Lots of debt helo needed please

Debtfreewannabe55

Hi there, I am new here and have just done our SOA below. A few things to mention:
-This is our joint debt and joint income
- Electricity is high as we are paying for an arrears when we changed providers this ends in December
- mobile phone is high I pay £17 sim only and my husband is the rest it ends next year
- BT TV - includes internet and land line and TV
- We only buy clothing with birthday money/christmas we might get
- Car maintence/birthdays/christmas/emergency fund - we currently do not have anything saved for these we are starting this next month and this is reflected in SOA
- Pet insurance includes monthly pet food too
- contents insurance is paid annually and I have just this month paid that £62
-Other insurance is my monthly subscription and insurance for my job
-I also have to pay a yearly fee of £120 which I need to start saving for too it is due this month and I have managed to save for this but for future years I need to factor that in
- We have no assets the car we have we pay a car loan for which is due to be completed in 2 years
- We both have OD mine is an old student one which is interest free until December this year and I am unsure of the interest on my husbands
would you recommend getting a new account and to pay off the OD monthly?
- Tesco credit card is interest free until sept '17
- MBNA credit card is interest free until Oct '17

- My husband has only just recently told me of the credit situation and was trying to manage it by himself (thus why so many pay day loans etc)
I am now in control and this is why I really need all your advice really. What to pay off first? How to go about keeping on top of every payment? I am happy to manage it myself I don't really want an debt plan. I am going to start doing some extra shifts which will go to helping fill the gap.

Its so embarassing and I feel very worried about it all. We have talked about moving to one of our parents house but we have an 18 month old so that really would have to be very very desperate times.
I'm thinking/hoping to try and reduce our grocories but that does include toiletories too not just food.

Anyway any help would be much appreciated
Thank you


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1600
Benefits................................ 82.8
Other income............................ 0
Total monthly income.................... 3082.8
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 91.5
Gas..................................... 41.5
Oil..................................... 0
Water rates............................. 45.5
Telephone (land line)................... 0
Mobile phone............................ 66
TV Licence.............................. 12.12
Satellite/Cable TV...................... 56.37
Internet Services....................... 0
Groceries etc. ......................... 210
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 12.68
Car Insurance........................... 31.72
Car maintenance (including MOT)......... 33
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 162
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 47
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 36
Other insurance......................... 20.41
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1937.8

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco credit card..............1894.52...45........0
Barclaycard....................9194.39...205.......13.71
MBNA...........................2445.73...26........0
Family Loan....................1560......130.......0
Car Loan.......................4278......152.8.....0
Overdraft......................750.......0.........0
Overdraft......................1000......0.........0
Halifax........................67.96.....6.........9.45
Capital one....................90........10........30
Barclaycard....................1200......50........13.71
Vanquis........................230.......25........49.9
Aqua...........................1180......65........49.9
Safety Net Credit..............517.......30........15.8
Advant Credit..................1856.55...123.7.....51
Wage Day Advance...............156.......56.17.....29
Sunny..........................425.......126.......1299
118-118 Loan...................3100......155.......71
Total unsecured debts..........29945.15..1205.67...-

Monthly Budget Summary
Total monthly income.................... 3,082.8
Expenses (including HP & secured debts). 1,937.8
Available for debt repayments........... 1,145
Monthly UNsecured debt repayments....... 1,205.67
Amount short for making debt repayments. -60.67
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -29,945.15
Net Assets.............................. -29,945.15

crazy_cat_lady

Hi
I'm no good at commenting on stuff like this I'm afraid... Do you get any help with your childcare costs at all? Vouchers through work? Your rent looks massive to me but I don't know what the going rate is for rent these days...
I just wanted to wish you luck with it all. It seems to be the payday loans that are crippling you. Is your hubby definitely on board and willing to muck in and help?
Do you have stuff you can sell? Overtime? The sooner the payday loans are gone the easier things will look.

Debtfreewannabe55

Hi crazy_cat_lady,
Thank you for your reply. Childcare costs we can get vouchers which my husband is in the process of applying for but we will still need to pay that amount monthly wont we?
Rent is fair for where we live we have discussed downsizing but once you pay fees and deposit its not really worth it. We have talked about moving with parents but thats really not an ideal solution unless there really is no other way.
I am so annoyed he went to pay day loans but its done now so we just have to work through it together. He is defo on board and willing to do extra work if there is any and talking about a second job (but tax dependent) We don't have anything to sell, we have sold everything worth having (xbox, jewellery,clothes) Hopefully we can get there soon!

Karonher

I can only see a few cuts - gas, cable TV, groceries may be able to be cut a little - maybe for the pet as well.

I would certainly pay the four very high loans off asap -Vanquis, Aqua and Advant and 118.

Rent is very high - it may not be ideal but 6 months with parents would save you not just the £800 but gas, electricity apart from arrears, TV license and cable, internet, water rates, council tax - and a rough adding up comes to £6,500 and that does not include non-arrears electricity. That is just £1000 less than the PDLs.

cms-help

Debtfreewannabe55 wrote: »

Hi crazy_cat_lady,
Thank you for your reply. Childcare costs we can get vouchers which my husband is in the process of applying for but we will still need to pay that amount monthly wont we?
Rent is fair for where we live we have discussed downsizing but once you pay fees and deposit its not really worth it. We have talked about moving with parents but thats really not an ideal solution unless there really is no other way.
I am so annoyed he went to pay day loans but its done now so we just have to work through it together. He is defo on board and willing to do extra work if there is any and talking about a second job (but tax dependent) We don't have anything to sell, we have sold everything worth having (xbox, jewellery,clothes) Hopefully we can get there soon!

