We are about to pull the purse strings soooo tight!

A question about : We are about to pull the purse strings soooo tight!

Hi All,

Like a lot of people on here I have been lurking on this site as a watcher for a number of years and during this time I have also watched our finances spiral out of control. Today I have had my LBM and oh boy could I cry.

I have just done our SOA (which I will post once I've got all the info present and correct). Without the morgage I think we owe approx 30K, we've run out of money this week and have still got to pay out Ј350 before Thursday (all direct debits), this shortfall has been caused by my OH changing to weekly pay and all the bills come out in the first week on the month (well partly, the other reason is just that we owe so much). Will ask the bank tomorrow for an extension to the overdraft.......I can hear the 'I don't think so' all ready.

Everthing is such a mess, our finances have spiralled out of control, I'm such a mess (could do with a complete makeover and dramatic weight loss), I can't keep up with the housework, the garden, the kids, Oh and I work full time too.

I am truly hoping that we can get back on the straight and narrow and sort out our money problems. Then I will hopefully feel that everything else that needs sorting easier to tackle.

Apologies for rambling on, I'm just feeling very alone and like a complete failure at the moment.

Best answers:

• Hello,
  at some point or another pretty much all of us have been in your position.
  How important are the dds you have to pay? Think positively re Bank you never know!
  you could do a Statement of Affairs and work out exactly what you owe - utterly terrifiying I know but in the end it is better to know
  How supportive is you OH? Does he know the full extent of the debts?
  xx
• Hi Alice,
  Just wanted to bump your post so it doesn't disappear. I had lots of debt too at one time, but it has gone now Not saying that to gloat, you understand, just to let you know that there are lots of us who have been in your position, or are still. You aren't alone, and it can get fixed!
  I did my debt on my own, as there was no choice (I don't think) back then. However, now there are great debt charities such as CCCS and Payplan who will advise and help you for free - much better than the fee paying companies who keep cold calling at the moment (or at least they keep calling me - 10 years too late pal )
  Why not google them (sorry, I don't have the contact details ) and check out their websites, or give them a call?
  It would also help if you completed a SOA (statement of affairs). There is a link on here somewhere, and I just know that some lovely person will come along and post it now I have bumped your message. If you do this, you will get lots of advice on here, on where you could cut down - and it will also be really useful in your discussions with one of the debt charities
  And by the way, welcome to MSE
• Thank you Buffythedebtslayer, the dds are council tax, loan, gas/elect and mobile, fingers crossed the bank will be good to us. I will post a statement of affairs I just need to double check a couple of figures. My OH is aware of our financial situation but he's doing a pretty good impression of an ostrich at the moment!!!
  Thank you also DawnW, it's such a horrible feeling isn't it, made worse by the fact that it's all self inflicted (in our case anyway). Funnily enough I have looked at CCCS tonight, it looks like a possible route. I will post SOA of affairs and see what feedback we get, I know that people have some really good advice to give.
• Number of adults in household........... 2
  Number of children in household......... 3
  Number of cars owned.................... 2
  Monthly Income Details
  Monthly income after tax................ 1208
  Partners monthly income after tax....... 1088
  Benefits................................ 164
  Other income............................ 0
  Total monthly income.................... 2460
  Monthly Expense Details[/b]
  Mortgage................................ 530
  Secured/HP loan repayments.............. 213
  Rent.................................... 0
  Management charge (leasehold property).. 0
  Council tax............................. 145
  Electricity............................. 26
  Gas..................................... 66
  Oil..................................... 0
  Water rates............................. 42
  Telephone (land line)................... 15
  Mobile phone............................ 70
  TV Licence.............................. 12
  Satellite/Cable TV...................... 22
  Internet Services....................... 10
  Groceries etc. ......................... 400
  Clothing................................ 40
  Petrol/diesel........................... 200
  Road tax................................ 38
  Car Insurance........................... 58
  Car maintenance (including MOT)......... 30
  Car parking............................. 0
  Other travel............................ 0
  Childcare/nursery....................... 100
  Other child related expenses............ 20
  Medical (prescriptions, dentist etc).... 0
  Pet insurance/vet bills................. 6
  Buildings insurance..................... 10
  Contents insurance...................... 10
  Life assurance ......................... 19.5
  Other insurance......................... 0
  Presents (birthday, christmas etc)...... 30
  Haircuts................................ 25
  Entertainment........................... 20
  Holiday................................. 0
  Emergency fund.......................... 0
  Total monthly expenses.................. 2157.
  Assets
  Cash.................................... 0
  House value (Gross)..................... 200000
  Shares and bonds........................ 0
  Car(s).................................. 6500
  Other assets............................ 0
  Total Assets............................ 206500
  Secured & HP Debt
  Description....................Debt......Monthly.. .APR
  Mortgage...................... 85000....(530)......0
  Hire Purchase (HP) debt ...... 3500.....(213)......4.5
  Total secured & HP debts...... 88500.....-.........-
  Unsecured Debts
  Description....................Debt......Monthly.. .APR
  CC1............................8300......154...... .25.6
  CC2............................1380......25....... .17.22
  CC3............................9400......200...... .9.9
  CC6............................1654......53....... .23
  CC5............................1837......50....... .20.04
  CC4............................6356......198...... .0
  Total unsecured debts..........28927.....680.......-
  Monthly Budget Summary
  Total monthly income.................... 2,460
  Expenses (including HP & secured debts). 2,157.5
  Available for debt repayments........... 302.5
  Monthly UNsecured debt repayments....... 680
  Amount short for making debt repayments. -377.5
  Personal Balance Sheet Summary
