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New Here - drowning in debts and desperate for advice!
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Married_Mum_of_2
Posts: 11 Forumite
Hi everyone
Have been reading a few threads and it seems like there's lots of good advice out there for peoples debt problems so I thought I'd give it a go and post my situation up for someone to pick apart before I apply for an IVA!
1. My husband has his own business and I am a stay at home mum on no salary
2. We have found ourselves in a low income, how outgoing, stacked up debts position.
3. I took advice from the CAB about our problems and were told to write to all our creditors with a personal budget sheet showing our situation and offering lowered payments until our situation improves - well most accepted but a couple haven't and I'm now faced with a few CCJ threats.
So here goes:
Income
Salary - £3430
Tax credit - £510
Child Benefit - £74
Rent - £2383
Total Income = £6397
Outgoings
Mortgage - £2950
Rent - £2585
Council Tax - £155
Water - £20
Buildings Ins - £69
Life Ins - £16
Gas & elec - £79
Housekeeping - £350
TV Licence - £11
Mobile Phone - £35
BT - £50
Total Outgoings = £6320
Loans & Credit cards
Lloyds TSB Credit Card - £8000
Natwest Loan - £12000
Next £2000
Total Loan Debts - £22,000
So - we have had to stop paying our credit cards and loans and this has brought CCJ threats from Lloyds and Next (they are defaults at the moment but there is nothing I can do about paying them what they want so it will become CCJ's)
We already have a CCJ underway through Northern Rock for 2 missed mortgage payments
We need to find somewhere cheaper to rent but in Hammersmith that's not going to go down much - and we really have to live here as this is where my husbands company is and he would just never see us if we lived a commuter ride away.
We cannot sell our mortgaged property as we are in negative equity, the market is terrible and as we only bought it last year, Northern Rock would keep our £30,000 deposit - we don't get that back until 2012. We would be at a loss.
Benefits likely to rise a little bit soon as I am due to give birth to baby 2 on June 23rd :eek: so at least tax credits and child benefit will rise a little bit - not much though.
Can't do anything about reducing our rent until August 2008 but by then we may be too late with reaching payment deals with creditors.
Have been reading a few threads and it seems like there's lots of good advice out there for peoples debt problems so I thought I'd give it a go and post my situation up for someone to pick apart before I apply for an IVA!
1. My husband has his own business and I am a stay at home mum on no salary
2. We have found ourselves in a low income, how outgoing, stacked up debts position.
3. I took advice from the CAB about our problems and were told to write to all our creditors with a personal budget sheet showing our situation and offering lowered payments until our situation improves - well most accepted but a couple haven't and I'm now faced with a few CCJ threats.
So here goes:
Income
Salary - £3430
Tax credit - £510
Child Benefit - £74
Rent - £2383
Total Income = £6397
Outgoings
Mortgage - £2950
Rent - £2585
Council Tax - £155
Water - £20
Buildings Ins - £69
Life Ins - £16
Gas & elec - £79
Housekeeping - £350
TV Licence - £11
Mobile Phone - £35
BT - £50
Total Outgoings = £6320
Loans & Credit cards
Lloyds TSB Credit Card - £8000
Natwest Loan - £12000
Next £2000
Total Loan Debts - £22,000
So - we have had to stop paying our credit cards and loans and this has brought CCJ threats from Lloyds and Next (they are defaults at the moment but there is nothing I can do about paying them what they want so it will become CCJ's)
We already have a CCJ underway through Northern Rock for 2 missed mortgage payments
We need to find somewhere cheaper to rent but in Hammersmith that's not going to go down much - and we really have to live here as this is where my husbands company is and he would just never see us if we lived a commuter ride away.
We cannot sell our mortgaged property as we are in negative equity, the market is terrible and as we only bought it last year, Northern Rock would keep our £30,000 deposit - we don't get that back until 2012. We would be at a loss.
Benefits likely to rise a little bit soon as I am due to give birth to baby 2 on June 23rd :eek: so at least tax credits and child benefit will rise a little bit - not much though.
Can't do anything about reducing our rent until August 2008 but by then we may be too late with reaching payment deals with creditors.
0
Comments
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sorry maybe being a bit thick here, but whats the rent for?Thinking it over...:o0
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what exactly does house keeping cover?? £350 is an awful lot for 2 adults and a child.
Do you have a 2nd proporty that you rent out??MF aim 10th December 2020 :j:eek:MFW 2012 no86 OP 0/20000 -
What's the £50 BT for? This sounds expensive for phone/Internet sure you could get a better deal
Agree with lilaxpixie, £350 is a lot for housekeeping, check out the oldstyle saving threads for ideas on cutting this backMoney doesn't make you happy so I'm skint but cheerful :beer:0 -
I had another thought. Are you getting £510 tax credits a month??? We only get £40 and we earn alot less than 3.5k a month. I am obviously missing something.MF aim 10th December 2020 :j:eek:MFW 2012 no86 OP 0/20000
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Hi there MM02. I've quoted (most of) your post, and stuck my own comments in....Married_Mum_of_2 wrote: »
Okay, first off, I know this might sound thick, but these are monthly figures, right? Just checking....
