First Post/Help Needed

sianreu

Hi

Sorry for the usual cliches but.... Have been reading the board for a few days and have now found the will to post.

Well im here now, probably as bottom as I can go, I hope this is the start of some sort of recovery. I'm married with 2 kids and desperately want to keep our home.

I have recently contacted my bank (no funds available) to arrange a meeting, so I can discuss the awful state of my accounts. I did call one of the national debt lines, I have been so down I can't remember which one now but we went through all our in's, out's and what's owed.

They advised PayPlan and I think are sending me some details through. Our total debts are probably closer to 20k rather than the 17k we worked out, I was a bit emotional.

I feel good because I have made the first step but often so hopeless as I just don't know what I am doing is right or what the future holds.

So I meet with HSBC my bank, who all the debts are with basically including a loan and flexiloan & and overdraft on Thursday, I am here today because I just don't trust them and am worried I have somewhat put myself up to be shot down. Not only do we have no funds we have fallen in arears with mortgage, one month.

Sorry if I have been vague i wanted to sort of introduce myslef as well share the mess im in. Not really surew where i am going.

Thanks
SR

hayley11

Welcome Sianreu :hello:

Firstly I think it's great you have made arrangements to see your bank and contact payplan, you've had your Lightbulb Moment :T

There are so many wise and wonderful people on this website who will be able to give you so much help and advice.

I would suggest putting a full statement of affairs, include everything that you have coming in and going out and then people can see where you could cut back etc.

Happy new year and good luck with the money saving

Hayley x

In_Search_Of_Me

http://www.moneysavingexpert.com/loans/debt-help-plan#help

I would call one of these for advice ASAP. You're right not to trust the bank - any of them IMO!! Meanwhile post your SOA and we'll see where yu can cut down. Have a look at the old style boards on grocery cut down etc and most importantly know youre not alone! We understand what its like to be in debt (scary at best, esp at the start!). Well done or tackling it! New year, new start!

southernscouser

Firstly well done for posting. Secondly well done for not trusting the banks. They are there to make money from you!

OK, you don't need me to tell you it's important to pay your mortgage.

You need to post a full SOA as soon as poss. See this thread for a guide.

You then need to start prioritising your outgoings. Mortgage, council tax, electric, gas and food. Then comes the rest.

Get on to your mortgage advisor and arrange a plan to pay back the arrears. Do not just hide from it or it will get worse.

Also as it's the first day of the year, start a monthly spending diary. Every day write down what you have spent, and on what! At the end of the month it gives you a great insight into where you're money goes.

bank_of_slate

Hi Sian and welcome!

You've said I during your post, are you going along to the meeting at the bank on your own or do you have someone to go with you to offer moral support?
Is your spouse involved and fully aware of what the situation is, you'll need to stick together through this
keep posting and if you feel comfortable, post a full SOA (Statement of accounts - detailed incomings and outgoings) We are great at helping you to spot areas where you could shave a few more pounds off.
Lots of love
...Linda xx

doodledo_2

Hi and welcome to the forum.

Well done for taking that first step and facing your debts.

As the others have said post up your SOA and you will be amazed the advice that follows.

Good luck.

jessbrown100

Hi Sian
just wishing you the best of luck! myself and my OH were in the same sit three years ago, we really couldn't see how we'd be able to keep the house. but, we both sorted out debt repayment plans and have stuck to a careful (but not ludicrusly strict) budget and we are now managing well and occasionally have the money for little luxuries. there IS light at the end of the tunnel and now you've begun to sort your finances things will rapidly begin to get better.
i'm not the best qualified person to give you practical advice but my thoughts are with you

sianreu

First of all, thank you to everyone, absolutely stunned at the response, thank you so much.

Monthly Incomings:

My salary - £1,150
Partners salary - £410
Benfits = £195
Rent = £500
Total - £2,255

Monthly Outgoings:

Mortgage/Rent - £812
Council Tax - £135
Electric - £60 (on key)
TV License - £10.99
Sky £66 (cancelled)
Phone - £40
Mobile 1 £20
Mobile 2 £25
Food - £300
Car Insurance - £65
Petrol - £90
Life Insurance £22
Broadband £17
Setanta £5
Clothing £40


Total: £1,627


*to be amended with further information asap

HSBC Personal Loan – Balance £10,007
Repayments £190 *
HSBC Flexi Loan – Balance £2,910
Repayments £95 *
Overdraft - £2100 (limit £2,000)
Paragon Personal Finance £98 *
Clydesdale Fin Ser £171 *
Mortgage arrears £812


We own the another small property (long story) and we merged the mortgages with ‘themortgageworks’ (transferred from HSBC) , some while back we were in an awful state and no doubt very naivly cashed in on our equity on our properties to wipe out the debts we had then. But our mortgage stands around £189’000 *


As you can guess we’re not so business minded and the other property at times has been a hinderance financially rather than a benefit, even though the council pay the rent well, I appreciate that but with improvements made and commitments short term it made us no better off, especially as what with mentioned above. Of course we realise we have an asset though and are keen to keep it that way wether or not we know the business side of it too well.


Hope this is ok and enough to get started, I will find out all remaining info asap and edit the post.


Guys thanks again.

tealady

Hi and welcome. You say your electricity is on a key, a meter I assume. Have you checked to see if you are on the cheapest tarif? If not use a cashback website to switch.
The same goes for car insurance.
When you have a mo hop over to the old style board for great ideas re saving money on food and household stuff.

frosty

Hi,we are with tiscali and we pay £35/40 a month ,this is for broadband,line rental and all calls are free day or night 7 days a week(01 & 02 numbers).If you dont call mobiles it should be a bit cheaper for you.
If you have a look on the oldstyle board there is a lot of ideas for cutting grocery costs,before I joined I was spending £500+++ a month on food now I spend £200 a month and this is for 6 adults,2 dogs,cat,3 ferrets.
I wish you luck,you will come through this.

Mozette

Just wanted to say welcome - you'll get loads of help here. Have a good 2008, you've taken the first step towards that now.