Serious debt advice needed.

InThePitAndHatingIt

Hi,

This is my first post here, so please try not to confuse me with complicated terms. I've got a debt problem, which never was a major issue to me, but today is the day when I begin to clear up my life! At home, it's Me, my Wife, a 1 year old daughter, and a second due in June (the main reason for this new year's resolution!).

Our total family take home income is approx. £2100, inc. all tax credits (the minimum amount), child benefit, and everything else.

Outgoings are as follows:

£153,000 mortgage - fixed rate repayment until Jan 2007 at 4.99% - £850
Loan 1 - £6700 at £115/month
Loan 2 - £9700 at £130/month
Loan 3 - £10000 (just under) at £177/month

Kinda confused by the loans, the repayments may be allocated to the wrong loan, but they are all the correct values. Rates are 6.9%, 6.5%, and 6.9%

£4000 in credit cards - £2k on Natwest Gold, and £2k on Tesco Platinum.

We have £400/month of various other outgoings, which entail househould bills, council tax and the wifes diesel bills for her car (journeys to work).

Which leaves us just over £400/month to buy our shopping and pay the credit cards. As far as I can see we are buggered, unless I win the lottery or take out a consolidation loan that finishes when I retire.

I need some ideas! As a temporary measure for 6 months the wife has a Barclaycard with 6months int. free on balance transfer, which we could use for the credit cards? Or would that be a bad move?

Help!

JAMIEDODGER

what is the credit limit on your wifes barclaycard? and welcome inthepit xx well done for posting!!!

bank_of_slate

Hi in a pit,

You have done the right thing in coming to MSE!

We are or have all been in financial difficulty. Some have gone through unbelievable experiences of bankruptcy!

You will get lots of advice and support on here so welcome to the MSE forum.

It would help if you list a full statement of affairs (SOA) particularly the household bills, we are brilliant at spotting areas which could be improved on.

Also be assured that however you got into this position, you will never be judged on here!
I wish you all the best
....Linda xx

InThePitAndHatingIt

The credit limit is a whopping £18500 (if i remember correctly)......is that a record?

jellycat40

That is a big limit. However I am sure it is not a world beater. Put you statement of affairs on the forum and let the guys and girls look but I would think that you need to do more than save a few bits here and there. You need some real expert advice. Try Payplan, CCCS or National debt helpline. They will give you advice for free.

Louise

InThePitAndHatingIt

Update:

Ougoings:

Life insurance to cover mortgage - £14.55
Council Tax - £108
TV Licence £10.49
Finance for sofa (DFS 0%) - £44.91
Sky Digital (10 months contract left) - £46
Electric and Gas - £45.50
Water -£34

Guess that's £300 other outgoings, think I included CC payments in the initial figure. So now we have £500/month to use (i think).

Update again: I over estimated the wifes income....she earns £100 less than I thought!...so we're back to £400 / month

bank_of_slate

Hi, that gives you some money to play with, look at what has the highest interest rates, try to clear those first.
Check out the snowball calculator to see where paying things off will save you money in the long run!
https://www.whatsthecost.com/snowball.aspx
Keep a diary of the changes you make, it really helps to look at what you've done when you're feeling down.
A new baby always brings a sense of urgency to sort everything out ready for them, but remember it won't be sorted overnight so take it one step at a time!
...Linda xx

PS...Oh and keep posting!

Bestthingsinlifearefree

HI Inthepit,

Just a quick suggestion could you speak to your mortgage provider and see if it is possible to either take a payment holiday on your mortgage and then throw the cash at your debts or go interest only on your mortgage throw the spare cash at your debts and then once your position improves revert back to a capital and interest mortgage.

The sky needs to go (talk to them to see if you can reduce your package / cancel it)

Do you have 2 cars ? Could you survive / adapt to one.

I wish you well.


Best things in life are free.

black-saturn

That cant be all your expenses. Dont you eat? Do you travel anywhere? Dont you have any insurance? You need to think of everything to know exactly where you are.

Xbigman

Sky will let you downgrade to the minimum package before 12 months is up and the minimum package is only £15.

Have you defaulted on anything yet? Your mortgage deal has just over a year to run and if you default you may have trouble getting another. Its probably best not to mess with your mortgage yet as getting stuck on the SVR (standard variable rate) can be expensive. This isn't anything to worry about but is worth thinking about.
Regards


X

InThePitAndHatingIt

Bestthingsinlifearefree wrote:

HI Inthepit,

Just a quick suggestion could you speak to your mortgage provider and see if it is possible to either take a payment holiday on your mortgage and then throw the cash at your debts or go interest only on your mortgage throw the spare cash at your debts and then once your position improves revert back to a capital and interest mortgage.

The sky needs to go (talk to them to see if you can reduce your package / cancel it)

Do you have 2 cars ? Could you survive / adapt to one.

I wish you well.


Best things in life are free.

Just to clarify. We on a fixed term and our mortgage provider doesn't alloe payment changes or holidays in the contract period.

The £400 left over is for all other family expenses, food etc. Our cars are company cars, and as such only one needs fuel paid by us, the rest is covered by our employers...insurance, tax etc.

Didn't realise the sky could drop.....I do need to be on a premium package however, because it's sky+, otherwise its £10 extra. We also have 2 receivers in the house, both of which are on the contract.