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
    • Niknak83
    • By Niknak83 10th May 18, 7:24 PM
    • 6Posts
    • 0Thanks
    Niknak83
    How do I deal with these debts?
    • #1
    • 10th May 18, 7:24 PM
    How do I deal with these debts? 10th May 18 at 7:24 PM
    Having spent the last 5-10 years of my life spending more than I earn, Iím now in debt of £27,000 and need help with how to deal with it.

    I earn a decent salary but the amount Iím paying towards my debts means I donít have much left at the end of the month. My husband is on less than half my salary so I pay more towards the bills.

    Some of my credit cards are reaching their interest free periods and Iíve been declined for new interest free cards so canít transfer anything. How do I deal with these debts so that it is manageable?

    Income £2,209 per month after tax and pension deductions

    Payments
    £550 rent
    £58.58 Octopus energy
    £30 sofa
    £40 water
    £25.53 dog insurance
    £6.22 home insurance
    £210 food
    £10.59 - o2
    £277.98 - loan
    £260 - Barclaycard
    £102.02 - Virgin
    £58.72 - car insurance
    £106 - Natwest
    £24.67 - cat insurance
    £120 - petrol
    £70 - pet food
    £15.99 - gym
    £36 - dog walker

    Any other bills youíd expect to see from a normal household are paid by my husband.

    Debt
    Barclaycard £10,102.17 - £260/mth - £5,998 interest free until 25 May and then goes up to 17.5%, the remainder is at 6.9% for the life of the balance. Barclaycard wonít do any deals for the balance of £5,998
    Virgin £3,998.30 - £102/mth - interest free ends Dec 18
    NatWest c/c £6,735.76 - £106/mth - 6.9% interest
    Loan £6,190.20 - £277/mth - 5.9% interest
    = £27,026.43

    Is there anything anyone can suggest to help? Bankruptcy is not an option due to my job.
Page 1
    • Dobbibill
    • By Dobbibill 10th May 18, 8:40 PM
    • 3,052 Posts
    • 3,974 Thanks
    Dobbibill
    • #2
    • 10th May 18, 8:40 PM
    • #2
    • 10th May 18, 8:40 PM
    Fill in this SOA first - let's have a look at the bigger picture and see if we can make tailored suggestions.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    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.


    It's not about being the best -
    It's about being better than you were yesterday.
    • bytheseas
    • By bytheseas 10th May 18, 11:09 PM
    • 37 Posts
    • 43 Thanks
    bytheseas
    • #3
    • 10th May 18, 11:09 PM
    • #3
    • 10th May 18, 11:09 PM
    Honestly I can easily see huge savings there.

    Virgin completely gone you're + £102.02
    Dog walker, do you really need a dog walker? Can you not do it yourself? £36
    Both the pet insurances seem super high, my dog insurance is only £6 a month. Something to look at?

    £70 a month on pet food? They having a roast chicken per day each or something? I too have a cat and dog and maybe spend £20 maximum.

    Potential saving of: £188.02
    Mortgage: £68,322.21 Student Loans: £16,686.38Tax/accounting: £1924
    Starting Debt (08/04/2018) : £90283.01 Current Debt: £86,932.59



    Goal: Debt free by 2033
    • enjoyyourshoes
    • By enjoyyourshoes 11th May 18, 9:29 AM
    • 1,061 Posts
    • 1,300 Thanks
    enjoyyourshoes
    • #4
    • 11th May 18, 9:29 AM
    • #4
    • 11th May 18, 9:29 AM
    You need to do a couple of things:-

    identify what your life goals are and get both of you onto the same page. Is is vicariously live my life through my pets ? or something else? (I would suggest eradicate all your debts as number one then move onto something else (House, fantastic experiential holidays etc)