  Total assets (things you own)........... 206,500
  Total HP & Secured debt................. -88,500
  Total Unsecured debt.................... -28,927
  Net Assets.............................. 89,073
• Hi and welcome. Pay all essentials like gas / elec mortgage/rent ctax water then seek advice on the debt eg cccs. You will sort it i know it feels scary right now, just take one step at a time x
• Have posted our SOA, had words with the OH. I didn't call the bank today to see if we could extend the overdraft (which has just occured to me that I haven't included it in our SOA - doh!), I just feel like we are wading in quicksand. There will be bills not paid this week because there just isn't enough money in the pot.
  I need my OH to come on board big time, I know we can do this but it isn't going to be easy.
• Thank you Beat the Dept, I think CCCS is the way forward for us.
• Hi whatever you decide is a better way forward than how you are now. You have to decide what is right for you but for me i resisted a dmp then when i did it life became easier its still hard watching everything but my debt is only going one way and thats down . Good luck you have done the hard part x
• mmm that's the thing deep down I know a dmp would be better/easier but I don't know it just seems so frustrating...aaaarrrggghhhhh.
  We will investigate CCCCs further tomorrow.xx
• baby steps just take each day as it comes. It will get easier. x
• Right have made a start on some money saving.......
  1/ Have placed an advert in local paper this week selling some furniture we don't need.
  2/ I am going to have my first NSD. (one of many more!!)
  3/ Have sorted out some stuff for ebay, all new with tags which will make ideal presents.
  4/ and I've got homemade soup for lunch at work.
  Feeling a lot more positive today, still haven't sorted bank account out but will get onto that sooner than later.xx
• Ring the council, they may be able to change the date your payment comes out. My OH changed his job and the DD date was the 14th - he got paid on 15th. I called the CT dept and they changed it to 21st, they said I could have had 1st, 14th, 21st or 28th.
  Worth a try.
• Hi Alice, welcome to MSE and congratulations on your LBM.
  Well done for doing the SOA, it's really hard and horrendous when you first see it all in black & white but it makes it real and you know what you've to deal with ....
  I had huge debts and am finally (recently) DF after many many long years of struggling and robbing Peter to pay Paul. I did it myself - I wasn't aware of the debt charities (and they certainly weren't as well known about) and so wish I'd known about them to help deal with horrible creditors. Good luck with calling.
  I hope you don't mind but I've a couple of suggestions on your SOA - although if you go down the debt charity route, they will be certain amounts you're allowed to put down - in case you don't they might help / if you do as it may help save a bit off the amounts you're allowed to help with other things a bit. (Sorry if you've already posted the SOA and received comments)
  Sky - not an essential (sorry) but it needs to go. You can get a FreeSat card for a one off payment of Ј25 and a good range of channels
  Mobiles - when do the contracts end? Switch to PAYG & use for emergencies only
  Groceries - you should be able to cut at least Ј100 off this. Pop over to the Old Style board and try the grocery challenge. Load of friendly people, great advice & support and fantastic recipes. As an starting point, there are families of 4 who get by on Ј220/month (incl household products, nappies etc & toilettries)
  Car: Fuel - are these all essential journeys? Shop around when insurance renewal is due.
  Join in some of the challenges - they're great for providing support and picking up loads of tips. I mentioned the grocery one above but there's load of others (incl a NSD one!) so have a hunt around and see what you fancy!
  Wishing you all the best - I'll pop back and see how you're getting on if you don't mind!
• Alice welcome, I hvae started my journey this month as well, not quite in the situation you are but want to let you know there is loads of support on here and things can only move forward now you have had your LBM. I am subscribing to see how you get on and give some positive support when you need it
• Thank you rising from the ashes and syl484, suddenly I don't feel quite so alone.
  Your are totally right Sky has got to go.
  Our petrol costs are not as easy to reduce, but on a good note the work mate my OH gives a lift to is going to give him Ј10 per week which will help.
  Mobile contract - we are all tied in the next 12months plus, but we have found a few old mobiles to cash in.
  I've taken a closer look at the Old Style Board and got some great tips/suggestions, the one thing I struggle with is packed lunches, we have 5 to do everyday and my oldest sons are very sporty and can eat you out of house and home at the best of times!!
  Let's see if I can have another NSD tomorrow.xx
• Well that went well with the bank....................not. As I expected no increase on overdraft (which in a way is a good thing).
  The gas/elec won't be paid today.
  I have cancelled the DD for the B/Card loan and car loan that were due to come out tomorrow so we won't be charged Ј35 fee by the bank for being unable to pay them. I can pay them over the phone, one tomorrow (which will still be on time) and one on Monday, that will leave enough money out of my OH wages tomorrow for petrol, childminder, mobile phone bill and bread, milk and cat food.
  Don't want to wish the next few weeks away but can't wait for the end of the month when I am paid so we can put our new budget into place properly and really start sorting our finances out.
  and I've had another NSD!!!
• Hi Alice,
  Welcome to diary world!
  Well done for having your LBM and focusing on your debt free journey. May be daunting to start with, but it does get easier and slightly obsessive! You'll soon have a spreadsheet and will snowballing in no time
  On the note about food, take a look at theresourcefulcook.co.uk There are meal plans on there and then you can print off the shopping list for that meal planner! I think it's amazing!
  Once you've got a staple list of meals it'll be a lot easier.
  Good luck with everything. Don't forget, we've all been there..... I still am!
• Hi i phoned sky and asked to leave and got 6 mths free then rang up after that period and got reduced rate?x
• Thank you GreenSaints for your suggestions, I'll certainly have a look at that website. I think the food bill is one thing we can certainly make savings on.
  and yes I can see it can become obsessive, day 4 of my diary and I'm hooked!!
  Beat the Dept how spooky is this, my husband came home tonight a told me a guy he works with has just done the same thing with Sky, so will certainly give it a try tomorrow. Thank you.
  Oh well better go and have my steamy hot date with the ironing board.x