Help.......Sinking!

Skytrax2

Hi, 1st time poster here!,

Please could you help me with some advice, my wife and l have in the past couple of years ran up a £30,000 bil with multiple credit cards and it has just caught up with us.

Currently when l look at all the minimum payments it amounts to not far £1,000 per month which we simply cant afford.

I am wondering about not paying them any longer and trying to set up a trust deed but have no idea how to go about this or no real idea if thats the best step to take, one thing l think we both understand is that we have come to the limit with the cards and we must stop NOW.

Please could anyone out there help me, between our 2 jobs we have good cashflow but the credit card payments kill our money each month and as you can understand its a source of massive stress in the household.

Thank you very much in advance for any advice you could possibly offer!

Cheers
Skytrax2

webitha

hi and welcome to your road to financial freedom

post an SOA (statement of affairs) see southernscousers sticky at the top of the board

sort it out post it here include everything and then sit back and watch all the lovely peeps (me lol) work their magic

and dont worry we are all in the same boat so noone will judge we a friendly bunch here

beanielou

If you are talking about a trust deed take it you are in Scotland?
Do you own or rent your home?If buying do you have a lot of equity?
Why dont you talk to your local CAB/money advice centre to get adice from them?
Welcome to MSE by the way .
You have come to the right place.

Skytrax2

Hi,

Thanks for the advice, here is my Statement of Affairs, dont laugh!

Monthly Incomings:

My salary - £1,835
Partners salary - £1,100
Benefits - £117

Total - £3,052

Monthly Outgoings:

Mortgage/Rent - £780
Council Tax - £180
Gas - £40
Electric - £30
TV License - £12
Sky £53
Phone - £40
Food - £400
Car Insurance - £50
Petrol - £200
Life Insurance - £55
Contents - £40
Gym - £35
Internet - £30
Car Insurance - £50
Car - £290
Gas Plan - £23

Total so Far = £2,308

Cards

Egg - £200
TSB - £143
Debenhams - £70
Virgin - £70
Halifax - £35
Next - £225
Studio Catalogue - £15
Argos Additions - £15
Vertbaudet - £20

New Total = £793

Total = £3,101

Total Income = £3,052

Leaves = £0 , minus £49

So as you can see with all the plastic its a real battle we have now and the card payment are simply minimum payments!

Credit Card Details

Egg - Balance = £10,321 - Limit = £10,000 (cant find APR rate?)
TSB - Balance = £6,850 - Limit = £7,200 (APR 7.9%)
Virgin - Balace = £3,100 - Limit = £3,200 (APR 15.0%)
Next - Balance = £2,250 - Limit = £2,300 (APR 26.49%)
Debenhams - Balace = £1,400 - Limit = £2,000 (cant find APR rate)
Vertbaudet - Balance = £500 - Limit = £1,300 (Monthly interest 2.2%)
Studio Catalogue - Balance = £400 - Limit = £400 (Monthly interest 2.6%)
Halifax - Balance = £1,700 - Limit = £1,700 (interest free so far)

I hope this makes sense and would appreciate any help you could offer!

Thanks in advance.

Skytrax2

Skytrax2

Beanielou,

Yes l am in Scotland, we have a mortgage but there should be around £20,000 equity in the property, will that effect getting a trust deed?

Thanks
Skytrax2

I_was_a_fool

Hi skytrax2

Looking at your soa, a dmp (debt management plan) may be the answer for you. A trust deed could force you to release the equity in your home, by selling it or some other means.

Both a dmp and a trust deed will trash your credit rating, that is not necessarily a bad thing, but will affect your ability to switch mortgage providor etc. Before you start, open a new bank account with someone you do not have any debt with, so wages can be paid in there safely.

You can contact CCCS, Payplan or CAB and they will be able to give good advice on how to move forward. You dont need to carry on with the stress!!

Skytrax2

thanks for that appreciate your and anyone else's advice!

oops_a_daisy

Im not sure of the laws in Scotland but I can give you some tips on where you can cut back there are a few other things that are not covered by your SOA ie. mobile phones ? christmas & birthday costs ? hair cuts ? buildings insurance ? holidays ? one thing to note is that you do not always have to wait untill renewal time to change insurances - check your policies

Skytrax2 wrote: »

Hi,

Thanks for the advice, here is my Statement of Affairs, dont laugh!

Monthly Incomings:

My salary - £1,835
Partners salary - £1,100
Benefits - £117

Total - £3,052

Monthly Outgoings:

Mortgage/Rent - £780 is this interest only mortgage ?
Council Tax - £180
Gas - £40 look into switching to a cheaper provider, use the links on this site to get cashback to switch
Electric - £30 as above
TV License - £12
Sky £53 sorry but you need to ditch this now - thats a £636 per year saving
Phone - £40 look into a cheaper provider of phone, TV and broadband for instance with Virgin you get the lot for £30 per month + calls - not sure what Sky charge for their package
Food - £400 how many is this for ? if it is for two aim to cut it in half in the first month then half again in the second month - families are living on less than £100 per month by using tips from the Old Style Board
Car Insurance - £50 shop around for the cheapest quote by using links from this website and go through Quidco if possible for cashback
Petrol - £200 always shop around for the cheapest and limit usage - walk or take a bike now its nicer weather
Life Insurance - £55 is this the cheapest for the cover provided
Contents - £40 shop around for the cheapest using links from this site and use Quidco to change for cashback
Gym - £35 sorry but this is also going to have to go - exercise from home and go out for a jog - thats a £420 per year saving
Internet - £30 see comments next to 'phone'
Car Insurance - £50 as with all insurances shop around for cheapest using links from this site and go through Quidco to get cashback
Car - £290 can you sell this and get a cheaper one ?
Gas Plan - £23 do you really need this ?

