£360 wage - HELP HEAD NOW OUT OF THE SAND

doodles100

Oh my dear god....Please can somebody advise me...
Due to work related stress have been off work for 4 weeks only received £360 wage this month....
My world has now come crashing down for me to face what I must do...
I have debts sure...but have basically kept my head above water for a long time, yes paying the minimum payments etc...
I now have to figure out best way to sort this whole mess out..
I have a joint mortgage with my ex partner...long story...cant live together but he does his best for me and my daughter..guilt..whatever..dont get me wrong very grateful and allows a roof over our heads..was sold house by my mum when i fell pregnant at a reduced rate in order for us then...to get on the property ladder, as she was going to live abroad..would not sell house as I would not be able then to afford to get a mortgage on my own...its like maintenence payment - we thought..
Direct debits due to leave shortly...I do have an authorised overdraft facility of £400 which I have never used to date...
MOT/CAR TAX both due out this month...I am in such a mess I am simply blinded by it all...Have saved for those but if anything unexpected within MOT im screwed..
I have listed USUAL monthly - incomings/outgoings...I think I have covered everything...

Number of adults in household - 1
Number of children in household - 1
Number of cars owned - 1

Monthly Income (after tax) - 940 {this month ssp payment only of £360}
Benefits{TAX CREDITS/CB} - 440

MONTHLY OUTGOINGS..

Halifax loan - 119
Barclaycard - 10
Mint - 20
MNBA - 25
Capital One - 90
Catalogue - 15
Mortgage payment - 260 {my half of the mortgage payment}
Council Tax - 57
Electricity - 39
Gas - 30
Water Rates - 30
Telephone (land line)/Cable TV/internet - 40
Mobile Phone - 30
TV License - 12
Groceries etc - 180 {tend to buy offers in order to stock up}
Clothing - 20
Petrol/Parking - 60
Car insurance - 72
Road Tax (car) - 5 {85 every 6 months}
Building/content insurance - 25
Car Maintenance (including MOT) - 10
school/work dinner - 55
Presents (birthday, christmas etc.) - 20
Tobacco - 120 {quite aware huge problem}
Haircuts - 10
Social - 20
Paper/mags - 10


OUTSTANDING BALANCES
Halifax loan - 3388
Barclaycard - 200 APR 24.9
MBNA - 1500 APR 22.9
Mint - 868
Capital One - 3060 APR 15.9
Catalogue - 250 APR 29.9

I have got most info about APR at this time...
was thinking...that terrible word - consolidate - to be fair this has what got me here in 1st place that and the love of the SPEND...before I had my daughter...ok if im honest a little every year when faced with emergencies etc...you all know how it goes...esp when you live with no available cash...
Not sure either would Loan,cc accept a token payment for 1 month??

The best thing ive doen is list everything - i did not realise how much in debt i am and seemingly will be still paying it when my daughter has left home at this rate...she is 4..

Please, please,please any advice...bangs on the head...slaps...anythng at all would be most welcome...at my wits end - have been reading forums all morning - I am new on here please be as kind/honest as possible...I not sure if i can take it but willing to try!!!

Thanks in advance

september09

doodles100 wrote: »

Oh my dear god....Please can somebody advise me...
Due to work related stress have been off work for 4 weeks only received £360 wage this month....
My world has now come crashing down for me to face what I must do...
I have debts sure...but have basically kept my head above water for a long time, yes paying the minimum payments etc...
I now have to figure out best way to sort this whole mess out..
I have a joint mortgage with my ex partner...long story...cant live together but he does his best for me and my daughter..guilt..whatever..dont get me wrong very grateful and allows a roof over our heads..was sold house by my mum when i fell pregnant at a reduced rate in order for us then...to get on the property ladder, as she was going to live abroad..would not sell house as I would not be able then to afford to get a mortgage on my own...its like maintenence payment - we thought..
Direct debits due to leave shortly...I do have an authorised overdraft facility of £400 which I have never used to date...
MOT/CAR TAX both due out this month...I am in such a mess I am simply blinded by it all...Have saved for those but if anything unexpected within MOT im screwed..
I have listed USUAL monthly - incomings/outgoings...I think I have covered everything...

Number of adults in household - 1
Number of children in household - 1
Number of cars owned - 1

Monthly Income (after tax) - 940 {this month ssp payment only of £360}
Benefits{TAX CREDITS/CB} - 440 - have you checked you're getting all you're entitled to?

MONTHLY OUTGOINGS..

