Not sure how I'm going to get through this!

helensbiggestfan

Dear Abbafan. 

Please come back and let the good people here help you.  I know it's hard but you have been given some very good advice.  

I do KNOW.  10 years ago I was in your shoes, teetering on the edge of bankruptcy and terrified I was going to lose my home.  Just in the nick of time I discovered MSE and the lovely people on these threads.  

I swallowed my pride and shamelessly picked their brains 😂.  I'm now not only solvent but have cash in the bank and a lovely home.  It was a long haul but I came out the other side.  

You can dig yourself out of this hole and I'm willing to help and add my advice and experience to all the other lovely people who have already replied to you.  I won't write any more and bombard you just yet. 😉.  I'll wait uNtil you are ready. 

In the meantime try not to panic but please you do have to wake up and face facts......you are in hot water. Let us help you. 

Please feel free to PM me.  

Fatsdom

Op, please give us an update. No one will be judgemental. 

Abbafan1972

Hi there everyone.

I have had a look through your replies and am ready to give a response now.  Apologies if I waffle on, or if I confuse anyone, let me know. 

I said in my last post that I was going to generate some cash, but didn't post any more than that until I had all of the info.

I got a letter from EDF energy on Saturday to say that my account was in credit, I do find their bills confusing to be honest and always want to make sure my utility bills get paid.  Anyway, for years we have used a 3rd party to pay the bills, ie:- you pay this company an amount every month (not a DMP), which means they divide up your bills, so you can pay an amount every month and don't have to worry about it. They used to be called Secure Home and my Mom used them way back in the 70's.  They have changed names a couple of times and called Moneyway now.  So over the years our bills have dropped off this account (we started using them in the mid 90's).  So all I had left on this account was EDF energy for Gas & Electric, Severn Trent Water and our Council Tax.  The last time I got a schedule from them about a slight change in our payment, I did look and see just the 3 things on there and it did cross my mind about there not being much point in this anymore, but then forgot about it and filed it away.

So anyway, I have now set up direct debits for us for Severn Trent (I can spread that over a few months, so the payment is low), EDF and Council Tax (Likewise you can spread the payment thinner). Rang up Moneyway (Secure Homes) and closed the account.  All our payments are up to date and the next payments with the 3 companies are not due until August and yes, our account is in credit.  So I've just had a refund of £452.74 from them. Am waiting for the credit back from EDF which is £240, they said my account is fine and I can have the credit back. The niggle I had with Secure Homes is when you overpay and your account is in credit, they don't tell you and just use it to reduce the payments.  They said on Monday when I closed the account, that this is an automatic thing and cannot be changed. 

Also this week, I have sold some Yankee Candle jars which were un-used and sitting there doing nothing, got £90.  Still have a few more and trying to get rid of those if I can.  I have a pair of Bose Headphones selling on Ebay (these are DH's and he said I can sell them), so I'm hoping I will get over £100 for these.  Had some money saved in the Nationwide (£160), this was an account where I can't just transfer the money and needed to go into Branch to withdraw, so I have added this to the total. The money is in a separate current account that I don't really use, but I have a card, so can use it pay stuff off. I am hoping the total will be over £1,000 including the money from the headphones and whatever else I can sell.

DH is going to speak to the car finance people tomorrow when he's at home.  I have managed to get an extension on the mortgage payment holiday.  I know this is only a temporary thing and what I need to do is get back into work, so we can get back on track. No, Sky have not renewed our contract, so we're not under any obligation with that, it just the broadband that's contracted until July next year. 

I have created a spreadsheet with incomings and outgoings, so I can just delete/change stuff when I need to . 

I will post more updates as and when I get them.

I am not going to spend all of this money on paying stuff off and leaving us with no food, for example, just to make that clear!

ryanm8655

Abbafan1972 said:

Hi there everyone.

I have had a look through your replies and am ready to give a response now.  Apologies if I waffle on, or if I confuse anyone, let me know. 

I said in my last post that I was going to generate some cash, but didn't post any more than that until I had all of the info.

I got a letter from EDF energy on Saturday to say that my account was in credit, I do find their bills confusing to be honest and always want to make sure my utility bills get paid.  Anyway, for years we have used a 3rd party to pay the bills, ie:- you pay this company an amount every month (not a DMP), which means they divide up your bills, so you can pay an amount every month and don't have to worry about it. They used to be called Secure Home and my Mom used them way back in the 70's.  They have changed names a couple of times and called Moneyway now.  So over the years our bills have dropped off this account (we started using them in the mid 90's).  So all I had left on this account was EDF energy for Gas & Electric, Severn Trent Water and our Council Tax.  The last time I got a schedule from them about a slight change in our payment, I did look and see just the 3 things on there and it did cross my mind about there not being much point in this anymore, but then forgot about it and filed it away.

So anyway, I have now set up direct debits for us for Severn Trent (I can spread that over a few months, so the payment is low), EDF and Council Tax (Likewise you can spread the payment thinner). Rang up Moneyway (Secure Homes) and closed the account.  All our payments are up to date and the next payments with the 3 companies are not due until August and yes, our account is in credit.  So I've just had a refund of £452.74 from them. Am waiting for the credit back from EDF which is £240, they said my account is fine and I can have the credit back. The niggle I had with Secure Homes is when you overpay and your account is in credit, they don't tell you and just use it to reduce the payments.  They said on Monday when I closed the account, that this is an automatic thing and cannot be changed. 

Also this week, I have sold some Yankee Candle jars which were un-used and sitting there doing nothing, got £90.  Still have a few more and trying to get rid of those if I can.  I have a pair of Bose Headphones selling on Ebay (these are DH's and he said I can sell them), so I'm hoping I will get over £100 for these.  Had some money saved in the Nationwide (£160), this was an account where I can't just transfer the money and needed to go into Branch to withdraw, so I have added this to the total. The money is in a separate current account that I don't really use, but I have a card, so can use it pay stuff off. I am hoping the total will be over £1,000 including the money from the headphones and whatever else I can sell.

