Worried!

Tats_2

Hello, i'm new to the forum.

Just after a bit of advice and guidance.

My wife has been studying to be a nurse and qualified in November of last year and now has a job. However, during the last 3 years of her studying we've had to live on Credit Cards (to live and feed our 3 kids etc) and coupled with some stupid spending i have racked up a debt of approx £25k spread over differing cards. Some of these cards were 0% ones which will run out over the next few months.

I'm very worried now that i won't be able to make the minmum payments and although i also work i never seem to have enough money to get me through the month. My wife is giving me what she can from her wages each month to go towards paying some of the debt off but it never seems to happen.

I'm constantly having sleepless nights worrying about the debt and numerous arguments with my wife and it's not good for the kids either. We don't go out or anything and haven't had a family holiday for over 5 years!

Both my wife and I agree that we're both rubbish with money.. but i just don't know where to start. Do i go down a DMP route or try to sort something out ourselves!?

I would appreciate some help from thoses that have been in similar situations and what they have done to tackle it...

Thanks,

Tats

chocolates

Hi there and welcome! Like yourself i managed to rack up debts of a similar amount to yourself. I was stressing out and worrying everytime a letter came through the door! After reading through posts on here i decided to go down the dmp route with cccs. I have 11 creditors and they have all stopped interest. Ive been on the dmp now for just over a year and wish i'd done it sooner.
You'll get lots of advice on guidance on here,good luck:)

[Deleted User]

Hi,

A good place to start is with a SOA (Statment of Affairs), detailing all your income and all your expenditure including listing all your debts, the APR's and the minimum payments.

Until you know exactly what is going on with your finances, it will be difficult for you to see what can be done to remedy the situation.

Here's a SOA: http://www.makesenseofcards.com/soacalc.html

Once you have completed it, if you post it here, peple will be able to advise on your situation (just copy and past when complete)

D9

Tats_2

Thanks for the replies.

I will have to look at doing the SOA when i get home, i've done it quickly just but it works out that i have surplus money! (i really don't must i've missed something). Plus i'll need to get hold all the APR's etc..

chocolates - I have been thinking of taking the DMP route with CCCS also. Just need to be sure of everything first.

ElmerFudd

Hi. There's always a solution to these problems. Once you've posted your SOA you should consider starting a daily spending diary. I can't stress enough how much this has helped me focus on where all my money is going. Good luck

supersavershal

As a fellow nurse well done to your wife on qualifying and getting a job.Dont worry there is always a way out of debt.You need to post an SOA on here.Has your wife been paid properly yet, I know it can take some HR a while to sort out whilst waiting for PIN numbers to come through.Could your wife do any bank shifts to get extra money or nights and weekends to bump the unsociable hours pay up?
We have all been there and some of us are still there, you are not on your own.

Tats_2

Yeah glad my wife qualified and now has a job. Its something that she has always wanted to do, as the kids are a little bit older I said go for it otherwise you'll regret not doing it.... wish i hadn't said that now!

Her PIN came through pretty quickly and her pay is sorted. She also does nights and weekends where she can.

When filling in the SOA i'm just including my income right? (because if i go down the DMP/CCCS route it will be just for me). My Wife also has debts which are more or less manageable. We have separate accounts.

[Deleted User]

Tats wrote: »

Yeah glad my wife qualified and now has a job. Its something that she has always wanted to do, as the kids are a little bit older I said go for it otherwise you'll regret not doing it.... wish i hadn't said that now!

Her PIN came through pretty quickly and her pay is sorted. She also does nights and weekends where she can.

When filling in the SOA i'm just including my income right? (because if i go down the DMP/CCCS route it will be just for me). My Wife also has debts which are more or less manageable. We have separate accounts.

If you are just doing your income - be sure to include only half for the things that you share the cost of (eg rent/mortgage, c.tax, utilities, TV licence, home ins. etc) otherside this will skew your results.

D9

Tats_2

Here's my SOA... nearly had second thoughts about posting it, as it's quite embarassing...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2289
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2289

Monthly Expense Details
Mortgage................................ 1189 - Bad 3yr deal 6.7% runs out next year
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 55
Gas..................................... 55
Oil..................................... 0
Water rates............................. 54.51
Telephone (land line)................... 56
Mobile phone............................ 35
TV Licence.............................. Wife pays
Satellite/Cable TV...................... 34.75
Internet Services....................... 20
Groceries etc. ......................... 120
Clothing................................ Wife pays
Petrol/diesel........................... 120
Road tax................................ 12.6
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 10
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. Wife pays
Buildings insurance..................... 36.2
Contents insurance...................... 41.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2107.06


Assets
Cash.................................... 0
House value (Gross)..................... 190388 - zoomla estimate, bought the house for £206k
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 192388


