Feeling really vulnerable
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MrsMs_2
Posts: 39 Forumite
Hi,
Sorry if this is in the wrong section. I'm a very long time lurker, but first time poster. Sorry if this is stupidly long!
Bit of backstory - myself and my husband ran up debts probably dating back 12 years ago after buying our first house. We could always afford the monthly repayments and didn't really live extravagantly or beyond our means. In 2013, hubby was made redundant after 13 years with his employer. We paid off a lot of debt with his redundancy package, put £1k in savings and he was only unemployed for 4 days. We were left with approx £15k of debts after paying off the higher interest stuff (credit cards mainly). Unfortunately since then, he's been made redundant a further 3 times.
After he was made redundant (the company went into administration) the 2nd time, there was a period of 7 months of unemployment and we fell behind on the mortgage, with council tax, etc. It was a bit of a mess but we caught up as quickly as we could. Since he's been back in employment, we've worked really hard to pay off almost everything and build up savings as much as we could. I'll post a SOA so you can see that we really have put a massive dent in the debt and we're almost debt free.
However, in February, my husband was made redundant for the 4th time (stopped working in March) and only got back into work in August (first pay was end of September). Our savings of approx £1,700 were used during those months of unemployment, along with my overdraft, so we lived very frugally and the final few pounds were spent just before his first salary was paid, but he is earning £400 a month less than the previous job as he was desperate to get back to work.
During the time my husband was out of work most recently, we had a gas leak and so were without access to hot water. We've needed a new boiler for years and have just put up with heating one room with a calor gas fire for about 5-6 years as we've not had the money to replace the boiler. After 4 months without hot water I just couldn't cope anymore and my parents offered to pay for a replacement as to fix the gas leak would possibly cost the same as a new boiler as they couldn't easily identify where the leak was and quotes were crazy for an hourly rate. After the boiler was installed, our soil pipe and drainage needed urgent repair so to have all the drains re-laid, that's cost another £400, which regrettably I've had to borrow from my parents.
This month, I've also had a car repair bill of £230 (MOT & work to pass the MOT) and I've bought new shoes for my husband as he's been walking round with holes in his, which isn't nice now it's getting colder. The car needs 2 new tyres also before I start driving it - I currently can't as I have a broken leg, so of course, at the moment I've got taxi expenses to get to and from anywhere - I tried using the bus last week to save money and it was an experience I really don't want to repeat.
I'm feeling really vulnerable as I have no savings left at all and the drainage issue has brought to light more urgently needed house repairs (we have no foundation under a section of our house and a hole in our chimney). My wages will also reduce to half in January if I'm not yet back in work, however, I'm hoping I can be back fairly soon, as I've been off for almost 5 months.
I've applied for a 0% credit card to transfer the very small balance I have on the existing card (which is closed and I'm just clearing the balance). This was accepted and although the online account is open, I'm worried they'll say no as we did have missed payments on stuff in 2013/2014. My thinking is that I can buy the materials on the 0% card, use my disposable income to pay the tradesmen (instead of paying extra to my debts temporarily), and then clear the card as quickly as I can - I've reduced the credit limit to £1000 so I don't use it for unnecessary purchases.
But that doesn't help with the savings part. It doesn't feel good at all living payday to payday and not having a little back up in place. Any tips for building that up fairly quickly? Since the 2nd redundancy getting into a mess, and then paying everything we could spare on clearing debt, I've tried to keep £1,000 at all times as that feels like a nice figure to have, but it took probably 2 years to save that last time so I'm panicking, especially as work needs doing on the house and I HATE owing my parents money and feel embarrassed that I've even had to resort to that.
I'll post my SOA below so you can have a look. The bigger overdraft is costing roughly £15 a month in interest, and the credit card I'm paying way more than the minimum, but plan on moving the balance to the 0% card if it does indeed materialise.
