Can anyone give me any advice please

michelle75_2

Hi, please could you help me at all, first of all this is the first time I have used this forum so I dont really know what or how to do it.
I have been trying to look at my debts and situation for days now and I just keep panicing and getting no where.
My situation is as follows, we have 3 overdrafts, 8 credit cards, 1 catalogue, 1 mortgage and 1 secured loan, our debt has been building for the last couple of years, and we just cant seem to get out of it. last year was the worst so far, I was out of work as I was trying to better myself and train as a driving instructor, we got married - a load of expense, my husband got made redundant, Im 34 weeks pregnant, have been signed off work (havent been able to get any benefits, so I have had no income since Oct 07) and can no longer go back to work as a driving instructor as I havent completed my training. At present we have decided to sell our house to pay off all our debts and start again by renting for a while and building up a deposit so we can get back on the ladder in the future, the problem is what do I do in the mean time until the house sells?
Our Statement of affairs is as follows:

Income
Husbands salary: £1491
My salary £0
Benefits £488.58 (as of Feb - Maternity Allowance)
Total (Feb) £1979.58

Outgoings (Ive done the budget planner)
Kensington Secured loan £305.17
Abbey Mortgage £748.31
Council tax £62.07
Water £25.70
Life cover £7.81
TV licence £11.75
Direct Line Pet Insurance £22.83
Virgin Internet £18.73
Orange Mobile £45.93
Virgin landline £70.00
Ceta Buildings and contents £40.81
Npower Gas and electric £80.00
Hastings Car Insurance £17.83
Gladiator Car Insurance £50.00
Papers £21.65
Big items £16.67
Birthdays £8.33
Holidays £25.00
Xmas £41.67
Work Clothes £3.33
Kids Clothes £16.67
Clothes £20.00
Food £450.00
Car Maintenance £16.67
Car Tax £33.00
Petrol £86.60
Parking £10.00
Pet food £10.00
Vets £3.33
Beauty £10.00
Dentists £16.67
Haircuts £26.25
Optical £8.33
Total Per Month £2331.11

Debts
1. Abbey Mortgage £95430.18, 22yrs 11m 7.84%
2. Kensington Secured loan £28272.71, 28yrs 9m 12.60%
3. Alliance & Leicester card Limit £4400, Balance £4391.31, 0%, min payment £? (new card)
4. Lloyds Card Limit £6000, Balance £5212.12, 0%, min payment £? (new card)
5. Goldfish card Limit £6625.00, Balance £6607.74, £124.93 interest per month, Min payment £132.00
6. RBS card Limit £5400, Balance £5386.43, £41.88 interest per month, Min payment £121.00
7. Tesco card Limit £2400, Balance £2178.66, £34.82 interest per month, Min payment £70.00
8. Virgin Card Limit £5000, Balance £4458.40, £25.45 interest per month, min payment £29.64
9. Sky card Limit £9500, Balance £9373.78, £95.29 interest per month, Min payment £187.00
10. Halifax card Limit £1800.00, Balance £1786.46, £27.30 (9.9% apr) Interest per month, Min payment £36.45
11. Natwest overdraft Limit £2000.00, Balance £1950, £18.91 monthly debit interest
12. Natwest Overdraft Limit £1200.00, Balance £1200.00, £8.31 debit Interest
13. Vertbaudet Catalogue Limit £300, Balance 125.83, £0.92 interest, £5.00 min payment
NB: I have transfered £2800 to goldfish from Alliance and Leicester and £5000 to sky from Lloyds these are in the process of going through. I have applied for four 0% cards in my husbands name which we are waiting to hear from.
Please help I dont know what to do, my bills are due out on the 1st of Feb and I have no money to pay them with unless I can get some more cash from a credit card, should I tell the companies that I cant pay them on time, as the bank may bounce the DD,s. I could really do with some help as my husband cant face the debts so I feel a bit alone with it, and a bit stressed as my baby is due in 6 weeks.
I would be greatful of any help or advice that you can give.
Kind regards Michelle

TTMCMschine

Hello.
I think you could do the following:


