dont know where to turn next

worriedDan

Well done for posting and taking the first steps - it's scary at the start but you are doing absolutely the right thing.

The last bit of your SOA seems to be missing? Are there any other unsecured debts?

I have just quickly run those figures through the snowball calculator using your current rates of interest and £1400 per month available for unsecured payments. It is showing that it will take you 64 months to clear everything, so just over 5 years. I know that you are worried about the interest, but I wanted you to see that this is doable, even if you aren;t able to secure lower interest rates.

Are you able to make your minimum payments each month? If not then you may want to speak to stepchange regarding setting up a DMP. This will usually freeze interest, however this is only available to people who are not able to meet their minimum payments after paying for essential housing/living costs.

You have a good income so you can definitely sort this out one way or another, I had a very similar debt level to you at the start of our journey and we are managing to reduce it each month.

Keep posting.

warby68

I know you haven't finished yet but a couple of things

- no child benefit?
- presume your HP is cars but why is it £21k v car value £14k? Do you have and need 2 cars?
- is the secured loan really that and secured by your home?
- why are you in the level of debt you are ? There is no obligation to share personal details but an understanding of the background to the debt does help people advise. Its also what you need to get a grip of before any debt solution will work well.

Good luck

sammyjammy

Who is your mortgage with? Go online and see what there retention products are. I just changed my mortgage from 3.99 fix to 1.9%, took 2 minutes online, didn't speak to anyone, no cost and no credit check.

hazelbl

chelseablue wrote: »

Regarding the groceries, where do you shop? We are also a family of 2 adults, 1 child and spend around £240 a month in Aldi.

Also the childcare, how old is your child? As when they go to school the bill reduces quite a lot.
My son is 4 and starts Reception in 2 weeks, I cant wait!

He is at school but we have little support so he does breakfast and after school club which is a shame but we do it via childcare vouchers which helps - plus holiday clubs etc.


Great to know that you manage with £300 in aldi - hopeful that we can do it as well with me just getting my specific foods from a main supermarket as Aldi don't do free from ranges and if they do they are small and seasonal frustratingly.

hazelbl

worriedDan wrote: »

Well done for posting and taking the first steps - it's scary at the start but you are doing absolutely the right thing.

The last bit of your SOA seems to be missing? Are there any other unsecured debts?

I have just quickly run those figures through the snowball calculator using your current rates of interest and £1400 per month available for unsecured payments. It is showing that it will take you 64 months to clear everything, so just over 5 years. I know that you are worried about the interest, but I wanted you to see that this is doable, even if you aren;t able to secure lower interest rates.

Are you able to make your minimum payments each month? If not then you may want to speak to stepchange regarding setting up a DMP. This will usually freeze interest, however this is only available to people who are not able to meet their minimum payments after paying for essential housing/living costs.

You have a good income so you can definitely sort this out one way or another, I had a very similar debt level to you at the start of our journey and we are managing to reduce it each month.

Keep posting.

Thank you so much this is really inspirational and knowing that I am not the only one and that it is achievable is great. Yes we can make the minimum repayments which is fortunate and we are spending just over £1500 a month on the unsecured debt - we over pay by £200 currently but hoping it could be more.


What is the snowball calculator as I am hoping to find something that will show me how long it will take, I am not good enough on spreadsheets to do my own.

hazelbl

warby68 wrote: »

I know you haven't finished yet but a couple of things

- no child benefit?
- presume your HP is cars but why is it £21k v car value £14k? Do you have and need 2 cars?
- is the secured loan really that and secured by your home?
- why are you in the level of debt you are ? There is no obligation to share personal details but an understanding of the background to the debt does help people advise. Its also what you need to get a grip of before any debt solution will work well.

Good luck

Yes we get child benefit that is one I missed off so can add in - thanks. Yes sadly we need two cars, I need one for work and hubby works a 45 min drive away and he can't access it for his shifts through public transport. Yes the secured loan is secured on the house. In debt as we have been living beyond our means essentially, bad budgeting, bad money management. Some are from owning an old home and the frustrations that brings with it.

Smellyonion

The cars cost more than your mortgage.


You have 14k car asset yet 45k in secured debt and HP. Does this mean 14k paid off of the vehicles?

hazelbl

sammyjammy wrote: »

Who is your mortgage with? Go online and see what there retention products are. I just changed my mortgage from 3.99 fix to 1.9%, took 2 minutes online, didn't speak to anyone, no cost and no credit check.

Our mortgage offer comes to an end in a few months so am hoping to find a good offer. Spoke to an advisor already in prep but he is talking about a 5yr fix he said he would send details but apparently I could save £4k in total. Who was yours with as it is the credit check that worries me.

hazelbl

Smellyonion wrote: »

The cars cost more than your mortgage.


You have 14k car asset yet 45k in secured debt and HP. Does this mean 14k paid off of the vehicles?

Yes we have paid some off but our biggest car (in terms of payment) is on HP so the total value of the car in terms of what we could sell it for is less than the remaining amount on the finance. We won't be paying the balloon payment and will be handing it back in two years definitely. It is the same but to a lesser extend with our other vehicle if we were to sell it today we would be in negative equity.

middleclassbutpoor

Just taken this from another post so you understand the bit of information we are missinhg

otal monthly income.................... 5,050
Expenses (including HP & secured debts). 1,861
Available for debt repayments........... 3,189
Monthly Unsecured debt repayments....... 1,387
Amount left after debt repayments....... 1,802 - this shows just how much we have been wasting. This figure makes me feel both sick and embarrassed.

Personal Balance Sheet Summary
Total assets (things you own)........... 225,800
Total HP & Secured debt................. -72,580
Total Unsecured debt.................... -60,790
Net Assets.............................. 92,430[

If you are saying that the red figure above for you is £252? Is that on top of your £200 overpayment to MBNA?

The snowball calc can be done here

http://www.whatsthecost.com/snowball.aspx

This will help you understand how long it is going to take to get you out of debt. Takes a bit of time to complete if you don't have all the interest rates etc but a good investment in time.