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

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  • MrsTinks
    MrsTinks Posts: 15,241 Forumite
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    Sorry I gave up reading all teh replies after a few pages :S so if this has been said then my appologies :)
    Keep the dog insurance but shop around and use quidco for cashback ;)
    Think long and hard about putting your debt onto a secured loan... to my disgust I recently found out my OH had put his on to a secured loan and I currently can't find a hole in it to get out or even get out of his payment protection plan as it's over 3-4 months since he did it... And why didn't he tell me? Cos he knew I'd tell him not to do it... (and WHY did he then go ahead with it then ARGH!) Now his debt will end up costing us LOTS more because we can't get out without paying huge penalties and the APR is... *gulp* 10.7% (yes I could cry!)
    Unsecured debt means they CAN'T take your house. Secured debt - guess what :) it means it's secured against your home :)
    All the little savings on here will add up and make a difference - but you must get the children on board too. They need to understand the implications that debt has - afterall do you want them to be in the same situation when they grow up and have their own finances to deal with?

    Hang in there, things will get better :)
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's! :)

    My DFW Diary - blah- mildly funny stuff about my journey
  • ROCKIEDOG_2
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    Hi Talheedin,

    Don't buy a freeview set-top box. Speak to sky and move to their freeview service but only if it costs you nothing. Put it to them that you intend to return to a normal package once things have settled down and hopefully you won't have a problem. Freeview is a good alternative but why pay £30 for a set-top box when you already have all the equipment that you need from sky.

    Good luck.
    Mark
    Debt in June-03 - £24,000
    Debt in June-06 - £8,500 (all on 0% cards)
    Debt in Jan-08 - £4,000 (all on 0% card)
    Savings greater than debt!
    Officially debt free!!! :j
  • chimp_choker
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    Hi There,

    Speak with the CCCS. I was suicidal with debts over £160,000 in August 05. A neighbour was in his fishing boat in the harbour and he saw me "slip" from the pier. We both knew I didn't slip but he was kind and he hauled me out of the water and eventually pointed me in the direction of this site and eventually after trying to sort out the money problems by saving bits here and there, I realised I couldn't manage anymore. I still insure my dog (but don't spend £70 a week on tesco healthy eating chicken breasts for him) lol. ( 2 bags of frozen chicken bits £2.59 from Iceland)

    In December 05 I spoke with the CCCS and they helped me 150%. they worked out a budget for me and contacted my creditors. A couple were right !!!!!!!s but eventually all but one has come around to the plan. I still pay my morgage as normal so that's £97k out of the debt total above but for the rest I have a debt managment plan of £261 a month. I pay the CCCS £261 on the 1st of the month and they pay my creditors on the 25th of the month.

    Some like nationwide trust ( loan) are !!!!!!!s and you really need to tell them where to go and actually I have had to threaten them with court action to stop harrasing me but the rest are ok.

    If you have missed payments and have been banged for the charges then get these back. Another board linked from here is http://www.consumeractiongroup.co.uk/sitemap.php
    and they have a shed load of infomation available. I treckon I have paid out over £10,000 in charges which are legally mine so I'm claiming them back as now I have the resolve to stand and fight rather than commit suicide and leave the burdon on my wife and son.

    I will win, the banks may shag up my credit record but then I don't want to get like this agian so I don't need a creidt record. Stricktly cash from now on.

    It's amazing what you can do if you try. That is not to be flippant but our car gave up the ghost on saturday. Between sunday and yesterday, thursday we walked over 70 miles...we had to we had no money for the busses and needed to get places. It took a long time but we did it. We had to change clothes 3 times on Wednesday as it was raining so hard but we did it and more so I'm well proud of my wife because she doesn't know what feet are for generally.......lol.

    Kill the sky, buy a cheaper washer, kick the kids savings into touch, mag subscriptions etc and but own brand products. Set a challenge of £10 a day for food ( you currently spend about £13 a day) and see how it makes you feel good.

