Thanks guys

Pamela1705 · 8 March 2009 at 8:34PM

Hello,

I'm relatively new to MSE and just wanted to say how uplifting I've found reading these boards. :j

I'm only 23 but when I was a student, I had credit thrown at me - credit cards, overdrafts etc and I got into the habit of spending more than I earned. Even when I decided to pay off credit cards or debts, I often ended up relying on them to tide me over to pay day.

Since the beginning of the year, I've really started to tackle this debt (£4,000) and I'm also trying to put a wee bit of money aside because my boyf and I are trying to save for a mortgage.

At first, it was really easy but lately I've started to feel a bit frustrated with the slow progress - it was starting to feel a bit futile. But by reading these forums and knowing that there is a community out there who can understand what I'm trying to do, it's really given me a lift.

I'm aiming for six no spend days in March, and have already started with my payment-a-day (so far, only £1.44 but it's a start!). I just wanted to say thanks for making it all worthwhile. :beer:

Tesco_points_addict · 8 March 2009 at 8:43PM

Welcome, this is the best place to be

TPAx

TurnaroundSue · 8 March 2009 at 8:51PM

Hi Pamela and welcome - why not post your SOA (found at www.makesenseofcards.com) and let us see if we can help to reduce your outgoings in any way.

It really is a great place to be and I would never have got debt free without this wonderful site.

Pamela1705 · 8 March 2009 at 9:06PM

I don't know if I've done this right, because I only put my half of the bills in and not my partner's. But here goes anyway

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1160
Partners monthly income after tax....... 884
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2044

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 10
Mobile phone............................ 15
TV Licence.............................. 5
Satellite/Cable TV...................... 10
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 56
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 30
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Savings................................. 150
Total monthly expenses.................. 786

Assets
Cash.................................... 400
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 600
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Zopa...........................603.......40........8.87
Overdraft......................1900......0.........0
First trust....................190.......11........12
Natwest credit.................747.......16........11
Total unsecured debts..........3440......67........-

Monthly Budget Summary
Total monthly income.................... 2,044
Expenses (including HP & secured debts). 786
Available for debt repayments........... 1,258
Monthly UNsecured debt repayments....... 67
Amount left after debt repayments....... 1,191

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,440
Net Assets.............................. -2,440

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

debrag · 8 March 2009 at 9:10PM

if this is only your bills when what does your OH pay? or do you mean debts?
To me this seems like both your wages so both paying bills & debts

What debts does your OH have you have 1191 left over each month

doodledo_2 · 8 March 2009 at 9:11PM

Hi and welcome to the board

Only thing from your SOA that jumps out to me is your £150 saving a month. Dependent on the interest rate you might be better throwing this at your debts as any interest on the savings is being lost by the interest on your debts.

Good luck with your debt free journey.

Pamela1705 · 8 March 2009 at 9:55PM

Ah, I think I've done it wrong then. And I forgot lots of stuff. Not as good as I hoped!! Anyway, I'll try again in a bit. Thanks soo soo much for your help and advice so far!!

Pamela1705 · 9 March 2009 at 7:11PM

Hello again,

I think I've done it right this time - got mine and the OH's payments in, so that should be right.

I got a bit carried away last night and didn't really explain my situation.
Basically, I've never been a massive spender and I don't really have extravagant purchases or anything like that. But I have been known to use the credit available to me as a stop gap before pay day.

So like, I might want to buy a book, but know that if I buy it now it might leave me short, so I'll buy it on my credit card with great intentions to pay it off. Which of course, I never do.

We've decided that we want to buy a house so I'm putting as much money away as possible for a deposit, and that's my number 1 priority at the minute. The debt itself is not a huge concern, it's manageable but I just want rid of it.
The savings account I've got is the Halifax regular saver and gets me 7 per cent interest, and I really want to see that grow. But I also want to see the debt shrink, even though I'm managing it. Am I going about it the right way?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1160
Partners monthly income after tax....... 884
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2044

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 7
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 80
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 38
Mobile phone............................ 15
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 0
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 56
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 70
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Savings................................. 150
Total monthly expenses.................. 1147

Assets
Cash.................................... 450
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 600
Other assets............................ 0
Total Assets............................ 1050

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 0........(7)........0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
My zopa........................603.......40........8.87
OH Zopa........................1000......50........9
Natwest credit card............747.......16........12
OH Capital One.................150.......15........15
Overdraft......................1900......0.........0
Natwest loan...................800.......33........7
First trust credit.............190.......7.........11
Total unsecured debts..........5390......161.......-

Monthly Budget Summary
Total monthly income.................... 2,044
Expenses (including HP & secured debts). 1,147
Available for debt repayments........... 897
Monthly UNsecured debt repayments....... 161
Amount left after debt repayments....... 736

Personal Balance Sheet Summary
Total assets (things you own)........... 1,050
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,390
Net Assets.............................. -4,340

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

doodledo_2 · 9 March 2009 at 8:07PM

Well just my personal opinion but I would chuck any savings and the £150 at the month as nearly all your debts are accuring more interest than your savings.

Your £450 cash and one months payment of £150 would clear the Zopa debt. Or would clear the smaller debts with the high interest rates.

Pamela1705 · 9 March 2009 at 9:10PM

Thanks Doodle-do. That makes a lot of sense but there is something in me that wants to save.

When I was growing up, we never had much money and lived in a council house. Now I'm earning a decent wage, my boyfriend and I really want to buy a house. I know that sounds silly, but I don't know what to do. Throwing the £400 at Zopa would feel great, but part of me thinks that it's only £40 a month, compared to £150 in the savings pot.

I know common sense should kick in here and tell me that I'm just paying interest for nothing, and I totally agree. I am making additional payments with my wages and I'm really trying to get it all in order - I want to make my money work for me. I think it's mental but I can't seem to shake it. Any advice?

Gorgeous_George · 10 March 2009 at 8:14PM

Until commonsense kicks in, you will never be financially happy.

GG

Thanks guys

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