Huge Overspend

Feral_Moon

Hiddenidenity wrote: »

Cut the credit card up and stop spending on it now. Starting today.

You need to create a realistic budget, one you actually do spend the things in it and accurate amounts, along with one that works without a shortfall especially one at £800.

You need to get to the route of the problem. Stop spending online, seek help. Remove yourself from mailing listings for all the temptations, unfollow all those tempting items online.

Find something free to occupy yourself. Reading, a hobby, anything that isn't at so expensive.

Look around and sell some of the 'stuff' that's made you 20k in debt.

It might have only took 10 months or whatever to get negative 20k but it will take a whole load longer to get even. If you don't make those changes now you'll be back here in 6 months 30k in debt.

I dont want to sound harsh but thats how it is. You need to separate your wants from your needs.

I want a lot of things, but I can't afford them, nor do I need them.

Speaking to one of the debt charities is still probably a good idea. Good luck x

I completely agree with you and posting here and reading people's suggestions is making me see where I can start to make some changes. Thank you :beer:

Puddylove

Right, I don't mean to be unkind but see this as tough love!

You can't afford to keep going the way you are - it's not sustainable.

You have dismissed nearly all the suggestions that we have made, with the exception of agreeing to sell some of your internet purchases but even then you've implied that you'll use any monies made for more leisure activities.

You WANT a car and a Campervan - you don't NEED both.
You WANT to feed your dog a raw diet - a luxury (have you got vet insurance, incidentally?).
You WANT a bigger house but your son would probably rather sleep on the sofa than see you go bankrupt (same applies for the Campervan).

To put it in context, my income is a lot higher than yours, yet I wash my own Windows, rented the smallest house I could find, so have much smaller utility bills too. I wouldn't afford a car and a Campervan.

It's your life and your choice - but it might be more constructive if you post a new budget SOA with what you intend to change/spend going forward.

Puddylove

P.S. You also might want to budget your shops using your credit cards - but you don't have the discipline needed. Cut it up.

Feral_Moon

It's not a case of WANTING a bigger house - this is OUR home! I can't just make my son homeless even if there were any smaller properties to move to. The only one bedroom properties in this area are sheltered accommodation.

Yes, I do have pet insurance which my son pays for. And feeding a raw diet is NOT a luxury, it's a necessity to maintain good health. And it wouldn't be much cheaper to feed a dry food diet even if I wanted to. I've also spoken to my son this evening and he's agreed to contribute another £25 a month towards the food bill, so that's just £75 to pay now. And flea/tick/worm treatment only costs me £40 a year.

I certainly haven't dismissed all suggestions people have made. I'm giving everything mentioned serious consideration. However, there are levels of priority and certain NEEDS that whilst you may consider to be WANTS are significantly beneficial to me due to serious ongoing health conditions.

There has to be a certain quality of life and a reason keep going each day otherwise what is the point? I don't have expensive TV packages; I very rarely go out socially, maybe just for a family birthday; I don't smoke, although I do drink - a little too much at times. I don't spend money on expensive takeaways or processed ready meals. I batch cook and freeze extra portions. I've just looked in the freezers and cupboards and I reckon there's enough in to feed me for at least two months!

Aside from the compulsive internet shopping (most of which I don't even need) I actually live quite a frugal lifestyle, believe it or not. I've already agreed that I will stop using the credit card and work out an affordable budget so I can transfer cash into another current account and use only that to cover monthly spending.

I'm also planning to start selling items I don't need to raise extra cash. And yes, whilst I can use some of it to fund the campervan, thus reducing monthly outgoings even further. Any surplus will go directly to paying off debts. I could also temporarily reduce the monthly payments on the other credit cards so that I'm breaking even and not adding any further debt.

I know it won't be easy to start with as I'm not good at coping with change but I know if I continue as I am then I will be facing bankruptcy further down the line. It's been on my mind for a while now but last night was my "light bulb" moment as they say when I actually filled out the SOA so I could see exactly what's going on.

