Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • WelshKitty85
    • By WelshKitty85 22nd Jul 18, 1:03 PM
    • 1,008Posts
    • 8,363Thanks
    WelshKitty85
    £29,303...Enough is enough!
    • #1
    • 22nd Jul 18, 1:03 PM
    £29,303...Enough is enough! 22nd Jul 18 at 1:03 PM
    So, Iíve had ďlightbulb momentsĒ before, but today Iíve reached breaking point. The realisation that we could lose everything, including a roof over the childrenís heads, has slapped me in the face. From £4844 of debt 18 months ago, we are now at an all time high of £29,303. Yes, we have things to show for it. Weíve bought a new house and immediately spent £12,000 on repair work and decorating (we had budgeted around £7,000 but lots of cracks had literally been papered over). We also have 3 cars on the drive (Iíll come back to this later). But Iíve had the realisation that we could lose it all in a heartbeat as weíre living beyond our means.

    Today is the day that things have to change. Iím off to brew up, cry into my cup of tea, then make a plan. Iíll be back...
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Jul 18, 1:08 PM
    • 9,404 Posts
    • 21,805 Thanks
    enthusiasticsaver
    • #2
    • 22nd Jul 18, 1:08 PM
    • #2
    • 22nd Jul 18, 1:08 PM
    It is very common for debt to increase after moving house. Post an soa up here and we can help. Is the debt on interest free credit or 0% deals?
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • WelshKitty85
    • By WelshKitty85 22nd Jul 18, 1:35 PM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    • #3
    • 22nd Jul 18, 1:35 PM
    • #3
    • 22nd Jul 18, 1:35 PM
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 3

    Monthly Income Details

    Monthly income after tax................ 1370
    Partners monthly income after tax....... 0
    Benefits................................ 395
    Other income............................ 0
    Total monthly income.................... 1765


    Monthly Expense Details

    Mortgage................................ 799.3
    Secured/HP loan repayments.............. 240
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 146
    Electricity............................. 35
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 51.08
    Telephone (land line)................... 23.75
    Mobile phone............................ 41
    TV Licence.............................. 12.07
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 130
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 12
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 50
    Total monthly expenses.................. 1780.2



    Assets

    Cash.................................... 0
    House value (Gross)..................... 150000
    Shares and bonds........................ 0
    Car(s).................................. 25000
    Other assets............................ 0
    Total Assets............................ 175000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 142000...(799.3)....4.59
    Hire Purchase (HP) debt ...... 14888....(240)......5.66
    Total secured & HP debts...... 156888....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................8099......160...... .0
    RateSetter ....................4000......87.64.....7.4
    Hitachi........................11780.....226.5.... .3.4
    M&S Card.......................1593......35........22. 9
    MBNA...........................3831......70....... .0
    Total unsecured debts..........29303.....579.14....-



    Monthly Budget Summary

    Total monthly income.................... 1,765
    Expenses (including HP & secured debts). 1,780.2
    Available for debt repayments........... -15.2
    Monthly UNsecured debt repayments....... 579.14
    Amount short for making debt repayments. -594.34


    Personal Balance Sheet Summary
    Total assets (things you own)........... 175,000
    Total HP & Secured debt................. -156,888
    Total Unsecured debt.................... -29,303
    Net Assets.............................. -11,191


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • WelshKitty85
    • By WelshKitty85 22nd Jul 18, 1:39 PM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    • #4
    • 22nd Jul 18, 1:39 PM
    • #4
    • 22nd Jul 18, 1:39 PM
    SOA completed as accurately as possible. I haven!!!8217;t included any income for DH as he is totally reliant on agency work at the moment so doesn!!!8217;t have a guaranteed income. He does usually earn enough to cover the bills, but not guaranteed.
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • 0Credit
    • By 0Credit 22nd Jul 18, 2:42 PM
    • 51 Posts
    • 71 Thanks
    0Credit
    • #5
    • 22nd Jul 18, 2:42 PM
    • #5
    • 22nd Jul 18, 2:42 PM
    Hey

    Good luck with this, will be following and chipping in when I can to help and share my own experiences.
    • PositiveBalance
    • By PositiveBalance 22nd Jul 18, 3:34 PM
    • 1,138 Posts
    • 6,077 Thanks
    PositiveBalance
    • #6
    • 22nd Jul 18, 3:34 PM
    • #6
    • 22nd Jul 18, 3:34 PM
    Hi Welsh Kitty,



    I take it your husband earns something every month and that you aren't getting into more debt every month?



    If so, what's the least he has ever earned in a month and add that to your snowball. Any extra he earns per month can be thrown at the debts.
    Remaining debt: £500/£5069.01 (offset leaving £4569.01)
    Originally: £11,640.02; £6771.01 (58%) repaid; £7271.01 w/ offset
    CC balance: £4999.67 £0 (100% repaid )
    Emergency Fund (#187): £500/£1000
    Terrimundi: in early retirement!
    • WelshKitty85
    • By WelshKitty85 22nd Jul 18, 4:08 PM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    • #7
    • 22nd Jul 18, 4:08 PM
    • #7
    • 22nd Jul 18, 4:08 PM
    Hi Welsh Kitty,



    I take it your husband earns something every month and that you aren't getting into more debt every month?



