I can't quite believe it's got this bad

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  • lizl
    lizl Posts: 5 Forumite
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    As far as I know a DMP does not stop interest charges so although they can be helpful it can take a long time.

    There is a leaflet tittled 'Is an IVA right for me' see if you can get that and read up on that. An IVA lasts usually 5 years and that is the end, although it does take you to be committed.

    Sorry if this has been said before.
  • lustydog
    lustydog Posts: 37 Forumite
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    joflo wrote:
    Also as you are on a water meter please look at your water consumption. As you now know what your bill should be a month you can work that out. A bigger washing machine will lower your water bill so taking that into account might work out cheaper with this in mind.

    Hi Talheedin and joflo,
    Whilst i'm always in favour of economies which not only save money, but also help the environment I dont think going on to a water meter would be a good idea in your case. My wife and myself changed to a water meter Nov 2005.
    Our annual water rates at that time were £349. We have managed to reduce that to under £200. However friends and family came to regard me as a bit of a nut using grey water to flush toilets, water the garden etc, and to measure the exact amount of water needed to make a cup of tea in the electric kettle.plus many other economies
    I think in your case with 7 in the family it would be impossible for you do it.
    Stick with a normal bill for as long as possible,but remembe not to waste water just bacause you don't have to pay for it.It gives you a warm glow when you find a way of saving, and encourages you to look at other things like electricity gas food etc. I know I'm regarded as a tight old git, but it's surprising how people adopt your little habits without mentioning it.
    Good luck!!!!!
  • lustydog
    lustydog Posts: 37 Forumite
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    Sorry joflo and talheedin, Got hold of the wrong end of the stick. I thought that with a water bill of only £26 p.m you must be on a normal bill. Not only a tight old git but a dozey one
  • afk_2
    afk_2 Posts: 1 Newbie
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    Have you tryed applied for child tax credit, it is quite easy to do on line.
    We found we were entitled to a small amount even though we didn't think we were eligble
  • deputydawg_3
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    Divorce left me whiped out and this time last year I had 40K of debts, 120K mortgage, similar income to yours, 2 kids & lots of worry. Think about what is important in life & take control NOW; downsize your house ( we use the lounge as a bedroom & dining room as family room/ convert attached garage to bedroom - just think creatively) & use the equity to get rid of the loans - you can always upsize again at a later date. If you really don't want to move, can you change the sleeping arrangements & take in a lodger/student or even temporary language students to bring in additional money. Kids don't really care where they live as long as they have happy parents - yours must be detecting a lot of stress. Sell most of your jewellery, cameras, extra TV's etc & possessions that are luxuries. Keep the dog insurance (vets are expensive) but get rid of sky asap £170 pm for petrol seems a lot - can you make savings here by car sharing? Presume you have applied for working family tax credit. Stop buying clothes unless absolutely necessary - look in charity shops for bargains. Buy cheaper food or better still make your own meals as these are cheaper & more nutritional. Take packed lunches. Be creative again with Christmas & birthday presents, especially for the toddlers - they won't know if give them second hand toys. It will be hard for a while but you will soon adapt. Good luck
  • allroundgoodguy
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    Although a newbie posting I have been reading for a while, and like many was directed from Martin's latest email, and moved to post.
    Congrats Talheedin, on looking yourself in the eye. You have been very comprehensive in your costs and outgoings which will help, and especially on being so honest to your family.

    I have done quick spreadheet to recap on what you have done so far.
    I think it willl help to re do this in light of what savings you have made so far.

