That feeling again

carrottopsuk

gpkwells wrote: »

As no one truly knows whats around the corner you cannot say a debt is seen or classed as manageable.

The one and only circumstance where a debt can be classed as manageable is if you have enough liquid assests to clear it instantly.

Tough but true.

Very true with house prices going down, food, fuel & energy prices going up as well as unemployment on the increase. Things are uncertain at the moment unfortunately.

mrcow

carrottopsuk wrote: »

Very true with house prices going down, food, fuel & energy prices going up as well as unemployment on the increase. Things are uncertain at the moment unfortunately.

Well we're all in that boat aren't we? No one's jobs is 100% certain these days and even those of us with hundreds of thousands of pounds of equity in our properties are still facing difficult times ahead. All we can do is deal with our situations as we face them now. You can't beat yourself up forever for buying at the wrong time or over-borrowing yesterday.....the main thing is how you then go forward with it and the decisions that you then go on to make.

From the sounds of it, the OP & his wife have faced a level of debt that is the stuff of nightmares and have both taken it face on and are fully intent on repaying every penny. This shouldn't be taken lightly. I wish them both very well and hope that they stick around here, get familiar with the other boards on this site (which will save them/make them a small forture if they play it right!) and save buckets of money.

andys15

gpkwells wrote: »

As no one truly knows whats around the corner you cannot say a debt is seen or classed as manageable.

The one and only circumstance where a debt can be classed as manageable is if you have enough liquid assests to clear it instantly.

Tough but true.

sorry but i dont agree with this. its true to say we dont know whats around the corner but we cant live our life like this.
Me buying somthing on the tick is taken with my eyes wide open. before i did it i based it on my income and my outgoings. i cannot say no incase i lose my job, else i wold never do anything and save all my money just in case.
my reason for the post is being 340 down this month, all being equal i would be 680 down next month and so on and so on. i need to nip this in the bud now. hence coming on here.

lynzpower

andys15 wrote: »

This is a fair comment and no excuse really except to say. It is one of those buy now pay in a year. as soon as we are back from hols we will be budgeting for that to be paid of. gran will be paid every penny back by Mar as agreed. It is a rob peter to pay paul scenario, and without her help we could have not got the house. I will have to get a loan to pay her. which I would then pay back in 2 years.
My debt has mainly surfaced becausee i changed career whilst I had a mortgage etc, on first changing career my pay went to next to nothing whilst training.

I'm particularly worried by this comment. And I really want you to try and take on board what im trying to say.

Do you know we are heading into a worldwide recession?

Do you know that one of Britains largest lenders , the bradford & bingley, is STOPPING MORTGAGES ALTOGETHER as from today as they have no more money to lend?

There is an international shortgage of money to lend, and when it is its at exorbitant rates. You MUST face the strong possibility that you may not be able to borrow this money again in the future, particualrly if you are in negative equity. Please take this seriously.

I wonder too about your comments about how you havent had holidays for 7 years, and you are going without. I fear the reason you have to live what you see is a shoestring lifestyle IS BECAUSE YOU ARE PAYING DEBT BACK. Huge amounts of your income is going to paying debt ( and its interest) back!! If you continue this cycle of debt ( 0% or not, you know they are often
-odd percent VARIABLE!!! (on these HP deals, I almost got totally stung for this on a 0% sofa deal and managed to pay it off by the skin of my teeth before the interest ravages the payments. )

I also wonder about the frittering aspect. You have 800 quid plus unaccounted for every month. That is an astonomical amount of money to not be able to account for where it goes? 100 quid a week each for the parents? Do yo ufeel this money going through your fingers? Do you see it? The odd 20 quid out of the hole in the wall here and there clearly does all stack up. However, I think when your wife gets home she might be able to account for some of it ( household bills you might not think of the window cleaner maybe? the odd fivers mount up dont they

However the bottom line is neither of you need to get into debt at all , you are CHOOSING this slavery and Im really not sure why. If you could have been here 2 months ago, you could have taken control and saved the money for the blinds - up front! If you do have 800pcm laying spare or being wasted on the odd paper/ coffee/ car parking etc or buying things that you dont know yet you can get for free

Once your wife gets home, I hope she does read this, and I hope at the very bare minimum you start a spending diary and work out between you where it all goes. Its clear you are worried about your financial future, yet you will find that the decisions you have made have brought you to this point.

There is only one way out of this, and thats no more borrowing, and paying it back.

