Finally got a reality check!!

elzie

Hi All,
I have been searching these sites for months in denial about my debt problems, and now having realised that i am going to struggle yet again this month to pay all the bills i have had my lightbulb moment.....

My salalry is £18000 a year which is about £1100 a month take home, yet I had my second child in february so currently on maternity leave which is a takehome amount of £400 a month after tax and minimum pension comtributions. I also make £50 a week looking after my aunts toddler for 5 hours and means i can take along my babs and my other one is at school so thats all good. I also work one shift a week in my local pub for 4 hours i get £25.

My hubby earns £293 per week takehome pay.

I also receive £116.60 wftc and £83.50 child benefit until the baby is one.

Outgoing per month are:

N Union Accident insurance 2.98
Water 42.00
gas 40.00
Tv licence 10.99
Electric 30.00
Mortgage Repayment protection 35.66
Bt (quarterly) 13.50
Life insurance 10.02
Life insurance 18.77
Life Insurance 14.45
Life Insurance 20.27
Life insurance 24.60
Life Insurance 8.27
Life Insurance 115.57
CIS Child savings 10.00
Fortis car Insurance 17.61
Sky 21.00
Remortgage 244.24
Mortage 668.61
02 Mobile 35.00 (now cut down to £8 from June)
Fortis Car Insurance 30.71
House Insurance Building and Contents 23.47
American Life Insurance 5.95
carphone warehouse phone and broadband14.99
Council tax 115.00
Food approx £240.00
Petrol £80.00


Debts are:

Cahoot Flexi Loan of £8732.18 at 8.5% APR monthly payments £174.64
Burtons card £200.00 paying off £35.00 per month
OH Halifax Credit card £3241.44 paying off £77.00 per month.
Overdraft one £699.99
Overdraft two £383.07
Overdraft three £500.00
Owing to my nan £3000.00

I would really like some advise as to how to sort out my finances. My maternity pay is going to expire in July and I dont know what I am going to do!!

Please help me, I feel totally stressed out and feel guilty for anjoying my maternity leave...

Elzie x

lynzpower

Hello & welcome!!

The first thing that strikes me about this is all this life insurance!? Why? Am I missing something here? You are spending 353 odd a month on this!?!? Why?

Lynz
x

raffe

why do you have 7 life insurance policies

lynzpower you beat me to it

elzie

Its all down to me being totally naive when we took out out mortgage and agreeing to whatever the bank told us we needed...
Currently got an IFA looking at it all for me as she agrees we are totallty over insured. I feel ill just thinking about how much money i have wasted on this.

**purpleprincess**

Is that right that you have got 8 life insurances?

You could cut down on your food bill, take a look on the Old Style board, loads of ways to cut your shopping down. I spend about £20 a week for 2 of us on food, toiletries, cleaning stuff etc etc.

You could cut your Sky down, or give it up? I know some people call them threatening to leave and they give you a few months half price or something like that.

Others will be along soon to give more advice, good luck xx

lynzpower

Two things

are you paying your financial adviser to sort tihs out? If so, stop.

Were you "missold" any of these policies? If you were it might be time to wreak revenge.

When did you get your mortgage?

**purpleprincess**

Oooh, cross posted!!

Sea78

hi,

Whatever happens don't feel guilty!! I have just (well 9 months ago!!) had my second child and have returned to work now. If I had come back sooner it woul dhave helped the finances but I do not regret a moment of it and would do it again. Ds will never be that age again...

However, I do wish i'd found this site at the start of my mat leave!!!

With regards to your SOA:
Income:Monthly
OH £1270
You £700 (for now)
£200.10 CB & WFTC
Total incoming: 2170.10

Outgoings:
should car insurence be on there twice?
How much are you paying your nan back?
What are the APRs on your other cards & overdrafts?

I know someone with more knowledge will be on in a minute, but you've taken that first step so well done!

Sea xxx

elzie

Thanks all for the sugestions already!
Ive already cut down my sky from 42.50 to 21.00 a month as we dont go out so this is our own realy indulgence... I have been looking at the oldies boards but how do you get by on just £20 a week purple princess?

No this financial advisor is doing this for no charge- she works through a local estate agent and we used her when we moved.

We got our original mortgage back in 2001 and the payments were for 8.27 10.02 and 24.60. When we moved in 2004 the bank told us we needed to top up all these policies to cover us for the bigger mortgage but because of changes in cover we should keep the old policies and take out new ones for the additional borrowing...hence paying about 300 a month in insurance.

Its terrible....

lynzpower

Ok Im looking again

N Union Accident insurance 2.98 ( whats this for )
Water 42.00
gas 40.00
Tv licence 10.99
Electric 30.00
Mortgage Repayment protection 35.66 ( is this PPI?, do you need it?)
Bt (quarterly) 13.50
Life insurance 10.02(!!)
Life insurance 18.77(!!)
Life Insurance 14.45 (!)
Life Insurance 20.27 (!)
Life insurance 24.60(!!)
Life Insurance 8.27 (!!)
Life Insurance 115.57 (!!)
CIS Child savings 10.00 ( can you afford to be saving at the mo?)
Fortis car Insurance 17.61
Sky 21.00 ( yep, dump)
Remortgage 244.24 ( whats this? a second mortgage? Whats the APR, how much, how long to run? )
Mortage 668.61
02 Mobile 35.00 (now cut down to £8 from June) :T
Fortis Car Insurance 30.71
House Insurance Building and Contents 23.47
American Life Insurance 5.95 (!!)
carphone warehouse phone and broadband14.99
Council tax 115.00
Food approx £240.00 ( too high)
Petrol £80.00

Do you really NEED two cars? You havent budgeted for repairs or anything, MOTs etc?

Avogirly

Hello,
Have you tried balance transfering your CC's onto one's with 0%? It will stop you paying interest on those.

Well done for admitting your problem, stick around here and help will be along!

Avo
xXx