I’ve got myself in quite a mess

haggyloops

Thank you for this - the mobile phones is for 3 phones, myself, my husband and my eldest son so I don’t think I can get this cheaper. £600 for food is for the month - the children don’t actually eat any less than an adult. I will check out the forums but already limit expensive items it works out as roughly £25 per person per week for 3 meals per day which I just don’t feel is excessive. I will look at the clothes budget but school uniform and new school shows cripple me, particularly as 2 are in specific shoes to enable mobility and cost ridiculous amounts! 

haggyloops

Oh and the children are 8, 10 and 13

haggyloops

Sorry for the drip feed replies - my husband commutes for work so can’t really reduce diesel costs x

Grumpelstiltskin

What worries me is you say your husband contributes £2000 per month. Is that his net salary or just what he puts into the household pot?

haggyloops

That is his net salary x

Grumpelstiltskin

OK Thanks for that

NeverendingDMP

haggyloops said:

Oh - just one more question, my husband is reluctant to go into a dmp with me. Can I do this alone for my debts only? 

Yes but it's an absolute pain in the rear end. It's totally ok and totally doable  but it's more complicated to figure out your budget and what you have spare. I did it initially and all that happened was DH debts increased and we ended up worse off. 

The soa covers your spending areas and everyone will point things out about what you may have missed or over or under estimated but if you want to dmp just your own debts you need to look at how your family budget works and what your personal soa will look like/how you split the bills and how much left you have to pay to debts. 

Also sorry for long post, is that your new mgage cost or current one?  and have you looked at hyperjar for kids spends instead of go Henry as it's free

If you go for a dmp you could manage it yourself, but you have a few people u owe money too and admin wise that could take a chunk of your time at first. Stepchange or similar can help with all the behind the scenes work of contacting people which will make it much easier for you in the beginning if that's what you decide to do. Other charities available! 

Also 600 for a family of five will be accepted in a dmp as a reasonable budget (could be put up a bit higher) may help create a buffer for trying to save and using some savings for repaying your friend ....just saying....

sourcrates

I have never been a fan of cutting budgets to the bone, especially in order to repay debt.

Almost 10% of IVA`s fail, year in, year out, mainly due to affordability, or put another way, they prioritised there creditor repayments over there family budget, you need a realistic, workable budget going forward, one that is sustainable over a long period of time.

Remember, these are mostly unsecured, non priority debts, I don`t think £600 is enough for food for a family of your size, I spend almost the same as a single man, so the poster that can feed a family of 4 on £120 or whatever it was, I find that incredible.

There is a method some people use to re-pay their debts, similar to snowballing, where they maintain their minimum repayments, but put any disposable income at month end, towards the smallest debt, and hopefully pay it off in full.

Then do the same month in, month out, until with an ever increasing pot of disposable income from what you have saved in debt repayments, you settle the lot, and be debt free.

This doesn`t necessarily tackle the debt with the highest interest, but the debt with the lowest balance, it gives you small victories to work towards.

It`s not for everyone, but it is a workable strategy to aim for.

root

Cancel the gohenry for a start, you can’t afford to be giving much pocket money let alone paying an intermediary for the privilege.

sparks_2023

haggyloops said:

Fund ourselves.................436.......218.......93.7

As a previous serial borrower from this company my heart goes out to you. So, so much money down the drain.

The best thing I ever did financially was to stop paying them.

Here's what happened :

- For about 3 months, nothing. Except I didn't pay. Leaving money for more important commitments.

- Then they defaulted my account. That torpedoed any future credit for 6 years. Oh well, life became different. But life went on.

- Credit Resolution Services (CRS) became the collectors, but not owners of the debt. I set up a monthly plan with them online. No dreaded phonecalls. No more interest. No more charges. No more stress. After a while debt gone.