Halifax loan - 119
Barclaycard - 10
Mint - 20
MNBA - 25
Capital One - 90
Catalogue - 15
Mortgage payment - 260 {my half of the mortgage payment}
Council Tax - 57
Electricity - 39
Gas - 30
Water Rates - 30
Telephone (land line)/Cable TV/internet - 40 - May be worth ringing these and trying for a discount - I just did this with SKY and got a ''loyalty discount'' as I said I was CONSIDERING moving to virgin media, and could they offer me any better?
Mobile Phone - 30 - Contract or pay as you go? If contract again may be worth ring these up for a better deal?
TV License - 12
Groceries etc - 180 {tend to buy offers in order to stock up} - Lots of good advice on O/S board on how to reduce this considerably. Perhaps change your shop to aldi/lidl? Or drop a brand on everything?
Clothing - 20
Petrol/Parking - 60
Car insurance - 72
Road Tax (car) - 5 {85 every 6 months}
Building/content insurance - 25
Car Maintenance (including MOT) - 10
school/work dinner - 55 - Could this be incorporated into grocery shopping cheaper/take packed lunches?
Presents (birthday, christmas etc.) - 20
Tobacco - 120 {quite aware huge problem} - Is this roll ups? Perhaps consider trying to cut down or even quit? Pretty sure there's a thread for this.
Haircuts - 10
Social - 20 - There may be ways you can entertain the family for free?
Paper/mags - 10 - Personally I would get rid of this straight away. Plenty of good online magazines that are free.


OUTSTANDING BALANCES
Halifax loan - 3388
Barclaycard - 200 APR 24.9
MBNA - 1500 APR 22.9
Mint - 868
Capital One - 3060 APR 15.9
Catalogue - 250 APR 29.9

I have got most info about APR at this time...
was thinking...that terrible word - consolidate - to be fair this has what got me here in 1st place that and the love of the SPEND...before I had my daughter...ok if im honest a little every year when faced with emergencies etc...you all know how it goes...esp when you live with no available cash...
Not sure either would Loan,cc accept a token payment for 1 month??

The best thing ive doen is list everything - i did not realise how much in debt i am and seemingly will be still paying it when my daughter has left home at this rate...she is 4..

Please, please,please any advice...bangs on the head...slaps...anythng at all would be most welcome...at my wits end - have been reading forums all morning - I am new on here please be as kind/honest as possible...I not sure if i can take it but willing to try!!!

Thanks in advance

Try to stay calm, there are lots of more experienced posters on here that Im sure will give you a bigger help than I have. You will get through this and Im sure people will be along soon to have a look at your SOA.

Keep your chin up.

x

Tixy

Hi doodles - try not to get to stressed about this - there will be a way to manage.

Is your immediate problem just for 1 month (are you back at work now?)
If so then you should be able to offer token repayments to all unsecured debts (better than no payment at all). Or you could ask for a payment holiday of a couple of months on loans.

You should be able to cut right back on expenses for 1 month. So no clothes, as little as possible on groceries (should be able to feed 2 of you included packed lunches for £100 for 1 month -tips and advice on old style board).

Cancel newspapers (at the very least for this month). Ideal time to give up smoking (or cut down drastically/switch to roll ups to save money).

Your sick pay/benefits and overdraft should see you through this month with the above changes (and savings for the tax & mot).

After that you need a long term plan of action to start organising your money and clearing your debts, which we can also help you with. But you priority is to get through this month.

Good luck

misspoppy

Ok

the priorites are roof over your head food and utilities. Are you back at work/will you have a normal pay next month? If so could you use your overdraft and pay it back over the next few months. I see that you only just break even so you do need to make cut backs.

Your car insurance is HUGE do you shop around and make sure you get the cheapest deal, also if you buy online make sure you use a cashback site like https://www.quidco.co.uk

I'm not sure if you could phone council tax and ask for a break this month and pay it in Feb as long as you clear it by April you should be ok, in fact ask them if you can spread it over the rest of the year ie pay feb and march instead of having the break.

Speak to gas and electric and ask them if you can have a month off as well as your other creditors. I know it wont be easy but you will have to cut down the cigs, try to give up with a NHS plan but certainly you will need to cut back and ration them.

Good luck

Tixy

For future months

Income £1380
Expenses (incl Mortgage) £1105
Left for debt repayments £275
Minimum debt repayments £279
Shortfall £4

Your normal month figures show you are just about managing. But as above there are some longterm cutbacks that can be made.
Groceries can reduce. Shool and work lunches can be switched to packed lunches as work out much cheaper. (should be able to do all food incl lunches for £150)
Have you shopped around for car insurance? - this is really high
Tobacco can be stopped (or reduced to start then stopped)
Newspapers & mags can be cancelled.

I think you can easily save £150 off that budget to allow you to start making more than minimum payments. Then you need to pay the overpayments to the debt with the highest APR.

Good luck

doodles100

I have checked i am entitled to all befefits which i am already in receipt of...
it is just for one month as i am returning to work tomorrow - next wage will be normal...
Just looking at all made me wince...need to face upto the debt issue and organise what to do...
I know the cutbacks mentioned can be done and have seen on other threads how this can be achieved.
car insurance - i was already in a 12 month contract when changed car so they just quoted me...not sure if i can change - useless woman that i am...
Token payments to creditors.. was my main concern - wasnt sure if they will accept or even worth asking - never been in this position you see...

mobile phone - on contract tied in till march next year so will then swap to pay as u go...
home package - am with virgin for phone,broadband size M package - lowest they do...can shop around though - but usually just get bamboozled...with all the jargon...finding the forums very useful - what wonderful info is on here - who knew??
Any further advice greatly received - thank to who has already replied to me - u you are truly fab - already feeling a little easier about this month already...

