Heavily in Debt!!!!! Advice please

bluezone

Hello to you all out there. I have been reading a lot on this website but now need some advice myself.

My husband and I both have loans and have been silly in our spending. We live in a cottage that is worth £195K - £200K. Our mortage is £125K. We also owe between us on cards and loans a whopping approx £112,500.00!!!!!!!!!

I have written done our incomings and outgoings for statutary items and without food, credit card payments etc we are still overdrawn. We have never missed out mortgage payments.

I have done this as hubby is no good with money so we decided it would be better if I took financial control and he gave me money each week. We switched all d.debits to my joint account with him as his joint account with me is frozen until we pay the overdraft off (£2500) at £400 per month.

I have taken on a 2nd job in the eve's and weekends and there may be a 3rd job in the pipeline (waiting to see if that comes off!)

Hubby didn't seem to realise that we were so much in debt and I think he thought that the money he was giving me was spending money for me!!! Since seeing the spreadsheet his attitude has changed and he is saying that we could re-mortgage the house by about £40,000.

Below is a list of our monthly outgoings - based on July: (without food, credit card payments etc)

30.00 Standing Order to ISA (this can be cancelled)
397.04 Capital Bank PLC (Car)
423.62 Card Loan (£12,000)
400.00 Bank PLC frozen a/c
63.82 T 'CSS' (BT Phone Bill) (quarterly)
26.98 BT Group Direct (broadband) (bound into 12 month contract)
32.64 Legal & General (Life Ins)
365.87 Card Loan (£15,000)
546.89 (80,000 mortgage)
312.50 (45,000 mortgage)
37.11 Mortage Ins
494.58 Bank Loan (£25,000)
76.87 His mobile phone (this varies)
8.55 Petplan for cat (expensive breed so need insurance)
104.72 My mobile phone (this varies)
8.55 Petplan for cat (expensive breed so need insurance)
400.00 Bank loan (£25,000)

This totals outgoings as : £3,729.74

Our incomings are : My wages this month £990.89
His contribution £500/week £2000.00
My 2nd job approx month £200.00
Incomings: £3190.89

Leaving us : £538.85 DR

After this we need to pay out for food, petrol, credit card payments etc.

Our credit cards add up to approx £35,315.69 and the available credit is £9,033.94.

I am just about keeping our heads above water by doing car bootsales when I can so that this can be used for more bills and food shopping etc.

My husband has offered to go bankrupt (he is self-employed) but I personally dont want this as would the debt be down to me and any future purchases would have to made by me only?

Now I have finished my essay into my finances is there any advice help out there?

The money problems are also putting a huge strain on our marriage.

;-(

bigglesinc

Contact the companies you owe and tell them your situation. Most are quite willing to help.

robindunne1

Here's my tuppence worth:

1. Cancel the standing order for the ISA
2. Am I right inthinking you have 2 cars? if so you can sell one of them - we survive on public trsnaport and have kids!!
3. If the cat you have is an expensive breed, sell that too.
4. Mobile phone costs seem way too high - are these necessary??
5. Have a look at scrapping the seperate insurances and getting them in one premium. Having two insurances means you are doubling up on admin charges when 1 one will do for the same amount as both. Look on https://www.moneysupermarket.com for better finance deals.
6. Call your braodbad provider and barter for a better deal, if they have reduced their prices since you took out the contract you can always ask that they charge you what is currently on offer.
7. Can you liquidate what is in your ISA and use it to relive some of the debt?
8. Get him to work a second job too!

Spendless

What's the reason for the large mobile phone bills? I'd suggest getting help from somewhere like nationaldebtline. Sure other members will be along shortly with advice.

martinpike

Why is his contribution £500 a week? Seems to me like you need a little more transparency about what he earns?

bluezone

Cheers for the advice so far. I will try to answer some of your questions.

"Here's my tuppence worth:

1. Cancel the standing order for the ISA
2. Am I right inthinking you have 2 cars? if so you can sell one of them - we survive on public trsnaport and have kids!!
3. If the cat you have is an expensive breed, sell that too.
4. Mobile phone costs seem way too high - are these necessary??
5. Have a look at scrapping the seperate insurances and getting them in one premium. Having two insurances means you are doubling up on admin charges when 1 one will do for the same amount as both. Look on https://www.moneysupermarket.com for better finance deals.
6. Call your braodbad provider and barter for a better deal, if they have reduced their prices since you took out the contract you can always ask that they charge you what is currently on offer.
7. Can you liquidate what is in your ISA and use it to relive some of the debt?
8. Get him to work a second job too!"