    To me, you can do it, withough getting any more interest. But you msut do what's best for you.
    You should be proud of what action you ahve taken so far to sort this out.
    Total Owed debt Original Mnth Now Mnth Actioned
    LLoydsTSB 3500 480 40 . . -
    Egg CC 1000 240 20 . . -
    Cahoot Flex Ln 10400 3,600 300 . . -
    Capital One C/C 9500 3,600 300 . . -
    LloydsTSB Loan 17200 3,504 292 . . -
    NatWest Mort ..... 7,896 658 . . -
    Total 41600 19,320 1,610 . . -

    Bills
    TV/Phone/Net . 960 80 , , -B/B & Sky already?
    Gas/Elect . 1,200 100 , , -
    Water . 312 26 , , -
    Life Assurance . 216 18 , , -
    Council Tax . 1,356 113 , , -
    Dog Insurance . 180 15 , , -
    Washing Mach . 156 13 , , -
    Total . 4,380 365 , , -

    Car .
    Petrol . 2,040 170 , , -
    Car tax . 175 15 , , -
    Car servce/MOT . 800 67 , , -
    Insurance . 377 31 , , -
    Total . 3,392 283 , , -

    Other
    Childcare . 528 44 , , -
    Childrens Sav . 480 40 , , -
    House ins . 469 39 , , -
    Magazine Subs . 360 30 0 0 -cANC
    Mobile Phones . 180 15 , , -
    Food . 4,800 400 , , -
    Clothes . 720 60 , , -
    Total . 7,537 628 , -

    Savings Egg Sav . 516 43 0 0 -Saved

    (Take Home) Inc
    My Wage . 22,200 1,850 , , -
    My Wife’s Wage . 6,444 537 , , -
    Child Benefit . 2,028 169 , , -
    Wife’s CSA . 5,304 442 , , -
    Total . 35,976 2,998 , -

    Income . 35,976 2,998 , , -
    Expenditure . 34,629 2,886 , , -
    Balance . 1,347 112 , , -

    Debt 41600
  • Meredith
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    Hi Talheedin

    I wish you and your family the best - debt is so stressful and destructive.

    NEGOTIATE WITH THE WATER COMPANY
    Because water companies provide a vital service they have certain social and public health obligations towards families in hardship. I don't think they can cut off your supply just like that. Your case is especially strong because you have children in the household. Maybe you could negotatiate with them about the arrears and at least reduce the amount you are paying out. Why not give your water company a call? Citizen's Advice Bureau can also help with this one.

    If you are finding it hard to resist the temptation of spending on those cards, do you know about Debtor's Anonymous? It's modelled on Alcoholics Anonymous but is for people with a chronic debt problem. I don't know much about them but you could look at the website on http://www.debtorsanonymous.org.uk

    If anyone else has knowledge of the water issue or Debtors Anonymous please speak up!
  • Ali_UK
    Ali_UK Posts: 302 Forumite
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    Don't know if this has already been suggested or not but check out freecycle - chances are someone in your area has a functioning washing machine that you can have for nothing!
  • lovelylass_2
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    Hi Talheedin

    Can i recommend you see your local CAB centre as they are free (just like CCCS). They will work everything out for you and unlike your mortgage advisor they are impartial.

    The one thing i'm picking up is that people are saying about your food bill. When i worked for a credit card company back in 1998 the food allocation then set out by the CAB was £35 per person per week, i'm assuming this has gone up now but if its still the same and their are 7 of you in the household then its way under.

    I wish you and your family the best. My family and i are trying to sort out our financies but we did pay lots off last year before i had the baby and now i'm going back full-time so that should help.

    Stay relaxed and seek advice from CAB or CCCS early as they will really help you. Dont be beaten down by companies, they will lie to get at your money. They should freeze interest etc too!
  • Jinantonik
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    joflo wrote:
    I have the same income as yourselves and I get working tax credit. I believe up to 50ish K a year earnings you could still get the 545 basic payment which is about 40 pounds per 28 days a year. Its not a lot but its still adds towards paying off debts.
    please be really careful with Tax Credits- after months of appeals have been told that I have to repay £3,500 overpayment, despite having kept them regularly infomed of change of circumstances etc. Their reasoning? I should have known I was being overpaid, no reason - I just should have known.
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