Debt help needed

sanmarco5

We (myself & DH) currently have around £30k of debt, all started like most I would imagine, get credit cards, cant afford the payments, get loans to pay off cards , no money left after loan payments so get more cards, have remortgaged twice so mortgage gone from £122k to £162k in 5 years, really dont know what to do now.
Didnt help that I was self employed as a childminder people didnt pay me on time, wich caused me to get back charges etc. I have a job now though, not earning any more than I was but its guaranteed & regular payments, but just when I get a regularly paid job, DH changed his job & is earning £300 a month less!
One of our cards is a Virgin card which was 0% interest for 1 year was paying £10 a month off that (£7k balance) but now the year is up payments jumped to £140 a month, just dont know where I will find the money.
Any help or advice would really be appreciated
Thanks

rayday2

Are you putting any bills or food shopping money on credit regularly either credit cards or overdrafts? And are you saying you are struggling to pay even the bare minimums and live?

strumpet

Hi Sanmarco,
I would suggest writing down all your incoming funds and outgoing expenses so you can see where all your money is going every month and if you have any spare cash.
Use the budget planner listed in the Step by Step Guide above. You have to be really honest for it to be effective though. This can be a bit scary, like when you realise you sepnd £800 a year on Coca-Cola!!!
Then post a statement of affairs (SOA) on this thread so that the good folk of Debt Free Wanabee Land can offer you advice on how you can save money.

Lean on us - we're here to help. Some of the guys on here have been members for yonks and their advice is first rate. Well done on taking the first steps though - you can't reach your destination without putting the first foot forward!

Good Luck

Strumpet
xxx

sanmarco5

rayday2 wrote: »

Are you putting any bills or food shopping money on credit regularly either credit cards or overdrafts? And are you saying you are struggling to pay even the bare minimums and live?

Yes often by the end of the month money has run out & I have to use a card to buy food shopping. I am also always in my £700 overdraft, in fact thats a lie when I got paid this month i was £25 in credit (got paid £725) for the first time in over a year

rayday2

It may be worth while contacting a debt charity you don't have to go with what they say but if you can't get out of the cycle for borrowing at least you know there is help.

I think CCCS do an online thing so you don't even have to speak to someone just put figures in.

I was just like you bought a house, got let down financially, had to give a couple of jobs in, credit cards went into loans, into secured loans, then more cards and luckily at that point I started my DMP and now every month that goes by I owe a little less and bank accounts have black figures again.

sanmarco5

strumpet wrote: »

Hi Sanmarco,
I would suggest writing down all your incoming funds and outgoing expenses so you can see where all your money is going every month and if you have any spare cash.
Use the budget planner listed in the Step by Step Guide above. You have to be really honest for it to be effective though. This can be a bit scary, like when you realise you sepnd £800 a year on Coca-Cola!!!
Then post a statement of affairs (SOA) on this thread so that the good folk of Debt Free Wanabee Land can offer you advice on how you can save money.

Lean on us - we're here to help. Some of the guys on here have been members for yonks and their advice is first rate. Well done on taking the first steps though - you can't reach your destination without putting the first foot forward!

Good Luck

Strumpet
xxx

This is basically where money goes

Income me £725 pm
Income DH £1400pm
Child benefit £120 pm

Total income £2245

Moblie phone me £18pm
Mobile phone DH £20pm
Gas & Electric £65 pm (but that is bound to go up soon)
TV licence £12
Water £30
Sky £40 (includes TV Internet & phone)
car insurance £32
mortgage insurance £32
house insurance £28
Gas service £12
Mortgage £800
Loan me £123
Loan DH £150
Credit cards me £200
Credit cards DH £200

council tax £118

total 1880

leaves a total of £365 for food shopping & everything else (clothes going out etc)
We dont smoke & rarely drink, rarely eat out etc. Going abroad this year and yes its paid for on cards (silly I know) first proper holidays since we had the kids (aged 10 & 13)

sanmarco5

rayday2 wrote: »

It may be worth while contacting a debt charity you don't have to go with what they say but if you can't get out of the cycle for borrowing at least you know there is help.

I think CCCS do an online thing so you don't even have to speak to someone just put figures in.

I was just like you bought a house, got let down financially, had to give a couple of jobs in, credit cards went into loans, into secured loans, then more cards and luckily at that point I started my DMP and now every month that goes by I owe a little less and bank accounts have black figures again.

If I did a debt management plan would i be better off though? would I have anything to spend each month etc? wouldnt want to get tied into it & not be able to afford kids birthdays etc.

sanmarco5

sanmarco5 wrote: »

This is basically where money goes

Income me £725 pm
Income DH £1400pm
Child benefit £120 pm

Total income £2245

Moblie phone me £18pm
Mobile phone DH £20pm
Gas & Electric £65 pm (but that is bound to go up soon)
TV licence £12
Water £30
Sky £40 (includes TV Internet & phone)
car insurance £32
mortgage insurance £32
house insurance £28
Gas service £12
Mortgage £800
Loan me £123
Loan DH £150
Credit cards me £200
Credit cards DH £200

council tax £118

total 1880

leaves a total of £365 for food shopping & everything else (clothes going out etc)
We dont smoke & rarely drink, rarely eat out etc. Going abroad this year and yes its paid for on cards (silly I know) first proper holidays since we had the kids (aged 10 & 13)

forgot DH also has a £100 pm car payment

rayday2

sanmarco5 wrote: »

If I did a debt management plan would i be better off though? would I have anything to spend each month etc? wouldnt want to get tied into it & not be able to afford kids birthdays etc.

I have a better quality of life on a DMP than I did before. I had become a slave to credit card repayments. A DMP readjusts your balance of life you take out your wages what you need to live on, save for special occasions and emergencies then say there is £x amount left for creditors.

Now I am not saying it is an easy way of life but I find it two years on a lot less stressful than worrying about the postman etc and obviously your credit history is effected but I feel good about not having cards anymore. Three christmasses now without a thing on tick.

sanmarco5

rayday2 wrote: »

I have a better quality of life on a DMP than I did before. I had become a slave to credit card repayments. A DMP readjusts your balance of life you take out your wages what you need to live on, save for special occasions and emergencies then say there is £x amount left for creditors.

Now I am not saying it is an easy way of life but I find it two years on a lot less stressful than worrying about the postman etc and obviously your credit history is effected but I feel good about not having cards anymore. Three christmasses now without a thing on tick.

what was worrying me about doing something like that is obviously if you have a DMP you cant use any type of credit...I looked on one of the debt management sites I read about on here & it sais it would take 11 years to pay off the debt if the creditors agree to stop the interest etc. but that would mean 11 years with no credit, which in reality is a good thing, but what if there was an emergency like bolier breaking down etc?

mummytofour

rayday2 wrote: »

I have a better quality of life on a DMP than I did before. I had become a slave to credit card repayments. A DMP readjusts your balance of life you take out your wages what you need to live on, save for special occasions and emergencies then say there is £x amount left for creditors.

Now I am not saying it is an easy way of life but I find it two years on a lot less stressful than worrying about the postman etc and obviously your credit history is effected but I feel good about not having cards anymore. Three christmasses now without a thing on tick.

Rainday is soooo right. I went onto a dmp in feb. Dec and Jan I paid only token payments, which was £1 to each creditor, I used this time to save £500 which then meant I had money for an emergency without the use of cards etc. A DMP will screw your credit file but will enable you to sleep at night.