OK...deep breath.. jump in. (SOA added)

Damita

I think now you have faced up to your debt, you can start chipping at them

Good luck and this forum is support for support

esbo

milliemonster wrote: »

No no no, don't secure your credit card debts to your house as esbo has suggested!!!!!!! totally bad advice, there is nothing in the OP's first post to suggest they can't meet their payments anyway and even if they can't, securing unsecured debt is nearly always a bad idea.

oh, and going to belgium to buy ciggies??? surely the cost in getting there defeats the cost savings you'd make anyway????

Causey, I loved your opening post, welcome to the board, you will get some fab advice on here (and not so fab sometimes!)

The point I am making about 'unsecured' debt is that is you miss payments, the lender can go to the court to get that debt secured on your house anyway :eek:

So what is the point in paying a higher rate for 'unsecured' debt, when in reality it can be secured on your home anyway? You may as well secure it and pay the lower rate surely?
You may be getting a false sense of security if you think unsecured debts cannot be secured on your home.
http://www.guardian.co.uk/money/2008/sep/14/debt.creditcards

As for going to Belgium well I guess that depends upon where you live and how much you bring back. I don't go myself I get it on the 'black market' so I pay £6 as opposed to £3.90 in belgium so it is hardly worth me going as the saving on the 120 'packs' i get (30 packs of 4 (50 gramme packs)) is only about £60 which would not leave much of a saving after travel costs.

beckseven

Hi Causey-welcome to the boards. Reading your thread was very similar to my story-having irresponsible 20s and then seeing the light thanks to this site in my 30s and after having my baby. I still didn't really knuckle down to this until June when I found I was expecting my second baby and realised I had to get real! Good luck with your journey and you will get there-I'll look forward to reading your posts-and it's made me determined to bite the bullet and put some stuff on Amazon as I've got loads of books!

WorkingHardDFW

Hi and welcome

The first steps are the hardest. Admitting to your debt is the hard part.

My advice is to sort yourself out a budget for everything and anything. Its the overspending against your budget when the debts start mountaining up. I've kept a spending diary since Jan and its been invaluable in showing up where we're over or occasionally underspending :rotfl: and adjusting our budget accordingly.

It does become such a hobby this debt busting - good luck:T

clearmydebts

Hi Causey,

Hi and welcome. I am 31 and feel guilty too for being so irresponsible in my 20's and now having a fair amount of debt. But well done for finally admitting it. You are right too about how little choices people have when they are in debt. I feel constantly guilty for treating myself to anything because I know it should be going off my debts.

But you are here now and will get great support from this forum. I found joining a few challenges very rewarding. It helps to motivate me anyway.

I look forward to hearning how you get on.

causey25

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 950
Partners monthly income after tax....... 800
Benefits................................ 75.2
Other income............................ 100
Total monthly income.................... 1925.2

Monthly Expense Details
Mortgage................................ 711
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 136
Electricity............................. 34
Gas..................................... 29
Oil..................................... 0
Water rates............................. 38.63
Telephone (land line)................... 25
Mobile phone............................ 15
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 10
Petrol/diesel........................... 35
Road tax................................ 0
Car Insurance........................... 31.09
Car maintenance (including MOT)......... 17
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 160
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17
Pet insurance/vet bills................. 0
Buildings insurance..................... 38.03
Contents insurance...................... 0
Life assurance ......................... 30.74
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
child trust fund........................ 10
Total monthly expenses.................. 1644.44

Assets
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 126500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 101000...(711)......6.58
Total secured debts........... 101000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................10665.....250.......0
HSBC...........................3300......85........0
NORTHERN ROCK LOAN.............8000......110.......7.9
Total unsecured debts..........21965.....445.......-

Monthly Budget Summary
Total monthly income.................... 1,925.2
Expenses (including secured debts)....... 1,644.44
Available for debt repayments........... 280.76
Monthly UNsecured debt repayments....... 445
Surplus(deficit if negative)............ -164.24

Personal Balance Sheet Summary
Total assets (things you own)........... 126,500
Total Secured debt...................... -101,000
Total Unsecured debt.................... -21,965
Net Assets.............................. 3,535

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.

Thank-you so much for your replies - I am finding this site such a fantastic place. (I spent a very enjoyable half an hour browsing the savings board yesterday - oh yes, one day I too will be making use of that ISA I opened 7 years ago)

Household consists of me, OH & 4yr old.
Whilst I can see that big scary minus figure at the bottom of the SOA - my son will be starting school in January & I will be going back to work full-time them (OH will stay on about 28hrs/wk).

This will give us nursery fees (£160) plus xtra earnings of c£270 to throw at debts.
Plus we have our 2 mths council tax & water rates free - about another £400 - before my first 0% deal runs out in april 09.

Just to clarify - I gave up smoking 5 years ago - but if I want to depress myself I can still calculate how much I spent on fags in the 17 years I was a smoker.
And - thank-you whoever it was who made the point about British Gas - that is a really good point & one I need to watch - I do feel I am underpaying at the moment & when things become a little less tight after xmas I must bite the bullet & up my payments.

Sorry for going on so much - it's very soothing writing it down rather than it going round & round in my head at 3am!Am off to stroke my West Wing dvds one more time now before deciding whether to post them on Amazon...