Please can someone help me with a plan?

gardis

Oh lordy, I'm very stressed. And in a lot of debt. Please can someone point me in the right direction?

Here is my state of affairs:
income after tax £2245
Family allowance etc £200
total incoming 2445

Alevel 33
driving lessons 80
FOOD 200
PETROL 250
CREDIT CARD 200 min payment. Balance £7500, 0%
TV LICENCE 10.49
LIFE !!!. 15.14
UNIT TRUST 20 childrens savings
UNIT TRUST 20 childrens savings
WATER 31.04
BT 32.5
LIFE !!!. 34.48
HOME INS 37.85
GAS/ELEC 80.85
CTAX 82.62
FIRST PLUS 181.83 8.9% over 25 years. balance £22k or there abouts
MTG 658.11 INTEREST ONLY
mob.phone 50.44 fixed contract for another 18 months
CAR 187.63 fixed term, cant get rid of this
NWIDE LOAN 165.56 5.6%interest. 5 years left, £8k bal.
SKY 19.99 need sky in order to get a tv signal
mob phone 28 fixed contract for 18 months
Total outgoing 2419.53

We also have a £800 overdraft over 4 current accounts (main one is £400 then 4 have £100 on each).

So how do we get out of this mess? The first plus loan stresses me out the most and a close second is the credit card.

We only have 1 income currently as childcare is too expensive for me to return to work. I am also studying (hence the first bill for £32 which pays for 1 alevel). I am not qualified in anything yet so my max. income would be around £11k.

I'm feeling quite desperate and sick of consolidating to make day to day life easier but making the over all picture much worse.

gardis

oooh the life !!! should be life assurance, i'd shortened it to life a s s!!

lynzpower

OK just a little :wave: from me and a quick nosey over the situation

Alevel 33
driving lessons 80 ( do you have to have these at the mo?)
FOOD 200 ( for 3? this could come down a little, have a look at the old styole board)
PETROL 250 ( can you reduce your journeys, walk places, also there are websites checking where the cheapest petrol is someone will pipe up with this- I hope!)
CREDIT CARD 200 min payment. Balance £7500, 0%
TV LICENCE 10.49
LIFE !!!. 15.14
UNIT TRUST 20 childrens savings
UNIT TRUST 20 childrens savings ( must you continue to pay these- for now?)
WATER 31.04
BT 32.5 ( Whats included in this?)
LIFE !!!. 34.48 ( 2 lots of life cover- only one earner? I think you could get rid of one? look into it?)
HOME INS 37.85 ( thats high - check this is the cheapest using uswitch or simply switch on quidco.com for cash back)
GAS/ELEC 80.85 ( :eek: this is high. Check out https://www.saveenergy.co.uk and turn everything off at the wall thats not being used, energy saving lightbulbs and turn your thermostant down!)
CTAX 82.62
FIRST PLUS 181.83 8.9% over 25 years. balance £22k or there abouts ( chances are you wont be able to get out of this early without some serious effort, try to put this one on the back burner for now)
MTG 658.11 INTEREST ONLY ( obvioulsy you need to be looking at a repayment vehicle for this long term)
mob.phone 50.44 fixed contract for another 18 months ( ok, you can ask them to downgrade your package to the cheapest one they do there will be a saving there, use sparingly)
CAR 187.63 fixed term, cant get rid of this ( how long left? APR?)
NWIDE LOAN 165.56 5.6%interest. 5 years left, £8k bal.
SKY 19.99 need sky in order to get a tv signal ( really? Or could you get a digibox? Where are you? Only surely the BBC would have something to say about how you have to pay a TV licence but cant get apicture? look into it)
mob phone 28 fixed contract for 18 months ( again see if this can be downgraded)
Total outgoing 2419.53

Just a few thoughts from me there

gardis

Thank you for looking over it for me.

My husband works 130 miles away for 2 days a week, so that is where the petrol goes (he does stay over night so it is a case of ther eand back once a week).

There are 4 of us to feed. A lot of the money goes on baby formula for now but we're eating lots of cheap meals (baked beans and jacket potato anyone?!!)

The car is on one of those 3 year lease deals so that can't be changed unless we pay it back

Phones - will look in to cheaper packages

Life assurance, will also look in to changing those again

boo hiss about the first plus loan

I do need to pay in to the children's accounts really. I feel terrible that we've got in to this much debt and if it does take us a long time to become debt free I don't want the children to have absolutely nothing when they turn 18.

