Worse than we thought......

Sanctioned_Parts_List

I think I can see what you've done here - you've reduced the gas bill to zero as you already have a full tank, and the council tax to zero because it's January, and you're not due to pay again until April. So you've made a "point" SOA rather than a "general" SOA.

There's no harm in that for planning next month's spend, but you're better off making a long term plan based on a full 12 month spending pattern so that you have a reliable pattern of spending and short-term savings to cover the annual bills.

If you can make a long term plan that balances based on your winter income, then summer is the time when you can really pay down those debts (and in the future, have some real savings so that those luxuries become genuinely affordable).

So that would mean that your £1400pa council tax (at a guess) is £117 per month balanced out, and your gas which takes so many tanks per year is, say £50 per month averaged out? Then some other notes:

Spends
Mobile phone............................ 130 While in contract you can still change to cheaper tariffs - do so
Satellite/Cable TV...................... 85 Should be 0 - this is a "want" and not a "need"
Groceries etc. ......................... 450 You should be able to shave £100 off this
Clothing................................ 0 You need to allocate 5 here as socks and shoes still wear out
Haircuts................................ 15 Do them yourself or go shaggy
Entertainment........................... 100 This is a "want" and not a "need" - can you really justify so much, given that you need to make more than minimum payments to clear those debts?
Pocket money............................ 60 Understood - well done on bringing it down though.
Smoking................................. 50 Really try to lose this - you're literally setting fire to banknotes

Debts
Cat L BNPL Dec16...............640.......0.........0 No repayments?
CC GB..........................0.........25........20 This looks wrong
Defaulted......................0.........30....... .0 This looks wrong
Total unsecured debts..........33957.....1277......- So your total debt is less but your repayments £200pm more than initially forecast?

MoneyMission

Hi foolofbeans.
Just read your thread and I wanted to say that you have been very brave posting here and asking for help. You've made some changes and can see ways to make more. It will be a long slog but it took a long time to get to where you are so it isn't going to go away overnight.
Well done that woman. Well done.
MM
PS. I have far less children than you and still manage to spend more on groceries! Am trying to reduce though. Perhaps we can encourage each other?

KID77

Hi,
Following my earlier post I just wanted to say that a year ago I was like you in thinking I could manage and wouldn't even entertain the idea of a debt management plan. I would do balance transfers, i looked at remortgaging but couldn't and every month was taking money from a credit card just to live. We weren't living the high life as hadn't been abroad for years, didn't have lots of new clothes to show but somehow just couldn't afford to live.
Then one month, i discovered all credit cards were maxed out, overdrafts at limit and i freaked, i had no option. I felt so depressed and desperate, i cried every night and felt so ashamed. My husband knew about our debt but left me to control it so didn't realise the extent perhaps but when he seen me in this state, he then panicked. We thought of sellong our house but then a colleague i confided in suggested i apeak to a debt charity. I then read online over the weekend on Stepchanges website and came accross this thread also. That's when i realised something had to give and keeping our family home was a priority so a dmp was a scary but good choice for us.
I am rambling sorry but guess my point is that I think you get by and manage hoping something will change but at your level of debt versus income, you are not going to be able to pay much more than minimums so it will never go away and look at all the interest.
With Stepchange, they have a debt remedy tool on their website, fill it in just to try, like an soa i suppose but make sure you allow for absolutely everything. This will then tell you how much you can afford to pay to your debt each month. This may be half or less than what you pay now but chances are interest will be frozen or even reduced and you could pay off all your debt in 6 years at a more affordable repayment.
Your credit rating will be ruined but if you dont want more debt or a mortgage its irrelevant.
You can then get stuck in and pay off all your debt and will feel much more in control, you will start to enjoy budgeting :-)

This is only my opinion but feel this is an option you should look into.

Good Luck

crazy_cat_lady

Hi
I know how scary this is for you at the moment, and you don't want to have to ask for help. I have been there, believe me. I just wanted to echo what Kid77 said about Stepchange. They were CCCS a few years ago when I contacted them, and now my only regret with my situation is that I didn't admit defeat sooner and go into my dmp a year earlier than I did. I could have probably saved myself more time and money... But that's all by the by for now.
Please, if you're concerned about contacting them then don't be - they have heard it all before and are some of the most helpful people I have ever dealt with. I cannot describe to you the sense of relief I felt at being able to make an affordable payment once a month, and to sleep at night. It was a long 5+ years, but I have learned so much in that time, and I'm now debt free, and can budget as well. My dh is ill and hasn't been to work for almost 4 months now - but I've managed to work around it without getting into debt.
Also, please try and let the judgemental people's opinions just go over your head. The advice on here can be blunt at times, but the vast majority of us are helpful people that want to support you.
Good luck with everything.

