Help scared and worried

Smashing

SkintNScared wrote: »

Can't really cut down the hair cuts, as I have been using the same lady for years.

Can't? You have to. You simply can't afford it. Stop going, simple.

A £1900 saving, whilst great, is not nearly enough. I don't think you fully appreciate the position you are in - this is not a matter of simply cutting down here and there, you need a drastic rethink and completely change the way you spend money.

moneybuster

to be blunt you have no money to spend unless you are thinking CC again in that case it's not your money, and that will only drag you deeper in debt


concentrate on the immediate problems you should have asked for a payment holiday on your mortgage look at how your financial month runs but people will need paying and it may be wise to contact them as the direct debits near and possibly cancel them short term other wise your bank will charge you for returned DD's also have you any overdrafts you need to mention


kind regards MB

CashHound

SkintNScared wrote: »

Can't really cut down the hair cuts, as I have been using the same lady for years.

Are you locked in to a haircut contract? You really do need to drop this seemingly excessive expenditure.

Charlton_Taz

Agreed with the above posters. Okay you say you can save £1,900....but your SOA said your outgoings and debt repayments totalled £8,529..so with your £1,900 savings you now have outgoings of £6,629 every month? Put simply, how on earth are you going to pay it with no income? Is it realistic that you can both get jobs quickly on similar salaries?

project500

Sorry to hear about your situation, jobs are difficult to come by at the moment and looking at your circumstances if presented with this scenario we would need to do the following as there are no other options without debt compounding and crippling us .

Tell my creditors immediately the situation and negotiate with them possible settlements .
Move in with relatives or rent a very small flat and sell every asset (including house cars furniture and whatever) we had as quick as possible to clear debt as quick as possible and stop it compounding.
Then live as frugally as possible until one or both of us get jobs and cash flow returns to carefully plan our way back to a reasonable living standard.

This action would need to be done straight away otherwise the debt will compound very rapidly with no income .

Sorry and Good Luck

SkintNScared_2

Well, the Estate Agent has just left. He reckons we should put our house on the market for £465k and look at offers around £450k. He bought with him some rental details of smaller properties if we were going to go down that route and there is a lovely cottage to rent for £1,200 a month which is much cheaper than our mortgage.

Hair cut is a social thing, I go with a few of my girl friends and we have it done as a group, I could probably lose the tidy up every other week so thats a saving of £30 a month there.

Entertainment - husband is locked into golf membership at £120 a month. We both have gym membership (renewed in May for 12 months) at £107 a month.

Have got husband to phone up to see if we can return the cars that are on HP and get a cheap car until we are sorted, it doesn't need to be very big because there is only two of us so we could get something around £10k new I guess.

Now going to go and attack the utility companies to see if I can get the bills down.

Thanks for your help and suggestions so far

RAS

SkintNScared wrote: »

Well, the Estate Agent has just left. He reckons we should put our house on the market for £465k and look at offers around £450k. He bought with him some rental details of smaller properties if we were going to go down that route and there is a lovely cottage to rent for £1,200 a month which is much cheaper than our mortgage.

Where are you going to get £1200 per month from? Check out the maximum that you can get housing benefit support in your area (LHA) and then you need to be looking at unlovely cottages in that price range.

Hair cut is a social thing, I go with a few of my girl friends and we have it done as a group, I could probably lose the tidy up every other week so thats a saving of £30 a month there.

You have to give up the whole lot as you need that £70 to feed yourselves. You do not have this money coming in, so you cannot have it.

Entertainment - husband is locked into golf membership at £120 a month.

For how long is he locked in?

We both have gym membership (renewed in May for 12 months) at £107 a month.

Do none of your very expensive memberships have PPI insurance?

Have got husband to phone up to see if we can return the cars that are on HP and get a cheap car until we are sorted, it doesn't need to be very big because there is only two of us so we could get something around £10k new I guess.

Er NO you get something very second hand and for less than £2000, preferably less. if you have to go BR the OR may let you keep it.

Now going to go and attack the utility companies to see if I can get the bills down.

There is an old fashioned saying - "You have to cut your coat according to your cloth".

Do you know what the redundancy deal will be? How much of your debt can you clear?

BeautyandtheBeast_3

I would just like to say that You cut your cloth to suit.
I would like to tell you that my shopping this week came in at £29.31. Thats 2 of us!! It can be done but you have to make you money work for you and start spotting the bargains.

SkintNScared_2

RAS wrote: »

There is an old fashioned saying - "You have to cut your coat according to your cloth".

Do you know what the redundancy deal will be? How much of your debt can you clear?

No PPI on the gym membership or golf club I'm afraid. I don't even think that was an option. Hubby has 9 months left to go on his membership.

Didn't see anything I liked for less than £1,200. There were a few things around the £1,000 region but probably not big enough for us.

I can't really not have my hair cut! It would go wild. I don't think I could get it much cheaper than £70 or if it was a little bit lower it wouldn't be really worth it?

Car wise, surely anything not new or nearly new will just cost a lot of money to repair when it goes wrong making it no cheaper than a new car??? The smallest decent car new will be about £10k which is not a lot in car terms, especially compared to what we have now.

Katie-Kat-Kins

SkintNScared wrote: »

Well, the Estate Agent has just left. He reckons we should put our house on the market for £465k and look at offers around £450k. He bought with him some rental details of smaller properties if we were going to go down that route and there is a lovely cottage to rent for £1,200 a month which is much cheaper than our mortgage. Try a different estate agent, try the housing association, that is stupidly expensive for someone with no income and no savings - how will you pay £1200 a month??? You are in cloud cuckooland!

Hair cut is a social thing, I go with a few of my girl friends and we have it done as a group, I could probably lose the tidy up every other week so thats a saving of £30 a month there. YOU HAVE NO MONEY!! HOW WILL YOU PAY??? You have to stop, full stop unless your regular lady is going to do it for free. Seriously! Get a grip a haircut is a luxury, you can get it done by a trainee for about £10, or you can let it grow out.

Entertainment - husband is locked into golf membership at £120 a month. We both have gym membership (renewed in May for 12 months) at £107 a month. Again ask whether they can do anything to help, if not then this will be your entertainment and you will have to go without spending on "extras".

Have got husband to phone up to see if we can return the cars that are on HP and get a cheap car until we are sorted, it doesn't need to be very big because there is only two of us so we could get something around £10k new I guess. Ok great that you are looking at returning the cars but spending £10k on a NEW car!!! YOU HAVE NO MONEY don't you get it??? Where will you find £10k??? If you really can't manage without the car you should be looking for a second hand ford KA or similar for £1500 ish.

Now going to go and attack the utility companies to see if I can get the bills down. Good make sure you moniter your usage too.

Thanks for your help and suggestions so far

You really aren't appreciating the severity of your situation yet, we aren't trying to be harsh but you have to realise that you have no income, no savings and masses of unmanageable debt. You have to take urgent action, the longer it takes you to start living in emergency frugal mode the worse your situation will get and the more difficult it will be to get out.

If you don't deal with your situation you could end up bankrupt. Once bankrupt you could be excluded from returning to your career as there are limitations on what positions and offices a bankrupt can hold.

Wake up smell the coffee and start making severe cuts!