Newbie saying hello...

Frugal_Fox

Hi Southern Scouser,

We have just one, with £1900 left to pay off it - this has come down from 4 cards with a total debt of approx £8000, to head way was made, its just the change in money that has lead to this big problem for us at the moment.

a_j_bingham

Hi Frugal Fox,

Given that your personal circumstances are likely to change in the next couple of years, when you return to work on either a part or full time basis, I think you should be trying to keep your house.

It seems to me that an extra two hundred pounds a month would make a substantial difference to your circumstances, and whilst you may still not be comfortable, at least the situation would be manageble.

Your household budget looks to be as low as possible, so the only way to solve this problem is either to increase your income or reduce your outgoings. Easier said than done.

Are you claiming all of the benefits you're entitled to? Have your child tax credits and working tax credits been altered to reflect your familys reduced income? Could you consider finding another job, possibly one working from home to solve your childcare problems?

I think you should also contact your mortgage lender again, inform them of your circumstances, make sure you're speaking to the right person, it's all too easy to get fobbed off by someone who doesn't have any discretion to make decisions. You're not wanting to borrow any more money, just restructure your existing loan on improved terms, either over a longer period or at a reduced rate, preferably both, to reduce your monthly repayments. You did say your original loan had been taken out over a shorter period of time to reduce the interest you had to pay, this suggests it could be lengthened and you haven't defaulted on your mortgage yet.

Also speak to your credit card and store card lenders, again explain the situation, ask if they'll freeze the amounts or reduce the interest rates to lower the monthly repayments.

The main thing is to ask. At the moment you're still able to pay your debts you'll just need a longer period of time and as this is just an interim measure, before you go back to work, you should be able to cope if your lenders agree.

From your lenders point of view they would rather have you paying something than nothing at all.

Regards,
Andrew.

skintchick

OK, I agree things ARE pretty pared down, but as I asked you to post, here's my thoughts.

House Bills = £292
Council Tax - £80
Charity Donation - £4 (very, very important to me) I know this is important to you, but could you put it on hold for now? And then overpay in the future, as it were, to make up for it? If not, I don't think £4 will matter TOO much.
Water Rates - £19
Gas - £30 (Failed DD means higher payments at the mo!)
Electricity - £25 (same as above!)
BT - £12 Can you swap to someone like onetel? Check out the telephones board as they might be able to help you
Internet - £15 (unlimited & ethical) Personally, I think internet is a luxury, as you can use it free at the library. Do you REALLY need this?TV - £13 Why is it this much? Mine is £10.41 and I thought the licence cost teh same wherever you are. Have you got some arrears you are paying off?
Home insurance - £26 This sounds expensive - could you get it cheaper?
Life Assurance - £10 Do you really need this? I'd cancel it for the time being.
Pet Insurance - £25 (NB - covers 1 dog & cat with Tesco, and 1 cat with Petplan, as has recurring illness, for which they cover for life) I'll let you off on the recurring illness, but the other two don;t need this - you'd be better off using it to help your situation.
Car Insurance - £33

Plus £832 on mortgage, and £290 on secured home loan.
Plus £100 personal reserve paying back (highest APR)
Plus £80 on credit card
Plus £50 on store card

With only an income of £1838, and outgoings of £1644 we only have £194 left each month for food and other items.

We do get £310 from social services each month towards the 'upkeep' of the children, plus my £40 from a cleaning job - is this included in your total above? Or is it extra?

Personally, I can't see any other alternatives for us, but to sell the house and rent.


I agree it is very tight, but I think the suggestions of playing around with your mortgage term etc could work for you. But you are doing brilliantly in thinking it allt hrough and working out what;s best for you. Keep posting so we can keep supporting you.

Frugal_Fox

skintchick wrote:

OK, I agree things ARE pretty pared down, but as I asked you to post, here's my thoughts...

We do get £310 from social services each month towards the 'upkeep' of the children, plus my £40 from a cleaning job - is this included in your total above? Or is it extra?

Personally, I can't see any other alternatives for us, but to sell the house and rent.


I agree it is very tight, but I think the suggestions of playing around with your mortgage term etc could work for you. But you are doing brilliantly in thinking it allt hrough and working out what;s best for you. Keep posting so we can keep supporting you.

Hi SkintChick,

The charity donation is terribly important to me - a close family member died from cancer, and this supports the hospice that cared for the prior to their
death. I understand your thoughts on using this for us for now, and over paying later, and I will consider this, however I feel that £4 is probably not going to make masses of difference at the moment to us.

The £310 for the adoption payment is included in the income above already.

I hadn't considered changing the phone - but will check out the other boards.
Internet isn't a luxury for us, as my partner needs this as is currently studying and needs this for research - our nearest library is 12 miles away.
TV - i thought the DD was just under £13 - but will check this out.
Pet insurance - yes, you have a point, and will deal with this on Monday, as have had the insurance now for a long time, and not made a claim on either policy. Also local vet would allow us to pay over time for expensive op if needs be.

Frugal
x

Frugal_Fox

a_j_bingham wrote:

Hi Frugal Fox,

Given that your personal circumstances are likely to change in the next couple of years, when you return to work on either a part or full time basis, I think you should be trying to keep your house.

It seems to me that an extra two hundred pounds a month would make a substantial difference to your circumstances, and whilst you may still not be comfortable, at least the situation would be manageble.

Your household budget looks to be as low as possible, so the only way to solve this problem is either to increase your income or reduce your outgoings. Easier said than done.

