Big Debts Help!

chambta

I think you can sort your problems relatively easily with a little belt tightening. Use Ebay to sell things you don't need. Use Quidco etc for cashback on things you will buy anyway and consider doing surveys online/mystery shopping to boost earnings.

I work in a bank and my advice is to listen to what they suggest but walk away and do your own research.

shadydaz

Mansun wrote: »

Regarding groceries...I know...but need someone to have a word with the wife. Because of my job and its time demands, she is responsible for all of the grocery shopping and most times, she doesn't hold back... How much should we be spending on the family (including nappies, etc...) per month? Or should I say, what is the least we can spend to cope in other peoples opinions?

Welcome to MSE mansun. We are here to help. Regarding your shopping bill...
I am married with four kids, we currently spend around £400 a month. (two kids in nappies) We are undertaking a "shopping challenge" this month to try and get through by spending as little as possible. I reckon we shouldn't be much over £250, whilst stil eating fresh fruit and veg and a balanced diet for the wee-uns.
It is possible to cut back when nessecary but your wife needs to understand why it needs to happen.

savingcaz

Hi

We are currently trying (succeeded last month) to do a £150 budget for groceries. Thats for 2 adults and 1 baby (who is 1 next week) we eat a healthy balanced diet too. It is possibly just a bit more shopping round.

Hope you get it sorted
Carolyn

shadydaz

Mansun wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2450
Partners monthly income after tax....... 200
Benefits................................ 173
Other income............................ 0
Total monthly income.................... 2823
Monthly Expense Details
Mortgage................................ 800
Secured/HP loan repayments.............. 140
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 70
Gas..................................... 50 shop around/ check your not paying over due to estimated billing. Switches off etc to cut back usage
Oil..................................... 0
Water rates............................. 47 METER?
Telephone (land line)................... 19
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 35 FREEveiw for a while
Internet Services....................... 5
Groceries etc. ......................... 500 half this easy
Clothing................................ 50
Petrol/diesel........................... 200 really? Drive at 55mph.
Road tax................................ 18
Car Insurance........................... 31
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 9
Contents insurance...................... 4
Life assurance ......................... 50
Other insurance......................... 100 Please reveiw and cut down as already stated
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Child Trust Fund........................ 50 this can wait till things get better.
Total monthly expenses.................. 2400

Assets
Cash.................................... 700
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 165700

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 124000...(800)......5.5
Secured Debt.................. 21500....(140)......5.5
Total secured & HP debts...... 145500....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
N Rock.........................1400......256.......11.9 try to clear this one first, the monthly amount will devastate the other debts once freed up
Tesco CC.......................470.......11........NaN
Next...........................520.......30........NaN
Black Horse....................2000......75........NaN
Barclaycard 2..................3465......80........18.9
Santander CC...................5840......135.......0
Virgin CC......................1340......30........NaN
M&S CC.........................1380......35........3.9
Barclaycard 1..................390.......10........0
Total unsecured debts..........16805.....662.......-

Monthly Budget Summary
Total monthly income.................... 2,823
Expenses (including HP & secured debts). 2,400
Available for debt repayments........... 423
Monthly UNsecured debt repayments....... 662
Amount short for making debt repayments. -239
Personal Balance Sheet Summary
Total assets (things you own)........... 165,700
Total HP & Secured debt................. -145,500
Total Unsecured debt.................... -16,805
Net Assets.............................. 3,395
Created using the SOA calculator.
Reproduced on Moneysavingexpert with permission, using IE browser.

I hope this helps.

fabforty

Mansun wrote: »

Thanks. Am planning to stop payments to the CTF next month.

The Life and Other Insurances stuff is all with my bank to cover mine and wife's life as well as critical illness. If I stop paying for some of these, I will obviously lose all benefits and means that I will have been paying for these things in vein. Will speak to the bank next week.

Regarding groceries...I know...but need someone to have a word with the wife. Because of my job and its time demands, she is responsible for all of the grocery shopping and most times, she doesn't hold back... How much should we be spending on the family (including nappies, etc...) per month? Or should I say, what is the least we can spend to cope in other peoples opinions?

Why not go with her the next time that you go shopping? You only need to do it once, and you can discuss options and choices while you shop. You both have joint responsibility for the family finances, and this includes deciding how much you spend on shopping. It's difficult to say how much you should be spending, although £500 is very high. Try writing (together) a meal plan for the week and then buying only those ingredients that you need. The downshift challenge - i.e. dropping down to the next price band - is also really effective. E.g Sainsburys own brand coffee costs 1/3 price of Nescafe and tastes the same.

As for Christmas, your children are at an age where they won't be expecting (won't even know about) expensive toys presents. If you can't afford to host a big family Christmas (how many people are you expecting?), then just tell them. Any family worth a fig, will understand. You could ask people to bring a dish or contribute in some other way or alternatively you could have a quiet family christmas with you, your wife and the children. You really can have a good christmas without spending ridiculous sums of money - checkout some of the other money saving boards for tips.

I understand your concern about feeling that you are not providing for your wife and children. But by cutting back now and reducing your outgoings, you are providing for them in the best way that you can by giving them a stress free, debt free future (pop over to the marriage and relationships board for sobering tales of how it can go wrong).

You have a good income and with a few tweaks and changes to your spending habits, I'm sure you'll be okay.

Trollfever

Plus we are always the hosts and end up spending a lot of money on Christmas Dinner and other such stuff.

Some posters on the debt/bankruptcy boards have cancelled Christmas as they are unable to afford it.

property.advert

People talk about the light bulb moment and it hasn't happened for the OP. He is still in denial although the figures show he is getting further and further into debt each month.

You can't cut all insurances but you can cut some and yes, it will probably cost you more to restart them later if you can once again afford them but there is no other option.

The OP's wife also needs her LBM when she wakes up to the fact that the siht has hit the fan and if they don't do something drastic now, then the house is at risk.

Child Trust Fund........................ 50 Entertainment........................... 50 Presents (birthday, christmas etc)...... 20 Life assurance ......................... 50 Other insurance......................... 100 Petrol/diesel........................... 200 Groceries etc. ......................... 500 Clothing................................ 50 Electricity............................. 70 Gas..................................... 50
The above areas need looking at and I guess you could trim £500 a month from that without too much difficulty.

That does not start to repay the balances though, merely pay back the minimum repayments and provide some slush money for repayments or an emergency. The OP's wife needs to get a job bringing in much more or they are going to have to look to some other means of reducing the CC balances as minimum repayments will take forever.

bluebag

There is a point where you can take drastic action and turn things around, please think about this because sooner than you think the point arrives when the red letters begin to arrive and the harassing phone calls, the bailiffs and the court orders.
I speak from personal experience, it's easy to think it won't happen. It's an easy slide into debt and a long hard dig out.
Please listen to the advice on here and change it while you can.

SammyD_2

There is no reason to cancel your insurances altogether - with dependants it would be foolish. But you seem to be paying huge amounts - get other quotes and see if you can get it cheaper.

Child trust fund needs to go now. Groceries - others have made the point that this is far too much over a 100 a week! What are you buying with that lot?

You can do this, but need to make some drastic changes. And get your wife's buy in.

dexter_fan

I would agree with everything that has been posted. OP's wife does not seem to have had her LBM yet. You both need to be working together on this, otherwise you will still be in debt and you will also be battling each other!

With some unity and strong focus, these debts ar definately doable