Please Help!

lucy_w86

Poosmate wrote: »

Hi Lucy.

There are many paths to debtfreeness and we all have to find the path with best siuts our own circumstances.

Mine will take longer because I will not compromise on certain aspects of my life (only buying Nescafe coffee instead of shop's own for instance). There's a tool called "Treats" on the What's The Cost website:

http://www.whatsthecost.com/treats.aspx

This tool would probably tell me that a £4 jar of coffee will cost me £8 in the long run because I hadn't paid that £4 off my debt, but I'd rather pay an extra £4 over however many years it takes me than be miserable every day drinking awful coffee. I am ashamed to say yes I truely was so miserable when I bought some cheaper coffee! How terrible is that? That a jar of coffee can make me miserable when people in the world are starving/dying! I am so lucky to have the choice to buy my preferred coffee even if it does prolong my indebtedness.

We have to eat and we have to drink, we have to live. Just because we are in debt doesn't mean we can't as long as we accept that it will take us a bit longer to get out of debt.

I can accept it and my coffee helps me to reamin focused on paying off debts not moping round dreading my next cup of coffee! lol

You have to choose the path which is right for you. I know the overdraft is bothering you, but it does look like the cheapest credit you have and for that reason alone I would urge you to concentrate more on the credit cards.

Hope that helps.

Poo

I know I will struggle but my baby's father will be there and I have the miracle of bringing a life into this world. x

dancingfairy

Fair enough - if you don't want to have to go into a hostel if at all possible. I would probably still try and put your name down on the council waiting list anyway - just in case a house comes up and you are eligible.
I can understand wanting to try and save money up for a house deposit and few baby bits and bobs as well.
Is is possible to restructure your debts while you are still working? as you have a salary now - could you apply for any life of balance cards or anything? o.k you will still have the debt but hopefully a lower interest rate will mean you can pay more offthe debts and less in interest and also might make keeping up payments a lot easier when on benefits/smp?
Do you have a credit union around? they may be able to help out with a cheap loan if you credit rating is not brilliant.
Best of Luck
df

lucy_w86

dancingfairy wrote: »

Fair enough - if you don't want to have to go into a hostel if at all possible. I would probably still try and put your name down on the council waiting list anyway - just in case a house comes up and you are eligible.
I can understand wanting to try and save money up for a house deposit and few baby bits and bobs as well.
Is is possible to restructure your debts while you are still working? as you have a salary now - could you apply for any life of balance cards or anything? o.k you will still have the debt but hopefully a lower interest rate will mean you can pay more offthe debts and less in interest and also might make keeping up payments a lot easier when on benefits/smp?
Do you have a credit union around? they may be able to help out with a cheap loan if you credit rating is not brilliant.
Best of Luck
df

Credit rating isn't great so can't get 0% cards.

Whats a credit Union?

losethedebtlou

Helllooo! Thought I would offer my help as I was in dire need when I first came on this site and decided to pay my debts off with any spare money I had (which wasnt much!) I decided to pay mine off in the size order starting with the smallest first (£1000) and am now almost half way to paying it off. You could pay your debts down in size order or pay the debt with the highest interest first as this will you save you even more.

With regards the baby clothes, I would say use ebay and the special amazon tool on here that allows you to find deals such as 90% (!) off :j Also sign up for your local freecycle group as there are always people giving away cots, clothes etc that are barely used for free, you can find your local group online.

Is there any way you can sell unwanted items online? You can sell on ebay and amazon. I have made almost £200 this month alone by selling on ebay and all the money goes towards my debts, you have to be disciplined. Maybe with your spare money you could put half towards the smallest debt and then the other half towards your baby needsand your house fund (if you cant find things on freecycle!)
You could also ask one of your friends to throw you a baby shower, lots of useful baby pressies, saves you buying them!

I have written a few things on the SOA, this is only my opinion but I hope it helps. I only have £100 a month to pay off my debts so I pay half into my pension and half off my smallest debt. I dont plan on buying a house yet and as my debts will be gone by 2011 I can put all my money that I pay out on debts into my house fund after they have gone, I am concentrating on my pension payment for now and getting rid of my debt!

I cant say much for your housing situation as I am in the forces and live in barracks so dont know much about council housing etc, sorry!




Monthly Income Details
Monthly income after tax................ 1473
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1473

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45 (you can lower this down)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100 (i spend 80 a month for two, is this for just yourself? go down a brand and meal plan to avoid compulsory buys)
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 150
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 35 (if this is contacts i get mine from daysoft for 10 pound a month, have a look at the website, they are brilliant)
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 (reduce, you cant afford it)
Haircuts................................ 0
Entertainment........................... 50 (again reduce)
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 610


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
credit card....................2300......65........22
credit card....................3300......75........22
overdraft......................1450......0........ .0
Total unsecured debts..........7050......140.......-


Monthly Budget Summary
Total monthly income.................... 1,473
Expenses (including HP & secured debts). 610
Available for debt repayments........... 863
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 723 (i would use half this to pay of the lowest credit card, and half towards the house deposit, that way you are still saving for your house but reducing your debt aswell, you could clear your cards in a couple of years this way and as the overdraft is 0% you could clear this when youve taken care of the cards)

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,050
Net Assets.............................. -7,050
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bluebag

Hi Lucy, congratulations on the baby due. I didn't want to read and run, you sound like the panic in your first post is receding a bit now. Small babies need very little, and because they don't wear anything out before they grow out of it you will be amazed at what is available second hand.

Don't worry, there are lots of agencies to help. Shelter is very good and local housing associations often give single mothers priority. Even when your wages go down you will be entitled to benefits to help bring your income up to the minimum needed to live on.
Keep coming on here for any support you need. Many of us have raised kids on a low income.
Take it steady!
bb