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  • FIRST POST
    • Stayathomemum36
    • By Stayathomemum36 4th Feb 18, 2:06 PM
    • 34Posts
    • 119Thanks
    Stayathomemum36
    Making The Changes and Sticking to it!
    • #1
    • 4th Feb 18, 2:06 PM
    Making The Changes and Sticking to it! 4th Feb 18 at 2:06 PM
    Hi,

    Ive been a lurker on here for a while but have decided that I want to document our journey to allow us to look back on it! We are a family of 4 and due my OH working away for periods of time I became a SAHM to our children ( 4 & 7). Over the last 10 years debt has run up due to bad budgeting, essential home repairs, over spending and we have transferred from 0% to 0% card without actually making a real inroad into the balance.

    I am a savvy shopper when it comes to utilities, insurance, mortgage and I feel that I have these at the best possible level for now. Where we can save money is the Amazon spending, better meal planning and day to day spends. We just fritter money away and it has to stop!

    Since November we've made a real effort and have now had 3 consecutive months where we have not used our overdraft on our main current account despite having some large car repair bills and the dishwasher to replace Do I reduce this over draft facility now? Its £550.

    We had a loan with Santander that was taken out over 2 years to purchase a trailer (for camping), we paid this off 6 months early at the beginning of december (£597). I have also been chipping away at the remaining debts and have paid £818.00 this month due to careful spending and as DH had some extra pay.

    So the remaining debts are as follows
    1. B/Card - £15535 @ 15%
    2. RBS - £6636 @ 12%
    3. MBNA - £6148 @ 0%
    4. Next - £458 @22.9%

    Total: £28,777.74

    Emergency Fund: £366.70
    Holiday Fund: £55.06

    I don't think we can get any transfers to a 0% card just now so I am concentrating on paying the highest rate first which is Next. I have reduced this by almost £200 since Jan.

    We have set up a separate current account with Nationwide to cover food, diesel, clothes etc and my task for this month is to split this up into a budget for the 4 weeks. I have done a meal plan for the full month so this should help with our food shop. At the moment we spend around £230 for the 4 of us (including toiletries and household).

    Will post some more later on but just wanted to say hello and that I've been inspired by reading others diaries! Ive joined the PAD and the £1000 emergency fund challenges too We just need to keep the momentum up.
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 4th Feb 18, 2:44 PM
    • 5,702 Posts
    • 11,259 Thanks
    enthusiasticsaver
    • #2
    • 4th Feb 18, 2:44 PM
    • #2
    • 4th Feb 18, 2:44 PM
    Well done on starting to tackle this now. You have a fair bit of debt so it will take you a while to tackle that but living within your income is the first thing. £818 debt reduction last month is great but you must be paying more than £200 per month in interest. That next card should be paid off asap and closed or cleared in full each time you use it.

    Something you may find useful is a spending diary and a soa which can be found on the DFW sticky.

    Good luck in sorting this out.
    Debt free and mortgage free and early retiree. Living the dream

    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
    • Stayathomemum36
    • By Stayathomemum36 4th Feb 18, 2:47 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    • #3
    • 4th Feb 18, 2:47 PM
    • #3
    • 4th Feb 18, 2:47 PM
    Well done on starting to tackle this now. You have a fair bit of debt so it will take you a while to tackle that but living within your income is the first thing. £818 debt reduction last month is great but you must be paying more than £200 per month in interest. That next card should be paid off asap and closed or cleared in full each time you use it.

    Something you may find useful is a spending diary and a soa which can be found on the DFW sticky.

    Good luck in sorting this out.
    Originally posted by enthusiasticsaver
    Thank you, I know we can do it and I'm disgusted that its got to this stage... Im just completing the SOA now
    • Stayathomemum36
    • By Stayathomemum36 4th Feb 18, 3:13 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    • #4
    • 4th Feb 18, 3:13 PM
    • #4
    • 4th Feb 18, 3:13 PM
    Ok here goes...the costs are for OH and I, in some cases its a combined bill and Ive split it for things like gas/elec and the landline & internet. I do feel really ashamed but also trying to be positive as we are tackling it.

