Enough is enough! Please help!

rising_from_the_ashes

mrsmulac wrote: »

I have asked this on a forum before and got a resounding NO but, would it be worth not paying into my pension for a year or so and using this to shift some debt?

It's £135 per month so is a significant amount of money and I am 23 so have a lot of time before retiring! I'm keen to clear all debts so we can begin to get things in order to buy a house etc.

harrys_dad wrote: »

I would suggest that if there is another solution rather than opting out of teachers pension scheme you should do it. Even with the changes to the scheme your employer is putting in well over £1 for every £1 you put in, and this is well worth having. the contributions are also not counted as taxable pay.

Would agree that coming out of the pension should be an absolute last option and not done lightly.

Much better to make cuts as suggested and clear the debts that way.

happycamel_2

As you're a teacher could you earn more money on the holidays, tutoring or marking exams? My friend teaches for three weeks in the summer at a residential remedial course and earns a huge amount. She does it for two years and then the third year goes travelling for a month of the holidays.

DCFC79

mrsmulac wrote: »

Thanks!
The online assessment thing on CCCS just suggested I declare myself bankrupt...

Im not an expert but I imagine you may still have problems getting credit even if you go br, as i said its only a small amount so its doable if the 2 of you stick to the plan.

dancingfairy

Hmmm. I can't see the CCCS website recommending bankruptcy rom the info you've given so far perhaps you entered some of the info wrong or something? Anyway, I definitely would not recommend it from the info you've provided (it would be like using a sledgehammer to crack a nut).
A dmp is where you make less than the minimum payments to your creditors each month. You are splitting the amount 'spare' after essentials between the creditors in a fair way and asking them to stop interest and charges (clearly this comes at a price and your credit rating will be trashed as they will say you are not meeting your contracted monthly miniums and it will all stay on your file for 6 years).
With 300 a month spare you should be able to make the monthly minimums and be able to overpay as well (it's just a matter of finding the black holes).
With regards to the pension and should you stop it? No, absolutely definitely not. It's tax free for you, you get free money from your employer presumably?, you get the benefit of compunded money over the years (ie growth on growth) and if you stop you're unlikely to restart(even with the best intentions). This could be the worst thing you could do. O.k well almost.
With regards to food 200 is probably average, maybe a little less than average. However, if you want to save money there are people that could probably manage on 100 (or less). It really depends on how much time/energy you want to spend on reducing it and how fast you want to clear the debts. Even if you only save 10 pounds per month, it will all add up. Easy savings on food include the 'drop a brand challenge', ie going from premium to branded, to cheaper, to basic/no frills ranges to try different thing. Also try batch cooking (cook 2 freeze 1), a meat free night, making mince (and then making it into chill/spaghetti/lassagne/curry etc depending on what you fancy), home baking to save on cakes etc, meal planning (so you end up buying less rubbish and chucking less food out and not buying expensive stuff cos you don't know what to have for dinner) etc.
It's all about being creative and seeing how you can get the save/better services for less.
Best of Luck
df

theoretica

One little trick that would save you a bit is to juggle your smaller credit card so it is interest free. To make this a success you will need to be scrupulously organised and stick to your budget. Pay off your credit card in full every month. Then spend on it again - not general and undecided spending, but something pre-chosen eg £200 for a monthly rail card and £100 supermarket voucher and leave the card itself at home. Then pay it off again next month. Repeat. This means that everythin on this card is always in the up to 56 days interest free purchases bit of your terms while you pay off the overdrafts and other card.