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 193449...(1189).....0
Total secured & HP debts...... 193449....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
VirginMoney....................9637.8....45.6......18.9
Santander......................3459.4....34.59.....0
BarclayCard....................3608.17...81.18.....0
Overdraft Bill acc.............450.......15........0
Overdraft main acc.............3000......38........0
Neighbour loan.................450.......0.........0
Mother-in-law loan.............2500......130.......0
Egg............................2934.3....76.19.....0
Mint...........................902.36....22.34.....0
Tesco..........................2630......53........0
Total unsecured debts..........29572.03..495.9.....-


Monthly Budget Summary
Total monthly income.................... 2,289
Expenses (including HP & secured debts). 2,107.06
Available for debt repayments........... 181.94
Monthly UNsecured debt repayments....... 495.9
Amount short for making debt repayments. -313.96

Personal Balance Sheet Summary
Total assets (things you own)........... 192,388
Total HP & Secured debt................. -193,449
Total Unsecured debt.................... -29,572.03
Net Assets.............................. -30,633.03



Don't want to look at it again for a while....

Tats_2

Forgot to add that My Wife gives me £300 to help out with bills.... so that leaves me with -£13.96 a month... Oh and yes i will have to find out the APRs of the credit cards..

[Deleted User]

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2289 Any way to increase? Overtime? Second job?
Partners monthly income after tax....... 300 - is your wife not now working full-time? Can she not contribute more now?
Total monthly income.................... 2589

Monthly Expense Details
Mortgage................................ 1189 - Bad 3yr deal 6.7% runs out next year
Council tax............................. 150 Are you paying this over 10 months, see if your council will allow you to spread over 12
Electricity............................. 55 ChEck Uswitch to ensure you're on the cheapest tariff for your area (and if not, go through one of the cashback sites to switch - Quidco, onepoll, topcashback)
Gas..................................... 55 as above - often online duel fuel is cheapest tariff
Water rates............................. 54.51
Telephone (land line)................... 56 This is high, you should be able to get home phone and internet for £20pm eg TalkTalk)
Mobile phone............................ 35 If you are stuck in a contract ask to drop a tariff, if/when out of contract look at SIM only or PAYG - some good £10pm deals available
TV Licence.............................. Wife pays
Satellite/Cable TV...................... 34.75 consider freeview until debt free
Internet Services....................... 20 see if combining with home phone will be cheaper
Groceries etc. ......................... 120 For how many people -drop brands, meal plan, batch cook, use cheaper supermarkets eg aldi/lidl
Clothing................................ Wife pays
Petrol/diesel........................... 120 Are all jounrneys necessary?
Road tax................................ 12.6
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 10
Car parking............................. 20
Other child related expenses............ 30 What does this cover? And is it competative?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. Wife pays
Buildings insurance..................... 36.2 Both this and below seem quite high - at renewal see if switching to combined would be cheaper
Contents insurance...................... 41.5 as above
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0 nothing?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2107.06


Assets
Cash.................................... 0 where's the car maintenance, and any other 12 monthly bills money
House value (Gross)..................... 190388 - zoomla estimate, bought the house for £206k
Car(s).................................. 2000
Total Assets............................ 192388


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 193449...(1189).....0
Total secured & HP debts...... 193449....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
VirginMoney....................9637.8....45.6......18.9
Santander......................3459.4....34.59.....0 For all the debts you need to find out the APR's in order to prioritise them
BarclayCard....................3608.17...81.18.....0
Overdraft Bill acc.............450.......15........0
Overdraft main acc.............3000......38........0
Neighbour loan.................450.......0.........0
Mother-in-law loan.............2500......130.......0
Egg............................2934.3....76.19.....0
Mint...........................902.36....22.34.....0
Tesco..........................2630......53........0
Total unsecured debts..........29572.03..495.9.....-


Monthly Budget Summary
Total monthly income.................... 2,289
Expenses (including HP & secured debts). 2,107.06
Available for debt repayments........... 181.94
Monthly UNsecured debt repayments....... 495.9
Amount short for making debt repayments. -13.96 This amount will be easy to find in your SOA, so there's not too much to panic about. However, in order to make any quick inroads you will need to make further cutbacks so as you can pay off more than the minimum amounts, and pay of your debts quicker. I also think that this can be done - with a bit of organisation, cutbacks, and prioritising you can do it.

Personal Balance Sheet Summary
Total assets (things you own)........... 192,388
Total HP & Secured debt................. -193,449
Total Unsecured debt.................... -29,572.03
Net Assets.............................. -30,633.03

Hi,

I have made some comments above, hopefully they'll be of use to you.

Firstly you need to find out the APR's of all your debts.

Then you need to make the cutbacks where possible (ENSURE UTILITIES ARE CHEAPEST TARIFFS, REDUCE MOBILE PHONE, SEE IF YOU CAN SPREAD CTAX PAYMENTS OVER 12 MONTHS, REDUCE OR CUT SALELLITE TV, COMBINE HOME PHONE AND INTERNET IN A LOWER PACKAGE), and then update your SOA.

Once you can do this you'll know how much surplus you have and be able to prioritise overpayments

HTH

D9