Total so Far = £2,308

Cards

Egg - £200
TSB - £143
Debenhams - £70
Virgin - £70
Halifax - £35
Next - £225
Studio Catalogue - £15
Argos Additions - £15
Vertbaudet - £20

New Total = £793

Total = £3,101

Total Income = £3,052

Leaves = £0 , minus £49

So as you can see with all the plastic its a real battle we have now and the card payment are simply minimum payments!

Credit Card Details

Egg - Balance = £10,321 - Limit = £10,000 (cant find APR rate?)
TSB - Balance = £6,850 - Limit = £7,200 (APR 7.9%)
Virgin - Balace = £3,100 - Limit = £3,200 (APR 15.0%)
Next - Balance = £2,250 - Limit = £2,300 (APR 26.49%)
Debenhams - Balace = £1,400 - Limit = £2,000 (cant find APR rate)
Vertbaudet - Balance = £500 - Limit = £1,300 (Monthly interest 2.2%)
Studio Catalogue - Balance = £400 - Limit = £400 (Monthly interest 2.6%)
Halifax - Balance = £1,700 - Limit = £1,700 (interest free so far)

I hope this makes sense and would appreciate any help you could offer!

Thanks in advance.

Skytrax2

sorry I cant be of any more help but Im sure others will be along with more advice

all the best and good luck - OOPS

Kiwi

Hi, skytrax2, haven't got a whole lot to offer, but support. I'm not sure whether I'm being an egg or not but it looks like you've included your car insurance twice. If so might solve your deficit, all bar a pound, so at least then you're not starting the month in minus. Good luck

magentadreamer

Skytrax2 wrote: »

Hi,

Thanks for the advice, here is my Statement of Affairs, dont laugh!

Monthly Incomings:

My salary - £1,835
Partners salary - £1,100
Benefits - £117

Total - £3,052

Monthly Outgoings:

Mortgage/Rent - £780
Council Tax - £180
Gas - £40Is this the cheapest supplier for you - look at switching
Electric - £30Again look at switching
TV License - £12
Sky £53If you're still in the 12 month contract see if you can reduce it down to a basic package if you are out of the 12 moth contract then ditch it - it's £636 a year you could be chucking at debts
Phone - £40Is this just for a landline or does it include mobiles? Look at changing providers -you might be able to get a landline plus your broadband and unlimited calls for under £40 - I pay NTL £30 a month for my landline,freecalls,broandband and my TV
Food - £400How many people is this for? You can cut this back by budgeting/meal planning etc
Car Insurance - £50s this the cheapest you can get? Have you looked at switching - try some of the links via quidco -you get cashback as well
Petrol - £200Is this for one car? Can you cut back on this?
Life Insurance - £55gain have you looked for cheaper cover?
Contents - £40Try switching via quidco as you might find it cheapert/COLOR]
Gym - £35Can you get an excerise bike or jog
Internet - £30See notes for phone
Car Insurance - £50Are you running two cars??
Car - £290
Gas Plan - £23Is this to cover your boiler etc? Do you really need it? Have you looked at cheaper cover?

Total so Far = £2,308

Cards

Egg - £200
TSB - £143
Debenhams - £70
Virgin - £70
Halifax - £35
Next - £225
Studio Catalogue - £15
Argos Additions - £15
Vertbaudet - £20

New Total = £793

Total = £3,101

Total Income = £3,052

Leaves = £0 , minus £49

So as you can see with all the plastic its a real battle we have now and the card payment are simply minimum payments!

Credit Card Details

Egg - Balance = £10,321 - Limit = £10,000 (cant find APR rate?)
TSB - Balance = £6,850 - Limit = £7,200 (APR 7.9%)
Virgin - Balace = £3,100 - Limit = £3,200 (APR 15.0%)
Next - Balance = £2,250 - Limit = £2,300 (APR 26.49%)
Debenhams - Balace = £1,400 - Limit = £2,000 (cant find APR rate)
Vertbaudet - Balance = £500 - Limit = £1,300 (Monthly interest 2.2%)
Studio Catalogue - Balance = £400 - Limit = £400 (Monthly interest 2.6%)
Halifax - Balance = £1,700 - Limit = £1,700 (interest free so far)Have you rang any of the cards to ask for a cheaper APR?

I hope this makes sense and would appreciate any help you could offer!

Thanks in advance.

Skytrax2

Hope this helps and good luck!

webitha

well there is nowt more i can add from the great advice that youve already got apart from for you and your DW to keep a spending diary and write in it EVERYTHING no matter how small or inexpensive you think it is and then you will see where else you can cut back

i did and it was a real eyeopener i put all in mine for about 2 months including choc bars and mags and the diary soon curbed that spending as well curbing a few ponds off my hips lol

good luck and come back to us with what your going to do and dont worry noone is laffing we are all here for the same reason