Your nursery bill will still be the same but the childcare vouchers save the adult money on tax and national insurance so you, effectively, take home more money at the end of the month. I have these and claim £243 a month through work which actually cost me around £170. £243 is taken from my salary by work but my tax/national insurance contributions are reduced. Easier to explain by example:
Salary: £15,000. Take home pay after tax/national insurance: £1113.
Same salary with childcare vouchers deduction of £243: take home £948

So you get £243 worth of vouchers to pay nursery with but your salary is only reduced by £165. So you save £78 per month. Does that make sense?

Edited: you can both claim these too although your nursery costs seem to say you don't need it. Do you have help from family with childcare as your childcare is really cheap if your child is at nursery full-time?

cms-help

1. Can you split your council tax over 12 months instead of 10? You don't seem to have save the 2 "free" months anywhere so would help to balance the books a little. Frees up £20 a month.

2. Your water is very high for 3 of you. Are you on a meter?

3. Mobile phone, although you are already aware of this. We have 2 phones on contract with unlimited calls/texts for £31 a month. We have some data on that package but we don't use it as use the wifi at home and work when we're there.

4. Satellite. Get rid. Go freeview. If you're in contract, ring them and say you can't afford it.

5. Presents need to go or be reduced.

6. What's the medical money for?

Regardless of any reductions you make above, things are going to be very tight and you're not going to make massive inroads into these debts without significant extra income. If you do overtime at work, what are you likely to earn extra? And will that increase your childcare costs?

Finally, any idea what you have spent £29k on (other than the car)? If it can't be accounted for then your SOA likely isn't accurate.

Debtfreewannabe55

Cms-help,
Thank you for your reply. I work a long day and a night shift as I am a shift worker so we only need childcare for one day a week luckily. I have looked at increasing my hours during the day but it doesn't cover the childcare. I tend to pick up 2 extra night shifts a month which helps and that's regular but I am also considering picking up some more shifts as long as someone can look after my little girl as paying for childcare would be counter productive. My husband does nights also so it needs to fit with his shifts, there is rarely overtime at his work.
Thank you for explaining that to me at least now I can explain to my husband who also didn't understand it!

Debtfreewannabe55

1. Council tax- very true had thought about changing to 12 months and I forgot that, thank you. Do I just call the council to do this?
2. We are on a meter, is that high for 3 of us? I don't really know. I try to be careful with water any saving ideas on this area at all please?
3. As soon as his contract is up we are reducing this for sure
4. Bt TVs costs £9 a month as its all in with land line and Internet so I am looking at this
5. My husbands family is really big so we have to have a fair budget to buy gifts
6. Medical money is my husbands contact lenses

I think both of us know we need to bring in extra to reduce the amount that's what we are trying to sort now. If I work weekends I get some extra money so that's what I am trying to book in but obviously won't see that until month after you have done the work and it's tax 'd etc but should be extra.

I think in all honesty it's just been an ongoing lack of income so we have been substituting by using credit cards. We got married 6 years ago and then I went to university for 3 years all in the same year and I am sure we just have never really recovered from that. Really really stupid and now we are paying for it, literally. My husband was trying to protect me so he tried to manage it, unfortunately didn't do a good job and now we are worse off. It's such a lot of money once you write it down on paper I just want to see some sort of improvement just for my psychological benefit! Didn't realise it was this bad until now. Plus we then had a baby 18 months ago. So now it's time to sort it out!

cms-help

1. I believe you just ring them and request it but have never done it. Someone will be along who knows.
2. Yes, would say water is high for 3. I have 2 energetic boys, the washing machine is constantly on and we pay around £10 a month less. We do have the water saving devices in the toilets etc.
5. You might have to explain to family that the gifts are going to have to go on hold until you're back on your feet. Just buy for children instead of the entire family. There are ways around things and people will understand.

Overtime will be extra in spite of tax. You only lose 20% of what you earn in tax and then around 10% (I think?) for national insurance.

You need to hit Sunny as soon as you can. That interest rate is appalling. It would also seem to free up the shortfall.

Debtfreewannabe55

Thanks so much for your reply. What are these water saving devices in toilets and things please?
We already just buy for children at Christmas and we never buy for each other haven't done for the last year at least as the family is so big. I am always looking for deals though and try to buy over the course of the year but never save for it, which I really need to do.

I know I was so upset when I saw he had gone to pay day loans the rates are so horrendous and I believe he shouldn't have been able to get them, that's another story.
I have been following the thread about claiming back which I am looking into now as he had a few concurrently in order to pay the ridiculous interest. Just trying to get all the information together, takes ages and it won't be a quick response I don't suppose!

fatbelly

Hi

This is a case where you have a few options, maybe two main ones. On the one hand I suspect you are spending a bit more than on the soa (nothing for clothes for instance). On the other hand there are a few bits on your expenditure that could come down. You are not really making inroads into your debt but the car loan finishes in 2 years and then you might do.

So (1) is scrimp for 2 years and then review

(2) is go for a debt management plan now and try to kill the interest. I would say it's worth having a chat with Stepchange or Payplan to investigate option (2)