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Don't know where to go from here!

Hi all my name is Lisa and I currently owe £47370 without my mortgage on loans and credit cards. Me and my husband have occurred all this debt over the last 10 years through taking a two family holidays, buying a family car, supporting us through two 3 month long redundancies for my partner in the last two years (as I only work a 3 day week as we have 2 children), our wedding last year, basic living costs etc.

After being made redundant last Dec and not getting a job until this February has now put us in a position of not even being able to afford food due to the amount of debt we have with repayments totaling £800 a month. We have nothing to really show for this debt as it has just been a result of spending more than we earn.

Every time we sort out our finances another disaster hits us (e.g. redundancies, repairs etc) which has now led us to this point and I don't know where to turn next. I am making the repayments on all of my debts and only incurred a late payment charge twice on credit cards due to us changing bank accounts last year.

I have completed the SOA and I really can't see a solution. We both have good jobs, even though I only work 3 days. I also run two websites, one of which was making a £100 a month profit until I decided to start a new business and I am currently at a loss of -£200 for last year due to the expenditure of creating a new business (selling personalised chocolates so printer, chocolate etc.)

Looking through my SOA the only thing that I can see to reduce on is groceries, which I am willing to do (usually £100 a week for 4 of us, although often less). Also our mobiles (mine, my husbands and my eldest daughters) but I have phoned vodafone and cannot lower the price plans till dec at the earliest. I am also willing to give up Weight Watchers (after losing 12 and 1/2 pound with 12 to go!)

The other related child expenses are dinner money and my husbands CSA payments, of which neither I can change.

Here is my SOA and I would really love for someone to point me in the right direction!!

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details

Monthly income after tax................ 606.33
Partners monthly income after tax....... 1313.46
Benefits................................ 143.87
Other income............................ 187.02
Total monthly income.................... 2250.68


Monthly Expense Details

Mortgage................................ 338
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 40
Gas..................................... 77
Oil..................................... 0
Water rates............................. 34.52
Telephone (land line)................... 11
Mobile phone............................ 95
TV Licence.............................. 12.12
Satellite/Cable TV...................... 33
Internet Services....................... 10
Groceries etc. ......................... 500
Clothing................................ 10
Petrol/diesel........................... 55
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 242.67
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 28.83
Contents insurance...................... 0
Life assurance ......................... 11.82
Other insurance......................... 37.69
Presents (birthday, christmas etc)...... 100
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Weightwatchers.......................... 17.95
Total monthly expenses.................. 1879.6



Assets

Cash.................................... 0
House value (Gross)..................... 87000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 91000



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 75790....(338)......2.59
Total secured & HP debts...... 75790.....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Birmingham Midshires...........17637.....79........2.59
Barclayloan....................13252.....297.......15.84
Cahoot.........................8000......200.......19
Argoscard......................220.......8.........27.9
Overdraft......................1000......7.........19.3
Shan...........................400.......50........0
Asda Finance...................2361......71........16.9
Barclaycard....................4500......100.......21.9
Total unsecured debts..........47370.....812.......-



Monthly Budget Summary

Total monthly income.................... 2,250.68
Expenses (including HP & secured debts). 1,879.6
Available for debt repayments........... 371.08
Monthly UNsecured debt repayments....... 812
Amount short for making debt repayments. -440.92


Personal Balance Sheet Summary
Total assets (things you own)........... 91,000
Total HP & Secured debt................. -75,790
Total Unsecured debt.................... -47,370
Net Assets.............................. -32,160



Reproduced on Moneysavingexpert with permission, using Firefox browser.
«13

Comments

  • Hi Lisa,

    Just wanted to offer my support, your story is so similar to mine I could almost have written it myself! We have had 2 redundancies in the past 18 months, 1 lasted 5 months and the other 3 months. We seem to just get on our feet and then something else happens. I can't really be of much help but I find at least reading about people in a similar situation makes you feel you're not alone.

    I will watch your post with interest as I'm always thinking of ways to decrease our debt quicker, this week I discovered www.spendingdiary.co.uk which is great but tonight I have made my own on Excel which is tailor-made to us. I need to know where all our apparent 'spare' money is ending up every month.

    Good luck and stick with it.
    Me, DH and DD (17 months) clearing our debt for a better future. Then (LBM) = £21,636.43 (Oct 2009) Now = £12128.07 (44%)
    GOALS/CHALLENGES
    Try to get credit card to £2k by April 2012 (was £3014.94)
    PADing to clear CC 1/1/12 TOTAL: £32.00
    Ditch 100 in January challenge: lost count but way over 100!!!/100
  • Hi Lisa and welcome:)

    We were also in a bad way in Jan this year, continually in the overdraft, using CC for food shopping and then a couple of unexpected bills and we were unable to meet the minimum repayments:(. This was our wake up call and we realised, in time for us luckily, that we couldn't go on. We have completely changed our lifestyle, no more credit, and accounting for EVERY penny spent, it's hard but strangely addictive:D.

