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  • FIRST POST
    • bilko89
    • By bilko89 8th Nov 17, 4:09 PM
    • 123Posts
    • 262Thanks
    bilko89
    Need to Fix my Finances
    • #1
    • 8th Nov 17, 4:09 PM
    Need to Fix my Finances 8th Nov 17 at 4:09 PM
    Hi all.

    The task is to sort my financial life out. I'm fed up constantly borrowing and ending up in a bigger hole than what I was in. I have no emergency cash incase something happens (car repair outwith warranty, lose job etc.....), and seem to be paying into a never ending pit of debt.

    Below is my SOA, I have to add is that the Unsecured Debts listed as paying £0 per month have no agreements in place after I slipped on payments for them a couple of months ago. I just don't know how I can start to offer them anything.

    The Presents cash is Christmas basically. £850 over two months. Once I sort myself out, I want to be able to budget things like this over the year, just now I'm not!!

    I welcome all comments, no matter how brutal!

    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.................... 1

    Monthly Income Details

    Monthly income after tax................ 1728.46
    Partners monthly income after tax....... 0
    Benefits................................ 512.04
    Other income............................ 0
    Total monthly income.................... 2240.5


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 50
    Rent.................................... 320 (50 to arrears)
    Management charge (leasehold property).. 0
    Council tax............................. 325 (160 to arrears)
    Electricity............................. 65
    Gas..................................... 65
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 74.5
    TV Licence.............................. 32.25 (20 to arrears)
    Satellite/Cable TV...................... 49 (recently downgraded)
    Internet Services....................... 0
    Groceries etc. ......................... 217
    Clothing................................ 0
    Petrol/diesel........................... 90
    Road tax................................ 5.25
    Car Insurance........................... 52.07
    Car maintenance (including MOT)......... 25 (arnold clark autocare)
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 10
    Life assurance ......................... 10
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 425 (this and next month for xmas)
    Haircuts................................ 20
    Entertainment........................... 42 Odd days out
    Holiday................................. 0
    Emergency fund.......................... 0
    Car Finance............................. 215.59
    Total monthly expenses.................. 2092.66



    Assets

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



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 207......(50).......0
    Total secured & HP debts...... 207.......-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    ARC Europe.....................80........1.........0
    Lowell (4 accts)...............1050......12........0
    Secure Recoveries..............193.......0.........0
    Sunny..........................457.25....166...... .0
    WDA............................621.45....40....... .0
    Credit Card....................516.18....30........39.9
    Lending Stream.................57........0.........0
    Wescott (2 accts)..............1859......0.........0
    Provident......................273.......0........ .0
    Capital One....................329.65....0.........0
    Uncle Buck.....................307.......0.........0
    Payday Express.................121.......0.........0
    Total unsecured debts..........5864.53...249.......-



    Monthly Budget Summary

    Total monthly income.................... 2,240.5
    Expenses (including HP & secured debts). 2,092.66
    Available for debt repayments........... 147.84
    Monthly UNsecured debt repayments....... 249
    Amount short for making debt repayments. -101.16


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -207
    Total Unsecured debt.................... -5,864.53
    Net Assets.............................. -6,071.53


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    SPC10 #560
Page 1
    • cheeky-peach
    • By cheeky-peach 8th Nov 17, 4:51 PM
    • 26 Posts
    • 16 Thanks
    cheeky-peach
    • #2
    • 8th Nov 17, 4:51 PM
    • #2
    • 8th Nov 17, 4:51 PM
    Assuming you're in a mobile contract (and that value is for two adults?) - look out for SIM only deals when you are able to.


    Is your food bill this static every month?


    How long do your arrear payments have left to run?
    • Mnd
    • By Mnd 8th Nov 17, 6:24 PM
    • 227 Posts
    • 260 Thanks
    Mnd
    • #3
    • 8th Nov 17, 6:24 PM
    • #3
    • 8th Nov 17, 6:24 PM
    Why no water rates, included in council tax?
    Is there a reason your partner can't earn and help out
    Agreed about the mobiles, we pay 20 for 2
    You can't afford 800+ on christmas to be honest.there is a separate thread about Christmas on a budget.
    Your rent seems very low is this correct.