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................ 1258
Partners monthly income after tax....... 1236
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2494
Monthly Expense Details
Mortgage................................ 446
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 1.27
Council tax............................. 89
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 29
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 16
Car Insurance........................... 65
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 52
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17
Pet insurance/vet bills................. 73
Buildings insurance..................... 8
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 200
Holiday................................. 100
Emergency fund.......................... 25
Union (work)............................ 14
Total monthly expenses.................. 1835.39
Assets
Cash.................................... 0
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 2300
Other assets............................ 0
Total Assets............................ 77300
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 65000....(446)......4
Total secured & HP debts...... 65000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Bank O/D.......................950.......30........18.9
Bank O/D.......................250.......30........0
Credit card....................487.......100.......19.9
Parents........................1400......100.......0
Total unsecured debts..........3087......260.......
Monthly Budget Summary
Total monthly income.................... 2,494
Expenses (including HP & secured debts). 1,835.39
Available for debt repayments........... 658.61
Monthly UNsecured debt repayments....... 260
Amount left after debt repayments....... 398.61
Personal Balance Sheet Summary
Total assets (things you own)........... 77,300
Total HP & Secured debt................. -65,000
Total Unsecured debt.................... -3,087
Net Assets.............................. 9,213
Created using the SOA calculator
Sorry if this is in the wrong section. I'm a very long time lurker, but first time poster. Sorry if this is stupidly long!
Bit of backstory - myself and my husband ran up debts probably dating back 12 years ago after buying our first house. We could always afford the monthly repayments and didn't really live extravagantly or beyond our means. In 2013, hubby was made redundant after 13 years with his employer. We paid off a lot of debt with his redundancy package, put £1k in savings and he was only unemployed for 4 days. We were left with approx £15k of debts after paying off the higher interest stuff (credit cards mainly). Unfortunately since then, he's been made redundant a further 3 times.
After he was made redundant (the company went into administration) the 2nd time, there was a period of 7 months of unemployment and we fell behind on the mortgage, with council tax, etc. It was a bit of a mess but we caught up as quickly as we could. Since he's been back in employment, we've worked really hard to pay off almost everything and build up savings as much as we could. I'll post a SOA so you can see that we really have put a massive dent in the debt and we're almost debt free.
However, in February, my husband was made redundant for the 4th time (stopped working in March) and only got back into work in August (first pay was end of September). Our savings of approx £1,700 were used during those months of unemployment, along with my overdraft, so we lived very frugally and the final few pounds were spent just before his first salary was paid, but he is earning £400 a month less than the previous job as he was desperate to get back to work.
During the time my husband was out of work most recently, we had a gas leak and so were without access to hot water. We've needed a new boiler for years and have just put up with heating one room with a calor gas fire for about 5-6 years as we've not had the money to replace the boiler. After 4 months without hot water I just couldn't cope anymore and my parents offered to pay for a replacement as to fix the gas leak would possibly cost the same as a new boiler as they couldn't easily identify where the leak was and quotes were crazy for an hourly rate. After the boiler was installed, our soil pipe and drainage needed urgent repair so to have all the drains re-laid, that's cost another £400, which regrettably I've had to borrow from my parents.
This month, I've also had a car repair bill of £230 (MOT & work to pass the MOT) and I've bought new shoes for my husband as he's been walking round with holes in his, which isn't nice now it's getting colder. The car needs 2 new tyres also before I start driving it - I currently can't as I have a broken leg, so of course, at the moment I've got taxi expenses to get to and from anywhere - I tried using the bus last week to save money and it was an experience I really don't want to repeat.
I'm feeling really vulnerable as I have no savings left at all and the drainage issue has brought to light more urgently needed house repairs (we have no foundation under a section of our house and a hole in our chimney). My wages will also reduce to half in January if I'm not yet back in work, however, I'm hoping I can be back fairly soon, as I've been off for almost 5 months.
I've applied for a 0% credit card to transfer the very small balance I have on the existing card (which is closed and I'm just clearing the balance). This was accepted and although the online account is open, I'm worried they'll say no as we did have missed payments on stuff in 2013/2014. My thinking is that I can buy the materials on the 0% card, use my disposable income to pay the tradesmen (instead of paying extra to my debts temporarily), and then clear the card as quickly as I can - I've reduced the credit limit to £1000 so I don't use it for unnecessary purchases.
