Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Feb 17, 9:56 AM
    • 939Posts
    • 8,015Thanks
    Treadingonplaymobil
    £67,031.92 is a frightening number indeed....
    • #1
    • 12th Feb 17, 9:56 AM
    £67,031.92 is a frightening number indeed.... 12th Feb 17 at 9:56 AM
    £67,031.92. Seriously. £67,031.92. That is a SCARY number. I can't believe our debt has peaked (and it is the peak, I am determined) at this level.

    Our light bulb moment actually happened a few months back, but it's taken since then of wrangling utilities and carefully watching out income/outgoings (using You Need a Budget) to really figure out where we were overspending and how the monthly shortfall of anything from £200-£1,000+ was happening.

    We have literally nothing to show for this debt, it's just crept up over the past 8 years or so, and has always been at manageable levels, but back in October we realised we were spending more on credit cards each month than we were paying off.

    We committed that cardinal sin of taking out a consolidation loan, but alongside it we looked really carefully at our spending over the next couple of months, budgeted realistically for what we spend and have (I think) picked off all the easy 'low hanging fruit' of budget cuts and really identified why we were overspending.

    The main reason for the debt is, erm, me. Not that I'm the biggest spender (neither of us are amazing), but because I am self employed with a hugely variable income and basically worked out our budgets on the basis I would always earn my 'best' month's income. Which was, with hindsight, maybe a TINY bit deluded.

    The aim of this diary is to keep us on track with actually reducing our debt every single month, not doing it in a three steps forward, two (or four) steps back sort of way. Having sat down and put our numbers into the whatsthecost site, it appears that we are looking at 7 years and 1 month of repayments to clear the debt (and that's assuming we can get rid of the shortfall showing below). I REALLY want to reduce this term as that just seems bonkers.

    SOA below, with a couple of explanatory notes.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 250 (variable, but this is the minimum I have earned in any month in the last 5 years)
    Partners monthly income after tax....... 2711.86
    Benefits................................ 192
    Other income............................ 0
    Total monthly income.................... 3153.86


    Monthly Expense Details

    Mortgage................................ 698
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 174 (including overpayment for a period when we messed up during a house move 18 months ago and didn't restart the direct debit for the new property. Will drop by a little under £50 after either March or April, can't remember which)
    Electricity............................. 52 (gas and electricity are one combined DD, I haven't checked the exact split but the total is £104)
    Gas..................................... 52
    Oil..................................... 0
    Water rates............................. 104 (also including a debt from previous property, but I think this will be included for another 6 months or so. I'm not sure what our actual usage is)
    Telephone (land line)................... 18.5 (includes internet)
    Mobile phone............................ 85 (£45 for my contract, which I use for work as well, £40 for DH)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0 (included in landline cost)
    Groceries etc. ......................... 520 (Includes £40 for one lot of school lunches. I am REALLY struggling to reduce this, but feel I could and should be able to!)
    Clothing................................ 100 (growing children, plus see notes below re clothes)
    Petrol/diesel........................... 225 (90% DH commuting costs)
    Road tax................................ 16.27
    Car Insurance........................... 25.22
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 50
    Childcare/nursery....................... 70 (this will disappear in April as child 3 gets free 15 hours)
    Other child related expenses............ 81.85 (music/swimming lessons x2, cubs and beavers, National Trust membership as they love visiting them)
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 27.07
    Contents insurance...................... 0
    Life assurance ......................... 16.26
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 90
    Haircuts................................ 20
    Entertainment........................... 135
    Holiday................................. 75
    Emergency fund.......................... 25
    Total monthly expenses.................. 2707.29



    Assets

    Cash.................................... 0
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 800
    Other assets............................ 0
    Total Assets............................ 210800



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 173733...(698)......3.14
    Total secured & HP debts...... 173733....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................6880.21...156...... .0
    MBNA...........................9614.71...98....... .0
    Parental loan..................20000.....0.........0 (see notes below)
    Tesco loan.....................21000.....377.......10
    Total unsecured debts..........57494.92..631.......-



