45K in debt

[UsedToLoveMorrissey]

Hello, i think i just need to get this off my chest.

We are £45k in debt. All unsecured, and no access to anymore credit and all in husband's name.

I don't work. I used to do well on-line and at craft fairs but that has taken a huge hit and I don't do fairs anymore as they are not worth it now where we live. I am learning to drive so I can get a job within school hours (we live in the middle of nowhere, 5 buses a day, if they bother to show up and times don't suit to get back for DS).

DH has a good job, but we live in Scotland and I think the rate has changed or the pension contributions have because DH is less £70 a month now. I cried when I saw this this morning.

We can make the payments but any spending above our food/petrol/school lunches etc and we end up in our overdraft so by christmas, we are £2k down. My craft sales at xmas pay this off thankfully, and pays for presents but the rest of the year is rubbish. I sell on Etsy so I dont have a website to upkeep, just the cost of listing each item and a small % in commission.

DS has a good job, but with less than £3k a month coming in, and £900 of to go purely on CC and Loans repayments, excluding mortgage and car (which DH needs because of where we live) we are struggling. Our food bill is approx £100 per month. That includes 1 bottle of wine. No smokes. I have coeliac disease so my bread is a bit dearer, but that's only one loaf a week. One pack of GF biscuits, no other biscuits and very little crap.

I'm not a good cook, we eat basic meals that I do cook from scratch. We eat meat once a week (either chicken or mince beef), we eat mostly salads with tuna/roasted veg and rice/baked pots/soups. We don't eat takeways (we live too far our for delivery). I get the shopping delivered from Asda as that works out at about 40p per week with the mid week saver. We go through about 20 eggs a week (DS and DH love them). Sliced Egg on toast is a favourite weekend lunch.

We eat a lot of fruit, which we do buy from M&S as that is so nice. I have found the delivered fruit to be poor quaility.

If I really try, I am sure we could shave about £10 of the shopping. But really, I cant see anywhere else to make the saving.

The issue somes to this: because we are making the payments, we've not missed one, the Debt website Step Change, are recommending a cut in spending accross the board but no debt advice as such because we can repay.

Also, DH has a job which he would lose if he was made bankrupt. We'd love the debt to be paid off, but we have no extra income, and we'd be out on the streets if were chose a debt soloution as we have no savings to get us through DS losing his job.

I'm prepared to accept the advice that we simply have to accept the situation, we can pay the debt, we have a house and food, but we have nothing else. Any clothes, hair cuts, days out takes us further in debt. It's getting us down and we are snipping at each other too. I'm probably about 6mth away from passing my driving test, and will be reliant on getting a part time job to help out. Until then, I'll keep doing surveys. Being a lurker on here, I have recently changed the CC repayments to a set amount, so that should reduce the balance so much quicker. Thank you t the poster who mentioned this trick.

Sorry for the moan. I know we are to a certain extent luckier than so many people but for 2 very unflashy, unshowy people, we sure have wracked up too much debt through poor choices years ago.

you put your percentages in without hitting the percentage button .... I've put the sheet right for you

Thank you, but I’m ok. I was just curious as to what the difference was between a standing order and direct debit.

Why is there a difference in the impact made in the debt? Is it not just a different way of doing the same thing?

Thank you though for taking time to explain and for putting things right so could use it if need by. 😊

Why is saying to get a job lala land?

Been reading this thread with interest, as someone with credit card debts I shouldn’t really have...

But I just wanted to flag up ppi again. I didn’t look at this for ages. Ppi? By me I thought, I never asked for it and in many cases I declined it! No, not me!

But - things like credit and store cards are often packaged with it and not made obvious.

The thing stopping me was always - I don’t have any paperwork!

What I didn’t realise is that many banks and financial companies have a free ppi checker system which only requires basic address and name details.

So say you have had credit cards for many years with mbna. Go to their website and they, like many other banks, will have a ppi check form. It takes about 5 mins to complete and you don’t need to provide any account numbers etc. They cross check you name and old addresses with their database and will write to you if any policies contained ppi.

Seriously, everyone needs to do this. I ‘never had ppi’ but got back 4.5k from a high street bank on an old loan and several hundred more on the back of old credit exit card accounts.

