Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Would value some advice please

25 replies

Terrynotmerry · 07/02/2021 21:08

I really didn’t think that I would be in this position at the grand old age of almost 47 but here I am. Apologies for the long post but I am hoping it will be therapeutic!

To say that things have gone pear shaped for us (wife and I) over the last 5 years would be a massive understatement but the time has come for me to do what I can to get back to a more secure position.
In 2016 we were both working full time. I was a headteacher in a secondary school and my wife a full-time primary school teacher. We have two children who are both still at school. Things were comfortable and we had a fairly decent life. We were both prone to running up our credit cards a bit but nothing that was ever unmanageable and we also had car finance etc. We probably owed about 20K at that point but on a joint salary of about £115k is was all good.

We had long dreamed of starting our own business. We had a plan and had spent years discussing and dreaming about it. In 2016 we inherited 20k and decided to take the plunge. The nature of the business is quite specific so I am not going to go into details on here out of fear of being identified. At the start it went well and we were quickly almost matching our previous income, however a set of circumstances and some bad luck quickly plotted against us and things started to slide. Our income started to plummet and we were working harder and harder for less and less reward. We were both committed and tried to weather the storm, however things went from bad to worse and we had to cease trading in 2019.

For almost 3 years we had plugged to gap with credit cards, loans and overdrafts. It was a case of pure desperation, along with an unwillingness to admit that we were flogging a dead horse. By the end of it I had about 65K of personal debt and I estimate that my wife had around 25k.

The strain of what happened almost destroyed us and we separated for 5 months at the end of 2019. It felt like a bereavement and were basically punishing each other for what had happened, playing the blame game etc. Both of us suffered in terms of our mental health and my wife is still medication. At the start of the 2020 lockdown we realised that we both wanted to give our marriage another go and moved back in together.

I have managed to get a job as a deputy headteacher in a secondary school. I might not be the Headteacher anymore but it’s a well-paid job (70k) and I feel fortunate. My wife has also returned to full time teaching. Things are still very difficult and we are waiting to start a course of marriage guidance. My wife refuses to talk about the finances and currently our finances are totally separate. We both pay money into a joint account for our mortgage and utilities, but apart from that there is no collaboration. I have tried to raise this many times as I want us to tackle our debts together, but at the moment this isn’t going to happen.
I have managed to pay my debts down a little to just under 55K. I estimate that my wife still has around 25K BUT she has just inherited just under 26K so I suppose she is ‘debt neutral’. I have no access to this money and it’s been made clear that she isn’t willing to enter into any discussions about how it used. I will tackle this during our counselling sessions, but for now I have to just focus on what I can do, i.e. paying my own debts down.

I will do the full SOA soon, but in a nutshell, I take home around £3550 per month. I pay £700 into our joint account for my share of the mortgage and bills. I have non-debt related direct debits – phone, insurance for £300 and I tend to pay for most of our food at about £300 a month. My minimum debt payments are £1100 and I pay £225 a month for my car lease, which leaves me with about £925 that I can use as additional payments. I have been trying to use as much of this as I can to reduce some of the debt.

I would welcome any support and advice from anyone who has been in this situation. I would ask that you don’t simply recommend that my wife and I work collaboratively on our finances – I know that would be the best option and it is certainly my preference. At the moment I just need to do what I can do without adding any further pressure to our marriage. I am hoping that our counselling will help with this.

OP posts:
boredwiththeoldname · 07/02/2021 21:22

Is your car leased or HP?

saleorbouy · 07/02/2021 21:33

If your wife manages to get debt free would she perhaps pay the food bills or split it. This would free up extra cash. Would you be able to derive additional income over the summer holidays, perhaps private tuition to increase payments off the loans?
Good luck getting everything back on track.

Terrynotmerry · 07/02/2021 22:25

@saleorbouy

If your wife manages to get debt free would she perhaps pay the food bills or split it. This would free up extra cash. Would you be able to derive additional income over the summer holidays, perhaps private tuition to increase payments off the loans? Good luck getting everything back on track.
Hi, It's leased. I have 2 years left.
OP posts:
MiddleClassMother · 07/02/2021 22:40

How much is the lease and are you more than half way through it; if so you can return it and buy yourself a cheaper car, this will free up a lot of cash, we're there no headteacher jobs available, or was taking time out of teaching detrimental to your career?

mdh2020 · 07/02/2021 22:40

You need to get debt counselling. There are charities that will advise and help you make arrangements . Please contact them and take advice.