You can do it, you just need the penny to drop

Has someone got thelink for the snowball calculator please?

gpkwells

andys15 wrote: »

sorry but i dont agree with this. its true to say we dont know whats around the corner but we cant live our life like this.
Me buying somthing on the tick is taken with my eyes wide open. before i did it i based it on my income and my outgoings. i cannot say no incase i lose my job, else i wold never do anything and save all my money just in case.
my reason for the post is being 340 down this month, all being equal i would be 680 down next month and so on and so on. i need to nip this in the bud now. hence coming on here.

You dont need to save all your money and never touch it just in case.

You could however have saved the money for blinds and sofa etc (£800 unaccounted surplus) while still paying your debts. Once you had the cash you then go buy them and have no credit to worry about if something serious does happen around the corner!

Good luck with helping the wife to understand. Teamwork is needed to beat this!

urg123

andys15 wrote: »

Here is my SOA.
Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 3150
Partners monthly income after tax....... 1500
Benefits................................ 125
Other income............................ 0
Total monthly income.................... 4775

Monthly Expense Details
Mortgage................................ 1284.29
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 133 is this over 12 months?
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 32.8
Telephone (land line)................... 17
Mobile phone............................ 55 Can this be reviewed?
TV Licence.............................. 12.51
Satellite/Cable TV...................... 49 Can this be reduced to a lower package or even removed for a while?
Internet Services....................... 18 I believe there are some great TV/Internet/Phone packages that you might be able to save some money on here.
Groceries etc. ......................... 600 Cut this down - start at £400 and see if you can squeeze this down. Meal plan, shop to a list, buy a brand down.
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 21
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 65
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 30
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 Can this be reduced a little?
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 100 Is there a holiday booked or are you saving for one. Maybe you need review this.
Emergency fund.......................... 0
Total monthly expenses.................. 2722.6

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(1284.29)..0
Total secured debts........... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
dad............................35000.....1000......0
gran...........................10000.....0.........0
virgin cc......................900.......0.........0
furniture world................2100......60........0
hillarys blind.................1600......120.......0
Total unsecured debts..........49600.....1180......-

Monthly Budget Summary
Total monthly income.................... 4,775
Expenses (including secured debts)....... 2,722.6
Available for debt repayments........... 2,052.4
Monthly UNsecured debt repayments....... 1,180
Surplus(deficit if negative)............ 872.4

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total Secured debt...................... -0
Total Unsecured debt.................... -49,600
Net Assets.............................. -48,100

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

Hi Andy

I just thought I'd suggest some ideas to reduce your outgoings. As others have mentioned - try the OS board for ideas on savings money. Plan your meals for the rest of the month. Shop to a list. Use up the food in the freezer/Cupboards.
Join a few challenges: the grocery challenge, the No Spend
Days challenge. There are a few challenges to earn money a number of ways.
Look at what you can sell - maybe there's a bit of clutter that you can make money from.
Take advantage of sites like quidco - you can earn money while you are saving or purchasing.

You and your partner have great incomes and I know that you want to enjoy the money as you work hard for it. You really need to work at addressing the overspend and then work at reducing your spending so that you can pay off the debt.

I hope this is helpful.

URG x

andys15

lynzpower wrote: »

I'm particularly worried by this comment. And I really want you to try and take on board what im trying to say.

Do you know we are heading into a worldwide recession?

Do you know that one of Britains largest lenders , the bradford & bingley, is STOPPING MORTGAGES ALTOGETHER as from today as they have no more money to lend?

There is an international shortgage of money to lend, and when it is its at exorbitant rates. You MUST face the strong possibility that you may not be able to borrow this money again in the future, particualrly if you are in negative equity. Please take this seriously.

I wonder too about your comments about how you havent had holidays for 7 years, and you are going without. I fear the reason you have to live what you see is a shoestring lifestyle IS BECAUSE YOU ARE PAYING DEBT BACK. Huge amounts of your income is going to paying debt ( and its interest) back!! If you continue this cycle of debt ( 0% or not, you know they are often
-odd percent VARIABLE!!! (on these HP deals, I almost got totally stung for this on a 0% sofa deal and managed to pay it off by the skin of my teeth before the interest ravages the payments. )

I also wonder about the frittering aspect. You have 800 quid plus unaccounted for every month. That is an astonomical amount of money to not be able to account for where it goes? 100 quid a week each for the parents? Do yo ufeel this money going through your fingers? Do you see it? The odd 20 quid out of the hole in the wall here and there clearly does all stack up. However, I think when your wife gets home she might be able to account for some of it ( household bills you might not think of the window cleaner maybe? the odd fivers mount up dont they

However the bottom line is neither of you need to get into debt at all , you are CHOOSING this slavery and Im really not sure why. If you could have been here 2 months ago, you could have taken control and saved the money for the blinds - up front! If you do have 800pcm laying spare or being wasted on the odd paper/ coffee/ car parking etc or buying things that you dont know yet you can get for free

Once your wife gets home, I hope she does read this, and I hope at the very bare minimum you start a spending diary and work out between you where it all goes. Its clear you are worried about your financial future, yet you will find that the decisions you have made have brought you to this point.

