Uh Oh We're In Trouble!

NewlyWed_3

albertross wrote: »

Are any of the debts front loaded with interest, so that paying them off early has no impact on the amount of interest you will eventually pay.

What about water rates, council tax etc.. lots of things missing off your list

Where do you get car insurance for £15 pm?

I am not aware if any are 'front loaded with interest' what does this mean?

As stated in my SOA the council tax is paid from my salary as I am employed by the council whom I pay this to, this spreads it over 13 payments as I get paid 4 weekly.

I got my car insurance for £15 pm from Post Office. Same insurer as the AA were providing me with only I get £50 cash back in 28 days. As my work only takes me to my local area my annual mileage is very low and thus my fuel and servicing costs.

I feel that I must be missing something if you can see alot of things missing. I do my shopping fortnightly at either iceland or lidl and therefore save a fortune and my shopping budget also includes haircuts and alcohol.

NewlyWed_3

I'll look into that, thanks.

Our water rates are included in the council tax and not a seperate account. (Is this because we are in Scotland?)

I don't have much to show as most of this was used for decorating the flat. I'm contemplating selling my car but I think I'd end up spending more on public transport.

I just feel like a failure.

hypno06

No, not a failure - you have not failed, you are succeeding in doing something about your debts.

Snowballing is great IMHO and you achieve two main things - paying off your debt as quickly as possible, and along the way re-educating yourself into what is important in terms of spending money. Priorities change and good habits are formed so that when you are debt free you can stay that way.

How can that possibly be failure!

Keep strong, you have made a big step, stay with us and we will help you through. People on here are fab and will be with you every step of the way x

NewlyWed_3

hypno06 wrote: »

No, not a failure - you have not failed, you are succeeding in doing something about your debts.

Snowballing is great IMHO and you achieve two main things - paying off your debt as quickly as possible, and along the way re-educating yourself into what is important in terms of spending money. Priorities change and good habits are formed so that when you are debt free you can stay that way.

How can that possibly be failure!

Keep strong, you have made a big step, stay with us and we will help you through. People on here are fab and will be with you every step of the way x

Wow! You made me cry! :A

Thank you so much!!

hypno06

**hypno passes over a tissue**

NewlyWed_3

Yes completely. He works every hour god sends so we hardly see each other and then we never have the money to do anything together. We both want a better life.

Should I write to my creditors to let them know I am having trouble or just try plain snowballing? I'm not sure what I'd write to them!

hypno06

I would try snowballing first, if you think that you can make a go of it.

Once you let on to your creditors that things are tight they may try and push you into something you later regret.

Of course, if things are more than tight, then you need to let the creditors know, but IMHO if snowballing is a distinct possibility, then focus on that for the time being, see what difference it is making over the next few weeks and months and then make any changes then.

I find that snowballing gives me control. Strange, but it does, and in this situation, control is something that I really need.

(this is only my experience though, others may well have other valid advice)

NewlyWed_3

albertross wrote: »

Have you put all the figures in a spreadsheet, so that you can see where the money is going etc..

Yes. I've got a spreadsheet of when we get paid, whats in the bank, whats spent, what direct debits come off on what date and now updated it with the new snowballing figures. It keeps us really tight for about 6 months and then I can start to see things easing up. We really have to stick to a very tight budget and if I take my hubby's bank card off him he'll do better!!

If we really knuckle down by the middle of next year we should see a huge difference. :T

I'm worried that my family will find out about our mess and will have to think up reasons not to go to family events etc.

purple_blue

hi newlywed I dont know if this might help you could write to each of your debtors and request if they could put a hold on the interests and charges if you have any and agree to a comfortable monthly payment. How ever this might affect your credit rating. I found this really helped with my debts and can actually see them going down instead of going up.
See what you can cut down on I.e phone calls, if you have cable or sky, cut down packages, look for bargins while food shopping. Those type of things. Its a bit depressing but when you stat seeing your debts going down you'll feel better and remember its not forever.

newlywed

I struggled for the first 9 months of our marriage because OH is self employed and had no work. We also had done up our flat etc.

I'm just starting a DMP with CCCS because although I have tried lots of suggestions on here, it has reduced the rate my debt was increasing at, but I still haven't been able to reduce it at all. After months of trying and worrying I have finally decided to accept that I can't deal with it on my own and need help.

Now, I wish I had done it 3 months or more ago as then I would have had a little put aside for my MOT and car tax - unfortunately the car is beyond hope and we are spending an absolute FORTUNE on buses in comparison.

Try your best to reduce your debt, do everything you can think of and everything you read on here. Although I know my credit rating will be ruined by the DMP and reduced payments - it isn't that great at the moment and I can't get any more credit. We were at the point where if we paid all the minimum payments we couldn't afford food and petrol without using credit again. If you get to the point where the only thing going on your credit cards is food and essentials to live - then go to CCCS and ask for help.

They don't judge, they are really nice on the phone. Much of it you can do online if you don't want to ring them.

We're coming up to our first year anniversary and I'm gutted that we probably won't have enough money to even get a travelodge room for the weekend. We have no car (mine failed MOT and is too old to try and fix all the rust) so that limits what we can do and where we can go and buses are costing us a fortune, so any spare money is going on travel when it should have gone on celebrating our first year of marriage.

Don't let it get that bad - it's really quite depressing!


Edit: Hope not too many get confused by the similar names!!! I'm not the OP.