Huge debts - house sale to help out??

LilacPixie

Next store card APR is 26.49% if that helps any.

bananah

I cannot believe it has taken me this long to do this.

I have just gone through my October statements and discovered the following:

(These are all just my account details)
1. I am paying out £1240 a month in debts
2. I am paying £86 PCM on bank fees
3. In total I paid out £2800, with an income of £2500

If I do this every month, I will lose £3600 a year.

I can clearly see that I need to cut down where I can on things like taking cash out for lunches (I took out £120 in cash in Oct) and going out (to be honest I don't go out at all any more).

But the reality here is that this is a crisis, and I need help. I am going to contact one of the debt agencies ASAP.

GeorgeUK

I think trying to keep the interest as low as possible will be of most benefit as well as cutting down and sticking to a budget.

You'll soon be making a dent in the debt if all you money is accounted for. (are the debt including your OH's?)
It'll take time but if you are able to meet the minimum payments then there is not much more the charities will be able to advise that hasn't already been said. Definately still worth a call, but don't forget there is a wealth of knowledge and experience here for you too.

good luck

bananah

I know what you're saying, but at the moment I am paying (this is just me) 1280 in debts (which I cant change) and 1200 into our joint account to pay for all of our outgoings. We have gone through these, and we think we can get some things down (eg shopping, entertainment) but on the whole this covers mortgage, child care, utilities etc

So the upshot is simply that a take-home of 2500 pcm, and essential outgoings (before ANY other outgoing such as sports, lunches here and there, clothes, presents etc) of 2480 leaves me in deep trouble.

I cant see how I can survive like this!!

fatbelly

You're paying £1514 on £11 non-priority unsecured debts. You clearly can't continue doing this. But a dmp with CCCS could reduce this to 11 x £5 = £55 if necessary (and I have loads of mortgaged clients who are paying less than this on their non-priority debts with no problems)

Your esential outgoings are (I haven't changed any of your figures but I've assumed if your wife's income has disappeared then she stays at home at looks after the kids):

Mortgage................................ 931
Council tax............................. 122
Electricity............................. 40
Gas..................................... 30
Water rates............................. 25
Telephone (land line)................... 20
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Groceries etc. ......................... 250
Clothing................................ 50
Car Insurance........................... 30
Car parking............................. 10
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 30
Buildings insurance..................... 10
Contents insurance...................... 20
Life assurance ......................... 22
Other insurance......................... 10
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 50
Emergency fund.......................... 30

Total monthly expenses = 1812

Your income is, or will be:

take -home pay £2500
Child benefit 135.85
Child tax credit 90.70

Total income 2726.55


Please stop telling yourself that you can't do this. Most people on dmps can't offer 50% of the contractual amounts to their non-priority creditors.

GeorgeUK

Also, when does your mortgage get renewed?
If you go on a DMP, you may not get good remortgage rates (those in a DMP will be able to advise more on this)

Are these only your cards and OH has others?
If so, it may be best to see the full picture - otherwise your SOA says you have a surplus and should be able to make all the minimum payments. It'll be hard work to get out of debt, but it is certainly achievable.

fatbelly

The OP is now on a DMP with CCCS (if you understand those acronyms)

New thread here