at breaking point... urgent advice needed !

shazza1961

Hello,
To cut a very long story short, I m in debt up to my eyeballs and dont know waht to do !! I have been robbing peter to pay paul as it where
Here is my debt / outgoings:
Capital one card - £5500 - £200 a month
Abbey Card - £5600 - £50 a month
Lloydstsb Card - £5600 - £120 a month
Overdraft - £1800
Loydstsb Loan - £11000 - £283 a month 36months left
Abbey Loan - £10000 - £180 a month 4 1/2 yrs left

I also pay out:
£630 Morgage
£103 council tax
£86 gas/electric
£70 Phone/Net/Sky
£36 car insurance
£27 Morgage/redundancy insurance
£25 baby bond
£30 home & contents insurance
£114 nursery fees
£30 a month petrol

Shopping is £75 a week, if I have to buy toiletries and nappies its £95.

I have £1350 per month wages
£160 per month family allowance
£200 per month tax credits

I have 3 boys, eldest is 17, he has a part time job and attends college, I dont have to give him money :T the next is 12 and my youngest is almost 2.

Any advise is greatly appreciated, i dont know what to do

I dont go out, drink or smoke, please dont ask me to get rid of Sky

Thanks guys:T

Gemmzie

£1710 income - £1491 outgoing leaving = £219 for your debts. Your payments you give are £833 so you are overspending by £614 a month which probably explains the overdraft.

What are the APRs on the debts?

£630 Morgage
£103 council tax
£86 gas/electric
£70 Phone/Net/Sky You have to cut this down, the basic package is £26
£36 car insurance this is really high
£27 Morgage/redundancy insurance
£25 baby bond stop this for now
£30 home & contents insurance
£114 nursery fees
£30 a month petrol

Shopping is £75 a week, if I have to buy toiletries and nappies its £95. This could be cut down, have a look at the OS (Old Style) board.


You earn a good wage, but you have to reduce your debts and the only way to do that is to drastically cut your outgoings.

Sorry if that seems a bit harsh, it's said with the best intentions, good luck.

cat4772

Hi Shazza

You outgoings exceed your income by nearly £400 a month.

check "entitledto" to see if you are claiming everything that you can.

After that, balance transferring debts to 0% or low % for life of balance on your credit cards.

I would suggest you contact the CAB, nationaldebtline, CCCS and/or payplan for advice.

Good luck.

Cat.x

dsljfreeman

shazza1961 wrote: »

Hello,
To cut a very long story short, I m in debt up to my eyeballs and dont know waht to do !! I have been robbing peter to pay paul as it where
Here is my debt / outgoings:
Capital one card - £5500 - £200 a month
Abbey Card - £5600 - £50 a month
Lloydstsb Card - £5600 - £120 a month
Overdraft - £1800
Loydstsb Loan - £11000 - £283 a month 36months left
Abbey Loan - £10000 - £180 a month 4 1/2 yrs left

Total Debt £39,500
Payments £833.00

I also pay out:
£630 Morgage Can you change this to interest only for a year or two?
£103 council tax Is this over 10 months or 12
£86 gas/electric Maybe have a look at Quidco.com to see if you can get a better tariff while earning cashback
£70 Phone/Net/Sky I knowyou said to say nothing but it really is a luxury and one you can't really afford, sorry
£36 car insurance Ditto Quidco
£27 Morgage/redundancy insurance
£25 baby bond Is this savings, could it be put on hold for a year maybe?
£30 home & contents insurance Ditto Quidco
£114 nursery fees
£30 a month petrol

Shopping is £75 a week, if I have to buy toiletries and nappies its £95. Look at old style board for tips on cutting back and meal planning. Keep a spending diary

Total Outgoings approx £1500.00
Plus debt £2333

I have £1350 per month wages
£160 per month family allowance
£200 per month tax credits
Total £1710
Deficit -£623 approx

I have 3 boys, eldest is 17, he has a part time job and attends college, I dont have to give him money :T the next is 12 and my youngest is almost 2.

Any advise is greatly appreciated, i dont know what to do

I dont go out, drink or smoke, please dont ask me to get rid of Sky

Thanks guys:T

I have put my suggestions above, I'm sure the more experienced dfw'er will have more to say.

But welcome to the board, you are in the right place, I joined up last month and each month I had a deficit of about £200, I cut back drastically and am now living within my means

Laura x

GettingThingsDone

Hi Shazza - welcome to DFW, as others have said, you're in the right place

On a slightly different tack, do you have anything you could sell/ebay?

Good luck and keep posting

gtd

delboypass

any chance remorgaging to pay off the loans?

It isnt a huge amount only ~£35k and will take away all your daily worries

and your morgage APR will probably be lower than 75% of your credit cards if not all of them

Otherwise your knackered anyway as outgoing more than incoming so your debts will only get bigger mo matter how much you pay back below this threshold.

chardonnay_2

on your credit cards & loans what are the apr's and what are the cards limits?

i would suggest getting rid of the mortgage / redundancy insurance, and as others have said you can't afford the baby bond payments you can always increase them at a later stage - perhaps when your younger kids are back at school.

quidco is a fab cashback site and if any of your policies are due for renewal you can sometimes pay for / or pay towards their cost due to cashback.

do you still buy your eldests toiletries, if so explain your situation and get him to buy these for himself.

try a cheaper brand of nappies (aldi's have had good reviews)

tigtag02

delboypass wrote: »

any chance remorgaging to pay off the loans?

It isnt a huge amount only ~£35k and will take away all your daily worries

and your morgage APR will probably be lower than 75% of your credit cards if not all of them

Otherwise your knackered anyway as outgoing more than incoming so your debts will only get bigger mo matter how much you pay back below this threshold.

Im sorry but this is not good advice and not something we would normally recommend on DFW.

Snaggles

Yes, have to agree I'm afraid - please think very very carefully before securing your debts against your home - it's the very very last resort. If you can't meet your payments, you might lose your home.

Snaggles

Nappies - I pay for nearly all of mine by using Pigsback to earn Boots vouchers, then buying their own brand (made by Pampers and VERY similar) when they're on offer. Haven't paid for any out of my shopping budget for over 2 months!

mumzyof2

when buying from boots through pigsback do you have to pay by card? also you say u pay for nappies thru pigsback but if you pay online surely you have to get them delivered?