Need a kick off someone!!!

Tink_04

Ok i should know better but i dont and its time to ask for help (again) i need some advice on how to get out of this situation once and for all!!!!

I'll fill you in on my situation im 25 and live with my dh and 1yr old dd we both had some debt before buying out house and thought we could manage with it - however we came accross some issues early on i lost my job - then took a lower paid job so we were struggling a lot - the house needed a lot of roof repairs (another loan) the car failed its MOT (credit card) and then i discovered i was pregnant. We were living quite MS but with a baby on the way the debts took a back seat and now im ready to start again i want to be able to have a 5 year plan which involves moving to a bigger house and having another baby with out the debt hanging over us!!!

Now for the shameful part!!! i dont actually know how much i owe any more xmas has killed us! it was so sad as me and DH didnt buy gifts for each other but having such big family's it was such an expensive time and i just dont want to do it any more or have this awful debt hanging over us i want to know how to be a thrifty mum and wife but also how to start with the mass papers off my debt!!! any advice or comments will be appreciated sorry for the long post but didnt know where to come for advice!!!

glittermonster

Hi! You've taken the first step! Admitting it and mire importantly wanting to make that change.

You need to do a SOA - link in thread as a sticky and find your paperwork and work put your debts.

Share it here and people will help.

DreamerHelen

Hi There

Firstly, don't panic!! Calm down and take a deep deep breath.

Secondly, post up an SOA (Statement of Affairs) - I think the Link is in a Thread at the top of the Page and that will show us what your Incomings and Outgoings are and we can see if we can save you some money.

I'm not sure what to do if you don't know how much you owe or who your Debts are with but I'm sure some kind person will be along soon to tell you about that part - I think you can look at your Credit File for that, but don't quote me on that and wait for a wiser person to advise!!

I know it is a big worry...believe me I do....But just remember that Martin has NEVER found a Debt that can't be sorted out sooner or later....so it CAN be dealt with...

I would advise that you never ever deal with your Creditors by Phone as they often engage in bully tactics and try to force you to make payments that you definitely can't afford.

Have a look at CCCS (Consumer Credit Counselling Service) and PayPlan...you don't have to commit to anything just yet but at least you can have a look at what they offer.

If you have Debts with your Current Bank then have a look into opening a New Account with a Bank that you don't owe money to...that way your Wages will go straight into that bank and nothing will come out for an Overdraft or anything that you don't know about...

I'm sure someone will be along shortly to give you some more advice...but I hope this has helped a bit....

And lastly..you are NOT alone...there are thousands upon thousands of us that have huge big Debts...It IS solvable...I promise you hun.

I'll try to look in every so often to see how you're doing...

Take it easy and try to breathe...

GeorgieFTB

OK, well done for posting!

Go and gather up all of the paperwork you can find, open all the statements/bills hanging around, we have all done it no shame as long as you promise yourself to open everything, even the scary letters!

Then try to fill out a SOA as accurately as possible, www.makesenseofcards.com. Come back post the link and many people will tell you how you can save on your expenses and pull yourselves out of this!!!

Good luck!

Tixy

Hi and welcome

Have you kept all the paperwork and letters that have come through regarding your debts? I think the first thing is to take a deep breath (and a cup of tea or 2) and to sort through all the post putting it into a different pile for each debt. Then if you can put the letters/statements in date order with the most recent post at the top. Its not going to be pleasent reading but once you know how much you owe then you can really start to face it and tackle it.

Once you have done all that write out a list of your debts with the balance and the interest rates.

Once armed with that information its time to write out a statement of affairs - which is a income & expendiute account to show how much money you have left after living costs to put towards your debt repayments - take your time over doing this to see that you have included all your income and all your costs - we use this template/calculator here - http://www.makesenseofcards.com/soacalc.html

Now at that stage you'll really be making some progress the scary bit then is to post your statement of affairs on here. That way people will be able to help offer you support and also offer advice on how you can save money, if there are areas you can cutback on or become more thrifty at and how you can tackle your debts.

Don't feel you have to get this all completed in a day. If needs be just sort out the piles first and then go and do something completely different (take DD for a walk or something?). Whatever works for you but try not to feel overwhelmed, you can tackle your debts and people on here will support you.

Good luck!

Tink_04

Ok im going to do this - i mite need to wait till DH comes home from work to do some of it - give me and hour or several and i will post it up (or what i have) Thanks everyone i feel like i can face the paper work if its not just me looking at it!!!

GeorgieFTB

The best way to takle it is just to take small steps...

Gather paperwork, cup of tea...
Open letters, cup of tea...
Sort letters, cup of tea...
Actually read letters, cup of tea/stiff drink, visit to the loo!
Start categorising spends, cup of tea, another visit to the loo...

You get the picture, maybe not so many cups of tea, break it up using whatever will take your mind off it, tea, small people that have no concept of money except that it will buy sweets! The baby should be a great distraction for a little while.

