Need advice on spiralling debt

callymac

Don't know best course of action - can someone help?

Husband is semi-retired and earnings between us, including pension = £2170
Monthly Expenditure;
Mortgage: £712
Council Tax 125
Pet Insurance 51 (two dogs)
Life Ins 17
tv licence 25
Service fee 25
Gas/Electric 50
Bank Interest 50 (on overdraft)
Loans 175
Telephone 25
mobiles (2 teenage sons) 35
Home Ins 6
Food 500
Credit cards 250
Petrol 100 (for husband to get to work)
Car tax 30
Water rates 30 Total £2206

Should we go to CCCS (we have already downsized two years ago and we have two teenage sons to support). Any advice you can give would be very welcome.
I am very stressed and can't sleep any more!
Thank you for looking.
Callymac

novagirl

You say you have teenage sons but what are their ages? Do they really need to use £35 a month between them on mobiles? I know it's only a little but it's a start

IWantToBeFree_2

callymac wrote: »

Don't know best course of action - can someone help?

Husband is semi-retired and earnings between us, including pension = £2170
Monthly Expenditure;
Mortgage: £712 - Can you go interest only for a while to get your head above the water?
Council Tax 125 - Is this spread over 12 months?
Pet Insurance 51 (two dogs) - Can you do without this? Its a lot of money to spend on pets when your in debt & struggling.
Life Ins 17
tv licence 25 - Seems quite high
Service fee 25 - What is this
Gas/Electric 50 - Can you get cheaper? Check uswitch & then use Quidco to switch if need be so you get cash back.
Bank Interest 50 (on overdraft)
Loans 175
Telephone 25
mobiles (2 teenage sons) 35
Home Ins 6
Food 500 - This can certainly be cut down, look on the old school board for tips
Credit cards 250
Petrol 100 (for husband to get to work)
Car tax 30
Water rates 30 Total £2206

Should we go to CCCS (we have already downsized two years ago and we have two teenage sons to support). Any advice you can give would be very welcome.
I am very stressed and can't sleep any more!
Thank you for looking.
Callymac

See my comments in red

saffronflowers

callymac wrote: »

Don't know best course of action - can someone help?

Husband is semi-retired and earnings between us, including pension = £2170
Monthly Expenditure;
Mortgage: £712
Council Tax 125
Pet Insurance 51 (two dogs) How old are the dogs - we insure two for £20 only cos they are very young and slighly impetous!
Life Ins 17
tv licence 25
Service fee 25 What is this for
Gas/Electric 50
Bank Interest 50 (on overdraft)
Loans 175 What loan and what interest rate
Telephone 25
mobiles (2 teenage sons) 35 This is high PAYG with £10 each
Home Ins 6
Food 500 Massive amount you can halve this easily and eat well
Credit cards 250 What cards what aprs etc
Petrol 100 (for husband to get to work) Car share, public transport etc
Car tax 30
No car insurance
No spends on xmas birthdays clothes etc
Water rates 30 Total £2206

Should we go to CCCS (we have already downsized two years ago and we have two teenage sons to support). Any advice you can give would be very welcome.
I am very stressed and can't sleep any more!
Thank you for looking.
Callymac

Well done for coming here you will get the help that you need _ breathe you are in a place that will aid you and support you.

SFx

RAS

Welcome

re-jigged this a bit as have to go shortly.

callymac wrote: »

Husband is semi-retired and earnings between us, including pension = £2170


Monthly Expenditure;

Essentials
Mortgage: £712 - can you go interest only for a while?
Council Tax 125 - can you spread this over 12 months instead of 10?
Water rates 30
Gas/Electric 50
Home Ins 6
Life Ins 17
Food 500 - This is massive. Aim to cut in half this month and work from there. Go to the moneysaving Old style forum for ideas.

useful things

tv licence 25 - why so high?
Telephone 25 - learn how to get free calls by reading Martin's article
mobiles (2 teenage sons) 35 - PAYG out of their own pocket money

Petrol 100 (for husband to get to work) - is there no other option?
Car tax 30 - where is insurance, MOT and repairs?

Pet Insurance 51 (two dogs) - this isnhuge. Use a comaprion site and swap via www.quidco.com
Service fee 25 - what is this?

Bank Interest 50 (on overdraft) What is the APR. Have you claimed back bank charges?
Loans 175 - please specify, APR and amount per month plus amount outstanding

Credit cards 250 APRs and amount per month pluis amount outstanding

Total £2206

With a bit of judicous pruning, you should be able to get this within bounds and then turn the situation round. You do need the whole family on board. I note nothing for clothes (with teenagers?), holiday, hair cuts or presents?

callymac

Thank you for your advice - its great not to feel alone. the council tax is monthly (high living in Surrey!) and sorry the tv licence is £10 p.m. I will look into interest only mortgage and study your other suggestions. Thanks again

sparky0107

Hi callymac,
Welcome to the madness that is debt free wannabe, you've done the hardest thing, now the good people on the forum will give you as much help as they possibly can, don't know if you've tried it but have you done the snowball calculator & the spending diary the links are below and they can really help you to focus on your spending
http://www.whatsthecost.com/snowball.aspx?country=uk
http://www.spendingdiary.com/

Hope this helps and once again welcome, don't forget you're not alone in all of this

callymac

RAS wrote: »

Welcome

re-jigged this a bit as have to go shortly.



With a bit of judicous pruning, you should be able to get this within bounds and then turn the situation round. You do need the whole family on board. I note nothing for clothes (with teenagers?), holiday, hair cuts or presents?

Service charge should read: Ground rent, sorry.

Additional monthly costs I should have considered: College activities: £10 (son 17 yrs), Medicines: £10, Dentist £14, Haircuts £16, Clothing allowance £50 ?, dog grooming £10, car repairs £20, car insurance £67.

Creditor List: '& More' owe: £5000 APR 18.9 £125p.m. (have applied for 0 per cent card to transfer some onto)
Alliance & Leicester: owe £2000 APR 17.0 £25 p.m.
Barclaycard: owe £2500 APR 0 percent until April 2009. £25 p.m.
Next catalogue 26.49 APR owe £300 £25 p.m.
Overdraft with Nationwide £2000 APR 8.5 £14 p.m.
Overdraft with Natwest £3400 APR 8.5 £48 p.m.
Loans from Northern Rock: £6000 APR 5.9 £71.43 p.m.
and £6700 APR 5.6 £103 p.m.
Outstanding amount on two loans £12,000.

Thanks for your time and will study and take action on your advice so far. Really appreciate your input.