Help problem with debts!

moyarowland

Right I have a problen with debt - there i have admitted it and now i need to work out what the heck to do about it all.

These are my debts
1) 10k unsecurred loan from NRAM - been passed onto Allied International debt management - currntly being paid abt £10 a month - want to up to £100. Payments should be £178
2) 8k on capital one card - paying minimum repayments each month at the moment £145
3) 4K on marks and spencers card - paying minumum repayments each month. £160
4) £250 debt on natwest card - again minumum payments. £30
5) overdrafts £2000 - paying interest on these each month. £50
6) 30k secured loan on the house with hubby - £304 payments a month
7) 40k mortgage on the house £340 payments a month

Outgoings on debts each month:

other outgoings:
Sky - £47
household insurance - £27.11
electricity and gas £74
debt repayment for my other half £50 a month (he has a CCJ for about £2k on an old car)
tv licence - 12.12
nursery fees - £560
health plan payments 16.90
mobile phone - £13
water £17
council tax £95


Income:
wage (take home) £1180
expenses claim - variable but about £40 a month minumum (we get a bonus pay when out on site)
'payment' from hubby £800

total incomings £2020

total outgoings: £1846.13

so technically i have £200 extra each month but I have to pay for things like fuel with that. I am lucky that my husband covers food and car insurance but i have all the household bills. He is self employed - in good times he has cash to spare - in bad times not.

what i am wondering is how to reduce all of the debts?

technically we have £120k equity in the house and i would very much like to keep the house obviously (with 2 kids).
is it best to remortage the house - and wipe clean all the debts (and cut up my credit cards)?
also if i did remortgage - one debt (NRAM) is in default - would this mean i cannot get a mortgage?
also would i have to remortgage in both mine and my husbands name - he married me a number of years after i bought the house - happy to do so but he has a CCJ aswell (2k) and would this affect the application aswell?

my husband lost his father earlier this year and his monther has terminal cancer - we know she will not last a year at tops and are bracing ourselves for this to happen. She has already said when she goes we can clear all our debts and buy a new house - she owns a £300k house clear of mortgage - but obviously we do not want this to happen and i am not tryign to see this as a way to clear the debts (although hubby has already said that obviously we will do - his words not mine).

help please?
I have debts and i want to get rid of them.
i am selling loads of stuff on ebay but with 2 rapidly growing kids (1 and 3) i sell their clothes and then have to get the next size up cheapily so most of it goes back onto them iyswim).

I am terrible at frittering money and i have to stop this and i am doing so.

HELP!

Tixy

Hi Moya

I would suggest you might want to redo your income and expenditure using the SoA calculator here - and make sure you include everything you pay out, so include petrol, car expenses etc etc.
In fact it often is easier to see the full extent if you include all your household expenditure and all your household income so you can see how much you have spare or short each month.
This is the calculator we use http://www.makesenseofcards.com/soacalc.html

If you find you fritter away money then doing a really detailed spending diary for a couple of months is a good idea - making sure you write down all those little spends that don't seem much but really add up over the month.

I wouldn't go for a remortgage as turning unsecured debts into secured debts puts your house at a much greater risk, especially if your circumstances change eg one of you loses your income or can't work. The default would probably affect how good a rate you could get, and certainly OHs CCJ would make it more difficult.

MrWillyWonka

I notice you are paying a hefty amount on nursery fees. Are there any alternatives to this as this is a significant chunk of your income. In addition changing from Sky to FreeSat will give you extra cash and you may potentially be able to get your gas/electricity down too.

As Tixy suggested, get you SOA listed as it will give a clearer picture.

moyarowland

MrWillyWonka wrote: »

I notice you are paying a hefty amount on nursery fees. Are there any alternatives to this as this is a significant chunk of your income. In addition changing from Sky to FreeSat will give you extra cash and you may potentially be able to get your gas/electricity down too.

