Loads of Debt - Nowhere to turn

almondp

happy_bunny wrote: »

Do you know when this was?

If not, you could find out via a SAR.

You may be able to complain and potentially get some interest back.

SAR?

is it worth ringing 3 credit card companies and asking for a rate reduction if they reduce the APR? Will they do this?

merlot123

Are you entitled to claim child benefit, your take home salary seems to be over the £50k allowed.

https://www.gov.uk/child-benefit-tax-charge

merlot123

I see from your first post you owe your family approx £15k, where is this in the SOA?

I see you regularly go over your overdraft as you have high fees, where is the overdraft in the SOA?

More questions rather than solutions at this point, but really need full picture. Are all these debts personal and not business ones?

merlot123

Ok, had a quick look at SOA.

Your grocery bill is high
Your mobile bills are far far too high
What's AV streaming? Do you really need it
I see you have Netflick and spotify - do you really need them (breaking bad is excellent though)
Gym membership is too high (I pay £25 per month and get use of all facilities for that, pool etc, it is a brand new council run one, but excellent)
£9.00 milkman, why? Use the supermarket?
Equifax - again Why?
Work lunches need to go
Boiler cover - is this really necessary?
Washing machine cover - you can buy a new one for a few hundred pound - put the £15 per month in an Isa
Birthdays- £60 - huge amount
Bank charges of a £100 is ridiculous, you need to address this urgently. Are you sure you cannot put your overdraft onto a low balance card and cancel the overdraft - instant saving of £100 per month

You have a very good income, you are spending it on unnecessary things at this time, once you paid the debt you can have the all singing and dancing mobile contract and gym membership, but for now reduce them to a reasonable amount.

Easier said than done though.
merlot123

GettingOrganised

Hi almondp, you're borrowing options seem to have dried up and you are worried you have nowhere to turn. But, in reality, now you have to turn to yourself. I didn't take any action to start reducing debt until I was no longer able to borrow. You have a very healthy SOA, but as you've already stated you are in your overdraft regularly, so something is going wrong. I know it doesn't feel like it now, but not being able to get further credit at this time is a blessing - start budgeting and throw as much as you can at clearing that debt. You can do it, but you will need to be focused and strict with yourself in the short term.

merlot123

almondp wrote: »

Stoozing SOA posted Above.

£600 for groceries - I agree - need to reduce this. I'll speak to my wife - who does all the food shopping.

My wife works at my company 3 days a week. We use her wages to pay for a nanny to look after the 2 kids during those 3 days. Her wage £1200 pretty much ALL goes on the nanny.

We decided on a nanny - as over the course of 1 year it would cost about the same as before-school+after-school+holiday clubs.

In september both kids will be in school and preschool so nanny is going and child care cost will be halved to £600.

Is this £600 for the baby you have on the way according to your personal profile? Or is for holiday clubs, before and after school clubs for the children.

snowcat75

May sound hash but why does your wife work if more money goes on childcare than the income from the job?

almondp

snowcat75 wrote: »

May sound hash but why does your wife work if more money goes on childcare than the income from the job?

Not harsh. Ask away!

My wife helps out in my web design business as a studio manager. It's good for her to know how the business works and where money comes from etc. It's good for me to have her support in the business. If it was any old job - then things would be different. We also get to use up her tax allowance.

Anyway, baby no.3 is on the way and by September we won't need a nanny because our youngest will be in Pre-school and our 4 year old will be in school. So we'll only need to pay around £600 for pre-school.

almondp

merlot123 wrote: »

Is this £600 for the baby you have on the way according to your personal profile? Or is for holiday clubs, before and after school clubs for the children.

£600 will be for pre-school as our daughter will be 2. 3 is when they get free sessions, so it's until then.

My wife will do drop offs and pick ups. So no need for before/after school clubs.

almondp

GettingOrganised wrote: »

Hi almondp, you're borrowing options seem to have dried up and you are worried you have nowhere to turn. But, in reality, now you have to turn to yourself. I didn't take any action to start reducing debt until I was no longer able to borrow. You have a very healthy SOA, but as you've already stated you are in your overdraft regularly, so something is going wrong. I know it doesn't feel like it now, but not being able to get further credit at this time is a blessing - start budgeting and throw as much as you can at clearing that debt. You can do it, but you will need to be focused and strict with yourself in the short term.

Completely makes sense!! Thanks. I think i'm beginning to realise that "I need to turn to myself" rather than looking for further borrowing e.g debt consolidation. Although I am paying around £400 in interest alone each month - so it would make sense to reduce that somehow if possible no?

I know my biggest problem at the moment is me going over my overdraft (£25 each time) - but if I can reduce my outgoings then I can hopefully stay within the limit and get my account back in order - long enough (6 months) to potentially get a home-owner loan (?!?)