Tixy

How long til car insurance is up for renewal? How many years no claims do you have?
You could in theory change mid contract but you would lose the years NCB you are part way through earning and you would probably find there are some cancellation fees or admin mentioned in the policy that would kick in so may not work out worthwhile.

I think groceries is actually suprisingly easy to cut down for a short while - have a look what is in your cupboards and freezer before you go shopping and start meal planning to work out how you can use up this food. For some inspiration here is thread about a family of 4 who were fed for nearly a month on £20 http://forums.moneysavingexpert.com/showthread.html?t=1129333 (its a very long thread but just the first few pages will show you how it is possible to get by on very little).

£40 isn't bad for a full media package I think (not sure virgin are as good as giving discounts as SKY)

For token payments there are a couple of templates - no are exactly right for you as you would need to adapt to your circumstances to say you have been off work sick and will return to normal payments next month. But I always find it easier to draft a letter if I have some others for ideas - http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=54
http://forums.moneysavingexpert.com/showpost.html?p=21654579&postcount=52
(national debtline website is also a good resource for sample letters).

They may not be very happy to accept token payments but at the end of the day they can't have what you haven't got and unfortunatley (for them) they are lower priority than mortgage, food and utilities.

gfplux

Hello doodles100,

You already have lots of advise to manage this months shortfall already but you have to make those phone call NOW.
Make out your SOA using this form. (link - http://www.makesenseofcards.com/soacalc.html ) This will automatically total the numbers. It can be saved (see the help) and you can change it every day if you want.
In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with.


Here is tip for after the panic.
Total up all your bills that you are paying annually or quarterly such as (not all these may apply to you) TV licence, Car road tax, Car, Buildings and Contents insurance, Car maintenance, Holiday, Birthdays, Christmas, and Emergency funds, etc. that you show monthly in your SOA. Then open a savings account and pay in that amount monthly by standing order. Then when those bills come along you have the money for them and you will not have to use the credit card. It takes a while to get this running smoothly but don't give up.


When you have got over this months panic will you go back to head in the sand?? debts of around £9000 have come from spending more than your income. You can change this if you want to.

This might sound harsh, examine yourself, is this really your “light bulb moment.” If you find plenty of reasons and excuses not to act immediately then the bulb has not come on properly. If you can not do without (this is a general list) - A Sky contract, Mobile Phones, Two cars, Lottery tickets, Air fresheners, Cloths for a year, Charity contributions, Savings for a child, Presents, Holidays, Fitness/Sports Membership, then again the bulb has not come on properly.



Good Luck

Shelldean

doodles100 wrote: »

I have checked i am entitled to all befefits which i am already in receipt of...
it is just for one month as i am returning to work tomorrow - next wage will be normal...
Just looking at all made me wince...need to face upto the debt issue and organise what to do...
I know the cutbacks mentioned can be done and have seen on other threads how this can be achieved.
car insurance - i was already in a 12 month contract when changed car so they just quoted me...not sure if i can change - useless woman that i am...
Token payments to creditors.. was my main concern - wasnt sure if they will accept or even worth asking - never been in this position you see...

mobile phone - on contract tied in till march next year so will then swap to pay as u go...
home package - am with virgin for phone,broadband size M package - lowest they do...can shop around though - but usually just get bamboozled...with all the jargon...finding the forums very useful - what wonderful info is on here - who knew??
Any further advice greatly received - thank to who has already replied to me - u you are truly fab - already feeling a little easier about this month already...

Call Virgin and tell them you've found a better deal elsewhere. I did and I've got a better package than you ( XL package) and I only pay just over £40. My package includes land line, ALL calls ( not mobiles or 0845 etc tho) Tv package plus broadband.
They did orginally place me back in a 12 mth deal, and warned that once it was over my charges would increase. This did happen but I called up and basically blagged it. Saying I hadn't been told the price would increase and they reduced it back down and it has remained down ever since!!
Gotta be worth a call!!!

doodles100

thanks so much lots of useful advice - will act on the phone calls...letters etc..
have read lots of threads now - gosh why on earth have i not been on here sooner...
thanks to gflux....very true what you say about light bulb moment - BUT...
i have not had a holiday for 4 years...air freshener ah..you got me...but on a serious note its a good job this did indeed happen to me as made me examine where the money goes and what i can do for the long term future...
So glad you have all been so kind to take time to read and reply
thank you so much

doodles100

wow shelldean thanks for the heads up with virgin...will defo try that...i had tried to sway them in July...they kept saying if i moved to sky they would charge me etc...i am out of the contract period....
gosh lots of calls to be made....

Tixy - car insurance...will be renewed June 2010...only 2 years NC...as this is only my 3rd year driving..late starter...