    If so, what's the least he has ever earned in a month and add that to your snowball. Any extra he earns per month can be thrown at the debts.
    Originally posted by PositiveBalance

    Somehow we seem to bring in enough to cover the bills each month, but the work is hit and miss at the moment. Today is the first days work he has had in 2 weeks, and he doesnít know if heíll have anything for the rest of the month. Iíve done the SOA that way so we know the minimum he has to bring in (or miraculously find elsewhere) just to cover the essentials.

    To explain our situation a bit better, Iím on maternity leave but returning to work in August. We bought our house in November, gutted and completely redecorated the house. We moved in December, a week after baby no 3 was born, so it was chaotic to say the least.

    A large chunk of of debt comes from cars. DH purchased a car around 6 weeks ago. He didnít view it beforehand and was completely reliant on the dealerís description that said it was ďfully restoredĒ. Weíve since had the car into a local garage who say the car isnít even road worthy, never mind restored. So, we have submitted a S75 to the credit card company we used to pay the deposit. If our claim is successful then we should get a refund of nearly £5000, which can come straight off the debts.

    Iíve already started on a money making mission and have made £76 on selling sites, have agreed another £20 sale and have more to list.

    Iíve also been a bit cheeky requesting some free samples of baby food as DC3 has allergies (waiting for tests to confirm what heís actually allergic to) and meal times are trial and error at the moment. So far Iíve had £4 of baby food vouchers, £20 supermarket vouchers, and another supermarket have promised to send something.

    So not a bad start but itís keep the momentum going that I find difficult.
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • blue_eyed_girl123
    • By blue_eyed_girl123 22nd Jul 18, 4:14 PM
    • 100 Posts
    • 195 Thanks
    blue_eyed_girl123
    • #8
    • 22nd Jul 18, 4:14 PM
    • #8
    • 22nd Jul 18, 4:14 PM
    Have you considered piggy banking? Splitting bills/food etc into separate accounts, then you know exactly how much you are short on bills if your husband doesn't get a lot of work? Good luck sorting the car
    • WelshKitty85
    • By WelshKitty85 22nd Jul 18, 4:26 PM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    • #9
    • 22nd Jul 18, 4:26 PM
    • #9
    • 22nd Jul 18, 4:26 PM
    Have you considered piggy banking? Splitting bills/food etc into separate accounts, then you know exactly how much you are short on bills if your husband doesn't get a lot of work? Good luck sorting the car
    Originally posted by blue_eyed_girl123
    No I havenít. I use the one account for everything, but have a monthly spreadsheet so I know exactly whatís going in and out and can see if there will be a shortfall. I also usually use the M&S credit card to pay for petrol and shopping then pay it off in full each month. I can keep track of the monthly spends that way and we earn cashback vouchers on it too. But, now Iíve had to use that card because of the mess up with the car I need to get that balance cleared ASAP as itís the highest interest.
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • WelshKitty85
    • By WelshKitty85 22nd Jul 18, 10:12 PM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    Week 1 targets:
    Sort & declutter DC2s room & list outgrown toys & clothes for sale
    Sort & declutter loft (play room) and list unwanted toys for sale
    Chase refund for an item not received
    Aim to earn an additional £100 this week (have agreed £45 worth of sales already - if they show up to collect!)
    Send PPI claim letter
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • WelshKitty85
    • By WelshKitty85 23rd Jul 18, 10:29 AM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    Its the beginning of a new week. Lets start as we mean to go on.

    Minimum payment made to barclaycard and Ive been able to transfer some of the M&S balance to this card on 0%, so they currently look like:

    Description....................Debt......Monthly.. .APR
    Barclaycard....................8380......160...... .0
    RateSetter ....................4000......87.64.....7.4
    Hitachi..........................11780.....226.5.. .. 3.4
    M&S Card......................1161......35..........22 . 9
    MBNA...........................3831......70....... .. .0

    Total debt now £29,152
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • PositiveBalance
    • By PositiveBalance 23rd Jul 18, 11:49 PM
    • 1,138 Posts
    • 6,077 Thanks
    PositiveBalance
    Its the beginning of a new week. Lets start as we mean to go on.

