Help, outgoings are more than incoming :(

Sarastro

As above...where has all that money gone? It doesn't appear to be on living expenses particularly...

If you have anything tangible to show for it, sell it. If not, it's time to set a budget and get serious about repaying the debt. I think you're spending a lot more than you think.

[Deleted User]

Hi I just want to say that you've come to the right place for support and advice and I wish you luck on your debt free journey.

starting_again_in_the_sun

Just to add, if you ever feel things are getting too much for you, please visit your GP.

Well done for asking for help, no debt problem is unfixable.

enjoyyourshoes

Key is :-

to work out why you are spending, then

know exactly where you are financially every day.

gembo69

I havnt been totally honest, probably because I am so ashamed, but I had a gambling problem.
We did have debts, which were wedding and just general spending over the years, but then I started gambling and the debt just escalated.

I have got help and now been clear 3 months, it was never about the gambling (well it was in a way), but it was more to win money to pay debts off, but the more I lost the more I chased and the more debt I accrued, then the more determined I was to win more to pay it off.
I know now it was so so silly of me and I'm not here for sympathy but I'm not here to be told off because I know I've messed up bigtime.
Other spending was really to keep us afloat, to cover my shortage, to pay for birthdays and xmas, car maintenance...and the biggy was our wedding.
The clothing thing...I just put that down to cover my daughter. My husband and I rarely buy ourselves anything. We rarely go out, maybe three times a year.
The sky is my husbands only luxury for his sport, not sure about that one, could maybe look at reducing it.
We don't smoke, we don't drink in the house and rarely go out drinking. We do get maybe 2 takeaways a week which will be knocked on the head.
The gas/elec was always around £55 dual fuel but last week got letter saying we were in credit and therefore would have to start paying £100 a month.
Not sure about water, we are in a new build so not sure how it works. We both work full time so not in the house most days, but do have 3 toilets, although £45 is still a bit steep.

We have nothing to sell, well apart from the car, but my husband needs that as he travels to different branches quite far out that would be difficult to get reasonable public transport to.

The help to buy loan started in 2011, 5 years 0% then interest has now been added. I'm sure my letter states we have 10 years to pay off. Ill check that.

Hair cuts, I never get mine cut. Husband and daughter occasionally, every 2 month husband and every 4 month daughter.

Mobile phone - I agree are high but stuck in contracts till Sept 18, will look at lowering.

Groceries inc cleaning stuff, really struggle with this one.

Then last of all the 'other insurance' was mortgage protection.

Things need to change and I really do appreciate all the advice, thank you all!

gembo69

I'll also add that none of the cards/loans are 0% and cant get any more credit, so unable to do balance transfer

enjoyyourshoes

Strategically you need to:-

1.0 Resolve why you spend. Seems you have a ticket here.

2.0 Agree with partner the key objective for your life and put that in financial terms (Tick ?, debt payments)

3.0 Identify your annual, 1/2 & 1/4ly costs and start accruing for these monthly.

4.0 Have one bank account & reconcile this daily with all of your spending (start each month deduct accrual form above and all DD/SO. Then keep a running balance with daily costs, don't forget to put all debits from account !

Analyse spending into NEEDS and WANTS, and ditch the wants (whatever they are-presents, coffees, lotto, cigs, booze, nights out etc)

Start reducing spending month by month by keeping track and scrutiny.

List your debts in highest APR first. Pay off highest first. Don't forget to get true cost of OD charges , interest , etc. Pay off the minimum of other CC to avoid excess charges.

Produce a cash flow with all debts (amount, when due, when offer period expires etc) and identify max you can put each month against these debts. Try to increase this max by all your efforts in previous months to reduce your expenditure.

Down grade phone packages, speak to company and see when this can be done.

Get rid of subscriptions (sky, etc etc)

Start reading of playing chess as an alternative.

gembo69

enjoyyourshoes wrote: »

Strategically you need to:-

1.0 Resolve why you spend. Seems you have a ticket here.

2.0 Agree with partner the key objective for your life and put that in financial terms (Tick ?, debt payments)

3.0 Identify your annual, 1/2 & 1/4ly costs and start accruing for these monthly.

4.0 Have one bank account & reconcile this daily with all of your spending (start each month deduct accrual form above and all DD/SO. Then keep a running balance with daily costs, don't forget to put all debits from account !

Analyse spending into NEEDS and WANTS, and ditch the wants (whatever they are-presents, coffees, lotto, cigs, booze, nights out etc)

Start reducing spending month by month by keeping track and scrutiny.

List your debts in highest APR first. Pay off highest first. Don't forget to get true cost of OD charges , interest , etc. Pay off the minimum of other CC to avoid excess charges.

Produce a cash flow with all debts (amount, when due, when offer period expires etc) and identify max you can put each month against these debts. Try to increase this max by all your efforts in previous months to reduce your expenditure.

Down grade phone packages, speak to company and see when this can be done.

Get rid of subscriptions (sky, etc etc)

Start reading of playing chess as an alternative.

Not sure if you read my above post.
1) It wasn't spending, it was gambling and using credit to keep us above water. Hate saying that, so ashamed.
2) Key objective-to at least live in the green, rather than red.
3) What costs do you mean?
4)We don't spend money daily apart from parking really. We don't smoke, drink, buy lotto, coffees...rarely have a night out unless its a major occasion.
5) I have no money to put away to pay, I pay minimum off everything and still in the red each money by a hefty sum, which is why I spend more and more on credit cards.
Obviously looking to stop doing all this.

Yes I understand I need to get rid of subscriptions and I will be ringing my mobile provider today to try and downgrade.

Already rang water company who informed me I am already on a water meter.

thepurplepixie

Is it worth considering bankruptcy or debt management for you even if your husband can't do it because of job?

Grumpelstiltskin

Unless you live in the most expensive water company areas Cornwall maybe? Then £45 for metered water is expensive, can you check this out? No water leaks etc.?