    Monthly Budget Summary

    Total monthly income.................... 3,153.86
    Expenses (including HP & secured debts). 2,707.29
    Available for debt repayments........... 446.57
    Monthly UNsecured debt repayments....... 631
    Amount short for making debt repayments. -184.43


    Personal Balance Sheet Summary
    Total assets (things you own)........... 210,800
    Total HP & Secured debt................. -173,733
    Total Unsecured debt.................... -57,494.92
    Net Assets.............................. -20,427.92


    Created using the SOA calculator at stoozing.
    Reproduced on Moneysavingexpert with permission, using other browser.


    Regarding the (relatively) high clothes expense, it is a combination of 3 growing children (8, 6 and 3), plus the fact that my job is in the fashion industry, and as a self employed person I need to have the right sort of 'look' in order to get work (think along the lines of a self employed personal shopper - people need to see you looking good in order to book with you).

    The parental loan was for a house deposit. The parent in question has no idea about our debts. She is not desperate for the money back and isn't charging us interest, but has asked us to save £150-200 every month into a savings account and then once we've saved a decent sum to either repay them or 'reborrow' it for work on the house (basically they want us to be able to make repayments if they suddenly need the extra income, but meanwhile are happy for us to benefit from it. I am not saving the money while our debt payments are so high - we are hoping to have paid enough off that if the parent ever needs it that we can reborrow it and pay them back). This isn't great, but realistically I think the best solutions is to treat it as the lowest priority for snowballing - once we have paid back the other debts we will throw the entire £630+ at this debt.

    So, there is a freaking enormous shortfall every month, which is somewhat depressing. Most months it is covered by the fact that I earn more than my 'bare minimum', but it is those months where it isn't covered that the debt creeps up again, and I am a total disaster for going 'oh well, we've spent on the credit card, we might as well keep going' and buying more clothes or something for the house - this is probably a significant proportion of our debt problem.

    We have managed to get rid of the balance on the one credit card we were spending on, so the remaining ones are both on 0% deals (although one expires in September). I have not cut up the remaining credit card, because we don't have an emergency fund in case of eg boiler repairs, but it has not been used for all of a month, and I hope to keep it that way.

    A DMP or similar isn't really on my horizon right now - I feel like we should be able to make the cuts to make our budgets balance, and I am optimistic that as my income goes up (when I can work more as child 3 starts school) that we will be able to make overpayments.

    My plan for now is:
    1) Try to wiggle those budget numbers around enough that we don't have a shortfall any more.
    2) Make a plan for any months where I make extra - do I use it for an emergency fund, as a fund to cover future months' shortfalls, to throw money at the debt to try to reduce minimum payments in case of future 'shortfall' months?
    3) Try to make more money. Not quite sure how this will work as I am largely limited to working around DH's working hours (I work evenings and weekends and the 5hrs childcare per week we are paying for for child 3).

    Now that's all down in black and white I am feeling a combination of relieved (to be clear on the numbers) and immensely stressed (by the semi-regular £180+ shortfall).

    Onwards and downwards (for the debt, not me)!

    edited to add: the original £67,031.92 figure was based on the total figure for the Tesco loan, which included all interest payable over the entire term of the loan. I have updated the debt figure in my signature and in all posts going forward as at 4th June 2017 to reflect that actual current debt balance rather than the balance plus interest over the lifetime of the loan. This has knocked £7,911.62 off the debt figure, but means that each monthly payment will have the interest for that month deducted from it, so it won't affect the DFD if I don't make overpayments.
    Last edited by Treadingonplaymobil; 04-06-2017 at 2:58 PM.
Page 22
    • Purplemumof2
    • By Purplemumof2 15th Mar 17, 5:36 AM
    • 5,083 Posts
    • 16,740 Thanks
    Purplemumof2
    Grr to the doctor, hopefully the referral will come quickly.
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: £7400.00 Cap 1: £547.06 BC: £4577.81 Overdraft: £2750.00

