Big debts - ever seen anything like this?

tifnstav

any chance you can get shut of the store cards and the cards with small balances and high apr amounts onto lower life of balance cards?

and cut up store cards, they are the devils work.....

slickster77

If suppliers aren't paid, they won't supply you and the business is over. Sorry that sounds harsh ...was just meant to be factual.

Please don't take this the wrong way..I'm just commenting from experience but if the business is doing that well, how have the debts piled up?

Don't worry, I know what you mean! The business has been doing well for about a year now, first yr ran at a loss, second yr roughly evens and now going at a profit - its the sort of thing that takes a bit to build up, but should be worth it! Can't really say what it is as don't want people guessing who I am *paranoid*.

The bulk of our debts were run up a few years ago - I should have really sought help then, haven't added to them recently - there just still there! For a good couple of years when there wasn't as much income coming in we'd do the dodgy thing of getting cash out on the credit cards to put into the bank to cover the mortgage (and the credit cards). Know this was daft but was only goinig to be a temporary measure.

mhe

Try going on www.whatsthecost.com and using the snowball calculator to help you decide which debt to work on paying off first.

Since joining the February grocery challenge on the old style board im aiming to feed 2 adults and 3 young children on £200 a month - so im sure you could make some savings there too.

slickster77

any chance you can get shut of the store cards and the cards with small balances and high apr amounts onto lower life of balance cards?

and cut up store cards, they are the devils work.....

Have tried to do this recently, but (quite rightly) we can't get any other credit cards as there's too much outstanding debt on our credit report.

**ZAPPER**

At the moment could realistically take £1,000 per month from business for the next 3 months, then hopefully more after April

After looking at the cards/loans you have you really need to throw this £1k a month straight at the debts...
By paying the minimum payments each month to each of the debts you are probably not making much of a dent into any of them.

You obviously realise you need a plan of action fast.. I think you need to work out what you can cut down each month from your current outgoings, and throw any money saved towards the debts that you have.

That way hopefully you will have amore manageable number of cards/loans to deal with..

HTH

fc123

slickster77 wrote: »

Will look into reclaiming MPP cheers, as for the business- works from separate office (not at home), put through mileage allowance for tax purposes (accountant said better to do this than individual receipts). At the moment could realistically take £1,000 per month from business for the next 3 months, then hopefully more after April

If that's possible, you could try to fit your outgoings (with help from all the people on here) in to the income of £2658 pm? Payplan on the CC ?

Just a note; our debt was 6 figs (we lost a rent review; so overheads doubled plus OH got shafted on £50k contract + other disasters).

When we cut back it took a while to really get the hang of it BUT it gets easier. However, as we are 12 mnths away from clearing it, we cut back even more; eg don't have telly (no reception at all), never use mobile at all unless real emergency, clean with vinegar (yuk) and all the other tips that I have picked up on this board.........they are never ending on this forum...get a new one every day.

And life is just as good as it was before.

The business is stronger too....lucky as the downturn has kicked in for us now.
Hope this helps?

clutterfrazzled

1) Get professional free help to manage the debts IMMEDIATELY.

2) Explain to your children now that you are having to economise.

3) A few basic economies you can put into effect immediately -
MOBILE PHONES - Subject to contracts can you get a better deal, perhaps all on one network for extra call discounts. - Also is every call essential?

NON-ESSENTIAL - Sky TV

NON-ESSENTIAL - Lotto 12

DEFINITE ECONOMIES TO BE MADE HERE - Supermarket 600, Sundries 50 - Make shopping lists and stick to them

CUT BACK - Probably best to quit altogether but as you are already stressed stopping now would be miserable. Cigs 130

NON-ESSENTIAL - Booze 20

NON-ESSENTIAL - Presents 50 Tell your friends and family you are having to budget, family will understand as will true friends.

CAN YOU OR YOUR PARTNER DO THIS? - Swimming lessons 40

CUT BACK - Petrol 240 - Less than one mile walk. Make a list of what you NEED to use the car for each week and try and amalgamate into as few journeys as possible.

slickster77

Thanks for all advice - I'be looking at all the links etc tomorrow, got to get to bed now so will check back tomorrow evening - thanks again!

mhe

If you pay your £1000 income a month straigh onto a card, save 300 from food shopping and £130 from cigs then that could be £1430 on to a card each month extra.In 3 months time you could have got rid of your Tesco, Mint and Barclay card with that!! Think how great that would be.:D Then use the 1430 plus the min payment money from these cards to snowball onto another debt.

Bismarck

Hi, thanks for posting.

The Mum bit is really something.....how did you get to the agreement? Does she need it back over this period? Just guessing that the fact she could lend it you in the first place suggests that she doesn't actually need it now. I appreciate you'd like to pay it back but does she know how it fits in with the rest of the story or does she not know the whole story?

I can certainly appreciate it's difficult but I'm sure she'd hate to see so much hard-earned cash going in interest.