£18,000 in debt and can't seem to get out of it...

Nishka

gizmo111 wrote: »

Sorry to hear about your job, but hopefully the one you had interview for will be offered.
Will you get any redundancy pay? Will you get paid next week?
Have a look here www.entitledto.co.uk to see how much you would get on just one wage and then do a new SOA based on just one income.
Now is the time to look at that grocery bill, and discuss and plan with your mum how to cut it.
Did any of your debts have PPI on them?

Hiya

Thanks...

I didn't get the job I went for the interview for so that's a no go.. But I do have interviews with marketing recruitment agencies next week - and they say they may have something for me... :rolleyes: fingers crossed.

My mum and husband have I have talked and we are all really going to cut the spending right down.. we have no choice now! :eek:

I will do a soa in a min.

I have lifestyle protect on the virgin card but we have only had the card a month (!) - transferred balance so don't know if that affects it? I also want to try and make the payments (which I think we may be able to or should be able to) because I don't want to damage our credit rating - which is excellent at the mo. If I claim under lifestyle protect and the tesco loan insurance wouldn't this damage it?

Feel so down. What a complete screw up. Thanks for all your support. :T

gizmo111

It won't damage your credit rating as the payments are being met by the insurance so wil lshow as up to date, what you need to be careful of is that you make the mimimum payments beforethe insurance kicks in.

Good luck with the job hunting, things happen for a reason and this may your cue to reassess your spending, get out ofdebt and have that baby you want.

Don't feel a failure, I was out last night and the manager of the restaurant said he is extremely busy at the moment with regulars having leaving parties because of redundancy etc, but he knows he is lucky at the moment as those very same people will not be regulars again until they get new jobs and finances sorted.

Nishka

Thanks.. I will talk to hubby and decide what to do.. good to know it won't damage our credit rating.. thanks.

Well here's the new soa... I have based it on the basic wage my husband gets - any bonus is a bonus!!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household......... 1
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1200
Benefits................................ 480
Other income............................ 200
Total monthly income.................... 1880
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 36
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 92
Gas..................................... 0
Oil..................................... 180
Water rates............................. 65
Telephone (land line)................... 12
Mobile phone............................ 60
TV Licence.............................. 10
Satellite/Cable TV...................... 55
Internet Services....................... 0
Groceries etc. ......................... 700
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 0
Buildings insurance..................... 8
Contents insurance...................... 7
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1365

Assets
Cash.................................... 0
House value (Gross)..................... 230000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 230000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 200......(36).......0
Total secured & HP debts...... 200.......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card ...................6000......60........0
tesco loan ....................14000.....136.......7.9
Total unsecured debts..........20000.....196.......-

Monthly Budget Summary
Total monthly income.................... 1,880
Expenses (including HP & secured debts). 1,365
Available for debt repayments........... 515
Monthly UNsecured debt repayments....... 196
Amount left after debt repayments....... 319
Personal Balance Sheet Summary
Total assets (things you own)........... 230,000
Total HP & Secured debt................. -200
Total Unsecured debt.................... -20,000
Net Assets.............................. 210,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

It seems we will have £319 over even with a monthly household bill of £750.. however, we will work to reduce this.

I have looked on entitled to and worked out JSA and tax credit allowances - thats where the £480 comes from not sure if this is correct.

We also spend £80 a month in travel to get to London and back to pick up daughter from her dads once a month (he does the pick up to us and we do it back) so this needs to come out of the £319..

So it's tight. But not impossible.. and hopefully only temporary. :eek:

gizmo111

Its tightish, but you will most likely find that you can easily reduce the groceries when you are at home a lot more and you'll find other ways to save that just seem to be time consuming. Also you have PPI on both the card and loan so that should be a saving as well. You'll be surprised how much less you can spend whilst at home, and how little you miss the things that you think are essential whilst working.

Will you be getting any redundancy pay?

Nishka

Thanks Gizmo.. You've been really helpful.

I am going to ring up Tescos and Virgin today and find out about PPI - I am still in two minds as to whether we should just pay them - which I think we can, or whether I should report I am redundant.. I suppose that's what the insurance is there for tho.

Well, it's certainly going to be a learning curve.. I think if anything has taught me to be more careful with money it's this!

gizmo111

Nishka wrote: »

Thanks Gizmo.. You've been really helpful.