    [font=courier new]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................ 3827
    Partners monthly income after tax....... 100
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3927


    Monthly Expense Details

    Mortgage................................ 583
    Secured/HP loan repayments.............. 248
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 130
    Electricity............................. 35
    Gas..................................... 35
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 18
    Mobile phone............................ 45
    TV Licence.............................. 12.34
    Satellite/Cable TV...................... 4.99
    Internet Services....................... 15
    Groceries etc. ......................... 275
    Clothing................................ 20
    Petrol/diesel........................... 60
    Road tax................................ 20
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 100
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 40
    Buildings insurance..................... 14
    Contents insurance...................... 14
    Life assurance ......................... 18
    Other insurance......................... 45
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 20
    Entertainment........................... 40
    Holiday................................. 75
    Emergency fund.......................... 250
    Total monthly expenses.................. 2192.33



    Assets

    Cash.................................... 400
    House value (Gross)..................... 170000
    Shares and bonds........................ 0
    Car(s).................................. 12000
    Other assets............................ 5000
    Total Assets............................ 187400



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 111000...(583)......1.74
    Hire Purchase (HP) debt ...... 10000....(248)......5
    Total secured & HP debts...... 121000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclay Card...................15500.....363.......15
    RBS............................6636......165...... .12
    MBNA...........................6148......65....... .0
    Next...........................464.......32....... .22.9
    Total unsecured debts..........28748.....625.......-



    Monthly Budget Summary

    Total monthly income.................... 3,927
    Expenses (including HP & secured debts). 2,192.33
    Available for debt repayments........... 1,734.67
    Monthly UNsecured debt repayments....... 625
    Amount left after debt repayments....... 1,109.67


    Personal Balance Sheet Summary
    Total assets (things you own)........... 187,400
    Total HP & Secured debt................. -121,000
    Total Unsecured debt.................... -28,748
    Net Assets.............................. 37,652
    • debtaghh
    • By debtaghh 4th Feb 18, 3:52 PM
    • 1,103 Posts
    • 3,334 Thanks
    debtaghh
    • #5
    • 4th Feb 18, 3:52 PM
    • #5
    • 4th Feb 18, 3:52 PM
    Well done on starting a diary , I will subscribe. Have you tried to see if you can get a 0%? There is something on here that you can check and it doesn’t affect your credit history.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,325 , Family £ 36,922 total debt £83,317

    Frugal living challenge # 10- £8000 presents/ food/ entertainment/clothes/shoes/haircuts
    • Stayathomemum36
    • By Stayathomemum36 4th Feb 18, 4:00 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    • #6
    • 4th Feb 18, 4:00 PM
    • #6
    • 4th Feb 18, 4:00 PM
    We have an almost 11 year old Golden Retriever and his insurance is becoming costly, in addition to the meds he now needs monthly. We have managed to get the vet to write the prescription which we then submit to a reputable online pharmacy - the saving per bottle is over 50% even adding in the prescription cost. So I will keep this up.

    We also pay a £15.50 fee to the vets each month (£186 annual) that covers his flea / tick / vaccinations, Ive spent this afternoon researching and i can get this cost down to £8 per month for his treatments then £40 for his vaccinations giving us a saving of just under £50 per year! I will transfer the £7.50 per month towards the debt reduction. It all seems like small amounts but I guess they will add up.
    • enthusiasticsaver
    • By enthusiasticsaver 4th Feb 18, 5:58 PM
    • 5,702 Posts
    • 11,259 Thanks
    enthusiasticsaver
    • #7
    • 4th Feb 18, 5:58 PM
    • #7
    • 4th Feb 18, 5:58 PM
    Do you really have £1100 spare each month or is this an aspirational soa rather than actual? I think you need a spending diary. Good you have emergency savings pot. I would check the groceries figure as that looks low for 4 people. You may need more in car maintenance. On the plus side you should have plenty of extra to chuck at the debt. Have you tried to get any 0% cards for balance transfers?
    Debt free and mortgage free and early retiree. Living the dream