    Minimum payment made to barclaycard and Ive been able to transfer some of the M&S balance to this card on 0%, so they currently look like:

    Description....................Debt......Monthly.. .APR
    Barclaycard....................8380......160...... .0
    RateSetter ....................4000......87.64.....7.4
    Hitachi..........................11780.....226.5.. .. 3.4
    M&S Card......................1161......35..........22 . 9
    MBNA...........................3831......70....... .. .0

    Total debt now £29,152
    Originally posted by WelshKitty85

    Good to see you have dug up the interest rates as this helps you figure out which debt to take out first. I take it you are going to aim everything you have got on the M&S card first as it's the highest interest and lowest balance?
    Remaining debt: £500/£5069.01 (offset leaving £4569.01)
    Originally: £11,640.02; £6771.01 (58%) repaid; £7271.01 w/ offset
    CC balance: £4999.67 £0 (100% repaid )
    Emergency Fund (#187): £500/£1000
    Terrimundi: in early retirement!
    • WelshKitty85
    • By WelshKitty85 24th Jul 18, 10:17 AM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    Good to see you have dug up the interest rates as this helps you figure out which debt to take out first. I take it you are going to aim everything you have got on the M&S card first as it's the highest interest and lowest balance?
    Originally posted by PositiveBalance
    Absolutely. Priority is to ensure we have enough coming in to cover all bills and minimum payments, then anything left over will be thrown at the M&S card.

    ETA: if and when the car refund comes through we will pay off the M&S card completely and pay off a big chunk of the RateSetter loan.
    Last edited by WelshKitty85; 24-07-2018 at 10:20 AM.
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • Mummy_bear
    • By Mummy_bear 24th Jul 18, 11:06 AM
    • 527 Posts
    • 1,798 Thanks
    Mummy_bear
    Hi, good luck on your debt busting journey x

    I've just subscribed so will follow your progress x
    My LBM May 2017, DH LBM July 2017- Total Debt (not Including Mortgage) £46444.23
    £28129.94/£46444.23 60.57% paid
    • Homegrown0
    • By Homegrown0 24th Jul 18, 1:16 PM
    • 1,035 Posts
    • 5,481 Thanks
    Homegrown0
    Hi, just stopping by to wish you luck! Fingers crossed for some work coming your partner's way because that seems like a good way to ramp up the debt repayment.

    You say that he relies on agency work is there a way he could register for more agency work elsewhere to open up more work opportunities? Without knowing what he does, I'm not sure if this is viable. Alternatively, he could seek some casual work elsewhere so that he can pick up some work when he's quiet?

    Just some thoughts!

    All the best
    • WelshKitty85
    • By WelshKitty85 24th Jul 18, 1:32 PM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    Hi, good luck on your debt busting journey x

    I've just subscribed so will follow your progress x
    Originally posted by Mummy_bear
    Thank you & welcome
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • WelshKitty85
    • By WelshKitty85 24th Jul 18, 1:36 PM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    Hi, just stopping by to wish you luck! Fingers crossed for some work coming your partner's way because that seems like a good way to ramp up the debt repayment.

    You say that he relies on agency work is there a way he could register for more agency work elsewhere to open up more work opportunities? Without knowing what he does, I'm not sure if this is viable. Alternatively, he could seek some casual work elsewhere so that he can pick up some work when he's quiet?

    Just some thoughts!

    All the best
    Originally posted by Homegrown0
    Hello & thank you for the suggestions. Heís actually been to register with another agency today and has found 2 more permanent jobs to apply for, which is the ultimate goal.
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
    • JonW1984
    • By JonW1984 24th Jul 18, 1:39 PM
    • 36 Posts
    • 153 Thanks
    JonW1984
    Hi, good luck getting this sorted, you can do it!

    Can I ask what the position is with the cars? You have listed £25,000 assets, can you look at selling and downgrading? £500 - £1000 can buy a reliable and usable car to see you through until the debt is cleared?

    The obvious answer to me seems to be for your husband to get steady work. I would have thought even a steady but low paying job is better than sporadic and unpredictable work?

    Can you reach out to your friends and family and get them all to ask around for any full time jobs going? Often a personal recommendation can go a long way to him getting a foot in the door somewhere.

    Good luck!
    • Homegrown0
    • By Homegrown0 24th Jul 18, 1:45 PM
    • 1,035 Posts
    • 5,481 Thanks
    Homegrown0
    Hello & thank you for the suggestions. Heís actually been to register with another agency today and has found 2 more permanent jobs to apply for, which is the ultimate goal.
    Originally posted by WelshKitty85
    Great! Hope things get moving soon for him to get you all in a better position.

    Another question is re: the cars, but I see that someone has already commented on that. How soon until you know whether you can reclaim the cost from the CC company? If not, will you be selling one of the other cars?
    • WelshKitty85
    • By WelshKitty85 24th Jul 18, 2:17 PM
    • 1,008 Posts
    • 8,363 Thanks
    WelshKitty85
    Ive made a phone call today to chase up the S75 claim. They say I should have a letter by 2nd Aug and they aim to resolve it with 60 days, so end Aug/beginning Sept it should be resolved. My car makes up the bulk of the remaining £20,000. I have thought about downgrading but dont know where I stand ending the finance agreement and donít think I have equity in it to sell it and pay off the finance.

    DH actually got a previous job from a family friend but it ended when they stopped paying him. To date they still owe him around £2,000. We took them to court, sent enforcement to the house etc and they took out an IVA so weíre now getting payments of around £6 a month.

    Heís just taken a call and has work tomorrow
    Enough is enough...
    £29,603 (22/7/18) £20,024.76
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,498Posts Today

7,937Users online

Martin's Twitter