Little advice please

sarriep

We're just about to start a DMP and I must admit that I feel a real sense of liberation! I know we may well get some hassle from our cc and loans. Our debts are similar to yours and minimum payments on cards were making only a small payment off the total owed. In the case of my Virgin card my balance was increasing with minimum payments. It may be worth using the snowball calculator to see how long it will take to pay off your cc and loans. Try www.whatsthecost.com/snowball.aspx to see. For us a DMP is allowing us a reasonable standard of living whilst paying off our debt. I looked into an interest free mortgage for a while (we're with Abbey - they just wanted £75 to switch) but it worries me that it will be hard to 'catch up' at a later date.
On the whole credit rating thing I NEVER want another cc or loan for the rest of my life! For the first time since being a student (many years ago...) I have a bank balance that's not an overdraft and I've still got money in the bank 2 weeks after being paid!!! I really don't care about mt credit score any more!
Sx

petrafyde

Well I reckon you're doing great so far. Keep it up!

Have you included everything on the SOA? I know it's easy to not include something. The deficit you're showing isn't as bad as I expected when I saw your initial post. Does the mortgage cost reflect what it was or what it is now?

jennynoo

Looks like you are doing a great job at cutting back. It probably wouldn't make much difference but could you do with out the cable TV? Freeview isn't that bad! Why is your gas bill so high?

JWM

Many thanks for the replies.

Yes the gas bill is high. Its a combo deal and when I did a search switching would save us £80 a year BUT uts from a company that is due to raise prices. So we are staying with the same company but trying to reduce our consumption.

Re the £25 for phone/TV/internet - I thought about that but we all watch a lot of programes and use the PC so I think it stops us going out and spending money - if that makes sense?

The mortgage is now, Abbey have suggested interest only which will be £775, we're on a fixed rate till 10/10. I know its a risk but the plan is to go interest only, pay everything off except the mortgage then hit the mortgage.
Thanks for the positive posts.

Once we switch to interest only I am going to ask the CC companies if we can reduce our payments/interest for a short period as we weould only be paying the minimum each month. Does anyone have experience of this?

If they say no we will have consider the DMP route as we will only be paying the interest and not reducing the capitial.

Does anyone have any thoughts on this?

BTW, reading this back its amazing how calm and business like I sound when writing it down, in reality I'm a complete wreck!

petrafyde

Good afternoon!

Is your council tax spread out over 10 or 12 months? Would save you a few bob a month to have it over the 12?

RAS

JWM wrote: »

The mortgage is now, Abbey have suggested interest only which will be £775, we're on a fixed rate till 10/10. I know its a risk but the plan is to go interest only, pay everything off except the mortgage then hit the mortgage.
Thanks for the positive posts.

Hi

Most of those loans and CCs are not much more than your mortgage. You need to hit the most expensive ones and then review. You need to get the paperwork out and look at the details for all the loans. Are you allowed to repay early without penalty? And if you do does the interest paid reduce?

Not clear whether A&L is a card or a loan? if it is a card or if it is a loan that you can repay with effect, then as your most expnsive debt, you need to pay this off first. Otherwise sort out the Abbey CC first.

JWM wrote: »

Once we switch to interest only I am going to ask the CC companies if we can reduce our payments/interest for a short period as we weould only be paying the minimum each month. Does anyone have experience of this?

The experience here has been mixed. They are quite capable of increasing the interest rate if they realsie you are in difficulties.

Is the amount you have listed the minimum payment or a higher figure?
Certainly reset the payments/DDs to pay the minimum on everything each month except the most expensive card. make a higher DD payment on that and then chuck all sorts of small bits at it during the month. It all helps.

If your credit rating is still good would either of you be able to get a LOB card onto which to transfer the most expensive debt?

dancingfairy

Just wondering if you can trim the groceries budget back at all. It sounds pretty good but you may be able to save a bit - head over to MoneySavingOldStyle board for suggestions on that.

Childcare/nursery - what's this - an after school club? can you arrange for your child to go to a friends/be looked after a bit by any family? Also does the childcare place accept vouchers and can you or your OH get them at work as this would help a llittle.

Life assurance - check this pays out for what you think it will - there might be lots of small print and it might not be what you need. See if this is a good deal by shopping around.

Presents -can you cut this budget by shopping in sales/making any presents etc?

Entertainment - can you find cheap things to do with your son? maybe picnics/walks/swimming/play grounds etc.

A few things to maybe think about there to help you on your way.
Good Luck
df x

dancingfairy

mystery shopping/overtime at work/ebaying/car booting/ internet surveys etc. Any way of brining in a bit more money? Maybe an ironing service?
Just a few more thoughts.

JWM

Many thanks for all your thoughts.

DH and I have had a big talk and the plan is:
1 Reduce the mortgage to IO (saving £300 per month)
2 Write to the CCs asking for a payment arrangement - then throw everything at it
3 If they refuse - DMP
4 Continue to live frugally - using some of the v helpful suggestions above

Will let you know how I get on!

Thanks again

Merlot

A few tips, may be of use:

Washing powder - buy tesco value washing powder and mix in a nice smelling one which is on offer, you could have a few months of washing powder for the cost of £3.64 approx.

Only wash on a 30, if you don't have young children i.e. tons of stains etc, pop the washing on a 30 quick wash, this will save on electricity.

Use white vingear as a fabric softener instead of comfort etc.

If you use mr muscle or the supermarket brand trigger spray cleaner, buy one and tip half of it into another empty trigger spray and top each up with water. 2 for the price of 1. (please ensure you label each one correctly especially if you have children).

Shop online and use the discount vouchers on these boards.

Drop a brand and do not buy on impulse.

Use Quidco for all your online shopping.

Merlot.x.