Hi,

Myself and my partner are currently in 43k worth of unsecured debt that will be paid off within 4 years. The monthly payment in all is £910.

We have a mortgage also that is £875 per month. We have never missed any payments on any loan before. However after paying all our bills we are left with only £300 per month to feed ourselves.

This does not take into account buying clothes that we need or any holidays or any leisure activities. We can't afford any luxury whatsoever.

We bring in around 51k a year but all the money goes on the loan and mortage repayments. I appreciate there are people in a far worth situation than ourselves but we simply go to work and have no life at all. We cannot new clothes or birthday presents for people or any little luxury.

£300 is all we have left after bills. That has to feed and clothe us and if anything goes wrong with the car or the house we will be screwed.

Are there any companies that offer a debt consolidation service whereby we can reduce our monthly repayment of £910 and be an unsecured loan?

Would any of these companies lend 43k? We have never missed a payment so have a good rating.

I just want a better quality life as we work really hard for our money and have nothing to show for it. We got into this debt because we had nightmare neighbours and had to sell our house and start again.

Please help

Thanks

Rob

It does not cost £300 to feed two for a month. £100 is more than enough for food. That gives you £200 per month to save for an emergency or to spend on luxuries. And I'm pretty sure that there are other bills that you can reduce (I'm not convinced that 51K - tax - 1785 - essential bills is only 300).

Why do you need to buy clothing? A grown adult only needs to buy socks and tights on a regular basis.

Surely it is better to ride out four years paying £910?? Why change it to 15 years or 25 paying £700? Would that extra £200 make a difference? If you're not happy on £300 per month for four years you will not be happy on £500 per month for twenty-five years. Surely the SOONER you deal with the debt the better? Why transform an (admittedly tough) four years into a lifelong commitment?

I really think you should concentrate on economising and looking forward to when the debt is paid off. Then you can relax and enjoy the full rewards of your £51K.

(BTW, why is there no interest on the 43K?)

Why you move? my neighbour is an alcholic and shouts abuse says he going to kill me and my daugter and i aint moveing for that ***, why not report to the authorities fight the neighbours all the way. you'd be 40k better off. and now you put other honest people (who you sold house too) in the same situation.

How can you feed 2 people on 25 quid a week? That sounds really hard. I don't mind buying smartprice food but want to eat healthy food at the same time.

With regards to the neighbours I could not relax and it did not feel like a home and we were walking on egg shells all the time. Life is better now in that respect.

After all the other bills we have like gas electric water and everything else we simply have 300 quid a month left. We have got rid of sky tv and mobile phones.

We can't reduce it anymore than that. I have tried.

What do other people think about 25 quid a week for 2 people? I think that sounds very tough especialy when food prices are going up so much.

Thanks

I have to say I think some of the responses you have had are a bit harsh!!! Some may say I am only saying this because I am in a similar situation to yourselves except I have eight years of a secured loan to pay off.

I thought the point of this web site was for people to give you constructive suggestions and feedback - not have a go!!!!!!!!

Not sure what to suggest, maybe you could go for home owner extra borrowing with your mortgage lenders, or remortgage. I wish I had looked at my options more indepth before going for a secured loan. Or only other option to get lower payments would have to be secured loan over longer period.

Good luck hope you soon get sorted

I agree. Tucker100's reply was uncalled for.

Ignore Tucker100, there's one on every forum!

Shiverkitten has a very good point about food spending, but I think £40 per week is nearer the mark these days.

You need to make your own food, soups, casseroles, curry, chilli.

These can all be made very cheaply and provide several meals for about a £5. Forget the processed food, ready meals, bought sandwiches etc. Buy supermarket own brands, it doesn't have to be Value or No Frills

How much do you spend on food when you are at work? Take homemade sandwiches, make your own tea/coffee - Don't buy it!

I got into the habit of stopping to buy a coffee and a snack most nights when I was at work (Long distance lorry). I was spending nearly £25 every week on that alone.

Tighten the belts and justify every penny you spend.

Good Luck

If you're not living life on the edge then you're taking up too much room!

What you mean by? " there's one on every forum!" I can have an opinion if I wish. And as you this person needs every penny why not change current accounts to A&L you get free overdraft for 12 months so that could go towards debt repayment also they give you £100 as an incentive to transer you account to them. Leave old current account open so you can go back to it in 12 months when the benefits have run out on the A&L account.

I agree with Silverkitten. My partner and I are in the exact same situation. Same amount of income and same level of debt. I thought at one point it would be nicer to 'spread the cost' and take out a secured loan over 10+ years. The only problem with that is that there is no end to when the debt gets payed off. 10 years is a hell of a long time compared to the 4 I had remaining. Now I am working all the overtime they chuck at me and are making overpayments on all my loans. This means after all my bills both my partner and I have £200 left a month. £100 on shopping and £100 on leisure (the odd nice meal out together). My loans will be cleared Jan 2010 instead of 2012.

My advice is just to get it paid off as soon as possible so that you can look forward to nice holidays etc!!

I must agree with shiver kitten

I always stick to a tight budget, especially at this time. My only advise is to write a list of what meals you are going to make every day and only buy what you need. I shop for 2 and I roughly spend £20 per week, but going to the likes of farmfoods I can reduce it to £10. If needs must. With regards to social life, why dont you track down some bargains at thesupermarket and invite friends over for a drink or a carry out. This can be just as fun.

"This does not take into account buying clothes that we need or any holidays or any leisure activities. We can't afford any luxury whatsoever. "

I'm really sorry to sound harsh when I say this, but the debt that you accrued was of your own doing, therefore it is now your responsibility to repay, to which I know you are not shying away from, but appear to be complaining that your finances are now stretched to the point of just about being able to live. You were responsible enough to take out the debt, therefore now times are hard you pretty much have to bite the bullet and deal with it.

