Really need some help, no idea where to start.

KimmiLou22

the children are 18,17,15,13,9 and 8 

we do overspend as we just bury our heads in the sand 

We do get the odd takeaway and bottle of wine, money will tend to go on new bits for hobbies (football boots etc) , work lunches, we recently had a holiday so that is why it feels we have less. 

Like you said i just need to set a budget and stick to it ( any tips at sticking to it would be helpful) 

i just dont know what to do with the defaulted ones? or the arrangement to pay?

2021rdsunshine

KimmiLou22 said:

the children are 18,17,15,13,9 and 8 

we do overspend as we just bury our heads in the sand 

We do get the odd takeaway and bottle of wine, money will tend to go on new bits for hobbies (football boots etc) , work lunches, we recently had a holiday so that is why it feels we have less. 

Like you said i just need to set a budget and stick to it ( any tips at sticking to it would be helpful) 

i just dont know what to do with the defaulted ones? or the arrangement to pay?

If you look at the SOA that you presented and feel that you can actually stick to it , would be a good start. Like I mentioned before checking your bank statements for the last few months would give you a great idea of all the money that is going into and out of your account. You don’t want to have a miserable life , specially when you have children, that’s why you have to be realistic of how far you can stretch your income. 

Then all the money that is left you wouldn’t treat it as “free money “ to spend. You accumulate it in a savings account. I would suggest to open an account like Chase or Monzo where you can create different pots for different expenses and savings. 

Then when you have accumulated some money from what’s left after all your expenses are paid I would write to some of the creditors, in particular the ones that are defaulted and offer to settle the debt at a reduced rate. I’m basically telling you the plan that I’m following at the moment. I’m still at the stage of saving because my surplus money is not that much but this is basically my plan. I definitely think that you can get rid of your debts pretty quick if you make a solid plan 

RAS

Let's take one item?

Your holiday. How much was the headline figure? Then how much did you have to spend to get there? And how much did you as a family spend in anticipation ( suncream, bathing kit, travel remedies, clothes, sandals? And how much on treats, plus the odd meal out. Just look at that month's statement and you'll get an idea. Then divide by 12 and that's the amount you need to put aside to fund an equivalent holiday next year, although I'd add 5-10% for inflation. 

KimmiLou22

we have decided to just have a UK holiday next year and save the money to get these debts paid. 

What does delinquent mean on a Credit report? 

RAS

Regarding your UK holiday, you still need to stick 1/12th of the expected cost into an ISA or other savings account each month, ideally since it's now November around about 1/8th, even if you only cover accommodation and travel. Given the family size and ages, you could look at family rooms in youth hostels? Some offer 8 beds, others might have a mix of 3-5 beds.

Delinquent, you've not paid minimum payment. 

kimwp

First thing to do is get the real picture of what you are spending. As other posters say, as a first start, look at the last six months of spend and update your SOA based on that. Your older kids can help you with this, understanding finance is a really important life skill.