Outgoings (Ive done the budget planner)
Kensington Secured loan £305.17
Abbey Mortgage £748.31
Council tax £62.07
Water £25.70
Life cover £7.81 - do you need this?
TV licence £11.75
Direct Line Pet Insurance £22.83 - get rid of this.
Virgin Internet £18.73
Orange Mobile £45.93 - get rid of this
Virgin landline £70.00 - cut this significantly
Ceta Buildings and contents £40.81 - get this lower
Npower Gas and electric £80.00 - get this lower?
Hastings Car Insurance £17.83
Gladiator Car Insurance £50.00 - why 2 car insurances? Can you sell 1 car?
Papers £21.65 - get rid
Big items £16.67 - what this?
Birthdays £8.33
Holidays £25.00 - cant afford it.
Xmas £41.67 - too much - cut back
Work Clothes £3.33
Kids Clothes £16.67 - too much.
Clothes £20.00 - too much
Food £450.00 - way too much
Car Maintenance £16.67
Car Tax £33.00
Petrol £86.60
Parking £10.00
Pet food £10.00
Vets £3.33
Beauty £10.00 - dont really need it
Dentists £16.67
Haircuts £26.25 - go somewhere cheaper.
Optical £8.33
Total Per Month £2331.11

I think that would save you quite a bit

Keeping_Positive

michelle75 wrote: »

Income
Husbands salary: £1491
My salary £0
Benefits £488.58 (as of Feb - Maternity Allowance)

check out http://www.entitledto.co.uk/ to see if there is anything else you can claim. Dont forget if you get WFTC when baby arrives above the basic rate you will qualify for the sure start grant worth £500 and can be claimed up to when baby is three months old.

Total (Feb) £1979.58

Outgoings (Ive done the budget planner)
Kensington Secured loan £305.17
Abbey Mortgage £748.31
Council tax £62.07
Water £25.70
Life cover £7.81
TV licence £11.75
Direct Line Pet Insurance £22.83
Virgin Internet £18.73
Orange Mobile £45.93 can this be reduced it seems quite high
Virgin landline £70.00 as above
Ceta Buildings and contents £40.81
Npower Gas and electric £80.00 This is very high for a 3 bed house family of 5 we spend £55 a month - check your are on the best rate and not overpaying with estimate readings
Hastings Car Insurance £17.83
Gladiator Car Insurance £50.00
Papers £21.65 cancel use free online services instead
Big items £16.67
Birthdays £8.33
Holidays £25.00
Xmas £41.67
Work Clothes £3.33
Kids Clothes £16.67
Clothes £20.00
Food £450.00 way to high if just hubby and you check out old style board this could be easily cut in two.
Car Maintenance £16.67
Car Tax £33.00
Petrol £86.60
Parking £10.00
Pet food £10.00
Vets £3.33
Beauty £10.00
Dentists £16.67
Haircuts £26.25 again can this be reduced over the next few months?
Optical £8.33
Total Per Month £2331.11

Please help I dont know what to do, my bills are due out on the 1st of Feb and I have no money to pay them with unless I can get some more cash from a credit card, should I tell the companies that I cant pay them on time, as the bank may bounce the DD,s. I could really do with some help as my husband cant face the debts so I feel a bit alone with it, and a bit stressed as my baby is due in 6 weeks.
I would be greatful of any help or advice that you can give.
Kind regards Michelle

If your dds are going to bounce then personally I would cancel them and arrange payment plans or at least the non essential items. Just ensure mortgage, c tax and utilites are paid. Other loans and credit cards can wait. No point in incurring additional charges.

Please contact CCCS or similar free service they should also be able to help.

Its not much but hopefully something may help you and Im sure there will be others along with extra info.

Dont panic loads of others have been in similar situations and been able to get help.

getting-sorted-sarah

Hi Michelle!

michelle75 wrote: »