JetBlackSteed · 07/02/2021 22:42

I assume you want her inheritance to pay off your debts, or at least a share of it?
If i were your wife, and you don't say who instigated your split, I would probably keep it to myself and pay off my own debts given that you've already split once and are looking at counselling.
You are probably earning more now, as before, being head \ deputy head?
Did she feel pressured to give up work and start the business? Was it her dream or yours?

JetBlackSteed · 07/02/2021 22:43

Reading that back, it sounds harsher than I intended.
You would have lots of opportunity now to sell yourselves as online tutors now to earn extra?

RosesAndHellebores · 07/02/2021 22:54

Break down the £300 on phone and insurance for me please. Also please explain the logic of taking a car lease for £225pcm for I assume 48 months when you were racking up debt. If there are two adults and two dc in the family please explain £300 on food and confirm if this includes cleaning stuffs/toiletries.

You say you have £925 after commitments for further debt payments but there is no budget for: travel to work, lunch, etc. Who buys the DC's clothes, pays for household repairs, birthday presents, Christmas, etc?

Also, when I earnt £65k, I cleared £3550 and contributed to a public sector pension so if you are on £70k your take home feels light by about £200 pcm.

AnotherDelphinium · 07/02/2021 22:54

Head to YNAB, it’s free for 34 days and is a really good way to get on top of your budget and find every penny you can to throw at those debts.

If your wife does resent being pushed into the dream and now is struggling in debt from it, giving her a ready-made budget showing how you are doing it and your plans to pay off the £55k, could create a lot of goodwill.

Then head over to mseforums as that has much better advice on money saving and paying down debts.

windybay · 07/02/2021 23:01

Paying £925 a month above minimum just isn't enough. Even if you were on 0% interest, it would still take years to repay.

You have to treat this debt as an emergency and paying it off your priority.

  1. Can you increase your income? Hopefully you're already applying for head teacher roles? Are there roles in parts of the country that have a cheaper cost of living? Are there roles in schools that come with accomodation?
Have you looked at a second job for weekends, evenings and school holidays? Even a part time NMW job will cut substantial time off your debt repayment. Can you get a lodger? Rent out a car space/ garage? Offer tutoring outside of school hours?
  1. How can you generate extra cash to throw at this debt NOW? What do you have that you can return (Christmas gifts?). What possessions can you sell?
  1. With this amount of debt you have to look at your mortgage. How much equity do you have? If you've got a lot of equity, can you refinance and include the $55k at a lower mortgage interest rate? If not much equity you're going to have to consider downsizing or relocating to a cheaper area (links with point 1)
  1. The car lease - can you get out of it? Do you have two cars? Can you manage without a car or get a cheap run around that you buy in cash?
  1. The SOA is crucial - what are you paying for each month? Line by line. What can you cull? You need to be really ruthless here. "But it's only £10 a month" doesn't stand when you have this much debt to get out of.
  1. How is your debt structured? What interest rates are you paying on which balances? Which debt are you throwing the £925 a month against?
Terrynotmerry · 07/02/2021 23:29

@MiddleClassMother

How much is the lease and are you more than half way through it; if so you can return it and buy yourself a cheaper car, this will free up a lot of cash, we're there no headteacher jobs available, or was taking time out of teaching detrimental to your career?
I am exploring my options with the car lease. Having some time out of teaching was a bit of a setback. Some trusts are sceptical about why you took a break.
OP posts:
Terrynotmerry · 07/02/2021 23:30

@JetBlackSteed

I assume you want her inheritance to pay off your debts, or at least a share of it? If i were your wife, and you don't say who instigated your split, I would probably keep it to myself and pay off my own debts given that you've already split once and are looking at counselling. You are probably earning more now, as before, being head \ deputy head? Did she feel pressured to give up work and start the business? Was it her dream or yours?
I have spoken to stepchange and they have advised that I have a decent disposable income there isn't a need for me to enter any formal debt management plan. I just need to budget and pay it off.
OP posts:
Terrynotmerry · 07/02/2021 23:36

@windybay

Paying £925 a month above minimum just isn't enough. Even if you were on 0% interest, it would still take years to repay.

