Much needed advice....

Jase748

required. Not exactly sure were to start really, but needless to say my finances have become a complete mess. Up to now every decision I have made regarding our finances has been quite disastrous really. Im married with 2 children. I wont bore you all with all the details however to sum it up here's were I'm at.

My monthly income £1500
Partners £500
Benefits £100

Outstanding on loans and credit cards equates to approximately £41,000 costing £813pm.
Mortgage £600pm
Household bills in the region of £400pm
According to the budget planner Im overspending almost £300pm

I realise I can reduce my monthly spending on perhaps Sky, and utilities bringing down my monthly spending slightly. My dilemma is the bigger picture though. What would be my next move. Re-mortgage (we bought our house 2.5 years ago for £105,000 its worth around £140,000 now ) if possible or CCCS? Im not exactly sure of the positives and negatives of either really, and Im certainly not sure what happens going down the CCCS path.

I have burried my head in the sand for long enough now and it has really started to affect me. As soon as my wages go in the bank, there gone!

I would be grateful for any advice given, really hope you can help. Many thanks

Jay

nicola1982_2

Firstly I agree - Sky goes. Secondly could either of you take a second job? Maybe visit CAB about the debts and they'll offer the best possible advice.

Try cutting down the food bill etc, visit the cutting down thread for brilliant tips. Cut up all cards except one which you can freeze in a bag of water for emergencies only.

Stay postive too!

Annie_Fanny

Firstly well done for taking the first step to sorting out your finances - it can be done!

We need a full breakdown aka 'Statement of Affairs (SOA)'. Have a look at this thread for guidance:
http://forums.moneysavingexpert.com/showthread.html?t=107280

Yes you certainly need to make up the shortfall and a little more......

Annie

Bothered!

Hi, well done for posting and welcome.

Are the loan debts secured or unsecured, also what are the rates on c/cards, can you get them down at all.

If you post a SOA we can see where the money is going and try to help reduce your outgoings.

Keep positive.

fizzel81

welcome and well done for posting
as suggested post your soa and then advice can be given on how to cut this down
if you were to re morgtage can you afford the extra payments and would you be tempted to use the cards again once you have cleared them (part of our problem was getting loans to clear the cards but we went back to using them again)
if you were to contact someone like the cccs they will give you advice on the best solution for your circumstances

Jase748

Ok then here goes,

Monthly Income:
My salary £1500
Partners £500
Benefits £100

Total Income £2100

Monthly Outgoings:

Mortgage £649 (mortgage is with Standard Life and its not the cheapest interest rate so I know I could save here)
Council tax £106
Gas £47
Electricity £51.50
Water £26.81
TV Licence £10.99
House Ins £15.21
Phone & Internet £63.46
Sky £60
Life Ins £24
Mobile phone £32
Car ins £23
Food £350

Total household outgoings = £1458.97

Debts:

Natwest loan £383.86pm (£22,957 @ 7.8%)
Cahoot loan £207.50pm (£10,100 @ 8.5%)
GE capital loan £47.64pm (£750 @ 0%)

Egg cc £62.33 (£3200 @ 15.9%)
Capital one cc £121.40 (£4000 @ 15.9%)

Total payments £822.73

Total monthly outgoings £2281.70

I think thats it but no doubt I have missed something, Oh by the way the loans are not secured!

tyllwyd

If you remortgaged to a better rate, dropped Sky and got Freeview instead, changed the mobile to Pay as you go, and did something about your phone and internet package (which looks sky high!), would that get you in a better position?

sanfrancisco

and food...wayyyyyyyyy too much. Get reading the old style board for cheaper cooking and meal planning.

Snich

Hi,

Congrats for posting!

These are just my first thoughts when glancing down. I'm sure some other nerds will have plenty of ideas...

Jase748 wrote:

Ok then here goes,

Monthly Income:
My salary £1500
Partners £500 Can he increase this or get a second job?
Benefits £100

Total Income £2100

Monthly Outgoings:

Mortgage £649 (mortgage is with Standard Life and its not the cheapest interest rate so I know I could save here) Good idea
Council tax £106
Gas £47 Have you looked at switching these to make sure you're on the cheapest supplier for you (using uswitch). Also turn down heating, switch off lights...
Electricity £51.50 As above
Water £26.81
TV Licence £10.99
House Ins £15.21 Is this the cheapest?
Phone & Internet £63.46 This is way too high. BT landline is 10pounds plus talk 18866 or similar. Internet 15pounds. Shouldn't be more than 30pounds per month.
Sky £60 This has got to go or minimise your package to under 20pounds. Realistically you can't afford this luxury.
Life Ins £24 Again, is this the cheapest?
Mobile phone £32 This seems extortionate. Can you get them to decrease tariff or switch to payg???
Car ins £23 This seems reasonable but have you shopped around?
Food £350 Too high for two people - we manage on 120 per month and many manage on under 100... Try the Old Style board for ideas. Make own lunch etc.

Total household outgoings = £1458.97

Debts:

Natwest loan £383.86pm (£22,957 @ 7.8%)
Cahoot loan £207.50pm (£10,100 @ 8.5%)
GE capital loan £47.64pm (£750 @ 0%)

Egg cc £62.33 (£3200 @ 15.9%)
Capital one cc £121.40 (£4000 @ 15.9%)

Total payments £822.73

Total monthly outgoings £2281.70

I think thats it but no doubt I have missed something, Oh by the way the loans are not secured!

You need to 'snowball' your debts - using the snowball calculator (sorry don't have the link). Essentially, you pay off extra from the highest APR debts first - in your case Capital One. Once this is paid off, use the extra money on the next debt down.

Also you haven't included any travel or car costs? Do you have these - I mean car tax, petrol, MOT etc...

Sorry this all sounds so critical. I think you have made a great start by posting this and plenty of more experienced people will come and give tips soon. :T

Good luck with it all! and Welcome to MSE!!

Hugs, Snich x

Annie_Fanny

Link for Snowball calculator...

http://www.whatsthecost.co.uk/snowball.aspx

CLAPTON

your figures show a shortfall of £180 although i'm sure there are more costs you haven't included (car tax, MOT, servicing, repairs, petrol, do you buy presents, spend money on xmas, holidays, lunches at work, school related costs?)

you could save fairly immediately by
reducing gas and electricity...have you checked the readings to make sure you are not overpaying...but by reducing thermosatat and the hours heating and hot water are on you should be able to save at least £25
sky..£60 saving
phone and internet : use BT £11 , internet max 15 and use call1899.com for calls say 10 saving of £23
mobile...convert to PAYG and only use in emergency saving 20

that gives you savings of £130 ish

next can you increase income...overtime or evening part time job or whatever.

definately looking at getting a cheaper mortgage deal...you dont say what you are paying but could be considerable savings..check it out today.