Please help, we've hit crisis point

shezza

Hi, I posted a couple of days ago asking for help in finding a company who would give me and my OH a loan so that we could consolidate all our debts in one place. However, everyone who replied said not to consolidate and post our SOA. So I went to the site and did my SOA, and boy did it make me cry. I knew we were in a bad way but seeing it all written down in front of me just broke my heart. We have nothing left by the time everything is paid, so emergency or unforeseen things just knock us for six. Our credit cards are to the max, so no help there, and no one will give us either a loan or a 0% balance transfer credit card, so I quite literally can not see how we can get out of this mess. My OH is a nurse and his registration bill came in last week and they want £240 which we don't have (we thought it was due next year), and if he doesn't pay it he looses his registration and therefore his job.

So here is our SOA:

Monthly Income Details
Monthly income after tax................ 1480
Partners monthly income after tax....... 1320
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2800

Monthly Expense Details
Mortgage................................ 494
Council tax............................. 91
Electricity............................. 106
Gas..................................... 10
Water rates............................. 25
Telephone (land line)................... 27
Mobile phones............................ 80
TV Licence.............................. 11.61
Satellite/Cable TV...................... 40
Groceries etc. ......................... 200
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 25.87
Car maintenance (including MOT)......... 20
Other travel............................ 48
Other child related expenses............ 166
Medical (prescriptions, dentist etc).... 7.1
Buildings & contents insurance..................... 21.31
Life assurance (with mortgage).................... 78.37
Other insurance......................... 6
Presents (birthday, christmas etc)...... 25
Haircuts................................ 10

Total monthly expenses.................. 1667.26


Unsecured Debts [FONT=&quot]
Description.................... Debt...... Monthly...APR
Halifax (SA).................. 6000...... 140....... 15.9... (minimum payment)
Halifax (NF).................. 4500...... 120....... 15.9.. (minimum payment)
Halifax (Loan)................ 3395...... 134....... 12.9
Car loan........................... 2821...... 217....... 12.6......(13 payments left)
Barclaycard.................... 30........ 10........ 15.9....... (3 payments left)
Moorcroft...................... 170....... 85........ 0............ (2 payments left)
Fraser card.................... 190....... 10........ 19.9..... (minimum payment)
Egg card....................... 1200...... 25........ 21.9....... (minimum payment)
TSB loan....................... 4000...... 190....... 12.9
TSB card....................... 8000...... 152....... 15.9.... (minimum payment)

Total unsecured debts........30306.....1083......

All help would be greatly received. We were woundering if contacting someone to get a DMP or a IVA would be the answer but I really don't know how they work.

[/FONT]

tallyhoh

Wow, why is your life insurance that high??????? Thats OTT, what does it include? Check the small print carefully, probably find it pays the same as mine for £8.25 a month.
Get rid of the mobile phones, you did without them a few years ago!
The grocery bill can be cut in half easily, check the "money saving old style" board.

frugallass

Hi

I've just scanned through and wonder if you could cut your mobile phone bill and satellite tv bill

Also the money put aside for haircuts and birthday presents are not necessary for a couple of months at least

have you applied for child tax credits / working tax credits? do you get child benefit?

Waspeze

Can't help too much as have never had a DMP or IVA but you could try this
https://www.cccs.co.uk/DebtRemedy/(S(khdes!!!gtoiyq45iucdlr3n))/Start.aspx

it might help?

Deep_In_Debt

I would suggest you call CCCS, National Debtline or CAB, who are all free and impartial and they will be able to advise the way forward for you.

IVA's are not suitable to many people. Your budget is stripped back to the bare minimum and a lot can change in 5 years - you could lose your job etc and not keep up the repayments and this could end in bankruptcy. A DMP is much more flexible and you have a reasonable standard of living. Which ever you go for, do go with one of the charities above and not a fee paying shark.

Good luck.

carrottopsuk

Virgin have some offers on at the moment.

http://allyours.virginmedia.com/html/bundles/index.html

Personally I would do without the TV and get freeview. You could get Phone, Mobile & broadband for £30. It's best to look at the deals out there & see what's best for you.

Good luck

Milly1974

Just a quick glance, and the one that sticks out most for me is the electric bill. Are you paying off arrears, as £100 a month seems huge.

Also, what are the £166 of child related expenses each month? Is this something that could be put on hold for a month or two?

Stay calm, grab a cup of tea, don't cry, and then everyone here can help you find a solution.

Hugs, Milly:grouphug:

shezza

tallyhoh wrote: »

Wow, why is your life insurance that high??????? Thats OTT, what does it include?

The grocery bill can be cut in half easily, check the "money saving old style" board.

The insurance is linked with the mortgage, it includes all the life insurances, sickeness and unemployment cover and critical illness that you have to have with a mortgage, which is probably why it is so high. We have had to use it in the past as my OH was off for 11 months a couple of years ago, and I have to say it was a godsend at the time.

I have joined the grocery challenge on the OS board. I have put us down for £150 this month, so if I can reduce it gradually it should be achievable.

frugallass wrote: »

I've just scanned through and wonder if you could cut your mobile phone bill

have you applied for child tax credits / working tax credits? do you get child benefit?