    The BEST thing we did though was to go on the CCCS (www.cccs.co.uk) website and complete their debt remedy. It's free, and easy to do:) at the end it recommended that we go on a DMP(debt management plan) which we have just started in April. We have a new basic bank a/c with a different bank (we'd been with ours for 27 years:o) and can see a path to follow now, we will be completely debt free in 6 years:j

    Good luck Lisa, just shout if you need any other info, I'm sure you'll get loads of help on here:)
  • lisaandsaffi
    lisaandsaffi Posts: 19 Forumite
    edited 15 April 2010 at 8:40PM
    I have always done a spread sheet for about 3 months advance what I have going out so I know how much I have left.

    I have now taken this one step further and have just opened a separate bank account for food, petrol etc, everything apart from my direct debits, which is how I know I have nothing left for food!!

    I can really sympathise with you and with 3 children (my husbands daughter also) my youngest being 4 and no permanent babysitter to work extra I am stuck in a hole I have no idea how to get out of!

    I have been on the CCCS website and completed their plan but it just told me that I need to spend less on Sky and mobile phones. Do you think I should phone them?
  • The_Moo
    The_Moo Posts: 130 Forumite
    Part of the Furniture 100 Posts


    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 606.33
    Partners monthly income after tax....... 1313.46
    Benefits................................ 143.87
    Other income............................ 187.02
    Total monthly income.................... 2250.68

    Monthly Expense Details
    Mortgage................................ 338
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 90
    Electricity............................. 40
    Gas..................................... 77
    Oil..................................... 0
    Water rates............................. 34.52
    Telephone (land line)................... 11
    Mobile phone............................ 95
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 33
    Internet Services....................... 10
    Groceries etc. ......................... 500
    Clothing................................ 10
    Petrol/diesel........................... 55
    Road tax................................ 20
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 242.67
    Medical (prescriptions, dentist etc).... 15
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 28.83
    Contents insurance...................... 0
    Life assurance ......................... 11.82
    Other insurance......................... 37.69
    Presents (birthday, christmas etc)...... 100
    Haircuts................................ 10
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Weightwatchers.......................... 17.95
    Total monthly expenses.................. 1879.6


    Assets
    Cash.................................... 0
    House value (Gross)..................... 87000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 91000


    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 75790....(338)......2.59
    Total secured & HP debts...... 75790.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Birmingham Midshires...........17637.....79........2.59
    Barclayloan....................13252.....297.......15.84
    Cahoot.........................8000......200.......19
    Argoscard......................220.......8.........27.9
    Overdraft......................1000......7.........19.3
    Shan...........................400.......50........0
    Asda Finance...................2361......71........16.9
    Barclaycard....................4500......100.......21.9
    Total unsecured debts..........47370.....812.......-


    Monthly Budget Summary
    Total monthly income.................... 2,250.68
    Expenses (including HP & secured debts). 1,879.6
    Available for debt repayments........... 371.08
    Monthly UNsecured debt repayments....... 812
    Amount short for making debt repayments. -440.92

    Personal Balance Sheet Summary
    Total assets (things you own)........... 91,000
    Total HP & Secured debt................. -75,790
    Total Unsecured debt.................... -47,370
    Net Assets.............................. -32,160


    QUOTE]

    I'm sure a proper expert will come along soon but until then a few things jump out at me:

    Could you do without one of the cars - £55 on fuel per month suggests they are not used a lot.

    Gas seems very high; could you shop around for a better rate?

    Ditch the satellite tv and use freeview?

    £1200 a year on presents is quite a lot, could you cut right back, just buy for the children?

    What is the 'other insurance'? Do you need it?

    COuld probably cut back quite a bit on groceries without much sacrifice.

    Check you're getting all the benefits you're entitled to.

    Good Luck!
  • I have been on the CCCS website and completed their plan but it just told me that I need to spend less on Sky and mobile phones. Do you think I should phone them?

