Finally ready to take the bull by the horns!

[Deleted User]

Hello All

I'm finally in the right mindset to take the bull by the horns and sort out the mess that is my finances. I have a few legal things to sort out then I can start making payments so I thought I better get prepared so I know where to start. I have completed the SOA and must admit it's the first time I have been completely honest with myself and dared to look.

It's a long boring story of how I got here but the situation is that we are possibly facing a second redundancy and just waiting on that news. The first redundancy was overcome by my partner getting another job albeit with half the income which has led us down this rocky road.

I never thought about paying off my mortgage early and investigating our financial options led me to this site. So after we've sorted out our other debt that is what I'd like our next step to be. We also have retirement plans to aim for but all this hinges on what happens with the employment situation. I feel really low as I feel after all our struggles to hang on to our home it looks like we may lose it after all.

I tried to attach my SOA but it won't let me post with the link. Is this just because it's my first post?

Kind Regards

Penny

Hovel_lady

Yes, it's because it's your first post. It's to stop spammers joining just to post links.
Copy and paste it onto here

[Deleted User]

Well having plucked up the courage to make my first post then retreat again I feel strong enough to make another.

Thank you Hovel Lady for your advice, which I tried to follow but again didn't work. However, I have decided not to post my SOA as to be honest I am ashamed I can see what I need to do, basically cut back everything possible and earn more money!

So my update is as follows: -

Still no news about my partner's job, his days have been cut to approx 3 per week with it looking likely that next week will be his last. He's phoned all his contacts and has 4 irons in the fire so to speak so fingers crossed. I already have 2 jobs working approx 50 plus hours per week and also looking around for something on a Saturday which is my regular day off. We have also taken in a lodger. Unfortunately if my partner doesn't find a job I can't see how I can pay all the bills (my pay is quite low at £8 and £6.50 per hr).

Anyway being off today I tackled some things and I'm quite proud of myself. Managed to cut down the following bills: -

Mobile phones £45 < £14
BT Landline/BB £45.45 < £13.25
Sky £82 < £43.25 (with a view to cancelling when contract's finished)

I looked at our preventitive health care plan for the dogs with a view to buying treatments on line but it turns out it's a great deal which covers worming & flea treatment, booster and 6 monthly health check for two dogs all for £18 per month. Also get a 10% discount on any consultations and off any bills due to illness or injury.

So now I need to look at reducing the B&C insurance from £43 per month. I'm going to try Direct Line as they are offering 20% discount plus a further 30% online. Can anyone recommend any others to try?

Finally if no-one has died of boredom yet, we have a bank loan current balance of £3,374 at an APR of 10.8% and interest rate of 10.29% (not quite sure what the difference is between the two). We pay £128 per month and 43 mths left to pay. I was thinking of trying to get a 0% credit card or a long term low rate credit card to transfer the settlement figure to. Does this sound like a good idea? Struggling to work out rate comparisons etc. I do realise though that 0% would only be for a little while and then I'd need to find another 0% card to transfer and of course this is assuming I'll get accepted.

firesidemaid

Hello.

B+C ins i normally expect to cost approx £240 or less per year. i have just renewed for £186.

Click on the insurance section on this site which gives you info - basically go through the usual comparison sites (thru quidco etc for cashback) to get an idea of the cheapest. then see if you can get any cashback with any of the cheaper providers. it may cost you slightly more with a lodger in place?

i wish you well with everything. just try and spend some time on the boards, including money saving oldstyle to help cut your food bills.

Poosmate

Welcome Penny Bridge and well done on taking steps to avoid the train wreck before it happens.

Check out the "Up Your Income" board for more ways to increase your finances and become debt free. Also the "Old Style" board for some great recipes for using up scraps or odd stuff you have left in your cupboards. You'd be amazed what you can make with a can of lager some peas and an egg.

Not sure if I would apply for a 0% CC to pay off a loan with 43 months remaining. I mean, at least at the moment you know exactly how much the payments are and 10.2% interest isn't the worst rate in the world. Do you have any other debts? Or any other credt cards?

Good luck what ever you try anyway,

Poo

[Deleted User]

Hello Poo and thank you for your welcome and your thoughts. Yes, I do have the Tesco 0% card at the moment . I got it to pay car insurance and will have it paid off before the 0% ends. I also use it to pay for my Tesco shopping as I get extra points when I do then I pay it off immediately.

Yes, I do have other debts, an unsecured loan approx £23k. I've just checked my credit rating and it's good. I got accepted for the Tesco one no problem but may have too many debts now to be accepted for another. What I was thinking though is more of a back up plan in case I lose a court case. If I don't receive the money I'm hoping to get then I will need to pay off all my debts slowly. I will get my money eventually of that there is no doubt it's just for the judge to decide when. If I can't access it for another 3 years I don't want to leave things until then to get started.

So I wasn't planning to take 43 months to pay it off on the card, more like 17 or whatever 0% offer I can get and then divide the payments equally. But as with everything in my life at the moment it depends on 2 things. The outcome at court and if my partner gets another job or not. I suppose I could just leave the loan with the bank and overpay them. I'm just not quite grasping things and not really sure if there is any benefit to transferring it. I was thinking I could save more interest by transferring whilst giving myself a reasonable time to pay it off interest free. If I stayed with the bank I'd be looking to have it gone by Sept.

Not expecting anyone to give me the answer on here really, I know it's my problem and my decision just thinking out loud! LOL But any thoughts, warnings or input I would be grateful for as I'm not use to all this chopping and changing debts around, just want to try and work out the best way to tackle it. Sometimes it overwhelms me and I just want to give up but joined here instead.

camuk81

Penny, well done on having your lightbulb moment. Please ignore any comments you have seen intact most of us are in the same boat trying to get through this.

I know you don't want to post your SOA so here are a few thoughts.

Can you shop around for any more of the insurance. Can you put the council tax to 12 months rather then 10. Are you getting the best deal on elec and gas?

Mobile phones? Are you getting the best deal? Can you try the brand challenge.

Ebay? Any items you can sell?

Have a look at a snowball calculator and rather then getting stressed start planning for what you can do. Small baby steps. I'm only 4 months in and realised I'm been too liberal with my budget and there is more I can do to cut back.

You know you always have positive feedback and sometimes it can be harsh but another set of eyes sometimes shows what you are missing.

TeamNicholson

:Just a heads up Penny. As far as ii'm aware most banks will not allow you to settle a loan from a credit card. It would have to be money available in your bank account, its to do with servicing debt with debt if you catch my drift! Otherwise though I think your making a great start. I hope your partner manages to get something soon. Good Luck

[Deleted User]

Thanks for the info TN. This is what I mean about me not grasping things. I was reading Martin's advice on here and was considering trying for the Virgin Card where I could pay off the loan in 28th months instead of 43. The way I read it I could ask for a balance transfer (super balance transfer)to be paid into my current account and then I could pay the loan off with this. The loan is in my partners name but I would be paying it off from my account. So I definately can't do this, so guess have to re-group and think again!

The other thing I'm worried about is being accepted for a credit card anyway. Not sure if I would be accepted for the amount I would need. Also another niggle, if you apply for a credit card and are rejected does this appear on your credit report?

curlytop12

hiya,
well done on the sky/mobile/phone deals!

try topcashback too when looking for home ins.i got a good deal with swinton and £50 cashback.

you don't have insurance for the loan that would pay out in case of redundancy?

don't be ashamed of posting youe SOA,we have all been through it!and we want to help you too.

good luck