But that doesn't help with the savings part. It doesn't feel good at all living payday to payday and not having a little back up in place. Any tips for building that up fairly quickly? Since the 2nd redundancy getting into a mess, and then paying everything we could spare on clearing debt, I've tried to keep £1,000 at all times as that feels like a nice figure to have, but it took probably 2 years to save that last time so I'm panicking, especially as work needs doing on the house and I HATE owing my parents money and feel embarrassed that I've even had to resort to that.
I'll post my SOA below so you can have a look. The bigger overdraft is costing roughly £15 a month in interest, and the credit card I'm paying way more than the minimum, but plan on moving the balance to the 0% card if it does indeed materialise.
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................ 1258
Partners monthly income after tax....... 1236
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2494
Monthly Expense Details
Mortgage................................ 446
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 1.27
Council tax............................. 89
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 29
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 16
Car Insurance........................... 65
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 52
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17
Pet insurance/vet bills................. 73
Buildings insurance..................... 8
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 200
Holiday................................. 100
Emergency fund.......................... 25
Union (work)............................ 14
Total monthly expenses.................. 1835.39
Assets
Cash.................................... 0
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 2300
Other assets............................ 0
Total Assets............................ 77300
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 65000....(446)......4
Total secured & HP debts...... 65000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Bank O/D.......................950.......30........18.9
Bank O/D.......................250.......30........0
Credit card....................487.......100.......19.9
Parents........................1400......100.......0
Total unsecured debts..........3087......260.......
Monthly Budget Summary
Total monthly income.................... 2,494
Expenses (including HP & secured debts). 1,835.39
Available for debt repayments........... 658.61
Monthly UNsecured debt repayments....... 260
Amount left after debt repayments....... 398.61
Personal Balance Sheet Summary
Total assets (things you own)........... 77,300
Total HP & Secured debt................. -65,000
Total Unsecured debt.................... -3,087
Net Assets.............................. 9,213
Created using the SOA calculator
0
Comments
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Welcome to DFW - there looks to be a few areas you can definitely cut back on, redundancies suck, that's a fact of life. I decided there were so many happening that I needed to get income protection which sadly you can only get a decent deal on after being employed for 12 months. But worth bearing in mind for future maybe? If your husbands industry is prone to it then it could protect you in future...
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................ 1258
Partners monthly income after tax....... 1236
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2494
Monthly Expense Details
Mortgage................................ 446
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 1.27
Council tax............................. 89
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 29
Groceries etc. ......................... 200 for two of you there is room to reduce this
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 16
Car Insurance........................... 65 For one car this is high! Can you do some comprisons and see if you can get it down, especially if as by the sounds of it it is an older car?
Car maintenance (including MOT)......... 60 £720 a year - is this accurate? If you do a lot of miles this might be right as tires aren't cheap, but if this is mainly repairs then maybe it's time to look for a different car?
Car parking............................. 0
Other travel............................ 52
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17
Pet insurance/vet bills................. 73 Wow... how many pets is this for??
Buildings insurance..................... 8
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 200 Nope - that needs to seriously reduce down, is this a guess or have you actually looked at your past statements?
Holiday................................. 100 Holiday or house? You need to decide right now. Holiday at home for a couple of years until you have paid off your debts
Emergency fund.......................... 25
Union (work)............................ 14
Total monthly expenses.................. 1835.39
Assets
Cash.................................... 0
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 2300
Other assets............................ 0
Total Assets............................ 77300
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 65000....(446)......4
Total secured & HP debts...... 65000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Bank O/D.......................950.......30........18.9
Bank O/D.......................250.......30........0
Credit card....................487.......100.......19.9
Parents........................1400......100.......0
Total unsecured debts..........3087......260.......
Monthly Budget Summary
Total monthly income.................... 2,494
Expenses (including HP & secured debts). 1,835.39
Available for debt repayments........... 658.61
Monthly UNsecured debt repayments....... 260
Amount left after debt repayments....... 398.61
Personal Balance Sheet Summary
Total assets (things you own)........... 77,300
Total HP & Secured debt................. -65,000
Total Unsecured debt.................... -3,087
Net Assets.............................. 9,213
Created using the SOA calculatorDFW Nerd #025DFW no more! Officially debt free 2017 - now joining the MFW's!