It is so easy - you really don’t - I repeat don’t - need to use a ppi company!!!

tiesan
when the card company takes a direct debit, you pay the same proportion of the debt every month
eg 5%
so it takes over 20 years to clear
if you move to a standing order - the same amount you afforded this month
you overpay by a little bit each month
and that little bit grows and grows
till the debt clears in less than 4 years

patsys
the OP lives in a rural area, does not drive, has anxiety issues and a child ...
on the other hand she is nowhere near broke
just saddled with a sodding great debt (as are many "rich" people)

once she has a car, the job stuff will fall into place

Heyduggeesflipflop Do you have a link to the MBNA site that asks you for the basic details for this? Thanks!

TalkinPeece

But if your monthly outgoings are similar every month.
You work out you can afford to repay 5% of that figure a month.
I can’t see how a standing order changes what you can afford. Yes it may allow you to change the amount you repay on a monthly basis but it doesn’t actually change what you can afford, does it?

Hey; thank you for that it’s prompted me to go on all the banks website and fill in the ppl claim forms..I can’t remember any account numbers so I’m not hopeful but you never know!

I’ve worked with personal debt issues for many years, on the formal insolvency end of things.

You’ve been given really good advice here, such as cutting out the unnecessary expenditure at M&S and on media subscriptions and of course the lottery.

You’ve mentioned the debt is in your husband’s name - whatever you do don’t consolidate it in joint names or take out debt in your own name to consolidate any of the debt. In the long run this could land you in more of a bad situation than you were before. I know your mentioned your husband can’t pursue bankruptcy because of his job but things change. It might be worth him approaching his employer to see if this is an absolute rule, as often they’re just annoyed you didn’t tell them.

Also bear in mind that when you go bankrupt it’s not as simple as hey ho off we go the debt is gone and we walk away - you have to contribute towards the bankruptcy estate by way of monthly payments (Income Payments Agreement) for three years and they are pretty brutal with what they will and won’t allow. No Sky packages for starters! It would most probably be more than you’re paying at the moment per month. And then there’s the family home to be dealt with, they will want his share of the equity. The bankrupt person cannot deal with their own assets so a third party has to buy out their interest if you don’t want to sell. If the car is on HP that would probably go aswell or they wouldn’t allow you for the payments for it if you could keep it.

Overpaying your debts as has been suggested is a great idea, dealing with smallest first then adding that money to. Use a budget calculator to help you work out what the average spend is for day to day things and stick to it - allow yourself a decent amount for emergencies though (from 850/month spare is loads you should be able to build a little fund) as that is where most budgets go wrong/fail.

Good luck with it all.

highhorse
you are missing the point.
If the credit card bill was 88.47 this month
make it 88.47 every month - as you managed it this month
so you can manage it next month
and every other month
rather than 88.13 next month

Seriously all you need to do is refix your mortgage onto a lower rate. You can normally do this online with either no fee or a fee that you add to the mortgage. Which is still normally more cost effective. No affordability check required. Do it now log on ypu could save loads.

Little pill - regards ppi, just google (your bank) ppi check. It will take you to the page where you need to fill a quick enquiry form in - most banks seem to have them.

If you combine it with finding out which banks you have active and closed financial accounts with (I use noddle) it gives you a useful list to work through to cover off anyone you have ever dealt with.

Or put another way half hours work of filling out enquiry forms with lenders can quite quickly pay off. Simply ‘ fish’ for accounts showing ppi and then use the mse website revolver tool to submit an electronic complaint.

And I was one of those smug ‘I wouldn’t have ever had ppi I’m wise to banking tricks’ types...

tiesan
when the card company takes a direct debit, you pay the same proportion of the debt every month
eg 5%
so it takes over 20 years to clear
if you move to a standing order - the same amount you afforded this month
you overpay by a little bit each month
and that little bit grows and grows
till the debt clears in less than 4 years

Got it now Thank you. Where I live I pay off the same amount every month. Sometimes its more than the balance, sometimes its not. I thought it was a DD like what I have set up for bills I pay in the Uk. But interestingly its not, I just checked my banking app and its called a standing instruction. In fact all of the payments I make here at home are called standing instructions. I hadn't noticed before.