    Then live within your own financial envelope. Stop spinning on wants and focus on needs only, you can possibly work out what these are between the two of you?
    Debt is a symptom, solve the problem.
    • andydownes123
    • By andydownes123 11th May 18, 10:24 AM
    • 202 Posts
    • 284 Thanks
    andydownes123
    • #5
    • 11th May 18, 10:24 AM
    • #5
    • 11th May 18, 10:24 AM
    I have a cat and only pay £7 with Tesco...we've claimed a couple of times too.
    • ReadingTim
    • By ReadingTim 11th May 18, 11:21 AM
    • 2,660 Posts
    • 3,796 Thanks
    ReadingTim
    • #6
    • 11th May 18, 11:21 AM
    • #6
    • 11th May 18, 11:21 AM
    If you can't go bankrupt then you simply need to cut out every single unnecessary spend and throw every spare penny you have at your debt. And by unnecessary, I mean anything that's not a strict need - for example, you need shelter, food, water, heat. You don't need a dog walker.

    It's not going to be easy, it's not going to be fun. But you have little choice, and there's no magic bullet that's going to make it "manageable" without some (lots) of sacrifice.
    • Niknak83
    • By Niknak83 11th May 18, 12:10 PM
    • 6 Posts
    • 0 Thanks
    Niknak83
    • #7
    • 11th May 18, 12:10 PM
    • #7
    • 11th May 18, 12:10 PM
    Hereís my SOA:

    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details[
    Monthly income after tax................ 2209
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2209

    Monthly Expense Details
    Rent.................................... 550
    Council tax............................. 0
    Electricity............................. 29
    Gas..................................... 29
    Water rates............................. 40
    Telephone (land line)................... 0
    Mobile phone............................ 9
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 210
    Clothing................................ 0
    Petrol/diesel........................... 120
    Road tax................................ 2
    Car Insurance........................... 59
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 50
    Contents insurance...................... 6
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Pet food................................ 70
    Dog walker.............................. 36
    Gym..................................... 16
    Sofa.................................... 30
    Total monthly expenses.................. 1256

    Assets
    Cash.................................... 0
    Car(s).................................. 2500
    Total Assets............................ 2500

    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................5998......130...... .17.5
    Barclaycard....................4104......130...... .6.9
    Virgin C/C.......................3998.......40........0
    Natwest loan...................6190.......277.......5.9
    Natwest C/C....................6735......105.......6.9

    Total unsecured debts....27025.....682.......

    Monthly Budget Summary
    Total monthly income.................... 2,209
    Expenses (including HP & secured debts) 1,256
    Available for debt repayments........... 953
    Monthly UNsecured debt repayments....... 682
    Amount left after debt repayments....... 271

    Personal Balance Sheet Summary
    Total assets (things you own)........... 2,500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -27,025
    Net Assets.............................. -24,525

    Dog walker is essential as we both work all day and he canít be left on his own all day. We had our dog in our previous house which had a dog flap. We then had to move as the landlord was selling the house and were only able to find a house that has no where for a dog flap.

    Pet insurance is high as weíre with Petplan. Unfortunately our dog has hip dysplasia so if we changed insurance now, it wouldnít be covered and in the future he will need a hip replacement. Better to keep our insurance up rather than have to find upwards of £6k later down the line. We also have 3 cats. My nan died last year and we took her cat in. It was only supposed to be temporary but now canít bear to get rid of him.

    Pet food - 3 cats and 1 medium sized dog. Theyíre on Butchers and a cheap biscuit food from Pets at Home.

    Virgin is a credit card so until that balance is gone, Iíll need to keep the repayments up.
    • ViolaLass
    • By ViolaLass 11th May 18, 12:41 PM
    • 5,353 Posts
    • 7,402 Thanks
    ViolaLass
    • #8
    • 11th May 18, 12:41 PM
    • #8
    • 11th May 18, 12:41 PM
    You need to include your partner's salary and what they pay for otherwise we can't fully advise.
    • Niknak83
    • By Niknak83 11th May 18, 12:52 PM
    • 6 Posts
    • 0 Thanks
    Niknak83
    • #9
    • 11th May 18, 12:52 PM
    • #9
    • 11th May 18, 12:52 PM
    He brings in £1,040 a month.

