Help I'm sinking

A question about : Help I'm sinking

So We have had a rough time this year my husband lost his well paid job and I am on a low income. At first we were positive he would get a job. It was coming up to christmas and we had a cc debt of 3000 so decided to take advantage of a pre approved loan from Barclays of 8000 to pay off cards see us through christmas and pay bills in the hope he would get a job asap. unfortunately it proved more difficult and living off my overdraft and using my cc for food and bills we ran up a considerable bill. We know owe 7000 on loan and 15000 on cc currently on 0% until may 2014 my husband now has a job but not as well paid as we hoped but a job is a job. So now with 22000 debts we are managing to pay everyone on time and have never missed any payments but can only afford the minimum repayments on the cc I don't know what to do . I have a small mortgage with plenty of equity in the house but my lender will not give us the additional borrowing to consolidate the debt meaning we have no disposable income at the end of the month. I just don't know what to do I can't bear the thought of being this miserable for the unforseable future and I don't want my children to suffer. I feel such an idiot but with my husband out of work for almost a year the debt is only the cost of our living during that time its not like we were splashing the cash. I am sure a credit rating will be low. Any help will be greatly appreciated

Best answers:

• Post a Statement of Affairs and you'll get better advice on how to cut back spending, and how to tackle the debts. You should probably be looking at how to increase income and decrease outgoings, rather than thinking of further consolidation of debts.
• Didn't want to read and run, the first thing to do do is fill out a statement of affairs (using the link below), so others on this forum can give their advice as where to save money.
  https://www.stoozing.com/calculator/soa.php
• font=courier new]Statement of Affairs and Personal Balance Sheet
  Household Information
  Number of adults in household........... 2
  Number of children in household......... 2
  Number of cars owned.................... 1
  Monthly Income Details
  Monthly income after tax................ 1000
  Partners monthly income after tax....... 670
  Benefits................................ 485
  Other income............................ 0
  Total monthly income.................... 2155
  Monthly Expense Details
  Mortgage................................ 413
  Secured/HP loan repayments.............. 0
  Rent.................................... 0
  Management charge (leasehold property).. 0
  Council tax............................. 108
  Electricity............................. 30
  Gas..................................... 40
  Oil..................................... 0
  Water rates............................. 35
  Telephone (land line)................... 20
  Mobile phone............................ 30
  TV Licence.............................. 12
  Satellite/Cable TV...................... 40
  Internet Services....................... 0
  Groceries etc. ......................... 400
  Clothing................................ 40
  Petrol/diesel........................... 160
  Road tax................................ 10
  Car Insurance........................... 35
  Car maintenance (including MOT)......... 16
  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...................... 18
  Life assurance ......................... 35
  Other insurance......................... 0
  Presents (birthday, christmas etc)...... 85
  Haircuts................................ 20
  Entertainment........................... 40
  Holiday................................. 0
  Emergency fund.......................... 0
  Total monthly expenses.................. 1587
  
  Assets
  Cash.................................... 0
  House value (Gross)..................... 130000
  Shares and bonds........................ 0
  Car(s).................................. 2000
  Other assets............................ 0
  Total Assets............................ 132000
  
  Secured & HP Debts
  Description....................Debt......Monthly.. .APR
  Mortgage...................... 56000....(413)......0
  Total secured & HP debts...... 56000.....-.........-
  Unsecured Debts
  Description....................Debt......Monthly.. .APR
  barclaycard....................15000.....150...... .0
  loan...........................7000......160...... .8.7
  Total unsecured debts..........22000.....310.......-
  
  Monthly Budget Summary
  Total monthly income.................... 2,155
  Expenses (including HP & secured debts). 1,587
  Available for debt repayments........... 568
  Monthly UNsecured debt repayments....... 310
  Amount left after debt repayments....... 258
  Personal Balance Sheet Summary
  Total assets (things you own)........... 132,000
  Total HP & Secured debt................. -56,000
  Total Unsecured debt.................... -22,000
  Net Assets.............................. 54,000
• Keep a spending diary to find out where that Ј258 goes - if you could throw it at your debts that'd make a big difference.
  There's maybe other cutbacks to be made - replace Sky with Freeview, cut back on birthday/Christmas presents, shop at Lidl/Aldis etc.
  See if you can Ebay any unneeded clothes/games/CDs/DVDs.
• not sure where the surplus is going on the kids probably and I have been trying to put extra to the debt I guess I need to cut down on my spending. I will try and earn some on ebay selling unwanted items. I could cut back on my shopping although I always seem to struggle with that one . my aim is to try and pay an extra Ј300.00 per month on cc then swap over to my other when the 0% ceases.
• Hi
  First of all things are not that bad, we've seen a lot worse (me for example!)
  You need to start looking at where every penny is going. Now I know that's a pain, and you are feeling sorry for yourself that your in this position but a spending diary really does work.
  Your both on board with this I take it ? Well both of you write everything down you spend. Then you can see where any cutbacks can be made cos I bet, in fact I know, you don't have Ј258 over every month. If you did, you wouldn't be here.
  So.....pick yourself up and start planning on saving a bit of cash, aldi really works we save about 40 quid every time we go as there is less choice so fewer temptations, especially if your shopping with children.
  Do you need sky? Ring up and see if you can cut a deal or just Jack it and go freebies. Don't worry it's not forever!
  Ј40 on entertainment? I bet that's a bit conservative.
  You can do this, there is light already light lowing at the end of the tunnel so start your journey and see just how much your really spending
  E2
• Iam struggling to adjust having gone from having a disposable income of Ј1100 with no debt to one of less than Ј300 and Ј22000 debt. I need to get my head around the fact that we are now skint
• I forgot to add I did have an overdraft of Ј1900 But I have now clear of that this month and have a balance of Ј65.00 not a great deal but better that the minus. My husbands job is paid monthly so he wont receive a full month until next months wage packet so it will be then have the Ј258 at the end of the month hopefully more
• Don't give up on finding a better paid job or promotion. In the meantime you're doing the right thing keeping on top of the debt and chucking what you can at it.
• What's a "children's family investment"
• Any way you could increase payments to the loan?
  At the current rate you are paying, it's going to take 53 months to clear it, and cost you Ј1,377 in interest.
  If you could manage another Ј60pm, it'd be paid off in about 3 years, and save you over Ј450 in interest.
  BTW. When does the 0% end on the Barclaycard, and what does the interest rate become then?
• That interest rate jump in February changes a lot.
  At the current rate, in February, you will have around Ј14,000, at an interest rate of 22.9%.
  What is the % of the minimum payment on the CC?
• I've plugged the figures into whatsthecost and if Barclaycard are a at 2.25% then minimum payment will be about Ј315 on 14000 at 22.9.
  But if someone could check that.
  It will also take 97years to pay off at minimum payment. Gulp.
• You need to cut right back on presents - you are spending over 1000 pounds on presents a year!!! The book People do wonderful boxsets of books, around 10 pounds for 10 books - I always buy those, even 2/3 of those is a wonderful present and minimal money.
  Cut down Sky - 480 a year, entertainment can be cut for time being (Obv you need to relax but picnics etc, so much cheaper!)
  You could even leave the children's family investment for time being until you are in a better position - that's 720 a year saved. Haircuts - can be left surely longer? Leave clothes shopping for a couple of months, even sell some on ebay... You can do this.
  Cut down on groceries as suggested and you will find the money will be freed up.