StressedStephs Fight against debt..Again!

StressedSteph

Morning DD,

Well I had THE CHAT with hubby last night. To say he was abit astounded was an understatement .

He figured out that we have accrued £5,000 per year. This is taking off the £2500 that the car repairs cost us. Eeeeek.

I felt totally rubbish saying to him that it was just living beyond our means and I had no clue exactly what it had gone on.

He seemed to think that a loan was the only way out, I didn't dare tell him that the loan option was gone . He didn't think we could budget any more than we already do, but I said to leave it with me. Me not being in total control of food & clothes shopping was a large part so I will budget down to the last penny.

I did also say that if I wanted to buy anything that I would run it past him, even something silly for £5, as its lots of those little things that REALLY add up over a month.

I have done my SOA. This is before I tackle cutting it down some more.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 200
Partners monthly income after tax....... 2500
Benefits................................ 704
Other income............................ 0
Total monthly income.................... 3404
Monthly Expense Details
Mortgage................................ 701
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 190
Electricity............................. 110 (lighting & oven)
Gas..................................... 0
Oil..................................... 100 (2000 litres per year)
Water rates............................. 74 (Small Farm)
Telephone (land line)................... 25 (BT Internet included)
Mobile phone............................ 60 (2 mobiles)
TV Licence.............................. 12.12
Satellite/Cable TV...................... 45
Internet Services....................... 0
Groceries etc. ......................... 350
Clothing................................ 30
Petrol/diesel........................... 215 (Car & Work Van)
Road tax................................ 42 (Car & Work Van)
Car Insurance........................... 50 (Car & Work Van)
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 56 (Small farm)
Contents insurance...................... 0
Life assurance ......................... 101 (2 Life,Crit ill & fam ben)
Other insurance......................... 26.99 (Sickness cover)
Presents (birthday, christmas etc)...... 65
Haircuts................................ 0
Entertainment........................... 85 (DH £20 pw skittles)
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2358.11

Assets
Cash.................................... 0
House value (Gross)..................... 360000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 362000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(701)......0
Total secured & HP debts...... 135000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Littlewoods....................852.4.....125.......0
Next...........................1972.19...100.......0
Virgin Credit Card.............4454......150.......0
Barclays Overdraft.............3000......123.......0
Barclaycard....................1000......30........0
Co-op Credit Card..............1853......84........0
Tesco Credit Card..............5336......130.......0
Total unsecured debts..........18467.59..742.......-

Monthly Budget Summary
Total monthly income.................... 3,404
Expenses (including HP & secured debts). 2,358.11
Available for debt repayments........... 1,045.89
Monthly UNsecured debt repayments....... 742
Amount left after debt repayments....... 303.89
Personal Balance Sheet Summary
Total assets (things you own)........... 362,000
Total HP & Secured debt................. -135,000
Total Unsecured debt.................... -18,467.59
Net Assets.............................. 208,532.41
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Have no clue on interest rates at the moment so will have to tackle calling them all to ask. Littlewoods is 0%, don't know about Next.

Let me know what you think xxx

NinjaSavingKat

...Morning Steph...[STRIKE]ahem..... has there been a chat with hubby yet?[/STRIKE]...reading the above right now. (Posting cross over)...:o

Right... So what do you have in mind? Have you a spend diary that you can carry with you at all times? How much is your food budget - that might be one of the areas that you could cut down.

Clothes shopping is out for good. No more for you, charity shops for the kids.

Is hubby for the loan idea only or is he open to see what changes you could make in say 6 months to see how you fare?...

Have you done a snowball calculator yet...? And is the £742 spread to all creditors or just a few ...

Sorry about all the questions...

NinjaSavingKat

StressedSteph wrote: »

Have no clue on interest rates at the moment so will have to tackle calling them all to ask. Littlewoods is 0%, don't know about Next.

I took the liberty of punching in all your debts to a snowball calculator.

Told it your absolute total per month towards debts "could be" £850.

