends, get the ‘revelations’ over in a short space of time and move on. That old saying ‘a problem shared is a problem halved’ is often actually true, you know. You never know what might arise in terms of additional support from those conversations. If nothing else, just coming clean - not having to bottle things up and pretend any more - can only be good for your health. I am very supportive of you and I admire you for confronting and starting to manage your problems. Continue with it. Go you!
    • travelman86
    • By travelman86 29th Nov 17, 9:29 AM
    • 5 Posts
    • 10 Thanks
    travelman86
    So the phone contract is due for renewal in September 18? Which means it was taken out in September 16, im sure you were in the same position back then.


    Some times people baffle me.
    • Elliesmum
    • By Elliesmum 29th Nov 17, 11:55 AM
    • 1,444 Posts
    • 1,748 Thanks
    Elliesmum
    So, I have spoken to stepchange who have advised to go down the DMP route and all debt will be paid in 4 years and 1 month. We just need to clarify if it will affect husbands job, as some of the debt is with his bank. If it will affect his job, obviously our options will change.
    Paid all the monthly unsecured debt bills yesterday, which I shouldn't have really, as they will all go into default anyway.
    I know there is still a long way to go, but I'm feeling a lot better about it, and appreciate all the advice given
    Originally posted by gembo69
    This is great news after reading the entire thread. I'm really glad you are feeling better.

    EM x
    You can discover more about a person in an hour of play than in a year of conversation.
    Plato

    Saving for Jersey 2018 - it's a challenge...
    • Monkeymonster
    • By Monkeymonster 29th Nov 17, 12:55 PM
    • 1 Posts
    • 1 Thanks
    Monkeymonster
    Water Rates - just a thought......
    You mentioned you live in a new build........
    We live on a new-build estate and the roads have not yet been adopted (I say new, it's 13 years old now!!). The sewers, in turn, have not yet been adopted. For the first 11 years many of the households were being incorrectly charged Surface Water Drainage (SWD) by Severn Trent Water. Some of those were also being overcharged on an incorrect banding. Band 01 = terraced, band 02 = semi-detached and band 03 = detached.
    We ended up being refunded for all of the SWD charges already paid and the charge was removed from the ongoing bills. We may become liable once the sewers are adopted.
    Please check:
    > your banding is correct.
    > Have your roads / sewers have been adopted?
    > if not adopted, are you being charged for SWD?
    > if not adopted and you are being charged, please contact your water company to dispute this.

    I know it's a long-shot and may not apply to you, but figured it's worth checking everything you can think of!
    Best of luck to you with your finances.
    • gembo69
    • By gembo69 29th Nov 17, 1:32 PM
    • 40 Posts
    • 19 Thanks
    gembo69
    So the phone contract is due for renewal in September 18? Which means it was taken out in September 16, im sure you were in the same position back then.


    Some times people baffle me.
    Originally posted by travelman86
    Well of course I was, that is the problem I have just carried on...living beyond my means, gambling etc. I didn't see it was a problem then, I always thought i'd have a big win and pay it all off, yes silly I know and i'm ashamed. I am confronting my situation and all the problems...and i'm proud of myself for doing so!!
    • gembo69
    • By gembo69 29th Nov 17, 1:33 PM
    • 40 Posts
    • 19 Thanks
    gembo69
    You mentioned you live in a new build........
    We live on a new-build estate and the roads have not yet been adopted (I say new, it's 13 years old now!!). The sewers, in turn, have not yet been adopted. For the first 11 years many of the households were being incorrectly charged Surface Water Drainage (SWD) by Severn Trent Water. Some of those were also being overcharged on an incorrect banding. Band 01 = terraced, band 02 = semi-detached and band 03 = detached.
    We ended up being refunded for all of the SWD charges already paid and the charge was removed from the ongoing bills. We may become liable once the sewers are adopted.
    Please check:
    > your banding is correct.
    > Have your roads / sewers have been adopted?
    > if not adopted, are you being charged for SWD?
    > if not adopted and you are being charged, please contact your water company to dispute this.

    I know it's a long-shot and may not apply to you, but figured it's worth checking everything you can think of!
    Best of luck to you with your finances.
    Originally posted by Monkeymonster
    Thanks for that, Checked with the council, the road is adopted. I'll check on banding.
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