I need help, major debt

zippee

Hi, I'm new to MSE and this is my first post, so please forgive me if I'm not posting on the right board etc.

We have around £40,000 worth of debt on credit cards and loans, some of it was due to moving house earlier this year. It's all getting a bit too much and we don't know what to do, I keep thinking about consolidation but I really don't want to do a secured loan, we just seem to be getting further and further in trouble.

I just don't know where to start. Can anyone help please?

Thanks

Little_Miss_Winner

Hiya zippee,

Welcome to mse, yes you are on the right board so please dont worry about it.:T

Firstly what you need to do is prepare a soa (statement of affairs)

List all your incomings.
Then list all your outgoings, EVERYTHING, not just bills and standing order, but haircuts, newspapers, treats, when you have done that, post it on here, then we can see where you at!

Speak soon
pot

zippee

Thanks Pot.

I think below is what you mean, I feel so embarresed about it all it's unbelieveable.

Incomings

2000 H’s Salary a month
116 Child benefit a month
13.00 a week child tax credit


Outgoings

BLACK HORSE Finance £41.67 mth
BT DIRECT DEBITS £40.00 mth
BRGAS-GAS £17.00 mth
BRITISH GAS ELEC £30.00 mth
VIRGIN MONEY Life £20.82 mth
CAHOOT loan £158.85 mth
HOME IN ONE mortgag ppi £35.12 mth
ROYAL SUNALLIANCE house insurance £35.41 mth
TV LICENCE MBP £8.63 mth
DIRECT LINE mortgage £611.00 mth
NW PERSONAL LOAN £258.41mth
AA MEMBERSHIP £15.25mth
SOUTHERN WATER £24.65mth
Council tax £99.00mth
Mint CC £121mth
Natwest CC £121mth
Virgin CC £50mth
NEXT £20mth
Shopping £300mth
Petrol £80 mth
Treats £10 week
EGG CC £20 mth
Tobacco £50 mth


Debt oustanding

Natwest loan £15,763 apr 6.9% 6yrs
Natwest Credit card £5,063 apr 4.9% for life
Cahoot loan £9000 apr 6.3% 6yrs
Black horse finance £2000 I don't know 2 yrs left to run
Mint £5,000 0% for six months due to run out jan07
Egg £1200 apr 18%
Virgin CC £8,500 apr 1.9% due to run out dec06

Does that help?


Let me know if this is wrong.

Thanks again

Tustastic

Zippee, well done for finding this site and asking for help. A very regular poster, southernscouser, explains how to do a full SOA. Good luck!
http://forums.moneysavingexpert.com/showthread.html?t=107280

Sutty

Please put up outstanding balances and APR's where applicable as this helps to prioritise your debt. Don't let it worry you too much. you're in the right place.

zippee

I've added the outstanding above.

Thanks

whatatwit

One to start with, is the shopping.
Have a look on the Old Style board, there are lots of weekly menu planners and some great tips for reducing the cost of shopping without compromising the quality of the food you eat.

I am sure there will be lots more ideas forthcoming to help you along.

THE_LONE_RANGER_4

dont even think of consolidation , just let people on here help you out they are clever bunch and ignore any negative remarks they pop up on here now and again .but ive been there and been clear for a bit now so dont panic take a step back and think what you are doing, dont do anything rash for a short term fix you want to fix this long term

A_Nice_Englishman

I make your total outgoings £2046 and your total income £2168 so you are on the right side (just) but you don't seem to have included any motoring costs except petrol. What about insurance, road tax, repairs and servicing? Nor have you included clothes. I assume 'treats' includes things like birthday and christmas presents?

The main things which look expensive are the tobacco and shopping. There are tips on the 'Old Style Moneysaving' board about saving money on food and I don't need to tell you you really should give up smoking!

I presume your are a 'stay at home mum'? Is there any way you could do some part time work when Dad is home to look after the kids?

tryhard_2

hello and welcome

zippee wrote:

Incomings

2000 H’s Salary a month
116 Child benefit a month
13.00 a week child tax credit
total 2168

Outgoings

BLACK HORSE Finance £41.67 mth
BT DIRECT DEBITS £40.00 mth is this outstyanding arrears? try to reduce this by using 1899/18185 or talk talk
BRGAS-GAS £17.00 mth
BRITISH GAS ELEC £30.00 mth have you shopped for cheapest supplier for gas/elec - use https://www.uswitch.com to compare and switch
VIRGIN MONEY Life £20.82 mth
CAHOOT loan £158.85 mth
HOME IN ONE mortgag ppi £35.12 mth
ROYAL SUNALLIANCE house insurance £35.41 mth
TV LICENCE MBP £8.63 mth
DIRECT LINE mortgage £611.00 mth
NW PERSONAL LOAN £258.41mth
AA MEMBERSHIP £15.25mth
SOUTHERN WATER £24.65mth can you get a water meter?
Council tax £99.00mth
Mint CC £121mth
Natwest CC £121mth
Virgin CC £50mth
NEXT £20mth
Shopping £300mth - how many is this for? if you look at the old style board you can easily reduce this
Petrol £80 mth
Treats £10 week
EGG CC £20 mth
Tobacco £50 mth can this be cut out
total outgoings 1963
balance 2168-1963 = 205
Debt oustanding

Natwest loan £15,763 apr 6.9% 6yrs
Natwest Credit card £5,063 apr 4.9% for life
Cahoot loan £9000 apr 6.3% 6yrs
Black horse finance £2000 I don't know 2 yrs left to run
Mint £5,000 0% for six months due to run out jan07
Egg £1200 apr 18%
Virgin CC £8,500 apr 1.9% due to run out dec06

you should have £205 spare per month or £47.34 per week. what about car maintainence, tax mot etc? smoking is costing you £600 a year - in 2 years you can clear your egg balance, if you stop this.

what are the outstanding balances on your loans/credit cards?

Tustastic

I have found that quitting with Nicotine Replacement Therapy (NRT) is cheaper than smoking - I am buying the gum in Tesco at the moment. Call the NHS on 0800 169 0 169 to find out about stop smoking courses in your area. I had 1to1 sessions with my local pharmacist and that seems to have done the trick.
BTW I have been addicted to cigarettes for decades and I am not judging you (or whoever smokes in your family) AT ALL.:) By the end I was spending £120 a month on smoking.