just getting things off my chest

TOOMUCHWORRY

Hi, I am new here and have been reading the threads with interest.

My situation at the moment is that we owe £22000 in loans and credit cards.
My husband is self employed and is currently unwell - he suffers from cluster headaches/chronic migraine and is now also on anti depressants. In addition to this he has hardly any work so his income is between £500 -£800 per month on a good month.

I work and earn £8500 per year.
We have 1 child at university and one child going to college soon. she doesnt have a part time/sat job as she suffers from fibromyalgia and is in pain much of the time.

We have stopped all spending on credit cards (this was not for luxuries, but for paying bills etc for business) and have 2 cards on long 0% balance transfers and are paying minimum payments. The loan is for £12500 and will be paid off in 5 years.

I am determined to be debt free (bar mortgage, currently on intrest only, no repayment vehicle:( 12 years left). My reason for posting is that I am so worried about all this debt and just needed to put it all down in writing rather than it all going round and round in my head.

Thank you for reading.

[Deleted User]

Hi there, I am no expert in this area, but just wanted to say that I am sure people will be over soon to help you, there are some pretty amazing bods on these boards with a wealth of experience, tea and sympathy.

Sorry to hear about your troubles, I hope things improve soon. Good luck.

TOOMUCHWORRY

Thank you goochie. I feel so stupid sitting here crying and feeling sorry for my self, but I feel stuck and unable to move on. I just waste so much time worrying.

loislane999

Hi toomuch

Like goochie said, there are a lot of caring and knowledgeable people on this forum.

I have to ask - are you claiming any benefits (tax credits, disability benefits i.e. help with travel costs for your daughter etc). I am not an expert but I have a friend who has fybro and she gets help with mobility costs.

Have you done a budget sheet? I am sure one of the other peeps on here will show you the right link to use (or go to the 'income family' link at the top of the page).
this is the start of the journey where you and your family gain control, so glad you have come on here and let us know what you are going through. I am sure that you will start to feel more comfortable with it all soon. x

smartiedriver_2

Hi and welcome. Of course we will assist if we can.

Can I suggest you post your SOA so we can see exactly what comes in and goes out? That way we can make better suggestions.

First suggestion initially is could you increase your income? Could the child at uni (assuming I read it correctly and this child is in full health) get some part time work so you subsidise less?

As previously mentioned, have you claimed all available benefits/tax credits/income support?

Beyond that, we need a bit more info to be able to make any sensible suggestions - but post your SOA and you'll get loads of responses I'm sure.

Good luck.

loislane999

Just seen your last post, toomuch. I think you hit the nail on the head when you said you spend too much time worrying. Getting stressed and worried does not make the debt go anywhere, but it does drain you and puts you at risk of health problems and family strain. this web site has a whole host of stuff that you can do to get on top of things, from budget planning, to using debt support groups (I used Payplan myself). It takes a while to get all of your creditors on side, but it can be done., You do need to be systematic with your paperwork and open every letter that comes through the door. facing these demons and getting them to work with you makes the whole debt much easier to bear. I have found that honesty is the best policy and NEVER be afraid of asking for help. If you cannot pay a bill, let them know straight away. I don't think it is a Capital offence to pay bills late, (well, not yet!), but you do need to keep everybody up to date with your situation.. i have found 95% of my creditors and people who send me bills i may have to pay late totally approachable about the whole thing. If you don't have the money to pay them, then you don't have the money to pay them - they know that, you know that, as long as that is clear between you then you can move forward with them for a long term plan.

Please don't cry any more. I know it seems insurmountable, but you will soon hear from a lot of people who have been in a similar situation to you who are still here and still fighting their corner. Now is the time for doing!
good luck and take care. Hugs to all the family. x

smartiedriver_2

SOA link is here http://www.makesenseofcards.com/soacalc.html

or see sticky at top of the forum

TOOMUCHWORRY

I am having trouble posting my SOA but the calculations show that at present we have a deficit of around -£300.00 per month.

I have have not tried claiming for my daughter as some days are better than others for her but I will give it me a go for the mobility aspect.

Our monthly income is difficult as my husband is self employed and is going through a really bad patch work wise as well as health wise. so you think it might be worthwhile to visit CAB to see if they can advise on what we can claim for. Also I couldnt guarantee his earnings for the purposes of setting up a regular payment for creditors.
My husband is taking the 'head in the sand' approach and talks of 'seeing what happens' and 'something will come up'.
I am reluctant to push him because of his mental state but I can't sit around waiting to 'see what happens' because it's obvious what's going to happen!

I am trying to cut costs where possible and will try to persevere with posting our SOA.

Thanks for your support.

Tixy

If you used the makesenseofcards then to post on here you just need to move the web address at the bottom (otherwise you get a warning that you cannot post links). A £300 shortfall certainly is not sounding great and getting some advice from one of the debt charities is definitely good advice as well as looking into what benefits and financial help you can get.

