Help and advice needed please!

tindalletta

Hi there. I’m hoping someone might be able to give me some advice about my issues.

My husband and I between us have nearly 13K in credit card debt, he has a loan for about 3K (1 payment in arrears) , I have one for 8K (1 payment in arrears), about 1K in catalogue debt, and we are in arrears on a couple of our home bills including finance we took out on a sofa of which the final payment is in Dec. None of the arrears are on things like rent or council tax, these are all up to date, its things like car insurance (which I owe 1 payment on), TV licence which we owe 2 payments on, telephone which we owe 1 payment on, gas we owe £300 on, and we owe some money to a friend and a family member.

Basically, we have to find £320 + £48 + £100 + £230 by 28th October to clear our arrears on our loans and get our bank stuff back on track. It doesn’t sound like a great deal of money, but my husband gets paid £373 weekly and obviously we have other bills due in this time. If we let those slide, then we will be in arrears with those as well.

We both earn a decent salary and we both have second jobs, but with the arrears and the ongoing payments, we are just about keeping our heads above water. We have ZERO spare money for anything and some weeks even food is a struggle. One of the major problems is the fact my husband gets paid on a Friday each week. This obviously means its not on the same date each month, so it means that budgeting and setting up direct debits is really confusing. Plus we have to spread our payments out which I’m finding really hard to keep track of.

Can anyone let me know what might be my best course of action? I just want to clear the arrears, get back on track and pay my bills on time so we don’t get ourselves in this situation again. Thanks in advance.

kazwookie

tindalletta wrote: »

Hi there. I’m hoping someone might be able to give me some advice about my issues.

My husband and I between us have nearly 13K in credit card debt, he has a loan for about 3K (1 payment in arrears) , I have one for 8K (1 payment in arrears), about 1K in catalogue debt, and we are in arrears on a couple of our home bills including finance we took out on a sofa of which the final payment is in Dec. None of the arrears are on things like rent or council tax, these are all up to date, its things like car insurance (which I owe 1 payment on), TV licence which we owe 2 payments on, telephone which we owe 1 payment on, gas we owe £300 on, and we owe some money to a friend and a family member.

Basically, we have to find £320 + £48 + £100 + £230 by 28th October to clear our arrears on our loans and get our bank stuff back on track. It doesn’t sound like a great deal of money, but my husband gets paid £373 weekly and obviously we have other bills due in this time. If we let those slide, then we will be in arrears with those as well.

We both earn a decent salary and we both have second jobs, but with the arrears and the ongoing payments, we are just about keeping our heads above water. We have ZERO spare money for anything and some weeks even food is a struggle. One of the major problems is the fact my husband gets paid on a Friday each week. This obviously means its not on the same date each month, so it means that budgeting and setting up direct debits is really confusing. Plus we have to spread our payments out which I’m finding really hard to keep track of.

Can anyone let me know what might be my best course of action? I just want to clear the arrears, get back on track and pay my bills on time so we don’t get ourselves in this situation again. Thanks in advance.

HI

Fill in a SOA so we can see where your money goes, then we can offer advise.

http://www.stoozing.com/calculator/soa.php

tindalletta

This doesn't look too bad, but it doesn't take into account that some of the payments are in arrears.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1292
Partners monthly income after tax....... 1492
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 3084

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 63.5
Gas..................................... 63.5
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 0
Mobile phone............................ 95
TV Licence.............................. 12.12
Satellite/Cable TV...................... 70
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 57
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 35
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1564.12


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan (me)..............8856.34...320.......NaN
Natwest Loan (Husband..........2543.35...224.......0
Santander Credit Card..........3500......140.......0
DFS Sofa Finance...............287.1.....57.42.....0
Simply Be......................200.......15........0
Very (Husband).................447.56....45........0
Very (me)......................602.77....75........0
Capital One Credit Ca..........200.......10........0
Natwest Credit Card............1260.33...40........0
HSBC Credit Card...............6000......160.......0
Total unsecured debts..........23897.45..1086.42...-


Monthly Budget Summary
Total monthly income.................... 3,084
Expenses (including HP & secured debts). 1,564.12
Available for debt repayments........... 1,519.88
Monthly UNsecured debt repayments....... 1,086.42
Amount left after debt repayments....... 433.46

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -23,897.45
Net Assets.............................. -22,397.45

John1993_2

Two obvious things on there are £70 per month for satellite TV, and £95 a month for mobile phone.

if you cancel the TV, and drop to a pay as you go phone contract then you can drop £150 a month straight away.

One thing I'd question is whether you've had a major change of cisrcumstances recently. It looks as though you must have, as with £1,500 expenses per months, and £3,0000 income, you should have some pretty decent savings, rather than large debts. Can you maye expain this disparity, as spending only half your wages does not lead to £24,000 of unsecured debt.

Even with your currrent debt payments, you claim to have nearly £500 per month spare, so how are yu getting into arrears?

tindalletta

As I've said, this budget does not take into account the fact that some of the payments are in arrears and so they are actually more than they say.

