Struggling to Clear Debt - Any Advise please..!

angelontour

Is there anyone out there that can help me with advise on how to get rid of my debt without getting into more debt? I got married 2 years ago and I never told my husband that i had loan amount £12,000 I maxed out my credit card of £1000 and overdraft of £1600 which by the time i get paid i'm already into my overdraft. I try to get by each month without telling my husband what my debt total is. I've also recieved 2 solicitor's letter from 2 different creditors demnding payment. :mad:
I've managed to sit down and collect all my papers and calculated all my debts which comes up to around £16,000. My monthly repayments for my Bank Loan is £281.91, My Credit Card Payment is £80 and £50 each to the other 2 creditors. I'm begining to Panick now because i can feel that My:( husband is begining to suspect my secret. My Credict rating is 281 which is the lowest. Is there any advise that anyone can share with me? Any advise will be much appreciated.

YorkshireBorn_2

If I was you I'd tell him get it all out in the open so he can support you. If he thinks your hiding something all sorts could be going through his head.

Best of luck YB

planning_ahead_2

Hi

Post up an SOA so that people can see your incoming and outgoing expenses and hopefully then you will get some good advice on how to deal with this.

Well done for being brave enough to add it all up and post.

Once you've done the SOA - you might want to think about talking to your husband about it.....the relief of sharing the load and no longer having the guilt of hidden debt will be amazing. You husband may be upset at first, but if he loves you, you can work through this together.

angelontour

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1025
Partners monthly income after tax....... 2250
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3275
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 536.9
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 50
Gas..................................... 100
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 50
Mobile phone............................ 30
TV Licence.............................. 12.12
Satellite/Cable TV...................... 42.78
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 550
Road tax................................ 0
Car Insurance........................... 84.06
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 35.91
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Spouse's Car Insurance.................. 106.99
Total monthly expenses.................. 1808.76

Assets
Cash.................................... 0
House value (Gross)..................... 10000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 200
Total Assets............................ 17200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 11708....(289)......19<
Spouse's Bank Loan.............1618.....(247.9)....18.2
Total secured & HP debts...... 13326.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
LLoyds Master Card.............9893.06...80........15.9
Vodafone Contract..............300.......0.........0
Education Fee..................90........50........0
Overdraft 2nd acct.............240.......0.........0
Overdraft 1st acct.............1645.6....100.......0
Total unsecured debts..........12168.66..230.......-

Monthly Budget Summary
Total monthly income.................... 3,275
Expenses (including HP & secured debts). 1,808.76
Available for debt repayments........... 1,466.24
Monthly UNsecured debt repayments....... 230
Amount left after debt repayments....... 1,236.24
Personal Balance Sheet Summary
Total assets (things you own)........... 17,200
Total HP & Secured debt................. -13,326
Total Unsecured debt.................... -12,168.66
Net Assets.............................. -8,294.66

As you can see we dont pay rent as it gets deducted before it reaches the Bank. And my husband travels up to 70 miles everyday to work thats why his fuel money is high. We rarely have any saving let end of the month as most of our income i gone byt mid monh I look foward to any constructive advise because I keep telling myself it's now or Never - i must sort this out. Thank you for taking the time to help me out. The Burden feels abit light now Just talking about it.

planning_ahead_2

angelontour wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1025
Partners monthly income after tax....... 2250
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3275
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 536.9
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0 is this taken direct from salary as well
Electricity............................. 50
Gas..................................... 100 seems very high (try switching to a dual fuel offer)
Oil..................................... 0
Water rates............................. 0 is this taken direct from salary as well
Telephone (land line)................... 50 this is very high - can you change it to a phone/satellite/internet package
Mobile phone............................ 30 this is high - if in contract how long til it is due for renewal
TV Licence.............................. 12.12
Satellite/Cable TV...................... 42.78 see note against Telephone
Internet Services....................... 10 same again can u get phone/internet/cable package
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 550
Road tax................................ 0 is your car exempt from tax
Car Insurance........................... 84.06 seems very high £1,008.72 per year
Car maintenance (including MOT)......... 0 really should allow something here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 35.91 quite high - I get Blgs&Conts for less
Life assurance ......................... 0 do either of you have any life insurance with work
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 do you NEVER buy presents
Haircuts................................ 0 do you really not pay for haircuts at all
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Spouse's Car Insurance.................. 106.99 seems very high £1,283.88 per year
Total monthly expenses.................. 1808.76

