Your advice and thoughts are needed please...

rubydoiwannabee

Hi everyone,
I have posted a few times and received lots of support and advice, so thought I would update you on my current thinking and plan.

My OH and I have 26K of unsecured debt and have been considering a DMP. We have received our pack from NDL and now have an account number for a new account. Something is stopping us biting the bullet and going for it and so once again we sat down over this weekend to discuss and came up with the following plan.

Before I tell you that I need you to know we are currently paid up to date on everything, no one is hassling us and we are not receiving any extra charges. Although it is fair to say we are only paying the min payments on the cc. We have two children both at school and a mortgage on a 3 bed house with approx 60K equity. To enable us to keep up to date on everything we are living on CR, e.g. in the approved overdraft and CC (although this hasn't been used for the last 3 months).

What we haven't done to date until the last few weeks is discuss in detail our problem and have a LBM, this done and a budget agreed we are thinking we can start making BIG changes like each of us getting a 2nd job, selling on eBAY, spending less on groceries, cigerattes (my OH smokes) but is using patches from today etc. And although this will keep us in debt, we can start setting ourselves targets to reduce the OD each month, move the cc over to 0 % etc.

By doing this we can keep ourselves afloat and not jeopardise our credit rating when in two years our mortgage fixed rate comes to an end.

Now I know it is our decision and we want to do it as a starting point perhaps for 6 months and then if we are not any better off or things have got worse go down the DMP plan. But I would really like to hear thoughts from people who have been in a similar position?

I feel like this is our first attempt at putting things right, instead of being in denial.

Do you think we are putting off the inevitable? Still in denial? or :mad:

Any words or wisdom and experience very gratefully received.

Thanks :T

boredofbeingathome

I think it is a good start.
If you want to you could post your SOA in order for folks to come up with more tips.
A few more

quidco..look at money gained for applications of credit cards, utility swaps, insurance swaps and bank account swaps..always making sure they are the best deal for you.
Head over to the oldstyle board and join in grocery challenges, looking at recipes etc.
There is a thread on there by Weezl, USDA challenge, if you can beat her for food and budgeting you know you are on the right track!

Good luck with it all, daunting as they say but if you approach it the right way at least you know it can be done.

rubydoiwannabee

thanks I hadn't heard of quidco and will take a look at the other areas too.

boredofbeingathome

There are threads for upping your income as well, by signing up to mystery shops, make two pounds a day through clicking on links etc.
Hypno's diary is a good source for ideas as well.
The thread of weezls, is oldstyle vs usda head to head challenge.

rubydoiwannabee

Can anyone else offer any thoughts or advice?
(sorry to be so needy)
:>)
x

rubydoiwannabee

just blantantly moving myself back up.... !!!

dottyanne

I think youve made a great start, unlike me you havent waited until you cant afford to make payments and got behind so well done for that.

My circumstances where what gave me debt/payments problems in that OH got made redundant then we started our own business which failed - were both employed now and working but stil not out of the woods yet - if you can make a realistic budget and make inroads into your debts without defaulting on payments then thats what id reccomend - have you done a SOA/budget at all?

rubydoiwannabee

Thanks, it feels better. But we are only at the start.
Have done a SOA and we are £400 a month short, hence the need for more jobs and income. However that is £400 before we start cutting back on things like groceries etc.

We both do a 50 mile round trip for work each day and at the moment that means 100 a week is being spent on petrol and parking. So I am trying to work from home more. We are going to give it 3-6 months and then do a DMP if we can't see any improvement.

dottyanne

rubydoiwannabee wrote: »

Thanks, it feels better. But we are only at the start.
Have done a SOA and we are £400 a month short, hence the need for more jobs and income. However that is £400 before we start cutting back on things like groceries etc.

We both do a 50 mile round trip for work each day and at the moment that means 100 a week is being spent on petrol and parking. So I am trying to work from home more. We are going to give it 3-6 months and then do a DMP if we can't see any improvement.

£400 seems a lot to cut down on but its suprising how much you can do when you put your mind to it - perhaps you should post your SOA on here so we can all make some comments and advice where necessary.

rubydoiwannabee

I know it does and it is dependant on more work really, that is why I am only giving us 3-6 months to try!! Then we will know for sure that a dmp is our best option.

Here is our I&E

• Income

OHWages £1,473.00
My Wages £1,500.00
Child Benefit £125.40
Child Tax Credit £40.00

Total Income £3,138.40

• Outgoings
• Mortgage £1,082.32
• ISA (legal and general) £143.76
• Term Assurances £125.46
• Council Tax £140.00
• Water £31.50
• Buildings & Contents £23.22
• Gas and Electricity (EON protected) £113.00
• TV Licence £11.61
• Court Fine £25.00
• Phone £30.82
• Broadband (virgin) £15.00
• Dads life assurance £13.04
• 2x car insurance £45.26
• Mortgage payment protection (abbey) £37.94
• Fridge servicing and maintenance plan £4.79
• Breakdown cover (RAC) £3.60
• Childcare (14pw x 39/12) £45.50
• 2 x mobile phones £50.00
• 2 x mot, service and tax £75.34
• 2 x petrol and 1 x parking (parking = £20 per week, petrol £40 each pw) £433.33
• Housekeeping £408.00
• Prescriptions £10.00
• Clothing £45.00
• School bus pass £46.00
• Christmas and birthdays £20.00
• School meals/save or pocket money approx £.5.50 a week £22.41

Total before debt pments £3,001.90

• Debt payments
• Loan £235.79
• CC £197.00
• store card £35.00
• HFC bank £19.99
• £487.78

• Total outgoings £3,489.68

Difference a month -£351.28 short

I know this is a lot to make up but if we can get extra work and try and make savings on the above we are hoping. I have applied for a 0% credit card today to do a balance transfer.

Here is hoping... with lots of effort and discipline.

Any comments welcome.

rubydoiwannabee

Any advice on savings please?

:eek:
Feel quite naked, now I have posted that