Finally asking for help....

lizziep

Hi

I'm new on here after a friend of mine basically told me I had to have a look (although I've been getting the MSE emails for a couple of years now).

Basically I owe in the region of £5K - this is the amount of money that my wonderful Mum has given me to pay off two credit cards and my overdraft. I'm going to be setting up a standing order to pay my mum off.

That's not the real problem however. The reason I'm in debt is that following a horrendously tough five years (long story but involves redundancy, Cancer, and walking out of a job due to bullying) I'm in a situation where I had to take the first job I was offered (obviously given the current climate I wasn't going to turn any job down) and whilst it's a higher salary than the one I was in it's further away from home - it's only 20 miles each way but it means that I'm spending £200 a month on petrol. I've done a budget planner and at the moment my outgoings are more than my income by about £100....that's before I allow for things like food, haircuts etc. I'm tied into paying for a gym (and believe me I've had a number of full on arguments with them over the last few weeks begging them to cancel my membership as I can't afford it but they refuse to). At the moment I can't see anyway of avoiding using a credit card - and then I end up paying interest and it starts spiralling out of control again.

I am looking for a new job - nearer to home and, with any luck, on a much better salary - however at the moment it's pretty tough out there. I applied for one job which had 500 applicants.....oh, the other problem is that the current job is a fixed term contract and it is not going to be extended. So, I face the possibility that in the middle of May I will once again be out of work....

sorry for such a long post - I'm at my wits end and at the moment I'm pretty scared about the future.....

Liz

Tixy

Hi Liz and well done for asking for help. I understand why you wanted to take on this job but obviously getting further into debt each month isn't sustainable long term.

First off are there any changes you can make to reduce your commuting costs? Anyone you could car share with occasionally? any public transport that might work out cheaper? have you read the MSE article on reducing petrol costs? Martin suggests savings of up to 30% is possible - I think around 15% is more realistic for most people but still every saving helps.

Aside from the travel costs its difficult to advise without seeing what else you outgoings are. Could you post up a statement of affairs so people can see where else your essential spending is going and if there is anywhere we can think of you can make savings/get things cheaper.

Have you asked the gym if you can suspend the membership for 6months? I know some chains allow this.

lizziep

my SOA - I'm waiting for my annual mortgage statement to confirm how much is outstanding and my interest rate. thanks in advance for any and all advice cos at the moment I can't see anyway of getting out of this situation....

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1130
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1130

Monthly Expense Details
Mortgage................................ 578 (includes life assurance and payment protection)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 71
Electricity............................. 39 (combined electricity and gas)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 8
Telephone (land line)................... 50 (combined landline, cable TV and broadband)
Mobile phone............................ 40 (contract is up for negotiation/cancellation beginning of May)
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 10.5
Car Insurance........................... 32.15
Car maintenance (including MOT)......... 20.83
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 33.67 (includes a necessary visit to the Osteo every couple of months)
Pet insurance/vet bills................. 18.99 (can't now be cancelled as I'm claiming on it)
Buildings insurance..................... 62.48 (combined buildings and contents)
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Gym..................................... 30 (currently attempting to cancel without much success)

Total monthly expenses.................. 1356.99

Assets
Cash.................................... 0
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 110000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(578)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
repayment to Mum...............6000......20........0
Total unsecured debts..........6000......20........-

Monthly Budget Summary
Total monthly income.................... 1,130
Expenses (including HP & secured debts). 1,356.99
Available for debt repayments........... -226.99
Monthly UNsecured debt repayments....... 20
Amount short for making debt repayments. -246.99

Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,000
Net Assets.............................. 104,000

McKneff

Building and contents insurance is horrendously high.
Im with the Coop and only pay about £240 per year, 3 bed semi, fully covered, accidental damage, items away from the home and legal cover, you really need to shop around when it is due. be wary of this one auto renewing, lots are.

Fuel costs are high, may sound silly but have you costed out bus fares.

Do you have a spare room for a lodger. It might help with costs.

[Deleted User]

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1130
Total monthly income.................... 1130 (anyway to increase? Overtime? Second job? Take in a lodger?)

Monthly Expense Details
Mortgage................................ 578 (includes life assurance and payment protection) (Not sure if this is an option or not - but could you extend the term of the mortgage to reduce monthly payments?)
Council tax............................. 71 (Are you paying over 10 months? Can you spread over 12 months, or put the £142 from your Ctax free months towards debt)
Electricity............................. 39 (combined electricity and gas)
Water rates............................. 8
Telephone (land line)................... 50 (combined landline, cable TV and broadband) (You could reduce package - check that you use all you recieve, but really you could cancel all TV and get internet and phone for approx £20/month - check other companies that operate in your area - Sky, Virgin, Talk,Talk, BT etc)
Mobile phone............................ 40 (contract is up for negotiation/cancellation beginning of May) - Quite high, especially given you have a landline too, When up look at SIM only contracts (Can get good deal for £10/month depending on usgae) or consider PAYG
TV Licence.............................. 12.37
Groceries etc. ......................... 150 (Could shave a little off this - drop brands, meal plan, batch cook - try cheaper supermarkets too (lidl/Aldi) - look at the old style board for hints and tips here)
Clothing................................ 0 nothing ever?
Petrol/diesel........................... 200 (Are all journey's essential?)
Road tax................................ 10.5
Car Insurance........................... 32.15
Car maintenance (including MOT)......... 20.83
Medical (prescriptions, dentist etc).... 33.67 (includes a necessary visit to the Osteo every couple of months)
Pet insurance/vet bills................. 18.99 (can't now be cancelled as I'm claiming on it)
Buildings insurance..................... 62.48 (combined buildings and contents) - very high, especially given value of your house. Use comparison sites when you can renew to hunt for a better deal, and check cashback sites - Quidco, Topcashback, Onepoll)
Presents (birthday, christmas etc)...... 0 Nothing ever?
Haircuts................................ 0 Nothng ever?
Entertainment........................... 0 Nothing ever?
Gym..................................... 30 (currently attempting to cancel without much success) - Do try to cancel, or switch to cheaper package if you can't cancel.

