Light bulb moment, and it ain't gonna be pretty......

Poosmate

Just had another thought.

When dealing with budgeting and debt never include any bonuses/commissions in your SOA workings out. Always use your basic salary, that's the figure you know you have anything over and above is a bonus.

Also, this is going to sound really harsh but........

I understand you wanting to retain some of your savings but hanging on to it for the next two months because you believe your basic salary will not be enough to keep you in the manor to which you have become accustomed is somewhat alarming.

If you are really serious about sorting this mess out, you really do need to get a grip of yourself and know how much you are paying to whom and for what. It really is half the battle of getting out of it. The other half is knowing how you got into the mess (we've all done it - that's why we're here). You have acknowledged that you continued your salaried lifestyle whilst on welfare state wages.

What I am trying to say is that by stating that you need to keep your savings because your salary will be short for the first 2 months, you are still aiming to live beyond your (actual) means. Until you realise your basic salary is your means and commissions are bonuses, I fear for your financial future.

Hope that helps

Poo

Faye449

Poosmate wrote: »

Hi Faye and welcome to DFW.

You seem to be in a real precarious position at the moment and possibly for a few more months to come. I notice your basic salary will only just cover your current outgoings without even paying your credit cards, loan and overdraft.

That being said, in less than 6 months you should be able to get on to an even keel and be able to meet your financial obligations probably even on basic salary.

Can you pay your tv license over 12 months(?) bringing the monthly cost down to £13.00?

I have a seperate current account which all of my household bills are paid from by standing order/direct debit. It's with the same bank my salary is paid into so on pay day a set amount is paid into it to cover all those bills (+ a few quid extra). It's fab because, as some bills are paid over 8 months (water rates) or 10 months (Council Tax) you can build up a small emergency fund in there from December to March. (Handy for your road tax next April!).

Also, if you enter into a Debt Management Plan with CCCS or any of the other non fee charging organisations, they may be able to get the interest and charges stopped on your credit cards but it will wreck your credit rating for quite a few years to come.

If you can sort out your regular payments now, (even if you can't make all of the payments to your creditors yet), you may be able to start restoring your credit record sooner, which will be better for you if you need to remortgage at the end of your fixed deal.

Regarding your car, it does have some value, even if it's only £100 to the scrapman - phone around and get some prices and sell it!

Hope that helps a bit.

Poo

Hi Poo,

I've been wondering about the credit rating thing and trying to decide how important it is? Given that I never ever want to buy anything on credit ever again, the only thing to consider is, as you mentioned, the mortgage.

What the CCCS do about my mortgage? Or would they not get involved with it as its a secure debt?

How can I sort out my regular payments if I can't pay the minimum amounts for the next couple of months? As I mentioned I have written to them all this week but I am guessing each one is going to push to be paid more than the others and i don't know how to organise it. basically I am worried about trusting what they say as I know their main concern is getting their money back.

Faye449

Poosmate wrote: »

Just had another thought.

When dealing with budgeting and debt never include any bonuses/commissions in your SOA workings out. Always use your basic salary, that's the figure you know you have anything over and above is a bonus.

Also, this is going to sound really harsh but........

I understand you wanting to retain some of your savings but hanging on to it for the next two months because you believe your basic salary will not be enough to keep you in the manor to which you have become accustomed is somewhat alarming.

If you are really serious about sorting this mess out, you really do need to get a grip of yourself and know how much you are paying to whom and for what. It really is half the battle of getting out of it. The other half is knowing how you got into the mess (we've all done it - that's why we're here). You have acknowledged that you continued your salaried lifestyle whilst on welfare state wages.

What I am trying to say is that by stating that you need to keep your savings because your salary will be short for the first 2 months, you are still aiming to live beyond your (actual) means. Until you realise your basic salary is your means and commissions are bonuses, I fear for your financial future.

Hope that helps

Poo

Poo, its not about keeping me in the manner to which I am accustomed or living beyond my means wrt to buying myself things, I got into this mess trying to keep afloat with bills and debts, I'm currently a hermit with no life lol what I am worried about is meeting things like the gas and elec that I have already been in arrears with and had disconnection notices for. My councill tax is going to kick in again soon and I;ve been in arrears with that before so I need to make sure it gets paid. I'm going to have to give the CC compnaies something but I don;t know how much yet so I need money for that and also I am going to have to eat something!

Faye449

hettiecarro wrote: »

Hi Faye. Just been reading your thread.

Can't add much to what has already been said except that you say the value of your home is £275k. with an outstanding mortgage of £100k +.

As you live alone, is it not possible to sell and buy somewhere cheaper?

Just a thought - (and yes I do realise that is not an easy thing to do).

Good luck

Hi Hettie,

Thanks for reading my rant/flap and taking the time to reply.