My DFW Diary - blah- mildly funny stuff about my journey0 -
Welcome to DFW - there looks to be a few areas you can definitely cut back on, redundancies suck, that's a fact of life. I decided there were so many happening that I needed to get income protection which sadly you can only get a decent deal on after being employed for 12 months. But worth bearing in mind for future maybe? If your husbands industry is prone to it then it could protect you in future...
That may be something we can look to do. Redundancies are a nightmare, they really are. This most recent one was so unexpected
I will definitely have a look for myself straight away though.
I don't know how to quote the SOA you've commented on!
Groceries - could probably cut back. I like to use Aldi, local butchers/green grocers, etc. But currently I'm having to shop at Tesco as its the closest supermarket and I have to get a taxi there. I also included dog food in this - usually around £45-£50 a month.
Car insurance - it's the cheapest I could get it (that figure also includes breakdown cover separately). I've been driving for 13 years and have 9-years no claims. I do drive a lot of miles though. I use comparison sites whenever it's due for renewal, and this is half the cost it's been in the previous 5 years! If I insured the same car at my parents address, it's £160 a year, but where I live is just outside a big city and its street parking rather than a drive, so I think that factors in too.
Car maintainence is also sadly accurate. Due to the miles I commute I've factored in 2 tyres per year, annual service, and a few hundred a year for repairs and oil/filter change etc. The car is 9 years old, but I only purchased it early this year. It's been very well cared for by my uncle since new and well maintained with low mileage. Technically, if I don't have any repairs next year, that figure could be much lower, but I'd rather overestimate it as I do lots of driving usually, so there's a good chance of repairs needing doing to keep it in good condition.
Pet insurance - that's 2 dogs. I'm tied in to the policy as one of my dogs will eventually need at least one hip replaced. As I get multi pet discount, it works out cheaper to keep the other dog on the policy rather than move her over to a new policy. I almost fainted when I saw that figure at renewal, but there's no way I could pay £7k+ for a new hip and the associated physio/hydrotherapy afterwards without the insurance, and then if his other hip goes, I'd be stuffed! He's been diagnosed with hip dysplasia in both hips, so we're hoping to get him another couple of years out of his current hip. Poor thing
In entertainment, I've factored in 1 meal out or takeaway per month, things like wool (as I like to crochet and make gifts for people), also included is the cost of cigarettes I know I need to quit, but I'm struggling. I have changed to a cheaper brand and reduced the amount I smoke and I'm also trying to move over to roll ups, but again, it's not easy. I have also put in here things like Xbox live, dog toys/accessories/training classes/treats and have given an average based on the last 6 months bank statements. I may be able to reduce this slightly though.
The holiday one is annoying really. I've not had a holiday anywhere for 14 years, but before I realised we had essential work needing doing on the house, I booked a holiday with my mum as I was pretty confident I was able to clear the remaining debt and build the savings before I go away in April, so she's paid for that upfront and I'm paying her back. Maybe I should've put that as a debt? It'll be paid in February and is all inclusive, so I'll only need minimal spending money. My hubby is staying home as we certainly couldn't afford boarding fees for the dogs. Had I have known we needed the work doing, there's no way I'd have booked this. We decided to forgo a honeymoon and holidays before having pets, so it's not a regular thing, and an absolute one off that has unfortunately come at the wrong time.
