Facing up to things - rock bottom

mrs_mug_2

I posted my SOA a few days ago, under a different log in (realised that my other user name isn't very anon. and I'm mortified about my state of affairs).

Since then I've scoured these boards looking for ways to manage my money better. At first I had a feeling of 'yeah, I can do this' and now I can't stop pouring over my budgets and I'm getting more and more worked up by the fact that we'll be in debt forever (well, a long time yet).

I feel completely panic stricken. Is this a normal reaction? Will things calm down again for me? I wish I could do more. I feel like I should be money shuffling or something but I can't see how it can help this time. I just wish I'd been more sensible in my youth

Princess_Aphrodite

Hi Mrs Mug, and welcome! We are newbies together!

Don’t worry ~ you have made your first step in the right direction of becoming debt free by posting here and facing up to the fact.:T

First of all repost your (now anonymous) SOA here for all of us to have a look through.

Get it in order and give as much detail as possible - let us all see if we can’t help you sort through it. Start your debt diary today and I promise you will feel better simply by getting the facts organised and into one place.

Chin up, we are all here to support and help each other. Big virtual hugs to you.

mrs_mug_2

Income
2245 wage
190 family allowance/tax credit

Car insurance 50
overdraft 150 mixed apr's on overdrafts, balance in signature
FOOD 160 2 adults and 2 toddlers
PETROL 250 husband has a long commute
CREDIT CARD 144 min payment. up to date balance in signature
TV LICENCE 10.99
LIFE assurance. 15.14 been reviewed this week
Mortgage 658 interest only, 34 years remaining
WATER 31.04
BT 32.5
LIFE !!!. 34.48 - been reviewd this week
HOME INS 38.61 - slightly higher to cover cost of expensive computer equipment. been reviewd this week.
GAS/ELEC 80.85 - bill built up over the winter, paying that off a bit each month.
CTAX 81
FIRST PLUS 181.83
mob phone1 40 - low as it can go, 18 month contract
CAR 187.63 on a 3 year lease, can't get out of contract

NWIDE LOAN 165.56 5 years remaining, 5.7%

mob phone2 28 - as low as it can go, 18 month contract

There are a few other bits that I have to pay towards an evening class I'm doing, they total £120/month for the next 5 months.

Where to start, where to start.

summerday

Hi Mrs Mug,

Just wanted to say, your situation is just hitting home and you're probably in shock to start with. But things will get better.

And remember- you can't change the past, and even if you've made lots of mistakes with money that doesn't make you a bad person.

And you are one of the lucky ones because you've found this board, have lots of great company and will get lots of support.

Hugs,
Sarah x

stevenclarkuk

Hi there,

I hope all works out for you..

I recently reduced my monthly outgoing by over £100 just by shopping around.

1) I moved my Home insurance and saved £25 a month. You would really have to have a lot of computer equipment for it to effect your premium so shop around.

2) I notice you have a HBOS credit card. Do you know what the interest is on that. Some of the older cards have been increased to 21% over the last month or so by HBOS.
I applied for 2 new credit cards with low life of balance transfer offer. By doing that I reduced my outgoing again by another £80 a month and saved a fortune in interest.

3) Make sure you check your Gas and Electricity suppliers to see how competitive they are using Uswitch.com or similar. Doing this and selecting an online rate is saving me 25% compaired to my old supplier.

With the Money/Interest that I've saved I've put them towards reducing the credit cards.

Things take time, but if your commited enough it can really make a difference.

Hope all works out

Steven

Edinburghlass_2

If you can let us know what the BT covers we might be able to shave some of that monthly bill, provided you are outwith a 12 month contract

Check out the Home Insurance link in Martin's email which is just arriving today, I haven't read it fully but if you are reviewing you might be able to get it cheaper via his suggestions.

mrs_mug_2

Thank you everyone. I'll check that email out, thanks.

Bt price includes free evening and daytime calls. I'm in 2 minds as to whether I should reduce this package as I do spend a long time on the phone to my Mother (a whole different story!) in the day. I can't call her in the evening and I'm not using my mobile now so I'm not sure if I'm better off this way or not. I suspect with a little restraint I could save us a fair packet there too. (I think the £32 is a higher figure due to having a large bill last year. I was paying £20 a month which didn't cover the call costs and so they upped the monthly dd to cover it).

vivaladiva

Hi
Facing up to your situation can be a bit scary (been there, done that!), but you will come to terms with it - honestly.

Your car insurance seems pretty high. Obviously we don't know what type of car you have, but did you know you can change insurer at any time not just at renewal?
Could you not even renegotiate the contract for a smaller, cheaper car ?

mrs_mug_2

Bizzimum wrote:

Hi
Facing up to your situation can be a bit scary (been there, done that!), but you will come to terms with it - honestly.

Your car insurance seems pretty high. Obviously we don't know what type of car you have, but did you know you can change insurer at any time not just at renewal?
Could you not even renegotiate the contract for a smaller, cheaper car ?

Car insurance is fairly high - we've got protected no claims which has increased the price. We have 2004 mondeo, so not a huge car. We can't downsize though because we have to be able to fit 2 car seats in the back and a double pushchair in the boot. My H is looking in to the contract as I type to see if we can get out of the contract and get a cheaper car.

Pobby

Hi and welcome.I see you have an I/O mortgage.Not quite understanding why it has 34 years to run.Does that mean that you have some sort of savings plan in place to pay off the capital?If not then that kind of mortgage runs for ever.Do you have equity in your home?If so it might be an option to sell.Renting from the bank{I/O mortgage } can be more expensive than private rental.

CLAPTON

as i see it

your income is 2435
you 'normal ' expenses are 1698
available for debt repaymt 737
minimum debt repayment 639 assuming paying only 16 on the overdraft (i.e. the interest)
and you're paying another 120 on the odds for the evening class?

in seems to me you are spending more than your income
in addition there is nothing in the SoA for clothes, emergency fund, anything for xmas/presents or child related costs, going out

so what exactly is included in the 120? can this be scrapped or reduced.

BT bill could be reduced by going for BT basis option 1 and using call1899.com and/or call18185.co.uk or similar.....you can call any 'normal' landline uk numbers and talk for an hour for only 3p (anytime day or night) also calls to mobiles and good value too.

apart from the mobiles i cant see too much to reduce...in fact as i've already said i think your SoA is too tight and in fact you probably spend more

can you increase your income...partime job in the evening or at weekend a few huibdred extra would help greatly.