£80,000

determined_new_ms

thejames wrote: »

After thinking i really need to look at my shopping bill! But I still don't know how you have a shopping bills at £200 is that on meat, fish, toiletries etc... This I'm finding it hard to get my head around.

I'm wondering if we should try for a loan to cover our credit cards or if this would make us more vulnerable?... Just thinking we may start paying it off then?

I'm still doing the soa to get it right, I have this awful feeling that we may be worse than this, I really appreciate all that have replied.

I'm just wondering if bankruptcy is our only option?

how I got to £200 pm is doing the things I said in my first post. I started doing something about it when it reached £100 a week a couple of years ago. Its been a process that I have got better at over time. Saop nuts will be on top. Yes meat & fish (Aldis is great for fish) only some toiletries as oh gets shampoo, conditioner, shower gel & face moisturising from work

psychopathbabble

DMP is a debt management plan, they ask your creditors to freeze interest, work out your budget and a monthly repayment until it's paid off. The budget you are given isn't too strict. An IVA is similar but they write off what's left after 6 years. Someone correct me if I'm wrong?

there is a thread somewhere that feeds a family of 4 for £100 per month, tried and tested. Try shopping later on to get reduced items, buy lower brands, don't impulse buy - if you are going in for milk, just get milk. Meal plan using what is left in your cupboard to use up. Freeze leftovers don't chuck. Stock up when things are on a good offer (as opposed to bumping the price up then sticking it on offer). Look at approvedfoods.co.uk for bulk buying. All these things can help.

It can be done, but it will need a lot of work from you and your family. You have to be 100% with it or it won't last long. If you can get these savings made on your grocery shopping, you will be equal to your outgoings. From here you can start shaving off more things, plus you won't be paying charges for all these outgoings being more than your income.

You can do this x

determined_new_ms

DMP is a debt management plan - usually through pay pal or cccs (on this board) as they are free

Hovel_lady

Consolidation loans are generally considered a bad idea.
About 85% of people just run up more debt afterwards.

Have you had a look on the bankruptcy board? They could advice on the options for that and whether or not it might be the best thing for you.

There really is loads of info on the OS board about cutting your shopping bill.
Maybe you could ask for advice there?
x

Hovel_lady

This thread might give up some ideas about cutting back on the money you spend on shopping.

https://forums.moneysavingexpert.com/discussion/3519323

DVardysShadow

thejames wrote: »

I'm wondering if we should try for a loan to cover our credit cards or if this would make us more vulnerable?... Just thinking we may start paying it off then?

I'm still doing the soa to get it right, I have this awful feeling that we may be worse than this, I really appreciate all that have replied.

I'm just wondering if bankruptcy is our only option?

A loan [if you could get one] would be pointless to pay off another loan ... And if you use it to pay off credit cards, you will put yourself onto a much more demanding treadmill of repayments. Essentially, at this point, you are unable to do much more than service the interest, never mind repay any capital.

Overall, I think you need to set a decision day about 3 months on from now as to whether to go bankrupt. But in the meantime try your damndest to get yourself on some path of recovery. If at 3 months you can see you are going nowhere or back into debt, then you should consider bankruptcy or a similar arrangement. But if you can see a way through, then you should hold off.

Willow asks important questions here and answers really are needed

Willow_K wrote: »

Some questions:

What is the HP for and when is it due to finish?
When are the car loan and boiler loans due to finish?
What is the term of the two big loans?

I'm getting the impression that you only understand your finances in terms of what goes in and out each month - but you don't really understand your debt. Willow's questions are vitally important at this time. It may be that you can cut spending and get back on some sort of an even keel where at least you are not increasing your debt. For goodness sake, don't add another loan into the mess, you are really on the edge here and another loan will push you over. What you have to do is at least keep that even keel until one of your loans is paid off. Once you do that, it will free up money each month to put towards paying off your credit cards.

Now, Willow's questions will indicate how long it will be before you free up money to start paying down the debt. You need to understand how long you will be treading water before you can get anywhere. And make your decision as to whether to go bankrupt or fight your way out.

DCFC79

thejames wrote: »

You think I should give up the franchise? Ive put over £12,000 into it should I not just at least try? Im open to any advice, even if its giving it up.

I was only going on what you yourself when you said this " bad Idea now in more debt and business hasnt taken off "

you could spend ages trying to make it work when you could be in a full/part time paying job.

DCFC79

Try martins downshift(its downsize isn't it) challenge, aytihng you buy eg asda's cornflakes you go for a cheaper brand eg asda's smart price cornflakes.

Willow_K

thejames wrote: »

After thinking i really need to look at my shopping bill! But I still don't know how you have a shopping bills at £200 is that on meat, fish, toiletries etc... This I'm finding it hard to get my head around.

I'm wondering if we should try for a loan to cover our credit cards or if this would make us more vulnerable?... Just thinking we may start paying it off then?

I'm still doing the soa to get it right, I have this awful feeling that we may be worse than this, I really appreciate all that have replied.

I'm just wondering if bankruptcy is our only option?

OK - STOP PANICKING AND TAKE A DEEP BREATH

I can feel the panic coming through in your posts sweetheart and I understand it. That horrible knot in your stomach, not being able to sleep because you are constantly going over figures in your mind, desperately seeking the quickest way out with thoughts of loans and bankruptcy etc. Been there, done that.

However, given your current debt levels you are highly unlikely to qualify for another loan and as others have said, consolidating is a bad idea anyway.

You are also a long way off bankruptcy yet, and while it may seem like an easy option in your current state of panic, it is something that you really need to avoid if you can because it has the potential to affect the rest of your life, even after discharge. A Debt Management Plan (DMP) is a possible option, but I don't think you are at that point yet either.

So, first things first, take a deep breath and lets sort this. Can you go back to my first post and answer the questions at the bottom. As DVardysShadow said, these are important. Can you also tell me when your car insurance and house insurance are due for renewal?

When you've done that, I want you to sit and do a retrospective seven day meal plan - write down everything you have eaten over the last seven days - include breakfast, lunch and snacks as well as main meals and post it here - we can then start to show you how to cut your shopping bill because that is your quickest way to kill the deficit in your SOA. Also, where do you currently shop?

It's not going to be quick or easy, but it is doable even though it might not seem like it at the minute.

Have a (((((hug))))) - now get to it

thejames

Hello again,

Ok after a 24 hour period of mulling over options, this maybe a possible one.

I pass my business over to my mother, shes happy to do this. So she in affect owns the business for the time being.

I go back to work on a full time basis, my husband and I are in the police, so work shifts, (hence reason for not wanting to go bankrupt) this would put on another £800-£1000 on our incoming, this is obviously something I didn't want to do with my past experience. But I have to man up at this point.

We look at our food bill.

Look into all of my service bills to get better deals.

...?......

Our sofas finish in may this year thank goodness one is dropping.
Boiler is 9 years started this September
Loan also got for franchise 15 years
Husbands loan is 10 years took out 3 1/2 years ago.

Bit daunting but I feel we may have options to get 'ourselves' out of this.