TOOMUCHWORRY

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 750
Partners monthly income after tax....... 800
Benefits................................ 150
Other income............................ 0
Total monthly income.................... 1700

Monthly Expense Details
Mortgage................................ 88
Secured/HP loan repayments.............. 287
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 141
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 35
Mobile phone............................ 30
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 37
Car Insurance........................... 100
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.5
Pet insurance/vet bills................. 38
Buildings insurance..................... 0
Contents insurance...................... 37
Life assurance ......................... 100
Other insurance......................... 50
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1926.5


Assets
Cash.................................... 0
House value (Gross)..................... 275000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 283000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 154000...(88).......1.09
Secured Debt.................. 22000....(287)......12
Total secured & HP debts...... 176000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................10000.....150.......0
bank loan......................287.......0.........15
Total unsecured debts..........10287.....150.......-


Monthly Budget Summary
Total monthly income.................... 1,700
Expenses (including HP & secured debts). 1,926.5
Available for debt repayments........... -226.5
Monthly UNsecured debt repayments....... 150
Amount short for making debt repayments. -376.5

Personal Balance Sheet Summary
Total assets (things you own)........... 283,000
Total HP & Secured debt................. -176,000
Total Unsecured debt.................... -10,287
Net Assets.............................. 96,713

Tixy

Great - thanks

TOOMUCHWORRY wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2 does 2nd child live at home or away in term time?
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 750 anyway you could increase your income? more hours or a second job?
Partners monthly income after tax....... 800 is this realistically what he is earning after business costs and tax etc?
Benefits................................ 150 should be able to increase this I would imagine - are you getting any tax credits?
Other income............................ 0
Total monthly income.................... 1700

Monthly Expense Details
Mortgage................................ 88
Secured/HP loan repayments.............. 287
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 141 worth doing the 5min online check to see you are in the correct band (you probably are but worth checking)
Electricity............................. 75
Gas..................................... 75 gas & elec both look very high, are you in arrears? have you shopped around recently to see if you can find cheaper tariff or cheaper supplier? can you try to reduce your usage?
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 35
Mobile phone............................ 30
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 this is high for 4people, can you work on reducing this down (some on here manage on £200 for a family of 4 plus pets). Check out the old style board for tips and try the drop a brand challenge or making meal plans for the week ahead before you shop and then only buying what you need for those, perhaps try reducing to £300 to start?.
Clothing................................ 50
Petrol/diesel........................... 200 is this all essential mileage? do you drive efficently?
Road tax................................ 37
Car Insurance........................... 100 do you shop around at renewal time?
Car maintenance (including MOT)......... 0 need to budget something here
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.5
Pet insurance/vet bills................. 38
Buildings insurance..................... 0
Contents insurance...................... 37 do you shop around at renewal for this to find the cheapest?
Life assurance ......................... 100 this looks very high, have you checked what it covers? perhaps shop around and see if you can reduce the cost
Other insurance......................... 50 what is this? again shop around to see if you can get cheaper and check that it covers what you expect.
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1926.5


Assets
Cash.................................... 0
House value (Gross)..................... 275000 could/would you consider downsizing? especially if 1 child has pretty much left home
Shares and bonds........................ 0
Car(s).................................. 8000 are both essential? do you both drive to work?
Other assets............................ 0
Total Assets............................ 283000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 154000...(88).......1.09
Secured Debt.................. 22000....(287)......12is this secured on the house? how did it arise? is it a fixed apr for the whole term?
Total secured & HP debts...... 176000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................10000.....150.......0 is this actually on 0%?
bank loan......................287.......0.........15 what should the repayments be on this? how soon until paid off?
Do you have any overdrafts that you use every month? if so these should also be listed in the debts to get the full picture.
Total unsecured debts..........10287.....150.......-


Monthly Budget Summary
Total monthly income.................... 1,700
Expenses (including HP & secured debts). 1,926.5
Available for debt repayments........... -226.5
Monthly UNsecured debt repayments....... 150
Amount short for making debt repayments. -376.5

Personal Balance Sheet Summary
Total assets (things you own)........... 283,000
Total HP & Secured debt................. -176,000
Total Unsecured debt.................... -10,287
Net Assets.............................. 96,713

A few comments and possible things to look at above. Also perhaps try looking at these links -

Cut your fuel spend by a third http://www.moneysavingexpert.com/travel/cheaper-fuel

Council Tax Rebanding: Lower your band and save £1,000s http://www.moneysavingexpert.com/reclaim/council-tax-bands-change

Supermarket Shopping: Downshift & more, halve weekly bills http://www.moneysavingexpert.com/shopping/cheap-supermarket-shopping

Cheap Gas & Electricity

Cheap Home Insurance

Life Insurance