Don't know where to start! £10k debt

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Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details

Monthly income after tax................ 700
Partners monthly income after tax....... 0
Benefits................................ 137.6
Other income............................ 1216
Total monthly income.................... 2053.6


Monthly Expense Details

Mortgage................................ 785.3
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 137
Electricity............................. 62
Gas..................................... 62
Oil..................................... 0
Water rates............................. 37
Telephone (land line)................... 0
Mobile phone............................ 55
TV Licence.............................. 12.43
Satellite/Cable TV...................... 7.99
Internet Services....................... 5
Groceries etc. ......................... 250
Clothing................................ 32
Petrol/diesel........................... 15
Road tax................................ 12
Car Insurance........................... 40
Car maintenance (including MOT)......... 4.5
Car parking............................. 10
Other travel............................ 15
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 8
Buildings insurance..................... 10.84
Contents insurance...................... 10.84
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 197.5
Haircuts................................ 15.5
Entertainment........................... 100
Holiday................................. 41
Emergency fund.......................... 0
Total monthly expenses.................. 1970.9



Assets

Cash.................................... 40
House value (Gross)..................... 299000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 299540



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 122950...(785.3)....0
Total secured & HP debts...... 122950....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................799.5.....50........23.5
MBNA...........................2850......25........0
Tax credit overpaymen..........728.88....91.11.....4
HMRC tax.......................1401......100.......4
HSBC overdraft.................3000......60........20
Dad ...........................837.5.....167.5.....0
Total unsecured debts..........9616.88...493.61....-



Monthly Budget Summary

Total monthly income.................... 2,053.6
Expenses (including HP & secured debts). 1,970.9
Available for debt repayments........... 82.7
Monthly UNsecured debt repayments....... 493.61
Amount short for making debt repayments. -410.91


Personal Balance Sheet Summary
Total assets (things you own)........... 299,540
Total HP & Secured debt................. -122,950
Total Unsecured debt.................... -9,616.88
Net Assets.............................. 166,973.12


Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.
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Comments

  • WannabeRich
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    I'm determined that 2018 is the year I finally climb out of my debt, but I really don't know where to begin.

    Where do I start?!

    I know my income seems low, but I work part-time for a local business and I'm a freelance writer on top. My freelancing pays very well, but is obviously sporadic. I haven't accounted for it in my income in the SOA.

    I also have a husband. We currently don't have a joint account, but he keeps saying we should get one so that we can work out my debts together and get ourselves in a good position to move house. He currently pays me £700/month towards the bills, which all come out of my account. My 2 kids live with us.

    I'm hopeless with money, and always have been. I just used the "Bean" app to go through my account looking for subscriptions and I found £144 worth of crap leaving my account EVERY MONTH. ?! I've cancelled them all now, but that tells you how rubbish I am.

    My debts: the Dad debt is fixed and finishes in June. The Tax Credit overpayment is also fixed and finishes in September. The HMRC debt is the shortfall I will have after I pay what I can of my tax bill on Jan 31st; I basically incurred the maximum penalties last year and didn't account for them.

    My overdraft is v expensive. The MBNA is 0% till January 2019; the Barclaycard is 23% (can I get that reduced?).

    I'm very keen to be told what to do!
  • WannabeRich
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    I've tried to track my expenses here (in the SOA) but that is the budgeted amount: in reality I spend more, but how can I see that easily? I use QuickBooks self-employed, but it's no good for actually tracking my daily spending.
  • WannabeRich
    WannabeRich Posts: 33 Forumite
    edited 18 January 2018 at 11:48PM
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    The only thing I won't do is sell my car - it'd be worthless to anyone else, but it's the love of my life and I won't sell it. I could never get the equivalent car for £500, I've had it since it was a year old (13 years ago) and it's amazing.

    I realise I sound awful, being £10k in debt and laying down the law, but I'd rather sell a kidney.
  • WannabeRich
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    I've just seen I was here a year or so ago, in almost the same situation. But I've almost cleared Dad's debt.
  • Little_Miss_Winner
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    Hi just a couple of questions from me. Your husband pays you housekeeping of £700 a month is that for everything all bills and spends?

    Whats the other income of £1216?
  • WannabeRich
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    Hello!

    Yes, that's for the main bills (house, council tax, fuel, water, home insurance). Then he'll buy food on top!

    The other income is his £700, plus £366 child maintenance, and £150 from a regular column I write.
  • fIIsion
    fIIsion Posts: 19 Forumite
    Options
    If im reading your monthly expenses details correctly, you are budgeting almost £200 a month on presents? Maybe get smaller gifts?

    Look at your utility usage; are you on best tariffs for your circumstances?
    Check to see if you are on the correct council tax band. Ask barclaycard for a lower interest rate (worth a try). Once your dad is paid off, I would use that money towards the barclaycard.

    Mobile phone bill is quite high; is it on contract and if so, how much time is left on the contract until it expires?

    keep a spending diary.
    House deposit..............£30000 :j
  • Little_Miss_Winner
    Options
    Is this right - have you added his contribution twice?

    Monthly Income Details

    Monthly income after tax................ 700
    Partners monthly income after tax....... 0
    Benefits................................ 137.6
    Other income............................ 1216
    Total monthly income.................... 2053.6


    If you have incomings off £700 (his) £366 (child) £150 (coloumn) thats your £1216. You then have added the £700 seperately again?
  • WannabeRich
    Options
    Hello - thanks!

    I just today switched our British Gas tariff, so it'll drop from £124/month down to £95.

    The presents thing - I know. I have 2 kids and becase their Dad and I are divorced, I feel obliged to give them a £150-ish birthday each, all by myself. Then Xmas is always a total spend of £600.

    Mobile bill: that's one for me (£36/month) and one for my teenage son. His contract actually expires in 3 months. Mine is another 18 months.
  • WannabeRich
    Options
    Sorry, no - the first £700 is what I earn a part-time local job every month.
This discussion has been closed.
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