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  • FIRST POST
    • Fingersoffish
    • By Fingersoffish 16th May 18, 4:43 PM
    • 12Posts
    • 0Thanks
    Fingersoffish
    Debt Spiraling - Need Help Fast.
    • #1
    • 16th May 18, 4:43 PM
    Debt Spiraling - Need Help Fast. 16th May 18 at 4:43 PM
    Hi,

    I've been an MSE follower for years. And.. I have to admit used to be excellent at managing my finances and never thought i'd be here. But through a mixture of bad decisions, work changes, complacency and ignorance I've ended up in a vicious debt spiral.

    I've tried for months to sort things alone, to take the weight off my family, but to no avail I fall back into the same old traps and the cycle continues. Now the debt is making me Ill and changes need to be made.

    I understand my situation may seem mild compared to some. In total I have around 3000 of debt + a 0% loan from my parents for 5100 (and no I can't just not pay this - They aren't well off!).

    Please see my SOE below and HELP if you can!

    I have rounded everything up to the nearest 5 to be as accurate as possible.

    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1404.33
    Partners monthly income after tax....... 365.63
    Benefits................................ 89.7
    Other income............................ 0
    Total monthly income.................... 1859.66


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 525
    Management charge (leasehold property).. 0
    Council tax............................. 105
    Electricity............................. 40
    Gas..................................... 45
    Oil..................................... 0
    Water rates............................. 45
    Telephone (land line)................... 0
    Mobile phone............................ 38
    TV Licence.............................. 12.13
    Satellite/Cable TV...................... 0
    Internet Services....................... 21.5
    Groceries etc. ......................... 250
    Clothing................................ 60
    Petrol/diesel........................... 295
    Road tax................................ 0
    Car Insurance........................... 102.91
    Car maintenance (including MOT)......... 36.5
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 25
    Medical (prescriptions, dentist etc).... 8.7
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 10
    Life assurance ......................... 6.3
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 60
    Haircuts................................ 7.33
    Entertainment........................... 85
    Holiday................................. 0
    Emergency fund.......................... 0
    Food@Work`.............................. 65
    Child Maintenance ...................... 57
    Total monthly expenses.................. 1900.37



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 5000
    Other assets............................ 0
    Total Assets............................ 5000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    0% 36 Month Card...............1500......41.36.....0
    Planned Overdraft..............1400......0.........10
    FAMILY LOAN FOR CAR............5100......200.......0
    Total unsecured debts..........8000......241.36....-



    Monthly Budget Summary

    Total monthly income.................... 1,859.66
    Expenses (including HP & secured debts). 1,900.37
    Available for debt repayments........... -40.71
    Monthly UNsecured debt repayments....... 241.36
    Amount short for making debt repayments. -282.07


    Personal Balance Sheet Summary
    Total assets (things you own)........... 5,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -8,000
    Net Assets.............................. -3,000
Page 2
    • MrsPorridge
    • By MrsPorridge 17th May 18, 7:51 PM
    • 1,655 Posts
    • 2,637 Thanks
    MrsPorridge
    Please do take a look (and encourage your wife to as well) at the Old Style Moneysaving board. There are loads of ideas on there for packed lunches and meal planning ideas. I always make my packed lunches after dinner whilst DH and I are washing up - I use leftovers which can be heated in the microwave as much as possible.
    Getting back on Track
    • Fingersoffish
    • By Fingersoffish 17th May 18, 8:26 PM
    • 12 Posts
    • 0 Thanks
    Fingersoffish
    That's what I need, hot, easy meals. I'll have a look. But it might mean investing in some tuppaware!
    • dionysia
    • By dionysia 17th May 18, 10:20 PM
    • 64 Posts
    • 137 Thanks
    dionysia
    The food at work definitely has to go. Are you 25 soon? Car insurance might reduce then. Your older child is part of the family and the expenses of seeing him are part of the family budget, so it means less on things like clothes, gifts and entertainment - you and your wife need to be on the same page there or the spiraling will just continue because of trying to spend like the car costs aren't there when they are.

    If you can't cut the expenses you have to up the income. Could her family that you're living near help provide some childcare so she can up her hours, or could she get an evening job a couple of nights a week while you're at home with your daughter? If you can't cut the expenses and you can't up the income, then the loan from your parents looks like the only thing that's flexible - I know you don't want to delay this and that's admirable, but otherwise since your expenses are more than your income before any debt repayments are taken into account, the only way you can pay them back is by borrowing money somewhere else.
    • Fingersoffish
    • By Fingersoffish 18th May 18, 9:52 AM
    • 12 Posts
    • 0 Thanks
    Fingersoffish
    The food at work definitely has to go. Are you 25 soon? Car insurance might reduce then. Your older child is part of the family and the expenses of seeing him are part of the family budget, so it means less on things like clothes, gifts and entertainment - you and your wife need to be on the same page there or the spiraling will just continue because of trying to spend like the car costs aren't there when they are.

    If you can't cut the expenses you have to up the income. Could her family that you're living near help provide some childcare so she can up her hours, or could she get an evening job a couple of nights a week while you're at home with your daughter? If you can't cut the expenses and you can't up the income, then the loan from your parents looks like the only thing that's flexible - I know you don't want to delay this and that's admirable, but otherwise since your expenses are more than your income before any debt repayments are taken into account, the only way you can pay them back is by borrowing money somewhere else.
    Originally posted by dionysia
    My plan of action so far is to have a long sit down with the wife tomorrow night and try and iron some things out in that department. The problem we have is for personal reasons we don't trust 90% of her family to babysit for long periods(They are polar opposites of us and the way we raise our daughter), the only one we do is my sister-in-law who works in care and has long shifts etc.

    I'm sure she'd be willing to look for an evening job, but the issue is finding someone who'd take her on when she couldn't start work until say 6.30pm.
    • bigisi
    • By bigisi 18th May 18, 12:50 PM
    • 191 Posts
    • 347 Thanks
    bigisi
    I notice you get the car serviced twice a year. For a vehicle that's doing long journeys as often as you (especially if it's diesel which I suspect it is) would be fine only being serviced once per year. If you're really bothered about it learn how to do an oil change and other basic stuff for the second service and have the full one done once per year.
    • sourcrates
    • By sourcrates 18th May 18, 2:13 PM
    • 14,030 Posts
    • 13,285 Thanks
    sourcrates
    How are you currently servicing the debt repayments ?

    As there is not enough money in your income/expenditure to do so.

    Solving this problem will go far beyond taking a few packed lunches to work, and cutting out fizzy pop, you have a monthly shortfall of approx 240.00, you cannot simply magic that out of thin air.

    I suspect at present the shortfall is either coming out of one or more of your other expenses or its going on the credit card, this situation is not sustainable.

    Either one, or both of you must increase their income, there is no alternative, at some point you will not be able to make all the contracted repayments, and somethings will have to be missed.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
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