S O A I am so in trouble

facingthefuture

:(Please tell me what you think......................................

Ok ave been working on it.It's terrible, I am ashamed.OH doesn't and can't know (health reasons) so I have to sort it out within 6 months as much as possible. GASP!!!
Situation: OH self employed, works many hours.
Me: 2 small kids 5 &7 one big expensive one at uni.I mystery shop in between school runs

Income
OH...1500 pm after tax
Me.....200 pm after tax
Benefits 205pm

Expenditure
Rent: 520 per month
electric...£65 per month
oil heating.........£83 per month
household insurance 25pm
student loan(husbands) £25pm
food: 300pm (including lunches)
clothes/shoes (mainly for growing children) 40pm
socialising /fun 80pm!!!!
Haircuts 10 pm
Christmas/birthday £400 per year or 33.33
prescriptons £10pm

car
tax & mainten £41pm
insurance 30.62
fuel...86pm
phones
mobile £30pm until April
bt........£50pm
bt hub ..£30om
dentist £16pm (no NHS available)

bank charges 30pm

loan...£94*
overdraft 1 2500
overdraft 2 500
sainsburys credit card @18.9%...6k ...min payment £148
bank credit card @14.1%......3100...min payment £79
co op........................4k.....mon payment £90
n&P@14.9%........2750...min payment £55
mbna@18.9%..........4,622 min payment £44
oh's mbna @ 0%.....1900 min payment £50

*bank loan has 2 years left to run

My lightbulb moment was last Friday:money:. since then I have started selling on ebay, made 130 after charges so far.Planning car boot sale and will continue selling on ebay (but the charges between it and paypal are extortionate)
Called credit cards and asked them to lower interest rates. They wouldn't, just Bank credit card said they would put new purchases at 4%
However, OH got an offer from MBNA business to have 7.9% on balance transfers and credit card cheques for a full 5 months from the date the account is opened with a credit limit of 3,500.This he signed and posted back so I suppose it will arrive soon I presume I should use it against my sainsburys cc and lower it's interest (can't use it against an mbna one)

Frankly I am signing up for every mystery shop I can to increase dosh that way.
Instructed expensive spoiled (my fault) uni son to stand on his own 2 feet.
Put signs up today for dog walking/sitting service (I love them so do children).
My expensive son signed me up for the bt brodband deal - I know its way too expensive, stuck with it till June Then will go as cheap as poss.
Stuck with his old mobile contract till april then ill go payg.
Instead of using the blow heater at night (to save oil) because I can't sleep I use a hot water bottle

Bank charges in old bank because of 2,500 overdraft. Trying to move acccount fully to A&L and not get charged.

So then, we are supposed to be getting a mortgage in 6mths of £70k (been given the site for working for a family member for years for free)


So I need to figure how to turn this situation around and how much I need to raise a month to get rid of all debt but the loan.I don't know how I am going to do this yet but I will!!!!(Any legal ideas very welcome).Thing is I am scared to add up the figures above....they are appalling.
IVA aand bankruptcy are not options, I will find a way to pay these things off.






Last thing may be a biggie. Elderly aunt is moving to a home, she is getting terribly forgetful but is otherwise relatively fit. It has been hinted that we could move into her house to look after it (it will get trashed otherwise) House will not be sold until she dies.I don't think anyone would expect us to pay rent.I can't bank on it because she may not like the home and want to return to her own house (I couldn't live with her - all she says constantly is "I'm depressed, pray for me" over and over and over...so it may e best to forget about this for a month or 2.

Dire or what!:eek:

masterkay

Firstly welcome, you've come to the right place and you seem to have the right attitude.
Due to the time of night you might not get much response until the morning so I will fill in as much as I can though there are many people on here much better than me.

Secondly if your son is old enough to be at uni, he's old enough to pay his own way as in broadband, mobile, rent to you if he still lives with you etc. I paid my own way through uni. I had to work all kinds of crazy jobs but I still got my first. If he moans it will interfere with his studies that is rubbish. Students get 3 months or more off during the summer and this is more than enough time to take on a job and earn enough to keep him for a year. I would work all of the holidays apart from two weeks at some mind-numbing job sometimes doing 60 hours a week to pay for the next uni year. I also had part-time jobs throughout the year to avoid debt and have some extra fun.

Spoiling your son does him and you no good. I've seen it many times. I have friends who are nearly middle aged and mummy and daddy still buy them cars, houses, pay their bills.

I'll have a look at your specific SOA and get back in a minute.

facingthefuture

Thanks Masterkay.Son is now away, its just that me left me tied into these things. I have even paid his rent etc but had to just tell him NO more.These bills are now my own.

masterkay

facingthefuture wrote: »

:(Please tell me what you think......................................