    AFD 5/10 NSD 2/10 LTW 11/15

    20p Savers 2017 £2 Savers 2017 50p Savers 2017 SPC 10 2017 #003
    • Treadingonplaymobil
    • By Treadingonplaymobil 15th Mar 17, 11:29 AM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Gosh, first day since starting I haven't given myself a list for the day. I really am not with it. Wish the call would come through with an appointment, am so distracted and Child 3 is really not receiving the world's finest parenting today!

    Made another little sale in my small business - it only makes a few quid a week, but because (a) i don't budget on the basis it will make anything and (b) it has no overheads unless I'm actually making money (and then it's only a percentage set aside for etsy fees and replacement stock), it always feels like free money.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • Verbatim
    • By Verbatim 15th Mar 17, 4:39 PM
    • 4,486 Posts
    • 12,960 Thanks
    Verbatim
    Hope you've got your appointment now.
    V
    CCs @0% £24k Dec 05 £19,621.41 Au £13400 S 12600 Oct £11,981 £9481 £7500 Nov £7250 D £7100 Jan 6950 F £5800 Mar£5400 May £4830 June £4660 July £4460 Aug £3200, S £900, £0 18/9/07 DFW Nerd 042
    • boxofpaws
    • By boxofpaws 15th Mar 17, 7:14 PM
    • 404 Posts
    • 1,674 Thanks
    boxofpaws
    Thinking of you TOPM
    Debt 03/01/17 = £42000
    Debt today = £31900
    • Kantankrus Mare
    • By Kantankrus Mare 15th Mar 17, 7:25 PM
    • 4,787 Posts
    • 10,921 Thanks
    Kantankrus Mare
    Hardly surprising you aren't "with it" TOPM.!

    Difficult to not worry and go over every possible outcome and its knock on effects in your mind. (I'm just the same)

    Hopefully you will get your referral quickly and put your mind at rest.

    Fingers crossed for you.

    X
    Make £10 a day challenge Jan/£215.84/ Feb £146.45/ Mar £192.55/Apr £171.20/ May £156.40/june £95.55/ Jul £383.85/Aug £211.60/Sep £212.45
    Walk 2000 miles in 2017....1452.69 miles
    • Treadingonplaymobil
    • By Treadingonplaymobil 15th Mar 17, 7:35 PM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Thanks for checking in everyone, I really appreciate it. I finally have an appointment, after a bit of chasing. It's not until the 28th, but I'm pleased to be able to (sort of) park it to one side for now and deal with it at the appointment.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • motivated
    • By motivated 15th Mar 17, 7:36 PM
    • 2,228 Posts
    • 3,140 Thanks
    motivated
    it always feels like free money.
    Originally posted by Treadingonplaymobil
    Did someone say free money

