Really wannabe a debt free wannabe!

lincsdan86

Hey Everybody,

As we are new to the forum (well ex members and not been on for a while). Lets say hello, I'm Dan, there is my partner Don and our unborn baby, currently living it up in a 5* mobile hotel (Don's womb )

We really want to get our debts into a more managable state before our new arrival at Christmas (21st December)

Currently we are calculating our total debts to add up to around about £21k made up as the following:
Car Loan: approx £6k
Don's Loan: approx £3k
Ex house Loan: approx £4k
Don's CC: approx £3.6k
My CC: approx £1.8K
My bike Loan: £1.7k (cc in parents name)
OD (mine): £200
OD (don) £400
Our salaries are as follows I earn £17k a year and Don earns £12.5k, taking home £1,118 (me) and £850 (don)

Our outgoings are as follows:

Rent: £250
Car loan: £126
Bike loan: £100
CC (don): £160
CC (mine): £110
Food: £160
Phones: £95 (don running 2 phones, dont ask me WHY!!????)
Loan (don): £80
Loan (mine): £156
Petrol (mine): £40
Petrol (don): £140
Bike Insurance: £72
Computer HP: £12

Totalling £1,501 approx

Leaving us with approx £460 a month spare, but dunno where this goes??? Has anyone got ANY suggestions how we can reduce our debts quicker?? And just any other general pieces of advice to help us.

We have started to do work at home as im an accountant and it is easily done from home (currently only 1 client tho :-( ) but we are trying.

Any advice/help wud be great

Thanks

D&D

IWantToBeFree_2

If you don't know where the surplus is going, try keeping a spending diary, writing down EVERYTHING you spend so that you can see what you are spending, and this will help you pin point things you need to cut down on.

The mobile phone costs are huge, running 2 is not good when you are in debt, can you not cut one back, and if its contract, lower the tarif to the lowest possible until you can cancel?

You seem to have missed off quite a lot from that SOA, utilities, landline, internet costs, car insurance, car maintenance, spends on clothes, haircut, perscriptions, presents etc...

Deep_In_Debt

Hi Dan and a warm welcome to the forum.

Can you post up an SOA? I would post the link up but am rubbish with techology. Someone will be along soon with the link.

Keep posting, you've come to the right place for help and support.
Good luck.

Sorry, not been much help! Just wanted to say hi.

beanielou

Hi & welcome
Look forward to seeing your SOA.

MrsTinks

Linky poo thingy

http://www.makesenseofcards.com/soacalc.html

lincsdan86

IWantToBeFree wrote: »

If you don't know where the surplus is going, try keeping a spending diary, writing down EVERYTHING you spend so that you can see what you are spending, and this will help you pin point things you need to cut down on.

The mobile phone costs are huge, running 2 is not good when you are in debt, can you not cut one back, and if its contract, lower the tarif to the lowest possible until you can cancel?

You seem to have missed off quite a lot from that SOA, utilities, landline, internet costs, car insurance, car maintenance, spends on clothes, haircut, perscriptions, presents etc...

Thanks we will try doing a daily spend.

Donna is running both a contract phone and a pay as you go phone, the contract phone her brother uses as she says that the signal is rubbish but she hasnt tried using it at work etc which is when she ses it mkost. I have tried to make her use it but she doesnt want to take it off her brother and leave em without a phone.

The reason why some of the above are missed off is because she dont pay them, currently we are living with my brother so only pay rent and none of the other things. donna used her cc to pay her car insurance, her car is under warranty thus doesnt pay for mainenance, I cant remember the last time i brought some new clothes. haircuts, grade 2 all over so doesnt figure. perscriptions (dont pay for as don is except)

I will try to do a SOA, when i get home this evening

MrsTinks

Ehhhh if her brother uses the phone then SURELY he should be paying for it??? Otherwise tell her to transfer it to PAYG (depending on how long the contract has run) and let him pay top ups when he needs to. Surely you guys can't be paying for his mobile calls?

lincsdan86

MrsTine wrote: »

Ehhhh if her brother uses the phone then SURELY he should be paying for it??? Otherwise tell her to transfer it to PAYG (depending on how long the contract has run) and let him pay top ups when he needs to. Surely you guys can't be paying for his mobile calls?

That is what I have said but he is only 15 and doesnt have the money and she would rather have someone use it then for it to go to waste but i have tried to tell her that she can use it!! which would save us around £30 a month, which might seem a small amount but every little helps (to coin a phrase from tescos)

I will try and speak to her about it later and see what the outcome is this time.

CLAPTON

when you're going the SOA, its essential you stop saying e.g. 'don used her CC for car insurance'... that simply means you incurred debt to pay for the insurance ... instead you need to SAVE a little each month for all those yearly or one off things like insurance, birthday/xmas / holidays / clothes / things for the baby etc otherwise you will always be just putting them on CC and will never be debt free.

SouthernSoftie

lincsdan86 wrote: »

That is what I have said but he is only 15 and doesnt have the money and she would rather have someone use it then for it to go to waste but i have tried to tell her that she can use it!! which would save us around £30 a month, which might seem a small amount but every little helps (to coin a phrase from tescos)

I will try and speak to her about it later and see what the outcome is this time.

Yes, £30 a month is £360 a year!
As the mother of a 15 year old I know it is hard as they want a mobile but tbh if he doesn't have the money he needs to earn it.... and I don't necessarily mean by getting a job but by doing things to get top ups. My son has jobs to do, he doesn't get pocket money as such, as doesn't need it imo, but I will give a £5 top up, usually every fortnight, on the cheapest PAYG phone we could get. That way when it's gone, it's gone. He has learnt to use the home phone to speak to friends when it is free, apart from the friend who's home line is cut off, and he can speak to her on bebo.
It's a life lesson kids need to know and will help him budget in the long run.

tyllwyd

What is the situation with your living arrangements once the baby arrives? Because if you had to find a privately rented flat, you could be looking at £400 for rent, £100 for gas/electric, £100 for council tax. I think you both need to sit down and look at the possibilities - you need to start saving NOW and and watching every penny while Don is still earning. Does she get maternity pay?

The car loan and the bike loan - are they both essential? Is there any possibility of selling and paying off either of these to get something cheaper?