Can anyone help - advice needed!!!!

t4mof

Not many people on here would recommend a consolidation loan - you will secure the loan against your house, end up paying more interest over a longer period of time and have to be very careful not to spend on CCs again. Otherwise you'll be a further 2 years down the line with more CC debt but with a further 23k debt.

We've consolidated 2 (or maybe 3?) times before and when I realised we couldn't continue, my CC debt was at 25k and my mortgage was at £138k. If I hadn't have ever consolidated my mortgage would be £62k!! Every loan I've taken out to make life easier has ended up as part of my mortgage. Although I consider my "debt" to be what I owe on CCs, I won't be fully debt free until my mortgage is down to 62k. Sobering thought!

Any chance of working more hours at work?? I know this is difficult with children and no point working more hours if you then have childcare costs! Is there any overtime that you or OH could do which would enable you to pay off the £340?? It's not your highest APR but is very achievable to clear and would give you that boost to know that it is possible to clear the debts rather than moving them to a loan.

Verbatim

hi there,

I think your car is a big drag on you. Can you change it? 28mpg is terrible! Do you have particularly expensive cars? Could you sell them (with the permission of finance provider) and buy a cheaper car and cheaper to run? Do you need two cars?

Your SOA is not accurate and your position is worse than you have shown as you have not included all the costs assosciated with car ownership, (maintenance, road tax and one insurance only is included).

If you could also put the details of your monthly payments to loans and ccs on the soa I think you'd get a clearer overall picture. I think that you have a gap at present between income and expenditure, even with the strict budget that you show in your soa. How are you closing the gap? Are you still using ccards? If so you are still increasing the debt. And is the budget a true picture of what you DO spend or what you'd like to spend?

You really need to up your income! Don't we all! Are you getting all the benefits and tax credits that you are entitled to? Is there a course or qualification that would allow you or your OH to earn more? Could you take a foreign student or lodger? Overtime, taking in ironing, babysitting, shelf stacking at mr T's, bar work a couple of evenings?

Perhaps look at CCCS or debtline for advice too.

Good luck with it all.

savingsp

Only just bought my car just over a month ago, we need two cars because me and my OH start work at different times and i have to drop the kids at school before i go to work. They are not high performance or anything like that just a normal estate and a 4x4. What i overspend each month(so we can eatetc) or if an unexpected bill comes up i just put on the CC's ( i know its just adding to the debt but i dont know what else to do). I have no support from family (with regards looking after the kids) and was considering going back to work full time as i currently work school hours( its nice to have the holiday with the kids, but no good if you dont have money to do anything during the holidays). It is getting so bad the doctor has told me i am suffering with severe depression. I'm really stuck and dont know what to do. My OH is quite set in his ways the idea of going back to college, is not one he is willing to consider, he has only ever done one thing and this is a job which will only ever pay just over the minimum wage (which no one can realisticly live on). HELP!!!:o

Verbatim

If you could get a f/t job that would help. But realistically I think you might need to consider a debt management plan. Have you rung CCCS or debtline? Make sure you go to these or one of the other free organizations and not to a fee charging firm

On the cars, can you walk or take public transport to school and work? If you could get rid of at least one car that would be a huge help in freeing up some money. Could your OH use a moped if there bis no public transport to get to work?

You have a gap between what's coming in what's going out so at present the debt is getting bigger every month. You are able to use ccs for bills at present. How much room have you still got on the cards? What will happen when you have maxed them? If you are putting basics on the cards and not paying them off in full you are paying interest on interest on........and a loaf of bread etc will end up costing hundreds (if not thousands).
It is more important to pay your essentials, mortgage, food, CT, utilities and TV licence and go on a dmp to repay the debts over time. Most/many creditors will freeze interest if you do this, especially if you go through one of the debt charities.

savingsp

If i go onto a debt management plan will that effect my credit rating? How does a debt management plan work?

Both me and my husband work 10 miles away from home so could not walk.

RAS

I am going to be really harsh here but the reason you cannot afford to smoke and drink or buy clothes or go out is because you are spending a fortune on cars.

As a rule debt upto a year's salary is manageable and you have just spent a whole year's salary on a car.

savingsp wrote: »

Only just bought my car just over a month ago,

Why buy an expensive car when you are already in loads of debt?

savingsp wrote: »

we need two cars because me and my OH start work at different times and i have to drop the kids at school before i go to work.

So a little second hand run around would do the school run.

savingsp wrote: »

They are not high performance or anything like that just a normal estate and a 4x4.

Unless you live in deepest rural isolation you do not need a 4x4.

savingsp wrote: »

What i overspend each month(so we can eatetc) or if an unexpected bill comes up i just put on the CC's ( i know its just adding to the debt but i dont know what else to do).

What you have to learn to do is live within you means, which means budgetting for all expected expenditure. That also means getting to grips with places like the old style moneysaving forum here.

savingsp wrote: »

I have no support from family (with regards looking after the kids) and was considering going back to work full time as i currently work school hours( its nice to have the holiday with the kids, but no good if you dont have money to do anything during the holidays).

Very important this.

When you have listed your monthly inomce is this what you earn when you are working?

Or is it your annual income divided by 12?

Because this makes a major difference.

savingsp wrote: »

It is getting so bad the doctor has told me i am suffering with severe depression. I'm really stuck and dont know what to do.

You and OH need to sit down together and talk through your income and expenditure. I am guessing that part of the issue is that you would like to live a lifestyle that you cannot afford on your OH's income? And that he pretty much leaves the finances to you, so you are bearing all the agony?

savingsp wrote: »

My OH is quite set in his ways the idea of going back to college, is not one he is willing to consider, he has only ever done one thing and this is a job which will only ever pay just over the minimum wage (which no one can realisticly live on).

At the moment the last thing you and OH need for either of you to take time out from earning to need to spend loads on course fees in the near future.

You need to start by contacting one of the debt charities.

DVardysShadow

£340 surplus on living, but £530 out on loans. Do take the trouble to fill out the whole Statement of Affairs, it will make this clear.

What RAS has to say is not harsh. It is just accurate end to the point. You need to get rid of the latest vehicle quickly and pay off the £286/month loan. Don't hang around, it is dragging you under! Even after you have done this and bought a more appropriate vehicle, you are going to have to cut back or find more income so that you can break free of debt and spend you money on yourselves rather than putting it towards the bank's profits.

Verbatim

[QUOTE=savingsp;31590811

Both me and my husband work 10 miles away from home so could not walk.[/QUOTE]





Walking is not the only option! I also suggested a moped or public transport.

Walking was suggested for taking the kids to school.

You are really up against it and can't continue with your current lifestyle. I think you know this. Suggestions have been made but no-one can magic you more income.

Verbatim

Are you currently paying the loans each month and minimums on cards and using cards to buy food and pay the bills?

You have £535 a month going out on minimums and loans. Presumably the minimums are going up each month as the balance goes up. Plus the interest and any charges on your account,

If you can't decrease your outgoings by getting rid of at least one car or increase your income through students etc you are looking at a debt management plan or bankruptcy. Yes it will affect your credit rating but it is probably already affected as you have so much debt compared to your income. This is no doubt why you couldn't put the £340 on to a 0% card.

To reply to RAS. I was not suggesting giving up work (!) to get a qualification. There are evening courses and day release through employers. Or distance learning and Open University.

speaker1798

This is great advice, i like th whole income and expenditure thing. Maybe i will do mine and you can advise me