Tink_04

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 560
Partners monthly income after tax....... 950
Benefits................................ 550
Other income............................ 0
Total monthly income.................... 2060

Monthly Expense Details
Mortgage................................ 458
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 37
Gas..................................... 47
Oil..................................... 0
Water rates............................. 26.88
Telephone (land line)................... 11
Mobile phone............................ 42
TV Licence.............................. 12
Satellite/Cable TV...................... 55
Internet Services....................... 0
Groceries etc. ......................... 125
Clothing................................ 5
Petrol/diesel........................... 70
Road tax................................ 2.9
Car Insurance........................... 48.85
Car maintenance (including MOT)......... 7
Car parking............................. 0
Other travel............................ 44
Childcare/nursery....................... 449.15
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 9
Buildings insurance..................... 30.12
Contents insurance...................... 0
Life assurance ......................... 35
Other insurance......................... 9
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 0
Total monthly expenses.................. 1655.9


Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 91500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(458)......0
Total secured & HP debts...... 97000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
egg............................560.......15........0
halifax OD.....................490.......15........0
Natwest CC.....................980.......50........0
Halifax........................5000......160.......0
HSBC loan......................2000......100.......0
Total unsecured debts..........9030......340.......-


Monthly Budget Summary
Total monthly income.................... 2,060
Expenses (including HP & secured debts). 1,655.9
Available for debt repayments........... 404.1
Monthly UNsecured debt repayments....... 340
Amount left after debt repayments....... 64.1

Personal Balance Sheet Summary
Total assets (things you own)........... 91,500
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -9,030
Net Assets.............................. -14,530

Tink_04

Ok not sure how correct that SOA is as i dont have a lot of paper work so going to have to get some copy stuff sent out or did in the other cupboard for some more stuff but that is what i have so far!!!! i dont actually understand any of what ive just posted up but any comments will be great!

Tixy

Hi Tink and well done for making that start.

As to understanding it - well so far it seems to be showing that you should be able to manage your minimum debt repayments without using more credit and still have a further £64 spare a month (ideally to make additional repayments).
Now it sounds like that hasn't been the case so far (which is usually the same for everyone when they first work it out) so I'll go through and see if I can spot costs you perhaps haven't remembered to include and perhaps also areas you might be able to look and see if you can reduce the cost.

Tink_04 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 560
Partners monthly income after tax....... 950
Benefits................................ 550 have you checked you are getting all you can? working tax credits, child credits etc. There is a website which you use for a check - http://www.turn2us.org.uk/benefits_search.aspx
Other income............................ 0
Total monthly income.................... 2060 Can either of you increase your hours or work any overtime at all?

Monthly Expense Details
Mortgage................................ 458
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 37
Gas..................................... 47 have you shopped around recently to see if you can get a cheaper supplier for gas & elec? or a cheaper tariff? its worth checking every 6months or so (there is a guide to find the cheapest deals and earn cashback in the Utilities section on here)
Oil..................................... 0
Water rates............................. 26.88
Telephone (land line)................... 11
Mobile phone............................ 42
TV Licence.............................. 12
Satellite/Cable TV...................... 55 Can you reduce your package down at all? Does this include broadband?
Internet Services....................... 0
Groceries etc. ......................... 125
Clothing................................ 5 Do you think you can stick to just £60 a year between the 3 of you (great if you can)
Petrol/diesel........................... 70
Road tax................................ 2.9
Car Insurance........................... 48.85 do you shop around at renewal time?
Car maintenance (including MOT)......... 7 this seems low, remember to estimate for servicing, MOT and new tyres etc (plus and repair costs etc like when it failed its MOT last year). If you work out the annual cost you spent last year then divide by 12 that should give you a figure to put in here.
Car parking............................. 0
Other travel............................ 44
Childcare/nursery....................... 449.15 This seems high compared to your salary. Could you reduce the hours she goes at all? Do either of you get childcare vouchers from work in lieu of salary (it saves tax). If not see if either of your employers run the scheme.
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 9
Buildings insurance..................... 30.12 Shop around at renewal, should be able to get B&C bit cheaper than this I would think.
Contents insurance...................... 0
Life assurance ......................... 35 Have you checked if this is competative recently? it doesn't look very high but worth checking it each year in case you can save.
Other insurance......................... 9
Presents (birthday, christmas etc)...... 20 This is £240 per year - does that feel about right for birthdays & christmas over the whole year (especially with having large families).
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 10
Emergency fund.......................... 0
Total monthly expenses.................. 1655.9


Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 91500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(458)......0
Total secured & HP debts...... 97000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
egg............................560.......15........0
halifax OD.....................490.......15........0
Natwest CC.....................980.......50........0
Halifax........................5000......160.......0
HSBC loan......................2000......100.......0
Total unsecured debts..........9030......340.......-


Monthly Budget Summary
Total monthly income.................... 2,060
Expenses (including HP & secured debts). 1,655.9
Available for debt repayments........... 404.1
Monthly UNsecured debt repayments....... 340
Amount left after debt repayments....... 64.1

Personal Balance Sheet Summary
Total assets (things you own)........... 91,500
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -9,030
Net Assets.............................. -14,530

Just a few areas to think about above. Do find out the APRs so you can work out the best order to tackle your debts (most expensive first).

Seeing as you mentioned buying presents for a lot of people at xmas a thing some people on here do is try to earn vouchers over the whole year to spend on xmas presents. You can earn these by joining up to survey sites and review sites and whilst each doesn't pay a lot they don't take long to do and if you save them for a whole year it can start to make a difference - should be some threads on the Up Your Income board with some suggestions of which sites to try.

Another thing that might help you out is if you start keeping a spending diary for a couple of months where you write down everything you spend (even down to the odd 50p). Then you can look back and see if there are any areas you underestimated on your expenses and it might also help you reduce spending.

Hope some of these ideas might help.
Tixy

dancingfairy

hopefully you are due some months free of paying council tax? if so it will get your debt busting off to a good start. without interest rates its difficult to say what to pay first but egg has a small balance so may be worth being your first target to get rid of-pay minimums on everything else though. when it is clear they might temp you with a special offer which might be cheaper than some of the other debts but that is for the future.
i thibnk i would set up a bank account and start saving for next christmas - maybe aim for part cash to pay for it and part vouchers to buy the rest?
df