Please tell me i'm not a lost cause

12_month_challenge

Thankyou Rosa
I did consider moving the Halifax and closing it however I am scared because that means the balances are rising on the others.
It makes sense I know I am just so overwhelmed by all the high figures

Thankyou again for all your replies

12_month_challenge

Thankyou Theroetica
Both my kids are on low incomes and both will contribute extra when they can.
I suppose I have made it too easy for them aswell.

bargainbetty

12_month_challenge wrote: »

Household Information[/b]

Monthly income after tax................ 1650
Partners monthly income after tax....... 1240
Benefits................................ 0
Other income............................ 200 housekeeping from kids both on low incomes - Even if they are on low incomes, they need to make a larger contribution than £100 pr month. They couldn't live anywhere else on this, so ask them to up it to £150.
Total monthly income.................... 3090

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 489
Management charge (leasehold property).. 0
Council tax............................. 117
Electricity............................. 60 key meter
Gas..................................... 60 key meter
Oil..................................... 0
Water rates............................. 0 included in rent
Telephone (land line)................... 0
Mobile phone............................ 41 one on sim only one still contract
TV Licence.............................. 20 Should be £13 pr month
Satellite/Cable TV...................... 70 includes tv internet and phone Cut back to the minimum package, unless your kids are willing to pay for it.
Internet Services....................... 0
Groceries etc. ......................... 400 cut back recently found a cheaper shop This could be cut by £100-150 if you meal plan and purchase carefully. Also, make sure your kids are paying for their own toiletries and luxuries etc.
Clothing................................ 30 Charity shops for the workwear?
Petrol/diesel........................... 70
Road tax................................ 15
Car Insurance........................... 25
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25 Cut down to token gifts
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 30 Sorry, you really can't afford this right now.
Emergency fund.......................... 25 Wise choice, but what do you have in here?
Total monthly expenses.................. 1537


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 900
Other assets............................ 0
Total Assets............................ 900

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................10123.....300.......19
Barclaycard....................3586......100.......18.9
Barclaycard....................1874......50........18.9
Halifax CC ....................900.......28........18
Loan...........................4850......150.......10
Loan...........................9700......313.......23.9
Barclaycard....................4666......150.......18.9
MBNA...........................5524......70........19
Total unsecured debts..........41223.....1161......-

Amount left after debt repayments....... 392 Do you have this?

If there anything you can sell to repay of the debt? Have you changed the habits that ran up these debts? Are you debts coming down each month?

The ideal is to pay the loans as scheduled, and pay the minimums plus £1 on each credit card, then throw every spare penny against the card with the highet interest rate until it clears, and then move onto the next.

It is worth contacting the card companies and asking if they would lower the interest rates - some have been known to agree for a limited period, or to see if you could get a low-life-of-balance card instead. Definitely ask them, it won't hurt.

Since your income currently shows that you can cover your debts, you won't get a DMP as it stands. You have to take control of your spending and start bringing the debts down as best you can.

It can be done, they are those on here who've paid off more! There are lots of challenges and advice on here to help you all along the way, but you will need to get the family on board.

Best of luck x

RosaBernicia

12_month_challenge wrote: »

Thankyou Rosa
I did consider moving the Halifax and closing it however I am scared because that means the balances are rising on the others.
It makes sense I know I am just so overwhelmed by all the high figures

Thankyou again for all your replies

You'll find a pattern that works for you. The only thing I would strongly suggest (learned the hard way!) is make sure you build some easy targets and celebration points into your plan so that you can see you're making progress.

Rosa xx

12_month_challenge

Thankyou Bargainbetty
I agree that the kids should pay more I will definately be bringing it with them.
My TV licence is actually £3.25 per week but I pay £5 and then when it comes I am always in front with next years (been caught without one years ago and am scared of falling behind with it)
Our holiday is actually booked and paying it off and need spending money (stupid idea, regretting it now though, clearly can't afford it)
I have already looked at the meal planning, have read some excellent tips on here.
Our savings pot has approx £80 as have had christmas and birthdays and stupidely a driving fine of £65 and am waiting for payday next week.

as for the extra money we are supposed to have left I never seem to see it. Obviously wasting money we don't have
I am actually embarrassed
Thankyou again

FatVonD

12_month_challenge wrote: »

Our holiday is actually booked and paying it off and need spending money (stupid idea, regretting it now though, clearly can't afford it)

It might be worth ringing the holiday company and asking if you can change the booking (as opposed to cancelling and losing money) and changing it to a less nice location but all inclusive. I have done something similar once and they were happy to oblige, after all, they are still getting your money which is what they care about.

Worth a try?

FatVonD

12_month_challenge wrote: »

Description....................Debt......Monthly...APR
Barclaycard....................10123.....300.......19
Barclaycard....................3586......100.......18.9
Barclaycard....................1874......50........18.9
Halifax CC ....................900.......28........18
Loan...........................4850......150.......10
Loan...........................9700......313.......23.9
Barclaycard....................4666......150.......18.9
MBNA...........................5524......70........19

I would pay down that Halifax credit card first and hopefully when it hits zero they will offer you a balance transfer deal.

Whatever amount they offer you make sure you move the £1874 Barclaycard onto it first and then keep your fingers crossed they offer you a 0% deal on that Barclaycard one too once it hits zero.

If they do and it's big enough try to move the MBNA over and hope that they offer you...

You get the gist, good luck

Muhren

Nothing to add on your SOA but I would just like to say that at the start my debt was at a similar level to yours. I will shortly be getting to the half way point of clearing it, if I can do it so can you!

I am single and have no dependants so I know that our circumstances are different, however between you, you have double my income so I think these things probably balance each other out.

I know it must be hard right now but keep your chin up and continue to post here and you will get some great advice and motivation to achieve your goals.

12_month_challenge

Thankyou all so much
when I first started writing my post I was not expecting such lovely support and expected people to be very judgemental.
As for my SOA I was actually dreading putting it all down for all to see.

However after reading how much people have achieved I can see that I am not alone and it is doable. I just need to pull my head out of the sand and crack on with it.
Already I am looking forward to the challenge and am so inspired by all the progress people have made.

We clearly waste money and so from now on I am going to account for every penny and scrape as much as possible and clear one debt at a time like so many do on here. (it obviously works)
I will enjoy seeing the debt going down rather than up

Thanks a million all

enthusiasticsaver

I would suggest you keep a spending diary as others have mentioned as your soa seems to suggest you should have almost £400 spare each month and presumably you don't. The grocery bill is high even for 4 adults so I am sure you could probably get that down unless you are including other spends like pet food, cigarettes or alcohol which can all bump up the supermarket bills.


If the SOA is accurate then you should be able to pay an extra £300 each month into the Halifax card to clear it in just over 3 months then as an earlier poster suggested you could see if one of the other cards could be moved on to a 0% deal if they will give you one.


Make a firm resolution that no more credit cards are to be used, don't book any more holidays until you are more on top of your finances and make a note of every penny you spend and think before you spend as to whether you really need it. It is tough but worth doing I think for the peace of mind it gives you.


Good luck with clearing your debts and well done for facing up to it. I was a debt counsellor in another life and I know how many people struggle with confronting it for the first time and adding it all up. The figure is scary but if you think to yourself that it will be going downwards from now on it will give you the incentive to make the changes you have to.