Assets
Cash.................................... 0
House value (Gross)..................... 10000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 200
Total Assets............................ 17200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 11708....(289)......19<
Spouse's Bank Loan.............1618.....(247.9)....18.2
Total secured & HP debts...... 13326.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
LLoyds Master Card.............9893.06...80........15.9
Vodafone Contract..............300.......0.........0
Education Fee..................90........50........0
Overdraft 2nd acct.............240.......0.........0
Overdraft 1st acct.............1645.6....100.......0
Total unsecured debts..........12168.66..230.......-

Monthly Budget Summary
Total monthly income.................... 3,275
Expenses (including HP & secured debts). 1,808.76
Available for debt repayments........... 1,466.24
Monthly UNsecured debt repayments....... 230
Amount left after debt repayments....... 1,236.24 where does this go each month
Personal Balance Sheet Summary
Total assets (things you own)........... 17,200
Total HP & Secured debt................. -13,326
Total Unsecured debt.................... -12,168.66
Net Assets.............................. -8,294.66

As you can see we dont pay rent as it gets deducted before it reaches the Bank. And my husband travels up to 70 miles everyday to work thats why his fuel money is high. We rarely have any saving let end of the month as most of our income i gone byt mid monh I look foward to any constructive advise because I keep telling myself it's now or Never - i must sort this out. Thank you for taking the time to help me out. The Burden feels abit light now Just talking about it.

Hi

I've put a few notes alongside some items - and I am sure others will be along to comment and advise.

If you start a spending diary to find out what you are doing with the 'left over' £1,236.24 each month that will go a long way to helping you manage your money and clear your debts.

dancingfairy

Your gas and electric look quite high - have you looked at switching to see if you can save - either by switching to different company or to a different tariff. Also are you being energy conscious - ie turning things off when not in use, using low energy light bulbs, reducing use of a tumble drier if you have one, making sure your house is well insulated etc etc.
Best of Luck
df

gonzo127

angelontour wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2 do you actually NEED 2 cars?
Monthly Income Details
Monthly income after tax................ 1025
Partners monthly income after tax....... 2250
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3275
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 536.9
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 50
Gas..................................... 100 - gas and electric is high, i have a 4 bed semi with 2 adults 2 teenagers and a baby, wife stays at home all day yet we only pay £101 a month for gas and elec, find out your annaul usage in kwh and do a comparison, use quidco or topcashback when you switch
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 50 - look at your bills and find out who you call. is it mobiles, daytime, evening, internations etc try and find a inclusive bundle to cut this down as this is high
Mobile phone............................ 30
TV Licence.............................. 12.12
Satellite/Cable TV...................... 42.78
Internet Services....................... 10
Groceries etc. ......................... 200 - not bad could be cut a little bit with the drop a brand challenge meal planning and batch cooking
Clothing................................ 0
Petrol/diesel........................... 550
Road tax................................ 0
Car Insurance........................... 84.06 - why is this so high? how old are you and what do you drive? currently paying nearly £200 a month on car insurance for you and your partner ie £2400 a year! i currently pay ~£300 a year for my mondeo
Car maintenance (including MOT)......... 0 - what no MOT service etc? you need something budgetted here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 35.91
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - you need to budget something here as well
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Spouse's Car Insurance.................. 106.99 - included in the comments above
Total monthly expenses.................. 1808.76

Assets
Cash.................................... 0
House value (Gross)..................... 10000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 200
Total Assets............................ 17200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 11708....(289)......19<
Spouse's Bank Loan.............1618.....(247.9)....18.2
Total secured & HP debts...... 13326.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
LLoyds Master Card.............9893.06...80........15.9
Vodafone Contract..............300.......0.........0
Education Fee..................90........50........0
Overdraft 2nd acct.............240.......0.........0
Overdraft 1st acct.............1645.6....100.......0
Total unsecured debts..........12168.66..230.......-

