Newbie needs help!!

sweetiesarahjaneuk

Hiya,

I've been a lurker on this site for quite some time, and have got great advice from here! I've decided I really need to get a grip on my rubbish financial situation so if anyone can give me some advice it would be much appreciated!! Sorry in advance if this post is long but I really need to get it off my chest!!

It all mainly started the beginning of last year when hubby left the army to be with me and our daughter, taking on a temporary job which was 10k a year less salary! :eek: He's got a job in the police now so we're finally in a position where we should be able to live off our salaries as I work full time too, but in the year or so that he had this low paid job we have run up a load of debt. Its finally come to a head now when we both tried to apply for 0% credit card from barclays and were refused.

Our main monthly payments for debts are (rough amounts):
Mortgage: £580ish
MNBA card me: £20ish (owe about £850 on it) 15.9%
HSBC card me: £145ish (owe £5000) 15.9%
MNBA card DH: £50ish (owe about £4000) 15.9%
Lloyds card DH: £90 (owe about £7000) 15.9%
HSBC loan me : £190 (final payment in Sept 2007) 11%ish
Lloyds loan DH: £170 (he's finding out how long left later, should be about 2yrs left)

Our childminder costs about £550 a month, I've just rung a childcare tax voucher scheme and DH will do the same to save a bit of money but it certainly doesn't help with such another big outgoing!

Then on top the usual gas, elec, water, c tax etc, we have a car each (both work miles away from each other in opposite directions) so two lots of tax, mot, insurance etc.

Our income is:
Me £950 (pay into works pension scheme before I get my pay but would be about £1050 net otherwise)
DH £1100-1400 depending if he's done any weekend shifts.

I listed my incomings and outgoings and it comes out that we have less than £100 for the whole month to cover us for food, petrol, etc. We prob spend that in a week or two no problem!! I've worked that out if DH has an average of £1300 income for that month so on a low paid month we have nothing at all.

I don't want to go bankrupt or IVA etc, as we would live to move house in a years time if we get this money problem sorted so would need to be accepted for a mortgage!! DH keeps suggesting 'consolidating our debts into one easy monthly repayment' - talk about quoting the adverts :rotfl: but don't these have extortionate rates?

I suppose we could go to the bank and ask for a loan to cover all of it but now we've been declined credit cards Im wondering if we'd even be accepted for one!!

Any advice is much appreciated even if it is to say Im kidding myself that I can sort this without IVA etc!

Thanks,

Sarah x

lxpeanut

Don't consolidate it realy doesn't help you end up having to pay far more back than you would have done. Have you thought about a debt management plan. Try listing all your outgoings excluding the debts and see how much you have to put towards your debts each month. Then contact one of the free organisations CCCS, payplan, CAB ect they will be able to advise you on the best course of action.

Also post a statement of affairs and you will get lots of advice on where you can save money.

Storm

OK, adding up what you've listed comes to £1795 a month, so working on your hubby's basic salary of £1100 leaves £255 a month for council tax, utility bills, food, fuel, car costs, clothes etc.

Can you post a full SoA (see SouthernScousers sticky 'for new posters')

Have you missed any payments yet? Could you come out of the pension for a while? Could you downgrade a car or get one with better fuel economy/lower tax for the same price?

Loads of questions, I'm afraid, but really do need a bit more info before giving concrete advise!

sweetiesarahjaneuk

When I get in tonight I'll log into my A&L account which lists my DD's so will be able to post a proper SoA! This is the first month where we've missed payments which I intend to pay when I get paid on the 25th however not sure if it will leave us with enough for that month etc which is why Im starting to get worried!!

Thanks for replying it really helps me feel a bit better to start dealing with this properly!!

Sarah x

david_hellier

subscribed

sweetiesarahjaneuk

Hiya,

I've got a proper SoA now - monthly incoming/outgoing listed below!

My salary - £922
DH salary - £1100-1400 depending if he works weekend shifts or not
Child benefit - £69.80 four weekly
Tax credit - £33.30 four weekly although likely to go down to about £20 when I start the childcare vouchers.

Outgoing
Mortgage - £562.87
Childminder - £550ish
DH mobile - £30
My mobile - £40 but going to ring to put on a lower plan as I had a half price deal for 6 months but cannot change down until month 9
DH personal insurance - £17.10
DH car insurance - £49.17
Talk Talk - £22
My car insurance - £95
Denplan Dental Fees - £9.99
Water - £31
Lloyds loan - £162.30 (not sure of apr, approx 1.5k left I think DH going to check)
River Island Storecard - £9.30 - approx £200 on it
HSBC Credit Card - £145 - £4980 spent on it, just written to them to cancel insurance so should come down a bit
Mobile phone cover £9.99
Home insurance £15.21 (sorry previously listed as DH mobile insurance)
Sky £15.34
Elec - £40
Council Tax - £65.57
TV Licence £11.37
Gas - £54.00
MNBA card me - £19.62 - balance of approx £850
MNBA card DH - £58 although spent on this month so will go up - bal £2600
HSBC Loan - £189.86 - ending Sept 08 - balance £3408
Lloyds C Card - £90 - balance £4360 - less than I thought!!!


So a lot of outgoings!!! If anyone could help would be much appreciated!!

Sarah x

chevalier

Is you OH wage the police one?
what is the mobile phone cover for? could it be covered by the contents insurance for less?
Are you very young as £95 for car insurance is extortionate. join https://www.quidco.com and see if you can get a better deal on this
chev

medman

Hi

I'm still serving in the Army but will eventually have to travel the same path!!

