Newbie needing advice

enthusiasticsaver

Have you asked for payment holidays if the problem is down to your husbands surgery? 

There is scope for cutting back and much as you may want to go out for dinner or whatever the entertainment is you cannot afford it so you will need to find free stuff to do.  The groceries can be cut back as can the mobiles once they are out of contract.  The TV licence should be £13 per month  and the cable/satellite tv can be cancelled.  All this is a drop in the ocean of your monthly debt repayments though so I will guess you were in debt even before your husband got ill.  A DMP may be the best option but you have no spare income to offer them so I would suggest you write to them asking for 6 months breathing space until your husband is back to work.  Can you sell one of the cars?

TheAble

Could you update with the APRs? I'm presuming these are not zero.
Regardless, while there are some efficiencies you could make, my feeling is that your debts are probably too high to be corrected just by cost savings.

Galloglass

TheAble said:

Could you update with the APRs? I'm presuming these are not zero.
Regardless, while there are some efficiencies you could make, my feeling is that your debts are probably too high to be corrected just by cost savings.

The reason for all the debt is?

This looks like a lifestyle issue unless the monies were borrowed to home improvements or to support a business. As TA says, it's not cost cutting but a fundamental look at why the debt is there in the first place. 

On paper, you'd be a tasty morsel for someone wanting to put a charge on your property. It may be a race to see who does it first.

snowball24

The issues arose from ill health from my husband, and having to rely on credit card just to get by. Other issue was building our extension which went over budget and had to borrow more , not ideal at all  .

TheAble

It does seem an awful lot of debt. I'm a little surprised you were extended so much credit.

monetxchange

Like others have said, it may be a DMP is the best solution as you're very short. I'll let people more experienced than me comment on those options.

Going forward though, you will have to change your lifestyle as a lot of these amounts are unnecessary wants rather than needs. Mobiles are sky high - mine costs £8 a month SIM only. Get rid when out of contact. Internet and landline are huge - Plusnet for example is £25 all in for fibre. You can halve the groceries spend - get to Lidl and cook veggie meals from scratch. The gas and electricity are pretty big for three people, two of whom are presumably out working or studying. You need to make sure you're on the best tariff and then go round switching off all unnecessary radiators, plugged in electricals charging nothing and on standby, lights left on in empty rooms. Layer up before you crank up the heating while wandering around in vests. I'm afraid clothes, presents and holidays are going to have to go to slim to none while you get this sorted. Free activities out of the house (walk round the park and take food) would do as much for mental well being than any expensive meal out while you're so far in.

Biggest thing is the teen (though not really as he's an adult at uni) has to get a job. Has he not got any student loan leftover? I'm sure he can manage even 10 hours a week part time as a minimum - would be nothing to him (apart from building up a work ethic) and would double your benefit income figure. Good learning experience to learn nothing comes for free. Plus he's unlikely to be swamped with uni work 24/7 is he! Are you funding his car too?

I'd also hazard a guess that some of that £65k on cards has been spent on things rather than just surviving - spend a few weekends selling everything and anything non essential on eBay. The Next card for example tells you that these haven't been essential spends.

Have you checked and double checked your husband is getting everything he's entitled to? No SEISS if self employed or disability living?

It may all be a lot to take in and seem a bit harsh, but I'm only saying this as I want to see you come out of this debt. Well done for facing up to it and taking the first step.

snowball24

Thanks, appreciate the honesty.  I agree we have to change our lifestyle as definately live beyond our means and have done for too long. I / we want to change and sort it out.  I budget 75 per week at Aldi its the top up shops that spill it over.  There are 4 of us at home at son on year out, he has just got a part time job. Car is paid for and he pays the fuel .

Have had a great chat with Payplan today who offered a DMP and all sounds reasonable, just very nervous about taking the plunge, is it normal to be wary? 

ladyholly

I hope that your son is now going to contribute. You need to shop with a list and cut the top up shops. I am in the process of work g out where money goes down to the last penny. I have done a kind of spreadsheet (on paper) because I can visualise it better being of a certain age. I have different columns for almost everything including cleaning stuff, toiletries etc. I dont include direct debits and regular payments but even after a couple of weeks I can already see  top up shops were costing far to much. You can work your own way but you need to know where every penny is going. 
There are two advantages to lists one you only buy what you need and two it is quicker as you don't look at anything else. 

Naomim

I'm glad your chat with PayPlan went well.  Is it manageable? Can you afford to live on what you have including the DMP payments?  It is normal to be wary, any step that makes huge changes is daunting but once you've got into it, you will be fine. You will definitely have to learn to live within your means, make sure you budget properly.

Good luck!

Naomim

snowball24

Yes it is manageable and when my dh is back to work early next year I will pay as much as I can to clear the debts. We got in this mess in the first place so we have to get out of it.  I am very very ashamed and embarrassed.