Day of days- clearing my debt!!!

headinthesand_3

Afternoon All ( stand by its a long one!!!!!!!!! )

Like most people, I have been lurking around here for months before finally deciding that I need to address my debt situation

A bit about me and my friend debt, I am a very together person who like most on here stumbled into debt then ignore it by saying " everyone is in debt" or " live now worry later" my debt has been aquired over 9 years since my marrage really, usual stuff holidays, cars then 2 wonderful kids, etc all these cost mount up so i over spent and tested my natwest card to its limit!!. I have consolidated twice. Finally my marrage broke up for various reasons but i am left with all the debt, so i decided to consolidate ( second time) all up around £25000! repayments are manageable so not a drama. But didn't then budget properly and have started to creep up credit cards again.

I've met an amazing woman who fills my days with nothing but happiness, but due to not budgeting, such massive things like child maintance and petrol to visit kids, i've been just chucking any big purchases on my cards which has got to stop.

We are looking to start a new life together but my debts are really preventing this, mortage, disposable cash etc. So its time to sort this out. My main problem is i can't say no even when i know i'm skint, none of my spending is crazy, such as wasting it on clothes fast cars etc its just little things mounting up. gf earns a fair wage and has a few debts of her own, we are selling her place at the moment, and are moving into rented accom due to my job relocation for a few years then we will buy together, so i have a couple of years to sort this out.

We stand to make around £15000 from the sale and she is all for whacking it off my loan but its my loan and i should deal with it as she has earn that money as she pays for all mortgage bills etc.

really need to address the situation, SOA on its way tell me what you think

Merlot

Welcome to the board headinthesand, and Colchester is a lovely place, I lived there many many years ago, and used to visit the pubs on North Hill.

Post your SOA and you will get loads of useful advice on here from the friendly bunch of posters.

Merlot

headinthesand_3

As promised here is my soa

Income

Wage £1850 net

Outgoings

Maintanance:£450 ( vol agreement )
insurance: £23.13 (specialist for work)
Car Insurrance: £43 per month
vodaphone: £53 ( second phone cancelled waiting for new tariff)
Food : £ 400 ( only house hold bill i pay 2 adults one child )

total: £969
Debt

Natwest loan: £26470 over 7 years, 6 to go! £372 a month 6.9%
Natwest card: £2938 17.9% £50min payment
Morgan stanley card: £2600 14.9 £50 min payment ( dircet debit £100 per
month already)

total: £472
After outgoings: £409 left

Total debt: £32008

Used my isa to clear overdraft which was £1500 overdrawn!! Never been in overdraft until i split with ex and hated every second so paid it off as soon as i could. I have stop isa direct debit and i'm diverting it to one of my cards ( £100 )

Petrol costs vary due to me being away with work so very hard to average some months nil other months £300 ( £90 round trip for kids)
Also kids treats when i see them also vary but prob around £50

Finally my current account now has £400 in it at the end of the month so get paid fri so account healthy for first time since last aug!

I've tried spending log but i never stuck to it, i guess its not for everyone.

Any ideas?

lunar

welcome to the site, you will get loads of support and advice on here if you keep on posting. Well done for your LBM, will be looking out for you SOA.

In_Search_Of_Me

welcome, post your SOA & peope will "assist" in saving you money!

mrsspendalot

OK your food bill is way too high. I spend no more than £200 feeding a family of 5. You can certainly reduce this.

How many children are you paying maintenance for? That is a huge amount of money compared to your income considering you have a child at home as well.

lunar

your debt is similar to mine when i started. you need to put more detail into your SOA, like how much you spend on clothes, going out christmas birthdays, these are the things that can often end up going on cards.

from your wage you have plenty of scope to overpay on the debts. try using the snowball calculator at www.whatsthecost.com it might also be worth keeping a spending diary so you know exactly where your money is going.

you have made a good start, keep on posting and you will get loads of help.

headinthesand_3

Thanks for your quick replies

The £450 is for my two girls, a lot I know but they are my little angels, but I'm trying to adjust the amount with my ex but she is not very happy about it, but csa payments are far to small to really manage on. If i tried to explain i was reducing maintanace to my ex because of new gf@s child i would have no debt problems because she'd kill me!!!

The £400 is what i budget for but generally around £300 if i do the shopping but more like £400 if gf does it she doesn't look at prices for anything! I'm slowly working on her though i spend around £70 a week and may be £85 on big shop one a month ( toiletries / household products etc )

mrsspendalot

I understand completely about the maintenance and ex issues. Do you know how much you would have to pay through the CSA? Not suggesting that you go through them because that can be stressful, but it might help you to haggle for a slight reduction in what you are paying out now. The CSA would give you a reduction for having a child living with you. However, if you are happy to pay that amount each month then do what feels right for you. Even dropping it to £400 a month would give you a bit more breathing space for your debts.

mrsspendalot

OK, just been onto the CSA calculator and they would take £312 a month off you for 2 kids, with another one at home, less if you have them sleeping over regularly. This is still a substantial amount of money, but would give you more room to repay your debts. When you consider the cost of petrol to see your kids and treats when you see them as well, you are not depriving them in any way. I'm all for parents paying maintenance, believe me, but it has to be fair to both parties. Just something for you to think about.

free4440273

Welcome to MSE DFW headinthesand :hello: Good to see another wise person battling with (and eroding) their debts. Don't let the b**tards get you down: those debts are weak, YOU are strong