Blimey, We're over 30K in debt! Help!

mummyscamp

I am new to this whole thing - this is my first post and this is the first time me and my husband have faced up to the fact we are in a horrible financial mess! I believe this is called the 'Lightbulb Moment'??

We have sat down and worked out our budget using this site's budgeting tool. We made the shocking descovery we are spending (or borrowing) £800 more a month than we earn! Then we worked out debts and were horrified to discover we owe £30,531.16p - I feel a bit sick as I'm typing this.

We could do with any help/advice going -

Our debts are as follows:


4601.33 - Easy Jet C/C (CITI)
7363.00 - Virgin C/C
5338.35 - HSBC Loan
6625.00 - Loan from inlaws
5000.00 - Business C/C
371.43 - Overdraft No 1
1232.05 - Overdraft No 2



£30531.16 - Total

Oh *$!!!&**, I've just remembered we have a bill from the tax man of £1850 gathering interest and a bill from the vets of £450 (our poor dog was knocked down outside our house and we ended up having to have her put to sleep - really sad)

My husband is self employed and usually earns about £30K pa - I don't work as have 2 kids (one is 5 other is 18 months) and we get £361.09 per month in child benefit and child tax credit. I am willing to do whatever to earn more £, have been looking into selling stuff today (made £7 selling CD's to magpie music today!) and becoming an Usborne book agent etc etc - any other suggestions would be gratefully received.

I'm not sure where to start with paying this lot back - I can't see a clear way out yet but I'm hoping you might be able to point me in the right direction.

Good grief, I hope you can help!

Thanks,

Louise.

10past6

Hi Louise :hello:

Welcome to the forum, well, you've taken the 1st step, and that's posting here, were all in the same boat, we'll help you as much as we can.

Firstly, post your SOA (Statement of affairs) by clicking here

Take a look at my signature, contact one of the many charities listed for further assistance on dealing with your debts.

sarriep

It's scary to start with :eek: but soon gets easier - honest! Once you have a plan of action you will be able to look forward to the future!
Are you managing to meet minimum payments? If not a DMP may be the way forward. DON'T contact any fee paying companies - try CCCS - they've helped us loads! If a DMP is not for you they will offer you other suggestions.
Posting your SOA will help others to see how to help you!
Sx

Happytogetdebtfree

Hi louise, welcome to the boards , you have made the first step if you do an soa as advised people can take a closer look at monthly outings you will be surprised just how much can be saved and cut back that amount will soon be lowered so keep ypur chin up and stay positive xx

mummyscamp

Oh, Thank you - I will have a look at filling out our SOA soon and will contact CCCS and see what they have to say!

TotallyBrassic

Hi and welcome!

Once your SOA is up, it can be looked at and then I am sure lots of help will be on it's way to you. We have similar debts to you, and begin out dmp on 1st Nov, and you know what I havn't slept as well in months as when we finally admitted defeat with the debts and dealt with it.

Good Luck with it all,
xx

ixwood

where did the debt come from? You need to identify what you've been overspending on and cut right back.

mummyscamp

That'a good question "where did the debt come from" - we bought a house that needing completely modernising, a lot of the debt has gone there (still not finished it though!) and really we're not that sure where else it's gone! We don't buy swanky cars, don't buy nice clothes, I don't have a shoe compulsion, we're not sure - but we are sure we want it gone so here is our SOA - I hope it makes sense and that someone can advise. Thanks very much for the responses so far, really appriciate it!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 26000
Partners monthly income after tax....... 0
Benefits................................ 361.09
Other income............................ 0
Total monthly income.................... 26361.09

Monthly Expense Details
Mortgage................................ 750.84
Secured loan repayments................. 373.63
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 127
Electricity............................. 36
Gas..................................... 25
Oil..................................... 8.33
Water rates............................. 21.18
Telephone (land line)................... 30
Mobile phone............................ 50
TV Licence.............................. 11.61
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 350
Clothing................................ 10
Petrol/diesel........................... 105
Road tax................................ 28.33
Car Insurance........................... 32
Car maintenance (including MOT)......... 20.85
Car parking............................. 7.5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 24
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 65
Haircuts................................ 5
Entertainment........................... 150
Holiday................................. 142
Emergency fund.......................... 0
Business expenses....................... 333
Total monthly expenses.................. 2778.27

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 1800
Other assets............................ 0
Total Assets............................ 201800

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(750.84)...5.25
Secured Debt.................. 0........(373.63)...0
Total secured debts........... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin CC......................7363......25........0
Easy Jet CC (CITI).............4601.33...103.5.....0
Loans HSBC.....................5338.35...118.6.....?
Loan from Inlaws...............6625......125.......0
Total unsecured debts..........23927.68..372.1.....-

Monthly Budget Summary
Total monthly income.................... 26,361.09
Expenses (including secured debts)....... 2,778.27
Available for debt repayments........... 23,582.82
Monthly UNsecured debt repayments....... 372.1
Surplus(deficit if negative)............ 23,210.72

Personal Balance Sheet Summary
Total assets (things you own)........... 201,800
Total Secured debt...................... -150,000
Total Unsecured debt.................... -23,927.68
Net Assets.............................. 27,872.32

As I mentioned before there are 4 of us in the household - My husband and myself, our 2 kids aged 5 years and 18 months. We are selling a rusty old car (for whatever we can get) and we will sell the other soon (might get about £800 - £1,000) - That's about it - Thanks for looking -

Louise x

doodledo_2

Sorry just a quickie before I say anymore you have put monthly salary as £26k assuming it should be £2600.

Deep_In_Debt

Hi
Can you reduce your mobile phone - PAYG?

Also, I'm sure your groceries can be reduced. Pop over to the old style board for ideas. Also, batch cook, buy supermarked own brands, shop in Lidl, Aldi or Netto if you have one nearby.

Good luck.

doodledo_2

Welcome to the forum you are definately in the right place.

Things that jump out at me.

Groceries - definately room for improvement there. If you go onto the Old Style forum there is loads of advice on how to feed your family well and cheaply.

£55 for your internet and phone is quite high you can get good packages with everything combined probably for half that.

£150 a month on entertainment is huge lol definately room for some economising there.

£142 a month for holidays. IS this one already booked? Could you possibly go somewhere cheaper or not go whilst clearing your debts.

Good luck with your journey.