Debt getting us down

LauraLooDFWB

Im new to all this but love the web site!

We are in debt as follows, arrears due to bank bouncing/not paying direct debits, partner not getting correct wages and being messed about in general by last few employers including current...

Mortgage arrears: £650 (one payment behind)
Water arrears: £160
Counsil tax arrears: £200
Bt arrears : £80
Orange arrears: £200
Welcome car finace: £300 (one payment behind)
Lloyds loan at 6.26%: £3725.38
Lloyds cc: £1800
Capital one cc: £500
Welcome Car finance: £13,000
O2: £180
OH overdraft: £500
Overdraft: £50
Vodafone: £60
Toatl £21400 ish:eek:

Our monthey income at present is around £1800, we have a 7month old daughter so i stay at home and look after her as i was only getting paid £750 a month working full time it worked out better off if i stayed home. I work from home selling avon and do a delivery shift one night a week at work.
My other half is currently working 12-13hours a day 3 of that being driving to and from work and is currently looking for a new job closer to home that pays more (has a few interviews coming up:D ).
Our monthly out goings are:
Gas £5-£10
Electric £38
OH mobile £50
My mobile £35
Rent £164.24
Motgage £613
Bt £10
Break down cover £166.22 this month for whole year
Welcome finance: £293.63
Food shopping £150
Loan £147
vodafone £20
Capital one cc £25 minimum payment
Loyds cc £47 minimum payment
Council tax £100
Water £15
AA home insurance £12
Life cover £55
Diesel £50 company pay for most
AA car ins £74
Total £2075

My other half gets charged every month for bounced direct debits and going over limit sometimes up to £250 per month in charges! we are currently reclaiming our bank charges adding to over £4000 but the big bank court case is on the 12th of Jan :mad: obviously we could do with that cash but even hard ship cases are being stopped for now. We are seeing a financial adviser monday through CAB so thats one step, we have cut back on shopping bill iv applied with help for council tax and been refused, life cover fully covers my partner but only partly me otherwise it would be £75. Waiting on £400 cheque back from mobile to pay off orange o2 and voda, and also waiting on cheque from OH work for £200 back for diesel. Found cheeper quote for break down cover so that goes down as of oct to £120. Need to find car insurance cheaper.
Gas and elec has been difficult had all kinds of problems locating us cos we live in brand new flats.
Any advise would be good and greatfully welcomed. Oh we dont have a social life so dnt spent money on that, dnt get take away (i make home made pizza and he says he likes it the best, i think he is just tryng to make me feel better)

Thanks Laura

madmoney_2

hi there! first thing i would do is cancel the mobile phones, this is the first soa ive seen with 3 mobile companies on it lol. secondly, phone up the crdit card companies and ask them to freeze or lower the interest, and thirdly, get new bank accounts to get ur wages paid into - as it seems u are struggling to live ast the moment - as for the direct debits that are bouncing - cancel them and phone the respective companies explaining whats happening, there are charities that help with this see southern scousers sticky at the top of this board, thers cccs and payplan - both dont charge you a penny!! hope this helps and good luck!;)

LauraLooDFWB

Thanks for the tip about opening up a new account iv opened one and OH has another bank account he is gunna get his wages paid into! He wants to earn enough commision to pay off all debt bar the mortgage in 6-8months so thats the challenge we have set. He is trying to get a closer job so i can owork more.

Thanks x

themaccas

Hi Laura, welcome to mse

I noticed you have rent and mortgage? Is this right? All your insurance - car, home etc could be cheaper and check out quidco.co.uk. If you sign up with them and just use the site like a search tool to access sites you can earn loads in cashback. I got my car insurance with prudential last year through quidco and got £120 cashback! It takes a few weeks to get you money but well worthwhile.

msmicawber

Hi Laura - the thing that jumped out at me was the breakdown cover. That's massive. Can you cancel it? I pay about £75 per year (can't remember the exact figure, but know it's slightly over £70) with Gem. If I had a credit card, then I could halve the cost. Please look into that or, if you have a Tesco Clubcard, have a look at their rewards as they were doing RAC cover for £40 a year through the Clubcard scheme not long ago and it may still be available.

The car insurance is also very high - have you shopped around for a cheaper deal using Martin's tips? If not, I'd recommend that you do that as it could save you loads and if you sign up with Quidco or Topcashback, you may also get cashback. The same goes with your other insurances.

As regards the Council Tax arrears - are you paying over 12 months or 10? If 10 monthly payments, then ask the Council if you can pay over 12 to reduce the amount you're paying out each month.

I'll post again if I think of anything else.

LauraLooDFWB

Iv just gone on first call to look at breakdown cover, £42.50 anual fee is this for any car whatsoever??? It just gives you the option of buying and what is covered. Sounds awesome!:j

Still need to look at car insurance! Im on a mission!!!!
All the suppor is making me feel more poitive about it all thank you everyone keep up the good work and anymore advise is greatfully welcomed!!!

Laura

msmicawber

That's great Laura - have you checked this comparison site for breakdown cover?:
http://www.get-quote.co.uk/

Also, I notice that quidco is giving up to £26 cashback for RAC breakdown cover, 15% off Gem breakdown cover, £20 off Green Flag breakdown cover and so on. Definitely worth a look before you leap! The same goes for your car insurance.

Best wishes.

LauraLooDFWB

Thank you i will have a look this mornin! Had a collection agency letter this mornin do i take it to the financial adviser monday and let them deal with it or should we phone them and explain things, this is the 2nd one.

I cant even think straight this morning i dnt know where to start today, iv got so much to do, what do i need to do before seeing financial adviser???

msmicawber

I suspect if you contact the debt collection agency they'll try to get you to make some payment or arrangement, so it would be best to leave it to the financial advisor. The financial advisor is from the CAB or one of the charities, isn't it, and not someone that will add their fees to your problems?

LauraLooDFWB

Yeah FA is from CAB i wouldn't see anyone if i had to pay, far to skint for that! I have just spoken to area manager and hopfully i'll be increasing the area i work as of today so fingers crossed its more money coming my way!