    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
    • Stayathomemum36
    • By Stayathomemum36 4th Feb 18, 6:30 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    • #8
    • 4th Feb 18, 6:30 PM
    • #8
    • 4th Feb 18, 6:30 PM
    That!!!8217;s actual based on bank account although I should up the car maintenance and possibly clothing for the months when both kids need shoes...food spend is correct as oh works away for 2 weeks out of 4 so just me and the kids.
    • enthusiasticsaver
    • By enthusiasticsaver 4th Feb 18, 6:53 PM
    • 5,702 Posts
    • 11,259 Thanks
    enthusiasticsaver
    • #9
    • 4th Feb 18, 6:53 PM
    • #9
    • 4th Feb 18, 6:53 PM
    So do you actually know how you got to that level of debt when you have such a healthy surplus and seem to have a grip on budgeting.

    If you have had large car repair bills then definitely up the car maintenance although with a £12k car I am surprised that it needs a lot of work doing on it.
    Debt free and mortgage free and early retiree. Living the dream

    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
    • Stayathomemum36
    • By Stayathomemum36 4th Feb 18, 7:23 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    Yes, we didn’t always have that level of income and certainly weren’t good at budgeting. A lot of the debt has been carried for years and we’ve just not focused on paying it off.

    In terms of the car, it had to have a new front spring and a window motor along with normal wear and tear :/
    • Stayathomemum36
    • By Stayathomemum36 5th Feb 18, 7:45 AM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    Hello Week 2.5... Paid another £10 off my next account this morning. Busy day today taking the guide dog puppy we look after out and preparing for a parent council meeting tonight.

    I!!!8217;m astounded at the amount of craft stuff we have - guess thats where some of the money has went....Ive been making a point of doing activities with our 4 year old in the afternoons to use it up so we shall do some crafting after nursery today. Hoping for a NSD - number 6 since payday on 26th jan.
    Last edited by Stayathomemum36; 05-02-2018 at 8:05 AM.
    • Stayathomemum36
    • By Stayathomemum36 8th Feb 18, 1:43 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    Im still recovering from flu and have had a busy couple of days so Ive not been able to post and OH has been in charge around here - been interesting

    In terms of the debt repaying - As part of the PAD challenge Ive managed to pay another £19.74 to my next account giving a current balance of £440.74 reduced from £475.74 at the start of the month.

    General spending, our daughter needed some new dance tights and a wrap for her show so that was £16 out of my general spending budget and we needed diesel but thats budgeted for at £53.00 - we did go to sainsburys so I could collect the nectar points as we were in that area.

    I got a £10 amazon voucher for doing surveys and Ive added this to my account. Ive got a claim in for the meeting I attended on Monday so that will be another £38 towards my debt repayment.

    Getting back onto my meal plan after the flu and as the fridge / freezer look quite healthy I am going to delay my food shop for a few days. Other than that Im focusing on sorting the house out, using what we have in the house to amuse our daughter in the afternoons and hoping for a few NSDs.

    Almost forgot that I remembered that we had YNAB from a few years ago, Im going to get that going again too

    Now off to brush out a very mucky puppy, just as well it was a nice walk
    • redofromstart
    • By redofromstart 8th Feb 18, 2:13 PM
    • 1,122 Posts
    • 6,828 Thanks
    redofromstart
    Good luck with your journey, writing everything down really does help.
    • Stayathomemum36
    • By Stayathomemum36 10th Feb 18, 12:22 AM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    Quick but late update from me...dusted off my YNAB 4 and got the budgets and accounts set up, hopefully I manage to stick at it, most of the help on the website is geared towards the new YNAB but i cant afford to buy it, there was a time I would've just bought it and not bothered. My late night is because I was determined to get it all set up lol

    7 yr old son was sick at school today so we had a day at home and therefore a NSD - thats 3 this week so far. I also made another small payment to my next account of £2.50. Ive been using the CHIP app and have saved £35 in a month so I transferred £32 of this into my emergency fund which has taken it to the £400 mark - that was my goal this month so I'm delighted

    Used up some fruit tonight that would've been binned. I made up a topping for plum steamed puddings, it can sit in the fridge until needed on Sunday. We had quick pizzas tonight using mini tortillas from the freezer and I decanted the left over pasta into a jar and thats in the fridge to be used up. Finally the bread maker is on with ingredients for a fruit loaf, all from the store cupboard.