DH is going to speak to the car finance people tomorrow when he's at home.  I have managed to get an extension on the mortgage payment holiday.  I know this is only a temporary thing and what I need to do is get back into work, so we can get back on track. No, Sky have not renewed our contract, so we're not under any obligation with that, it just the broadband that's contracted until July next year. 

I have created a spreadsheet with incomings and outgoings, so I can just delete/change stuff when I need to . 

I will post more updates as and when I get them.

I am not going to spend all of this money on paying stuff off and leaving us with no food, for example, just to make that clear!

Great that you are heeding the advice and starting to make changes. Good news on the rebate on utilities. Great that your husband is going to speak to the car finance, sounds like he is coming round.

Whats happening with the sky tv package? Personally I’d reduce this to free tv and just keep the broadband.

Whats going on with the food bill?

How about an updated SOA?

Be careful you don’t just use the newly built up cash to kick the can along another month or two. It’s what I’d have done pre: LBM. Your shopping bill alone will eat that up if you have t addressed it...

Grumpelstiltskin

Abba Great you are back, but the food bill is the next most important thing to tackle.
With the amount you have been spending on food you should have full cupboards and fridge/freezer so no chance of you running out.
Have you spent time looking on the Old Style board? they will help you on what you can make from any number of random ingredients you have.
After sorting your food budget out the Sky is the next hit.
Like Ryan says above you must look to the future not the next couple of months.

kimwp

Question to everyone - what are thoughts on refunds on built-up credit with energy companies? My view has always been that we overpay in the summer to account for the winter, the idea being that it's easier to budget for?

BabyStepper

Even without the headphones sale, the extra cash you've just generated totals £942.74. Brilliant, you're going to smash your target. Really good going, that's an emergency fund right there to help you stop using credit. 

Good news about OH and the car situation. If it's any help, this always seems to be the least popular money saving suggestion, no-one wants to downsize in car. It will save you a fortune though if you can make it happen. Has he seen the light about the lager buying yet? 

Keep posting. You're doing good. 

helensbiggestfan

Well done ABBAfan. That is a cracking start.  

When your back is against the wall you can do one of two things......give up or come out fighting.  Good to see you decided to come out fighting.  You can do this. 

Sell what you can - but be careful not to sell anything you might regret later or what you might be able to repurpose.  But selling unwanted Tech is probably a very good place to start. Same with luxury items such as those Yankee Candles. 

BTW. I am a candle fiend myself.  Try Aldi for those, they do some fabulous fake Jo Malone candles.  They smell gorgeous and cost a fraction of the price.  

Someone said earlier that you were trying to maintain your lifestyle.  TBH I don't think that's a bad thing.....in the long term.  In the short term you are of course in survival mode so yes you are going to have to cut right back to essentials only......which is keeping a roof over your head and putting food on the table, then paying essential bills.  But in the long term you can still have a nice lifestyle without breaking the bank.  It's all in the planning. 

I do now enjoy a very nice lifestyle (see my thread Champagne Lifestyle on a Lemonade Budget). It's in the Old Style Board.  You will also get lots of help with how to lower your grocery bill over there too.

 I am not ashamed to say I do love a bit of luxury in my life even though I have a very modest income. Don't despair - once you are a bit straighter you will be able to have a few luxuries again.  It's all a question of being savvy and shopping smarter.  

Which brings us to that grocery bill.  Where do you shop. What do you buy, can you cook, do you enjoy cooking, have you got space or the patience to grow a few bits.  

Yes you need to address some issues Right now as a matter of urgency and you have got a handle on this already but at the same time try and forward plan a bit.  It will make you feel more optimistic about the future and allow you to feel more in control.  

I run my home as if it were a business......I now forward plan rather than allowing things to drift like I used to.  I play to my strengths, making the most of my skills.  If you have spent most of your working life in admin then you should have good planning and organisational skills so my top tip is to get organised and plan ahead.  

You've raised nearly £1k already so that is your emergency fund. Try not to touch it for as long as possible.  Just knowing it's there will give you peace of mind.  

Now it's time to tackle that grocery bill.   First of all do a complete inventory .......then have a use up month, adopting a zero waste policy.  Then, when you do start food shopping again, you need to look at the discounters.....don't be put off.  Aldi and Lidl are brilliant, good quality food and keen prices.  They are far cheaper than the big supermarkets such as Tesco, Sainsburys etc.  Then look at places like B&M and your local £ shops for stuff like cleaning materials and toiletries.  

One thing you might want to think about.......

Due to the virus, next winter there might be a problem with both prices rises and shortages, if you can spare some cash it might be worth stocking up on some non perishables. 

Just keep going .......You have got off to a great start.  

helensbiggestfan

Ps.  Good to see your husband Is knuckling down too. 😁. So much easier when you are both on the same page.  

You did mention in an earlier post that your daughter wanted to know how she could help.  That is fabulous.  If you all pull together you will power your way through this in no time.  Could she help you out by helping you sell stuff on EBay and the various selling sites. Perhaps taking photos for you, writing the marketing content, helping with the packing and posting etc.  She might enjoy that.  

Just a thought......have you looked at getting a council tax holiday.  

Most financial institutions are offering breaks and holidays due to the pandemic. Don't be afraid to take full advantage to give yourself a breathing space whilst you sort things out.  

sharpe106

You seem to be heading in the right direction, and the important bit is that you husband seems to have figured out how serious the situation is and is helping. Which will make it a lot easier for you.