As Tixy suggested, get you SOA listed as it will give a clearer picture.

i wish i could reduce the nursery fees - we have no family or friends who would be able to have them - nearest family is very ill with terminal cancer - its also one of the cheapest nurseries around adn one of the best so i would rather leave them in - they are only in 2 days and 3 ams a week and hubby has them the rest of the time which is killing him with working nights.
gas and elec - cannot reduce them anymore - just re did that a couple of months ago- with 2 kids under 4 and a dad that works from home thats why its a bit higher than normal.
did think about sky - but its a package deal with fast broadband, telephone and tv so not sure what we could get it down to.

will do a SOA just not had a chance!

savingholmes

moyarowland wrote: »

Right I have a problen with debt - there i have admitted it and now i need to work out what the heck to do about it all.

well done - always good to make a start

These are my debts
1) 10k unsecurred loan from NRAM - been passed onto Allied International debt management - currntly being paid abt £10 a month - want to up to £100. Payments should be £178 - this would worry me
2) 8k on capital one card - paying minimum repayments each month at the moment £145
3) 4K on marks and spencers card - paying minumum repayments each month. £160
4) £250 debt on natwest card - again minumum payments. £30 I would be tempted to try and resolve this just to give yourselves a morale boost of getting rid of one of your debts
5) overdrafts £2000 - paying interest on these each month. £50
6) 30k secured loan on the house with hubby - £304 payments a month priority as secured
7) 40k mortgage on the house £340 payments a month priority as secured

Outgoings on debts each month:

other outgoings:
Sky - £47
household insurance - £27.11 may be able to get this for less try quidco for cashback on next renewal
electricity and gas £74
debt repayment for my other half £50 a month (he has a CCJ for about £2k on an old car)
tv licence - 12.12
nursery fees - £560 can you get childcare vouchers thro work at all to help with this
health plan payments 16.90 is what you get for this worth it?
mobile phone - £13
water £17
council tax £95


Income:
wage (take home) £1180
expenses claim - variable but about £40 a month minumum (we get a bonus pay when out on site)
'payment' from hubby £800

total incomings £2020

total outgoings: £1846.13

are you getting all the child benefit and child tax credits or working tax credits you can?
so technically i have £200 extra each month but I have to pay for things like fuel with that. I am lucky that my husband covers food and car insurance but i have all the household bills. He is self employed - in good times he has cash to spare - in bad times not.

you could do a spending diary to find out where the rest of the money goes

what i am wondering is how to reduce all of the debts?

technically we have £120k equity in the house and i would very much like to keep the house obviously (with 2 kids).
is it best to remortage the house - and wipe clean all the debts (and cut up my credit cards)?

No - this would be a short term solution and wouldn't resolve bad spending practices... Better to sort out your spending now and try and prevent this problem reoccuring which often happens when people consolidate debt into mortgage or a loan (it has happened to us prior to MSE)
also if i did remortgage - one debt (NRAM) is in default - would this mean i cannot get a mortgage? defaults do damage credit history - so it is possible it would affect your mortgage
also would i have to remortgage in both mine and my husbands name - he married me a number of years after i bought the house - happy to do so but he has a CCJ aswell (2k) and would this affect the application aswell? CCJs do affect credit rating - as do shared finances where one or both of you are bad credit wise it impacts- if your finances are currently officially separate I would take independent financial advice from CAB or CCCS or similar before even considering being officially joint - or he could wreck your previously good credit score. Altho if you are defaulting on a loan your credit history will be damaged for a while too

my husband lost his father earlier this year and his monther has terminal cancer - we know she will not last a year at tops and are bracing ourselves for this to happen. She has already said when she goes we can clear all our debts and buy a new house - she owns a £300k house clear of mortgage - but obviously we do not want this to happen and i am not tryign to see this as a way to clear the debts (although hubby has already said that obviously we will do - his words not mine).
So in real terms you need a solution for right now rather than over-stressing about the big picture. Be kind to yourselves - you have enough going on with grief over your father in law as well as coping with your mother in law's cancer so work on a strategy for meeting at least your minimum obligations. If that is not possible within your current financial constraints - contact CCCS or National Debtline or CAB about what options exist eg DMP or similar
help please?
I have debts and i want to get rid of them.
That's positive. Also look at the Make £10 a day challenge for ideas on how to bring more money in
i am selling loads of stuff on ebay but with 2 rapidly growing kids (1 and 3) i sell their clothes and then have to get the next size up cheapily so most of it goes back onto them iyswim). Do you know anyone who has clothes they could pass on my MIL asks her friends and relatives for stuff for my kids - I don't mind. We also have a clothes swapping circle for kids at church!

I am terrible at frittering money and i have to stop this and i am doing so.

HELP!

I've written some comments above. Hope that helps. I fritter spend too.... Its my biggest weakness. At the end of the day a bargain is only a bargain if you actually needed it and can use it in a timely manner and it doesn't wreck your cash flow or your tidiness to have to store it for too long....

HTH and good luck on your journey