I am going to ring up Tescos and Virgin today and find out about PPI - I am still in two minds as to whether we should just pay them - which I think we can, or whether I should report I am redundant.. I suppose that's what the insurance is there for tho.

Well, it's certainly going to be a learning curve.. I think if anything has taught me to be more careful with money it's this!

You've paid the insurance it would be madness to not claim on it.

angela110660

Having just read this thread so far I feel quite sad at your situation because you write as though all the changes are going to have to come down to you and no one else seems to be getting onboard. I hope that is not the case but honestly, if your partner for instance, is having big spends on haircuts and colours, paintball sessions, faddy diets - what are you getting out of all this right now? Who is the big spender in reality?
I am going to follow your fortunes with interest and hope that all goes well in the future with all the great advice you will be receiving on this site.

Nishka

angela110660 wrote: »

Having just read this thread so far I feel quite sad at your situation because you write as though all the changes are going to have to come down to you and no one else seems to be getting onboard. I hope that is not the case but honestly, if your partner for instance, is having big spends on haircuts and colours, paintball sessions, faddy diets - what are you getting out of all this right now? Who is the big spender in reality?
I am going to follow your fortunes with interest and hope that all goes well in the future with all the great advice you will be receiving on this site.

Thank you Angela... I do feel that way sometimes.... !! I think I do have moments of spending, but I think my OHs spending is annoying because he doesn't seem to realise the impact is has on the money... Like when he went and spent £240 on suits for his new job without checking what state the bank balance is or whatever... or without shopping around!!

I suppose part of that is my fault in that I took over managing our money and then he just assumes that it's running okay... ... Hmm.. ! Having talked to him about things though, and our current situation I am hoping he will be more careful!!

I went to Tescos earlier and brought most of the food for the week including general stuff like tea and some salad... I planned out some proper meals we can make that at least I can have - cauliflower cheese (cauli was in special offer), chilli mix (30p - I already have the ingredients in the cupboard), aubergeine (to make lentil and aub pasta - I have other bits at home). I brought value where I would have brought brand... it came to £64. I am hoping that will keep us going at least till nearly the end of the week...

I am going into work tomorrow to talk to my (now ex!) boss as he's asked everyone to.. It seems like (from another thread I posted) I may be able to claim 9.5 days untaken holiday as well as the one week notice pay... So I will ask and see what I can get.

While I am in town I will get daughters birthday present (scooter - £15 from TK max, cheapest I can find) and some little £2-£3 bits in Hawkins bazaar to bulk it up.

I have sent an email to my boss saying that I am coming in late tomorrow as given the circumstances I don't want to pay peak train fares!!

I am feeling a strange combination of completely depressed and absolutely gutted about everything, including the fact I feel so much of my identity is tied into work.. and on the other hand feeling like I can do this and I won't be beated.

!!!!in' life. :rolleyes:

[Deleted User]

I've just read this thread all the way through. Sorry to hear about the redundancy.

Lots of people have already suggested you fill in a SOA. Congratulations on your first attempt, but it still isn't complete. You've put nothing on for internet access, your LO keeps growing yet there is no buget for her clothes. You say you're spending £30 on LOs birthday, but you've not put that (or any other Birthday / Christmas / Wedding or other present giving event) in the SOA, nor have you put in the cost of haircuts :rotfl:Add in your LOs trips to her dad (put this in the 'holiday' line if you can't find another place to put it) and your spare cash is soon being used up. The clearer the picture you have, the better your plan of action.

It would be useful to break down the spending on food and transport. Running a car can cost £2 -4,000 per year (depending on the car). If you're including that in your food spends, no wonder it comes across as high. If you cannot do a retrospective tally of car costs, at least start from now.

Given the circumstances, can you all do a spending diary - including the LO if she gets pocket money (should make it fun!) Even if you do this for for one day it might help... I'm thinking this is the first step towards everyone completing a daily diary, which may be too scary right now.

Congratulations on making all the moves with recruitment agencies, insurance and your ex-boss. Great that you're taking control. I'd also agree with the suggestion already made that you and your hubby use this time to consider what it is you really want to aim for.

I was going to write "Good Luck", but this isn't about luck, this is about planning. Treat it like a strategy just like you have to do at work and it's amazing how much more focus that gives and how much clearer it becomes once detached from emotion.

If it all gets a bit tough, just remember you have a roof over your head, food on the table and you're surrounded by people who love you... that's a great bottom line.

[Deleted User]

Oh my goodness that was a massive post. I'm so sorry!