    Hope you're feeling a little less anxious TOPM.
    X
    Emptying my lake with a teaspoon
    Short term goal £535/£1796
    EF/1k
    • Treadingonplaymobil
    • By Treadingonplaymobil 15th Mar 17, 7:37 PM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Haven't even had a NSD, bought two packs of biscuits earlier (comfort eating? Me? Never). However, my little business made another sale today, quite a good sized one, so I figure I'm ending the day in profit
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • Bobarella
    • By Bobarella 15th Mar 17, 10:23 PM
    • 10,473 Posts
    • 69,440 Thanks
    Bobarella
    Thanks for checking in everyone, I really appreciate it. I finally have an appointment, after a bit of chasing. It's not until the 28th, but I'm pleased to be able to (sort of) park it to one side for now and deal with it at the appointment.
    Originally posted by Treadingonplaymobil
    Very glad to hear that. Shame for the wait though.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Mar 17, 5:18 AM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Managed to start today by allocating an extra £50 profit from yesterday's sales, so that's nice. I've mentioned already that I already have April's 'salary' in my business account ready to go, and now I've almost made enough to cover May's business costs (this is for regular stock expenses, insurance, professional development and saving for accountant's fee) and will start putting by May's salary too. Even if I don't do any more business this month, my end of month invoices will cover all of the remainder of May's costs and salary and almost all of June's costs. Honestly, I haven't had such a handle on my business expenses and profit for years, so it's a total revelation to have money in the bank to cover future expenses and salary, takes such a weight off my mind. I'm very slightly further ahead than I was this time last month, which means I am inching my way towards being three months ahead with my expenses/salary.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • Purplemumof2
    • By Purplemumof2 16th Mar 17, 5:26 AM
    • 5,083 Posts
    • 16,740 Thanks
    Purplemumof2
    Managed to start today by allocating an extra £50 profit from yesterday's sales, so that's nice. I've mentioned already that I already have April's 'salary' in my business account ready to go, and now I've almost made enough to cover May's business costs (this is for regular stock expenses, insurance, professional development and saving for accountant's fee) and will start putting by May's salary too. Even if I don't do any more business this month, my end of month invoices will cover all of the remainder of May's costs and salary and almost all of June's costs. Honestly, I haven't had such a handle on my business expenses and profit for years, so it's a total revelation to have money in the bank to cover future expenses and salary, takes such a weight off my mind. I'm very slightly further ahead than I was this time last month, which means I am inching my way towards being three months ahead with my expenses/salary.
    Originally posted by Treadingonplaymobil
    Well done ToP, that's great x
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: £7400.00 Cap 1: £547.06 BC: £4577.81 Overdraft: £2750.00

    AFD 5/10 NSD 2/10 LTW 11/15

    20p Savers 2017 £2 Savers 2017 50p Savers 2017 SPC 10 2017 #003
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Mar 17, 6:58 AM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Week 5: Day 5

    Right, slightly back on it today. I'm not going to set my ambitions overly high for the next couple of weeks, but the important thing is to keep on track with spending and saving, so that we don't get out of this mini crisis and discover that we're more in debt than we were before.

    To do today:
    1. put a laundry on and get it out on the line this morning.
    2. I was going to say NSD, but I need to order new moisturiser, so I'll aim to spend nothing except buying that. Pleasing to have the money ready and waiting in my personal kitty for this.
    3. check valued opinions for surveys.
    4. get some housework done while the older children are at school so we all have time to sit down and do some colouring or a game this afternoon - I've been so distracted all week that I've hardly spent any time actually present in the moment with them.
    5. try to get ahead on work this morning while child 3 is at preschool for three whole hours so I've got less to do this evening.
    6. Don't comfort eat - instead aim for plenty of veg and a good walk to keep my head clear.