I have thought about that but (this is going to sound wrong however I say it and I'm sure I'll get flamed for it but........) the area I live in is quite expensive. here 275k IS cheap. My house is a little 2 up 2 down in a state of disrepair and unless I move away from my friends, family and job (job being the most imortant thinng here!) I couldn't get much cheaper and after all the estate agents fees/hips etc etc I'd be in the same situation.

Also I think that in the time it will take to find a buyer, find somewhere else to live and it all to go through I should be in a better position to getting myself straight. If it would happen overnight or in the next month it would help but its now that I am in the most trouble. Does that make sense?

happyhaddock_2

Faye449 wrote: »

Hi Poo,

I've been wondering about the credit rating thing and trying to decide how important it is? Given that I never ever want to buy anything on credit ever again, the only thing to consider is, as you mentioned, the mortgage.

What the CCCS do about my mortgage? Or would they not get involved with it as its a secure debt?

How can I sort out my regular payments if I can't pay the minimum amounts for the next couple of months? As I mentioned I have written to them all this week but I am guessing each one is going to push to be paid more than the others and i don't know how to organise it. basically I am worried about trusting what they say as I know their main concern is getting their money back.

Hi Faye, CCCS don't get involved in your mortgage as it's a prority payment and is taken into account under your living expenses. What you have to do is open a BASIC bank account, ours is with the Co-op and get all your wages paid into that. From there you pay your priority pymts, coucil tax, insurances etc and use it for your food shopping and day to day expenses (which of course youv'e cut down on;)) and you then make ONE affordable payment to CCCS who distribute it fairly between you creditors. They do not include your loans to friends and family in this so you can make payments to them yourself. You only end up paying what YOU can afford to your creditors:)

Moneytroubles_2

Hi Faye,

Welcome to the boards, just some ideas to up your income, have you got anything to sell on ebay, or could you get a second job, or as you live on your own take in a lodger? I also read on here someone started an Ironing business in her spare time to raise some extra cash.

Also as someone else said is there anyway you could get rid of your personal care and take the dogs are local walks

Good Luck xxxxx

Faye449

Moneytroubles wrote: »

Hi Faye,

Welcome to the boards, just some ideas to up your income, have you got anything to sell on ebay, or could you get a second job, or as you live on your own take in a lodger? I also read on here someone started an Ironing business in her spare time to raise some extra cash.

Also as someone else said is there anyway you could get rid of your personal care and take the dogs are local walks

Good Luck xxxxx

Thank you moneytroubles.

This weekend I am getting ready to go on a residential training course for my new job next week but next weekend will be the weekend I turn my house upside down and start ebaying like mad! I don't have much to sell except clothes and a stereo (all of which I was given for xmas but nevermind- they wont know!) and I think a 2nd job is going to be a must. I wont be able to do anything during the week as this new job is going to take up all my time (it has the potential to be very lucrative so I NEED to spend the time building a pipeline etc etc) but a few shifts in a bar on a weekend will certainly help. A friend of mine who lives at home has been making mutterings about moving out and I did mention to her that she could move in here when I saw her last week so hopefully that will happen also.

Yes the car is definately a sticking point, although I'm not supposed to put the dogs in my company car I might be able to get away with it with seat covers etc and if I hoover it regularly. What I am trying to decide is is it worth paying out money I can't really afford to try and get it through its MOT so I can sell it for more in the long run or just scrap it?

Faye449

happyhaddock wrote: »

Hi Faye, CCCS don't get involved in your mortgage as it's a prority payment and is taken into account under your living expenses. What you have to do is open a BASIC bank account, ours is with the Co-op and get all your wages paid into that. From there you pay your priority pymts, coucil tax, insurances etc and use it for your food shopping and day to day expenses (which of course youv'e cut down on;)) and you then make ONE affordable payment to CCCS who distribute it fairly between you creditors. They do not include your loans to friends and family in this so you can make payments to them yourself. You only end up paying what YOU can afford to your creditors:)

Thanks hun, you're being VERY helpful. CCCS is sounding more and more like the way forward only thing I am worried about is my credit rating. As poosmate mentioned I will need to remortage at some stage. How long after you have paid off your debts is your credit rating a mess for?!

Moneytroubles_2

sounds like you have it all sussed Faye with bar work and potential lodger my sis had an old 'banger' and she put it on ebay as 'sold as seen' and got around £500 for it! could always try that xxx

Faye449

Moneytroubles wrote: »

sounds like you have it all sussed Faye with bar work and potential lodger my sis had an old 'banger' and she put it on ebay as 'sold as seen' and got around £500 for it! could always try that xxx

Thanks hun, I am trying to think of everything lol

I just wish these things would come to fruition a bit quicker!