    His outgoings include:
    - the rest of the rent £325
    - tv licence £12
    - council tax £110
    - Sky £13
    - mobile £30
    - petrol £50
    - own debts £300
    - dog walker £36

    We don!!!8217;t have a joint account so whatever money we have left after paying bills in our own accounts, is our own. So I don!!!8217;t take his earnings/outgoings into account when trying to pay my own debts off.
    • Suseka97
    • By Suseka97 11th May 18, 12:56 PM
    • 254 Posts
    • 360 Thanks
    Suseka97
    Hello,
    I have to agree with the above post that says you need to do a full SOA which includes all income and expenses for the household. That way folks will be able to provide more informed options for you. You may well consider the £27k as your debt and thus only want to list your household contribution which is understandable, but the issue may be bigger from a household perspective if, for example, your partner also has debts. if he does not, then great - but it would help to see the whole picture.

    A debt management plan could be a solution, but it will hit your credit worthiness (although that shouldn't matter seeing as you cannot afford your debts) or folks might be able to suggest the 'snowballing approach' whereby you whittle down your debts one by one.

    So, there is a lot you can do - but first do the full SOA.
    LBM Apr13: 14 Creditors / £85k+ owed
    Self-managed Aug17
    Current Status: 3 UE's and 3 with CCA's pending / £11k o/s
    • ViolaLass
    • By ViolaLass 11th May 18, 1:00 PM
    • 5,353 Posts
    • 7,402 Thanks
    ViolaLass
    You've got nothing between you for internet or entertainment, is that right?
    • Niknak83
    • By Niknak83 11th May 18, 1:05 PM
    • 6 Posts
    • 0 Thanks
    Niknak83
    Sorry missed that one out on my husband!!!8217;s outgoings. He pays £35.99 a month for the Internet.

    We don!!!8217;t really budget for entertainment. Can!!!8217;t really afford it.

    I!!!8217;m trying to get my own debts down so don!!!8217;t really consider his income and outgoings. It!!!8217;s my debt so don!!!8217;t think he needs to contribute to it.
    • ViolaLass
    • By ViolaLass 11th May 18, 1:17 PM
    • 5,353 Posts
    • 7,402 Thanks
    ViolaLass
    But do you spend anything on entertainment? That's the real question.

    The SOA has to be accurate, not wishful.
    • Niknak83
    • By Niknak83 11th May 18, 1:19 PM
    • 6 Posts
    • 0 Thanks
    Niknak83
    We don!!!8217;t go out but all my leftover money after I!!!8217;ve paid bills etc is gone before the end of the month. So I guess entertainment would be whatever is left after bills have been paid. That money also includes any annual vet fees, haircuts, car repairs, MOT/service etc. So should I factor all of this into my SOA?
    • Dobbibill
    • By Dobbibill 11th May 18, 1:46 PM
    • 3,052 Posts
    • 3,974 Thanks
    Dobbibill
    We don!!!8217;t go out but all my leftover money after I!!!8217;ve paid bills etc is gone before the end of the month. So I guess entertainment would be whatever is left after bills have been paid. That money also includes any annual vet fees, haircuts, car repairs, MOT/service etc. So should I factor all of this into my SOA?
    Originally posted by Niknak83
    You need to factor in everything, without doing that we won't get a clear picture of what you need vs what you want and how much, if any surplus is in the budget.

    You also failed to add anything to birthday/Christmas presents - do you not celebrate these occasions or do you put it against a credit card?
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    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.


    It's not about being the best -
    It's about being better than you were yesterday.
    • ViolaLass
    • By ViolaLass 11th May 18, 2:39 PM
    • 5,353 Posts
    • 7,402 Thanks
    ViolaLass
    We don!!!8217;t go out but all my leftover money after I!!!8217;ve paid bills etc is gone before the end of the month. So I guess entertainment would be whatever is left after bills have been paid. That money also includes any annual vet fees, haircuts, car repairs, MOT/service etc. So should I factor all of this into my SOA?
    Originally posted by Niknak83
    You must.

