oh shhhhitttt we have been so stupid and are in usch a mess.....

[blushingm]

have just had a close look at our finances and realise we have been spending waaaaaaaaay beyond our means. Our income isn't covering the bills let alone our debts

DH had his hours at work cut and we have been £500 per month at least down for the last 3 months. Our credit cards are maxxed out.

I've called the mortgage co and they reduced our mortgage to interest only. I've reduced our mobiles down to the minimum line rental and my dad said he'd try and help us as much as possible

We owe £22k. My dad said he could put some of our credit cards transferred to his at 0% (£6.5k) until september and possibly a bit much - he's just started renting our his late dads house.

What I think I'm asking is it possible to actually live debt free and how long do yoou think it will take to get that way???

I would look at moneysavingexpert.com loads of people there paying off similar sized debts.

You need to look at compasrison websits to check you are paying the minimum

contents/building/car insurances etc. Have you got any subscriptions/memeberships you can stop?

Can you extend the term of your mortgage as well to reduce the monthly payments? IE increase from 20 to 30years.

Have a look here as well as MoneySavingExpert. You really need to throw yourself into it if you're going to get out of debt - but you can do it.

This is a useful introduction on how to use the Dealing With Debt board at the Fool if you decide to.

thanks I shopping around for home insurance and got the cheapest at £15 pm buildings&contents, i get car insurance through work and my dad pays that for our xmas pressie every year as it's due on 15th Dec

Don't have any subscriptions/memberships. Other DDs are gas ele c/tax pensions and income protections for dh phone plus bb, sky which i have reduced to minimum, estate mainenance charge (£36), no loans but £99 for my car (where we live & work we need a car)

Do you have sky/cable tv? if so cancel it.

Look on uswitch to see if you are with cheapest energy providers.

Ok, is that £99 a month for car rental? Because you would be better off stopping that and getting a cheap run-around.

Sky could go unless you are still in your tie-in period. Be ruthless. You can get a freeview box for about £10.

If you could increase your term, and shift your credit card debt onto your mortgage as a short-term measure, then you would be able to save some. Once you have overcome your difficulties, you can start overpaying.

Where do you do your food shopping? Try looking on moneysaving expert for a guide to subtle down-branding so you don't notice the change too much.

O2 are doing a simplicity contract which only has a 30 day notice period, and gives you 200 any-time, any-network minutes and 200 texts for £10 per month, including free o2-o2 calls.

I would say you have to make radical changes if you want to overcome this.

You really need to list out all of your outgoings (and income) to see where you can save. Not necessarily here but MSE has a great budget calculator. Remember you need to budget for yearly expenses - like Christmas - as well as monthly costs.

Use Lidl/Aldi/Netto for for half price fruit and veg, tinned beans, chickpeas etc, olive oil (we decant it into a spray bottle so you use less), fresh herbs, tuna, tinned tomatoes, noodles, free range eggs, cheese, milk, plain yogurt, frozen fish, free range chicken, dishwasher powder, washing up liquid, washing powder. Then we go to Asda for unrefined sugar, wholemeal flour, wholemeal pasta, brown rice, salt free pasatta, free range butter, porridge, shredded wheat, salt and sugar free muesli, free range butter, bread (you could make your own if you wanted to be really good), spices, bouillon powder and other stuff you can't get in Lidl/Aldi.

Keep all leftovers for lunch next day/to give dc for their dinner/freeze.

Each week look at what you have left before you go shopping again and meal plan. try to make the most of what you have and only buy the extra things you need to make the meals on the plan for the next week.

if you are inclined to buy takeaways when you can't be arsed to cook then cook things in bulk and then put into portions and freeze so you can reheat those instead of buying a takeaway or ready meal.

Eat more meat free meals. We do this to save money and what meat we do buy comes from the market.

Just in answer to your last point....YES it is possible to live debt free. We do it. We saved and saved, didn't have holidays, cut back on non-essentials etc. Just the common sense stuff really, but it meant we paid our mortgage off. Took a few years, but god it's worth it.