1. I am cancelling the standing order for the ISA today.
2. 1 car for me to do the 2 jobs at all hours, we live in a village so the public transport is not regular. 1 van for his business which he needs as he is a roofer.
3. We have 2 cats - british shorthair breed. We let them have a litter of kittens which we then sold but selling my cats is not an option - sorry.
4. His phone bill is quite low this month but he is hopefully going to claim that back through his business. Mine is way too high this month and would normally only be about £30.
5. Will look into this one thanks ;-)
6. Tried to call them but still 6 months before we can do anything :-(
7. Have already liquidated what was in the ISA (£1000) and put towards bills.
8. Task that is easier said than done!!!!

I hope I am not being too negative, just trying to be honest ;-)

bluezone

Hello martinpike,

He pays himself £500/week in wages from his company/business account and gives this straight to me. If he has a very good week he can pay me a bit more but then obviously if the weather is bad then I would be given less.

I hope this helps ;-)

crazyhazy

why do you both need mobiles? guessing his is for his business? Surely if you are this much in debt luxuries should be the first thing to go? I would try contacting the national debt helpline or another similar organisation. Personally the only way out would seem to be either get more contribution from hubby (that is if he is earning more) or start contacting creditors and arranging smaller payments with them. For cutting down shopping bills etc have a look on the money saving old style website foir ideas.

udydudy

Hi Bluezone

Not an expert but have helped friends get out of debt (smaller amounts though). Couple of queries.

Can you specify for the following, what the tenure of loan, the rate of interest and prepayment penalties are?

423.62 Card Loan (£12,000)
365.87 Card Loan (£15,000)
546.89 (80,000 mortgage)
312.50 (45,000 mortgage)
37.11 Mortage Ins
494.58 Bank Loan (£25,000)
400.00 Bank loan (£25,000)

Also you have mentioned that in addition to this you have food bills (expected but how much) and credit card bills.

can you specify what the credit card bills are over the above mentioned card loans? is that another 35000 above the loans? if yes I would presume these are at standard interest rates ? could you let us know what rates and what cards these are on?

Let us know and maybe we can all help. Looking at the present data I do not think you need to declare either as bankrupt but will surely require a lot of financial jugglery(the legal way)

James240

Hi Blue zone

Can u not switch to pay as u go? this would then allow u to keep calls to an absolutle minimum........

James

bluezone

hello,

"udydudy Hi Bluezone

Not an expert but have helped friends get out of debt (smaller amounts though). Couple of queries.

Can you specify for the following, what the tenure of loan, the rate of interest and prepayment penalties are?

423.62 Card Loan (£12,000)
365.87 Card Loan (£15,000)
546.89 (80,000 mortgage)
312.50 (45,000 mortgage)
37.11 Mortage Ins
494.58 Bank Loan (£25,000)
400.00 Bank loan (£25,000)

Also you have mentioned that in addition to this you have food bills (expected but how much) and credit card bills.

can you specify what the credit card bills are over the above mentioned card loans? is that another 35000 above the loans? if yes I would presume these are at standard interest rates ? could you let us know what rates and what cards these are on?

Let us know and maybe we can all help. Looking at the present data I do not think you need to declare either as bankrupt but will surely require a lot of financial jugglery(the legal way)"

The credit card bills are extra to the card loans - yes
The loan rates are between 7 and 9% and we have about 5 years to go on all of them.

The credit cards are on: 3 x Barclaycard, 1 x Tesco, 1 x Abbey National, 1 x HSBC, 1 x Capital One, 1 x WWF, 1 x Egg. They are all about 18% I think as I dont have the data at work with me only the final figures of amount owing.

Our freezer and cupboards are pretty full at present so aprt from washing powder etc we shouldn't need to go for a couple of weeks. On an average week including washing powder, comfort and cat food it is about £45.

"Can u not switch to pay as u go? this would then allow u to keep calls to an absolutle minimum........

James"

He cant as he needs his phone for his business but it is definately an option for me - thanks.