    You can't work out how to manage your money better until you've worked out how you are currently managing your money.
    • BBH123
    • By BBH123 11th May 18, 4:07 PM
    • 649 Posts
    • 1,131 Thanks
    BBH123
    Husbands wage is really low, is there no chance he can get a better job or overtime ?
    Save 12k in 2018 challenge #14
    3700/ 10000

    Saving for Christmas 2018 - £1 a day challenge
    #15 120/365
    • Niknak83
    • By Niknak83 13th May 18, 2:30 PM
    • 6 Posts
    • 0 Thanks
    Niknak83
    This is my updated SOA with allowances for vet bills, car repairs, MOTs, birthday/christmas presents, 2 haircuts a year. I've taken my husband's income/outgoings out as we don't have a joint bank account and I'm trying to sort my own debts out. Unfortunately his income won't change much anytime soon as he's changed careers recently so is starting from the bottom but he is managing.

    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 2209
    Other income............................ 0
    Total monthly income.................... 2209

    Monthly Expense Details
    Rent.................................... 550
    Management charge (leasehold property).. 0
    Electricity............................. 29
    Gas..................................... 29
    Water rates............................. 40
    Mobile phone............................ 9
    Groceries etc. ......................... 210
    Clothing................................ 10
    Petrol/diesel........................... 120
    Road tax................................ 3
    Car Insurance........................... 59
    Car maintenance (including MOT)......... 8
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 66
    Contents insurance...................... 6
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 6
    Entertainment........................... 150
    Emergency fund.......................... 0
    Dog walker.............................. 36
    Pet food................................ 70
    Gym..................................... 16
    Sofa.................................... 30 - repayment ends December 2018
    Total monthly expenses.................. 1482

    Assets
    Cash.................................... 0
    Car(s).................................. 2500
    Other assets............................ 0
    Total Assets............................ 2500

    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................5998......120...... .17.5
    Barclaycard....................4104......120...... .6.9
    Virgin credit card.............3998......50........0
    Natwest loan...................6190......277.......5.9
    Natwest credit card.........6735......106.......6.9
    Total unsecured debts....27025.....673.......

    Monthly Budget Summary
    Total monthly income.................... 2,209
    Expenses (including HP & secured debts). 1,482
    Available for debt repayments........... 727
    Monthly UNsecured debt repayments....... 673
    Amount left after debt repayments....... 54

    Personal Balance Sheet Summary
    Total assets (things you own)........... 2,500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -27,025
    Net Assets.............................. -24,525

    Is a debt snowmall my best option? I've considered DMP but as I can afford the monthly repayments, I'm not eligible. If I'm trying to be debt free, I can see I need to cut down on entertainment. Is it best to set a weekly budget that I have to limit myself to for entertainment purposes etc i.e. £30 a week? Any help is appreciated. I think I'm stuck with just plugging away at the debts but any useful tips would be helpful.
    • JayRitchie
    • By JayRitchie 13th May 18, 4:08 PM
    • 19 Posts
    • 16 Thanks
    JayRitchie
    The Barclaycard interest rate is killing you. Is there anything you could sell to try to reduce this? Realistically you need to cut the entertainment to nil and throw everything at this card. You probably need more income to clear this - can you husband earn more/ do a second job? What is you job? Can you live without a car?
    • ViolaLass
    • By ViolaLass 13th May 18, 4:56 PM
    • 5,353 Posts
    • 7,402 Thanks
    ViolaLass
    Is it best to set a weekly budget that I have to limit myself to for entertainment purposes etc i.e. £30 a week? Any help is appreciated.
    Originally posted by Niknak83
    Yes, that's exactly how budgeting works. You work out what the number needs to be/can be and stick to it.
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

3,102Posts Today

8,035Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin