Desperate, and Banks keep saying no

fairylights_2

Hi!

I've just been reading your SOA and wondering whether your bills are halves? you split the rent with your husband, do you split everything else too? I mean the bills look about right unless you're only paying half, then you should try to switch them. If you're not splitting the bills, then maybe since he knows a nudge towards sharing those is a good start?

Plus your mobile bill is pretty big - can't you cancel it and go to pay as you go? that way you won't be so tempted to use it as you can see that your money's going down! Similarly, stop buying lottery tickets - they're costing you money, and not helping the situation. I'd suggest at this point if your combined finances are that bad that maybe the washing machine insurance should go? I mean, add up how much you spend on it over the year - that's about half the cost of a basic washer if it should go wrong - and it should be under warranty for the first couple of years anyway. Ditto the hospital plan and accident cover - are they really necessary?

Just a few thoughts ...

carolbee

Hi, I managed to get Lloyds after a bit of to-and fro-ing to accept reduced payments with interest frozen, didn't accept first offer and kept phoning until I changed the phone number!

these boards are great, I watched and took a lot of advice from them before I was brave enough to post just in the last few days

good luck with it all, you will get some great advice from those further down the debt free line than me.

mariannemarlow

Hiya

I split the rent and council tax, but i pay all the other bills. he pays for a few other household things. we probably do need to re-jig the bills a bit though. It's just that I used to live on my own and then we got a place together so the bills are mostly in my name.

Thanks for the reply and I love your member name

Hmm, not thought of payas you go. i think my contract might be up soon so it's def an option.

our washing machine is about 6 years old now and i darent cancel the insurance as we can't afford a new one.

also i darent cancel the hospital and accident plans as my dad died in a road accident and my mum struggled to pay for the funeral.

as for the lotto, i have to dream that i might win it otherwise i would be even more depressed.

fairylights wrote:

Hi!

I've just been reading your SOA and wondering whether your bills are halves? you split the rent with your husband, do you split everything else too? I mean the bills look about right unless you're only paying half, then you should try to switch them. If you're not splitting the bills, then maybe since he knows a nudge towards sharing those is a good start?

Plus your mobile bill is pretty big - can't you cancel it and go to pay as you go? that way you won't be so tempted to use it as you can see that your money's going down! Similarly, stop buying lottery tickets - they're costing you money, and not helping the situation. I'd suggest at this point if your combined finances are that bad that maybe the washing machine insurance should go? I mean, add up how much you spend on it over the year - that's about half the cost of a basic washer if it should go wrong - and it should be under warranty for the first couple of years anyway. Ditto the hospital plan and accident cover - are they really necessary?

Just a few thoughts ...

mariannemarlow

wow, i thought my debts were huge.
how did you get them to freeze the interest like that??

carolbee wrote:

Hi, I managed to get Lloyds after a bit of to-and fro-ing to accept reduced payments with interest frozen, didn't accept first offer and kept phoning until I changed the phone number!

these boards are great, I watched and took a lot of advice from them before I was brave enough to post just in the last few days

good luck with it all, you will get some great advice from those further down the debt free line than me.

black-saturn

As far as I can see you could get rid of all the following and put the money towards paying the debt off:

Washing Machine Insurance:£22.50 every 3 months (works out £7.50 a month)
Hospital Plan:£4.15
Accident Protection:£5.15
Overdraft interest charge £6.78

and cut down on the following by taking packed lunches to work and cooking as much as you can from scratch, home made:

I spend about £100 a month on lunches and shopping

carolbee

followed the advice from National debtline, and wrote the first letter, asking how much we owed, when I got all the figures I worked out how much we had to offer and shared out 'pro-rata' between them. enclosed a copy of this and our budget to our creditors, they all accepted first time round with the exception of lloyds, who got a bit more than their fair share (which we could afford) followed the advice given by many not to offer an unreasonable, unaffordable amount and we are managing very well, even able to over pay on some months, starting with the lowest, it psychological chipping away at the lowest first.

also made some other changes, other half got a local job and sold the second car

fairylights_2

Well, as far as the bills go, it's easy - you don't need to change the name on the bills, just set up a bank account for your bills - we did this about six months ago and life has never been so straightforward. Each month we transfer a set amount from each of our current accounts into the bills account. EVERYTHING for the house goes from there, so we always know the direct debits will be paid. The bank even offered to set up all our direct debits for us. It means that come payday, the bills money goes, then the cc money goes, and whatever's left is all we have to live on. Stops you overspending because the money isn't there.

I still think you need to cut those insurances - and your lottery - they're costing you almost £300 a year. Your mobile's another £540. Think in terms of annual spend rather than monthly, and you'll realise where your money's going better.

mariannemarlow

Hi, how do I get rid of the overdraft interest charge?

i shall take packed lunches in, this will save me a bit : hopefully

thanks for your reply

marianne

black-saturn wrote:

As far as I can see you could get rid of all the following and put the money towards paying the debt off:

Washing Machine Insurance:£22.50 every 3 months (works out £7.50 a month)
Hospital Plan:£4.15
Accident Protection:£5.15
Overdraft interest charge £6.78

and cut down on the following by taking packed lunches to work and cooking as much as you can from scratch, home made:

I spend about £100 a month on lunches and shopping

mariannemarlow

i will definitely think about it, but if my lotto numbers come up when i stop playing i shall be most peeved

fairylights wrote:

Well, as far as the bills go, it's easy - you don't need to change the name on the bills, just set up a bank account for your bills - we did this about six months ago and life has never been so straightforward. Each month we transfer a set amount from each of our current accounts into the bills account. EVERYTHING for the house goes from there, so we always know the direct debits will be paid. The bank even offered to set up all our direct debits for us. It means that come payday, the bills money goes, then the cc money goes, and whatever's left is all we have to live on. Stops you overspending because the money isn't there.

I still think you need to cut those insurances - and your lottery - they're costing you almost £300 a year. Your mobile's another £540. Think in terms of annual spend rather than monthly, and you'll realise where your money's going better.

Thefunkygibbons

You need to convert some of those expenses into how many hours you work for to cover

As for the washing machine, there are choices
1. Put aside the insurance money, and save for when it does break
2. Get a newer one from a free cycle type place
3. Realiase that if it breaks that you will be hand washing

I did it as a student and it is not the end of the world

Every penny counts