What or who does the rich bitch refer too. If its me then do one... anyone whose mortgage has gone up £200 and therefore can potentially save £200 by getting a better rate would be stupid to consider buying cheaper apples to save money....

Sorry to hear about your situation.

How about renting out the spare room? I know it's a rural area you live in, but a car share with DH might help? That'll be a decent income to help with the issue and build up repayment quickly

Thank you @Heyduggeesflipflop, I've just been filling out PPI enquiry forms, fingers crossed I was one of those people who was missold it!

Twinkledag - a pleasure, good luck!

TalkinPeece, she does live in a rural area, but her husband drives to work, presumably in an area with other employment opportunities. There might be buses or other people to car share with. If there is no employment in the immediate area then everyone in the village will be going somewhere else in the morning and coming back home in the evening. Her child is in the last year of primary school. He too is likely to be traveling to the nearest town for secondary school each day.

Obviously all the stuff you are suggesting is brilliant and no doubt you know what you're talking about, but to say that getting a job is like lala land seems to me quite negative. A job would be a huge advantage to both her income and her isolation and the barriers don't seem to be insurmountable. Sometimes it is about having the confidence and the impetus to put yourself forward.

Once she has a driving licence she will get a job
until she has wheels in a rural area, its la la land

city dwellers with more than one bus a day have no effing idea

1. May be cycle to the nearest village pub or village shop to work at weekends full time when husband not working.
2. Try peopeperhour website and similar ones like taskrabbit - there may be jobs you can do from home for money.
3. You moved for more space so move the child/children into your bed room and rent out their room.

Try to see if you can get a different mortgage deal eg over 30 years rather than 25.

To clear the rural thing up - small village. Country road, a few minutes drive out, is tiny 'estate' with our wee houses. So, a few minutes drive to village/bus stop, about 10 to walk as I do most days when I have orders to post. 5 buses out of the village a day, 5 in. Times are not ideal for part time work and being there for DS. But as he starts secondary after the summer, that will change and I will have so much more options regarding work whether or not I get my driving licence. I HAVE looked at the sites recommended here for jobs and I started my CV. Something I've not had to do for over 20 years, starting from scratch really, I have seen a 2 posts which I am planning to apply for once i get my CV done (tomorrow) all part time and fingers crossed all in the mornings (for now). I am not naive enough to think I'll get a job 1st time trying, but it's a start.

I've applied for the remortgage online tonight - we;ll know in 5 days if it gets approved. Sent forms to MBNA and Santander. I'm pretty sure we didnt have PPI but it is definetly worth them looking at. And the forms are on their own website, very very easy to complete and costs nothing.

Didn;t see the rich bitch comment but as I personally bring in less than £3k a year, it certainly isn't me. Debt can accumulate in many forms, and ours started with making a stupid house purchase with northern rock at their 120% rate, 2 redundancies during which time we whacked everying on the CCs, though thankfully DH got another post relatively quickly, and no equity when we sold, for a slightly bigger house with a marginally bigger mortage, still paying the NRAM unsecured loan for that original house purchase and will do for about another 12 years. And yes, we've been stupid when the CC limits went up, we spent a bit more on a few days out/things for the new house. Can't that now that they are lowering the limit

We are facing our debt, trying to work on every way possible to get it reduced and paid off, be it lower mortgage rates or cheaper apples. The job situation for me is being looked at and worked on. The driving will open up so much oppotunites. I started driving about 6 months ago. Probably another 6 to go.

Well done OP, you have had a busy weekend!

Good luck with your CV and job applications. Do you have someone who can look over your CV? If not, I'm sure there are lots of good examples online. I think it would also be useful to casually tell friends you are looking for work and ask them to keep an eye out for you. You don't need to explain your circumstances, in fact it is perfect because you can say that since DS is going to high school you've a few more options and want to get out of the house. Those kind of jobs in the village shop are quite likely not to be really advertised, at least not online. You could try to find out what other people in the village do too - there will probably be some small business owners in there.

Well done OP 👍