Not sure what is the best thing to do next

RAS

Hi

Well done for posting but what is apparent is that you have been living beyond your means for a while and that you really cannot aford to keep that rental property unless you stop paying the endowment. Also, you need to review that insurance - what is it for and could you get it cheaper elsewhere?

The cigs need to go, with the satellite TV and some pruning of other expenditure. I estimate that you could get rid about £285 of your monthly expenditure if you follow the advice above. That would cover your existing monthly deficit if you keep the endowment and a bit but not a lot.

If you pay the minimum on cards in the 30% APR range , your total debt will increase over the next year and at over 20%, you will struggle to reduce it.

You desparately need to pay off the MBNA card and as much of the Marbles as possible. It would be worth clearing the Monument as a priority if you can get a balance transfer back at 0% or a low percentage.

We need to see the maximum limits on those cards as well as the APRs.

What do you have around the house that you can sell on ammazon, e-bay or a car boot sale? You need to get the missus busy doing that and learning how to feed the family for under £200 per month.

Do you really, really need two cars?

Notsurewheretogonow

Thanks everyone for the comments - I want to use them as a constructive kick up the butt hence posting on here.

You are right there are other expenses that aren't shown, such as lunches at work, some entertainment (though we hardly ever go out to be honest - young kids and no money have seen to that).

I think I need to start a spending diary and see where these other bits of cash go and how much they add up to.

I know we have been living beyond our means for a considerable time, probably ever since we got married and our circumstances changes, however I am very keen to sort it out having pulled my head out of the sand. We have been trying to reduce the debts for several months but have barely dented them, so we really appreciate the help.

To start with, I am off to ring O2 to find out about swapping my phone over, then will make my way through the other comments and make a list of other things for me to do.

RAS

Get the missus to read this http://www.moneysavingexpert.com/protect/make-money and join the Money Saving Old Style, freebies, comps and gree- fingered money saving boards.

Get her signed up for mystery shopping, surveys and clicks.

join you local section of www.freecycle.org.

Jesthar

Heya,

Welcome to the forum! Best place to be found for constructive kicks up the financial backside!:rotfl:

I echo the others - at least 5k of that bonus needs to go on paying off your MBNA card and Marbles card - that interest is a killer! :eek:

Aside from that, your car insurance looks pretty high, and £42 a month for your MOT? Really?

Your water useage is also rather high if you are on a meter - I'm metered, and three months of your spend would cover my annual bill, including the standing charges (i.e.ONE month would cover what I am charged for actual water!) If you aren't metered, might be worth looking at, as you're paying out around £440 a year at the moment!

And I know this is a painful one, but paid TV really needs to be given the elbow for now - you'd be far better throwing the extra money at your debts. I have freeview, and it does me fine.

And if you can manage it, giving up the cigs would be a very good thing all round.

Hope this helps

~Jes

Sharon87

O2 on a contract? They're not the best for contracts. Their PAYG is excellent, especially if you get a genie sim card. If you top up by a tenner a month you get 300 free texts. If you top up by £15 it's 500 texts! You can get this for a fiver from the O2 site or in an O2 shop. (I don't work for them, I just love the deal).

I have Sky with phone and broadband included and you can get it for about £40 a month I think, depending on what packages you get. See if you can get cashbacks through www.quidco.com. I think you can as my brother done it.

Notsurewheretogonow

Ok so far we have reduced managed to get on a better contract with T-mobile at £10/month which should be sufficient for my needs, we'll look at the OH's contract when it finishes (which is fairly soon). Saving approx £15 to 20 each month.

Got Virgin to provide a better phone tariff which allows unlimited free calls anytime, which suits the OH's job better than the current one, saving approx £20 to 25 each month.

Got Sky to reduce their fees but this is partly as they offered us a cheaper deal for 3 months - need to remember to go back to them in Feb (have put a note in the diary). Saving £18 month.

Switched gas/elec - the Uswitch price comparison estimated a saving of £240/yr which is £20 each month. Did the switch through Quidco for some cash back.

Have written to the local authority and our two (yes two) water companies asking for payments to be made over 12 rather than 10 months.

Looked at balance transfers but there is very little to do, as most CC companies have reduced the credit limit to near the existing balance and are reducing it as they are paid off (ie very slowly!).

Rang about getting car insurance switched to 3rd party fire and theft but they advised that this would not reduce the premium - but they couldn't explain why - so there's another note in the diary to review this at renewal also.

Feels like some progress but obviously need to look at the other comments above and see what else there is to do.

Thanks for the constructive comments!

paybacktime2008

Wow you've been busy. Now add up the amount you are sdaving each month and make a standing order to one of your highest cards for that amount. Right Now! Otherwise all those savings will fritter away..............

HelzBelz

:T:Twell done :T:T

Notsurewheretogonow

Just a quick update to keep things ticking over.

We have switched gas/elec and found out that we are £200 in credit with NPower, so that's more use to us than them I think!

Switched OH's phone contract to something much cheaper (I think it is only £10 / month)

Local Authority have said that they have a legal obligation to charge us over ten months instead of twelve, I'll look in to this a little bit further and see if they will budge. On a happier note, the water company has agreed to charge over 12 months.

Oh and for Xmas pressies for our families we have got a bit creative and made baskets of stuff - home grown stuff, home made shortbread and some other bits and pieces.

I shall post here as and when I remember, but intend to keep up the posting.