There's definitely some areas I need to reassess so I keep going forward instead of going backwards though. I might do some shopping around this afternoon and play with some comparison sites re the car and pet insurance for the other dog.0 -
In which case I would definitely add it as a debt and not a regular monthly amount that you're putting by every month for the year
Pet insurance... yep it's a pain. Mak sure you read your policy very carefully - apparently for life no longer means that, as I found out with one of my cats. I have 4 and the two oldest are no longer insured. Axa stopped doing pet insurance and when they passed my policies over to whoever it is now it went up 200% to over £120 a month for the two old cats. They would be happy to quote me a NEW policy but excluding ANY previous conditions (one cat has had a lot of claims, the other had ONE bout in her life of cystitis, it never occurred again) - but anything vaguely relating to any acute condition would also be excluded. SO now I insure the two younger cats (as they're bengals) and my two oldies I self insure. AT £120 a month it soon adds up although right now I use that money to over pay debts then once I'm done I will put that aside should it be needed. If I need it before then I will just put it on a card and 0% it The difference is they're really quite old and I will only put them through treatment if they will have a good quality of life after. Thankfully I have a vet who I trust to tell me if it's the right thing to do or not for them
Dog food - I'm guessing you have shopped about online for prices? I find VetUK often have offers on the food I buy - my 4 have James Wellbeloved (bengal butt... think GSD butt... feed them the wrong thing and eurgh!) and a pouch each a day of Asda's own - but I often get the dry food with a 5, 10 or 15% off through that site
Smoking... the obviously answer is quit. As someone who's never smoked that's an awful lot easier for me to say and I know that But if you want to try then why not contact your GP and get the patches etc on the NHS?
The rest of entertainment - wool is expensive. Fact of life I crochet too (not much anymore) so I know! But snoop about on FB pages for crafters near you and ask if anyone has any odds they're wanting to get rid of for free/cheap and see it as a challenge I once made a gorgeous shoulderbag with loads of ends that I worked in with a base colour (so doubling up the whole way but only the base stayed the same for more than a few rows). Dog toys and classes - if this is a priority to you then that's fine. It's about working out what you can reduce to pay off the debt quicker and get your emergency savings replenished. That doesn't mean you're not allowed to live!
Eating out: vouchers are your friend! Tesco clubcard vouchers or places like Pizza express always have places you can get a 2-for-1 coupon I refuse to eat there if I don't have a code or voucher lol Just because I'm a skinflint doesn't mean I'm a bore 
Car insurance - random, but check and see if it comes down if you included one of your parents as a driver? I suspect you're right and the problem is the address and on road parking The fact is that it's more likely to get damaged by passing traffic who will keep driving and the insurers will up the price for that. Also if a number of claims have been made for that area they will see it as a high risk anyway, on road or off, and up it goes again. Our village had a spate of break ins last year and it was one guy... nothing since they caught him but everyones policies rose.
Good luck! DFW Nerd #025DFW no more! Officially debt free 2017 - now joining the MFW's!
My DFW Diary - blah- mildly funny stuff about my journey0 -
Not sure how much of that car insurance figure is accounted for by breakdown cover, but we currently have our breakdown with AXA for £58 a year - it includes all the "vital" bits too - well worth a look, and having used them when we were on holiday earlier this year, we were extremely impressed with the service.
With the SOA, where there are things that you list as setting money aside for monthly (so car repairs etc) make sure this money does actually get put into a separate account - I presume there's no cash showing currently as you've used it for the house & car bits?
Something we've found invaluable - our current accounts allow us to have online savings accounts linked to them. The rates aren't great for the basis ones, but it does mean we have separate accounts set up for things like car expenses, entertainment, holiday etc - the money just comes out of the joint account as an automatic transfer that we set up after payday, and because it's not anywhere so obvious, there's not the temptation to dip into it for other things!
I'm inclined to agree with you about putting aside an over estimation for car stuff in particular - if there is a surplus there when your tax needs renewing, then switch that to paid either 6 monthly or annually as there is no extra charge for doing this - your current monthly DD carries a small premium.
If family buy you christmas presents think about requesting things like dog toys/treats., wool etc as presents. think stuff you need, rather than stuff you want. Knitting/Crochet can be a fab hobby which can at least to an extent pay for itself if you make useful things! For wool you can also look for bargain jumpers in charity shops and unravel, I believe? You could even try a request on your local freecycle? Might be someone having a clear-out, you never know!
If you have a Pets at Home locally keep your eye on their special offers for pet food.
Silly question - you've said you're not driving at the moment - and presumably haven't been for a while, so is that fuel spend correct? If not, then if this the money that is currently paying for cabs etc?
