New and in serious debt - Advice on which way to turn please

Bakeybadoo

black-saturn wrote:

Well here's my four penneth:

£100 - Electric This is high. Switch things off at the plug when they are not being used, plan what you want to watch on TV and switch it off the rest of the times. Sit by candlelight in the evenings. Put a jumper on instead of the heating.

We have no central heating and rely on one gas fire. When it goes out, we switch a convection heater on in the living room.

At night, we have one convection heater in the bedroom and we all stay in one room.

£400 - Food/household items This is high too. Look on the Old Style money saving board to see how you can reduce your food and cleaning bill. I feed 2 children aged 12 and 9 and me on £42 a month!!

It is high but we have 2 kids in nappies, 1 on formula and eating solid jars.

£80 - Average eBay fees - sometimes nothing, sometimes less If your ebay fees are this high you must be selling a lot. Is this inlcuded in your income at the start of the SOA?

You get charged even if you don't sell but yes, some months we make £100 or a bit more, some months we sell or make nothing.

£80 - Into kids savings account Priority is to get out of debt at the moment. Stop the kids savings for a while and use the money to get out of debt. You can always start again when you are debt free.

I agree. We are going to do this. It's just a feeling of letting them down IYSWIM?

£70 - Catalogue payment Is there any commission you can cash in on this?

No, it's just a buy for yourself thing.

Could you pay the average spare off your debts every month to reduce them a bit quicker?

Yes, it's knowing where to start or even if it's worth it. Or whether bankruptcy would be a better option for us.

bananakinz

Have you just started to pay for the tv licence by DD, as I seem to remember that when I first did, they take double for the first six months, then it reduces?

Bakeybadoo

Sea78 wrote:

Hi

I'm on DD and pay 11.47 a month - perhaps ring and enquire why you're paying double?

Sea xx

I will do that first thing. Thanks for the heads up.

Bakeybadoo

bananakinz wrote:

Have you just started to pay for the tv licence by DD, as I seem to remember that when I first did, they take double for the first six months, then it reduces?

Aaah, that could be it then. Yes, we have just started a new DD agreement up.

Sea78

Bakeybadoo wrote:

I agree. We are going to do this. It's just a feeling of letting them down IYSWIM?

I understand, but think how much easier it'll be for you all when the debt is manageable and you can afford to put in the money and also pay for the extra stuff they'll need like dance lessons, music lessons, etc etc. Much better to sort it now when they'll be less bothered than later on when it'll be a much bigger deal.

Bakeybadoo

And thank you already, I'm taking these suggestions on board. I hope me replying to your advice isn't seen as me rebuffing it because it's not. I'm just trying to answer and be honest so I can get the maximum benefit of the advice and help here.

bananakinz

You are not letting the kids down, get yourself sorted with the debt first, then arrange a 'back pay' when you are debt free!

You could start a spending diary to see where your £370 per month is going? This is quite an eye opener!

You also mentioned that your household budget also includes clothes, are you also still spendingon the catalogue?

Bakeybadoo

bananakinz wrote:

You also mentioned that your household budget also includes clothes, are you also still spendingon the catalogue?

Clothes for the kids come out of the budget. It's not that much, maybe £20 per month.

My clothes did come from the catalogue (I'm plus-sized) so can't get them on the high street easily. I don't buy anything from the catalogue now as I'm up to my limit.

bananakinz

Even though you are not paying each debt an amount, can you find out what the aprs are and minimum payments are as this would help a great deal in the 'bigger' picture.

Also with the car, how much was the original finace for, and how long have you had it?

Bakeybadoo

I will get onto that tonight, when the kids are in bed and I have time to get the paperwork out.