Put Littlewoods at 0% APR and the rest on 22% as worst case scenario.

It says you could be debt free in March 2016.

Thats 2 years and 4 months. And you were thinking 12 years was a better option?

The sooner you figure out the APR's... then move as many as possible ( watch out for "balance transfer fees" as well as the current offer ) and hit the highest one possible the better...

Awaiting further with baited breath.... You CAN do this Steph....

StressedSteph

NinjaSavingKat wrote: »

...Morning Steph...[STRIKE]ahem..... has there been a chat with hubby yet?[/STRIKE]...reading the above right now. (Posting cross over)...:o

Right... So what do you have in mind? Have you a spend diary that you can carry with you at all times? How much is your food budget - that might be one of the areas that you could cut down.

Clothes shopping is out for good. No more for you, charity shops for the kids.

Is hubby for the loan idea only or is he open to see what changes you could make in say 6 months to see how you fare?...

Have you done a snowball calculator yet...? And is the £742 spread to all creditors or just a few ...

Sorry about all the questions...

Morning Kat

I put my food budget down at £80 per week. I did used to have it at £50 but found it REALLY hard, so was trying to be more realistic. Do you think I should try harder?

I have abit of a confusion with food shopping. It is a 36mile round trip for me to visit a L1dl and veg market. So I tend to think I am better off paying the £4 T#sco delivery and getting my food that way. BUT....I did go with MIL to L1dl and she got a huge bag of shopping for £30, so maybe I ought to risk the diesel cost and go there. Can't decide!!.

Hubby did want the loan, as he thinks we will never beat the debt otherwise (He might be right!).
He would never say it, but think he feels like he works really hard (builder) and can't believe he cannot have that Skittles night out etc as a reward. Also I think he feels like because we haven't had loads of fun spending this £18,000 debt and its not really his fault we accrued it, he now doesn't want to make life even harder trying to get rid of it.

He hasn't said any of the above, but that's how I think he feels.

Do they sell childrens clothes in charity shops? Think I could visit car boots sales in the spring, I am sure they sell childrens clothes cheaply on there.

I did do an Snowball and I put all debts down as 18% with £600 per month and got July 2016. Not great but better than 12 years I guess xx

StressedSteph

NinjaSavingKat wrote: »

I took the liberty of punching in all your debts to a snowball calculator.

Told it your absolute total per month towards debts "could be" £850.

Put Littlewoods at 0% APR and the rest on 22% as worst case scenario.

It says you could be debt free in March 2016.

Thats 2 years and 4 months. And you were thinking 12 years was a better option?

The sooner you figure out the APR's... then move as many as possible ( watch out for "balance transfer fees" as well as the current offer ) and hit the highest one possible the better...

Awaiting further with baited breath.... You CAN do this Steph....

I put £600 so that there was still maybe a little bit of breathing room, as also need to catch up with arrears.

I bit the bullet this morning and did what I NEVER do, and rang up the mortgage company to explain why Novembers payment hasn't gone out. I explained that I thought I could make Novembers payment on the 30th but was then worried that December payment which is on the 1st wouldn't go.

They were really kind and advised that making Novembers payment on the 30th would be great as saves effecting my credit file and he would cancel my December 1st DD, so that I don't get bank charges and I was to ring up on that day to update them with a date in December that I could make the payment.

Phew...That has taken a weight off my mind.

Not sure how I am going to pay the credit cards but guess mortgage and council tax are my priorities.

Doubt very much I can do any balance transfers due to arrears on my credit cards.

What do you think I should do about the cards?. If I called them would they agree a lower monthly amount or just be mean to me?.

Thanks for all your help Kat. xxx

NinjaSavingKat

StressedSteph wrote: »

What do you think I should do about the cards?. If I called them would they agree a lower monthly amount or just be mean to me?.

Well done on calling the Mortgage people - see some can be nice.

If you are already paying out over £700 per month why exactly are you dropping that amount now - when you say breathing space - what do you mean?

