Anyone's advice would be appreciated!

Dibdob

Hello!

I am a newbie, and think this site is so encouraging to read and to know we are not alone with debt problems, even though it feels there is no light at the end of the tunnel! However, some of the stories on here are so inspirational and it has given me the courage to post a message!

I got married 4 months ago, and now trying to sort out our financial mess as my hubby seems to bury his head as he doesnt know what to do about it although he is happy that I am helping to address it. Also we do want to have a family, and my old clock is ticking! (I am 37!), but I am concerned about our debts, and worry that if I had to stop work for 6 months IF we had a baby, then how would we cope with paying bills?!

Anyway here is a list of our debt...any advice would be great as I am constantly living in my overdraft.

Monthly Incomings:

My salary - £1,300
Husband salary - £400 definate take home but as self employed he may bring extra home if he can obtain cover shifts.
Total £1700
During summer months we do take in students and can earn an extra £2000 takehome. We tried the lodger thing, but had several bad experiences and found with short term students we had more control! Also just getting married, it is hard to share our house ALL of the time, so summer students are bearable!

Monthly Outgoings:

Mortgage - £1218.91 (Only had house 2 1/2 years,and locked in until next June 2007). Hope to change mortgage then and havent defaulted any payments..but cripples us when int. rates increase! Depends on husbands books as we need to get them sorted out next but costs money for accountant!

Council Tax - £159
TV License - £11.37
Water - £36.31
Electric - £58
Gas - £29.30
Life Insurance - £24.75
Buildings Insurance £38.09 (Had to be done with Mortgage Co)
Phone - £31
Car Insurance - £50.34 (£21.62 husband & £28.72 me) Need cars for work.
Car breakdown cover - £10
Road Tax - £20 (for both taxes)
Petrol - £150 (Husband drives long distances to get work and I was given car as gift by my family so cant sell it but use it for work travel!)
Hairdresser - £20
Clothing - cant buy them!
Hobbies - dont have any!
Toiletries/Sundries - £10
Mobile - £25
Internet - £27 (Husband also does web design from home which can bring in additional earnings but not consistantly, so we do need internet.
Total: £1919.07

Credit cards/loans/overdrafts

Overdraft Natwest (mine) - £3000 APR 17.4%
I use this to live and haven't been in the 'black' for a long time, as had to pay bills with it in past and never caught up as always get monthly int/charges of £60.58.
CAHOOT loan (honeymoon) - £2723.89 minimum payment £54.42 APR 6.9%
BHS store card (mine) - £305.38 minimum payments £20 APR 29.0%
MONUMENT card (husband) £739 – minimum payment £22 APR unsure
(Cannot get through to find out!)
CAPITAL ONE card (husband) – £2184.85 minimum payment £66 APR 15.9%
TESCO card(husband) - £6044.71 - minimum payment £181 APR 16.9%
Deposit Loan - £11670 - family member lent us house deposit. We have been paying £250 month since we got our house and wish to continue this, as they did not charge us interest and we can pay this off in approx 4 years if we continue.

Total: £654 monthly payments


TOTAL IN DEBT : £14997.83 to creditors.banks
add £11670 loan to family member = £26,667.83:eek:

Scary to see it all in black and white, but after reading this board I know there must be a way to resolve it. We were considering combining all of the debts (consolidation) so that we have one lower payment going out to see if we can free up some money until we can get more income, but obviously it will create further debt but over a longer time.
Please please can anyone give some guidence here? I was considering going to CAB, but we can't both get the same time off work for apptmnts together and obviously we both have separate debts but now we are married, want to resolve this together.
Sorry to have waffled.....

iwbus

A very detailed SOA there, it's always good to have it written down clearly so you and everyone on here can see what you've got to play with

iwbus

1) Can you switch accounts to get a 0% overdraft?
2) Can you use a 0% credit card to kill the high APR BHS card and/or take a chunk out of the higher APR credit cards?

ftbworried

Oh my lord, that mortgage is HUGE for the amount you bring in. I know it's probably not an option but what about selling you house and renting? or maybe downsizing? It makes me wonder which crazy mortgage company would lend you such a large sum when you don't earn that much- especially with all that debt!