WE live debt free apart from our mortgage and overpay into our mortgage most months. We don't have a large income by any means but we save up for everything - loft room conversion £14k, we saved up for it. Need to do the bathroom & boiler, we're saving up for it.

sky we are tied in so i have put it down to the minimum package. Same with the phones - if we cancel the contract we have to keep paying so they are going to go down to the cheapest monthly tarrif

The £99 is car hp - we need a good car as dh works where there is absolutley nil public trasport and buses to my work are once every hour and a half if you're lucky plus dcs need to get to cm in the closest town as school is there

I work 2 jobs - 17 h/p/w for insurance co (hence discount on insurance) at twice a month as a courier - i'm thinking of poss getting an evening job or something too

I have started (from this week) shopping in Lidl and are planning to eat more basic filling meals ie stew casserole cottage pie etc. I always pick up stuff on bogof offers and freeze but i could be more frugal with the shopping. DD usually gets left overs the next day for her lunch at the cm. I'm gpimg to be brave now and lis all the dd's
Mortgage 795
council 87
estate 36
water 36
gas 50
ele 70
phone 40
mobilesx2 30
pensions 90
home ins 15
income pro40
child sav 14
life ins 45
car 99
denist 10
homecare 45
cards 650

i think thats all
childcare £350

Income
me £750
dh £1200 (was £1550 before hours chopped)
tax credits £420
c benefit £125

I would make an appointment with the citizens advice beaureau. They can give plenty of advice re debt.

Straight off would it be possible to cancel your landline at £40 pm if you have mobiles?

Ditto child savings,it is nice to save for them but if you are in a lot of debt it is more important to gfet shot of that in the long run

What is estate £36??

Canyou shop around for cheaper utilities and mtg protection etc?

estate is - we live on an ex mod property and the council won't adopt the pavements and communal areas etc so we have to pay towards the upkeep and the public liability insrance and stuff

land line has the broad band and i've checked with them and i'm tied in for another 14 months

childs savings could be suspended until we are more on an even keel - the income protection is the cheapest we could find - dh's job is classed under high risk

i'll try and get an appointment for when ds is in school with the cab

does this look reallt bad???

I think a lot of people are in similar positions,sadly

My dad though retired from his old job now works PT for CAB and he says that the last few months they have been snowed under by the amount of people facing debt issues

cancel child saving and possibly pensions (if possible) for the time being.

what good is it to put in saving where you are only get a tiny percentage. yet you have borrowed on credit cards with excess of 20%+ interest??

does that make sense?

cancel landline if you cant cancel mobile. you can always start them up again for free once you manage to cancel mobile contract and get payg sim cards.

and i'd cancel dentist plan for just now if you can. you need that extra £10 unless one of the family is going thru an ongoing treatment like braces. if all in good health just cancel and pay for check ups as and when you need them making sure everyone brushes well. and flosses and you can cross fingers no one needs anything.

Do they have a cheaper broadband package?I was on a middle tariff with mine and dropped it to lowest tarriff,there was a penalty fee initially but evening it out across yearit still worked out cheaper.I pay about £8.95 pm for broadband (I don't download much stuff)

Sorry,another silly q What is homecare??

Insurance of some kind?Is it do withoutable?

I think the key here is to get that card debt shifted onto your mortgage to free up that £650 a little. Then CUT UP YOUR CARDS. It isn't normally suggested, but interest rates are so low for mortgages at the moment, and you can then over pay the mortgage when you are more financially able.

oh and definately you will have to get another job until you have those pesky cards payed back as they are your main thing which has tipped yu over the edge.

and sit you family down and explain that for at least this year there will be no gifts or cards (waste of money and paper) for birthdays ,easter, or any other holiday you give for.

they will understand. perhaps you can offer you services to provide a personalised cake or something similar? then your giving something but it'll be super cheap.

Actually had missed pension bit,yes would do without that for now,use the £90 to get rid of debt instead.Yes to get rid of £10 dental stuff too.

agree with lou. get those scissors out. and if they send you a new card cut it up immediately also. dont be tempted.

homecare is for the central heating and appliances - since i've used it this year i have to pay for the full year - it will not be carried on when in comes to renew - so i can do without it but may as well keep it as will have to pay for it anyway

i will try to change the tarrif - that's a really good idea as we don't downlad much either and what we do down load is deff not essential

i just get so scared we'll lose everything - we haven't missed payments yet but for the grace of god!!!

I would definitely make appointment with CAB.It is free and impartial advice.

oh and i'm starting to do some overtime - a couple of hours a week but every little helps

will get dh to call his pension co on friday to suspend the payments........he won't lose everything he's paid in will he?

just cutting out on dental/pension and child saving is £114!!

book sky and phones to be cut off as soon as there contract runs out.so you dont get drawn into paying longer than required. you can book in advance no matter what they tell you.

or tbh its worth calling and explaining that you need out contract due to financial circumstances. ask to speak to manager. explain your going up the swanny and if they hold you to contract and charge you for remainder of the year they wont get any a you just haven't got the cash and will end up bankcrupt.

cry if required.

they can waive the fee if you can talk them into it and get someone sympathetic. it does them no good to pay for a lawyer and bailiffs for the outstanding balance.

I'm not a FA so really don't know what happens etc,Moneysaving expert website may be helpful,and like I say I would try to see CAB they would know much more than I. xx Good luck xx

pension.... depends if the company allows payment holidays