Outgoings (Ive done the budget planner)
Kensington Secured loan £305.17
Abbey Mortgage £748.31
Council tax £62.07 If you pay over 12 months instead of 10 this could be cheaper?
Water £25.70
Life cover £7.81 Unless this is linked to a loan you can't afford it
TV licence £11.75
Direct Line Pet Insurance £22.83 Can't justify this really...
Virgin Internet £18.73 Virgin broadband 2mg costs £10 - change?
Orange Mobile £45.93
Virgin landline £70.00 What???? The line rental, again, should be £10 what is the rest for?
Ceta Buildings and contents £40.81 When you renew get a better deal - and go through Quidco or another cashback site to get money in your hand
Npower Gas and electric £80.00
Hastings Car Insurance £17.83 I agree - why 2 cars?
Gladiator Car Insurance £50.00
Papers £21.65 Can't justify - read online!
Big items £16.67 Cut out
Birthdays £8.33
Holidays £25.00
Xmas £41.67
Work Clothes £3.33
Kids Clothes £16.67 All these expenses can be suspended for a while
Clothes £20.00
Food £450.00 For how many? You could probably half this
Car Maintenance £16.67
Car Tax £33.00 Again - 2 cars?
Petrol £86.60
Parking £10.00
Pet food £10.00
Vets £3.33
Beauty £10.00 Cut out for now
Dentists £16.67
Haircuts £26.25
Optical £8.33
Total Per Month £2331.11

While you're home - before the little one is born, check out the Up Your Income thread on here to see what you can be doing to raise cash from home - good luck!

sparky0107

Hi Michelle75
Does your mortgage allow you to take a payment holiday, have you tried ringing the (Sh)Abbey to ask? If you can do this, it may give you some time to re-jig your finances, just a thought.

You really need to have a look at some of the items you are budgeting for, try doing the demotivator on some of the items you feel are essential, it really is an eye opener. Also try the link for the snowball calculator, this will predict when you can become debt free.

Your OH needs to be on board with you though, until he faces up to the fact you have a debt problem, it is going to put a very large burden on you. I'm not trying to preach to you, just trying to offer some friendly advice.

Good Luck and don't forget, there are some amazing people on this site who will give you some excellent advice, you've taken the first step, now you have to keep on walking.

Hope I've helped you in some way




http://www.whatsthecost.com/snowball.aspx?country=uk

Merlot

Well done for posting your SOA, I will give you my opinions later, I'm on my way out, but in my opinion DO NOT CANCEL LIFE INSURANCE, £7.81 isn't a lot of money, and is as essential as for food/council tax etc.

Merlot

doodledo_2

Hi and welcome to the forum.

What orange contract are you on for your mobile? With some of them if over £25 you get free broadband with them. We have swapped and have gone from paying BT £35 a month to nothing.

Merlot

michelle75 wrote: »

Hi, please could you help me at all, first of all this is the first time I have used this forum so I dont really know what or how to do it.
I have been trying to look at my debts and situation for days now and I just keep panicing and getting no where.
My situation is as follows, we have 3 overdrafts, 8 credit cards, 1 catalogue, 1 mortgage and 1 secured loan, our debt has been building for the last couple of years, and we just cant seem to get out of it. last year was the worst so far, I was out of work as I was trying to better myself and train as a driving instructor, we got married - a load of expense, my husband got made redundant, Im 34 weeks pregnant, have been signed off work (havent been able to get any benefits, so I have had no income since Oct 07) and can no longer go back to work as a driving instructor as I havent completed my training. At present we have decided to sell our house to pay off all our debts and start again by renting for a while and building up a deposit so we can get back on the ladder in the future, the problem is what do I do in the mean time until the house sells?
Our Statement of affairs is as follows:

Income
Husbands salary: £1491
My salary £0
Benefits £488.58 (as of Feb - Maternity Allowance)
Total (Feb) £1979.58

Outgoings (Ive done the budget planner)
Kensington Secured loan £305.17
Abbey Mortgage £748.31 - can you switch to repayment for now, or take a payment holiday, this would help you in the short term.
Council tax £62.07 - This is low, is this correct?
Water £25.70
Life cover £7.81
TV licence £11.75
Direct Line Pet Insurance £22.83
Virgin Internet £18.73
Orange Mobile £45.93 - Cancel immediately if you can, or reduce package
Virgin landline £70.00 - this is far far too high
Ceta Buildings and contents £40.81 - this is high
Npower Gas and electric £80.00
Hastings Car Insurance £17.83
Gladiator Car Insurance £50.00 - this is too high
Papers £21.65 - a luxury - read them online
Big items £16.67 - what's this
Birthdays £8.33
Holidays £25.00
Xmas £41.67
Work Clothes £3.33
Kids Clothes £16.67
Clothes £20.00
Food £450.00 - how many people is this for?
Car Maintenance £16.67
Car Tax £33.00
Petrol £86.60
Parking £10.00
Pet food £10.00
Vets £3.33
Beauty £10.00
Dentists £16.67
Haircuts £26.25
Optical £8.33
Total Per Month £2331.11