Good idea to play around with comparisons on insurance for home and car - I'd be inclined to leave the pet one alone though, if it currently covers everything you need. Follow Martin's guide to insurance savings on the others, though.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Hey, you're in a similar income bracket to us, with 2 adults! Finally I can comment with some confidence
Well done on weathering that storm of redundancy. Here are some thoughts I have re your SOAStatement 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................ 1258
Partners monthly income after tax....... 1236
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2494
Monthly Expense Details
Mortgage................................ 446
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 1.27
Council tax............................. 89
Electricity............................. 40 Have you had a look at whether you can bring this & gas down? Will depend on your energy usage, and property type, but as a comparison we're in a smaller 3 bed semi and pay about £50/ month for both gas and electricity on dual fuel. Also look at switching/ changing tariff if you've not for a while. We are the 'put a jumper on types', though
Gas..................................... 40
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 0
Mobile phone............................ 50 Is that both of you? Handset included?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 29
Groceries etc. ......................... 200 Some might say you can bring this down a bit, but I've found that if you include packing lunches this is about right. We usually come in at £170 and I'm quite frugal
Clothing................................ 50
Petrol/diesel........................... 200 Ow, but I suppose there's not much you can do about this in the short term?
Road tax................................ 16
Car Insurance........................... 65 I feel your pain
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 52
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17
Pet insurance/vet bills................. 73 again, ow!
Buildings insurance..................... 8
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 5
Entertainment........................... 200 Here's where I disagree with other posters - this a marathon, not a sprint. You need to do what you do to keep on chugging. We have £150 each a month (has to cover all personal spends, socialising, alcohol, lunches, coffees etc) so £100 each seems reasonable to me.
Holiday................................. 100
Emergency fund.......................... 25
Union (work)............................ 14
Total monthly expenses.................. 1835.39
Assets
Cash.................................... 0
House value (Gross)..................... 75000
Shares and bonds........................ 0
Car(s).................................. 2300
Other assets............................ 0
Total Assets............................ 77300
Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 65000....(446)......4
Total secured & HP debts...... 65000.....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Bank O/D.......................950.......30........18.9 These are the absolute devil and one of the trickiest debt to get rid of. Do you have a plan for paydown?
Bank O/D.......................250.......30........0 Is it definitely 0, or do you pay a fee per day?
Credit card....................487.......100.......19.9
Parents........................1400......100...... .0
Total unsecured debts..........3087......260.......
Monthly Budget Summary
Total monthly income.................... 2,494
Expenses (including HP & secured debts). 1,835.39
Available for debt repayments........... 658.61
Monthly UNsecured debt repayments....... 260
Amount left after debt repayments....... 398.61 Do you have this left over each month?
Personal Balance Sheet Summary
Total assets (things you own)........... 77,300
Total HP & Secured debt................. -65,000
Total Unsecured debt.................... -3,087
Net Assets.............................. 9,213
Created using the SOA calculator
I think it's a question of priorities. If you put your debts into a calculator like http://www.stoozing.com/calculator/snowball-calculator.php you could have a play with different scenarios re paydown. But as you've identified, insecurity re husbands job has hit you hard, so perhaps an income replacement fund is of more importance than hitting the debt repayment hard. Different people are motivated in different ways. If it makes you feel more secure to get rid of the debt, then turn your attention to that.
Re the essential work on the house, I imagine future work required isn't in the budget? Do you have quotes for work, and is this something your insurance would cover? Probably not, but always hopeful. Do you have an idea of the cost? It would be something that I'd want to represent in the budget if so, so you get a handle of the true costs you're working with.
What works for us is using YNAB, which is essentially a zero based budgeting app. Other zero based apps are available, as it does cost money! It helps me make decisions on priorities, and you can set goals to get your budget lines to certain balances. You can probably do the same using envelopes, or an excel sheet. If you are working towards a specific goal (or goals) I think it helps to know what works for you to support progress. Some people really do well by joining challenges, others with visual representations of progress (adding a pebble to a bowl for every £100 saved, colouring in a square for every £10 paid off, that kind of thing). I like data and numbers so that's what I look at. 0 -
Groceries - could probably cut back. I like to use Aldi, local butchers/green grocers, etc. But currently I'm having to shop at Tesco as its the closest supermarket and I have to get a taxi there. I also included dog food in this - usually around £45-£50 a month.
