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savingholmes
Posts: 28,974 Forumite
We traditionally over-spend by £1K per month. Have hopefully got that down to about £300 per month. However we are currently trying to pay off about £840 on top of mortgage per month. My job is insecure and I could be out of work at a month's notice hence strong desire to resolve.... Also we are hoping to have a big (expensive) celebration of birthdays and marriage in 2 years time and need to resolve existing debt in order to be able to afford it...
Things we are reviewing to see if we can create more surplus to use on debt repayment:
We are investigating having a lodger to speed up debt repayment - looks highly likely we will get one but via a college - so waiting on them for more details. If we get one the arrangement will start within 2 weeks.
We have 1 car that is always breaking down and a motorbike that is on its last legs - theoretically they are worth between them about £1300-1600. In the last year they have cost at least £2K to keep on the road - so planning to sell and replace with something but not sure what. OH wants to replace with a brand new £3K motorbike/scooter which he says will have twice the mile per gallon, fixed price servicing of £85 per year and no mot for 3 years so he is arguing it would pay for itself within 18months max.... Bit limiting tho.... We would then keep my car for family trips out.
OH has the equivalent of a second job for which he doesn't get paid - but could help with his long term career aspirations. This is however currently costing between £100 and £150 per month in fuel to get to it... He is considering resigning as it puts too much pressure on us and costs us too much.
We have sorted at least 6 crates of books plus a load of other items to potentially sell....
The charitable giving relates to tithing which we believe we are supposed to do... I've cut it by £22 but as OH gets paid by charity funded by charitable given would find it difficult to stop for religious and ethical reasons....
We are also considering reducing the childcare of DS but that would involve DS becoming a latch key kid so not sure if that is really a positive solution.... Would save £7 per night.... Agreed 170808
I am also planning to ask at work for a change of hours which could knock 70 off my childcare bill per month. On top of the SOA below - I pay 243 in childcare vouchers direct out of wages. Agreed 180808
Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1914
Partners monthly income after tax....... 1617
Benefits................................ 125
Other income............................ 0
Total monthly income.................... 3656
Monthly Expense Details
Mortgage................................ 753
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 138
Electricity............................. 70
Gas..................................... 40
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 28
Mobile phone............................ 25
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 360
Clothing................................ 25
Petrol/diesel........................... 400
Road tax................................ 40
Car Insurance........................... 60
Car maintenance (including MOT)......... 170
Car parking............................. 2
Other travel............................ 0
Childcare/nursery....................... 110 Stop £84-100 of this - left message with after school club 180808
Other child related expenses............ 25
Medical (prescriptions, dentist etc).... 16
Pet insurance/vet bills................. 0
Buildings insurance..................... 12
Contents insurance...................... 12
Life assurance ......................... 70
Other insurance......................... 33
Presents (birthday, christmas etc)...... 30 Trying for cost neutral
Haircuts................................ 25
Entertainment........................... 40
Holiday................................. 50 Can stop from Sept
Emergency fund.......................... 0
Child sponsorship 2..................... 18
Child sponsorship 1..................... 18
Charitable giving me.................... 180 Will suspend this from Sept - poss too late for this month now
Charitable giving 0H.................... 175
Cleaner 90
Total monthly expenses.................. 3068
Assets
Cash.................................... 1300
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 3300
Other assets............................ 0
Total Assets............................ 204600
Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 151000...(753)......5.95
Total secured debts........... 151000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
C12............................7168......100.......0
E..............................300.......10........18
V..............................10500.....25........0
bh.............................960.......40........0
C1.............................1262......10........0
BC.............................500.......10........6.5
MS.............................250.......5.........18
Total unsecured debts..........20940.....200.......-
Monthly Budget Summary
Total monthly income.................... 3,656
Expenses (including secured debts)....... 3068
Available for debt repayments........... 588
Monthly UNsecured debt repayments....... 200
Surplus(deficit if negative)............ 388
Personal Balance Sheet Summary
Total assets (things you own)........... 204,600
Total Secured debt...................... -151,000
Total Unsecured debt.................... -20,940
Net Assets.............................. 32,660
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.
2 adults, 2 children. 2 cars old and 1 motorbike very old hence high maintenance costs
Things we are reviewing to see if we can create more surplus to use on debt repayment:
We are investigating having a lodger to speed up debt repayment - looks highly likely we will get one but via a college - so waiting on them for more details. If we get one the arrangement will start within 2 weeks.
We have 1 car that is always breaking down and a motorbike that is on its last legs - theoretically they are worth between them about £1300-1600. In the last year they have cost at least £2K to keep on the road - so planning to sell and replace with something but not sure what. OH wants to replace with a brand new £3K motorbike/scooter which he says will have twice the mile per gallon, fixed price servicing of £85 per year and no mot for 3 years so he is arguing it would pay for itself within 18months max.... Bit limiting tho.... We would then keep my car for family trips out.
OH has the equivalent of a second job for which he doesn't get paid - but could help with his long term career aspirations. This is however currently costing between £100 and £150 per month in fuel to get to it... He is considering resigning as it puts too much pressure on us and costs us too much.
