Got to do something about it now ...

rescuethemall

My fiancé and I had a serous chat last night as we know we cannot live like we have done for the last couple of years … really struggling.

Our situation is changing as my fiancée’s job is safe, but is going to be run by a new owner (not his parents no more), and we have therefore lost the ability to ask for ‘extra money’ every now and again (as they were happy to do this for him).

So, we’ve decided to go down to our local CAB tomorrow morning and ask their advice on what would be the best thing for me to do – I’m in a serious amount of debt (around the 48k mark) and want to know the best options as I cant live like this no more.

Below is my Statement of Affairs which I know you guys like to see so you can give some helpful advice.

I know I’ve been a pratt getting myself into this level of debt but now with me approaching 30 I want to sort it out.

Monthly Incoming:

My salary - £1,135.00

My Monthly Outgoings:

Barclays Bank loan - £279 (£13,023 to pay off)
Halifax loan – £195 (£9,158 to pay off)
Barclaycard - £252 (£10,100 limit – usually hitting it)
Tescos c.card - £205 (£6,800 limit – usually hitting it)
John Lewis store card - £295 (£6k limit – usually hitting it)
VW HP - £135 (due to end on 1 November 2006 – though have ‘bubble’ of £3,700 to pay).
Council Tax - £100
House Insurance - £13
Gas - £25
Electric - £45
Pet Insurance - £28 (3 cats)
Mobile - £25
Car Insurance - £23
Dental Plan - £21
Season ticket - £48
Sofa on HP - £50 (Was £1,800 – have paid for 5 months)
Fuel - £100
Total = £1839
Overdrafts - £1000 on current act and £50 on bills account

My fiancé pays for the other items like rent, sky, tv licence, and his loans and c.cards and has been giving me the money to cover the gap between what I earn and what I pay out – though this has been though extra money being put into his account by his parents, which will stop when they move on – which is why we know we have to sort things out now.

I would appreciate any comments, though I’m sure you all understand that it is hard to come to terms with and any ‘hard hitting’ comments probably would tip me over the edge at the moment )

duncans-mum_2

Just wanted to say Hi, and welcome to MSE.
Have yours and you OH debts been spent individually (eg, me and my OH have different o/s credit cards etc, but the purchases have mainly been for joint benefit so regardeless of who's name they are in we class them as "our debt") CIf this is the case,can you lump everything together and work out a joint SOA for you both to work to? There might be more things that he pays for example sky, where cutbacks could be made.

All the best.

scholt

John Lewis store card - £295 (£6k limit – usually hitting it)
Eeek - think of the interest on this - cut it up immediately!

Dental Plan - £21
Has this proved useful or would you be better paying 'as and when'?

Season ticket - £48
Football or train? If its the former it should go. If its the latter do you need a car also?

None of these comments are meant as abrupt. Hope you find it usefull. :grouphug:

C_Ronaldo

would it be cheaper if you got rid of sky and had freeview instead

CLAPTON

if your OH is willing to help you and is committed to helping sorting this out then it would be much better to present a joint SoA.

also it would be helpful if you could separate the debts and debt repayments from the general spending and provide subtotal for both: so edit the post to add after the line 'VW HP etc ' you add a line 'total debt payment, total debt'

rescuethemall

Ok, i've read the comments and hope that i've done what was suggested (apologies if not).

Re the comments about Sky TV - this is somethign we're looking at anyway - the very least have the basic package or even freeview as someone suggested.

The DenPlan thing - we were kinda 'forced' into this as it was either sign up or find another dentist - and I dont want to be without a dentist. The charges I've seen which are for the private rates of check ups and work are astronomical, which is why we signed up to it. We at least get a discount off private work if any is needed.

The Season ticket - yes it is a football ticket, though I know my dad would pay for it for me if he knew about the situation.

Monthly Incomings:

My salary - £1,135.00
Partners salary - £1,111.11 (but has been used to a monthly salary of around £1300 due to the 'top ups' by his parents).

