What's the best thing to do??

Julie67

Thanks for all the excellent advice

I have already changed the utilities/ TV Package/ and insurances.
I think you are all right we will keep the mortgage as it is and maybe try and get a cheaper deal but without borrowing any extra.
The other adult is my 19yr old son who works for his dad but as business is so quiet he has not had much income and I haven't had the heart to take board off him (I know too soft) Equally the insurance on the cars is high because he needs to be on the works vehicle. Petrol is high because my husband drives all over the north west, all day visiting different customers and the works car is an economical one.
I agree that we have been living beyond our means. We own one car and the other is on finance but it is a big expensive car and ifcan plan to sell and replace with something much cheaper and economical.
The mobiles are on contract and I am not sure how easy this would be to get out of, but I will explore this.
I plan to sit down with the whole family and explain the situation and make a plan (including keeping a spending diary) I don't think anyone else quite realises the seriousness of the situation.

stymied

Are you eligible for a balance transfer to a lower interest rate credit card?

Is there anyway that you can ask your private loan to reduce the monthly payments to £400 until you have the credit cards under control?

Katie-Kat-Kins

If business is quiet could your son and/or husband get some additional work???

Insurance for the works vehicle and running expenses for it should be paid by the business not out of your husband's take home pay. If the insurance is that high, is it worth the son driving the vehicle? Could he eithe rnot drive or drive something cheaper? If he drove his own car (he could get a cheap second hand small hatch back for £100) he'd be building up a no claims discount too.

Certainly look at swapping the vehicle which isn't for work for something small and economical (and second hand!) a smart/fast/luxurious/large vehicle is pure luxury.

Compare those bills again they still look very high, you can switch many things part way through the year.

You will be able to reduce the mobile bill if you persist with it and don't give up. Again, if your husband's mobile is for business use then the business should be paying for it.

Do get a bit of keep from your son IF he is being paid a salary, he needs to learn to pay his keep, but it doesn't need to be much at first. £50 a month is nothing really but would reduce your defecit to £125.

Get that TV cancelled and make inroads on the shopping budget. If you knocked £100 of your shopping, cancelled the tv, and got £50 a month keep off your son that would be your defecit turned into a surplus. Any savings elsewhere could be overpayments!

dancingfairy

I wouldn't necessarily say cancel the mobiles but I would look around and see what offers are available and then get your provider to give you a similar if not better deal. It would help if you knew how many mins you were using, what amount of texts you each need and whether you NEED not want to surf the net (ie if it's for self employed business purposes rather than just because). You may for example be able to persuade them to swap texts for minutes- I have never tried this but it is worth a go to get something that better matches your need but get as close to you can to your current usage for as cheap as possible.
If they can't offer you a decent deal find out how many months you have left until you can leave - this may then prompt then into finding a deal for you if you show you are serious about switching - even if they can only save you a little on each one. Then do the same thing when the contract is up for renewal or in another 6 months time if they really realy won't give you a decent deal this time.
df
Well that's what I would do - I expect Martin has a guide on it somewhere and I'm sure there is a mobile phones board somewhere.

g_attrill

Is your husband self-employed? If so, is the insurance and fuel being dealt with properly as a business expense? If he is employed then even if he dcan't claim fuel then I think it can be offset against his tax (at the standard rate per mile) if he files a return.

Julie67

He has an appointment with a new (wiser) accountant next week

dancingfairy

Your main problem appears to be that you have consistently been spending above your earnings. Before debt repayments you should have 900 pounds spare so you must have been seriously overspending at some point as that doesn't even include the hp.
It's good however that you have realised the severity of your situation and hopefully when you sit down and have a chat tonight everyone will be on board and will be able to chip in with it as it will take you all working together as a family.
df

hettiecarro

Make sure he doesn't pay for the first consultation. Small accountancy firms are struggling for business at the moment as lots of their clients are obviously self employed builders etc - so most will offer free initial consultation in the bid to get your business.

Fire_Fox

I think you should look at your son going onto Jobseekers Allowance until he can find alternative employment. Hopefully he will get a good reference from his present employer (!!) and have learned plenty of transferable skills working in the family business. There is work for those who want it, just takes the effort of putting together a good CV and covering letter and traipsing the streets. He needs to do this before all the students appear back in town and nick all the best jobs. Two part-time jobs are as good as one full time, temporary work as good as permanent.

ytfcmad

The figs the op has quoted don't stack up, have a look at original post on the mortgage board to see what i mean. Is the mortgage interest only or repayment?
According to another post by Julie67 mortgage payments are going to drop from £1200 to around £600 very soon (not stated above)
The poster is unable to grasp her situation or understand a way out.