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Hanging by a thread........just about!
siw8158
Posts: 11 Forumite
Hi folks,
I've been a long time lurker on here and positive promoter of the site with friends and colleagues but now I need the help and advice please!!!!!
Currently, myself and wife have amassed quite a large amount unsecured debt. Approx £18k :eek: on credit cards, but no store cards thankfully!
A lot of the debt has been from serious issues, expensive car repairs, new bathroom & kitchen due to rotten joists, huge vets bills last year along with things breaking/exploding/imploding with regular frequency over the years, hence most of the debt is from genuine causes and not frittered away!
So, basically, I've tarted and tarted my way through most of the cards on the market and have been a client of most of the big/regular 0%ers and never really made that big an impact on the debt, in fairness, it seemed to grow.
So I am really limited on providers for cheap/0% offers!
Month to month we just scrape by but more essentials like food and fuel seem to be going on the cards so we're not really doing that well!
Thankfully we have a good mortgage rate ATM but if it goes up even a little soon, we're screwed!
Most opf the tarted cards have now reverted to a higher APR due to either accidental missed payments (when I changed accounts) or as in one case, I completely forgot to set up a DD for the 1st payment and instantly defaulted my rate:mad: Doh!
We currently pay around £200 maybe £250 p/m in repayments so could afford to clear the debt quicker if it was frozen. Is this a realistic possibilty as I've asked for a rate reduction with the Halifax and was declined. I think we may be at the point of just servicing the cards and hence, the debt will take an eternity to clear!
We are not in arrers with any payments inc car/mortgage/utilities and the budgeting projector shows us with just approx £28pm spare!!!!!
If anyhting changes drastically, the whole house of cards will fall.
I beleive I've cost cut as much as poss by shifting utilities/packages/insurance etc and after the mortgage the nex big expense to go out is childcare (via BusyBees) @ £480pm which despite the tax savings, is also subsidised by WTCredits, FTCredits and the mother in law and grand mother chip in a weeks money per month each so that really helps, plus out daughter's in a great nursery and I wouldn't want to cut down her hours as she is developing great - 2 in May btw!
So the real question is, with rate tarting a disappearing option, what's the next best thing for the credit card debt???
We both are working, full time too but overtime isn't really an option!
Help!
Many thanks,
Si
I've been a long time lurker on here and positive promoter of the site with friends and colleagues but now I need the help and advice please!!!!!
Currently, myself and wife have amassed quite a large amount unsecured debt. Approx £18k :eek: on credit cards, but no store cards thankfully!
A lot of the debt has been from serious issues, expensive car repairs, new bathroom & kitchen due to rotten joists, huge vets bills last year along with things breaking/exploding/imploding with regular frequency over the years, hence most of the debt is from genuine causes and not frittered away!
So, basically, I've tarted and tarted my way through most of the cards on the market and have been a client of most of the big/regular 0%ers and never really made that big an impact on the debt, in fairness, it seemed to grow.
So I am really limited on providers for cheap/0% offers!
Month to month we just scrape by but more essentials like food and fuel seem to be going on the cards so we're not really doing that well!
Thankfully we have a good mortgage rate ATM but if it goes up even a little soon, we're screwed!
Most opf the tarted cards have now reverted to a higher APR due to either accidental missed payments (when I changed accounts) or as in one case, I completely forgot to set up a DD for the 1st payment and instantly defaulted my rate:mad: Doh!
We currently pay around £200 maybe £250 p/m in repayments so could afford to clear the debt quicker if it was frozen. Is this a realistic possibilty as I've asked for a rate reduction with the Halifax and was declined. I think we may be at the point of just servicing the cards and hence, the debt will take an eternity to clear!
We are not in arrers with any payments inc car/mortgage/utilities and the budgeting projector shows us with just approx £28pm spare!!!!!
If anyhting changes drastically, the whole house of cards will fall.
I beleive I've cost cut as much as poss by shifting utilities/packages/insurance etc and after the mortgage the nex big expense to go out is childcare (via BusyBees) @ £480pm which despite the tax savings, is also subsidised by WTCredits, FTCredits and the mother in law and grand mother chip in a weeks money per month each so that really helps, plus out daughter's in a great nursery and I wouldn't want to cut down her hours as she is developing great - 2 in May btw!
So the real question is, with rate tarting a disappearing option, what's the next best thing for the credit card debt???
We both are working, full time too but overtime isn't really an option!
Help!
Many thanks,
Si
DEBT FREE in Aug 2016...............hopefully!:T
0
Comments
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well if you can post up your SOA here we might be able to spot areas of potential savings which you have missed or not thought about (might not but theres always a chance)
apart from that the initial suggestions would be to do the daily clicks where you can ear up to £3 a day for 30 mins work clicking through things online - its not much but every little helps as the saying goes.
ebay things you dont use and recycle old mobiles if you have any just to get a lump sum to pay of your highest rate cardDrop a brand challenge
on a £100 shop you might on average get 70 items save
10p per product = £7 a week ~ £28 a month
20p per product = £14 a week ~ £56 a month
30p per product = £21 a week ~ £84 a month (or in other words one weeks shoping at the new price)0 -
Hi Siw and welcome to posting on the forums.