Kitten868

Hello, sorry you've had some criticisms. Don't focus on that. The thing is that a lot of helping someone take on debt is tough love. It's compounded by the fact that hubby isn't on board with the need to change. It is tough as there isn't much you do with them til they get it.
I really think you should contact a debt charity before you do anything. They don't make you do anything but can give great advice.
If it was me I'd use the emergency fund to clear the little debts so I had less creditors and so less minimum payments and more to throw at the other debts. But that might be bad advice. There's others on here that have contacted their creditors themselves to freeze interest and charges and reduce repayments. Which could work for you.
Please get some advice. This can be fixed and everyone is here because they made some stupid decisions. We are here together to see the light x

foolofbeans

Sanctioned_Parts_List wrote: »

I think I can see what you've done here - you've reduced the gas bill to zero as you already have a full tank, and the council tax to zero because it's January, and you're not due to pay again until April. So you've made a "point" SOA rather than a "general" SOA.
Yes. I know it doesn't give the overall picture but I find it easier to think of our budget in quarterly terms rather than annual as we have variable income.
There's no harm in that for planning next month's spend, but you're better off making a long term plan based on a full 12 month spending pattern so that you have a reliable pattern of spending and short-term savings to cover the annual bills. I understand. I will do four quarterly budgets and one annual budget so I can track if we are on the right path.
If you can make a long term plan that balances based on your winter income, then summer is the time when you can really pay down those debts (and in the future, have some real savings so that those luxuries become genuinely affordable). Summer can't come quick enough!
So that would mean that your £1400pa council tax (at a guess) is £117 per month balanced out, and your gas which takes so many tanks per year is, say £50 per month averaged out? Yes, thank you. I know it is creative accounting but I removed the payments which are not due yet as that is a more realistic account of our situation now. We now need to reduce some of the debts each quarter so when additional expenses are due they can be added without tipping the budget over.
Then some other notes:
Spends
Mobile phone............................ 130 While in contract you can still change to cheaper tariffs - do so Is this true? I will contact the companies today to see what we can shave off.
Satellite/Cable TV...................... 85 Should be 0 - this is a "want" and not a "need"I know. I stupidly agreed to commit for another 12 months in order to get a discount (as I figured we were paying anyway so may as well get it cheaper!) but I watched Martin Lewis on tv last night and saw that 88% of Sky customers who haggled got their subscription cheaper. So I figure it's worth a phone call and I can see what the penalties are if I cancel.
Groceries etc. ......................... 450 You should be able to shave £100 off this :eek: I'm about do a meal plan and cost it up online but I'm doubtful of getting it down any further for 6 people and a multitude of pets.
Clothing................................ 0 You need to allocate 5 here as socks and shoes still wear out Good point
Haircuts................................ 15 Do them yourself or go shaggy I do partners but not the kids. I may attempt to cut their hair myself, if nothing else the photos will be hilarious to look back on!
Entertainment........................... 100 This is a "want" and not a "need" - can you really justify so much, given that you need to make more than minimum payments to clear those debts? I know it's a want but partner does work hard and I didn't want to cut every bit of enjoyment. I will propose a further reduction though.
Pocket money............................ 60 Understood - well done on bringing it down though.
Smoking................................. 50 Really try to lose this - you're literally setting fire to banknotes I know. I'd like nothing better than for him to stop smoking but I'm trying to be realistic and know that at least I have accounted for it and it's not getting stolen from the food budget.
Debts
Cat L BNPL Dec16...............640.......0.........0 No repayments? Creative accounting again. Debt needs to be repaid by end Dec but until then no payments are due so at this point in time I have not included it as a monthly payment. I have it on the annual budget though and know it needs to be added for payment in the last quarter.
CC GB..........................0.........25........20 This looks wrong I'm not even sure what the actual figures are for partners credit cards and I doubt he does either. The plan is to dig all the paperwork out this weekend and put accurate figures. I have estimated them all at about £800 so that's what this one should be.
Defaulted......................0.........30....... .0 This looks wrong
Total unsecured debts..........33957.....1277......- So your total debt is less but your repayments £200pm more than initially forecast?

