Absolutely dire situation

chaplin80

pmlindyloo wrote: »

I am sure that you have realised having done your SOA that this is completely doable.

However, since you have posted on here something is not working.

Usually this is because your SOA is incorrect!

So, you need to keep a spending diary to see exactly what you are spending each month. It is amazing what little extras add up to. Suspect the food bill is just an estimate (smiley face)

If you are willing to go all out on your debt you are going to have to get your spending under control - so no clothes for a while, no holiday, no presents. Up to you. Otherwise keep the spending diary and see what you can cut down on without it being too painful.#

Hope your OH is on board with this!

Ebe_Scrooge wrote: »

If you really want to hammer the debt as soon as possible, these are things that look "cuttable" to me :


Mobile Phone £60.00 This looks very high, switch to a cheaper contract, or SIM-only. I agree although I am tied into a contract for the next year!!
Satellite/Cable TV £30.00 You don't need this, Freeview is fine. This will be going in 3 months at end of contract
Clothing £50.00 This can be trimmed right down. I put this in as I didn't really know what amount to enter! It's variable. Some months nothing and then other months more than £50.
Presents (birthday, christmas etc.) £50.00 Ditto for this Agree
Haircuts £15.00 Can this be reduced ? Not sure if I can reduce this by much?
Entertainment £50.00 This can be cut back a lot
Holiday £100.00 Go without a holiday for a year.


Some of these cuts may be unpalatable, but how badly do you want to get rid of the debt ?

If it were just my wife and I then I would have no issue with cutting out the entertainment and holidays etc however I have a 5 year old son and I am worried that he is going to miss out on family experiences due to me being rubbish with money! I totally get your point though

enjoyyourshoes

Might be worth reviewing all your 0% deals and (for yourselves) have a list when the 0% period ceases and what the interest rate will be after that!

May put a different perspective on what you need to pay and when.

The joint effort will be critical as you have to have a 280 degree change in your lifestyles and for a protracted period of time and against a backdrop of pressures. So not sure what 'on board' really means, is it merely words or is there a passion and in depth focus on this being the primary objective?

Fags, coffee, such out, take aways, mags, lotto, booze : possibly need to rationalise these spending habits.

Look at you £6K cash asset and look at reducing the most urgent and important debt.

You only can spend the £1 once and work out where that will be in relation to your new joint objective.

pmlindyloo

chaplin80 wrote: »

If it were just my wife and I then I would have no issue with cutting out the entertainment and holidays etc however I have a 5 year old son and I am worried that he is going to miss out on family experiences due to me being rubbish with money! I totally get your point though

Do not be taken in by this complete fallacy.

There are so many holiday experiences and days out that cost very little (or totally free) especially given the age of your child. They do not need 5 star hotels/disney holidays etc etc

Get this debt sorted before your child gets any older and the peer pressure factor really starts!

And, if you have time, spend a few hours reading through this site - so many ideas from MSEs.

If you really become a MSE it will become totally obsessive and you will become an utter bore to friends and family so be warned!!!!!!!

Kitten868

Hi,

Maybe living seriously frugally for 3 months would give you a good idea of how little you can live on and give you a good head start on your debts. On taking on debt you really have to challenge what is an essential and what is a luxury. Then the following 3 months you can be more realistic in your budget. Big change will make the second three months more liveable
I would say you're paying way too much for tv & Internet. You're shelling out £60 on mobiles and you can't change that so you can get a landline no calls and Internet. I get this for £17.70 a month and I got £150 cashback for this on quidco. Same again with your other bills. Price comparison and aim to get them all cheaper with maybe even a nice bit of cashback. It's a nice early win when your outgoings are less.
It's not great but I think very quickly you can get a grip on all of this so it all feels manageable. And positive that you will have a positive financial outlook for life X

glentoran99

chaplin80 wrote: »

If it were just my wife and I then I would have no issue with cutting out the entertainment and holidays etc however I have a 5 year old son and I am worried that he is going to miss out on family experiences due to me being rubbish with money! I totally get your point though

is the £60 just your phone bill? What about the wifes?

Kitten868

And I would pay off those creation accounts with the savings you have as those interest rates are going to bite you on the bum. With your income you'll soon have savings again.

chaplin80

glentoran99 wrote: »

is the £60 just your phone bill? What about the wifes?

Hi, the £60 is for both of us. Mine is £35 and hers £25

chaplin80

enjoyyourshoes wrote: »

Might be worth reviewing all your 0% deals and (for yourselves) have a list when the 0% period ceases and what the interest rate will be after that!

May put a different perspective on what you need to pay and when.

The joint effort will be critical as you have to have a 280 degree change in your lifestyles and for a protracted period of time and against a backdrop of pressures. So not sure what 'on board' really means, is it merely words or is there a passion and in depth focus on this being the primary objective?

Fags, coffee, such out, take aways, mags, lotto, booze : possibly need to rationalise these spending habits.

Look at you £6K cash asset and look at reducing the most urgent and important debt.

You only can spend the £1 once and work out where that will be in relation to your new joint objective.

our 0% deals coming to an end if definitely a concern. We have at least 12 months left of each of them so I would really like to clear as much as possible by then.

My wife and I both share the same level of desire to sort this debt out, I am just the one who will be putting together the plan/spreadsheets etc. My wife finds it overwhelming whereas I am (slightly) more objective.

sourcrates

I think your SOA looks ok, but at the moment its more of a wish list, than a genuine statement of your income/expenditure.
The trick is to stick to the plan, as long as you can do that, your only talking a few years to pay it off.
I wish you the best of luck with it.

enjoyyourshoes

Do a month by month spreadsheet allowing variable monthly payments to each outstanding debt (include the unsecured too). Calculate monthly interest charges by account and a total.

Use it as a 'working' document so as to vary amount to each debt, this should allow you to work out what to pay, by how much and by when.

30, 30, 30 :-

Ensure you have a running balance on your bank account, spend 30 seconds a day accounting for what you both have spent that day.

Every week spend 30 minutes reviewing your plans & where you are at financially.

Try not to pay for insurances monthly as they get you on credit there also. Work out annual, 1/2 and 1/4ly bills and calculate how much you need to spend per month (another cash flow) to accrue the necessary (put in highest interest account and review month prior to renewal to get best deal (MSE helps you). Spend 30 minutes doing this and reviewing it.

Go through the spreadsheets with your Wife as this will help her know what to do, what not to spend and how you can get through this.

Don't go online and shops to spend more ! (maybe no more hols just inexpensive (euphemism for FREE) days out.
Look at all your costs and use MSE to reduce (Better mortgage deal etc?)

Review your food shopping habits.