Unfortunately OH needs his mobile for his job and I have just started a new contract so I can't cancel without paying a massive penalty. We actually don't have any children together, the child expenses are what my OH pays in maintenance, I didn't know where to put it as there was no item in the SOA for maintenance.

mbaz

shezza wrote: »

Hi, I posted a couple of days ago asking for help in finding a company who would give me and my OH a loan so that we could consolidate all our debts in one place. However, everyone who replied said not to consolidate and post our SOA. So I went to the site and did my SOA, and boy did it make me cry. I knew we were in a bad way but seeing it all written down in front of me just broke my heart. We have nothing left by the time everything is paid, so emergency or unforeseen things just knock us for six. Our credit cards are to the max, so no help there, and no one will give us either a loan or a 0% balance transfer credit card, so I quite literally can not see how we can get out of this mess. My OH is a nurse and his registration bill came in last week and they want £240 which we don't have (we thought it was due next year), and if he doesn't pay it he looses his registration and therefore his job.

So here is our SOA:

Monthly Income Details
Monthly income after tax................ 1480
Partners monthly income after tax....... 1320
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2800

Monthly Expense Details
Mortgage................................ 494
Council tax............................. 91
Electricity............................. 106 is this monthly? Seems high can you shop around for a better deal?
Gas..................................... 10
Water rates............................. 25
Telephone (land line)................... 27 Get a deal with inclusive mins
Mobile phones............................ 80 you hould be able to cut these down as another poster has said try virgin - landline, TV and internet for £30 thena cheap freeview box
TV Licence.............................. 11.61
Satellite/Cable TV...................... 40 See above
Groceries etc. ......................... 200
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 25.87
Car maintenance (including MOT)......... 20
Other travel............................ 48
Other child related expenses............ 166
Medical (prescriptions, dentist etc).... 7.1
Buildings & contents insurance..................... 21.31
Life assurance (with mortgage).................... 78.37 shop around for better deal one with your mortgage prob isnt cheapest
Other insurance......................... 6 what's this?
Presents (birthday, christmas etc)...... 25 cut this
Haircuts................................ 10

Total monthly expenses.................. 1667.26


Unsecured Debts
[FONT=&quot][FONT=&quot]Description.................... Debt...... Monthly...APR[/FONT]
[FONT=&quot]Halifax (SA).................. 6000...... 140....... 15.9... (minimum payment)[/FONT]
[FONT=&quot]Halifax (NF).................. 4500...... 120....... 15.9.. (minimum payment)[/FONT]
[FONT=&quot]Halifax (Loan)................ 3395...... 134....... 12.9[/FONT]
[FONT=&quot]Car loan........................... 2821...... 217....... 12.6......(13 payments left)[/FONT]
[FONT=&quot]Barclaycard.................... 30........ 10........ 15.9....... (3 payments left)[/FONT]
[FONT=&quot]Moorcroft...................... 170....... 85........ 0............ (2 payments left)[/FONT]
[FONT=&quot]Fraser card.................... 190....... 10........ 19.9..... (minimum payment)[/FONT]
[FONT=&quot]Egg card....................... 1200...... 25........ 21.9....... (minimum payment)[/FONT]
[FONT=&quot]TSB loan....................... 4000...... 190....... 12.9[/FONT]
[FONT=&quot]TSB card....................... 8000...... 152....... 15.9.... (minimum payment)[/FONT]

[FONT=&quot]Total unsecured debts........30306.....1083......[/FONT]

[/FONT][FONT=&quot]All help would be greatly received. We were woundering if contacting someone to get a DMP or a IVA would be the answer but I really don't know how they work.

[/FONT]

I am on DMP with CCCs and would recommend them. You can get all interest and charges frozen and pay what you can afford to pay. They are brilliant.

good luck - keep us posted

Mx

Janey51

Hello Shezza.
Please don't panic.
Two years ago my DH and I owed £84000 and could only offer creditors £5 each with the help of the CCCS.
My DH died suddenly in June and believe me, money seems very unimportant now.
I asked for a review with the CCCS and had one Friday. My monthly payment has reduced from over £400 to less than a hundred on a debt of over £40000.
One of the debt charities will help you prepare a budget that you can actually live on so give it a go.
At least you will sleep at night.

horsechestnut

Can you sell something on eBay to get some ready cash?
Would your mortgage lender let you pay a lower payment for one month only, to pay the nurses registration>

Electricity is far too high. Can you switch providers? Can you use less?
Satellite/cable/ Phone. Can you get a deal on this? I have Virgin for landline and broadband which costs £17 including free calls.
Mobile phone too high. If you can't get out of the contract, see if they will reduce it. Or get a pay as you go.
Life insurance seems too high.

Credit Cards etc.
Two of these will be paid off in three months, then you can start paying off the highest interest ones first, as it will free up £95 per month.

See further threads on this site for money saving tips. (including using coupons to reduce your grocery bills.

Hope this helps.