    To do this week:
    1. List old unloved handbag on eb@y.
    2. Order birthday presents for child 2 and child 3.
    3. Order any party supplies needed.
    4. Make more candles when oils arrive.
    5. Finish current socks and start knitting a new pair for my dad's birthday.
    6. Pay preschool bill (there should only be one more, smallish, bill after this one, then free hours kick in. Hurrah!).
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • angelpye
    • By angelpye 16th Mar 17, 7:31 AM
    • 988 Posts
    • 3,667 Thanks
    angelpye
    Morning ToP, sounds like you are trying to be kind to yourself so well done for that. At moments like this we can only do what we can do and not increasing the debt seems a good enough aim to me! I am weirdly curious as to what moisturiser? I think its probably because mine is a little expensive so I see it as a treat for myself. I am also wondering if I need something a little more hardcore on my forehead/around my eyes recently - damn facial expressions! Share if you don't mind, don't if you do!
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Mar 17, 8:37 AM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Morning ToP, sounds like you are trying to be kind to yourself so well done for that. At moments like this we can only do what we can do and not increasing the debt seems a good enough aim to me! I am weirdly curious as to what moisturiser? I think its probably because mine is a little expensive so I see it as a treat for myself. I am also wondering if I need something a little more hardcore on my forehead/around my eyes recently - damn facial expressions! Share if you don't mind, don't if you do!
    Originally posted by angelpye
    Funny you should say that, I'm actually about to try a new moisturiser! I've always bought expensive ones and am a total skincare addict, but I've been really impressed with a few products from The Ordinary range, so I'm trying the moisturiser. https://www.victoriahealth.com/product/Natural-Moisturizing-Factors-HA/12239/brand/The-Ordinary/1053
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • Macey1510
    • By Macey1510 16th Mar 17, 9:41 AM
    • 82 Posts
    • 287 Thanks
    Macey1510
    Hi Tops, I hope you have a good day...thinking of you.
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Mar 17, 4:22 PM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Hi Tops, I hope you have a good day...thinking of you.
    Originally posted by Macey1510
    Thanks Macey. It's lovely to have people check in on my little corner of the internet.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • angelpye
    • By angelpye 16th Mar 17, 5:37 PM
    • 988 Posts
    • 3,667 Thanks
    angelpye
    Funny you should say that, I'm actually about to try a new moisturiser! I've always bought expensive ones and am a total skincare addict, but I've been really impressed with a few products from The Ordinary range, so I'm trying the moisturiser. https://www.victoriahealth.com/product/Natural-Moisturizing-Factors-HA/12239/brand/The-Ordinary/1053
    Originally posted by Treadingonplaymobil
    Love that their stuff is vegan! Nervous I would react to it as use very simple products due to numerous reactions previously. I really want a regime for the beginnings of wrinkles though - before its too late!

    Thanks for the share and hope your day went well
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • Loulou4321
    • By Loulou4321 16th Mar 17, 6:07 PM
    • 2 Posts
    • 17 Thanks
    Loulou4321
    Hi Tops, I've been following your post and you've inspired me to finally get a grip of my debts :/ You are doing so well! So I've just got an account and commented for the first time on here. I was just wondering which snowballing tool/site that you used as on the one I was looking I can't see the debt free date facility, because I noticed you say you made an overpayment and it reduced your DFD by a couple of months, which must be motivating!
    Thank you!
    Ps. Sorry to hear about your appointment, fingers crossed it's nothing serious x
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Mar 17, 7:44 PM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Love that their stuff is vegan! Nervous I would react to it as use very simple products due to numerous reactions previously. I really want a regime for the beginnings of wrinkles though - before its too late!

    Thanks for the share and hope your day went well
    Originally posted by angelpye
    They sound very technical, but actually they're no different to what's out there, but very cheap. The other good thing about most of their products is that they are single-active-ingredient ones, so actually less chance of a reaction - I've got quite sensitive skin and haven't struggled so far with them. Have been trying to find the 'right' moisturiser for years though, and have spent a small fortune in the process, so will be interested to see how this measures up.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Mar 17, 7:45 PM
    • 939 Posts
    • 8,015 Thanks
    Treadingonplaymobil
    Hi Tops, I've been following your post and you've inspired me to finally get a grip of my debts :/ You are doing so well! So I've just got an account and commented for the first time on here. I was just wondering which snowballing tool/site that you used as on the one I was looking I can't see the debt free date facility, because I noticed you say you made an overpayment and it reduced your DFD by a couple of months, which must be motivating!
    Thank you!
    Ps. Sorry to hear about your appointment, fingers crossed it's nothing serious x
    Originally posted by Loulou4321
    Hurrah, well done on taking the first step! I use the snowballing tool on www.stoozing.com. I saved the snowball the first time i uploaded my figures, and each time I make a payment I redo it to see whether the DFD has moved forward another month. There may be a more clever tool out there, but the slow way is working for me
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: £55,011.96/1st May 2025
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,824Posts Today

7,701Users online

Martin's Twitter