Monthly Budget Summary
Total monthly income.................... 3,275
Expenses (including HP & secured debts). 1,808.76
Available for debt repayments........... 1,466.24
Monthly UNsecured debt repayments....... 230
Amount left after debt repayments....... 1,236.24
Personal Balance Sheet Summary
Total assets (things you own)........... 17,200
Total HP & Secured debt................. -13,326
Total Unsecured debt.................... -12,168.66
Net Assets.............................. -8,294.66

As you can see we dont pay rent as it gets deducted before it reaches the Bank. And my husband travels up to 70 miles everyday to work thats why his fuel money is high. We rarely have any saving let end of the month as most of our income i gone byt mid monh I look foward to any constructive advise because I keep telling myself it's now or Never - i must sort this out. Thank you for taking the time to help me out. The Burden feels abit light now Just talking about it.

right well i have made a few comments however my main concern for you is that according to your SOA you should have £1236 left over each month yet you say all your money is gone by mid month, over £1000 a month 'lost' with nothing to show for it is a hell of a lot of money to loose!

you NEED to start a spending diary, where you write down EVERYTHING you (and your partner) spend in a month to try and work out where this money goes

as your current debt level and your calculated surplus you could have all your debt paid of within one year!!!

angelontour

Yes the Council Tax is Taxed is also taken from Salaray
Gas & Electricity Bills are paid quartely so that was my estimation as we paid aound £200-£300 per bill statement we have tried to set up direct debit payment but nothng has been done. We cannot switch the Suppliers because it is all part of the accomodation package
we both need cars to travel to work in different locations
Our mobile phones are boh PAYG and we each pay £15 for the frredom pack
Telephone/internet & Television are all part of the Sky packge and we have the movies sports espn apart from the normal channels and i've realised that this is all somehting we can live without and our phone bills is quiet high because we normally call overseas direct like America most of the time to speak to families.I I am a new driver and my husband has 3 points on his licence we both drive2 hand cars i think it's time to sit down and search for more cheaper insurance because this is really high when you put it that way ie how much we end up paying in a year. OMG!!! i cant belieave how careless we've been.
We have no budget at all and thats why we end up spedning money carelessley.

This has really opened my eyes, noting points from you about what other options i have in oder to start saving. we both have no savings for presents or emergencies funds like car maintenance or if anything else. we normally depend on our monthly wages for project like that.

Poosmate

Hello and welcome.

At least you've made a start. Have you told your hubby yet?

It's great that you appear to have had a lightbulb moment but very often it's a time when you realise you have to treat the symptom (your debt). In order to be able to take the right course of treatment you really need to look at the cause of the debt.

Is all of your debt really completely down to you or is part of it because you have subconciously been matching your husbands spending (bearing in mind he's on twice the money you are)? Is your debt borne out of buying the niceties for your home that maybe your husband doesn't realise cost as much as they do? Or is it that you have to have that pair of shoes and matching handbag or the clothes you wear? Don't answer these questions on here - just think about them and be honest with yourself.

No-one on here judges the why's and wherefor's of peoples debts - I'd say 100% of us in the same boat (HMS Debt) have at some point bought something frivilous and unnecessary. It doesn't make us bad people, we're human and we make mistakes.

The thing is, half the battle is knowing how you got to where you are now and being honest with yourself, knowing the cause. The other half is treating the symptom.

Best of luck to you

Poo

angelontour

Hi Thanks for the advices - I've managed to tell my husband about it and he was really supportive and upset that i didnt tell him in the first place. we've both sat down and discussed our finance and we've realised that we both need to work together to pull this off. So fingers crossed, although i'm not letting him pay off my debt because it's only fair i do it myself but he is willing to help out in other arears ie other expenses and bills while i concentrate on my Big bank loan:T

I've discussed my overdraft with the bank and i'm not paying back £200 each month to pay it off so I'll be clear of any over draft by aug/sep :j

huskypup

Angelontour

Are you a military family??

Check with Sky they do a phone/Sky and internet package that includes Free international calls to America - we had it when my HB was detached over their, then changed back to free uk evening and weekend calls when he got back.