Thanks John1993 for making me feel even more bleak about the situation, I came on here for help, not criticism. I'll go away now....

John1993_2

tindalletta wrote: »

As I've said, this budget does not take into account the fact that some of the payments are in arrears and so they are actually more than they say.

Thanks John1993 for making me feel even more bleak about the situation, I came on here for help, not criticism. I'll go away now....

Er, what?

I've given you a couple of pieces of decent advice, and asked for some clarification, as at the moment your SOA and your situation don't seem to tally. I (and others) can't give you the best advice if the information that you have given isn't complete.

So please, don't flounce off, but instead please do let us know what the missing pieces are, or just explain if the debts are from previous events that don't need to be taken into account any more.

Becoming debt free is possible, and you can do it, but it's going to take work, and part of that is you having to be really honest with yourself about how the debts happened. My point is just that that's not clear from this SOA.

~Beanie~

tindalletta wrote: »

This doesn't look too bad, but it doesn't take into account that some of the payments are in arrears.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1292
Partners monthly income after tax....... 1492
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 3084

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 63.5
Gas..................................... 63.5
Oil..................................... 0
Water rates............................. 46
Telephone (land line)................... 0
Mobile phone............................ 95 - This is massive, you can cut this
TV Licence.............................. 12.12
Satellite/Cable TV...................... 70 - Do you really need it?
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 0 - Should be something here
Car Insurance........................... 57
Car maintenance (including MOT)......... 0 - Should be something here
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 35
Haircuts................................ 0 -Never get a haircut?
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1564.12


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Natwest Loan (me)..............8856.34...320.......NaN
Natwest Loan (Husband..........2543.35...224.......0
Santander Credit Card..........3500......140.......0
DFS Sofa Finance...............287.1.....57.42.....0
Simply Be......................200.......15........0
Very (Husband).................447.56....45........0
Very (me)......................602.77....75........0
Capital One Credit Ca..........200.......10........0
Natwest Credit Card............1260.33...40........0
HSBC Credit Card...............6000......160.......0
Total unsecured debts..........23897.45..1086.42...-


Monthly Budget Summary
Total monthly income.................... 3,084
Expenses (including HP & secured debts). 1,564.12
Available for debt repayments........... 1,519.88
Monthly UNsecured debt repayments....... 1,086.42
Amount left after debt repayments....... 433.46

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -23,897.45
Net Assets.............................. -22,397.45

You should have £433.46 left over each month, do you? You have missed car expenses out, you need to budget for maintenance and road tax.

Try keeping a spending diary and writing down everything that you spend for a month, that will help you see where your surplus is going.

You should also show the arrears otherwise we are not getting a clear picture.

sourcrates

tindalletta wrote: »

As I've said, this budget does not take into account the fact that some of the payments are in arrears and so they are actually more than they say.

Thanks John1993 for making me feel even more bleak about the situation, I came on here for help, not criticism. I'll go away now....

I don't think he was trying to criticise you at all, just wanted clarity on the figures you have given us, you must understand we know nothing of your situation so in order to offer any advice you have to give us concise figures or else any advise given may not be appropriate and therefore a waste of everyone's time, I know talking about your finances with strangers can be daunting but please be assured most people here are here to help:)

Heffi1

tindalletta wrote: »

As I've said, this budget does not take into account the fact that some of the payments are in arrears and so they are actually more than they say.

Thanks John1993 for making me feel even more bleak about the situation, I came on here for help, not criticism. I'll go away now....

I think John1993 was not being harsh, he is maybe pointing out the obvious to other people, that you have not yet looked at and realised you are spending so much on TV and Phone.

Are both of these absolute essentials in your life...

Or are you maybe not prepared to look at the real picture in front of you and make some difficult changes.

Once you are free of the debt, you can spend as much as you like on a fancy phone.

By the way it does not make super calls, or send super texts, or anything that a more modest phone can do, you have been conned by the advertising if you think you NEED it in your life. If you have SKY then you must have a home phone, so a mobile is not a necessity, rather it is a luxury that we tell ourselves we cannot live without.

That may be very harsh to read and I do not want to upset you, but you need to look at where you are spending your money.

You may be meeting the priority bills now, what happens when you can't?

mardiemare2008

tindalletta wrote: »

the fact my husband gets paid on a Friday each week. This obviously means its not on the same date each month, so it means that budgeting and setting up direct debits is really confusing..

I work for a gas and electricity company. We allow Weekly Direct Debits. So you can pay a small amount each week and you can set it to come out on each Friday (Just divide your normal monthly payment by 4)

We also have an option for a 4 weekly DD, this will again ensure money is always taken on a Friday.

tindalletta

~Beanie~ - No, I don't get haircuts! I can't afford to!
The Sky figure does seem high, but its for the TV, Phone, Broadband etc, not JUST the TV. Everyone telling me to cancel the Sky and get a PAYG mobile, have you ever tried to get out of those contracts? Even if I got a PAYG mobile, I'd still have to pay the contract so I would essentially be ADDING to my outgoings.