HELP - desperate!

allwashedup

Hello everybody,

We've been reading the forum and are so inspired by what everybody else has done to reduce their debts and now its our turn!! We've had our light bulb moment and now we need to do something about it all! Have just spent the morning working out all the debts as far as we can and now we need your help!! Here is our SOA:

INCOMINGS:

Salary: £1436.16/month
Child Tax Credit: £42.23/month

TOTAL: £1478.39

OUTGOINGS:

Mortgage: £818.56/month
Redundancy Insurance: £20.90/month
Council Tax: £162/month
TV Licence: £11.37/month
Gas: £63.66/month
Electricity: £67/month
Water: £53/month
Broadband: £17.99/month
02: £35/month approx (finishes at end of this month)
3 mobile: £60/month approx
Pension 1: £86.18
Pension 2: £28.56
Life policy: £4.84
Loan: £200/month
Petrol: £50/month
M.O.T. (monthly average):£15
Car insurance: £33
Road tax: £10
Food: £400

TOTAL: £2137.06 BEFORE paying any debts!!

THESE ARE OUR DEBTS:

CREDIT CARDS:
First Direct: £11,833 - rate 17.9%
Citi: £5,287 - rate 21.95%
Capital One: approx £1,200 - not sure of rate - will update
MBNA: approx £7,000 - again not sure of rate
Halifax: Approx £7,000 - again not sure of rate
Lloyds TSB: £7,098 - rate 1.527% (monthly)
Goldfish: £3230 - rate 1.385% (monthly)
Morgan Stanley: £2297 - rate 1.597% (monthly)
Barclaycard: £589 - rate 17.9%
GM card: £3713 - rate 15.9%

STORECARDS:
M&S Storecard: approx £700 - will update with rate
Debenhams Storecard: £83.12 - rate 26.478%

LOANS:
LLoyds TSB - approx £8,000 - will look up exact amount and rates.

So TOTAL DEBT of approx £60,000 :eek:

As you can see we can't even cover basic living expenses every month, let alone make a dent on the loans. I have an overdraft with a limit of £3500, of which I am using about £2,000 just to make minimum payments every month.

I really don't know what to do or where to turn - there doesn't seem to be a way out of this. Please help me!

Thanks in advance.

Burlesque_Babe

Hi there - gas, electric and water stand out for me as being high as well as food. How many people are you feeding? The Old Style board will help with the shopping, the Supermarket Challenge is great for reducing your monthly shopping costs.


Could you swap to a PAYG? Or call 3 and ask to go onto their lowest tariff?

I called all my CC companies and asked the APR (even though I knew how high they were) I then pretended I was shocked and said I would have to move unless there was anything they could do. Barclaycard cut the rate from 29.9% to 14.9 and Capital One cut both cards from over 30% to 12.9%.

Worth a few calls!

Good luck and welcome -you'll find loads of help here.

shell_girl

Welcome to the boards and congratulations- you've taken the first steps toward a debt free future. There will be plenty of people along soon with advice re. rates and balances for your debts, but the first thing to do is get you living within your income- this is essential! The usual advice applies (you'll have seen this on many threads but it never hurts to say it again) shop around for gas and electric. When your 02 plan finishes check out Orange- for any mobile phone plan above £30 per month they'll throw in free broadband. So pick a plan that's £30 and save £5 per month straight away, and then £17.99 on your broadband.

How many of you are there? £400 is a huge food bill for a not huge family- where are you spending the bulk of your food budget?

Are you both working or is one of you at home with the kid/s?

Sorry to sound nosy- I promise I only want to help.

alwaysonthego_2

Do you get working tax credits and child benefit each month?

moonlightpjs

Hi there and welcome

Well done for having your LBM and posting on here:T

I'm not so good with SOA's but I'll have a go. Somebody will be along soon with more and better advice so hand fire. Here are the few things that spring to mind so far

INCOMINGS:

Salary: £1436.16/month
Child Tax Credit: £42.23/month

TOTAL: £1478.39

OUTGOINGS:

Mortgage: £818.56/month
Redundancy Insurance: £20.90/month
Council Tax: £162/month
TV Licence: £11.37/month
Gas: £63.66/month -you need to try and reduce this, try Uswitch and go through Quidco for cash back
Electricity: £67/month - As above
Water: £53/month- Can you go on rates if this is a meter
Broadband: £17.99/month
02: £35/month approx (finishes at end of this month) - obvioulsy you need to cancel this when you can
3 mobile: - £60/month approx as above and see about reducing to a cheaper package if at all possible
Pension 1: £86.18 - at the moment you need to stop paying into this, you have to pay your debts first
Pension 2: £28.56 - as aboveLife policy: £4.84
Loan: £200/month - Is this part of the debts you have listed
Petrol: £50/month
M.O.T. (monthly average):£15
Car insurance: £33- again have a look at Quidco and see if you can get any cheaper with cashbackRoad tax: £10
Food: £400 - how many people is this for

As I say, there will be more experienced people along soon but well done for facing up to the fact thatyou have problems - we are all in the same boat so don't feel alone. xx

Bestthingsinlifearefree

Hi AWU,

welcome to MSE

Firstly there is always a way forward and secondly you have taken a step in the right direction by posting your SOA.

Are you both working ?

water, mobiles and food seem high.

Mortgage is quite high. Is there equity in the house? Would selling the house, using any "profit" to pay debts and renting a cheaper place be an option ?

Keep posting and stay as positive as you can.

I wish you well.

Best,

moonlightpjs

Sorry, me again. Is your salary just for one of you - could you claim WTC - have a look at https://www.entitledto.co.uk to see if you are entitled to any more help/benefits. It would help if you could tell us how many are in your family etc

cupid_s

Hi there. Welcome to MSE.

Ok firstly do you NEED a car? It's costing you a fair amount, and you could maybe pay some debt off outright if you sold it.

Also my gas and electricity is £65 a month for both. And I have one bedroom where I have 7 100W spotbulbs and 3 uv lights on for 14 hours a day. Shop around and really try to cut down on the amount of power you're using.

Your mobile phones are very very expensive. DH and I spend £20 per month between us on our mobiles now. The O2 payg is good.

Your water is also expensive to me. Do you have a meter?

Also join some survey sites and cashback sites - especially if you might be switching gas/elec etc. You get rewards for that.

However the main thing I see is that your mortgage is taking up about 55% of your take home salary. That is a lot. Is your mortgage interest only? If not can you swap it so it is.

And could you get a part time job to earn more. Just for a short while?

Good luck

moonlightpjs

It may also be useful to give CAB, CCCS or Payplan a call, they will ask you also for a SOA (as you have posted) and will be able to advise what your options are - eg a Debt Mangement Plan which will mean you paying them a set amount according to your budget (less than the current repayments are) and they then pay your crreditors out of this money meaning you will have enough to live on but obviously your debts will take longer to pay back. They also, in most cases, freeze interest and charges. The above 3 are free of charge, will not charge you for advice and if applicable, will not charge for a DMP. This might not be what you want so forgive me if so.

david_hellier

Will look at later.

jak

Try living off your cupboards for a while. Food bill is very high. Try and buy reduced food when you can and freeze it. Also not much difference in tins of beans and stuff so buy the cheapest you can find. Look in your local £ shop for stuff live sun dried tomatoes. Get huge bag of potatoes and find 50 different but delicious potatoe recipies. Amazing what you can do with a potatoe!
Good luck.