You probably dont need me to tell you that you are spending £800 more than you earn and thats only meeting minimum payments!


Tbh most people on here can shave bits off your bills but £800 is some gap to make up without getting rid of one of your biggest binds (your mortgage) or getting you husband to get a full-time job. I know self-employment can be very satisfying etc but if your husband is a good webdeveloper then his earning potential really is more than £400 a month! It seems to me that you can't afford for him not to have a regular job- its just not an option right now.

ftbworried

I just read your SOA again and it seems that after travel your husband is only making £250 a month. Getting your husband to get a better paid job really is the key to getting rid of your debts. Just depends how badly you wanna be debt free...

beach_3

Hi

Welcome to the site. I don't want o appear rude but I felt I should give my honest feedback I just wanted to ask why your husband does not change his job. £400.00 per month is simply not enough for the outgoings that you have got. I have noted that some months he earns more but it needs to be consistent so you can tackle your debts. You have said he is self employed this doesn't seem to be a successful business so maybe he should try something else.

Beach

tomstickland

I also worry about the mortgage. It's a killer.
Maybe you could look into taking advantage of the property market and sell the house? You could buy a smaller place or look into renting. I don't know where you live, but round here you can rent nice places for £500 pcm. That'd free up £700 to spend on other things.

Have you looked on uswitch to see if you could get your electricity bill down a bit?

Dibdob

Quick responses on here..thank you for reading!
Definately not up for selling and renting. We rented before, and really needed to get onto the property ladder.We have managed to keep paying our mortgage so far, and everyone says it will get better once we can change over the mortgage. I appreciate it is a struggle at first when you buy a property.
My husband does the web developing as a side line. When we got the mortgage he was earning more on, but because his 'full time' career is within a specialised industry, his work is inconsistant. When he gets lots of cover work then he can bring home over £1000 monthly, but as I say it is inconsistant. For example, when we first came home from honeymoon he was working every single day, however this month he has only had 2 weeks worth full time which leaves us with a downfall.
I agree and it would be fantastic if he could get a full time permanant position, but the industry he is in makes it difficult to get permanant work. He has only ever worked in this industry since school leaving, and therefore he feels worthless when he has tried to get 'other' jobs in other industries and keeps getting rejected.
He is now looking at temp work in caring where he could maybe pick up temp work when he is not doing his 'usual' work.
If I change banks then I would have to pay the £3000 overdraft off...but how? Have been with Natwest for many many years.
C/c change for o% interest would be good...but need to read up best ones for him to try and switch to. Know he has applied for virgin one.

jeetster

I have to agree as a starter try switching your some of the debt to a 0% apr rate. even on about 12k this would save you around 2k a year, that's 2k off the debt if you plough it back into repayments.

Also regarding some of your costs:

1. Property insurance, you may have had to take it out initially with your lender, but I doubt very much you need to stay with them now. Mine is rebuild costs of no more than 250k and 35K contents and I pay around £27/month less if you pay it one go and put it ona cheaper rate. So you could save at least £120 a year there.

2. Do you really need both cars?

3. Phone + internet - can you get a better deal? we are not on the best deal but have homechoice and pay £18/month for tv + 2MB broadband, + £11 BT Rental + £7 for anytime free landline calls = £36/month a similar deal could save you £240 a year

4.Is your car breakdown the most competative? have you tried tesco's or green flag?

Pobby

sorry to pry but what of the country are you in?Just looking at the mortgage repayments.They are pretty big.

beach_3

I work in the NHS (London)and we use loads of temp admin and health care assistant staff. It may be worth him finding out which agencies the local Primary Care Trust use, the councils also use temp staff. This would fill the gap for when the other work is not there.

It does look as if he is going to have to change the industry he works in though because the amount of work he gets is not going to change in the future unless he does.