In debt and scared.

MuffinTops

So you are £215 short each month to pay everything?

I think initially you can save some money on your groceries. If you meal plan and change the places you shop then this really isn't nearly as bad as it sounds.

If you have a landline and a mobile phone, do you need both? I don't have a landline anymore and have genuinely never missed it.

Gas and Electric looks horrendous. I pay £57 a month during peak months, but I do think I seem to use less than a lot of people. When you look at new gas and electric suppliers don't look at how much they'll charge you a month by DD. Look at how much they charge for the energy they sell you. Any company can say "we'll charge you £20 a month" and then after a month up it to something ridiculous.

Buildings insurance of £86 a month is huge. £1,032 a year for buildings insurance? I paid £270 for a year for my house. I don't have contents insurance either as I have nothing of any value.

So, from my amateur eye I can see ways to at least even out, but you need something for emergencies too otherwise the house of cards can fall.

Do you have things you can sell? Children's old toys and clothes sell really well at boot sales and online. That in itself could start to build an emergency fund for you?

The other thing I find priceless is keeping a diary on here and having people help you celebrate the wins and commisserate with the lows. It keeps you focused and realising that you're not alone.

I really hope this helps you in some way. That financial panic and misery is horrible, but it really doesn't need to be like that! You're definitely not alone.

MallyGirl

Medical (prescriptions, dentists, opticians etc.) 45
is also very high

sourcrates

Hi,

Your choices appear to be a debt management plan, or a more formal Individual Voluntery Arrangement.

If you go to the stepchange website and run your details through there online debt tool, it may be more specific.

The sooner you get some kind of agreement in place, the sooner the debt can start to come down.

I think you would benefit from some debt advice from stepchange as well, re : getting creditors to stop interest on your accounts.

paulindebt

Thank you Muffin Tops. I've been searching the internet and making calls all day and although I have equity in the house none of the big banks want to help with remortgaging...maybe that's not a bad thing. I think you have made a valid point in selling unwanted stuff...there's quite a bit of that here and its a start. I've sat down with my wife and we have had a chat and my gut feeling now is to try and pay off whatever we can and stick to a budget. As you can see we are over £40,000 in debt which is so shameful but so easily done. It hasn't helped with our income taking a bit of a bashing so we hope to act smart and see where we can make savings. This wont be easy. Regarding my house insurance I will be seeing if I can get a better deal. This may be high as I have my tools at home for when I go to work. Thanks for your comments and I will be adding progress reports on here in the hope it will inspire/help anyone.

paulindebt

Hi MallyGirl, your right I wrote the wrong figure down there. It should be £25 per month...that covers my wife and kids. Well spotted

C.M.

Just reading over your initial post - one thing that jumps out at me is you say that your wife's employer reduced her pay to NMW.

Is there a particular reason for this, you don't need to say if there is, but an employer has absolutely no legal right to unilaterally reduce a person's rate of pay without their agreement.

Is this something that you could challenge? Although, if your wife has taken the reduction unchallenged it may be interpreted as having accepted the change.

MallyGirl

paulindebt wrote: »

Hi MallyGirl, your right I wrote the wrong figure down there. It should be £25 per month...that covers my wife and kids. Well spotted

better - but still seems high. Kids stuff will be free, adult dental checkup is about 18 quid on NHS. If there are disposable contact lenses in there I could understand, but otherwise it is high.

datlex

Hi OP Can I recommend you speak to your mortgage company and other debtors to see if there is a way of reducing your payments. I have found in past when I need to reduce payments companies were happy to listen. I think the key is being up front with your situation.

Regarding your current bills any chance of reducing this Telephone (land line)45? That must include TV. When does your contract expire?
Also your grocery bill seems high- watch Eat Well for Less for inspiration. Small changes can save you alot.
Finally can you afford £50 a month for Christmas? Could this be reduced slightly.

enthusiasticsaver

You need to contact the credit card companies direct or stepchange.

Do not, whatever you do, convert unsecured debt to secured by remortgaging. I cannot believe that these debts have come about recently so you must have had an overspending problem for some time. Often the problems arise when the monthly payments can no longer be paid and of course this is the situation you are in due to your recent income reduction. At the moment your creditors can do very little. If it was secured on your house then your home would be at risk if you were unable to make payments.

At that level of debt with your income a DMP would be an option. Contact stepchange and they will contact your creditors and make offers you can afford and hopefully freeze the interest.

StarShapedPeg

I'd definatly look at get those grocery spends down, try going down a brand or better still
swapping to lidL or AlDi which are always loads cheaper. Ideally meal plan, shop with a list and batch cook if and where you can. It could save you a small fortune. Head over to the old style board for excellent money saving thrifty ideas. Good luck.