Where to start

Richie_asg1

Hi all.
I seem to be starting to spiral, so need to sort something out before I dissapear up my own A*hole.

Currently £15,000 in debt, on credit cards, with constant drains of the CSA and high rent. My partner can pay for food, as I cannot anymore.

Plus points - realatively good job - full time
No loans
Reasonable credit record so far (just been refused by M&S card - but due to debt rather than experian report, as this seems ok)
No HP lurking about.

I've just found out that MBNA are charging a whopping 23% on my balance!
Can I ask for the account to be frozen without it crippling my credit rating? or would getting a loan be better? That has £3500 sitting on it.
I was thinking of a loan to clear it, then shuffling a chunk back over if they still offer me 0%. If so, what will I do in X months when the rate goes up again - now paying a loan also - swap back?

Don't know.....Help please. :j

debtfreewannabee_3

first of all welcome to the site hope you find this site excellant as we all do. can you please do a soa first of all
thanks

Richie_asg1

INCOMINGS Monthly

income £934.96
Sell some things by Ebay £??


OUTGOINGS Monthly

Rent £400
Council Tax £100
phone - £12
mobile £15

broadband - £14.99
electricity - £80

car ins - £18
Petrol £ 80
car (repairs, mot and others) - £20

food + shopping - £80

haircut - No
presents - £5
birthdays - £7

total - £832


debts :mad:

MBNA £3500
EGG £7600
Lloyds Platinum £3600

Current Account -£500
Total Debt 15,200

Monthly payments on debts
MBNA £100
Egg £145
Lloyds £77 TOTAL £322


Total monthly outgoings £1154

Some information

I work 40 hours at £11ph, but after pension, NI, tax etc this comes out just over half that - with CSA payments.
I live with my new partner and her 2 kids. I have 3 of my own which I effectively can't see because they cannot stay here in my 2 bed flat, nor will the EX allow me to transport 5 kids in the car.
My partner works part time at the local shop, which pays for most food and some electric. She suffers from arthritus so cannot physically do full time, with kids also. I work 7.45 - 4.15 She works 6 - 10, and most weekends, so childcare isn't needed.But on the downside, Overtime is a no-go.

When my Ex decided to move another bloke into our house, I found it hard to cope. In the divorce and house sale, most joint debts were cleared. I still had "personal" debt from bailing her account out. Plus in the settlement, I wanted the kids to be provided for, so an additional £40,000 went their way.

Since then I have found a new partner, and am hoping for a brighter future.


do sell unwanted stuff on ebay.

Basically, It seems I don't earn enough.

Al help and criticsms taken abroad. please help me by telling where i'm going wrong. I knew there is something wrong the last time I visited the doctors. There were 4 drug addicts waiting for methadone there. All were better dressed than me, one had an I pod and two phones. Mind you, their perscriptions were free; I had to pay for mine.

I only buy clothes when I wear holes in the last.

angelavdavis

Hi Richie,

Yes your income is pretty low all things considered. Have you had a look around for anything better paid?

My suggestions would be:

broadband - £14.99 - I would look for joint phone/BB offers that are out there because at a total of £25 per month for both, I am pretty sure you could get cheaper (have a look at Martin's article here). Ensure you join quidco and use them to switch so you get cashback.
electricity - £80 - this seems really high for the size property you are living in. I suggest you go around checking that all electricals are switched off fully and not on standby, see if you can switch providers through uswitch or similar (again use quidco here too). I would also suggest you go to Morrisons and get yourself some lower power lightbulbs as they are on special at the moment (I think they were 99p each). The link above will also provide you with tips on saving utilities too.
petrol £80 - this also seems very high. Is there any way you can reduce this? If you are spending this much per month, ensure you get loyalty points through Tesco or Nectar points through BP so you get something out of it.

The credit card rate sounds painful! I would phone your existing providers and see if they will offer any lower interest rates to you - the worst that can happen is you get a no and if you don't ask - you don't get!

I would also look at Martin's article on getting 0% deals on credit cards as he will outline cards to avoid if your debt levels are already high.

In my personal experience, consolidation rarely works as people forget about the debt on the loan and run up the credit cards again - putting themselves in more trouble!

Have you any bank or credit card charges to claim? Go over to the boards for advice on this process.

I would also suggest you/OH start keeping a spending diary so you can monitor the outgoings. It is a real eye opener and will help highlight areas for saving!

The money you raise from eBay should be kept to one side and used to overpay the credit cards. I know from experience it can be easy for that money to just disappear when it comes in.

Do you get working tax credit?

Was the £40k settlement taken into account when CSA set your maintenance payments? I would go along to CAB and seek advice here too.

I would also investigate whether you are entitled to any benefits. Go to www.entitledto.co.uk to find out. Does your OH get any sort of disability benefits? What is her income? Perhaps it is something she could investigate? You may even be better off financially if she didn't work and could claim disability benefits instead as you are likely to qualify for other benefits such as housing/council tax benefit.

Update the SOA using your joint incomes/costs as it will help you see exactly what is coming in/going out of the house, including income/costs your OH is picking up.

Good luck

Dumb_Blonde_3

Welcome to the sight. I see you have a car - what sort of value is it? could you sell it and buy a cheaper more fuel effiecent one? That would raise some cash to chuck at the debts?

Richie_asg1

Thank you both for the pointers. Especially angelavdavis.
It seems like I'm really inefficient doesn't it. I do have low E lights everywhere, but I think the main problems are tv and games for the kids, and the PC on 16 hours a day. My OH uses it while I'm at work, then I 4 hours most evenings.
What I will do, is invest in two switched wandaplugs for the main TV and various chargers as we can't easily get to the wall switches.
Our flat is rented, so is on ouber money grabbing rate probably, but can't change that. Cooking 2 shifts for dinner also extends the time the electric cooker is used.
Regarding car - It's a peugeot 1.1, that I almost got killed in, so the front end has been replaced, and is not quite straight. - not much value in that, but a worthy point. I think it's the milage as we live in Scotland and most things are a drive away.
What is left of my income is low because of the CSA extracting £75 a week plus arrears for their clerical mistake. This should be completed by November, then back onto around £65 a week.

Regarding working tax credits I think we did work out that after all the paperwork was filled and completed we may be £10 better off a month, but not guaranteed, as some payments would be reduced if I appleid - swings and roundabouts.
I had not thought about claiming on credit card companies for refunds. I always seem to be 2 days late by the time they process it.