Back on wagon and needing support!

judi24

Please bear with me but my story is a little long winded. But I wanted to give some background into my current situation and need for help and support!

I joined this site in 2006 and had my lightbulb moment in August 2006. At that time my OH and I had combined debt of around £22000. We worked at paying some of it off but ended up building some up again - mostly credit cards! I split up from him in December last year.
I ahve been left with credit card debt of around £11,000 most of which is at 0% interst at the moment and an overdraft of £900.

This may not sound that bad to many of you but my main problem is this:-
I have 4 children and despratey want to buy my OH out of our house. There is a mortgage on the property of £159,000 and i need to borrow a further £30,000 to pay him off. I have a good salary and when I put my income into mortgage calculators it apperas that i can borrow enough. The problem is because I have this debt the amount they will lend is reduced.

We have agreed to continue to pay the current morgage between us untill the fixed rate comes to an end in September because there is a penalty of about £5000 for early repayment.

If I can pay a large chunk of my debt off by september I may be in a position to keep my house. If not I will still be in a better financial position to move on to another house.

I am a total spendaholic and have come back to you guys for advice and support on reducing my debt. I will post a SOA shortly.

Thanks for bearing with me!

hypno06

If support is what you need, then support is what you shall get!!

Post up the SOA and people will soon be giving you loads of ideas!

Good luck!

Sea78

Big hugs honey - can only imagine what you are going through. Have a go at your SOA and we'll see where we can help.

Sea xxx

judi24

OK here goes with my SOA:

Income:-
Salary £2600
Family allowance £217
CSA for oldest 2 children £328

Total = £3145

Outgoings:-
Mortgage £520 (this is my half only)
Life cover £38
House buildings and contents Insurance £35
Council tax £89
Tv licence £9.19
Water £49.38
Gas & Elec £180 ( forgot to set up DD when changing supplier so ended up with a big bill whhich I am paying off monthly)
TV/Broadband/Phone £37.00
RCN union subs £15
Mobile contracts £70 (I pay 2 contracts for my 2 older daughters as part of thier pocket money and 1 for me - contracts not du up till next year!)
Car insurance £45
car maintenance and road tax £40 (approx averaged out over the year)
Fuel £200 ( I work 42 miles from home and have a car the is very uneconomial to run but can't sell it as it is a jointly owned car with my ex which he is letting me use until assets divided officially)
Food ect £400 (i know I need to work on this!!!)

Total regular out goings = £1727.57

If using martins budget planner I would also include:

Cost of Christmas/birthadys ect £150 (averaged out over year)
Clothes/school trips/ bus fares/ pocket money £150 (approx) (already committed to sending DD2 to spain with school at a cost of £400!!!!:eek: )

Sub total £300

Debt:-
A&L over draft £900
Smile overdraft £500

A&L cc £4800 (0% interest at moment not sure how long for and normal APR)
Capitol 1 cc £5000 (0% interest till may I think then not sure of APR)
Asda cc £563 (not sure of apr)
Hallifax cc £560 (not sure of apr)

Minimum payments on the above come to around £320


So total outgoings = £2347.57

Income minus outgoings = £797.43

but i never ever have this much left!!!!!
I have had solicitors and mediators bills to pay over last few months which mount up and I probably have more to come!

I think my SOA says it all really!
A spending diary starting today is a must!!!!!

Any advice would be most wellcome - no holes barred!

Hell1

Hi Judi
Just can't believe how similar our situations are! I have 3 expensive kids, hubby left 3 yrs ago, now am trying to raise funds to stop him putting a claim on the house (for which I have always paid the mortgage and bills, and which my parents gave us the deposit for) I also owe £9000 in a loan. My mortgage is about twice yours. Am only just managing myself - if child benefit doesnt come in to my account tomorrow, will have precisely £9.00 to live on till friday! No advice really, just get your kids on board. Tell them that they can't all go on holidays with the school, but that they will get their turn at some future date. :rotfl: (my oldest going to Iceland this year!) Most of my outgoings are pretty similar to yours, as is my incoming. I'm getting fed up of chasing my tail, but tell myself things will get better. Big hugs
Hell

MissEyre

I think you know the two really easy ones first-your food budget can probably come down quite painlessly, and you really need a spending diary to work out where the rest of it is going. You have a good income and manageable outgoings, so get started with that spendding diary and see where the rest of it is going!

Good luck x

newmoneysaver_2

I agree with the spending diary - it will help you to work out where the left over money is going. Why not join in the daily spends thread and the
moozies/paps weekly spends challenge.

Also pop yourselft over to the Moneysaving Old Style board - they will work wonders to help you reduce your food budget.

doodledo_2

Hi and welcome to the board.

I think a spending diary is essential as that much spare each month you definately need to know where its going to see where you can cut back.

Monthly food shop also looks like an area that could be greatly reduced.

Good luck with your journey.

judi24

Thanks for all your encouragement and support. The spending diary is a must as is reducing food budget - OS board here I come!
There does look like I have a good amount of income left over to throw at debts but when I think I paid aroud £500 in solicitors bills and mediation last month alone it makes a little more sense.
I'm sure many of you read my soa and think what exactly is her problem - and I would have done the same not so may years ago.
This is my second marriage break up and the first time I was left in substantial debt and was a student nurse with 2 chilldren under 3.
This time I have got a much better income but the issues are the same! I need to spend less and pay off debt or loose my house.
Hell1 thanks for you coments and it's good to know other people are in similar situations and I have arounf £12 to do me till pay day on Thurs! have already committed to the holiday for DD2 and have paid half of it so I have to let her go. I am also worried that as the decisision to split was ultimately mine I need to be able to keep the childrens' standard of living the same. I know this is unrealistic and it is something I need to come to terms with.
I will join Moozie's weekly cos I really need to focus on reducing un necessary spending!

judi24

I am posting mainly to focu my thoughts but any words of wisdom would be wellcome!

I know my situation does not look too bad compared with many on here! but at the moment I am really struggling!

I have 6 months to try and clear as much debt as possible to have any hope of keeping my house! Now I know I am in a position to buy another house and am very lucky to be able to do so but I know I will feel such a failure If this happens.

I chose to put my husbamd out in Decemberand this in it's self is a very long and complicated story - but bassically I believe myself and my 4 kids will be better off without him!

My SOA looks like I should be able to pay a big chunk off my debt each month and I have joined the weekly spend thread to try to limit my un-necessary spending.

I got paid today and I sat down to sort out waht to pay and set a budget but I just can't seem to focus on waht I need to do first!

I have been off sick with a stomach problem and stres for a few weeks and went to GP yesterday cos my mood just seemed to be getting lower and I can't shake it. She assessed me and offered to prescribe anti-depressant but I said no. Maybe my mood is affecting my ability to think straight and get my head round what I need to do! I know it is achievable but just can't get going! May be i should have said yes to the medication!

Just to top it all my wages are £250 down cos I've been off sick and my daughter's school holiday (which I comitted to before I split with OH) is due paid this month - I still owe £200!!!!!

judi24

God my spelling is awfull sorry!!!!!!!