My SOA - KATCHAMBERS

Edinburghlass_2

katchambers wrote:

Well £400 has been the average but it has been increasing each month, last month it was £600. If I worked full time I would only make an extra £300 a month for 2 extra days of work, whereas now I spend about 1.5 days on my business and can make double that, so I do feel my business is worthwhile, I just need to put some if it into our debts rather than buying more things for the business. I do want to get a smaller part-time job like 10 hours a week and then work really hard at my business to get a really good income from it, but it is risky with our financial situation, this is what me and hubby have been talking about for a long time and a decision has not been made until I find that perfect 10 hour job. I am about to apply for one, so if I get it then that will help me make the decision.

It appears that your business involves buying stock as you say you need a large house to store it, has buying stock involved any of the loans and when you say you are making £400/600 per month on your business are you actually taking into account what it has cost over the month to buy any stock or service any loans that have been used.

If you want to go into business in more full time way you really need to draw up proper business plans and work out your profit margins taking everything into account.

I see Rgc has touched on this but please look carefully into this

SkippyB

I can see why you may think that people are being harsh but it's best that you hear what people have to say now before it's too late.

You may think that your 'little treats' are deserved but you need to start thinking seriously about what debt you are in. I agree with most of the other posters, I dont think you are really ready to face your problems and you definately have not reached your 'lightbulb' moment.

You seem to be making all the excuses under the sun not to do anything that has been suggested to help you sort out your finances. Yes, the people on this board can be very hard on posters, but they never mean it nastily. They just know what you are going through and are trying to shock you into dealing with it. It will not get better if you keep making excuses....it will get worse until the point where you cannot salvage anything.

Perhaps now is the time to stop burying your head and to speak to an independant financial advisor about your future. I took my OH to one as he refused to listen to me and told me he was OK. When he heard what his future would be, he started looking at the debt issue with different perspective.

I wish you the best of luck but ask that you start listening and stop excusing. We are all routing for you but you need to let your defences down and perhaps accept that you are wrong on some things.

All the best.

Cazzdevil

roswell wrote:

Some quick maths, assuming for 1 second that your income stays the same and there was no interest to pay on all your debt and mortgage, assuming you only worked and paid debt (no eating or anything)
£3000 a month * 12 months = £36000

£257000 / 36000 = You will be working 8 years to pay this off, Now add the fact that you have to eat and there is interest payable on these debts and your probably looking closer to 16 years.

Id really suggest you look into IVA / Bankruptcy.

I think this is a TAD extreme!! The OP has already said that at the minute all the debts are being paid and that they're breaking even so she's merely asking for help paying them off quicker. I think declaring bankruptcy or an IVA is absurd when they're able to pay off the debts they have.

A mortgage is a mortgage and I certainly wouldn't class it as a priority debt - after all, most of us have a mortgage (I have a £50k mortgage but I don't consider myself "in debt"). The main priority for her is getting that £83k paid off as quickly as possible and there have been plenty of good ideas so far to help scrimp a bit of extra cash which could help clear them earlier.

When I was 21 I got left in the lurch with a £31k mortgage and almost £10k of debt to pay off myself so I know how trapped you can feel by having debt at such a young age.

All the best KathChambers, make small changes to begin with and they'll soon mount up to a big one

roswell

The op currently has almost 3 times combined anual salary in debt alone .... and this inst going to be a problem as she expects to be facing redundancy in march ?? I would look at extreme measures to fix what could be an extreme problem before it happens. Save the fire fighting to the fire fighters.

black-saturn

Perhaps she will get her proper lightbulb moment in march and post a SOA stating she will not be going to the cinema and will cancel her sky.

roswell

only 4 years ago 3 X annual salary was called a mortgage.

I think the problem that is displayed here isnt a case of head in the sand but more a case of what will everyone think when i hold my hand up and say " I made a mistake iv done it wrong" which seems to be a common problem in society today.

Cazzdevil

That's very true Roswell. When I took out my mortgage 7 years ago at a mere 19 years old, the maximum I was allowed was a 25 year mortgage at 3 times a single salary or 2.5 times a joint salary. Thankfully I didn't take out a mortgage for the maximum I was allowed and I'm better off for it now.

You hear people say it all the time - it's far too easy to get in debt these days. I wonder how long that will be able to continue before it becomes too big a problem to deal with.
I have the utmost respect for people who can hold their hands up and say "I messed up but I'm gonna sort it out myself".

scholt

lynzpower wrote:

hi there

You also seem to have missed off your TV licence?

I dont want to kick you when you are down, but for example this



Just seems so silly.

I know tesco deals are good, but what good is a holiday in alaska when you are thousands of pounds in debt?

Use your CC points for your green flag cover, or for your shopping, or towards PAYG credit for your phones.

You have a lot of debt, because you are insistent on spending on luxuries that you cant afford. in turn this debt is costing you a fortune in the long run.


If you are not willing to take the sugestions of others, what ARE you going to do??

Can you get another job , 400pcm isnt a big income from your business, you could get a full time job and if you are near MK then surely you qwould pull 800pcm after tax???

Excellent advice as usual Lynz :beer:

Kat please, please think about what you are doing. 80,000 worth of debt that you are 'managing' !?!?! Paying the minimum payment per month is not managing.

You defend your 'one little luxury'......

Hot tub, Cinema, Sky, big house, £70 a month of 'entertainment', £50 a month clothes, and a Next card with an eye watering APR, any of this sound familiar?

Do you really want to spend your whole 20s and probably 30s in debt?

Your 80K worth of debt isn't keeping you up at night but it I think it will me now :rolleyes:

skintasusual

I don't really want to say anything about what you should and shouldn't be spending your money on, its all been said.

However, I find that if I want something, I just think really hard about it first. I think questioning yourself and thinking about how much you really NEED something helps loads with spending. If you don't NEED it, then don't get it!

I find this particularly helpful in the supermarket!

beverleyhills

Well done for facing up that you have a problem with debt. There's lot of good advice that has been written. It 's very overwhelming to receive it all at once when you are just coming to terms with the enormity of the problem.

Please stick with this board, posters are experienced at keeping the wolf(ves) from the door. The wolves being Creditors writing threatening letters and making harrassing telephone calls, balliffs etc.

Well done for stopping on your journey to revaluate your life. The debt free journey can be a long one but travellers tend to change their attitudes and values on the way.

As I haven't noticed lynzpower say this, so I will say it on her behalf. 'There is a difference between what you need and what you want.

Stay with us, we will help you through the bad times and there will be good times-promise.

Good luck