SOA - Please have a look.

Malky

backinbusiness wrote: »

Hello

I agree with the above poster. Your insurance costs are quite high.

Secondly, the present budget is a bit steep - you need to cut that in the meantime if you can.

Thirdly, with only one adult working do you really need 2 cars? Is the second adult seeking employment?

And finally - what has driven your debts - has there been a change in circumstance, or is it long-term overspending?

Having been through this myself I think this is perhaps the most important thing to consider, otherwise one is in danger of racking up debt all over again.

Really don't wish to pry, but the more informed we are, the better we are able to help.

Well done for posting, and good luck

bib

ps - do the benefits of the bank account equate to £25/month? If not, ditch. That's £300 pa

I'm with backinbusiness. You need to look into how you got to £22K worth of debt in the first place.
While we can advise on cut backs, you need a major change in spending habits in order for it to make it worthwhile. Another thing to look at long term is your mortgage. It looks like you are on interest only but you are only paying £66 per month in endowments to cover. Once you get your debt down to a more manageable level, you may want to consider going onto a repayment mortgage.
Do you have anything you can sell? Having taken out £16K in loans, there must be something to show for it that you perhaps no longer need?

Superbiatch

How come you have two cars if you don't drive? :question:

lita

Malky wrote: »

I'm with backinbusiness. You need to look into how you got to £22K worth of debt in the first place.
While we can advise on cut backs, you need a major change in spending habits in order for it to make it worthwhile. Another thing to look at long term is your mortgage. It looks like you are on interest only but you are only paying £66 per month in endowments to cover. Once you get your debt down to a more manageable level, you may want to consider going onto a repayment mortgage.
Do you have anything you can sell? Having taken out £16K in loans, there must be something to show for it that you perhaps no longer need?

Please don't shout at me when I say this....:o We got the loans to pay off our credit cards but then we've ended up short of actual cash so have spent a bit on the credit cards again. We (I!) are in full control of our spending now ie. there is to be none!!!
I really don't understand the mortgage process (it confuses me majorly) so I have to leave that to OH to sort.

lita

Superbiatch wrote: »

How come you have two cars if you don't drive? :question:

We had a car and then when the baby came along we bought an 8 seater caravelle so that we could fit in 2 adults, 3 kids, 1 dog and all the rubbish that goes with them! (We are/were avid campers so the room was useful for camping gear).

Superbiatch

lita wrote: »

We had a car and then when the baby came along we bought an 8 seater caravelle so that we could fit in 2 adults, 3 kids, 1 dog and all the rubbish that goes with them! (We are/were avid campers so the room was useful for camping gear).

Now I see (being an avid camper myself ). Can you manage with just the one?

RAS

I think we had worked that out.

lita

RAS wrote: »

I think we had worked that out.

Worked what out sorry?

lita

Superbiatch wrote: »

Now I see (being an avid camper myself ). Can you manage with just the one?

Yeah, we're trying to sell the car at the moment.

Superbiatch

lita wrote: »

Please don't shout at me when I say this....:o We got the loans to pay off our credit cards but then we've ended up short of actual cash so have spent a bit on the credit cards again. We (I!) are in full control of our spending now ie. there is to be none!!!
I really don't understand the mortgage process (it confuses me majorly) so I have to leave that to OH to sort.

Back to the comment about hubby sorting mortgage, you need to get more savvy so you have a better understanding. I think what the poster was pointing out you will have a big shortfall when your mortgage finishes, as your endowments probably won't cover what is owed. By changing to a repayment mortgage once you find yourself in a better financial position, you will be paying the capital and the interest.

lita

Superbiatch wrote: »

Back to the comment about hubby sorting mortgage, you need to get more savvy so you have a better understanding. I think what the poster was pointing out you will have a big shortfall when your mortgage finishes, as your endowments probably won't cover what is owed. By changing to a repayment mortgage once you find yourself in a better financial position, you will be paying the capital and the interest.

Oh right!! I just get confused because the main mortgage payment goes into 4 sub accounts (I think that's what they're called) and then there's the 2 endowments too. The 9.58 finishes next year and the 57.10 finishes in 2022. He has tried explaining to me on numerous occasions but I just really don't understand how it all works.