Drowning in huge monthly payments advise please

bunnymtg

Dobbibill wrote: »

A couple of thoughts from me in red above.

You may benefit from keeping a spending diary to see exactly where every penny goes.

Thank you, I have slightly ammended.

I am getting single persons CT discount over 12 months.
Mobile phone contract I am unable to move it down a tariff. I took this out when I was still with my husband. I also have unlimited data on it and spotify so I use the data as my internet to watch Netflix.

I dont have a TV or watch iplayer. I just watch Netflix.

Car insurance I paid upfront for the year.

Everything else I have ammended.

Thank you very much for you pointers, really appreciated x

bunnymtg

Karonher wrote: »

Unless I have missed something about someone else paying for things there are a lot of gaps in the SOA.

There is nothing for food, car insurance - this would be disastrous if you were at fault for an accident, presents, entertainment, car maintenance and haircuts.

Thank you, these have been ammended.

theoretica

I see two main options - survive on that SOA until you get money from the divorce or sacrifice your credit record to have a less tight budget.


What are the limits on your cards? Some have a much higher payment as a percentage of the balance, so you might be able to free up a few quid for your cashflow by paying all you can off Amex even if it means increasing Tesco and Virgin.

enthusiasticsaver

Are all those cards really at 0%?

You need contents insurance unless it is included in your rent. You should be saving for next years car insurance and £10 a month on car maintenance is a tad unrealistic if the car is only worth £1k. You should also be saving for emergencies. If you have a child having nothing allocated to cloth8ng is also unrealistic.

Your next step really depends on whether the debts really are at 0% and how sure you are of your settlement and when you will get it. Either struggle on until then or enter some sort of DMP. I think personally that budget is so tight a DMP is the only option.

Dobbibill

bunnymtg wrote: »

Thank you, I have slightly ammended.


Car insurance I paid upfront for the year.

Car insurance really should be accounted for on a monthly basis. If this was the month the insurance was due you wouldn't have enough funds for it so you have to ask yourself where did the money come from.

As other's have said, you have a few options


1 - Enter a DMP either with Stepchange, National Debtline, another debt charity or self managed. (This will give you the instant relief but will impact your credit report/future mortgage applications.)


2 - Struggle on as you are, keeping the repayments going until you get the settlement. (This will continue to show payments up to date on your credit report will not be as bad for a future mortgage application as option1)

3 - Get a 2nd job/do overtime to throw every penny at the debt. (This is not always an easy solution as a single parent with childcare - only you will know if this is possible)

You need to consider your options carefully as instant relief may cause more damage longer term. What happens if you don't get the settlement in September? If it's delayed in any way, would it impact your decision making?

All the best.

Mnd

Depends on the date that the car insurance is due for renewal, normally I would 100% say yes, car insurance should be budgeted for monthys, but this is special circumstances where the OPs financial circumstances will change massively in September. Then a revised SOA will need to be done reflecting that the debt payments will be gone. Car insurance can be budgeted for then.

warby68

Could you manage without a car for a short while?

I'm thinking you could use the sale proceeds to help the debt tick over until your settlement if protecting your credit history is a priority.

You are quite constrained otherwise as your accommodation costs are pretty high compared to income.

bunnymtg

theoretica wrote: »

I see two main options - survive on that SOA until you get money from the divorce or sacrifice your credit record to have a less tight budget.


What are the limits on your cards? Some have a much higher payment as a percentage of the balance, so you might be able to free up a few quid for your cashflow by paying all you can off Amex even if it means increasing Tesco and Virgin.

A great idea thank you but they're all maxed out except Tesco and Virgin but they only have about £500 left on each.
I had 2 hours sleep last night. I just cried and cried and cried....

bunnymtg

enthusiasticsaver wrote: »

Are all those cards really at 0%?

You need contents insurance unless it is included in your rent. You should be saving for next years car insurance and £10 a month on car maintenance is a tad unrealistic if the car is only worth £1k. You should also be saving for emergencies. If you have a child having nothing allocated to cloth8ng is also unrealistic.

Your next step really depends on whether the debts really are at 0% and how sure you are of your settlement and when you will get it. Either struggle on until then or enter some sort of DMP. I think personally that budget is so tight a DMP is the only option.

No they aren't all at 0%, some are a mix (bal transfer, cash advance etc)
My settlement amount is 100%. My ex husband and I have gone to mediation and agreed a sum. The consent order went off to court today. So providing the draft is up to scratch with no errors, hopefully the judge will agree it. There is a 12 week backlog though.

bunnymtg

warby68 wrote: »

Could you manage without a car for a short while?

I'm thinking you could use the sale proceeds to help the debt tick over until your settlement if protecting your credit history is a priority.

You are quite constrained otherwise as your accommodation costs are pretty high compared to income.

I have thought about it. But I wouldn't be able to get to work or take my daughter to preschool. I work 20 miles away and her pre school is en route and it is rural so no bus route!

Accommodation is very high agreed. But it is on the lower end for this part of town believe it or not!