There is only one way out of this, and thats no more borrowing, and paying it back.

You can do it, you just need the penny to drop

Has someone got thelink for the snowball calculator please?

hi thanks for your advice but there are some comments i need to put right and you will see none of my debt is because i have been over zealous.
the wage I am on now is only what I have been on for 10 months. 10 months ago I was on about 1600 per month and my wife nothing. Over the last 10 months aswell as paying my loans ((before my dad gave me some help and i bought the house), i was also paying £1500 towards redit cards.
ok so how did i get in debt: I used to earn £29000, and m wife £16000. When I left that job over 4 ears ago, we kept the house incase my new job didn't work out and we didn't want to leave the ladder. Ny wage went down to £13000 for 2 years and my wifes went to nothing, although she managed to get some work whils the kid were at schools. To lose so much money is very hard, and when he tennant didnt pay for 6 months, we had no choice but to sell up, and for 6 months or so we had to pay mortgage and rent. The lady in the house totally messed it up, we ad to claim on the insurance plus take out a loan to make the house sellable. Throw in with this, the car breaking about 2 years into my course times were hard. Not one debt though was out of any recklessness, it was about trying to move on. My wage is now £57000, and OH £25000, and again for the first 8months or so, we paid debts, got a house,, borrowed from family ( they never helped over he 4 years, a we wanted to manage alone), and they only helped this time, as the house we were in was being sold, and they wanted us to be settled, after the uproar of the llst 4 years.

lynzpower

Id also suggest that your building s & contents comver looks very high, I used to pay about 20 for both.

Policies can get cheaper too if you choose one that , for example, doesnt cover your freezer contents, or you dont want legal cover....

When looking, check out https://www.quidco.com - some policies will give you over 100 quid cash back for taking out a policy.

Gloomy_Past_Bright_Future

I totally understand why you bought your house, I too am sick of renting and just being given a couple of months notice to uproot family, business etc and to put your childrens stability first means a lot in my books.

Now to your wife, my husband works very hard in his own business and six months ago after a year of frugal living and paying off debts, started to use the saying "I deserve this because I work so hard", luckily I reigned in back him by saying what you deserve is to be out of debt!

Good Luck to you and all your family

GPBF

lynzpower

hi thanks for your advice but there are some comments i need to put right and you will see none of my debt is because i have been over zealous.
the wage I am on now is only what I have been on for 10 months. 10 months ago I was on about 1600 per month and my wife nothing. Over the last 10 months aswell as paying my loans ((before my dad gave me some help and i bought the house), i was also paying £1500 towards redit cards.
ok so how did i get in debt: I used to earn £29000, and m wife £16000. When I left that job over 4 ears ago, we kept the house incase my new job didn't work out and we didn't want to leave the ladder. Ny wage went down to £13000 for 2 years and my wifes went to nothing, although she managed to get some work whils the kid were at schools. To lose so much money is very hard, and when he tennant didnt pay for 6 months, we had no choice but to sell up, and for 6 months or so we had to pay mortgage and rent. The lady in the house totally messed it up, we ad to claim on the insurance plus take out a loan to make the house sellable. Throw in with this, the car breaking about 2 years into my course times were hard. Not one debt though was out of any recklessness, it was about trying to move on. My wage is now £57000, and OH £25000, and again for the first 8months or so, we paid debts, got a house,, borrowed from family ( they never helped over he 4 years, a we wanted to manage alone), and they only helped this time, as the house we were in was being sold, and they wanted us to be settled, after the uproar of the llst 4 years.

I understand this more now so thanks. But it still doesnt take away that you are going to take a loan out ( or hope to) to pay off another 10k debt from gran. I suggest you start paying her back, right now, out of the savings you wil inevitably find in your budget, in case you cant get that loan you are so dependent on.


Out oif interest, have you ever had savings as a couple? We are only just starting to really get into the throes of saving after paying debt back, weve realised that hardly anyone we know ( we are in early 30s) have no savings, and when weve asked for advice, most people dont know.