As you can't get to the shops, could you get Tesco to deliver? Would it be cheaper than a cab? They often do deals where you get free delivery if you spend over a certain amount or £xx off your first online shop. It may help?Pet insurance - that's 2 dogs. I'm tied in to the policy as one of my dogs will eventually need at least one hip replaced. As I get multi pet discount, it works out cheaper to keep the other dog on the policy rather than move her over to a new policy. I almost fainted when I saw that figure at renewal, but there's no way I could pay £7k+ for a new hip and the associated physio/hydrotherapy afterwards without the insurance, and then if his other hip goes, I'd be stuffed! He's been diagnosed with hip dysplasia in both hips, so we're hoping to get him another couple of years out of his current hip. Poor thing
I also have a dog with hip dysplacia and he's just been referred to Fitzpatricks for something else which is going to use up my whole limit. No advise here but I feel your (and the dogs!) pain.In entertainment, I've factored in 1 meal out or takeaway per month, things like wool (as I like to crochet and make gifts for people), also included is the cost of cigarettes I know I need to quit, but I'm struggling. I have changed to a cheaper brand and reduced the amount I smoke and I'm also trying to move over to roll ups, but again, it's not easy. I have also put in here things like Xbox live, dog toys/accessories/training classes/treats and have given an average based on the last 6 months bank statements. I may be able to reduce this slightly though.
Xbox Live - do you buy monthly or yearly? I get this for my DS yearly as part of his birthday present. I us the website CDKeys as you get discounted codes for the XBox/Playstation etc.
Smoking - that old nugget. Talking as an ex-smoker I know how hard it is to quit. I don't know if there still is but there used to be an amazing support thread on MSE run by Sue-UU. I used Champix from the Doctors but stopped taking them after 3 weeks. I couldn't have done it without using this website. It got me through and I'm still smoke free almost 8 years on! It is possible.
Have you looked at making your own dog treats?
I hope you might find some of this helpful?
NaomiMCredit Cards NOV 2019 £33,220.42 Sept 2023 £19,951.00 Tilly Tidy 20223/COLOR] Sept £43.71 Here's my diary: A Ditherer's Diary Again0 -
I think you could cut groceries down and stop the entertainment until you get on track. You don't need Xbox live or dog treats. Bit rubbish I know but if you can build up an emergency fund the peace of mind will be a fantastic feeling.
As for smoking. My husband switched to e cigs and its way cheaper. Smells better too!0 -
Fireflyaway wrote: »My husband switched to e cigs and its way cheaper. Smells better too!
Couldn't possibly smell any worse could it !!
Better still, quit altogether, i`ve lost 5 family member's to smoking related diseases, mainly cancer, all were under 60, its such a waste, it really is.
Stopping would improve your bank balance, they way you smell and taste things, and most importantly, your health.
Dont mean to preach, but once your dead, its too late.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
sourcrates wrote: »Couldn't possibly smell any worse could it !!
Better still, quit altogether, i`ve lost 5 family member's to smoking related diseases, mainly cancer, all were under 60, its such a waste, it really is.
Stopping would improve your bank balance, they way you smell and taste things, and most importantly, your health.
Dont mean to preach, but once your dead, its too late.
That's awful Sourcrates - and really makes you stop and think.
Personally I'd avoid e-cigs like the plague. Nobody currently has ANY idea what the long term effects of those might be - and it could yet be that they're not a great deal better than the "evil weed" itself.