I've had a look at your SOA and there are a few things you could do to reduce costs I think. Anyway here goes.

sweetiesarahjaneuk wrote: »

Hiya,

I've got a proper SoA now - monthly incoming/outgoing listed below!

My salary - £922
DH salary - £1100-1400 depending if he works weekend shifts or not
Child benefit - £69.80 four weekly
Tax credit - £33.30 four weekly although likely to go down to about £20 when I start the childcare vouchers.

Outgoing
Mortgage - £562.87 Consider switching to interest only for a couple of years to reduce your monthly payments. Then return to repayment status when you are better able to pay.
Childminder - £550ish
DH mobile - £30Reduce the tariff to the lowest you can and consider pay as you go
My mobile - £40 but going to ring to put on a lower plan as I had a half price deal for 6 months but cannot change down until month 9
DH personal insurance - £17.10
DH car insurance - £49.17As already advised join Quidco and shop around there are really good deals with cashback
Talk Talk - £22 Whats this?
My car insurance - £95 as above
Denplan Dental Fees - £9.99
Water - £31
Lloyds loan - £162.30 (not sure of apr, approx 1.5k left I think DH going to check)
River Island Storecard - £9.30 - approx £200 on it
HSBC Credit Card - £145 - £4980 spent on it, just written to them to cancel insurance so should come down a bit
Mobile phone cover £9.99
Mobile phone cover DH £15.21
Sky £15.34we cancelled this when we recently returned from Germany and hardly miss it. The Sky box continues to receive the free channels and we don't miss it. We were watching it because it was there. The kids get used to it fairly quickly too.
Elec - £40 Quidco and switch with cahback
Council Tax - £65.57
TV Licence £11.37
Gas - £54.00 as above Quidco
MNBA card me - £19.62 - balance of approx £850
MNBA card DH - £58 although spent on this month so will go up - bal £2600
HSBC Loan - £189.86 - ending Sept 08 - balance £3408
Lloyds C Card - £90 - balance £4360 - less than I thought!!!


So a lot of outgoings!!! If anyone could help would be much appreciated!!

Sarah x

http://www.quidco.com/ Sign up and get cash refunded for insurance, switching utilities to lower prices and shopping.

My last thought was regarding your consolidation. Generally not a good idea for a number of reasons: with poor credit rating they sting you for interest, monthly payments are only reduced by a dramatic lengthening of the repayment period and the total you pay can be huge. The sting in the tail is often people will return to their old habits and fill up the CCs again, ending up in an even worse predicament.

One thought I did have was to ask The British Legion or the Army Benevolent Fund for a low cost consolidation loan. It may not be something you and your OH can do but they can be really helpful. A lot of ex services people get in trouble as they make the transition and these organisations can help and are willing to. Don't let pride stop you if you think they could help.


http://www.britishlegion.org.uk/content/Benevolence-508949.shtml

"The Royal British Legion can provide support to serving and ex-Service people and their dependants who are suffering financially."


http://www.armybenfund.org/abf_help/qualify.html
Do I Qualify?


It isn't charity; it's a support mechanism for people who have served their country and then find themselves in difficulty. You deserve support after the sacrifices you and your OH have made so think about it seriously.

Best wishes and good luck

MM

sweetiesarahjaneuk

Thanks for the replies

Yes the DH wage the police one. DH was going to join the british legion before, he may already have so will check. Even though he's served in Iraq amongst other places, we're the type who hate claiming stuff like that but might look into it whilst we're in this desperate situation.

With DH mobile, he uses all the minutes up so is on the cheapest tarriff. I think he has just under a year until the contract expires so he will prob change to provider like 3 or cheapest around at the time when it does.

Think I will cancel sky too, I think cbeebies is a free channel which is the most important one lol! I do like watching sky and stuff but if it means Im not in so much debt then I'll do it!

Talk talk is my phone and internet provider - I thought £20 for both which includes unlimited phone calls and broadband was great deal.

Gas and Elec I only switched a couple of months ago - I was with british gas which cost me a lot more!! I even got a free bottle of champagne in the process lol (which I did from a money tips email from this site!)

Im half way through a 2 year fixed rate on my mortgage so would get stung with penalty fees if I end it early to go interest only - I never miss mortgage payments as its the first thing that comes out of my salary each month so want to deal with this last if poss. I have an independent mortgage adviser who gets me the best deals every 2 years.

With car insurance Im only 22 years old so not hit that magic 25 yet!! Also my car got broken into last year where they basically wrecked all the electrics so lost my no claims which was really gutting seeing as I was a careful driver for 3 years. I think I have one years no claim now so might go down at renewal in November. DH is 28 so I think that's why his insurance is cheaper.

Im sort of running out of ideas now, I don't think there is a lot I can shave off!!

Sarah x

medman

OK Sarah

sounds like you've already taken some of the main steps to reduce outgoings. I would urge you to contact the British Legion for help you might be pleasantly surprised. A very large number of ex-services end up in financial difficulty including homelessness where they are one of the largest groups. You are far from that situation but they can help.

Even though your mortgage is on a fixed two year deal if you talk to your lender they can switch to interest only with no penalty. It's in their interests that you can afford to pay too!

I would also speak individually to each of your creditors and tell them you are thinking of switching to another provider. Ask them for a period of 0% or a low life of balance transfer rate, again you might be pleasantly surprised.

Good Luck

MM

medman

I found this

http://www.britishlegion.org.uk/content/Benevolence-508949.shtml#1

"If you have financial difficulties, and don’t know where to turn for help, The Royal British Legion can provide support to Service and ex-Service people and their dependants through our Immediate Needs Scheme."

sounds encouraging :dance: