Starting out

jameswright2

MrsSave wrote: »

Comments in purple above. I've seen a lot worse! If I were you I'd get rid of the overdrafts to start (1-2 months) and then work on paying the rest back using the snowball calculator (I believe that has already been mentioned!).

We do not do a meal plan we have just started doing those recipe boxes which are saving us a bit with less waste, the mobiles are in contract so I can't do much with those at the minute,

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jameswright2 wrote: »

Hi thanks for all the reply's, some great information my Mortgage is on base rate interest only yes the figure is correct it will be cheaper in a few months but obviously it is not being paid as its the interest we are paying.

I live in Manchester it is for Nursery full time as we both work and need early drop offs, 16 months old and yes we use childcare vouchers.

the money was borrowed to clear down cards we only had small amounts on the cards but then we had to move using the cards to renovate to make it livable, looking back it was a mistake which I am now trying to rectify.

If you have an interest only mortgage then what plan do you have to repay it at the end of the term? It's all very well thinking it will be a bit cheaper in a few months but not significantly enough to make a massive inroad into your debts but you will have to pay it off at some point!

the money was borrowed to clear down cards we only had small amounts on the cards but then we had to move using the cards to renovate to make it livable, looking back it was a mistake which I am now trying to rectify.

Sorry but I must be missing something. You only had a small amount on the cards but borrowed money from family to repay them. You owe your family 14k per your SOA (that doesn't seem like a small amount on cards to me!)

So you both claim childcare vouchers of £243 and still have £1100 to pay every month?

jameswright2

Hi I don't have a plan currently on the Mortgage tbh that is the least of my worries for now until I get straight once I am then I will get it on repayment,

I have just checked and it is £614 after the childcare vouchers

the cards were high after paying them off with the family loan they went lower and then we moved and due to having no other money we used these to make the house habitual for us and our child, ie no heating, no carpets.

I really didn't come on here to get told off about how I have spent it, I am here for a bit of help and advice as I know I have done something stupid and mounted up a large amount of debt I understand you are trying to help but your comments are sounding quite attacking

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jameswright2 wrote: »

Hi I don't have a plan currently on the Mortgage tbh that is the least of my worries for now until I get straight once I am then I will get it on repayment,

I have just checked and it is £614 after the childcare vouchers

the cards were high after paying them off with the family loan they went lower and then we moved and due to having no other money we used these to make the house habitual for us and our child, ie no heating, no carpets.

I really didn't come on here to get told off about how I have spent it, I am here for a bit of help and advice as I know I have done something stupid and mounted up a large amount of debt I understand you are trying to help but your comments are sounding quite attacking

It's not a case of that and that certainly wasn't my intention. It's a case of trying to understand where the money goes. Your SOA shows quite a healthy surplus but you say you have no money left.

In your SOA, you posted your salaries (which I presume are what you take home after the childcare vouchers have been deducted). Your childcare was posted as 1100 which implies you pay that even after taking the vouchers. I queried that. You have corrected it so that your childcare is 614 after vouchers so you now have an additional £486 of surplus in your SOA.

That's why people ask questions - to try to get to the bottom of things and try and help in the best way possible. There's a big difference on running up debt on basic essentials to feed/clothe your family and buying large screen TVs, as an example.

jameswright2

I understand what you mean, that feels like a lot left over and I have no idea were it is going I guess that is the problem, I need to relook at my budget because an extra £486 would make a huge difference to paying the debts off.

We have absolutely nothing to show for the debt my tv is nearly 12 years old

Jox

You're doing well jameswright2, it's a scary situation to be in having debt hanging over you but you are tackling it and aware of the dangers of taking out additional loans or consolidating debts, it rarely solves the problem and can make it worse.

Good luck with wiping the debt, you'll get there step by step, there are lots of people in the same boat or who were in the same boat (me twice) and we can help each other out.

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jameswright2 wrote: »

I understand what you mean, that feels like a lot left over and I have no idea were it is going I guess that is the problem, I need to relook at my budget because an extra £486 would make a huge difference to paying the debts off.

We have absolutely nothing to show for the debt my tv is nearly 12 years old

You do if you have a warm home!

When you created your SOA, did you use actual figures or an ideal scenario of what you would like to be spending? I think people recommend you look back over at least 3 months of bank statements and multiply up then divide by 12 for more accurate monthly figures. If you take £20 out of the bank ATM every couple of days for coffees/snacks etc then that adds up over the course of a month. Especially if you're both doing it. Doesn't seem like much at the time but soon adds up.

tlc678910

Hi,
I want to tell you my thoughts to help you to reflect on what someone else thinks about your situation but it is not intended as a personal attack but to provoke your own thoughts.

You have a really good income (at least a thousand pounds more than many people's statement of affairs) but you are not paying anything off your mortgage at all!

You live in Manchester so I can't see why the cost of living should be much more than other people (e.g. London)

From what you describe it sounds like you were getting into debt aside from the house renovations and possibly are continuing to get into debt?

I think you and your partner together need to put some time and energy into thinking why you overspend on larger than the average income.

I would take a guess from clues in your statement of affairs (I.e. £95 for haircuts) that perhaps with your good incomes you have, maybe unconsciously, thought "a person with our incomes can afford a haircut/colour each month for a pamper, can afford to go out for meals/drinks, to buy good clothes, can afford a foreign holiday and a few mini breaks" ?

That is fine if the figures reflect that you can afford these things but at the moment for you they don't. You need to start saying no to yourselves.

You also seem to indicate that to an extent you have your fingers crossed that things will work themselves out over time (e.g. mortgage problems are for later).

Do you want more children or will your childcare money be less when your child goes to school.

I am worried that without lifestyle changes in ten years time you will have lots of debt, little equity in your house but great hair! (only a joke - not an attack but I'm sure you catch my drift)

Good luck OP
On the upside you have the income to turn it around which isn't true for everybody.
Tlc

jameswright2

last night we sat down and went over it all with our online banking how much everything is bills etc, I think I need to readdress how we move money about as it get confusing, I have a standing order for ex amount and this goes into a joint account I think it all just needs to be in 1 account.

jameswright2

tlc678910 wrote: »

Hi,
I want to tell you my thoughts to help you to reflect on what someone else thinks about your situation but it is not intended as a personal attack but to provoke your own thoughts.

You have a really good income (at least a thousand pounds more than many people's statement of affairs) but you are not paying anything off your mortgage at all!

You live in Manchester so I can't see why the cost of living should be much more than other people (e.g. London)

From what you describe it sounds like you were getting into debt aside from the house renovations and possibly are continuing to get into debt?

I think you and your partner together need to put some time and energy into thinking why you overspend on larger than the average income.

I would take a guess from clues in your statement of affairs (I.e. £95 for haircuts) that perhaps with your good incomes you have, maybe unconsciously, thought "a person with our incomes can afford a haircut/colour each month for a pamper, can afford to go out for meals/drinks, to buy good clothes, can afford a foreign holiday and a few mini breaks" ?

That is fine if the figures reflect that you can afford these things but at the moment for you they don't. You need to start saying no to yourselves.

You also seem to indicate that to an extent you have your fingers crossed that things will work themselves out over time (e.g. mortgage problems are for later).

Do you want more children or will your childcare money be less when your child goes to school.

I am worried that without lifestyle changes in ten years time you will have lots of debt, little equity in your house but great hair! (only a joke - not an attack but I'm sure you catch my drift)

Good luck OP
On the upside you have the income to turn it around which isn't true for everybody.
Tlc

haha I love the haircut comment ! I get my haircut once a month it costs £15 and my partner gets hers done at a discount of £75 because it is a friends salon, as soon as our child goes to school we will have more money and no more children 1 is plenty he keeps me busy enough, I know we have have OK incomes and yes I think the odd £20 here and there does add up we need to make sure all our money is accounted for and It is not currently. we will sit down this weekend and go over everything thank you for your comments as with all the others this is what I need to get things moving in the right direction.

the house is a whole other story if you look at this you will understand why I am not paying any of it off currently https://forums.moneysavingexpert.com/discussion/5511601 it is a big mess and has been for many years once I have cleared my debt the plan is to save for a deposit and move.

thanks again for all your help