As gonzo says the first things is probably complete and post up a statement of affairs - http://forums.moneysavingexpert.com/showthread.html?t=107280
Then we can see if we can help make suggestions to improve your budget.
As to getting interest frozen, if you cannot afford to meet you minimum repayments (without using the cards to buy essentials) you may be able to do a DMP (with a charity or self-managed) which will request that creditors freeze interest. This will have a big negative impact on your credit score though.
But its practically unheard of for creditors to freeze interest and not enter a default on your credit report.
Do you have any old open credit card accounts with zero balances? You may be able to ask them to give you a promotional transfer or low life of balance interest rate.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Well, as requested, here it is!
Two things suprised me, how much I actually pay back pr month on cards and the fact I do have a +£89 surplus:eek:
On the plus side...................I have just negotiated my 6.9% for the life of my balance trasnfer back with Barclaycard...........1st btep on the road to recovery!!!!!:beer:
Anyway, here's my SOA
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 700
Benefits................................ 120
Other income............................ 190
Total monthly income.................... 2410
Monthly Expense Details
Mortgage................................ 760
Secured/HP loan repayments.............. 164
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 40
Gas..................................... 80
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 15
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 28
Internet Services....................... 5
Groceries etc. ......................... 175
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 30
Car Insurance........................... 0
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 24
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 45
Other insurance......................... 14
Presents (birthday, christmas etc)...... 15
Haircuts................................ 10
Entertainment........................... 75
Holiday................................. 0
Emergency fund.......................... 0
Overdraft............................... 35
Magazine................................ 2
Total monthly expenses.................. 1996
Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 191000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 146.339..(760)......2.4
Hire Purchase (HP) debt ...... 4756.....(164)......5.5
Total secured & HP debts...... 4902.34...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................4700......80........15.9
Halifax........................3800......70........15.9
Barclaycard....................4500......85........6.9
Egg............................1800......35........17.9
Santander......................3000......55........0
Total unsecured debts..........17800.....325.......-
Monthly Budget Summary
Total monthly income.................... 2,410
Expenses (including HP & secured debts). 1,996
Available for debt repayments........... 414
Monthly UNsecured debt repayments....... 325
Amount left after debt repayments....... 89
Personal Balance Sheet Summary
Total assets (things you own)........... 191,000
Total HP & Secured debt................. -4,902.34
Total Unsecured debt.................... -17,800
Net Assets.............................. 168,297.66
Next step.................reduce APR rates on other cards!!!!!!!
DEBT FREE in Aug 2016...............hopefully!:T0 -
Well, as requested, here it is!
Two things suprised me, how much I actually pay back pr month on cards and the fact I do have a +£89 surplus:eek:
On the plus side...................I have just negotiated my 6.9% for the life of my balance trasnfer back with Barclaycard...........1st btep on the road to recovery!!!!!:beer:
Anyway, here's my SOA
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 700
Benefits................................ 120
Other income............................ 190
Total monthly income.................... 2410
Monthly Expense Details
Mortgage................................ 760
Secured/HP loan repayments.............. 164
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 40
Gas..................................... 80 - gas and elec does seem high, only costs me £100 a month for both on a 4 bed semi with 2 adults 2 teenagers 1 baby (baby and one adult at home all the time) check to see if you are on the best tariff if not use a cashback site when you switch
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 15
Mobile phone............................ 50 - quite high guess you are still in contract, however find out if you are using all your mins and texts if not phone the company and see if they will drop your tarrif - the worst they can say is no
TV Licence.............................. 12
Satellite/Cable TV...................... 28
Internet Services....................... 5
Groceries etc. ......................... 175 - very good, i always recommend people aim for about £60 per person per month and your are doing slighty better
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 30
Car Insurance........................... 0 - no insurance?
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 24
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 45 - seems quite high, double check you are getting the best deal, if not swop using a cashback site
Other insurance......................... 14 - whats this?
Presents (birthday, christmas etc)...... 15
Haircuts................................ 10
Entertainment........................... 75 - very high (in my mind) for someone on a DMP what is this?
Holiday................................. 0
Emergency fund.......................... 0
Overdraft............................... 35
Magazine................................ 2 - really is this NEEDED?
Total monthly expenses.................. 1996
Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 191000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 146.339..(760)......2.4
Hire Purchase (HP) debt ...... 4756.....(164)......5.5
Total secured & HP debts...... 4902.34...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................4700......80........15.9
Halifax........................3800......70........15.9
Barclaycard....................4500......85........6.9
Egg............................1800......35........17.9
Santander......................3000......55........0 - do you have any limit left on this to transfer the egg onto?
