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Original poster

Can we have a support thread for people who are massively in debt?

999 replies

Nerfmother · 16/01/2014 18:46

Because you can't talk about it in real life? We owe 44k, reduced from 60k in a year. Not including mortgage.
It's so depressing.
Dh is determined to pay it off and so bankruptcy or plans isn't an option. I do think its doable, just hard hard hard.

OP posts:
TooTiredToBeWitty · 14/02/2014 20:34

This reply has been withdrawn

Withdrawn at poster's request.

Mum2Fergus · 15/02/2014 08:24

Morning all...how we all doing?! Almost at the end of another frugal week Smile have a few bits to buy today but confident I will have decent underspend on the food budget which I'll put towards CC1.Think I will manage to payday without any more petrol so that envelope will have £9 odd left in it which I'll also ping over to debt...

Puffer123 · 15/02/2014 08:39

Time is money, count the pennies...
These have now really sunk home, seeing the 8.5k and 33k amounts refunded/ saved above. Never thought it could be that worth it to spend proper time doing budgets and checking things! Feeling very inspired yet again. You are cool.

Original poster
Nerfmother · 15/02/2014 09:22

Morning. Well done all, halfway through another month Smile
Have managed an okay start to the holidays, 15 quid yesterday for four hours entertainment and food, today have to get a birthday present but not expensive.
So excited about reducing the overdraft Monday, am going to go in to save the phone callSmile

OP posts:
kazzawazzawoo · 15/02/2014 15:34

We are still not in a position to pay anything off, as dh still out of work, but have shopped at Aldi for past two weeks, spending an average of £55 a week for 4 of us and only about £10 top up for bread, milk etc a week. Really pleased with that. Also sold lots of bits and bobs and made approx £200. Needed to declutter anyway, as we have decided to sell the house to ease the pressure, so will be having a good old clear out.

TalkinPeace · 15/02/2014 15:43

kazza
have you locked your repayment amounts ... as that way you WILL be starting to clock through the debt
and yes, decluttering becomes deeply satisfying (we did it before building work as we lived in 2 rooms for 6 months)

kazzawazzawoo · 15/02/2014 16:23

Thanks Smile we have agreed minimum aments at present with no interest and no charges, as we have no money left over for payments at the moment.

Original poster
Nerfmother · 15/02/2014 20:06

Kazza, you're not adding to the debt. That's better than feeling hopeless and doing nothing. Things change - say in two years, with your current attitude, I can only think you will be better placed. Selling the house, wow.

OP posts:
kazzawazzawoo · 15/02/2014 20:53

Thanks Nerf Smile We have decided to sell the house, as we cannot pay the mortgage and it will take the pressure off us until my dh finds a job. Hopefully we will be able to pay off at least some of our debt with the proceeds.

I am very proud of how thrifty I've become. I am so careful what I spend now. But I really hope this nightmare ends soon and I can start to make some real progress. Smile

TalkinPeace · 15/02/2014 21:08

kazza
if you sell the house and release any equity, please learn from one of my really stupid mistakes ...

when DH and I sold our first house we had £15000 after all costs
we then rented a really cheap house and bought our dream car for £5000
but basically drank and ate the rest
such that when we went to buy another house a couple of years later we had to grovel to parents for a deposit
bad move

kazzawazzawoo · 15/02/2014 21:14

Don't worry Talkin, I'll need the proceeds to pay off our debt and/or to pay 6 months' rent up front, as we're not earning enough to pay rent. The rest (if any!) we will save for a future mortgage when our credit eating is ok again in 6 years. Hmm

zebrafinch · 16/02/2014 10:14

When universal credit comes in, the child tax credit will be rolled into it and if you have savings even if for another house purchase in the future these savings will be treated as capital and you may not be eligible for universal credit which will mean you lose the child tax credit amounts .

zebrafinch · 16/02/2014 10:24

Google capital limit and universal credit
To check the limits on capital

Child tax credit is not currently means tested on capital , only on income . When universal credit comes in child tax credit will come under its umbrella and will be means tested on capital not just income.
So if you sell your house, pay off your debts but have capital left over you need to be aware of this if you have children and are currently claiming child tax credit.