Debts
1. Abbey Mortgage £95430.18, 22yrs 11m 7.84%
2. Kensington Secured loan £28272.71, 28yrs 9m 12.60%
3. Alliance & Leicester card Limit £4400, Balance £4391.31, 0%, min payment £? (new card)
4. Lloyds Card Limit £6000, Balance £5212.12, 0%, min payment £? (new card)
5. Goldfish card Limit £6625.00, Balance £6607.74, £124.93 interest per month, Min payment £132.00
6. RBS card Limit £5400, Balance £5386.43, £41.88 interest per month, Min payment £121.00
7. Tesco card Limit £2400, Balance £2178.66, £34.82 interest per month, Min payment £70.00
8. Virgin Card Limit £5000, Balance £4458.40, £25.45 interest per month, min payment £29.64
9. Sky card Limit £9500, Balance £9373.78, £95.29 interest per month, Min payment £187.00
10. Halifax card Limit £1800.00, Balance £1786.46, £27.30 (9.9% apr) Interest per month, Min payment £36.45
11. Natwest overdraft Limit £2000.00, Balance £1950, £18.91 monthly debit interest
12. Natwest Overdraft Limit £1200.00, Balance £1200.00, £8.31 debit Interest
13. Vertbaudet Catalogue Limit £300, Balance 125.83, £0.92 interest, £5.00 min payment
NB: I have transfered £2800 to goldfish from Alliance and Leicester and £5000 to sky from Lloyds these are in the process of going through. I have applied for four 0% cards in my husbands name which we are waiting to hear from.
Please help I dont know what to do, my bills are due out on the 1st of Feb and I have no money to pay them with unless I can get some more cash from a credit card, should I tell the companies that I cant pay them on time, as the bank may bounce the DD,s. I could really do with some help as my husband cant face the debts so I feel a bit alone with it, and a bit stressed as my baby is due in 6 weeks.
I would be greatful of any help or advice that you can give.
Kind regards Michelle

Michelle,

I have put some comments in the above.

I have totalled up the debts and they are £70940.44, you mention that you are going to sell the house to repay these? How much is the house worth.

In the meantime, as you mentioned that you do not have enough money to pay the bills on the 1st February, i suggest you call the CCCS on Monday morning, they are a debt charity and will be able to advise you further, its all well and good us DFW suggesting that you cut this and that out, but your debts are fairly high and you would benefit from some professional assistance. it could take months for your house to sell, so please call the CCCS on Monday. http://www.cccs.co.uk/ I hope you don't think my post was harsh, but I want you to take advice before the problem escalates.

Have a read of their website, it has lots of useful info on there.

Merlot

diamonds

your in dire place - cancel evrything thats out of contract for a start

Orange
pet insurance etc etc.....if you have equity in your home refinance the 12.60 secured loan to a better rate with as much as you can borrow and CLEAR & CUT the credit cards, selling is a no go in this slow down.........if you can remortgage & borrow as much as poss on the remortgage & pay your debts in one mortgage payment say over 30 years

Merlot

diamonds wrote: »

your in dire place - cancel evrything thats out of contract for a start

Orange
pet insurance etc etc.....if you have equity in your home refinance the 12.60 secured loan to a better rate with as much as you can borrow and CLEAR & CUT the credit cards, selling is a no go in this slow down.........if you can remortgage & borrow as much as poss on the remortgage & pay your debts in one mortgage payment say over 30 years

Whilst everyone is entitled to their opinion, Michelle my advice to you is seriously think before taking the above advice and remortgaging your home, its rarely a good idea to consolidate unsecured debt into secured debt.

Please call the CCCS on Monday.


Edited to add: Michelle, based on your income, i doubt the bank would offer you a remortgage anyway in order to consolidate your debts, just my thoughts.

Merlot

wilkster5

Your secured loan is hideous. £305 per month. I'm guessing it was around £30K you originally got, 28years 9 months left at £305= 345 months x 305 = £105225!!!!!!!!!
Will you have enough equity in the house to clear the secured loan..have you asked for a settlement figure yet. Other wise if you borrowed £30K your paying back an additional £75200 in interest, if assuming you borrowed 30ish