Everyone deserves a break, that’s a fact of life, but when it comes down to keeping a roof over your head or food on the table, then why complain about having to sacrifice a holiday.

You don’t need to buy new clothes each month, I’m sure if you really reviewed you complete financial affairs, there will be areas where you will be able to reduce outgoings. People have to make sacrifices, tough decisions. If it was me, I would rather be happier clearing the debt and cutting out a luxury lifestyle, as to be honest, I couldn’t sleep at night with that sort of commitment.

£300 per month for food for 2, would quite easily be achievable. Me and my partner are on low incomes, we can survive, healthily, on £250 per month, that includes feeding a 2 year old. So how you can struggle with £300, I really don’t know.

I would assume you’ve got a big car, which drinks fuel, if so, change it. Save money on fuel costs. Do you have 2 cars, if so, do you really need 2 cars, 2 cars is a luxury. Do you shop at pricy supermarkets? Why not look at the cheaper supermarkets ie… A*da. Fruit, veg, in today’s costs higher, but still “reasonably” priced.

Heating and electricity, are you really taking all the options available to reduce your electricity and heating costs? Have you got Gym memberships? Do you really need them or can you go for a run in a park? People with no money do these things to survive, so why should you be different as you’ve got a higher income.

Like I said to start, you were responsible enough to take out the debts, now it’s time to really tighten up, make savings and be responsible enough to clear the debt, once it’s cleared, don’t get back into the same situation and manage your money better, then you will be able to have the lifestyle you crave.

Some of the comments on here are very harsh.

I agree, We are going to bite the bullet and get on with it. In 3 years time once the debts are paid we will have £1000 a month spare. Not many people can that these days.

We have a company car with free fuel which is good so we will have to go for walks with the doggy.

My biggest worry is if anything major goes wrong with the house etc.

Saw a TV article the other day with people in a similar situation your yourselves. They quite simply began to use a shopping list and rigidly only purchased what was on it. They also bought raw materials (i.e veg, meat etc) and made meals rather than buying ready made stuff. The savings were quite astounding really - they ended up feeding 2 adults and 2 growing kids on just over £30 a week. This wasn't by living off "economy range" gunge either. In fact, they also ended up eating far healthier. Obviously there are time implications in preparing food - but time = money of course....

Of course you also may have saleable assets in the case of disaster with the car/house - I mean you must have spent that 43k on something - is any of it saleable? We dont really "need" the lastest large screen TV or a brand new car every 3 years etc - we just convince ourselves and each other that these are "neccesities" and a mark of success - it's quite possibly the greatest deception ever to succeed (by the people who want us to buy)- it's sucked in 90% + of the Western world! ... Which is why so many are now in debt. Some with nothing to show for it either, which really shows just hown seductive and powerful consumerism is in otherwise sensible people.

If you haven't already, cut up those cards! At least you have stopped in time unlike so many others. I think 99% of us are tightening our belts just now to some degree or other, and I'm sure your not the record holders for unsecured debt (I've heard of over 100k unsecured) - so it could be worse! :-)

Good luck.

I think there are alot of good points raised for coventryman here. I know im tightening my belt.

why not try a few things such as :

trying to raise some extra cash by looking at selling items on ebay... i am sure that you have some clothes / items that you never use and if your other half is anything like mine there will be masses of shoes/clothes that they can get rid of.

save money by going for a walk with your family… not only is it a good stress buster but also has other hidden benefits such as spending quality time together. if you dont want to go walking with your partner then go on your own and take some "me" time. ;) or go to free attractions such as museums.

also as NUMENUS said above - why not get raw ingredients in and make food yourself. my personal favourite is roasting tomatoes and onions with some bazil, strain it and you have got a great pasta / meat sauce which you can freeze for further use. this is a healthy alternative and doesnt cost much at all (in fact if you grow your own tomato's onions and bazil you will get it cheaper again)

still go on holidays - but change the type of holidays you go on. try camping for instance. you can get away for a weekend and to pitch you tent at some places cost from £3 a night and its great fun.

What you dont want to do is borrow more money - you cant borrow your way out of debt.

"If you haven't already, cut up those cards!" thats really good advice

life is what you make it. but just because you are in debt doesnt mean the glass is half empty - it can be half full if you accept certain things and change your outlook on things.

Good Luck

George

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George

Hi

Having been in a similar situation to yourselves I sympathise with you. However, you can help yourselves. In regards to your 'disposable' income - if you plan your meals for the week i.e. Mince meat, will do lasagne, spaghetti bolognaise, stew with fresh veg, shepherds/cottage pie or moussaka. Sausage will cover, casserole or bangers & mash. Chicken will cover a multitude of things from casseroles, kormas, currys, chinese,etc. You just need a bit of imagingation and you can drastically reduce your food bill and still create tasty nourishing meals (better for you than pre-packed stuff). I have been a busy working mum of 4 children on a tight budget and have always had to be disciplined and maintain a routine to ensure the requirements of running a home were maintained. Buy your veg and fruit from markets or local produces as they are cheaper than supermarkets. Buy in bulk (veg is plentiful at the moment) and freeze.

I reduced my clothing bill by buying two black suits for work and wear these through the week with a different top each day. This also reduces your washing/ironing and helps to be more organised. We also took on part-time jobs to supplement our full time jobs. You have to remember that whilstever you've got hands, you've got work and can change your situation.

Don't worry - it's wasted, put the energy into finding a solution. Stay positive.