Original poster
Nerfmother · 16/02/2014 10:26

That's useful thank you

OP posts:
zebrafinch · 16/02/2014 10:32

Kazza, capital left over from the house sale will also affect current benefits. Hopefully your DH will find a job soon but do investigate your benefit situation if you have capital and no job.

Neetalu · 16/02/2014 19:26

Hi Everyone

I'm new to this thread. I'm currently on mat leave and worried about budgeting whilst paying off debts and bills.

What's the envelope system? I saw it mentioned on a previous post but don't know what it is.

Thanks

Original poster
Nerfmother · 16/02/2014 20:50

Hi Neetalu, the envelope system is best explained by fergusmum, but I think it involves having separate budgets allocated (food, car, etc) and not going above that.

OP posts:
TalkinPeace · 16/02/2014 20:53

"when universal credit comes in"
its such a massive cockup, y'all will have cleared your debts before its fully operational

Mum2Fergus · 16/02/2014 21:52

Hi Neetalu,and welcome Smile

I've been using the 'envelopes' system for a couple of months now and it's working really well for me...I tallied up all my non house costs over the year (for example haircuts, health/medical, birthdays, car tax/breakdown) and divided by 12. I then set the amount aside in an online ac (I then track on a spreadsheet), but know people who have multiple acs,you can even use proper paper envelopes!

I put away £15 for health/medical, £100 for petrol and so on...I'm sure if you google it you will find a far better explanation lol

Have £42.20 left over from this weeks food bill but going to hang on to it this time. I've a 2 day business trip this week and have to pay all expenses upfront then claim them back,don't want to leave myself short. I should have just under £10 petrol budget left from this month too so will pay that to CC1 on payday (Thu)...

kazzawazzawoo · 16/02/2014 22:46

Thanks for the advice. Sadly we will have barely any capital after paying off our debt, maybe a couple of thousand at most. Anyway since I increased my hours to 3.5 days dh gets no benefits. We are waiting to hear about council tax help, but suspect we will get nothing Hmm

zebrafinch · 17/02/2014 05:32

All good wishes kazz on going forward
For those who will have capital left over in selling house and paying off debts and have children take a look at the Universal credit confused thread currently on money matters

Mum2Fergus · 17/02/2014 14:32

Unbelievable! Those of you who have followed my posts will know I have CC2 which is currently interest free. I've made 5 minimum monthly payments to it so far (all spare cash going to CC1)...just opened a letter from provider to say I am entitled to a limit review...they are only proposing to DOUBLE my limit!! I've declined...in disbelief.

Anyho, quiet day...few bits n bobs at shop...meal plan done for this week...blanching some veg to freeze and baking banana bread to use up some bananas.

Original poster
Nerfmother · 17/02/2014 19:16

Hi, terrible practice isn't it? Barclaycard have just offered me a card out the blue.
Terrible spendy day today; costume for ds3, bloody school club for ds2 and new printer as ours broke. I tried not to replace it but after weeks of dd upset cos she can't print off homework and the others wanting to print pictures etc for projects I gave in.
But, paid 400 off debt and if I use my 500 (say 100) of it to pay back what I put on the cc today, it should be ok.

OP posts:
pixiestix · 17/02/2014 19:36

Its so bad. I am constantly refusing offers and limit increases. I halved my HSBC limit last month, inspired by this thread, and it took three emails before they would actually agree to lower the limit. They were wheedling so bad that I actually started to doubt myself, and started thinking "Oh, what if I do need it in the future?" Nevermind that I wouldn't actually be able to afford the interest, let alone pay it all back.

pixiestix · 17/02/2014 19:41

Having a bit of a tricky week here, and have gone off the rails a little bit with spending. Nothing too bad, but we have had a few takeaway meals which we cut out completely in January, plus I have bought a few "luxuries" in the way of DVDs and colouring books for DD. I am so grumpy and tired and hugely pregnant, and DH is so overworked trying to finish bits off before the baby comes that neither of us have the will or the energy to cook and clean and entertain our toddler right now Sad I'm feeling guilty and sorry for her and then spending to overcompensate, and to save myself having to cook and do dishes. Now I have spent most of the money I had put aside for the rest of the month (£4.80 left) and am beating myself up about it. I think I might need to do a few days of soups made from leftover veg to feel like we are anywhere near redeeming ourselves. Cross with myself and my lack of willpower Sad