how do i get out of debt?

dancingfairy

I know we are trying to cut things down but I don't think your SOA is realistic and don't think you will be able to live with it at that level.
I'd add at least £10 for medical expenses and £100 a month for entertainment and presents. If you start putting this away you should have a small fund for christmas for presents and then in the new year it will start off your emergency fund.
Your income is £2589 and your expenses are £2197 (plus maybe another 110). The goods news is you will still have a fair chunk to put towards your debts, about £300? Clearly you can't meet all your minimum payments so would need to consider something like a dmp and divide the 'spare' £300 up fairly between your creditors.
i'm sure if you phone Stepchange or go to your local CAB they can talk you through your options.
Does your bank offer any payment holidays? Will it allow you to miss 3 payments at the end of your maternity for the mortgage?
Is there anything you can do from home to earn extra money? Can you organise a car boot or have an ebaying session? do ironing from home? Anything to bring in a little cash.
In terms of Christmas, it will be difficult and you will need to use some of the clothing budget, the present budget and try and get any food from the food budget. You need to be creative but I'm sure there is a board which covers cheap christmas planning (there's a board for everything on here).
df

thegreenone

I agree with asking your mortgage provider for a three month break. Or even a slightly longer one to put some money in to an emergency fund. Ask now!


I realise you are in a remote area, which may be the cause, but your car insurances are huge. I'm guessing neither of you are whizzing around the lanes in a Bentley (I could be wrong!) so please look at renewal dates and penalties for switching companies now.


As for Christmas, can you find some time to write down what you did last year, roughly how much spent on food and presents. You say you have a big freezer, so could you start on the food shop each week now. My BIL picked up a big turkey last week from Mr T for £6. Just one item stashed for Christmas, however small, ie a packet of stuffing, will make a difference.

honeybee111

we have looked this option before, for asking for a payment break, we were really bad back then and our income was half what it is now. they refused. just 3 months payment break would allow us considerable breathing space.
car insurances are very high in fact double what they were last year. We both renewed with same company. After both where significantly reduced.

i think right now, my best option would be to set payment plans up for all non secured debt, catch up on the arrears for council tax and electricity and possibly sell a car. (the emergency fund is an excellent idea.)
And if the payment comes through for insurance claim pay off all smaller debts. the claim has been priced at just under £8k. but im not expecting that.
When i have returned to work i can increase payments to credit union loan via my wage. and hope to clear that in 18months.And then i can focus on the credit card.
i cant do all this without budgetting correctly for xmas, birthdays, emergencies and holidays and cars.
and if insurance does not pay out... well back to the drawing board...