We have sorted at least 6 crates of books plus a load of other items to potentially sell....
The charitable giving relates to tithing which we believe we are supposed to do... I've cut it by £22 but as OH gets paid by charity funded by charitable given would find it difficult to stop for religious and ethical reasons....
We are also considering reducing the childcare of DS but that would involve DS becoming a latch key kid so not sure if that is really a positive solution.... Would save £7 per night.... Agreed 170808
I am also planning to ask at work for a change of hours which could knock 70 off my childcare bill per month. On top of the SOA below - I pay 243 in childcare vouchers direct out of wages. Agreed 180808
Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1914
Partners monthly income after tax....... 1617
Benefits................................ 125
Other income............................ 0
Total monthly income.................... 3656
Monthly Expense Details
Mortgage................................ 753
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 138
Electricity............................. 70
Gas..................................... 40
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 28
Mobile phone............................ 25
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 360
Clothing................................ 25
Petrol/diesel........................... 400
Road tax................................ 40
Car Insurance........................... 60
Car maintenance (including MOT)......... 170
Car parking............................. 2
Other travel............................ 0
Childcare/nursery....................... 110 Stop £84-100 of this - left message with after school club 180808
Other child related expenses............ 25
Medical (prescriptions, dentist etc).... 16
Pet insurance/vet bills................. 0
Buildings insurance..................... 12
Contents insurance...................... 12
Life assurance ......................... 70
Other insurance......................... 33
Presents (birthday, christmas etc)...... 30 Trying for cost neutral
Haircuts................................ 25
Entertainment........................... 40
Holiday................................. 50 Can stop from Sept
Emergency fund.......................... 0
Child sponsorship 2..................... 18
Child sponsorship 1..................... 18
Charitable giving me.................... 180 Will suspend this from Sept - poss too late for this month now
Charitable giving 0H.................... 175
Cleaner 90
Total monthly expenses.................. 3068
Assets
Cash.................................... 1300
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 3300
Other assets............................ 0
Total Assets............................ 204600
Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 151000...(753)......5.95
Total secured debts........... 151000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
C12............................7168......100.......0
E..............................300.......10........18
V..............................10500.....25........0
bh.............................960.......40........0
C1.............................1262......10........0
BC.............................500.......10........6.5
MS.............................250.......5.........18
Total unsecured debts..........20940.....200.......-
Monthly Budget Summary
Total monthly income.................... 3,656
Expenses (including secured debts)....... 3068
Available for debt repayments........... 588
Monthly UNsecured debt repayments....... 200
Surplus(deficit if negative)............ 388
Personal Balance Sheet Summary
Total assets (things you own)........... 204,600
Total Secured debt...................... -151,000
Total Unsecured debt.................... -20,940
Net Assets.............................. 32,660
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.
2 adults, 2 children. 2 cars old and 1 motorbike very old hence high maintenance costs
Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £174.8K Equity 32.77%
2) £1.6K Net savings after CCs 14/8/25
3) Mortgage neutral by 06/30 (AVC £25.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.1/£127.5K target 24.4% 15/8/25
4) FI Age 60 income target £16.5/30K 55.1%
5) SIPP £4.8K updated 29/7/25
1) MFW Nov 21 £202K now £174.8K Equity 32.77%
2) £1.6K Net savings after CCs 14/8/25
3) Mortgage neutral by 06/30 (AVC £25.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.1/£127.5K target 24.4% 15/8/25
4) FI Age 60 income target £16.5/30K 55.1%
5) SIPP £4.8K updated 29/7/25
0
Comments
-
Hi,
Just had a quick look through your SOA, bit confused about your £840 extra a month,
1) where is that money coming from
2) what are you paying it to? debts and/or mortgage?
Your debt monthly repayment is quite low considering the total amount of debt, e.g. £10500 at only £25 pm, seems low. Have you considered overpaying?
Sorry it is late, and if that is what you mean by the £840 ignore all of above....:o
The good you do comes back to you.DFW Long haul supporters No: 134
0 -
Thanks for the reply... it is a big step for me to put real figs out there....rubydoiwannabee wrote: »Hi,
Just had a quick look through your SOA, bit confused about your £840 extra a month,
1) where is that money coming from
2) what are you paying it to? debts and/or mortgage?
Your debt monthly repayment is quite low considering the total amount of debt, e.g. £10500 at only £25 pm, seems low. Have you considered overpaying?
Sorry it is late, and if that is what you mean by the £840 ignore all of above....:o
The minimum payments are only about £200 but we are trying to pay £840 - but probably only have about £500 to do that with. One of OH's card has instituted a new rule where you can only pay min amount - in their case £25 or the whole amount. It is on 0% until about April next year so my philosophy is prioritise the rest (using snowball calculator method) and then move this one when we need to.Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £174.8K Equity 32.77%
2) £1.6K Net savings after CCs 14/8/25
3) Mortgage neutral by 06/30 (AVC £25.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.1/£127.5K target 24.4% 15/8/25
4) FI Age 60 income target £16.5/30K 55.1%
5) SIPP £4.8K updated 29/7/250 -
You have in excess of £20k unsecured debt, yet you're paying over £500 between holiday fund, cleaner and charitable donations... I'm wondering if you could defer these for a while, it would certainly speed up your debt repayments no end?I'm an adult and I can eat whatever I want whenever I want and I wish someone would take this power from me.
