Debt is spiraling out of control

Debt_Free_Chick

This is always a toughie but do you really, really need to run two cars? Could you take your partner to and from work, giving you the car during the day?

Think very carefully about this if your partner simply commutes and then leaves the car parked up all day.

gfplux

Hello savingcaz,
You have taken a great step by posting your SOA.
It can be sorted but will take a lot of determination but you will feel great when YOU are in control.

All I would add to the great comments and questioned already asked. Start today making a spending diary. You may find that there is a BIG difference from where you think you spend your money and where it really goes.

I assume you are both non-smokers

Good Luck.
Looking forward to your next post with the answers to everyone questions.

Trollfever

The distinction between what is business and what is personal seems rather blurred.

A couple of links:

http://www.businesslink.gov.uk/bdotg/action/home?domain=www.businesslink.gov.uk&target=http://www.businesslink.gov.uk/


http://www.bdl.org.uk/

matthew74

Mobile phones - wife and I used to have expensive contracts, now both on PAYG, now spend about £3 each on phone and text messages per month.
Also think that 2 cars is possibly an unnecessary luxury. Gas and electric are way too high.
Buildings and contents insurance looks high - mine is less than £200 per year for a 3 bed house.
Do you both need life assurance if you are not earning.

Can you consolidate credit card debt onto a low rate loan?

Good luck.

lamarsi

Hiya, hope your feeling a little better after posting, i've been in your position a couple of years ago and everything seemed hopeless but it isn't and i've seen worse situations here belive me. Put things into perspective though this is only money worries and not the health of you or your loved ones it can and will be sorted out. The little changes make a big difference and have a knock on effect... i changed my home insurance and got the both for £159 the year saving £170 which went of my credit card (29.9% but now paid off) I hope you're getting help for your PND, because until you do sorting out your money problems will feel like wading thru mud for you. There are some brill people on here who have loads of good advice so welcome aboard and take care

supersleuth

Hello,

Sorry this is a quick reply - I'll be back on this evening, but wanted to say hang on in there.

My situation is almost identical. I am just starting a slow recovery after PND and its the most awful thing I have ever known so I really do know what you are going through.

Like you I couldn't see any way out - it's totally debilitating. Here's what I did:

Came on here a LOT - these people are lovely and will never judge.
Contacted CCCS - in my case I have set up a DMP but they will look at your case on its own. I would guess that this is possible going to be a good option for you.
Changed my job - the stress was adding to it all and with tax credits I'm not much worse of now working for a lot less than I did in my "career girl" days - you can always go back to a career later - employers don't mind a gap for family rasing generally.

Take tiny steps and before you know it you will start to feel just a fraction better.

Feel free to pm me if you fancy a chat

Debs

david_hellier

gfplux wrote: »

Hello savingcaz,
You have taken a great step by posting your SOA.
It can be sorted but will take a lot of determination but you will feel great when YOU are in control.

All I would add to the great comments and questioned already asked. Start today making a spending diary. You may find that there is a BIG difference from where you think you spend your money and where it really goes.

I assume you are both non-smokers

Good Luck.
Looking forward to your next post with the answers to everyone questions.

Another way of using a spending diary is to allocate a specific amount to spend each week from your budget and deduct it as you spend through the week in a little note book. Try to get to the end of the week with some over so you know your'e not overspending.

shirlgirl2004

HI Caz you have been given some excellent advice. I haven't ventured onto this board before but popped over for a visit after I had a friend in trouble on the phone to me last night. I'd like to say thanks to everyone who has given Caz advice and hope things start to improve for all of you experiencing difficult times.

savingcaz

Hi all

Thanks for the replies, sorry haven't been replied sooner we've be at my inlaws!

ok -
Cars - i'm hopefully going back to work in september, there is no way we could afford to buy another car so that is why we kept on the 2nd car! Both my Hubby and I will be working in complete oppisite directions (about an hours drive apart from each other so it just won't be practical!) H works 15 miles away so if i drove him to work each day we'd be doubling mileage and petrol usage (i only use my car if i'm going over 4 miles away / or if it's pouring with rain!)

we are tied into a contract with sky, and mobiles but have reduced them greatly. I use my mobile a lot, esp at the moment with the pnd as i am lacking in confidence and text / phone my hubby / sister lots throughout the day.

Gas and lec are in arrears, we got a monster bill, have no idea how but was based on readings, it tripled what it was normally, we've complained but no such luck! I've probably used my dryer 10 times since xmas! so it isn't used lots really, we turn everything off to try to save electricity.

We started a spending diary yesterday, and will continue that!

Regarding shopping, no £150 isn't really enough but thats what we have to manage on, we can't afford more. We buy good stuff for the baby and we survive on what we can

I do feel a bit more positive now i've wrote it all down and feel like were making steps to get it sorted! I just hope the creditors will agree to take reduced payments, as i say we are just about surviving and to be honest if i do get this job for september we'll probably be ok. it's just scary not knowing.

Fire_Fox

Hope the in-laws made a fuss of you and your little one! Could they/ your sister/ your partner share looking after the baby whilst you go back to work part-time, perhaps locally perhaps evenings or weekends? This would save money on both childcare and mean you don't need two cars. It's not the value of the car that's the issue, you can't manage the running costs.

Part of the reason your energy bills will have increased so much was the unusually cold winter, part will have the been the huge energy price rises, and part down to you being at home all day on maternity leave. Luckily babies only need a temperature of around 16-18C so it's down to adults to put an extra layer on rather than relying on central heating to keep them warm. We have an electric blanket on our bed which only costs as much as a lightbulb to run (pence) so no need to heat our bedroom.

If you are using your mobile a lot, you perhaps should renegotiate your package: I have unlimited calls to landlines on mine, and still only pay £12 a month. You can also send texts for free on some websites, or use e-mail more often. I am sure there is an excellent PND support network on the Families board or you can always post here on the daily chat thread.

Something has to change with your SoA: at the moment you are effectively prioritising paying for luxuries - Sky, mobile phones and two cars - over actually having a decent meal!! I have had depression and anxiety myself and can promise you that a healthy diet and regular exercise is essential for good mental health.