    Hope this helps, good luck
    • enthusiasticsaver
    • By enthusiasticsaver 8th Nov 17, 7:01 PM
    • 4,681 Posts
    • 8,788 Thanks
    enthusiasticsaver
    • #4
    • 8th Nov 17, 7:01 PM
    • #4
    • 8th Nov 17, 7:01 PM
    Paying £850 on Christmas when you are in arrears with essential bills like rent and council tax let alone loans is crazy. You have 2 children and can easily just get something for £50 for them and you and your partner could just get something small for each other and token presents for everyone else. Cut present list as much as possible by speaking to family and friends and maybe agreeing to just buy for children. Why do you feel under pressure to spend so much when you can't afford it? Christmas is supposed to be a happy family time but getting further into debt by not paying your bills is unwise. Speak to all your creditors and pay a token £5 to the ones you are paying nothing to then make a sensible plan to pay off these debts next year and build up an emergency fund.
    5 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • datlex
    • By datlex 8th Nov 17, 11:08 PM
    • 1,408 Posts
    • 1,210 Thanks
    datlex
    • #5
    • 8th Nov 17, 11:08 PM
    • #5
    • 8th Nov 17, 11:08 PM
    Why no water rates, included in council tax?
    Is there a reason your partner can't earn and help out
    Agreed about the mobiles, we pay 20 for 2
    You can't afford 800+ on christmas to be honest.there is a separate thread about Christmas on a budget.
    Your rent seems very low is this correct.

    Hope this helps, good luck
    Originally posted by Mnd
    If the OP is in the North East and living in council housing could be that low.
    • bilko89
    • By bilko89 8th Nov 17, 11:41 PM
    • 123 Posts
    • 262 Thanks
    bilko89
    • #6
    • 8th Nov 17, 11:41 PM
    • #6
    • 8th Nov 17, 11:41 PM
    Assuming you're in a mobile contract (and that value is for two adults?) - look out for SIM only deals when you are able to.


    Is your food bill this static every month?


    How long do your arrear payments have left to run?
    Originally posted by cheeky-peach
    Yes two mobile contracts. Our phones are completely fine, contracts up in mid 2018, this is certainly something I would be looking at thanks.

    Yes, we spend roughly £40 or under per week, including any other cleaning products etc we may need in a particular week. Aldi was a great discovery to be honest!

    I'm £900 in arrears with Rent, a long way away to clearing that on the current repayment I have agreed.
    2 months left on the Council Tax arrears
    TV License will be done by May.
    Last edited by bilko89; 08-11-2017 at 11:53 PM.
    SPC10 #560
    • bilko89
    • By bilko89 8th Nov 17, 11:51 PM
    • 123 Posts
    • 262 Thanks
    bilko89
    • #7
    • 8th Nov 17, 11:51 PM
    • #7
    • 8th Nov 17, 11:51 PM
    Why no water rates, included in council tax?
    Is there a reason your partner can't earn and help out
    Agreed about the mobiles, we pay 20 for 2
    You can't afford 800+ on christmas to be honest.there is a separate thread about Christmas on a budget.
    Your rent seems very low is this correct.

    Hope this helps, good luck
    Originally posted by Mnd
    Yes water rates are included in my CT here in Scotland

    My partner is currently looking for work after 6 and a half years out (lost her job a month before she was due to go back after maternity leave). Our youngest is now in nursery so that was always the plan.

    As above, its a great suggestion and one I'll be taking up on once the contracts are up.

    Christmas is always a weak spot for me, we love seeing the kids faces and the other kids in the family. To give you perspective, it's £300 each on the kids, £50 each between my partner and I and £150 on everyone else (family). I'm going to have a look at the christmas on a budget thread, thanks!

    Yes, I'm in North Lanarkshire, the council rent is ridiculously low and we're in a back and front door terrace with 2 bedrooms!

    Thanks for your help
    SPC10 #560
    • bilko89
    • By bilko89 8th Nov 17, 11:56 PM
    • 123 Posts
    • 262 Thanks
    bilko89
    • #8
    • 8th Nov 17, 11:56 PM
    • #8
    • 8th Nov 17, 11:56 PM
    Paying £850 on Christmas when you are in arrears with essential bills like rent and council tax let alone loans is crazy. You have 2 children and can easily just get something for £50 for them and you and your partner could just get something small for each other and token presents for everyone else. Cut present list as much as possible by speaking to family and friends and maybe agreeing to just buy for children. Why do you feel under pressure to spend so much when you can't afford it? Christmas is supposed to be a happy family time but getting further into debt by not paying your bills is unwise. Speak to all your creditors and pay a token £5 to the ones you are paying nothing to then make a sensible plan to pay off these debts next year and build up an emergency fund.
    Originally posted by enthusiasticsaver
    I just love Christmas but like you say, is it worth starting off the year catching up again? No, it's not! I will certainly be looking at the amount I'm spending.

