My Financial Life Laid Bare!!

jenevieve

Hi everyone,

As recommended, I am posting a list of my income, outgoings & debts so that if there are any suggestions to help things along, please feel free to comment.

Monthly wage: - between 1650 - 1800 (monthly unsocial hrs vary therefore monthly pay not consistent).

Outgoings:-
Rent - 400
Elec - 11
Gas - 14
Water - 18
Landline phone - 9.98 basic package plus calls (usually about £15 in total) (Recently changed to one-tel as cheaper than BT)
Mobile - 33 (have reduced tariff from 40 but when contract ends next Feb will be looking to reduce further)
Community charge - 65
Car Tax 22.47
Mobile phone insurance 7.99
Boots vision plan (for contact lenses) 12.75
Gym - 34 (an acknowledged waste as I hardly ever go but am tied into year's contract til next March)
Broadband - 17.99 (invaluable for my job so a necessary evil)

Total - 666.67 (is it me or is anyone else a bit freaked by the number of the devil in there???!!! :eek:

Debts:
Northern Rock - APR 6.9% - 9614.82 - 157.62 per month - due to finish Dec 2010
Cahoot flexible loan - APR 8.5% - 5900 - approx 115 per month
HSBC loan - APR 7.9% - 9547 - 318.24 per month - due to finish May 07
HSBC overdraft - EAR 14.8% - 476.56 (down from 1000)
Mint C/C - 0% - 836.83
RBS C/C - 0% - 1872.21
Alliance & Leicester current account - 800 overdraft

Is it worth changing the cahoot flex loan to a fixed one? APR is 5.8% and if I borrowed 6000, it would be £99 per month for 6 years. Or should I stick with the flexible one?

Thanks for all help and advice given

Jen

Bestthingsinlifearefree

Hi Jen,

Had a quick look and your outgoings seem very low e.g nothing in there for food or car maintenance / petrol etc etc

The good news is that your HSBC loan finishes in 18 months or so and once this is paid that will free up £318 per month to throw at the other debts.

So there is light at the end of the tunnel. But first have a look at your out goings and try to include everything and then it will be possible to cut back etc.

You need to look at why you have run up this debt and get back to living within your means and the key to that is a realistic budget AND a spending diary.

You are on fairly good money so with sustained focus you will be able to turn your situation around.

DO NOT TAKE ON ANY MORE DEBT. NO EXPENSIVE HOLIDAY NEXT YEAR. NO EXPENSIVE CHRISTMAS BINGE. NO UPGRADING THE CAR ETC ETC.

you have done the right thing coming here and taking the first few steps to get back in control.

Keep going !!!

Good Luck !

frugglewump

Is it worth changing the cahoot flex loan to a fixed one? APR is 5.8% and if I borrowed 6000, it would be £99 per month for 6 years. Or should I stick with the flexible one?

This is something I have also been debating. If the end-date with the fixed loan lower apr is about the same as the current flexible loan then it's probably a good idea as it reduces the monthly outgoings. For my position though i'm sticking with the flexible loan as it will allow me to overpay with no penalty when one of my cc debts finishes soon.

Cahoot annoyed me - i had the 6.9% apr flexible loan, but over the first year it slowly crept up to 8.5%. I'm not sure i trust them to give me the 5.8% on the fixed loan without ppi.

jenevieve

Thank you Bestthingsinlifearefree, you have helped put things into perspective and I think I am going to start a spending diary to really look at what I spend my money on. I know I am a bit of a glutton for magazines and probably am easily spending £20 plus a month on them so I need to get realistic.

Frugglewump - cahoot are a bit cheeky. For new applicants, the flexible loan APR is 6.9% but they whack it up to what we are paying within a few months I think. I think I am going to stick with the flexible one, cos like you, I can then pay off extra money when I can. And I would only be saving £20 on the monthly payment, which I think I could probably achieve by scrutinising my spending.

Thanks for your comment.

Jen

jenevieve

I spend probably about 45 per month on petrol (have very economical little micra thank God) and food spending is erratic as i shop as and when, so my spending diary will hopefully add a bit more structure to things!

Willsnarf1983

just bumping it


Will

windym_2

Could you check your house insurance to see if your phone is covered, then ditch your mobile phone insurance.

What about getting your eyes done? My friend is going to have hers done and says it will save her a fortune.

Change broadband supplier to cheaper one? What tarif are you on with one.tel I see they now charge only 7.99 for new customers for fully inclusive tarif.

jenevieve

thanks windym will look into the things you have suggested. I presume by 'getting your eyes done', you mean lasar eye surgery? This doesn't interest me at the moment, and as it is a relatively new surgical technique, I personally would want to see further research into long-term effects before committing myself.
Will def look at cheaper broadband tho.
Thanks.

chilli_dog

I think i heard Martin on radio 2 about laser eye surgery.

Check out ebay for it. look for laser eye treatment.

something to do with selling them cheaper rather than having empty hospitals and doctors sitting on there bum.

sorry if it's a rubbish suggestion but i have had way to many glasses of wine tonight and feeling a bit dizzy.

Martin

robnye

you said you can spend up to £20 a month on magazines....... how about starting a magazine club with a couple of friends and sharing the mags...... thats what my wife does...... a friend passes on a lot of mags to her, she gives some different ones back, then she passes hers onto another friend..... finally they are donated to care home/doctors.....

jenevieve

Hi everyone,

A very very small glimmer of light - in the last 6 weeks I have made £80 by selling books and CDs on Amazon Marketplace and it is all going to pay my HSBC overdraft off. Not a great amount in the grand scheme of things but better than nothing!!

Today I have started a spending diary - determined to see where all my cash goes and am going to take in packed lunches and drinks to work - should save myself at least £20 a week there.

Onwards and upwards..............