Total unsecured debts..........17800.....325.......-
Monthly Budget Summary
Total monthly income.................... 2,410
Expenses (including HP & secured debts). 1,996
Available for debt repayments........... 414
Monthly UNsecured debt repayments....... 325
Amount left after debt repayments....... 89
Personal Balance Sheet Summary
Total assets (things you own)........... 191,000
Total HP & Secured debt................. -4,902.34
Total Unsecured debt.................... -17,800
Net Assets.............................. 168,297.66
Next step.................reduce APR rates on other cards!!!!!!!
ok have added a few comments, i think the biggy is that you have missed car insurance of your list! which at £30 a car would bring you to your original £29 surplus a monthDrop a brand challenge
on a £100 shop you might on average get 70 items save
10p per product = £7 a week ~ £28 a month
20p per product = £14 a week ~ £56 a month
30p per product = £21 a week ~ £84 a month (or in other words one weeks shoping at the new price)0 -
Well, as requested, here it is!
Two things suprised me, how much I actually pay back pr month on cards and the fact I do have a +£89 surplus:eek:
On the plus side...................I have just negotiated my 6.9% for the life of my balance trasnfer back with Barclaycard...........1st btep on the road to recovery!!!!!:beer:
Anyway, here's my SOA
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 700
Benefits................................ 120
Other income............................ 190
Total monthly income.................... 2410
Monthly Expense Details
Mortgage................................ 760
Secured/HP loan repayments.............. 164
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 40
Gas..................................... 80
Oil..................................... 0
Water rates............................. 45 would a meter be cheaper?
Telephone (land line)................... 15
Mobile phone............................ 50 can you reduce this?
TV Licence.............................. 12
Satellite/Cable TV...................... 28 get rid for now and try freeview?
Internet Services....................... 5
Groceries etc. ......................... 175
Clothing................................ 0 nothing for the little one?
Petrol/diesel........................... 200
Road tax................................ 30
Car Insurance........................... 0 no car ins????
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0 I thought you pay for nursery?
Other child related expenses............ 30 what is this for?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 24
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 45 can you shop around for something cheaper?
Other insurance......................... 14 what is this?
Presents (birthday, christmas etc)...... 15
Haircuts................................ 10
Entertainment........................... 75 can you reduce this?
Holiday................................. 0
Emergency fund.......................... 0 you need something here
Overdraft............................... 35
Magazine................................ 2 can this not come out of the entertainment?
Total monthly expenses.................. 1996
Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 191000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 146.339..(760)......2.4
Hire Purchase (HP) debt ...... 4756.....(164)......5.5
Total secured & HP debts...... 4902.34...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................4700......80........15.9
Halifax........................3800......70........15.9
Barclaycard....................4500......85........6.9
Egg............................1800......35........17.9
Santander......................3000......55........0
Total unsecured debts..........17800.....325.......-
Monthly Budget Summary
Total monthly income.................... 2,410
Expenses (including HP & secured debts). 1,996
Available for debt repayments........... 414
Monthly UNsecured debt repayments....... 325
Amount left after debt repayments....... 89
Personal Balance Sheet Summary
Total assets (things you own)........... 191,000
Total HP & Secured debt................. -4,902.34
Total Unsecured debt.................... -17,800
Net Assets.............................. 168,297.66
Next step.................reduce APR rates on other cards!!!!!!!
I have made some comments above, at least you currently have a surplus which is good, there are some more savings you canmake in your budget but you also seem to be missing a few things (car insurance and childcare?) so make sure you haven't forgotten anything.
How long are you on your low rate mortgage for? you need to try to overpay your debts as much as poss as there is little room for if your mortgage does increase, a half pc rise could take you over the brink at the moment I would think.Aug GC £63.23/£200, Total Savings £00 -
Right……………….
And a big thank you to gonzo127 and milliemonster so far for the kicks up the posterior…………
From gonzo127’s comments
As it stands, Abbey (Not Santander as I’d put) is still @ 0% APR until 5/11 and had was able to transfer £1500 from Egg onto it!
Now Gas and Elec……………£80pm is closer to what I’ve previously been paying not £120 so that’s amended!
Mobile phone…………rang T-mobile and to say I’ve only recently renewed my contracts (one 18 months and one 24 months) they’ve given me a £5pm discount on EACH number for 6 months………….total saved £60.…………..happy @ that!!!!
As for the groceries, I tend to bulk buy long life BOGOF’s (Beans, washing powder, dishwasher tabs etc etc) so I’m it’s generally not needed for the next month or 2 years in the one case of bulk buying the dishwasher tablets.
Now, as for the car insurance, that was missed due to the fact I was very naughty and put 2 x insurance on credit cards this year but the total cost was around £450 so I’ll budget that back in!!!!!