I used to be so in control of my finances but due to a chronic decline in health I've taken my eye off the ball and buried my head in the sand to the point I haven't even wanted to look at my credit card balance these past few months so I wasnt even aware of how much I was overspending.

Thanks to posting here and listening to everyone's advice I'm starting to see where I can make progress. I'm trying to avoid at all cost going on a DMP or face bankruptcy. It's the last thing I want.

Karonher

You have had the suggestion of bankruptcy and a DMP but I don't think you could get either.

I cant imagine you would be allowed £300 food and £100 dog food in the expenditure. Nor will they allow £600 internet shopping.

Take £200 off the food bill, add the £600 internet shopping and you have more than covered the shortfall, that's before you cut your dogs expenses and luxuries.

tempus_fugit

I'm confused. You say you can't downsize because you need the room for your son but you are also paying bedroom tax? Is your son in the forces? If so you shouldn't have to pay bedroom tax unless you have an extra room over and above what you and your son need?

But I'm afraid I can only add my voice to what others have been saying, you need to cut back on your Internet spending, which you have agreed with but it seems that you are unable to actually do that for one reason or another. In which case, there is no alternative, your debt problems will just get worse. There is no other magic solution that any of us can come up with unfortunately.

Feral_Moon

Karonher wrote: »

You have had the suggestion of bankruptcy and a DMP but I don't think you could get either.

I cant imagine you would be allowed £300 food and £100 dog food in the expenditure. Nor will they allow £600 internet shopping.

Take £200 off the food bill, add the £600 internet shopping and you have more than covered the shortfall, that's before you cut your dogs expenses and luxuries.

I really don't want to go down the route of DMP or bankruptcy. I prefer to stay in control of my own finances.

The compulsive internet spending is definitely an area which needs addressing urgently. I've been discussing it with my son this evening and he's agreec to support me in this by taking control of my credit card and only allowing essential purchases. He's on leave for the next couple of weeks so we will see how this works out.

The £300 food bill was an estimate. I will go through previous bank statements tomorrow to calculate it as well as keeping a detailed record of grocery purchases over the next month. Although I mentioned earlier that I've got a stockpile of food in the freezers and cupboards that should keep me going for several weeks.

Feral_Moon

tempus_fugit wrote: »

I'm confused. You say you can't downsize because you need the room for your son but you are also paying bedroom tax? Is your son in the forces? If so you shouldn't have to pay bedroom tax unless you have an extra room over and above what you and your son need?

But I'm afraid I can only add my voice to what others have been saying, you need to cut back on your Internet spending, which you have agreed with but it seems that you are unable to actually do that for one reason or another. In which case, there is no alternative, your debt problems will just get worse. There is no other magic solution that any of us can come up with unfortunately.

I was exempt from paying bedroom tax whilst he was in training but once he was allocated a permanent room in barracks I had to start paying it. He comes home most weekends and when in leave so needs his bedroom.

bobcat2

sourcrates wrote: »

No amount of budget reduction is going to help you here.

You are over spending by nearly £900 a month, its not sustainable.

Bankruptcy would be my advice, failing that, only other option is (a very long) DMP (debt management plan).

Poor advice. Unless you particularly fancy being bankrupt, this sort of advice should be ignored. The budget is not right, with that level of income and and such small outgoings on rent and council tax there is scope to address the budget and repay the dept without bankruptcy or even a DMP

bobcat2

Your SOA isnt right, it looks like you have an £800 overspend but you don't, this is because you are essentially trying to repay £20k of debt in 18 months, which isn't going to happen. I would re-do it with the minimum payments, which will probably be less that what you have left over after everything else is paid and the rest can be used as overpayments to the debts. If you cut back, budget properly, and start living within your means you'll be able to get this sorted out no worries
I'd also put some assets, so your net assets doesnt look so bad