Big debts - ever seen anything like this?

tifnstav

i get so excited reading about clearing debts and snowballing, anyone else? is it debt-free-wannabe-fever?

southernscouser

Even with the extra £1,000 from the business you're still in a defecit of about £1,200 a month!

With other small trimmings on bills etc you can probably get that to around the £1,000 mark but of course it's still £1,000 that you are short a month!

You really have to speak to the CCCS for free professional advice.

Are any of the loans secured to the property at all?

Also with the store cards, the £186 is the minimum payment right? You must get your wife to cut these up immediately!

How long left to go on Bensons beds?

I know there is loads to take in but you've taken huge steps mate. Well done. :beer:

mhe

:snow_grin I LOVE SNOWBALLING and seeing that debt free date coming down - it really spurs me on !!:D

Merlot

slickster77 wrote: »

First post, so hi everybody!

I think I’ve come to these boards in desperation as I can’t really see a way out of our debt.

As a bit of background, I’m 30, married with 3 kids. Due to having children early, stretching to get on the housing ladder and setting up a business, as well as not being great with money in the past, we’re now at the point where we’re heavily in debt and our outgoings are more than our incomings.

We’ve been getting by by taking money out of the business (which is growing well) to cover the shortfall, but in doing so have fallen a bit behind with our suppliers, so now have to focus all the money in the business towards that for the foreseeable future.

Below is a summary of our situation:

Monthly Incomings (not including income from the business):

Earnings: £760
Tax Creds: £600
Child Ben:£168
Other income:£130

Total = 1658

Monthly Outgoings:

Mortgage 1065 - can you go interest only for a while
Payments to mum 500
Council Tax 126 - change to twelve months instead of ten
Water 30
Gas 30
Elec 30
TV Licence 11
BT 10.50
Virgin 19.99
My mobile 15 - get rid
Ptr’s mobile 35 - get rid
Sky 19 - get rid
Egg loan 151
Barclay Loan 139
Capital 1 270
Smile 158
IF card 114
Mint 20
Tesco card 20
Barclay Card 50
Store cards 186
Life insurance 34 - This is too high unless you have some kind of illness, my OH and I are in our thirties, I smoke and our life insurance is £15.90 per month
Mortgage payment protection 19 - these are usually useless if you are self employed, check the small print,.
Car insurance 25 - Unless you need the car cause you are in the sticks or for business get rid, I did, use Tesco to deliver the shopping and I use the bus.
Contents ins 7
Buildings ins 15
Bank charge 11.50
Denplan 22 - I know, but can you not get a NHS dental surgery, I waited for 3 years before I got one, I know there is a waiting list, put your name down on it.
Optician 7.50
Lotto 12 - You have a squillion chance to one in winning - get rid
Bensons Beds 45
Supermarket 600 - wow, at least half it, Old Style recipe board
Sundries 50
Cigs 130 - wow, roll your own
Booze 20 - cor blimey is that all, I'm joking, I like the odd bottle to or two, its my weakness.
Presents 50
Swimming lessons 40
Petrol 240 - If you get rid of car, you get rid of this.

Total = £4327! !!!!!

I have put some comments in and your not gonna like them, but honestly I can see where you can cut down greatly. Why not contact the CCCS just for a chat, or even take a look at there website, it has loads of info on there. You need professional help in my opinion b4 it gets out of control, well done for posting and recognising something needs to be done, you are on your way, posting that SOA is never an easy thing to do.

http://www.cccs.co.uk/



Merlot.x.

lotto-dreamer

I'd also recommend taking a look at www.cccs.co.uk which is recommended on this site. I finally took the plunge last night and wish I'd done it ages ago (I alternate between lightbulb moments and denial but it's now getting scary )

You fill in a questionnaire (no personal details, just facts and figures of your circumstances much like your SOA). At the end you get a personal "Debt Remedy" which you can print out. The information in it is brilliant - it gives you suggested solutions and any relevant advice you might need to suit your personal circumstances. Armed with that -and all the excellent help from everyone on here - you should start to feel a lot more positive!

ecoelle

Hi there just a well done for posting really. It's hard to admit you have a problem but you are in the right place.
Tiglet mentioned about being wis sold unemployment mortgage protection. We took ours out in April 2006 and my pertner was made redundant last August, to add to the worry i had just signed a new contract to go part time at work so was almost halving my monthly income. Without our mortgage protection we would have lost our house, so be careful of shaving that £19 a month see if you can save it elsewhere first. I know how i would feel if we'd not taken it and the company we have it with have also covered our life insurance and buildings and contents insurance payments so just be warned.

mhe

southernscouser wrote: »

Even with the extra £1,000 from the business you're still in a defecit of about £1,200 a month!

With other small trimmings on bills etc you can probably get that to around the £1,000 mark but of course it's still £1,000 that you are short a month!

Prehaps if you could stop the £500 a month to your mother as well for a short time it could take the defecit to £500 a month.This would still not be good enough but a heck of a lot better than it was to begin with. Is there a chance that the payrise you said you could have in april could cover this??
How long do some of your hps have to go inorder to release some more cash??

maninthestreet

How about giving up smoking and drinking, for a start? Smoking doesn't ease stress, it makes it worse.
Get rid of sky and buy a cheap freeview box.
Stop buying all these 'presents' - who are you trying to curry favour with?
Presents should be for special occasions only, such as birthdays and Christmas.
Exactly how long does it take to learn to swim?? - If you can dive off the side of the pool and swim 25 metres, you can swim and you don't need any more lessons.
Use the car less - walk or get a cheap second-hand bike.

slickster77

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?

It is a funny agreement, it was supposed to benefit us by getting us on the housing ladder and benefit her by being a better investment than leaving it sat in a bank account. Anyway, it's important that she doesn't find out!

Also, regarding the bensons beds payment - thats due to end in october. The cccs print out sounds good - will have a look at that.

Does everyone get a message in their inbox about being in a bbc program about debt or is it just me?

southernscouser

slickster77 wrote: »

Does everyone get a message in their inbox about being in a bbc program about debt or is it just me?

Forward it to abuse. No-one should be contacting you without the site owners permission!