How did I get in this mess? Advice needed

cameront

Hi All

My debts are finally taking their toll on me and i've hit a brick wall and don't know where to go
I'm 30 with a partner and two children, i live in rent free accomadation as it comes with my job. All of my debts are with the Halifax.

Income = £1600

Out goings =
Loan £291 6 years left balance £18000
Loan £241 3 years left balance £6500
Loan £203 6 years left balance £12000
Credit card £180 balance £9000
Overdraft just maxed out at £3000
Gas = £50
Petrol = £160
Food = £500

Any advice, would be so much appriciated as i dont know what to do.

Thank you

Dave

ltm07

Hi Dave,can't really help you myself apart from to say put down your s.o.a. & the good people on here will be able to give advice into trimming down some of your outgoings. Good luck mate.

floss2

Hello :hello:
The info you've given us isn't really detailed enough to be able to give much help. Take a look at this: http://forums.moneysavingexpert.com/showthread.html?t=107280

It will help you put together a full S.O.A. & then we can take a look to see what can be trimmed.

By the way £500 a month for food for 2adults & 2 children is a heck of a lot...take a look at the Old Style board for help with reducing that. And use what you have in your cupboards / fridge / freezer before buying anything else!

Floss

shelovestobuystuff

Get an appointment with your bank and see about consolidating those debts.It should be straightforward with them all being with halifax anyway.
See about shifting the credit card to a 0% rate or see what the best rate available is to you according to your credit rating.You may be able to get this included in the consolodation if the loan rate is better than the cc rate.
Check you are only using the car when needed and see if you can claim back any fuel costs for work.
Look at your food budget,I think you could get it down by £200 a month with little trouble.Take a look at the grocery challenge thread here http://forums.moneysavingexpert.com/showthread.html?t=167192.

lindens

Hi well done on posting on here. There are lots of people who can offer advice.
I think you first need to open a basic bank account with someone not connected to Halifax, with no card and overdraft on it, and get your wages paid into there. That way all your money is your own etc.
Then post a full SOA, there are some things missing from yours like car tax MOT presents lunch money etc etc. If you are finding this hard keep a spending diary for a while to see where all your money goes.
Your food looks very high you could easily halve that. Why not make a note of everything in your cupboards and live off that for a while just topping up with essentials.

floss2

shelovestobuystuff wrote: »

Get an appointment with your bank and see about consolidating those debts.

Sorry to shout but DON'T CONSOLIDATE!

Just out of curiosity, what has the £48,500 been spent on? Can any of this be sold? Change cars for cheaper older ones?

CCCS_Sarah

Hi Dave,

Welcome to the boards! You’re in the right place.

There is a few things mission off you financial statement i.e. road tax, servicing, Clothes etc try and think of everything you spend your money on, even if it’s a yearly cost as for a budget to work it needs to include everything!

Once you have all the cost you will be able to see if there are any areas you could reduce. If you need any help completing a financial statement CCCS have a free online debt advice facility called Debt Remedy – does not take too long to complete and it will let you know the best solution for you problems. This link will take you directly to Debt Remedy.

If there is anything at all you would like to ask or get off your chest post up here!

Good luck

shelovestobuystuff

floss2 wrote: »

Sorry to shout but DON'T CONSOLIDATE!



Why not?:o

full-time-mum

Nobody here has said it yet, but well done for recognising the brick wall and for coming here for help. There are some wonderful people on here, expect them to be brutally honest with you - they will help you get yourself sorted though.

Does your partner work or is there any way they could contribute - surveys on-line, mystery shopping etc.

floss2

shelovestobuystuff wrote: »

Why not?:o

Because - as quite a few people on here will tell you - that is not the effective way to clear the debt. All it does is shift the problem....until it comes back to haunt again when rates go up / cc's have been maxed out again / income drops

A bit like this newbie really.... http://forums.moneysavingexpert.com/showthread.html?t=756319

cameront

Thank you all for your replies, i will sit down tonight and do a comprehensive SOA. As to the where the money was spend all i can say is that i ve been a pratt and brought things mainly new cars and lost money on them, under the premise of i work hard why shouldn't I. Now i ve had my light bulb moment and realised i'm a pratt and i have a family but i'm hoping it's not too late, especially now i've maxed out my overdraft and cant pay for anything except on the credit card which is really bad i know. I just cant see a light at the end of the tunnel.