    We cancelled our Sky and only have basic mobiles, and were already spending the bare minimum on everything so it did give us a surplus to be able to pay our creditors. It took us a month to be in a position to start the DMP though and I know it takes longer for some. Perhaps if you rework your SOA and cut back where you can, then try the debt remedy again:)
  • katsu
    katsu Posts: 4,977 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Mortgage-free Glee!
    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 606.33
    Partners monthly income after tax....... 1313.46 can your partner get any overtime?
    Benefits................................ 143.87
    Other income............................ 187.02 can you do any other extra work - say an evening a week when your OH is home?
    Total monthly income.................... 2250.68

    Monthly Expense Details
    Mortgage................................ 338
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 90
    Electricity............................. 40
    Gas..................................... 77 this is really high - is your bill accurate or estimated? Turn down the heating, turn it off more often, don't heat the water for hours that you don't need. Have heating on less often.
    Oil..................................... 0
    Water rates............................. 34.52
    Telephone (land line)................... 11
    Mobile phone............................ 95 if daughter is old enough for a phone is she old enough to get a job to pay for it? If not she can't really need one. Double check that there is no way you and OH can drop tarrif - say you are in financial difficulties.
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 33 get a freeview box and give this up - you can't afford it at the moment.
    Internet Services....................... 10
    Groceries etc. ......................... 500 use old style board for advice to reduce this.
    Clothing................................ 10
    Petrol/diesel........................... 55 cut out non-essential journeys and drive fuel efficiently (see martin's advice) and use the petrol prices sites to find cheapest.
    Road tax................................ 20
    Car Insurance........................... 50 use comparison sites at renewal time for this and other insurances.
    Car maintenance (including MOT)......... 20 are you saving this up for your car servicing? If not you are spending more in the month than you have tracked here.
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 242.67
    Medical (prescriptions, dentist etc).... 15 can you reduce this?
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 28.83
    Contents insurance...................... 0
    Life assurance ......................... 11.82
    Other insurance......................... 37.69
    Presents (birthday, christmas etc)...... 100 sorry, you can't afford this. You need to cut to £10 per month. That is totally do-able.
    Haircuts................................ 10
    Entertainment........................... 20 what are you buying?
    Holiday................................. 0
    Emergency fund.......................... 0
    Weightwatchers.......................... 17.95
    Total monthly expenses.................. 1879.6


    Assets
    Cash.................................... 0
    House value (Gross)..................... 87000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 91000


    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 75790....(338)......2.59
    Total secured & HP debts...... 75790.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Birmingham Midshires...........17637.....79........2.59
    Barclayloan....................13252.....297.......15.84
    Cahoot.........................8000......200.......19
    Argoscard......................220.......8.........27.9
    Overdraft......................1000......7.........19.3
    Shan...........................400.......50........0
    Asda Finance...................2361......71........16.9
    Barclaycard....................4500......100.......21.9
    Total unsecured debts..........47370.....812.......-


    Monthly Budget Summary
    Total monthly income.................... 2,250.68
    Expenses (including HP & secured debts). 1,879.6
    Available for debt repayments........... 371.08
    Monthly UNsecured debt repayments....... 812
    Amount short for making debt repayments. -440.92

    Personal Balance Sheet Summary
    Total assets (things you own)........... 91,000
    Total HP & Secured debt................. -75,790
    Total Unsecured debt.................... -47,370
    Net Assets.............................. -32,160


    Reproduced on Moneysavingexpert with permission, using Firefox browser.
    I've not saved you enough money here, a £400pcm shortfall needs serious action. I'm afraid you do need to make tough choices like dropping sky and cutting right back on presents.
    Debt at highest: £8k. Debt Free 31/12/2009. Original MFD May 2036, MF Dec 2018.
  • pebbles88
    pebbles88 Posts: 1,464 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker

    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 606.33
    Partners monthly income after tax....... 1313.46
    Benefits................................ 143.87
    Other income............................ 187.02
    Total monthly income.................... 2250.68

    Monthly Expense Details
    Mortgage................................ 338
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 90
    Electricity............................. 40
    Gas..................................... 77
    Oil..................................... 0
    Water rates............................. 34.52
    Telephone (land line)................... 11
    Mobile phone............................ 95
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 33
    Internet Services....................... 10
    Groceries etc. ......................... 500
    Clothing................................ 10
    Petrol/diesel........................... 55
    Road tax................................ 20
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 242.67
    Medical (prescriptions, dentist etc).... 15
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 28.83
    Contents insurance...................... 0
    Life assurance ......................... 11.82
    Other insurance......................... 37.69
    Presents (birthday, christmas etc)...... 100
    Haircuts................................ 10
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Weightwatchers.......................... 17.95
    Total monthly expenses.................. 1879.6


    Assets
    Cash.................................... 0
    House value (Gross)..................... 87000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 91000


    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 75790....(338)......2.59
    Total secured & HP debts...... 75790.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Birmingham Midshires...........17637.....79........2.59
    Barclayloan....................13252.....297.......15.84
    Cahoot.........................8000......200.......19
    Argoscard......................220.......8.........27.9
    Overdraft......................1000......7.........19.3
    Shan...........................400.......50........0
    Asda Finance...................2361......71........16.9
    Barclaycard....................4500......100.......21.9
    Total unsecured debts..........47370.....812.......-