-Mike Primavera.0 -
Hiya,
got you now, sorry I was just being dim!!
Well done for getting a SOA done, it is scary isn't it. Sounds like you have done really well to cut your debts down so much already.
Like you I have two children and a OH, how old is your DS that you are thinking of stopping after school club for? My DS came home with a key from his last year at juniors, he is nearly 14 now. Just thought I would mention it, so you know you are not alone.
xxThe good you do comes back to you.DFW Long haul supporters No: 1340 -
We have committed and paid for a 4 day camping trip in August but other than that have no more holidays planned.... I've just put it in to be realistic about spend over the year. We probably do spend at least £1K but spread over 3 or 4 breaks...
Charitable donations.... I'm working on this with OH. It may be that I stop mine but he continues his.... I am trying to reach a position with him that we are both happy with. Ethically it is a bit of an issue as the whole of his salary is funded through charitable giving by others.....Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £174.8K Equity 32.77%
2) £1.6K Net savings after CCs 14/8/25
3) Mortgage neutral by 06/30 (AVC £25.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.1/£127.5K target 24.4% 15/8/25
4) FI Age 60 income target £16.5/30K 55.1%
5) SIPP £4.8K updated 29/7/250 -
DS is 10 - he would be in last year of juniors. Have a DD but she is much, much younger and I think she needs to stay in afterschool club. I was wondering about dropping it down a day a month - say starting with cutting out Fridays and whittling it down. Do you think that's too cautious?rubydoiwannabee wrote: »Like you I have two children and a OH, how old is your DS that you are thinking of stopping after school club for? My DS came home with a key from his last year at juniors, he is nearly 14 now. Just thought I would mention it, so you know you are not alone.
xx
He is relatively sensible but he does leave doors unlocked, window open etc but is generally well behaved and well meaning...Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £174.8K Equity 32.77%
2) £1.6K Net savings after CCs 14/8/25
3) Mortgage neutral by 06/30 (AVC £25.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.1/£127.5K target 24.4% 15/8/25
4) FI Age 60 income target £16.5/30K 55.1%
5) SIPP £4.8K updated 29/7/250 -
The cleaner I am currently considering whether we stop or reduce but we are pretty untidy, both work full time and it does take the pressure off knowing that toilets and kitchen are clean if people come round... If we get a lodger with our current poor housekeeping habits it will be even more important that the communal areas are kept up to a good standard.splishsplash wrote: »You have in excess of £20k unsecured debt, yet you're paying over £500 between holiday fund, cleaner and charitable donations... I'm wondering if you could defer these for a while, it would certainly speed up your debt repayments no end?
It may be that if OH drops his second "job" that he would have more time to help out but currently I do most of the work!!!!Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £174.8K Equity 32.77%
2) £1.6K Net savings after CCs 14/8/25
3) Mortgage neutral by 06/30 (AVC £25.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.1/£127.5K target 24.4% 15/8/25
4) FI Age 60 income target £16.5/30K 55.1%
5) SIPP £4.8K updated 29/7/250 -
You have to do what suits you and him. My DS really liked the idea of coming home because he had outgrown the after school club. He calls me every day when he gets home and doesn't leave the house. He tends to eat and watch tv until we get home. As he has got older he sometimes rings to say he is going to a friends etc. One day a week or month might be a good way of trying it.
Best of luck, why not see what he thinks.The good you do comes back to you.DFW Long haul supporters No: 1340 -
If you put your contribution plus what you're paying the cleaner towards debt, then you'll be able to clear the MS debt the first month, the E debt the second month, and the BC debt a couple of months after that - and before you know it, the bh debt would be knocked on the head. That would certainly make the list shorter!
There are some great Flylady threads running on the OldStyle Boards which can help hugely to focus in on the dreaded housework... might be worth having a peek?I'm an adult and I can eat whatever I want whenever I want and I wish someone would take this power from me.
-Mike Primavera.0 -
Thanks - I will talk to him about - I think he would be quite pleased. Just didn't want anyone to think we were neglecting him. I'll ring the afterschool club and knock off Fridays and if that is going okay review again then. That will save me £28 just there a month.rubydoiwannabee wrote: »You have to do what suits you and him. My DS really liked the idea of coming home because he had outgrown the after school club. He calls me every day when he gets home and doesn't leave the house. He tends to eat and watch tv until we get home. As he has got older he sometimes rings to say he is going to a friends etc. One day a week or month might be a good way of trying it.
Best of luck, why not see what he thinks.Achieve FIRE/Mortgage Neutrality in 2030
1) MFW Nov 21 £202K now £174.8K Equity 32.77%
2) £1.6K Net savings after CCs 14/8/25
3) Mortgage neutral by 06/30 (AVC £25.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.1/£127.5K target 24.4% 15/8/25
4) FI Age 60 income target £16.5/30K 55.1%
5) SIPP £4.8K updated 29/7/250
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