With CC companies if there is no way you can balance transfer you could ask them when you call to freeze the interest.... I am not sure they will do this but there is no harm in asking. Find out what the interest rates are on all of them first - if you advise them you can no longer makes payment unless the interest is frozen you might be forced into a DMP or some such malarky....

As always be super nice to them ...

The last lady I spoke to on the quiet about her £40,000 debt was killing her. She was trying to save £20,000 to offer them a "full and final" settlement. I told her she needs to speak to them first to see what they would accept as she assumed £20,000 was enough........ they accepted £5000 and are willing to write the rest off.

If you don't ask you don't get!

NinjaSavingKat

StressedSteph wrote: »

I put my food budget down at £80 per week. I did used to have it at £50 but found it REALLY hard, so was trying to be more realistic. Do you think I should try harder?

I have abit of a confusion with food shopping. ....... Can't decide!!.

Hubby did want the loan, as he thinks we will never beat the debt..........

Do they sell childrens clothes in charity shops?

I did do an Snowball and I put all debts down as 18% with £600 per month and got July 2016. Not great but better than 12 years I guess xx

This is a good post. You are trying hard and I am coming from a household with no children and no husband so you are doing very well to even be considering debt-busting.

Please please don't think I am out to tell you what to do, or have a go at you for the incredible efforts you have made already - I just want to give you other things to look at..

July 2016 is still amazing - why are you beating yourself up about this..? Don't be disheartened at all - you will get through this and yes perhaps that £600 might be the better option....

Let your husband have his skittles - it's important. My Dad has a hard job, where he goes door-to-door on his own in all weathers - plants and gardening are his obsession and his way to unwind. My Mum lets him get on with it - he doesn't drink, he's a kind man and it's his outlet. Your hubby needs one to. It's a blessing to have an OH who works hard for his family - let him have the skittles sessions... he will see you are working hard in other areas and will be on board sooner than you know it.

Calculate petrol costs - thats the best way to know. Tesco has everything - Lidl's is a little cheaper in groceries which is why I go there myself.... Could you take it in turns with MIL now and then - or if you are not to embarassed make it a monthly thing..?

Charity shops sell everything. Many items have tags still attached as kiddis grow so fast - the more expensive the area the better the finds.

Food wise with 4 mouths to feed ... How about try it at £70. Thats £280 per month - that is adequate if not a little more so. You can get it down by making your own soups, breads, muffins etc.... The Old Style Board needs to feature high on your list of "must reads" .........

Hope this helps a little!

x x x

StressedSteph

Hi Kat

Think I was working on the £600 as I was trying to realistic, what with wage fluctuations and having no emergency fund etc. I think sometimes I have over-extended my debt busting amount and that might be why we faltered. Not sure.

I have heard about these full and finals before. What do I do, just ring up the cc company and say I am struggling can I offer a full and final amount?. I can't believe they would ever accept less. I am super scared to call them as just imagine a grilling and no help.:eek:

NinjaSavingKat

Steph I haven't had much involvement with this to offer too much advise on this subject - there are a few threads on this and rightly so I would ensure you are in the right place before calling them.

They would accept a payment from a "family member" who was willing to offer 20% in order to help you out and you advise them that accepting this might be better than waiting for you to drop to the "minimum payments" which means they may never see the full amount returned to them. It might be worth cutting their losses it might not.

But defo research this more before making decisions. I will to.

Have you firstly figured out the APR for all the debts..?

StressedSteph

Ok, I called my V1rgin MBNA card to discuss my arrears as I am three months behind with them :eek:.

They have been fantastic. They went through an income and expenditure form with me and have agreed to halve my month minimum payment to £74 and have frozen all fees and interest :T

Apparently its an informal arrangement, and she said if my husbands wages improve next year I was to call up and speak to them about the possibility of offering a full and final partial payment. Unfortunately we haven't got any family to ask for help with that, but just knowing that the interest is frozen is AMAZING..

Feel a lot better about that one now. Just three more to go