Advice needed... we're finished :-(

Entrepreneur_en_faillite

syfodyas wrote:

I think I have blown it though because I now have added two searches against my name after my failed attempts with nationwide and natwest.

Every credit company has differnt criteria by which they lend money. I think a consolidation loan with your bank (they are the most liekly to lend as they can see your banking rexcord whereas other 'outside' credit companies cannot) may well be the best option, one monthly payment spread over as long a time as possible. But make sure that you have an option to make overpayments as and when you can afford, and do not take the banks payment protection, as this is most liekly going to be hugely overpriced.

Also, I agree with Homer Simpson, where does all your money go each month? have you forgotten to list some items?

Just by making quite small adjustments to your lifestyle you can make huge monthly savings!

If you can get a grip on this now you can stop your situation spiralling out of control

Good luck!

Simon-2k

A little tip for you regarding the electricity bill, Speak to your provider tell them you cant afford to pay it and ask them to install a card meter. This will then pay for the electric bill slowly over a number of years so much so that you wont even notice your paying it back.

Another benefit to this is you pay weekly on a card meter so no more nasty big bills.

simon

syfodyas

a lot of you are asking where does my money go. remember on top of the childcare arrears, we have to regularly pay £400 per month. On top of the council tax arrears we have to pay £110 a month.
We also pay TV licence quarterly which works out as just over a tenner a month, around £80 for two t mobile lines which are under contract.. £39 on sky, again under contract and if we downgrade we are liable to pay £10 extra for sky plus which makes it the same anyway, £15 contents insurance, £25 water.
Electricty bill is high apparantly we have increased our usage. I have asked them to check the meter as im sure its faulty - until then they have put the account on hold.

I could go to natwest for a loan because they know my banking history, however my banking history isnt the greatest, going over my overdraft, returned direct debits etc..

Im not saying my situation is the worst, but its certainly one where I cannot see a way out.
Paying minimum payments on credit cards is like throwing money in the toilet. NONE of it will go towards paying the native balance.
How can I ask them to freeze interest and what implications will this have?

Entrepreneur_en_faillite

Asking a lender to freeze interest will involve them putting you onto a payment arrangement, which can be done by simply calling them (the number will be on your bill or on the back of the credit card). This should reduce the monthly amount you pay to them for a short period of time, however, you should be aware that they will make a note that your card is under a payment arrangement on your credit files (go to https://www.experian.co.uk & https://www.equifax.co.uk for more info ).

It may be an idea to give CCCS a quick call to ask some advice, they will be able to help you. https://www.cccs.co.uk or 0800 138 1111

bazzaang

Hi I am currently sorting out my own debt situation, owing around the £35k mark. Looking at yours there is one step you can take straight away. Let us know the credit limit on all your cards. Do a balance transfer(s) to the card with the lowest interest rate if you have room. Egg allow you to transfer to overdrafts so you could use your egg card to transfer money towards one or more of the overdrafts to avoid paying huge overdraft fees.

Anyway best of luck keep plugging at it

Bazzaaang

System

Hi syfodyas

Firstly, do you want a short-term or long-term solution to your problem?

Short-term solution would be to see if you can get a consolidation loan from somewhere else and keep the wolf from the door.

I feel without a loan we are forever trapped in a cycle only paying interest on the cards/overdraft and will never actually pay off the native balances.

Personally I think the opposite is true. With a loan, and the extra financial freedom that will give you, you will trap yourself in the cycle of relying on credit and will probably again get to the stage where you need a top-up loan a year or so in the future. Remember all the interest you'll pay on a consolidation loan too.

The best solution - and the one alot of people have to be dragged kicking and screaming into - is to go through CCCS or Payplan and totally change the way you use and view money.

This involves sacrifices and isn't easy, but is definately the best way to address your current situation.

First, get a proper budget together (the budget planner above should help) and find out your monthly surplus or deficit.

Ignore debt repayments when calculating your budget.

Whatever's left is what you have to pay your debts with. This is divided into priority and non-priority debts.

Your Priority debts

£1300 arrears on council tax
£550 arrears on electricity bill
around £300 arrears on childcare costs

Your Non-priority debts

£500 Capital One Mastercard
£400 Capital One Visa
£700 Natwest Mastercard
£200 Capital One Visa
£500 Egg Card
£55 Additions Storecard
£980 Natwest Overdraft (mine)
£250 Natwest Overdraft (Partners)
£730 Natwest Overdraft (joint)

You'd next have to arrange to pay whatever you could off your Priority Debts each month and then come to an arrangement with your non-priority debts, even if it meant only paying them a £1 a month. This is lengthy and a headache but certainly worth it in the end.

You'd also need to open a new basic bank a/c to protect both your salaries (ie prevent your existing banks using them to repay your existing overdrafts).


I know that seems a lot of hassle, but if you really have had enough of living in debt and want to take proactive and positive steps to change things, this should help you.

Call the CCCS - you won't regret it.

Best wishes
Dave

Entrepreneur_en_faillite

bham-dave wrote:

Hi syfodyas
The best solution - and the one alot of people have to be dragged kicking and screaming into - is to go through CCCS or Payplan and totally change the way you use and view money.

This involves sacrifices and isn't easy, but is definately the best way to address your current situation.

I couldn't agree more! :T

homersimpson_3

agree you should contact cccs. get rid of sky and both mobile phones. there are luxuries at the moment you cannot afford- if you have to have mobile then change to payg- why is mobile phone essential? do you have a prepayment meter for electricity? can you find someone to mind children- say a friend or grandparent etc

jen_jen_2

you really need to sit down and do a full income and expenditure list.

without any of the non priority debt (credit cards and loans) how much do you have left over. can you afford to reduce any expenditure anymore?

now can you pay your minimum payments? - if yes look at a loan

if no you need to get more advice and contact CCCS, CAB etc.

i know your situation seems bleak and there is no way out but that is not the case and as many posters on here will tell you dealing with the situation will ease the stress and worry you are currently enduring. you may have to live without credit but thats not always a bad thing.

good luck and if you feel up for it post all your expenditure on here for anylisis and tips.

Spendless

Re- the child in nursery-How old is s/he? Have you checked with tax credits to see if you qualify for help with childcare costs. You can get help on childcare on quite a high salary but it is dependant on your costs. Check here www.entitledto.com
If you don't get help via tax credits have you asked either of your employers if they do or will consider doing childcare vouchers (such as Busybee). If so you can salary sacrifice upto £50 a week, the money sacrificed is tax and NI exempt. can be a big saving especially if one of you is a 40% tax payer. If both your employers offer them you can both salary sacrifice £50 a week in return for the vouchers.
If child is coming up 3 there is also non-means tested funding for upto 12.5 hours per week in term time.
Have you looked into other forms of childcare/other nurseries eg I'm moving my daughter to a nursery closer to our home that charges £4 a day less but doesn't include breakfast. With her about to go 3 days a week that's a saving of £12. It won't cost me that to feed her in a morning.
Would any of these suggestions help with your childcare costs? If childcare is a problem in your area I would make this bill 2nd priority after your council tax.

As to the rest I agree with what's already been suggested, get rid of sky, mobiles or change to payg.