My First SOA :) Help me plug the leaks please...

iamstacie · 21 May 2007 at 2:30PM

Hi,

I've been reading the forums for about a year and I'm on my 3rd Username (others had a combined post total of 1 between them) but this is the first time I've been posting properly. So, 'hello' all DFW's

Myself & my partner have been keeping a spending diary for the past month and although I knew we had a lot of debts, I was quite surprised to find quite how much we spend without even making a dent on our debts. I've written out our SOA, and at the bottom is our ideas on how to cut it down and we'd be grateful if the lovely people on here could give us any more pointers...

Income
Me - 1070
OH - ~1000 minimum
New job shift allowance (starts next month) ~430 after tax

Joint Outgoings -

Rent - 475
Electric - 30
Gas - 55 (this is high be we can't do anything since we're in a rented house with a prepay card = v expensive!)
Council Tax - 85
TV License - 11
Water - 17
Phone - 15
Virgin Media - 20 (TV & BB)
House Ins - 6
Credit Reports - 10 (£15 each every 3 months - we need to keep an eye on them at the minute)
Food - 400 :eek:
Dog Ins - 17 (but pricey, but no point in getting a cheaper one that doesnt pay out v well)
Meals Out/Takeaways - 180

£1381 in total

Outgoings - Me -

Food at Work - 120
Car Ins - 30
Car Breakdown - 9
Petrol - 50
PAYG Phone - 10
Cigarettes - 20
Beers - 200
Car Tax Stamps - 15

£454 in total

Outgoings - OH -
Phone - 25
Cigs - 40
Beers - 300

£365 in total

=£2200 altogether :eek:

Debts....

HSBC Loan (with DCA so no interest) 7948.72 - new payment plan starting July for £80pm
HSBC CC (DCA no %) 2993 - pay 30pm
Dorothy Perkins (DCA no %) 380 - mum pays 10pm for me and has down for ages

Smile CC - 1079 - 18.9% APR - over its limit now but they're still only taking 18pm??
Natwest Grad A/c o/d - 800 - 17.9% apr - £4pm
Natwest Current a/c o/d - 1500 - 17.9% apr - in use all the time so money goes in to cover it but we'd like to cancel it
Previous Employer overpayment - 4000 - £0pm yet

Going forward...
Food bill for June - 250
Meals out/Takeaways - 60
Food at work - 20
Beers - Me - 120
Beers - Him - 200
Cig - 30 in total

So based on the new target would mean = £1710 before debts leaving us ~£300 pm month on debts (plus my new jobs shift bonus of £400)

Can you offer any advice on how to cut this down any more? I know food & beer is high and I think we'll come in under target but the new targets represent 1/2 of what we have been spending and means going out just once or twice a week rather than the 4 or 5 times we have been doing. Its a small step, but its in the right direction

Thanks for reading this far!!

Any/all advice appreciated

Thanks,
Stacie
x

redballoon_2 · 21 May 2007 at 2:35PM

you know what you have to do.

NO TAKEAWAYS!

FOOD BILL FOR THE MONTH SHOULD BE UNDER £100 IF THERE ARE TWO ADULTS IF YOU MEAL PLAN!

NO FOOD TO BE BROUGHT AT WORK, TAKE SANDWICHES!

REDUCE BEER SPENDING!

Burlesque_Babe · 21 May 2007 at 2:36PM

The things that jump out are the bits you have already realised - food/takeaways/beer (£500 a month between you!)/food at lunch.

If you are serious about things, I would be harsh and cut the takeaway bill to £0.00 Take lunch into work, takes that down to £0.00.

The 'beer' target is still very high - £10 a day between you!

Getting the monthly spend on food down does take a bit of doing. I would suggest popping over to the Old Style board and sign up to the monthly supermarket challenge. Over the next few months, youcould easily chop £50+ a month off that.

Good luck

Queen.Bess · 21 May 2007 at 2:39PM

Hi Stacie, good to have you aboard! There will be experts with far more financial know-how than me, but straight away I can notice that your food bill is far too high - get your last shopping bill receipt out and go through with a fine toothcomb and ask 'do I really need that?'. Also, have a look at the electricity - £30 seems a bit high.

Also, what is £120 at work. Do you have to buy your food there, or can you do packed lunches or make your own hot meals and microwave them? Beers needs cutting down too I think. I'm sure as you get into the DFW way, not spending will become easier and make days when you do spend a rare occurance!

BettiePage · 21 May 2007 at 2:41PM

By 'beers' do you mean nights out in general? If not, maybe you'd best try AA, as £500 a month on alcohol is a drink problem imo.

Other than that, big savings as you have realised, can be made on your food/ lunch/takeaway spends.

hypno06 · 21 May 2007 at 2:43PM

As said above - you KNOW what you have to do, it is really more a question of have you had your light bulb moment?

If you have, and are serious about tackling this debt, then you will make the changes identified. OK so they will make a difference to your life, in that you will not be having takeaways and meals out so frequently, but these changes will be positive in that they will allow you to become debt free.

Good luck!

Storm · 21 May 2007 at 2:49PM

SPAM - reported

Burlesque_Babe · 21 May 2007 at 2:51PM

Just worked out if you do not have takeaways for a month and do not go out for a month (not the end of the world!) and take packed lunch to work you AND chop £150 off your shopping bill as per your target will save £950!!

This will pay off al your Nat West graduate overdraft AND half your Dorothy Perkins.

I think 6 months of really cutting out the socialising will make a huge dent in your debts and is really worth going for.

gizfizz · 21 May 2007 at 2:52PM

:eek: :eek: £1200 on food and beers each month??!! wow thats roughly the same as our total outgoings inc mortgage, council tax etc (not inc other debts tho) and we could cut back on a few things. i think thats got to be your main problem-if you're spending £180 on takeaways and £120 at work then what on earth does the £400 food shopping buy? if you both want to carry on drinking alot could you find a cheaper way of buying it ie buy bulk or if you're out alternate soft drink/juice in between alcoholic drinks?

Storm · 21 May 2007 at 2:54PM

Hi Stacie :hello:

Couple of things I wondered - can you speak to your landlord/agents about getting the electric meter changed from pre-payment to monthly DD? If not, at least run a comparison to check you're with the cheapest supplier.

Can you both switch to rollies instead of pre-rolled cigs? It halved the amount I was spending!

With the OD - have a look at the Alliance & Leicester deal where you can get a 0% OD, the same limit as you currently have for the first year (I think you can also get cashback for recommending someone etc, so if you both switch it could be v.profitable.

joeblack066 · 21 May 2007 at 2:58PM

£320 pcm on 'beers' for you both when you have debts that you are paying up to 18.9% APR on? I'm lucky if I spend £3.20!! You need to change your way of life IMHO, or you will never get off the debt roundabout! Good luck, and well done for posting!

My First SOA :) Help me plug the leaks please...

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