You have to treat this debt as an emergency and paying it off your priority.

  1. Can you increase your income? Hopefully you're already applying for head teacher roles? Are there roles in parts of the country that have a cheaper cost of living? Are there roles in schools that come with accomodation?
Have you looked at a second job for weekends, evenings and school holidays? Even a part time NMW job will cut substantial time off your debt repayment. Can you get a lodger? Rent out a car space/ garage? Offer tutoring outside of school hours?
  1. How can you generate extra cash to throw at this debt NOW? What do you have that you can return (Christmas gifts?). What possessions can you sell?
  1. With this amount of debt you have to look at your mortgage. How much equity do you have? If you've got a lot of equity, can you refinance and include the $55k at a lower mortgage interest rate? If not much equity you're going to have to consider downsizing or relocating to a cheaper area (links with point 1)
  1. The car lease - can you get out of it? Do you have two cars? Can you manage without a car or get a cheap run around that you buy in cash?
  1. The SOA is crucial - what are you paying for each month? Line by line. What can you cull? You need to be really ruthless here. "But it's only £10 a month" doesn't stand when you have this much debt to get out of.
  1. How is your debt structured? What interest rates are you paying on which balances? Which debt are you throwing the £925 a month against?
Hi,

If the debt was all 0% ( it isn't all 0% but a lot of it is) and I was paying an additional £925 then I would be clear of my debts in 2,5 years which would be amaxing. Based on my current interest rates I am looking at about 4 years which is not great, but doable.

I am definitely not prepared to remoretgage and put the house at risk. Our mortgage is the only thing that we haven't messed up. Thank god we didnt remortgage when the business started to crumble.

We need two cars as we work in very different locations but I am making enquiries regarding getting out of the lease. I am happy to have a cheap runaround.

The bulk of my debts is at rates between 0-8% with a couple of nasty rates on two credit cards. I am prioritising these with my overpayments. I will do a SOA this week.

not currently applying for headteacher jobs. I am happy at work at the moment and it's been good for my mental health. Not prepared to risk that at the moment.

OP posts:
Terrynotmerry · 07/02/2021 23:39

@JetBlackSteed

I assume you want her inheritance to pay off your debts, or at least a share of it? If i were your wife, and you don't say who instigated your split, I would probably keep it to myself and pay off my own debts given that you've already split once and are looking at counselling. You are probably earning more now, as before, being head \ deputy head? Did she feel pressured to give up work and start the business? Was it her dream or yours?
Hi,

I do hope that she uses it to pay the debts in her name but ultimately it's her choice. It was very much a joint dream and to be honest, she was the one that really encouraged me to go for it. It was a joint venture though and we would both agree with that.

OP posts:
Terrynotmerry · 07/02/2021 23:46

@RosesAndHellebores

Break down the £300 on phone and insurance for me please. Also please explain the logic of taking a car lease for £225pcm for I assume 48 months when you were racking up debt. If there are two adults and two dc in the family please explain £300 on food and confirm if this includes cleaning stuffs/toiletries.

You say you have £925 after commitments for further debt payments but there is no budget for: travel to work, lunch, etc. Who buys the DC's clothes, pays for household repairs, birthday presents, Christmas, etc?

Also, when I earnt £65k, I cleared £3550 and contributed to a public sector pension so if you are on £70k your take home feels light by about £200 pcm.

HI,

The £300 is for all of my non debt related DD;s so phone bills ( 2 phones £60) , life insurance (£47), Diesel ( 100), union fees ( £25), contact lenses (30), car insurance (38)

The £300 for food includes everything - is this really excessive? I thought we were doing quite well with this.

My diesel is included in the £300 and I generally take a packed lunch otherwise it's a school dinner! You're right about the kids clothes although I must admit my wife does pay for those as she reckons I haven;t got a clue when it comes to dress sense!

Birthday and Christmas presents would have to come out of the 925 too alghouth I have no idea how much as this has been an area of massive overspending in the past.

I pay 11.3% pention and my tax code is slightly amended as I owe a bit of tax

OP posts:
lighteincastlewindow · 08/02/2021 00:20

If she is earning now also and doesn't not have as much debt repayment, what does she earn and what are her outgoings?

