SOA - please can you take a look and give me some advice please!

nicnicj

lbcashgenie wrote: »

i strongly suggest that you get a debt management plan for your debt crisis. one of the best debt management company in UK is the debt support company or you can learn a lot from debt management.be fro great debt management informative articles.

we're not having any difficulties making payments, we just need to cut back so thanks but no thanks.

XXSCOTSLASSXX

nicnicj wrote: »

i have accepted it and if you read back through my posts I have thanked several people for their advice. In fact the majority of posts have been extremely helpful.

However that one on interest rates was not helpful - it was patronising!

I am fully aware of where we have gone wrong which is why I have posted on here and why I have asked for help. I don't think I have come back with an argument about things - people have asked me questions about my situation and I've tried to answer them.
bloody hell!! Basically we will cut back massively on groceries, clothes, entertainment and luxuries until we start seeing some inroad into the debts. I KNOW THIS SO PEOPLE CAN STOP TELLING ME NOW!!!

I now have a 4 year plan to get rid of our debt... so thank you for all your help (those who actually tried to help me rather than just patronise me!)

apologies as i said was not being patronising or rude... i read the thread and what jumped out was £2k on holidays was acceptable given the wage etc, cutting back on groceries etc wasnt an option as any other supermarkets were not within reach ... again apologies i obviously got it wrong good luck with the 4 year plan

[Deleted User]

nicnicj wrote: »

we're not having any difficulties making payments, we just need to cut back so thanks but no thanks.

ignore lbcashgenie's post - reported as spam

reallyAnnoyed_2

hmmm you can try an imaginary "paycut" for budgeting.

Your incomes are as follows

Partner 1 take-home income £1234 (£18000 annually)
Partner 2 take-home income £2200 (£35000 annually)
Benefits £135 (£1620 annually)

Total income £3569 (£54620 annually)

Give yourselves an imaginary paycut and treat your incomes as follows -

Partner 1 take-home AFTER pay cut £1060 (£3000 paycut)
Partner 2 take-home income AFTER pay cut £1911 (£5000 paycut)
Benefits £135

Total income AFTER "paycut" £3106 (£46620 annually)

This will leave you with extra £463 (which, I suggest, you move to a separate account.) BEFORE you even start spending. Budget for the month based on your "new salaries". Anything you save from strict budgeting would be a bonus.

It is doable as the money is there all the time if you urgently need it. It's more about setting a new frame of mind.

Best of luck.

cutestkids

Hi

I don't think the poster who spoke of interest rates a 15% was trying to patronise you, I think they were just pointing out that you do not have a lot of room in your budget if something goes wrong.

I had just bought my first house when the 15% interest rate thing happened and believe me it had a huge impact, we didn't see it coming the rates literally doubled overnight and suddenly we were struggling, we had gone from being able to keep on top of everything to it all crashing around us within a few weeks.

Like I said I don't think they were trying to patronise you I think that sometimes we don't like to think about how well we could cope if the worst happened.

I hope you do not take offence at this post as none is intended.

ajbell

It was my post that mentioned 15% interest rates, i apologise if it caused offense but it was something that had a profound effect on me at the time and now i always have it in the back of my mind that things change.
I now budget with the worst scenario in mind and have about £1000 to spare each month that i could spend but don't.
I would point out to some younger people today that interest rates of 0.5% are not normal and long term borrowing based on the repayments at this rate will catch a lot of people out.
Your £200 interest only mortgage would jump to £2200 at 15%.
No offense intended, Its just my opinion based on my experiences.

poppy10_2

nicnicj wrote: »

Is £2,000 a year when you earn £60k between you really an expensive holiday???

Your phrasing shows that you haven't quite had your lightbulb moment yet. If you had said

Is £2,000 a year when you are in £20,000 debt an expensive holiday?

then you probably would have come up with a different answer - i.e. YES.

Tackling debt is always difficult, particularly when it's on a large scale. It's tempting to try and skirt around the issue, by making token minor changes and looking for consolidation loans/remortgages to try to defer the pain. Until you face up to the magnitude of the situation you are in, you will not be prepared to make the drastic cuts in spending that you have to make in order to get back on your feet.

A £2,000 annual holiday is very expensive when you are in as much debt as you are. Plenty of families cope without holidays for years. You tell yourself you deserve it, and that on your income you should be able to treat yourself to such things. At some point you will realize that whatever your income, if you live beyond your means you will end up in trouble.
But people reach their LBM at different points. Maybe it will take bailiffs and repossession threats before you reach yours, but that would be a real shame when there's so much you could do to tackle your situation before it gets to that point.

All the best.

nicnicj

ajbell wrote: »

It was my post that mentioned 15% interest rates, i apologise if it caused offense but it was something that had a profound effect on me at the time and now i always have it in the back of my mind that things change.
I now budget with the worst scenario in mind and have about £1000 to spare each month that i could spend but don't.
I would point out to some younger people today that interest rates of 0.5% are not normal and long term borrowing based on the repayments at this rate will catch a lot of people out.
Your £200 interest only mortgage would jump to £2200 at 15%.
No offense intended, Its just my opinion based on my experiences.

this post was definitely more helpful so thank you.

mellas666

Have to agree with last poster.
You came here for advice, yet have got defensive when offered.
Most people on here don't have the luxury of huge shopping bills/ low mortgages and holidays.
Please either take the advice or don't, your choice.
Hope you get sorted.

nicnicj

mellas666 wrote: »

Have to agree with last poster.
You came here for advice, yet have got defensive when offered.
Most people on here don't have the luxury of huge shopping bills/ low mortgages and holidays.
Please either take the advice or don't, your choice.
Hope you get sorted.

if you read back through ALL my posts you will see that I have taken on board advice from the majority of HELPFUL posters that actually have some constructive advice to offer me. The only time I get defensive is when people come along and make judgements about me or make what I feel are patronising comments (like you are doing now).

@poppy10 - yes you are probably right with what you say... although we will have to keep our holiday in the budget as it is one thing my husband and I are not prepared to compromise on at the moment. Maybe we haven't had our LBM like everyone keeps going on about but to us, holidays are important.
You only live once and although I might have debts right now, I would rather have experienced life than be miserable sat on a massive pile of cash not spending it. Yes I will probably get flamed for this - whatever....

on a more positive note.... I have just managed to save £120 a year with my BT account. Thought I was getting fleeced by them for my broadband and phone at £45 per month so have got it reduced to £31 and a free BT vision box (although got to pay £40 installation fee - ALREADY factored into my £120 savings people!!)