Have i done the right thing

carlos700

I am not sure where to start really but basically i have managed to get myself into quite alot of dept going back i would say by 7 years when we bought our first house .The house was old and i wanted it to be nice so i would get loans to have home improvements done or borrow on morgage also use credit cards we ended up selling the house but i am still paying for stuff yet .I am saying i because my husband does not know how much i spent i feel so embarrassed.I do not think that i have really learnt anything from this as i cannot seem to help myself spending if i want somthing i get it .I suppose now i am worrying because i know i need help.

Our situation is now my husband works full time and i do not work because we have children ( i am planning to go back to work when children are at school )The loans which i mentioned will be paid off in 6 years time i owe £25,000 on them so in 6 years we will be much better off .

This is the bit which has made me really worry i have changed the morgage from repayment morgage to an interest only morgage to free up some cash per month .It is because of me not working now i was paying everything on time etc but we only had £100 per month spare money for food ,petrol etc and we were really struggling .My plan is to pay interest only on the morgage for the 6 years then go back to repayment when our situation will hopefully be more stable as then i will have no loans and i could go to work.I just cannot help but worry at what i have had to do ,the thought of messing with the morgage but i had no option.Thanks to you guys i have cut back on everything and i sell everything i can on ebay.

Basically i need to know that i have done the right thing with the interest only .Sorry to go on a bit not really sure what else to say .

postingalwaysposting

it depends on your situation and how you view mortgages/lending. No one can tell you outright you have done the right/wrong decision imo.

If however you want money advice or how to shave money off you bills so you can overpay your debts and try and bring the repayment time down look at this post http://forums.moneysavingexpert.com/showthread.html?t=107280 and post a detailed soa... this includes all incommings (wages/benifits) as well as all your outgoings (mot/petrol/debt repayments/even £5 morning papers) then write down all your debts and aprs ammount outstanding and maximum lending potential. Then most of us can raly around and have a look at it and suggest ways to cut back and get that debt repayed faster than ever :T

good luck

carlos700

MONTHLY INCOMINGS

partners salary £900
benefits including tax credit £800

TOTAL £1700

monthly outgoings
morgage £597.28 (interest only )
council tax £113.00
gas £40
electric £40
tv licence £21( i think)
phone .internet,tv £55.00
food £250
car insurance £21.01
petrol £50.00
life insurance £7.86

TSB LOAN balance -£7000 APR 11.4 -LENGHTH of term 5 years (2 years to go)

TSB LOAN balance -£8000 -APR 17.4 -length of term 6 years (5 years to go )

NORTHERN ROCK LOAN balance -£3900 -APR 7.9 -legth of term 10 years (5 years to go)



CREDIT CARDS mbna £2600 -0% FOR 6 MONTHS (LIMIT £3000)

TSB balance -£2900 -16.6 % apr -(limit £15000)

M & S-balance £2500 -apr 7.9 for life (limit £4500)


debehams store card £239 APR 26.4 %
ARGOS £221 -27.9% apr
next balance £262


My total out goings are around £1796 per month
I have more or less what is coming in is going out we do get alittle extra if husband does overtime usually around christmas but over time is not garnenteed .I sell the odd things on ebay but as you can see the budget is tight .
I am feeling really worried now .

Floss

Hi Carlos,

Could you give us a bit more detail please? Take a look at MSE Andrea's newbie thread for help with posting an SOA (statement of affairs).

We need ALL your outgoings to try & help you - travel, car & expenses (MOT, road tax etc), insurances, mortgage, bills, council tax, phone, tv, tv licence, food, petrol, broadband, children's activities, general spending etc.

Good luck & welcome :hello:

Floss

carlos700

hI floss sorry i had to edit my post ,it posted before i had finished completing my SOA but would just like to add what i am paying monthly for those loans

TSB loan -£222.81 per month

2nd TSB loan £159.76

northern rock £59.00

trying-very-trying

I'm assuming that your husband does know about switching the mortgage to interest only??

trying-very-trying

carlos700 wrote: »

MONTHLY INCOMINGS

partners salary £900
benefits including tax credit £800

TOTAL £1700

monthly outgoings
morgage £597.28 (interest only )
council tax £113.00
gas £40 have you checked that you are with the cheapest supplier?
electric £40 ditto
tv licence £21( i think)
phone .internet,tv £55.00
food £250 how many is this for, can it be cut down?
car insurance £21.01
petrol £50.00
life insurance £7.86

TSB LOAN balance -£7000 APR 11.4 -LENGHTH of term 5 years (2 years to go)

TSB LOAN balance -£8000 -APR 17.4 -length of term 6 years (5 years to go )

NORTHERN ROCK LOAN balance -£3900 -APR 7.9 -legth of term 10 years (5 years to go)



CREDIT CARDS mbna £2600 -0% FOR 6 MONTHS (LIMIT £3000)

TSB balance -£2900 -16.6 % apr -(limit £15000)

M & S-balance £2500 -apr 7.9 for life (limit £4500)


debehams store card £239 APR 26.4 %
ARGOS £221 -27.9% apr
next balance £262


My total out goings are around £1796 per month
I have more or less what is coming in is going out we do get alittle extra if husband does overtime usually around christmas but over time is not garnenteed .I sell the odd things on ebay but as you can see the budget is tight .
I am feeling really worried now .

I'm not really much good at picking through budgets, I'm sure someone more experienced shall be along with more ideas soon.

Is there any chance that you could get a part time job? You could try mystery shopping, take the weans with you

calleyw

The things you can cut back on.

phone .internet,tv £55.00 -that is rather high are you with Virgin media they where doing 3 for £30 so that is Tv, phone and internet. Get a free view box.
food £250 - I suspect you could cut about £50 off even if there are 4 of you.

You don't seem to have any water down is that correct. You can pay council tax and water over 12 months rather than 10 does not save a lot but helps to budget better a year.

You also have nothing down for haircuts, clothes, presents car tax etc. These do need to be budget for.

All the best.


Yours


Calley

carlos700

HI i am on the package of 3 for £30 with virgin media but somehow i keep having to pay extra for the phone because it is only local numbers which are free.The bill always seems to be around £50-£60 per month so i will have to watch this .

The shopping is for 2 adults ,2 children ,1 baby .I am always looking at the old style boards i am getting better at saving on shopping and batch cooking so yes i think i could save some more money there .

How much would you say i could cut my shopping bill down by ?


I wrote on here a while ago saying my parents were giving me some money well it is not as much as i thought but it will be around £4000.I am still not sure what to pay off with this £4000 i really need help with this

Floss

If you paid off the Next, Argos, Debenhams cards, that would be £722 (based on the figures you've given).

That would leave you approx £3278 to throw at either the MBNA to get rid of that before it's 0% finishes, or at the TSB card to clear that balance and leave some left over for another c/card - not sure which would be best option (someone else will know - Rog2?)

trying-very-trying

I think there's something called the snowball calculator that can show you the quickest way to pay off your debt.
Sorry I don't have the link, but I'll look for it.

I think this is it http://www.whatsthecost.com/snowball.aspx