Total monthly expenses.................. 1356.99

Assets
House value (Gross)..................... 105000
Car(s).................................. 5000 (Could you downgrade your car for a cheaper one?)
Total Assets............................ 110000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(578)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
repayment to Mum...............6000......20........0
Total unsecured debts..........6000......20........-

Monthly Budget Summary
Total monthly income.................... 1,130
Expenses (including HP & secured debts). 1,356.99
Available for debt repayments........... -226.99
Monthly UNsecured debt repayments....... 20
Amount short for making debt repayments. -246.99

Personal Balance Sheet Summary
Total assets (things you own)........... 110,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,000
Net Assets.............................. 104,000

Hi,
I have made some comments above, hopefully some of them will be of use to you.

D9

pennypusher

Hi I think you could cut your groceries down to £100 per month if you try. Also you could get a package for your phone and broadband without cable for less than £25. If you look on a comparison site i'm sure you will be able to get your contents and home insurance for less.

Ring your mobile company and say you can't afford to pay and ask them to lower your tariff.

Your mortgage costs are high compared to your income. Can you increase your income by taking a second job or rent out a spare room to a friend. Can you car share? Unless you can increase your income or cut your costs you will increase your debt each month. If your mortgage is repayment can you go interest only for a while?

Tixy

Mortgage - life insurance and payment protection is likely to be much cheaper if bought independent to your mortgage (typically people can get for half the price the mortgage co would charge)

House insurance - should be able to get for around 20 per month based on your house value. So saving 40 or so a month

Can you cancel paid TV, switch to freeview - should be able to get landline & internet for around 25 so saving 25 a month

Try to reduce groceries - some can manage on as little as 75 or so a month. If you can cut to 100 thats a 50 saving.

A lodger might be another option that would make your finances more viable, plus any savings you can make on the fuel by driving more efficiently as mentioned yesterday. This article is here - http://www.moneysavingexpert.com/travel/cheaper-fuel

Clarie_2

Hiya,
I hope I haven't missed it but I can't see benefit income anywhere? If you are working full time then there's a possibility you are eligible for working tax credit. direct.gov have a calculator for working out if you are eligible. And maybe check out housing benefit/ council tax benefit for help with mortgage and tax - it's a long shot but could be worth it.

Clarie

Skint_Catt

Just out of interest does anyone know what would happen if you just cancelled the DD to the gym?

:hello: Hi Liz :hello:

maganan

Skint_Catt wrote: »

Just out of interest does anyone know what would happen if you just cancelled the DD to the gym?

:hello: Hi Liz :hello:

hi when I just cancelled my DD with E they wrote to me told me I needed to give 3 mths notice I argued I'd been there since it opened and the let me go with jus paying 1 mth................worth a try!

good luck x

ps I do know people who've got out with a drs note.............

lizziep

thanks for all the comments - sorry I've not replied earlier.

okay - sadly I can't increase the term on my mortgage - as it is I'm not due to end paying it until I reach the age of 66 and my lender simply won't increase it any further which I guess is fair enough.

Reducing fuel costs - at the moment I drive a total of 170 miles just going to and from work (17 miles each way) - this is just one of the reasons I want a job closer to home. I've thought about car sharing, but due to the fact that I'm on a rotational shift system (which crazily isn't necessarily consistant through an individual week) then it could only be with someone who is working the exact same shift pattern which doesn't seem to ever happen. I'll only be there till middle of May when my contract ends.

Increasing income - again due to my shift system getting a second job isn't really an option unfortunately - I'm either getting up at 5.30am (so really need to be in bed no later than 10) or not getting home till nearly 7pm....

Decreasing outgoings...sadly, the cat expenses have now ceased as of yesterday, the insurance cover will be cancelled as soon as the most recent claim is settled...I'm sure I don't need to say anymore than that....:(

Benefits - I've looked into claiming Working Tax Credit and I'm simply not eligible.

Council Tax - hadn't thought of asking if I can pay over 12 months - in fact I've never heard of anyone doing that. I'm going to contact the Council when I get my next year's statement and see if I can do that....

my car insurance is coming up for renewal next month so I'll be looking for a comparison then.

My mobile contract is up for renewal in May - I'm already looking at what sort of deal I can get with Virgin which is who I get my cable/landline/internet with.....

I've discovered that my Gym membership is actually being paid by SO not DD (thanks to the finance company themselves c'ing up....) - a friend of mine who's currently going through a lot of court action (not financial) has developed a VERY high level of knowledge about court procedures and she's said that if I were to simply cancel, then it is highly unlikely that the company would take me to court - and that if they did then any judge would simply throw it out as a waste of time. Not sure if I'm brave enough to do that however.....

Thanks again for all the comments

Liz