Do I have to start worrying about debt?

angeljay

Will try and answer all parts which people have noted on in my budget:

Can't change mobile tariff in first 9 months to a lower one, I am in month 4.

Kept basic Sky as I don't do much out of the house, at least it gives me something to watch instead of 1 - 5

I do all my food shopping online, i budget and buy only what I need, i take pack lunches to work so that is how much it comes too. I also have 2 cats which do cost a bit each month which I have included in there.

Presents, I don't honestly buy many anyway. I just included that if it popped up every 1 - 6 months

Haircut I have a friend who comes to my house to do it, i could budget on that.... yes I know that one but that is willpower as I always like to have a nice haircut.

£50.00 entertainment is for a month, maybe one trip to the cinema or a drink with friends at my house. I don't think I should lower that because my life would basically be sat in my house ALL the time.

sunshinejoclaire

can you get a Freeview box instead of sky?

angeljay

No overtime available, work has cut back my hours due to credit crunch etc. Could look at bar work and have been doing round my local town.

10 months for council tax.

Elec and gas, before I had a 15 year old boiler which bumped up my bills sky high so i had to pay that amount. I have split it between 2 but it is a one payment of 125 per month. Electric, I do all you have said anyway with plugs etc.

I dont have a BT landline fitted in my property, so I can only go with Virgin for Internet.

Clothing I don't usually spend that every month, so can keep an eye on that.

Travel £64.90 is for a yearly bus pass paid by direct debit every month.

Holiday booked, going in september.

Go to gym 4 - 5 times a week so i believe used a lot!

Barclays 0% runs out march 2010

Boiler is 2 year 0% loan.

angeljay

Thanks for all your suggestions above, but this is basically meaning I have to do nothing. Work and go home basically for god knows how many years until everything is paid off. What will happen when my mortgage rates rise and I am struggling to pay that? Spending a weekend in by myself is hard to cope with, i dont think I can do it for the next odd many years!

angeljay

I dont have an aerial fitted so can't get freeview, but can use the sky box the same way but then I would have basic channels to watch ......

anh1904

Angel - you asked if you should start to worry.
You don't need to worry (worry is merely a mental state) but if you do not start to act to address the situation you are in, then you will worry as it will have dire consequences.
You seem from your 11:03am answer not to want to change anything in terms of yuor spending, which mean you have no option but to improve your income. The things you want to enjoy are available to those willing to go out there and earn sufficient to enjoy them (so to speak.)

In terms of your ex, my guess is that he is left on the mortgage, but the divroce may well have removed his entitlement to the equity (OK, so there is none). If and when this goes into arrears, his credit rating will be tarnished just as much as yours, so if it is still amicable, you should forewarn him that it is going to happen.

Agree with others suggestions that there are plenty of potential economies you COULD make ... but only if you're willing to make them.

Good luck.

angeljay

Thanks anh1904, yes i have many times look at my finances to work out what I can and can't get rid of .... i just thought that maybe SKY Tv and the Gym get me doing something instead of sitting in the house a lot.

RAS

angeljay wrote: »

Thanks for all your suggestions above, but this is basically meaning I have to do nothing. Work and go home basically for god knows how many years until everything is paid off. What will happen when my mortgage rates rise and I am struggling to pay that? Spending a weekend in by myself is hard to cope with, i dont think I can do it for the next odd many years!

Unfortunately that is one possible consequence of your situation. or you can learn to do things that do not cost money.

If you do not reduce your spending by £200 per month very soon, you may have the choice between cutting back even more or bankruptcy.

Alternatively you can talk to one of the debt charities about a debt manangment plan but they will not help you until you have reduced your sends by £330 per month as they only operate when you have a surplus of £100. That would affect your ability to re-mortage but maybe not as much as an IVA.

If you do a DMP, IVA or go bankrupt you will not be allowed entertainment, gym or satellite TV and only minimal amounts for a holiday (generally £600 for a family with children). And get the lodger, even if only Monday to Friday.

So read your gas and electricity meters, go freeview, cut out the clothing, reduce your holiday costs as much as possible, and divert that after September and you might then just balance your books.

If you do not want to do this, then you would be better selling up so you stop adding £2800 plus per year to your debt.

You could try click, on-line surveys, and mystery shopping to get a few extra quid a month.

If you go back to sense of cards, you can use the snowball to understand when you debt-free date is.

Ames

Your gas and electric look high, have you checked the meter recently?

There's plenty you can do for free so you're not stuck in the house. How about mystery shopping, so you can go for a meal and even get paid for it?

Could you go running instead of using the gym?

Are you sure the yearly bus pass is the cheapest way to go? Round here a weekly one costs about a tenner, so that's less per month than yours.

Ames

Oh, just had another thought, if you want to get out of the house why not try volunteering? It's not just sitting in a shop on a saturday, there's loads of stuff you can do. That'd get you out and about, you'd meet new people and it'd give you a boost to be helping.