Total - 2246.11

My Monthly Outgoings:

Barclays Bank loan
(Total debt payment £279, Total debt £13,023)

Halifax loan
(Total debt payment £195, Total debt £9,158)

Barclaycard
(Total debt payment £252, Total debt £10,100)

Tescos c.card - £205 (£6,800 limit – usually hitting it)
(Total debt payment £205, Total debt £6,800)

John Lewis store card
(Total debt payment £295, Total debt £6,000)

VW HP -
(Total debt payment £135, Total debt £4,423 - bubble of £3,700 to pay)

Sofa
(Total debt payment £50, Total debt around £1550)

Council Tax - £100
House Insurance - £13
Gas - £25
Electric - £45
Pet Insurance - £28 (3 cats)
Mobile - £25
Car Insurance - £23
Dental Plan - £21
Season ticket - £48
Fuel - £100
Total = £1839
Overdrafts - £1000 on current act and £50 on bills account

Partners monthly outgoings

Rent - £515
Sky - £45
Tv licence - £11
Loans - £200
C.Cards - £100
Fuel - £100
Car insurance - £30
Telephone - £75 (for 3 months)

Is above what you meant?

lynzpower

Ok, thanks for that ive had a look.

Basically, you as a couple are overspending by 568.89 per month. At the moment, however there are some cutbacks to be made.

My salary - £1,135.00
Partners salary - £1,111.11 (but has been used to a monthly salary of around £1300 due to the 'top ups' by his parents).

Total - 2246.11

My Monthly Outgoings:

Barclays Bank loan
(Total debt payment £279, Total debt £13,023)

Halifax loan
(Total debt payment £195, Total debt £9,158)

Barclaycard
(Total debt payment £252, Total debt £10,100)

Tescos c.card - £205 (£6,800 limit – usually hitting it)
(Total debt payment £205, Total debt £6,800)

John Lewis store card
(Total debt payment £295, Total debt £6,000)

VW HP -
(Total debt payment £135, Total debt £4,423 - bubble of £3,700 to pay)

All these cards need to be cut up.
Sofa
(Total debt payment £50, Total debt around £1550)

What are the APRs on these debts? Is there any chance of moving them to 0% or low life of balance cards?

Council Tax - £100
House Insurance - £13
Gas - £25
Electric - £45 ( tihs is high. check out https://www.saveenergy.co.uk- everything off at the wall, lights off, everything off thats not being used)
Pet Insurance - £28 (3 cats)
Mobile - £25 ( sorry you cant afford this)
Car Insurance - £23 ( do you NEED this car)
Dental Plan - £21 ( do you need this?)
Season ticket - £48 ( whats this for? transport? or something else?)
Fuel - £100 ( way too high shre journeys or walk to places wherever you can)
Total = £1839
Overdrafts - £1000 on current act and £50 on bills account

Partners monthly outgoings

Rent - £515
Sky - £45 ( dump this you cant afford it)
Tv licence - £11
Loans - £200 ( aprs?)
C.Cards - £100 ( aprs? limits?)
Fuel - £100 ( again??? Why?? )
Car insurance - £30 ( 2 cars??)
Telephone - £75 (for 3 months) still to high, get line rental only and use a predialler, use dial up instead of broadband etc)

You havent been accounting for food, which Im guessing you just put on your credit cards? Time for this to stop Im afraid. Chop the cards up but make a note of the numbers, as you will need these for online banking.

scholt

It is clearer yes, but it also shows that you are spending £191 between you more than you are bringing in

So now we have to think about

a) decreasing spending
b) increasing income.

Possibilities-
a) Losing - Sky, Season Ticket, Denplan. Moving cards onto low L.O.B or 0% interest. Cutting up store cards.

b) Part time job, Avon, Virgin etc. Selling on ebay and Amazon.

Chin up - you have taken the first big step in the right direction x

scholt

also unless I'm mistaken you haven't factored groceries into your SOA

scholt

lynzpower wrote:

Basically, you as a couple are overspending by 568.89 per month. At the moment, however there are some cutbacks to be made.

one of us can't add! probably me:rotfl:

bonnie_2

also water, car tax, pressies.