The first SOA was a lot of guesstimating and based on amounts we are spending. The updated one is a clearer picture of where we are now and I found it easier to do a quarterly budget with an annual one overall. I have the spreadsheets on my pc but haven't spent the time accurately transferring them over to the SOA.

foolofbeans

MoneyMission wrote: »

Hi foolofbeans.
Just read your thread and I wanted to say that you have been very brave posting here and asking for help. You've made some changes and can see ways to make more. It will be a long slog but it took a long time to get to where you are so it isn't going to go away overnight.
Well done that woman. Well done.
PS. I have far less children than you and still manage to spend more on groceries! Am trying to reduce though. Perhaps we can encourage each other?

Thank you so much. This made me cry a little but in a good way :beer:
My biggest problem is the amount I spend on groceries. I can cook and I know how to budget but we do eat well and feeding two grown men isn't cheap. I am doing a monthly meal plan and costing it online but I find it's the extras (loo roll, shampoo, washing powder, pet food) that add the costs. I would love a grocery-reduction-buddy!

getmore4less

If you got all the interest frozen your current £1200pm would pay off the £34k in less than 30 months.

Put the debts into a snowball calculator to see how long it would take paying interest.


I think with a year of carefull budgeting and planning for the variable income you will have room to loosen up the spends a bit

Maybe look at a 3 year Debt free plan with and without a DMP to see what the difference is.

foolofbeans

KID77 wrote: »

Hi,
Following my earlier post I just wanted to say that a year ago I was like you in thinking I could manage and wouldn't even entertain the idea of a debt management plan. I would do balance transfers, i looked at remortgaging but couldn't and every month was taking money from a credit card just to live. We weren't living the high life as hadn't been abroad for years, didn't have lots of new clothes to show but somehow just couldn't afford to live.
With Stepchange, they have a debt remedy tool on their website, fill it in just to try, like an soa i suppose but make sure you allow for absolutely everything. This will then tell you how much you can afford to pay to your debt each month.
Your post resonates with me. Paying off debt has taken the majority of our income for years and we have increased the debt to get by (and had some splurges along the way). I will look at the Stepchange site. So may have mentioned it that it must be worth a look.
Your credit rating will be ruined but if you dont want more debt or a mortgage its irrelevant.
You can then get stuck in and pay off all your debt and will feel much more in control, you will start to enjoy budgeting :-)
It's the credit rating ruination that bothers me. I know we have a long, hard slog ahead of us and it may not even be possible to come back from where we are at the minute but if we go on a DMP our credit rating will be rubbish until we're in our 50's. That really scares me and makes me want to try harder to clear it ourselves.
This is only my opinion but feel this is an option you should look into.

I'm going to look/speak to StepChange as I do wonder if I'm being completely unrealistic. Thank you for your advice.

foolofbeans

crazy_cat_lady wrote: »

I know how scary this is for you at the moment, and you don't want to have to ask for help. I have been there, believe me. I just wanted to echo what Kid77 said about Stepchange.
Also, please try and let the judgemental people's opinions just go over your head. The advice on here can be blunt at times, but the vast majority of us are helpful people that want to support you.
Good luck with everything.

Thank you, I will contact Stepchange and see what they suggest.
I'm happy to receive blunt advice and people pointing out where we can't afford to spend on our "wants" is fine. I'm actually surprised that so any people have been so helpful as I was expecting more of the comments about how our income is high, our housing costs are nil and yet we still have no money! In reality we do not have much disposable income and haven't for some time as we have been in the cycle of paying debt-income reduced-get more debt to aid income-paying debt. If I was on the outside looking in I would wonder how we could have that much debt when we have a level of income that supports a family quite well.
I am very grateful to the kindness of posters that have given advice without being judgemental. We have hidden our heads in the sand for so long and putting it in black and white is scary and makes us face up the realisation that we have a HUGE amount of debt and need to deal with it.
I'm still feeling positive for now though :j