Are you claiming all of the benefits you're entitled to? Have your child tax credits and working tax credits been altered to reflect your familys reduced income? Could you consider finding another job, possibly one working from home to solve your childcare problems? According to tax credits we are due £35 per week - based on our family income. We are eligable for no further benefits.

I think you should also contact your mortgage lender again, inform them of your circumstances, make sure you're speaking to the right person, it's all too easy to get fobbed off by someone who doesn't have any discretion to make decisions. You're not wanting to borrow any more money, just restructure your existing loan on improved terms, either over a longer period or at a reduced rate, preferably both, to reduce your monthly repayments. You did say your original loan had been taken out over a shorter period of time to reduce the interest you had to pay, this suggests it could be lengthened and you haven't defaulted on your mortgage yet. Bizarre as this may seem, this really isn't an option I had considered. We have never missed a mortgage payment, or been late paying. I will contact our lender and see if we can renegotiate our terms. My only fear is that we may still be tied in with an Early Redemption Clause, would a restructure mean that this would become payable ?

Also speak to your credit card and store card lenders, again explain the situation, ask if they'll freeze the amounts or reduce the interest rates to lower the monthly repayments. Again, something I had not thought of as an option for us. Will do this too.

The main thing is to ask. At the moment you're still able to pay your debts you'll just need a longer period of time and as this is just an interim measure, before you go back to work, you should be able to cope if your lenders agree.

From your lenders point of view they would rather have you paying something than nothing at all.

Regards,
Andrew.

Andrew,
Thanks for your post. You have many valid points, and I will follow these up.

Frugal
x

johannamse

Hey there,

Someone asked above - do you get working tax credit or child tax credit?

When I first read your post I thought "good on you". We are doing a similar thing, and it is the right decision for us. SInce reading all the posts though, I wonder whether you have "debt fatigue", and some small changes would enable you to stay in your house? Another thing I thought of was, please start to share this stuff with hubby. Money is a terribly stressful thing in life (generally not having enough) and while we have trying to get out of debt, we talk through every decision, which alleviates stress for both of us. Oh and another thing...

WELL DONE, for reducing your debt so significantly so far.

Oh, another thing I just though of...would any of the kiddies be entitled to disability living allowance due to their mental health. I hope I don't offend you, and have got the right impression. Why not post on benefits board.

Good Luck.

ben500

Personally I can see that dropping the pet insurance would be a boon, that having been said, I thought this myself until my cat had a broken leg, to cut a long story short, one corpse and five months later the total bill came to £1700, unless you are prepared to see your pet suffer I would suggest you keep the insurance or find an alternative home for the pets as you could very easily turn your situation into rather more of a dillema should one of them come to grief without the insurance, I wasn't insured at the time, I am now!!

Frugal_Fox

johannamse wrote:

Hey there,

Someone asked above - do you get working tax credit or child tax credit?

When I first read your post I thought "good on you". We are doing a similar thing, and it is the right decision for us. SInce reading all the posts though, I wonder whether you have "debt fatigue", and some small changes would enable you to stay in your house? Another thing I thought of was, please start to share this stuff with hubby. Money is a terribly stressful thing in life (generally not having enough) and while we have trying to get out of debt, we talk through every decision, which alleviates stress for both of us. Oh and another thing...

WELL DONE, for reducing your debt so significantly so far.

Oh, another thing I just though of...would any of the kiddies be entitled to disability living allowance due to their mental health. I hope I don't offend you, and have got the right impression. Why not post on benefits board.

Good Luck.

Hi - Wonderful to hear someone else is doing what we are doing....

I don't think we have 'debt fatigue' - though not entirely sure what the true explanation of this would be...! However, I feel that we are not doing this purely because we have had enough, but that we have reduced all we can, and now with the change in circumstances we are unable to reduce further.

Together we have reduced our liabilities considerably. I am terribly proud of how far we have got - and without MSE, as I only found this earlier this year. We had already consolidated, and paid off our highest credit APR. We are now struggling, and I hadn't admitted to myself how tough it had got. Whilst I couldn't admit how tough it was, I couldn't talk to my husband about it.

We are now talking and talking well about it, and we made the decision to sell up together. It is a joint asset, and therfore it had to be a joint decision to sell. We made the choice to adopt together, and also that it is not possible for one of us to be at work whilst the children are adjusting to their new life with us, and it was a joint decision that it should be me that stayed at home.

As for the credit - its child tax credit, we are not eligible for working tax credit. They are also not eligible for any other benefits - disability or otherwise, and no, I am not taking any offence!!

Frugal
x

Frugal_Fox

ben500 wrote:

Personally I can see that dropping the pet insurance would be a boon, that having been said, I thought this myself until my cat had a broken leg, to cut a long story short, one corpse and five months later the total bill came to £1700, unless you are prepared to see your pet suffer I would suggest you keep the insurance or find an alternative home for the pets as you could very easily turn your situation into rather more of a dillema should one of them come to grief without the insurance, I wasn't insured at the time, I am now!!

I hear what you are saying.... howeber I still think this would be a good option for us. We are talking about this tomorrow....

Thanks for the comments though.

narabanekeater

Hi there
Ive been reading with great intrest this post.
I noted that you are unable to work due to your children and needing to be there for them. Yet the money from a wage for yourself would really help. Depending on the age of your little ones how about working in their schools? A dinner lady or teaching assistant maybe? Youd still be there for your children and have the holidays off with them. Some schools require qulaifications for teaching assistants other dont. Even if they do you can train up to level 1 in 10 weeks and level 2 in another 20. Total cost of training would be less than £150 for the 2 courses. Dinner ladies require a 1st aid certificate. Assuming as you would find working with children rewarding it may solve a problem for you.