Lots of debt helo needed please

cms-help

Debtfreewannabe55 wrote: »

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!

Ah, I actually did a series of lessons on water conservation this year so my class were experts on this and worked out (as an average) how much water they could save the school! Plans currently being put in place!!

Anyway, have a look at Hippo the Water Saver.

We're very blessed as we're not Debt Free Wannabees but have supported my mother-in-law through sorting out a complete and utter financial mess. As a tip - do you use topcashback? We found out about this a few years ago but never did anything about it. I got into it again this year and and, so far, have generated £300 just linking via their website to things I would have bought anyway. That's "free" money so am just stashing it in readiness for Christmas shopping.

Debtfreewannabe55

Cms-help thank you I have just looked at hippo but it says our type of toilets is not recommended to be used with Hippo. Any other ideas at all please?
You are very lucky and sensible I dream to be debt free before I retire!! I bet your mother in law is very grateful.
I haven't looked much at top cash back sites, I will see what I might be able to use as I'm trying not to spend anything but obviously anything I would be buying anyway I will look to use, good idea!
Thank you

Debtfreewannabe55

Fat belly, thank you for your reply. It's going to be very tight, I am really not keen to access these charities, although very helpful I wouldn't like to go on to a plan as it wrecks your credit which currently ours isn't too bad considering the amount of debt we have!
Family loan is paid off next sept and our electricity arrears will be paid off in Dec this year so that will all help the. Car loan paid off year after. It's just now that we need to try and increase income really and really really budget/save

cms-help

Debtfreewannabe55 wrote: »

Fat belly, thank you for your reply. It's going to be very tight, I am really not keen to access these charities, although very helpful I wouldn't like to go on to a plan as it wrecks your credit which currently ours isn't too bad considering the amount of debt we have!
Family loan is paid off next sept and our electricity arrears will be paid off in Dec this year so that will all help the. Car loan paid off year after. It's just now that we need to try and increase income really and really really budget/save

I suspect your credit might be hit more badly than you think. Pay day loans are never viewed favourably by mainstream lenders. I'm no expert but I think you'd struggle to access any mainstream borrowing with the debt you currently have (e.g. accessing 0% transfer cards etc).

Also, I don't mean to be harsh, but is your SOA accurate? Your husband has been borrowing to meet repayments. Whilst you recognise, on paper, there is a £60+ shortfall that you could plug, it would suggest there is much more money being spent. The question is where?

pmlindyloo

My thoughts.

Yes, there are a few things you can do to tweak your outgoings and income but things are extremely tight.

If you are absolutely adamant that you do not want a DMP then I think you seriously need to go and live with parents for a year (maybe less).

The Pay Day loans' interest rates are horrendous.

If you lived with your parents for 6 months or a little longer then you could probably get these pay day loans paid off in full. Without those and bringing in more income and tightening your belts you could probably manage afterwards.

I realise that this option is not what you want but I think your options are straightforward:

A DMP
Living with your parents
Years of scrimping and saving
Borrow money from family to pay off the Pay Day loans and pay back the loan at a reasonable rate - is this a possibility?

To succeed with dealing with major debts you do need to have a sense of success. With those Pay Day loans paying them off bit by bit will take forever. You need to get those down asap. Just think of the amount of money they are making!

Sometimes you need to take a short term 'hit' (ie. staying with parents) in order to have a better future life.

Can you do some sums as regards staying with parents? Can you speak to them and see how much you would have to pay them and then make a budget plan on how you will pay off the loans?

I really admire people who go all out to pay off their debts but in your case I do not think you have enough 'wriggle room' to make this work.

Good luck!

Debtfreewannabe55

Cms-help, yes our SOA is accurate from now. For entertainment I have written £10 but previously I am sure we spent more than this on takeaways and dinner out. Clothes honestly we do not buy anything and haven't for months as we just didn't have the money. My daughters clothes are all hand me downs from my niece. Previously he has accessed the pay day loans but haven't done in the last couple of months. I have seen my credit report and it's not too awful considering the debt but not all of it is in my name my husband's credit report is worse for sure and he wouldn't get credit but I would like to try and sort the situation before going in a plan ideally. I've only just got the true whole picture and I'm just getting my head round it all so I'd like to try and sort some of it myself but I acknowledge that if I can't I will ask for help. Thank you

cms-help

I think Lindyloo makes a very valid point. Looking at the Sunny loan alone, if you only make the minimum repayment then that balance will only increase as the interest will be more than the repayment you make. There is a poster on here who is very good with these sorts of figures and giving you interest figures and years to pay off etc.

You have absolutely no room for anything to break etc as you have no emergency fund. Even shoes for your child will be a struggle (I appreciate clothes can be handed down but she'll need shoes).

sourcrates

Hi,


As another poster has said, having pay day loans is a massive red flag for any potential lender, it suggests that you cant manage your finances.

You say you are reluctant to go down the debt management route, but there's nothing to stop you writing to your lenders, credit card accounts anyway, and telling them your struggling, and ask for interest to be stopped, most will put you on some kind of temporary plan, without it affecting your credit file.


Stopping interest even on a few accounts would be massively beneficial to you, if you don't ask, you don't get basically.


To be honest with you, after looking again at your SOA, you are 30k in debt, and probably more than £60 per month short to make repayments, add to that the Hugh amount of interest you are paying, I would seriously look at a more formal solution to this, you could do an IVA, but that would be 6 long years, Bankruptcy would be the option I would look at.


Now that may sound drastic, but the process has recently been overhauled, you no longer have to go to court, you are usually discharged after 12 months, you may have to pay for up to 3 years into your bankruptcy, but after that, you will be debt free, and able to start again.


As a first step, I would recommend that you go to the stepchange website, use there online debt tool, and see what option it recommends for you.

poppasmurf_bewdley

You have £30k worth of debts between you, which is a lot of money, and you are evidently having difficulties paying it off.

Why not look at a Debt Relief Order for both of you. If you can divide the debts between you, and you can meet all the other requirements, it may be the ideal solution to giving you a fresh start.

https://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx

sourcrates

poppasmurf_bewdley wrote: »

You have £30k worth of debts between you, which is a lot of money, and you are evidently having difficulties paying it off.

Why not look at a Debt Relief Order for both of you. If you can divide the debts between you, and you can meet all the other requirements, it may be the ideal solution to giving you a fresh start.

https://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx

Good pick up pops.


I thought about a DRO, however the OP has assets, ie, a car, which they haven't listed as an asset, but still have in excess of 4k to pay on it.


So on paper, it looks like its worth more than a grand unfortunately.