    Over £1000 paid to the debt this month, I know it cant be like this every month but its a start and we will keep chipping away at it. I also lost 1lb which is an added bonus!

    PS - Can someone tell me how to link to my diary in my signature? When I try I get error messages
    Payment a day challenge 2018 £400.24
    £1000 emergency fund challenge £410.81 / £1000.Started my Debt Free Diary: "Making the changes and sticking to it" Feb 2018.
    O/D £550/£0 Next £636 £435.00 CC Debt: £29031£28182.10
    • Drawingaline
    • By Drawingaline 10th Feb 18, 4:51 PM
    • 339 Posts
    • 1,214 Thanks
    Drawingaline
    There are a couple of Facebook groups I am in for YNAB, and plenty of people still use ynab4. If you need any help feel free to pm me and I can give you a link to the group's
    • Stayathomemum36
    • By Stayathomemum36 10th Feb 18, 6:50 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    thanks drawingaline - its just the budget bit for pre ynab debt that got me stumped!
    Payment a day challenge 2018 £400.24
    £1000 emergency fund challenge £410.81 / £1000.Started my Debt Free Diary: "Making the changes and sticking to it" Feb 2018.
    O/D £550/£0 Next £636 £435.00 CC Debt: £29031£28182.10
    • Stayathomemum36
    • By Stayathomemum36 11th Feb 18, 2:57 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    I've spent some time today putting the figures into a snowball calculator and according to that we could be debt free by Feb 2021 - So 3 years time . Its taken us a long time to accumulate the debt so it would be amazing if we could have it all paid off by then. If we can get our £1000 emergency fund set up that would really help, just under half way to the target at the moment. Hoping to have it in place by April. That means a lot more frugal living and we have some big family birthdays coming up in March and April so its not going to be easy

    Our daughter is 5 at the beginning of March and then theres mothers day and my sisters birthday. Im trying to work it all out in advance but worried about the impact of all these birthdays on our great start :/ I have set up a standing order to a separate account to help towards birthdays and christmas but that will only help from next month. We are also saving for Eurodisney in December, the balance was paid using DH bonus but we have eurostar and passports to buy. I set up a standing order towards these expenses in December. ..I guess its all feeling a bit impossible today.

    On a more positive note today I have cleaned up my phone by deleting contacts, photos and backed it all up. I also sorted out my inbox and the kids and I had a lovely walk with our dog and the Guide Dog pup. Also managed to pay a further £7.50 to my next account. I hope to have it paid by the end of March.
    Payment a day challenge 2018 £400.24
    £1000 emergency fund challenge £410.81 / £1000.Started my Debt Free Diary: "Making the changes and sticking to it" Feb 2018.
    O/D £550/£0 Next £636 £435.00 CC Debt: £29031£28182.10
    • Stayathomemum36
    • By Stayathomemum36 11th Feb 18, 6:42 PM
    • 34 Posts
    • 119 Thanks
    Stayathomemum36
    Oh 4 NSD this week too
    Payment a day challenge 2018 £400.24
    £1000 emergency fund challenge £410.81 / £1000.Started my Debt Free Diary: "Making the changes and sticking to it" Feb 2018.
    O/D £550/£0 Next £636 £435.00 CC Debt: £29031£28182.10
    • Drawingaline
    • By Drawingaline 17th Feb 18, 7:40 PM
    • 339 Posts
    • 1,214 Thanks
    Drawingaline
    Passports are so expensive, I have just got three for my boys, all children and with photos and check and send etc it was just shy of £200

    However they were posted on 7th Feb and all three were back yesterday the 16th, one renewal and two first ones, so super quick. Birth certificates came back today too.
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