hi i have had my lightbulb moment and need a great deal of help

taxi73

Hi there and welcome...just a couple of things you say husband is self employed and you are seeing accountant in march..why...accounts are due to be in and paid by 31 jan...you also say husband hasn't earnt much so I don't think he'll be paying much...I only paid 1/2 that this year and am earning more than you put down for OH...please contact inland revenue or accountant asap ...as if his books are due in then it will be £100 fine if not in by end of Jan...sorry for that news

CLAPTON

income is 1,800

spending 1685
leaving 115 for debt repayment

debts 28,781 + 5000 (tax man maybe) and monthly repayment are 685 plus tax man


option;

a. no way you can do nothing as your debts are increasing by 500 per month

b. can you increase income by a significant amount? combined with drastic cuts in spending maybe paying the debts is possible?

c. remortgage... you would need to get a loan of at least 30,000 which would require about 250-350 per month to fund which you cannot afford. and if it was secured on the house and you defaulted you would lose the house.
this might be just posssible if you combined this with a significant increase in income

d. a DMP : with you available 'spare' money of 115 this would take ..assuming all interest frozen over 20 years to repay.

e. sell the house and raise about 20k this would reduce debt to about 10k which would be would require a surplus of about 200 a month. this would depend upon how much rent you had to pay.

f. bankruptcy : you would lose the house but your debt would be clear.

before going any further you really need to think about the feasibily of increasing income... most of the alternatives depend upon what you consider feasible.

thepinkladez_2

thank you all so much for all your advice.
just sat down and had a big cry with hubby, and then vowed to tackle this together.
ok firstly i cant figure out really how we can up our income hubby works 60+ hrs a week bringing home average £1600 pcm this does not include his tax, ni etc so i think it would be bout 1300. this is why hes going back to a normal job as he will earn about 1300 but pay tax national ins and have holiday sick pay etc. i already work 3 full days a week plus 2 in every 3 saturdays o i dont feel i can take on any more. ( i also go to college 2 evenings!).

our childcare is £80 we pay my hubbys sis £20 for 1 day a week (she is a student!) the other days her care is split between parents. hubby says he will speak to his sister and see if we can pay her £10 a day as that day i only work 6 hrs. just realised i get £10 for 6 hrs work!

will cut down on our shopping budget as best i can hopefully will attempt to potty train our daughter (sorry if i made her sound like a new born she is actually 2!) that will cut nappy costs as they cost us a fourtune as we can only use pampers and have to change every couple of hours as dd has very allergic skin.tbh i think if i really lookd at our shopping we probably would only need half of what we use!

as to sky and bt bill i will look into these as both me and hubby were shocked at the cost.ntl offer £30 for phone,internet and cable. and or we will look into freeview.

and our mobile bill i didnt think was too bad we spend £30 a month jointly and get £60 worth of credit, we used to be on payg but spent more that way than we do now. hubby HAS to use his mob at work.

i will also look into cccs as we need help urgently. we have both agreed the last thing we want to do is lose our home.
thank you all once again.
i will keep you all posted so i can keep us on the path to becoming debt free.

thepinkladez_2

we have a canc app for cccs tomorrow arvo the nice lady seemed impressed id done an soa on here (think thats why i got an early app!- was getting one in 2 wks otherwise!)

hubby has spoken to his work about tax issues etc and his only nice boss has seemed to have taken him under his wing and helped him out with all the tax bits etc. also said he will talk to big big bosses about a pay rise or ways he can get more money etc hubby has finally smiled:rotfl:

havent managed to do anything else yet but i will i am determined to do this!:T ( giving myself a cheer!)

does anyone know what cccs will do tomorrow other than go through my soa and realise we cant afford to pay debts?!
will they be nice?bit scared that i will have someone horrible!
what will they suggest?
i keep seeing ivas and dmp and things but have no idea what these are and how they work etc.

any help as usual is so very greatly appreciated.

Yorkielass

Well done on your lightbulb moment and for posting on here.

Things like cenceling sky might be a blow in the short term but it'll be worth it in the long term - that £516 a year could make a real difference to your debts.

We recently moved and decided to cancel our sky (we were on the £21 a month package) as we couldn't justify that amount a month at the moment and when we sat down and worked out what channels we actually watched most of them (e.g. more4, bbc3) are on freeview anyway. 6 weeks on I do miss it sometimes but definitely not enough to justify £21 a month.

If your OH has to use his mobile at work is this for work calls, if so does he get these re-imbursed? or does he use it to call you from work?

thepinkladez_2

hi no he doesnt get reimbersed as he is self employed but i think he can claim back something when he does his tax??not sure!

yes i think we will canc sky as it is a lot a year!

Smashing

Yes CCCS will be nice - they're there because they want to help!

They'll go through your SOA with you to check you've covered essentials, daily expenses and the priority debts - once they know how much you've go to chuck at your debts they can start negotiating with your creditors.

There's lots of info and some case studies to look at on their website.

Try not to worry - this is when things get moving and you can come away with a plan to ensure you are well on your way to becoming debt-free.

thepinkladez_2

thank you thats fab!didnt even look at their web site just looked at enough to locate the phone number! i am starting to look forward to it now feels like we are finally getting somewhere!

Sallys_Savings

Good luck tomorrow pinkladez I'm sure they'll be lots of people off here thinking about you.

Please try not to worry about it, they're there to help you....you'll be fine

meggie-lizzie

Hi have just read your thread, just wanted to say hope all goes well tomorrow. Thing are seldom as dark as they seem when you are facing the unknown, hopefully you can post tomorrow telling everyone you can see the light at the end of the tunnel. !!{Hugs}} Meggie