Power bills are so high because our house is poorly insulated and we run the washing machine a lot (2 in nappies, cloth nappies though!). We don' have the spare cash to do anything about the insulation unfortunately. Also, with my husband working at home he's running computers and extra heating in his office.

Similar situation with the tv - we need to get a funny arial (sp?) to get a signal. which is more money up front. paying monthly seems to be the easier way, even if it is more expensive this way.

Thanks again, will look at cheaper insurances now...

leni

Your home insurance could be reduced! I reduced ours from £35 to £18 a month by switching from Halifax to Norwich Union and now I also have a great sum valued compared to the measley £5k I had before!

I gather someone can drive otherwise you wouldn't have a high petrol costs, could that person not take the learner out for some lessons so you can reduce this ammount? i.e. you currently have 4 lessons, cut to 2 and have 2 lessons with the person who can drive.

£78 on mobiles is allot, I know you on contract but could you lower the contract or put a bar on the ammount you can use on it a month.

**purpleprincess**

I had nothing when I turned 18! And neither did my brother!! Quite a few of my friends didn't get a lump sum on turning 18.

leni

again, same here, I had nothing but what I worked hard to earn! Pocket Money? whats that lol!

seriously my parents did the best for me and I never felt like I had to go without!

lynzpower

gardis wrote:

Thank you for looking over it for me.

My husband works 130 miles away for 2 days a week, so that is where the petrol goes (he does stay over night so it is a case of ther eand back once a week).

There are 4 of us to feed. A lot of the money goes on baby formula for now but we're eating lots of cheap meals (baked beans and jacket potato anyone?!!)

The car is on one of those 3 year lease deals so that can't be changed unless we pay it back ( some people take out other lenders loans at smaller APRs though- this can be done in some cases)

Phones - will look in to cheaper packages

Life assurance, will also look in to changing those again

boo hiss about the first plus loan

I do need to pay in to the children's accounts really. I feel terrible that we've got in to this much debt and if it does take us a long time to become debt free I don't want the children to have absolutely nothing when they turn 18. ( with the greatest of respects, why should they be having a cash lump sum when they turn 18, when you are in the mire in debt. Effectively, your loans are PAYING for these savings account, equivalent to paying the savings with a your overdraft. Im not suggesting cashing them in, but at the very least a reduction or suspension till you are back on your feet- read martins artlcle -are you ready to save)

Power bills are so high because our house is poorly insulated and we run the washing machine a lot (2 in nappies, cloth nappies though!). We don' have the spare cash to do anything about the insulation unfortunately. Also, with my husband working at home he's running computers and extra heating in his office. ( This is silly talk. Insulation simply has to be a priority, its one of those one off things you pay, then it pays for itself. Ask your energy co for an assessment, sometimes theyve been known to chuck some free insulation peoples way- find out. And use energy saving by making sure everything is off when not used- PC included!!)

Similar situation with the tv - we need to get a funny arial (sp?) to get a signal. which is more money up front. paying monthly seems to be the easier way, even if it is more expensive this way. ( then change your thinking.If you need a new arial, but its going to save you a significant month on month, then thats the moneysaving way )

Thanks again, will look at cheaper insurances now...

Also
if you are not working & OH is working from home most of the time why do you pay 231 childcare per month?

Could you get a part time job to bring the money in?

**purpleprincess**

leni wrote:

again, same here, I had nothing but what I worked hard to earn! Pocket Money? whats that lol!

seriously my parents did the best for me and I never felt like I had to go without!

Exactly the same feeling, never felt like I went without. knew they loved -and dad does still, I hope!!! love me!! -me, money doesn't buy that.

yeslek

what are you getting from paying bt 32.5?
if its just a phone line why not get rid of it - you have a mobile so what use is a land line.
unless you get free minutes or is a package deal.

also, instead of paying sky 19.99 why not get freeveiw?

gardis

The money for my children is to help towards their education or to pay for driving lessons. I'm sorry but I don't want to stop saving for them. £20 is the least I can save in the account- it is a trust fund account so it is money I can't touch.

I need driving lessons so I can get a job 'out of hours'. Taxi fees to bring me home would make working pointless

We don't pay £231 on any childcare, have I made a typo? We spend nothing on childcare.

We do intend to cut back on the driving lessons. I'm a very nervous driver though so want a few more lessons under my belt before we cut back.

I think the buildings/contents is so high because we have computer equipment as an additional on the policy (there is a lot of equipment for my husbands job) but I will shop around.

Thanks again