Terrynotmerry · 08/02/2021 00:24

@lighteincastlewindow

If she is earning now also and doesn't not have as much debt repayment, what does she earn and what are her outgoings?
She earns aroun 40K. I am unsure of all of her outgoings but I estimate that she has between £700-£800 'left over' when everything is paid out.
OP posts:
bebarkered · 08/02/2021 01:12

Hi Terrynotmerry
I don't know if you would be interested, or, if you qualify, but, have you considered an IVA?

RosesAndHellebores · 08/02/2021 11:50

£300 for food is very low imo.

£60 for phones is high
The union sub needs to go
If you are a teacher I assume you are in the TPS so why the need for additional life insurance?
Birthday and Christmas I reckon you need to save £100pcm.
And you owe tax!
I am afraid I can sort of see why your partner is ringfencing her cash to her debt.

How much is your house worth and is moving a possibility?

Agree with others that some additional tutoring is a good idea - it's £30ph in London - don't know about elsewhere?
Why did you rack up £65k compared to your oartner's £25k?

It sounds a shocking mess but sadly there does seem to be a lot of mismanagement too. Others will have more info re debt management than I.

Terrynotmerry · 08/02/2021 13:37

@bebarkered

Hi Terrynotmerry I don't know if you would be interested, or, if you qualify, but, have you considered an IVA?
Hi I wouldn't qualify as despite the debt being high, I do have enough to make the payments, plus overpayments
OP posts:
Terrynotmerry · 08/02/2021 13:41

@RosesAndHellebores

£300 for food is very low imo. £60 for phones is high The union sub needs to go If you are a teacher I assume you are in the TPS so why the need for additional life insurance? Birthday and Christmas I reckon you need to save £100pcm. And you owe tax! I am afraid I can sort of see why your partner is ringfencing her cash to her debt. How much is your house worth and is moving a possibility? Agree with others that some additional tutoring is a good idea - it's £30ph in London - don't know about elsewhere? Why did you rack up £65k compared to your oartner's £25k?

It sounds a shocking mess but sadly there does seem to be a lot of mismanagement too. Others will have more info re debt management than I.

Hi, thanks for posting. The union subs are quite important as I would need union support if I was involved in a an allegation at work etc. The life insurance is in place to cover our mortgage if one of us dies or is critically ill. I only actually ower £300 in tax now so it will be sorted very shortly.

I am definitely interested in doing some tutoring.

When we were racking up the debt it was very much a joint effort! The only reason I have more than her is that I had more credit available which we used to stay afloat.

I know that we have mismanaged things but I can only look forwards now.

OP posts:
RosesAndHellebores · 08/02/2021 15:52

There is no obligation to be a union member. Does your household insurance cover you for legal advice?

TPS provides 4 x salary in the event of death and has a good ill health early retirement facility. Can you reduce the life insurance by just having critical illness cover?
Car needs to go as soon as possible.

Terrynotmerry · 08/02/2021 16:31

@RosesAndHellebores

There is no obligation to be a union member. Does your household insurance cover you for legal advice?

TPS provides 4 x salary in the event of death and has a good ill health early retirement facility. Can you reduce the life insurance by just having critical illness cover?
Car needs to go as soon as possible.

You're right, there is no obligation to be a union member but as a teacher I would feel very uncomfortable being a position where I needed support but it wasn't there.

I think that life insurance is important - My death in service pension would cover the mortgage and debts but it's important to me to know that I would leave my wife and kids properly provided for

OP posts:
StarsonaString · 08/02/2021 21:57

@RosesAndHellebores

There is no obligation to be a union member. Does your household insurance cover you for legal advice?

TPS provides 4 x salary in the event of death and has a good ill health early retirement facility. Can you reduce the life insurance by just having critical illness cover?
Car needs to go as soon as possible.

This is stupid advice for anyone working in the UK education system. The union fees are a must have.

Can you shop around on insurance? Is the life joint with your wife? Have you taken advantage of the union affiliate deals?

I think additional income is your best bet here. Agree exploring opportunities for a lodger, private tutoring, summer work, selling resources on TES, consultancy etc. Any work going with exam boards this year?

RosesAndHellebores · 08/02/2021 23:02

I disagree with it being stupid advice. Employment law will prevail.

New posts on this thread. Refresh page
Swipe left for the next trending thread