The life assurance and other insurance are the critical illness and mortgage cover and were fairly recently reduced and reviewed and did originally reduce by about £20 or pounds.
Entertainment. A bone of contention here as my wife is very sociable and we do enjoy eating out, cinema (occasionally) and take-outs when rushed…………we’ll have to see about that one!
And from milliemonster’s findings
Water meter…………….never really thought of this……………we rarely take baths (apart from out daughter who’s still in a childs bath, and we both work full time, I only use the hose pipe in summer and occasionally to wash the car or use pressure washer on decking etc, so may be well worth investigating!
Mobile phones - As above
Satellite………..on a recently renewed 12month contract with Sky so 99% a no-goer or is it????
Clothing - It’s such ad-hoc purchases, more a case of when needed not just wanted……….I’ll budget it say £20 pm to cover
Car insurance- as above
Nursery - We pay busy bees so the income has already had the nursery fees technically paid as both wages cover it bar a pounds but we have built up about one months reserve.
Well, I’ll put this in the SOA and see what we get in 5 mins……………..
Thanks again so far!!!!!DEBT FREE in Aug 2016...............hopefully!:T0 -
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 700
Benefits................................ 120
Other income............................ 190
Total monthly income.................... 2410
Monthly Expense Details
Mortgage................................ 760
Secured/HP loan repayments.............. 164
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 30
Gas..................................... 50
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 15
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 28
Internet Services....................... 5
Groceries etc. ......................... 175
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 30
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 24
Buildings insurance..................... 11
Contents insurance...................... 11
Life assurance ......................... 45
Other insurance......................... 14
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Overdraft............................... 35
Magazine................................ 0
Total monthly expenses.................. 1981.5
Assets
Cash.................................... 0
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 191000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 146.339..(760)......2.4
Hire Purchase (HP) debt ...... 4756.....(164)......5.5
Total secured & HP debts...... 4902.34...-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................4700......80........15.9
Halifax........................3800......70........15.9
Barclaycard....................4500......85........6.9
Dad loan.......................1000......75........0
Egg............................300.......35........17.9
Santander......................3800......80........0
Total unsecured debts..........18100.....425.......-
Monthly Budget Summary
Total monthly income.................... 2,410
Expenses (including HP & secured debts). 1,981.5
Available for debt repayments........... 428.5
Monthly UNsecured debt repayments....... 425
Amount left after debt repayments....... 3.5
Personal Balance Sheet Summary
Total assets (things you own)........... 191,000
Total HP & Secured debt................. -4,902.34
Total Unsecured debt.................... -18,100
Net Assets.............................. 167,997.66
Latest update is not so good..........but still comparable.
It's amazing just how many little things you forget when calculating these forms such as the £1000 borrowed just Monday off my father for the car repair and a training course!!!!
Opps...................
Anyway, this is how it now stands,
SiDEBT FREE in Aug 2016...............hopefully!:T0 -
well what can i say really well done on making such quick changes
entitanment, if you like to go to the cinema it would be worth while looking into getting the cheapest orange pay as you go mobile phone as they do 2 4 1 tickets on Wednesdays (if you could change to going then) would probably pay for its self pretty quickly at cinema prices, however CHECK THE T&Cs of the orange wednesdays aginst the potential savings you could make
as for eating out Prezzo do a lot of 2 4 1 meals also many others do other deals check out http://www.moneysavingexpert.com/deals/Drop a brand challenge
on a £100 shop you might on average get 70 items save
10p per product = £7 a week ~ £28 a month
20p per product = £14 a week ~ £56 a month
30p per product = £21 a week ~ £84 a month (or in other words one weeks shoping at the new price)0 -
Well gonzo and millie..................last post for today me thinks!
End result of 1 afternoon................
Back on 6.9 for life promo rate @ Barclaycard
£10 per month reduction on T-mobile bill for 6 months
Shifting of £1500 of high APR debt onto 0%
Wife's C/C now back onto 0% until August - not a long result but happy with that
AND A REALISTIC UNDERSTANDING OF WHERE I STAND!!!!!!
Tomorrow, attack the other Halifax Card for cheaper rate or beg Egg and Virgin (Wife's cards) for decent balance transfer rates!!!!!!:D
And hopefully debt free before 2015 now!!!!!!
Thanx
SiDEBT FREE in Aug 2016...............hopefully!:T0 -
Well done Si, you've made some great progress already and sound really positive!
Have a look at the up your income board for ideas to make a few lbs extra, there are some great ideas on there.
Also, I don't personally think your entertainment budget is that high, but have a look around on some of the other threads about ideas for cheap night outs, restaurant deals etc, even if you could cut this down to £50 a month, it would give you a bit extra to throw at the debtsAug GC £63.23/£200, Total Savings £00
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