Income
Salary - £3430
Tax credit - £510
Child Benefit - £74
Rent - £2383
Total Income = £6397
Outgoings
Mortgage - £2950
Rent - £2585 I don't understand why you have both mortgage and rent? In the case of the mortgage, what kind of deal is it? Have you renegotiated recently? Why aren't you living in it (I've read what you wrote at the end, now, about being in negative equity with it, but I still don't understand why you aren't in it, or renting it outAck, just seen that you *are* renting it out, sorry).
Council Tax - £155
Water - £20 Well done you, thats good!
Buildings Ins - £69 On the other hand, if this is monthly, thats incredibly, horribly high...
Life Ins - £16
Gas & elec - £79
Housekeeping - £350 You should be able to get that down a long, long way. Pop over to the Moneysaving Old Style board on here and have a look.
TV Licence - £11
Mobile Phone - £35
BT - £50 I understand you need a mobile if your OH is self employed, but taken together these are very high telecoms bills, you must be able to get these down - follow the instructions on the Phones tab on the main site (at the top of every page).
Total Outgoings = £6320
Loans & Credit cards
Lloyds TSB Credit Card - £8000
Natwest Loan - £12000
Next £2000
Total Loan Debts - £22,000
And you're due to have a baby any day! Well, congratulations on that! Life goes on. I realise you're probably feeling kind of fuzzy right now, but there's a bit of room for manoeuvre in this budget. Not a lot, but some. However, there are probably things that aren't in it - transport, for one, for your OH. Anyway, see what you make of what I've written.... good luck!2023: the year I get to buy a car0 -
I am assuming that as you have included rent as well as a mortgage that this is for your OH's business. If so, and he is self-employed that should be paid from his business and kept seperate from the household bills. The drawings would be his salary and rightly this would be used for household bills and not business expenses.
I was going to suggest transferring some of the debt to a 0% balance transfer card but you have advised that you are in arrears with your other credit cards so it may not be possible to move over - I am not an expert in these matters so someone else may be able to offer better advice.
It may still be better to move to a smaller home on the outskirts of London which would be cheaper than Hammersmith, alternatively, could you not rent out a room in your house to bring some money in? I appreciate that it may mean a commute for a time but I am sure that OH should be able to manage to return home at weekends - lots of people out there do commute.
Are the debts personal ones or business ones? Just wondering really especially as your husbands monthly drawings are quite high.
Good luck with the baby.0 -
I am assuming that as you have included rent as well as a mortgage that this is for your OH's business.
I was presuming that the OP had a mortgaged house away from Hammersmith that they feel they cannot sell (hence the mortgage payment); so they are renting out that house (hence the rental income); but they are renting somewhere to live closer to his work (hence the rental payment).
Can't wait for the OP to clarify!:heartpuls Mrs Marleyboy :heartpuls
MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remoteProud Parents to an Aut-some son
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Tigsteroonie wrote: »I was presuming that the OP had a mortgaged house away from Hammersmith that they feel they cannot sell (hence the mortgage payment); so they are renting out that house (hence the rental income); but they are renting somewhere to live closer to his work (hence the rental payment).
Can't wait for the OP to clarify!
Me neither. I guess I was thinking from a business perspective.0 -
Right - sorry for being confusing - here goes
We bought a house about an hour's commute from Husbands work last year. It was a huge mistake as he is in in the early hours and home really late.
He was MISERABLE as he loves his kids and wants to see them for at least half an hour a day, so we decided to rent out our house and to go and rent a house in Hammersmith next to his work so he can at least see his kids at lunchtimes and we don't pay any travel fares.
Our taxable salary is £430 a month - hence the high benefits. We have organised a directors loan of £3000 a month to pay the mortgage which we do not get taxed on but obviously are not receiving any income from. Original mortgage was £2880 but is now £2950 due to repaying arrears and we are trapped like that for a good few years - so really not ideal.
What I meant by housekeeping was monthly food shopping budget (sorry to be confusing) - I spend about £85 a week on food and household stuff.
Halifax Buildings Ins have reduced our monthly bill from £85 to £69 - I don't get why it's so high - it's a 4 bed terraced house with no contents insurance?
BT have just offered me a new deal for broadband and phone for £30
Again it's all quite pricey still but our credit rating is now absolutely GUBBED that I don't think I'm at liberty to really shop about. I'd get turned down by just about everyone.
When I listed our outstanding debts at £22,000 - I totally forgot our £9,000 overdraft that's costing us about £100 a month in interest GULP. That means outstanding debts of £31,000. Even if consolidations worked that wouldn't be an option as we are not candidates for loans.
Thanks everyone0 -
anyone out there?:o0
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