    Monthly Budget Summary
    Total monthly income.................... 2,250.68
    Expenses (including HP & secured debts). 1,879.6
    Available for debt repayments........... 371.08
    Monthly UNsecured debt repayments....... 812
    Amount short for making debt repayments. -440.92

    Personal Balance Sheet Summary
    Total assets (things you own)........... 91,000
    Total HP & Secured debt................. -75,790
    Total Unsecured debt.................... -47,370
    Net Assets.............................. -32,160


    Reproduced on Moneysavingexpert with permission, using Firefox browser.


    hiya, first thing i would say it ditch the WW, once you have the books etc you have all you need. I knwo its hard without extra support but perhaps it might be poss to buddy up with a friend?? get support that way?

    are you paying council tax over 12 months instead of 12?? if not write to them to ask to do so.

    mobile phone - ring them now, and say you need to reduce of they run the risk of not being paid at all, how long have you been in countract with them??

    Groceries can be cut down by half, go over to the Old style board and look at the grocery challenge thread.

    it wont be easy but you can reduce quite a bit, good luck, and keep coming back. xxx
    Please be nice to all moneysavers!
    Dance like nobody's watching; love like you've never been hurt. Sing like nobody's listening; live like it's heaven on earth."
    Big big thanks to Niddy, sorely missed from these boards..best cybersupport ever!!
  • Thankyou for pointing out my mistake I've given the weekly figure not monthly! We have 2 cars as I can't drop the kids off at breakfast club until 8 o'clock and I start work at half 8 with a half hr drive to work. My husband starts work at 2 in the morning so no chance of him catching a bus!!

    I have changed gas companies several times and they all start off at a low rate and then rise as I have a very old back boiler that seems to just eat gas! Also to have a bath we have to heat the water which also, due to a fault in the system no one seems to know how to fix also puts the heating on. We have had a service recently though which corrected one problem and I was told it should help bring the ill down.

    I am considering ditching the satellite but as I am a sucker for anything on sale 3 months ago I signed up to multi room for a fiver a month and am locked into a 12 month contract. We also have no aerial on our house so would have to look into getting that done (is it easy?).

    Currently I only buy for the 3 children birthdays and Christmas and my 4 nephews (£10 each at birthdays and Xmas) but I am going to try and cut back there.

    The other insurances are accident, sickness and unemployment insurance for my husband (due to the redundancies) although they would not pay out last time so I am thinking of ditching this, don't know if that would be wise though! Currently £27 a month. I also pay £4.99 for identity theft cover as my identity was stolen previously so I now check my credit report. I could probably do without this though.

    The last insurance is £5.70 for washer cover as I have only a week left on my year guarentee and have already had a new motor so I am thinking that the washer I bought (£230) isn;t up to much but is something I can't do without.

    As I am doing weight watchers I have been spending about £20 -£30 less a week due to meal plannings but I am going to look at online shopping too try and reduce it more (as I said I'm a sucker for a sale!)

    The SOA doesn't include any tax credits as due to an increase in my husbands pay I have not received a response from them yet due to the end of the tax year. But they have told me that as he has found a job I now owe £300! When we were on similar income before we recived £10 a week.

    I have taken to only taking the kids for walks on the weekend so I don't go to any shops and as all my cards are now full I am not able to use any more credit. The main problem I have is the loans/cards but I don't really understand about debt management etc. or if this would benefit me.

    Thank You for your help and I am certainly going to try all these ideas (and update my SOA with the petrol!)
  • Hi lisa, re-Sky if you're locked in for 12 months I would reduce your package to the cheapest available, and than give the months notice to cancel when you are able. Once Sky is turned off use the box and dish as a freeview system, you still get quite a lot of channels for free xx.
  • katsu
    katsu Posts: 4,977 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Mortgage-free Glee!
    I don't think you can afford £4.99 identity theft cover - check how it compares to regularly checking your £2 statutory credit file.

    Ring sky/whoever and say you are thinking of leaving and are in financial difficulties, see what they can do for you.

    Have more showers and less baths?

    Turn the house thermostat right down when you have the hot water heating on so less gas is used by your central heating.

    Get a good gas boiler person out. It cost me £200 odd but I had the same fault which was due to shoddy fixing by some previous person and our new gas boiler chap fixed it by changing a part and giving it some TLC.

    How old are your kids and nephews? You *have* to spend less than £100 per month on gifts, you just can't afford it.
    Debt at highest: £8k. Debt Free 31/12/2009. Original MFD May 2036, MF Dec 2018.
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