    Hope that helps but don't give in and fight for what you are owed.
  • ROCKIEDOG_2
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    Another quick point - I think someone mentioned a way of beating the Lloyds redemption penalty. I did the same thing and reduced the early payment from 2 months interest on £13,000 to 2 months interest on £243 by overpaying each month. Much better!
    Debt in June-03 - £24,000
    Debt in June-06 - £8,500 (all on 0% cards)
    Debt in Jan-08 - £4,000 (all on 0% card)
    Savings greater than debt!
    Officially debt free!!! :j
  • EagerLearner
    EagerLearner Posts: 4,976 Forumite
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    Hi Talheedin- I hope this spreadsheet will help you out - designed to work in addition to Martin's excellent budget planner:

    http://forums.moneysavingexpert.com/showthread.html?t=238575

    Money Pots will become easier, as will 'frills' spending - easier to keep track of when you have a spreadsheet to log everything in... ;)

    Good luck!
    MFW #185
    Mortgage slowly being offset! £86,987 /58,742 virtual balance
    Original mortgage free date 2037/ Now Nov 2034 and counting :T
    YNAB lover :D
  • Nevabinsoskint
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    I agree with, I think it was James, who said about trying to deal with it your self. I found myself drowning in debt but took hold of the rains and made cut backs wherever possible, it takes a while before you can see the benefit but its worth the wait, I'v still got a long way to go and I don't pretend that it's easy because it's not. I certainly wouldn't consider adding anything to my mortgage, at the end of the day I have 3 children and if the worst came to the worst at least we would still have a roof over our heads.
    I'm not sure what the maximun income is but have you tried applying for working family tax credit and child tax credit? They can only say no!

    With regards to the phone line, calls and broadband, I'v just switched to TalkTalk and I'm saving £19 a month, they're offering free national and international calls and free broadband (upto 8mb) for around £21 a month including line rental, it's worth a look at.

    Cut up those credit cards and remove any temptation to spend on them again.

    Don't give up, it's a long road ahead but it will come to an end eventually.

    Helen x
  • Monita_2
    Monita_2 Posts: 13 Forumite
    First Post First Anniversary Combo Breaker
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    Hi Talheedin, If you really must buy something to satisfy your urges then go to a £ shop and get a couple of things,wont break the bank. Also, make your own sandwiches, buy big bags of baps in Asda etc. and freeze,use lettuce,cheese,toms,cucumber,egg,onion,peppers,cress really filling and cheap.Good luck to you.
  • TARA_2-2
    TARA_2-2 Posts: 6 Forumite
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    Nearly every C.A.B.--Citizens Advice Bureau has a debt advisor( sometimes a retired Bank or Building Society Manager) It can really help if and only if you follow their advice. It costa nothing to make an appointment.
  • whambamboo
    whambamboo Posts: 1,287 Forumite
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    Can't see the big problem. You've got a substantial income, £3k, take-home (you should be getting tax credits on top of it as well).

    Your debts are actually not that big: £42k + the mortgage (which you shouldn't really count, as it's something everyone has for buying a house). Your debts are about 1 year's take-home pay, which isn't a lot. On top of that you own a house, have got a family, and you're in a very good position compared to most people in the world.

    You clearly can cut back on the £3.5k/year you're spending on a car.

    It seems like you're breaking even, including the loans, which is not a bad situation to be in, even with the short-term loans. Once they are shuffled around and paid off, you will have plenty of spare cash. Until then, got to tighten the belt, but with a gross income equivalent to about £50k, it's not a bad state to be in.

    Looks like you are doing good, as you've got room to make savings, and are spending £1k/month on £42k in debt, which you could pay off in 5 years tops, leaving you with plenty of extra cash when you've finished.
    My policies are based not on some economics theory, but on things I and millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time; support the police - Margaret Thatcher.
  • Salty71
    Salty71 Posts: 14 Forumite
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    Sorry if you have already been told this but the Citizens Advice Bureau is a good place to start if you are in the shtuck!

    Not touting for business or anything (we are a charity so advice is free anyway!) but I do the admin for the Money Advice Manager and believe me I have seen a lot worse cases than yours. I know that might not be much comfort at the moment, but its not that bad really.

    What would usually happen is that the advisor would go through all your income and expenditure and work out an agreed financial statement. You would need to take every bit of paperwork you can find, such as last statements, loan agreements, proof of income etc.

    Creditors would be contacted and advised of your current position and more realistic repayments would be suggested to the creditor. If you have an available income after essential spending and priority debts (things like council tax etc), it would be split proportionally between the remaining creditors. So if you owed Egg 9K and Cahoot 1K for example, Egg would get 9/10th of an remaining income and Cahoot would get 1/10th.

    Generally they are willing to also freeze interest for a few months to enable you to get on top of things. Although I have to say some are really gits, so be aware its not always easy but having said that the CAB will take care of all the paperwork etc. for you. All you have to do is promise to keep up with any agreed payment plans.

    Don't panic though, at least you are doing something before it gets out of hand.

    Sorry, I know I sound like a CAB advert but I think its better to have as much info as possible so you know which way to move.
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