Give up MrsMs - go on, you know you want to, and THINK of how much extra money you'll have if you pack in the smokes once that debt has gone?!🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
In which case I would definitely add it as a debt and not a regular monthly amount that you're putting by every month for the year
Pet insurance... yep it's a pain. Mak sure you read your policy very carefully - apparently for life no longer means that, as I found out with one of my cats. I have 4 and the two oldest are no longer insured. Axa stopped doing pet insurance and when they passed my policies over to whoever it is now it went up 200% to over £120 a month for the two old cats. They would be happy to quote me a NEW policy but excluding ANY previous conditions (one cat has had a lot of claims, the other had ONE bout in her life of cystitis, it never occurred again) - but anything vaguely relating to any acute condition would also be excluded. SO now I insure the two younger cats (as they're bengals) and my two oldies I self insure. AT £120 a month it soon adds up although right now I use that money to over pay debts then once I'm done I will put that aside should it be needed. If I need it before then I will just put it on a card and 0% it The difference is they're really quite old and I will only put them through treatment if they will have a good quality of life after. Thankfully I have a vet who I trust to tell me if it's the right thing to do or not for them
The pet insurance is a necessary evil. It's so hard to have pets, but they're worth every penny. My life revolves around my dogs. I lost my 14 year old cat last year, and my 15 year old cat in July. They were insured for their first 7-8 years and I never needed to spend anything other than vaccinations/fleaing/worming. The biggest expense was losing them. I think that was around £250 to put them to sleep, cremate them and get their ashes back.
Dog food - I'm guessing you have shopped about online for prices? I find VetUK often have offers on the food I buy - my 4 have James Wellbeloved (bengal butt... think GSD butt... feed them the wrong thing and eurgh!) and a pouch each a day of Asda's own - but I often get the dry food with a 5, 10 or 15% off through that site
The dogs are raw fed. I buy in bulk and get lots of freebies from the butcher so their freezer is usually always stocked up I've started using a local supplier for some minces whilst I'm out of action, and get free delivery. When I drive I can get 3 whole fresh tripes for £2, so that figure will come down when I'm back to driving!
Smoking... the obviously answer is quit. As someone who's never smoked that's an awful lot easier for me to say and I know that But if you want to try then why not contact your GP and get the patches etc on the NHS?
I have tried many times. I don't think I've been properly ready before, so I need to get my head sorted. It'd save me a fortune!
The rest of entertainment - wool is expensive. Fact of life I crochet too (not much anymore) so I know! But snoop about on FB pages for crafters near you and ask if anyone has any odds they're wanting to get rid of for free/cheap and see it as a challenge I once made a gorgeous shoulderbag with loads of ends that I worked in with a base colour (so doubling up the whole way but only the base stayed the same for more than a few rows). Dog toys and classes - if this is a priority to you then that's fine. It's about working out what you can reduce to pay off the debt quicker and get your emergency savings replenished. That doesn't mean you're not allowed to live!
Wool on eBay isn't too bad. I've managed to get some good deals on there with some partly used and also unwanted wool. I do need to order a specific colour to finish a blanket (gift for my newest nephew), but at £1.67 per ball, it's not too bad. Will maybe start looking at local selling groups if I can find anything - I need to build up those savings as a priority!
Eating out: vouchers are your friend! Tesco clubcard vouchers or places like Pizza express always have places you can get a 2-for-1 coupon I refuse to eat there if I don't have a code or voucher lol Just because I'm a skinflint doesn't mean I'm a bore
we have a wonderful local carvery -£7.99 each in the week, £2 each for a soft drink...and no washing up afterwards! I didn't realise you could get vouchers for things like eating out? How do you do that?
Car insurance - random, but check and see if it comes down if you included one of your parents as a driver? I suspect you're right and the problem is the address and on road parking The fact is that it's more likely to get damaged by passing traffic who will keep driving and the insurers will up the price for that. Also if a number of claims have been made for that area they will see it as a high risk anyway, on road or off, and up it goes again. Our village had a spate of break ins last year and it was one guy... nothing since they caught him but everyones policies rose.
Sadly, it doesn't I did once have a police van ruin my front wing when the car was parked outside the house! Thank goodness it was the police though as they knocked on, couldn't apologise enough, and sorted it immediately! There were lots of officers that had to come out to assess the damage so the whole street got a bit of drama for a few hours it was probably more drama than we'd all seen in years! Car insurance is so frustrating with the cost in a higher risk area, but again, it's one of those things you have to swallow and I can't get to work without the car, so it's a necessary evil!
Good luck!
Thank you!0
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