    I'll get cracking on with my budget, allowing for those payments. Should I be building up an emergency fund at the same time? Is there a rule of thumb to how much of a fund I should build ( 2 months wages?) Thanks.
    SPC10 #560
    • chelseablue
    • By chelseablue 9th Nov 17, 9:35 AM
    • 2,285 Posts
    • 2,811 Thanks
    chelseablue
    • #9
    • 9th Nov 17, 9:35 AM
    • #9
    • 9th Nov 17, 9:35 AM
    Sorry if this sounds harsh, but £300 on each child?

    My son is 3 and his main present will be about £50 and then a few other smaller things to open, will probably spend £100 on him altogether
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • ReadingTim
    • By ReadingTim 9th Nov 17, 9:41 AM
    • 2,147 Posts
    • 3,048 Thanks
    ReadingTim
    Christmas is always a weak spot for me, we love seeing the kids faces and the other kids in the family.
    Originally posted by bilko89
    Would you rather see a smile on a kid's face at Christmas, or a debt collector at the front door in the New Year?
    • bilko89
    • By bilko89 9th Nov 17, 11:09 AM
    • 123 Posts
    • 262 Thanks
    bilko89
    Sorry if this sounds harsh, but £300 on each child?

    My son is 3 and his main present will be about £50 and then a few other smaller things to open, will probably spend £100 on him altogether
    Originally posted by chelseablue
    It's something I taken from my mum and dad. Now I've had a LBM, it's something that definitely needs addressed.
    SPC10 #560
    • Hiddenidenity
    • By Hiddenidenity 9th Nov 17, 12:12 PM
    • 5,318 Posts
    • 26,103 Thanks
    Hiddenidenity
    You can really cut Xmas, for example I have 3 small ones, 8 years, 6 years and 3. I won't spend £300 in total for xmas for everything.

    My kids get 'something they want, something they need, something to wear and something to read'

    I came to an agreement with family we don't buy gifts, the children make small token gifts to close relatives (Homemade cards/cookies)

    I don't spend any extra on Xmas dinner than a 'normal' roast dinner.

    We have created some amazing memories doing activities that are free or really low cost, baking/movie nights when a movie is on normal tv, making cards/ making decorations/ going on winter walks etc.

    I know it doesn't work for everyone but time and fun definitely means more to my smalls that what gifts are under the Xmas tree.
    DFW £1783.71/£7348.71 Rent Arrears £571.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
    • enthusiasticsaver
    • By enthusiasticsaver 9th Nov 17, 12:20 PM
    • 4,681 Posts
    • 8,788 Thanks
    enthusiasticsaver
    I just love Christmas but like you say, is it worth starting off the year catching up again? No, it's not! I will certainly be looking at the amount I'm spending.

    I'll get cracking on with my budget, allowing for those payments. Should I be building up an emergency fund at the same time? Is there a rule of thumb to how much of a fund I should build ( 2 months wages?) Thanks.
    Originally posted by bilko89
    Well done for accepting what has been some harsh criticism re your Christmas spending plans. As chelseablue says depending on how old your kids are you do not have to spend £300 on each of them to give them a good christmas. You can do it within budget and next year from January save in a separate account for it. Why give yourself the stress of finding that sort of money when you don't have it?

    The general rule with emergency funds is £1k is a good start as most emergencies can be sorted with that - an emergency house repair or car repair. You rent but you do have a car so I think aiming for £500 is a good start until the debt is gone. After that aim for 3 months expenses.
    5 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 9th Nov 17, 12:21 PM
    • 4,681 Posts
    • 8,788 Thanks
    enthusiasticsaver
    It's something I taken from my mum and dad. Now I've had a LBM, it's something that definitely needs addressed.
    Originally posted by bilko89
    They might have been able to afford it and nothing wrong with it if it is affordable. As you are behind with rent, council tax and debts you most definitely cannot afford it.
    5 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • nkkingston
    • By nkkingston 9th Nov 17, 3:59 PM
    • 441 Posts
    • 496 Thanks
    nkkingston
    Did you partner get any advice about losing her job during maternity leave? It's possible it was all above board, but it's also very possible it wasn't, and it's worth checking out in case she was treated unfairly.
    Mortgage
    June 2016: £93,295
    November 2017: £80,096.79
    • bilko89
    • By bilko89 10th Nov 17, 2:04 PM
    • 123 Posts
    • 262 Thanks
    bilko89
    Did you partner get any advice about losing her job during maternity leave? It's possible it was all above board, but it's also very possible it wasn't, and it's worth checking out in case she was treated unfairly.
    Originally posted by nkkingston
    Thank you all for your replies. First port of call is Christmas funds! Next year moving forward, paying off debts and creating an emergency fund.

    nkkingston, It was an accountant she worked for, apparently the company went "bust" but we later found out he was working out of the same office just under a new guise. She received some money but it was a pittance as she'd only worked there for just over a year.
    SPC10 #560
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