Income
OH...1500 pm after tax
Me.....200 pm after tax This is low, any way you can up this by taking on extra hours, getting a part-time job at night when you are not with the children?
Benefits 205pm

Expenditure
Rent: 520 per month
electric...£65 per month This seems very high, shop around get a better deal
oil heating.........£83 per month Always look out for better deals
household insurance 25pm
student loan £25pm
food: 300pm (including lunches) A bit on the high side for two adults and two children. If the older son is at home ask him to pay his bit. Look at the oldstyle board for some good tips for eating well on the cheap.
clothes/shoes (mainly for growing children) 40pm
socialising /fun 80pm!!!! No socialising not until you start to get yourself in a better stater. Have cheap nights in.
prescriptons £10pm

car
tax & mainten £41pm
insurance 30.62
fuel...86pm
phones
mobile £30pm until April once contract is up, ditch. If this is for your son let him buy his own payg phone. If it is for you buy a payg phone
bt........£50pm Is this for the phone? This is very high. Where are you phoning? Check out telephone guides on this site. You can phone anywhere in the world very cheap these days by routing your call via another number.
bt hub ..£30om Much cheaper deals around
dentist £16pm (no NHS available)

bank charges 30pm Have you tried reclaiming any unfair bank charges?

loan...£94*
overdraft 1 2500
overdraft 2 500
sainsburys credit card @18.9%...6k
bank credit card @14.1%......3100
co op........................4k
n&P@14.9%........2750
mbna@18.9%..........4,622
oh's mbna @ 0%.....1900

*bank loan has 2 years left to run

Pay off the highest APRS first.
Sell everything you don't need. If you are new to ebay watch out for the fees as this can really eat into your profits. Use cheap listing days to clear out. Sell that blow heater it costs a fortune to run.
Do you need a car? If you can do without sell it and put the money towards the debts.
What about Christmas, birthdays, haircuts and all these things? What do you budget for these?
As for moving in with your aunt, see how things go. While you wouldn't be asked for rent this may cause problems with family members. Money is one thing that splits families. Someone may get annoyed you will be getting something for free.

masterkay

Another thing sign up for quidco and pigsback. There are threads around here somewhere about them.

How about offering an ironing service? Having young children means you probably know man busy mums who might want to pay you for this service.

You don't mention what the minimum payments are for each of your CC and loans. It would be good to see that and then do an overall total to see if you have any money left over at the end of the month, spend it all or are getting into more debt. Then you do a revised SOA after cutting back and see how much extra you can put towards paying your debts each month and use the snowball calculator to see how much this can save you and help you pay off your debts quicker.

facingthefuture

Thanks, you are so right!
I do need to earn more, OH works up to midnight some nights so it would need to be midnight till about 8am, maybe the supermarkets would let me stack?
No alternative electric supplier here though but the blow heater is going!
Son has left.
See the bank charges one - does that still work?
I have done 2 of the credit cards and got partial payments.
Haircuts are £10 per month(I do OH's) and Christmas was £400 (will edit these in above)
Can't do without car, bad asthmatic and near non existent public transport.

I know what you mean about the aunt thing but I would only move there if asked to rent free. Its 15 miles away and the house scares me a bit, my grandparents died there.No one else would move in, very small family.

Thanks for your looking at this it really is appreciated.

bananakinz

Morning!! well done for facing up the above!

Does your OH have any ideas about the debt? As imo you really need him on your side.

Hoping its a typo re Christmas!

Start a spending diary - thats a real eye opener!
Is there anywhere else you can rent? Fuel is really high there!

facingthefuture

Thanks. Oh was made unemployed twice and has a history of depression. His business is picking up and if he realises our debt he will freak and get depressed an not be able to work. That said he will fall in with any spending regime I organise, he doesn't want to know, just wants to work come home eat and spend time with kids (and me).
No I did do that at christmas
Diary is brilliant idea,
can't think of anywhere cheaper to rent.Fuel is partly due to me going to help elderly parents (who live 15 miles away):o

huxley

Well done for posting:T I know its not easy when you have to deal with it without OH, (mine was made redundant now SE on alot less) so keep posting to get the support you will need and deserve. Dont forget to try your local freecycle for things you need and have you a LETS group ( http://www.letslinkuk.net/home/find-lets.htm) I find mine very useful also I have joined my local credit union, I save a few pound a month with them just incase (or when) the washing machine dies if I have to borrow to get one they will be the cheapest option.;)

GirlRacer_2

Just a thought but have you checked that your receiving all the benefits your entitled to? Also, even though your tied into your mobile contract for a while can you not reduce the tariff? It may only save you a few pennies but at the moment every little helps. As suggested above shop around for cheaper utilities, but don't forget to go through Quidco and see if you can earn some cashback.

Good luck x

Keeping_Positive

I would aim to cut back on clothes, going out, phone bills and heating costs. Electric at £65 is more than I pay for both gas and electric and you have oil on top. Should definitely be able to save there.

Food is the other area to save. Use the Old style board for tips. Start meal planning to stop over buying (over buying is what I do to make sure we have enough in - if I dont plan for the week ahead). Go down to the next level of brand ie store or budget brand.

Perscriptions, if they are any higher than £10 a month look at buying a http://www.ppa.org.uk/ppa/ppc_intro.htm its unlimited perscriptions for one person a year at £9.87 over 10 months.

What about council tax? When this starts again get it spread over 12 months not the usual 10.

Good luck