That feeling again

JonnyBravo

andys15 wrote: »

When we had a moments I promised i would make it up to them. Going to disney is the promise. Yes the money(my money no credit for this) could have been used to pay a few debts, i am not denying the kids this trip.

Hi Andy,

I know you say this trip is not on credit but if you then need credit to pay for something else (eg paying your Gran back as you've stated you'll need to) then in effect this trip is on credit.
Like DD I'm not trying to twist a knife or the like but I am all for making people realise that all spending needs to be assessed in a situation such as the one you are in.

You sound determined.
I wish you luck.

gpkwells

Andy,

Rid the debt, build a cushion (as Ddad stated), and then enjoy life.

I can honestly say I (with the help of my super budgeting wife) will endeavour to never have debt again (other than my mortgage) as spending money that is mine is so much better!

By the way you are talking you can soon rid this debt, go harder and you can cut it MUCH sooner!

I wish you all the best and a happy future!

P.s. Glad you now got the wife on board!

Luckystepho

To be honest, you are not in a too bad position, ie you have, in theory, quite a large monthly surplus. I think if you keep a spending diary to see where it's going, and manage to cut back on groceries etc, you will be able to make a huge dent in your debts pretty quickly.

Especially as you seemed so determined now. All the best
xx

beanielou

Keep us posted on your journey.

neverdespairgirl

I think you have got used to being in debt, you see it as normal.

You have to cut your cloth properly - I would see £50k of debt (or £30k) as a massive problem, and wouldn't be spending 0000s of pounds on curtains, holidays, sofas, etc.

I think that you built up debt in the expectation of higher earnings paying them off, but now you have got there, you feel entitled to spend the higher earnings on yourselves. In effect, you've already spent your higher wages, so the entitlement isn't there yet.

If you've not yet booked the holiday, don't. It's crazy to whizz off to Florida at a huge cost when you owe so much money, especially to your family. It's crazy to spend £1.6k on blinds.

fedupnow

I wish I had your salary............. what do you do?

andys15

Well nearly 10 months on.. my new SOA

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 3400
Partners monthly income after tax....... 1550
Benefits................................ 138
Other income............................ 0
Total monthly income.................... 5088
Monthly Expense Details
Mortgage................................ 1284.29
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 138
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 32.8
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12.51
Satellite/Cable TV...................... 65
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 0
Car Insurance........................... 51
Car maintenance (including MOT).........
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 40
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 18.09
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 250
Total monthly expenses.................. 2722.6

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

Secured Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 225000....1284.29 5.34
Total secured debts........... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
dad............................22000.....1000..... .0
gran...........................2000.....100........ .0
virgin cc......................1400.......50.........0
furniture world................1440 60........0
hillarys blind.................0......0.......0
Total unsecured debts..........26840.....1210......-

Monthly Budget Summary
Total monthly income.................... 5088
Expenses (including secured debts)....... 2571.69
Available for debt repayments........... 2516.31
Monthly UNsecured debt repayments....... 1210
Surplus(deficit if negative)............ 1306.31


Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.


So after 10 months it is starting to come down fairly rapidly now. Best thing I did was properly budgeting our money. OH has her spends and I have mine(£400 each), and we have £250 for emergencies, but these cover road taxes, pet bills etc. We usually find something crops up everymonth which costs us close to £250. Or if we need more than £250 one month, we make sure we take it out of the next month, and we work on this principle regarding our spends. Other little things include cancelling sky sports when the footy season ends(will resume back in Aug but it saved £60), food is usually done fortnightly from ALDI, and we can often come in well under £300. Budgeting is the way ahead, we try and run our financial lifes as a small business, we spend a few hours before payday, working out how much we will lose from our budget that month because we have overspent the previous month, and it is really working, we are never overdrawn at the end of the month.

andys15

neverdespairgirl wrote: »

I think you have got used to being in debt, you see it as normal.

You have to cut your cloth properly - I would see £50k of debt (or £30k) as a massive problem, and wouldn't be spending 0000s of pounds on curtains, holidays, sofas, etc.

I think that you built up debt in the expectation of higher earnings paying them off, but now you have got there, you feel entitled to spend the higher earnings on yourselves. In effect, you've already spent your higher wages, so the entitlement isn't there yet.

If you've not yet booked the holiday, don't. It's crazy to whizz off to Florida at a huge cost when you owe so much money, especially to your family. It's crazy to spend £1.6k on blinds.

We did go to Florida, and enjoyed every minute.

andys15

neverdespairgirl wrote: »

I think you have got used to being in debt, you see it as normal.

You have to cut your cloth properly - I would see £50k of debt (or £30k) as a massive problem, and wouldn't be spending 0000s of pounds on curtains, holidays, sofas, etc.

I think that you built up debt in the expectation of higher earnings paying them off, but now you have got there, you feel entitled to spend the higher earnings on yourselves. In effect, you've already spent your higher wages, so the entitlement isn't there yet.

If you've not yet booked the holiday, don't. It's crazy to whizz off to Florida at a huge cost when you owe so much money, especially to your family. It's crazy to spend £1.6k on blinds.

blinds were crazy, but they have been paid without incurring interest. although the interest were no doubt added to the original cost.

Verbatim

Glad things are going well and that you enjoyed your holiday.

What happened about paying off your gran by March 09? I see you have repaid her £8k out of the £10k but it seems a bit tough that she's only getting her money back at £100 pm when you have £800 a month as "spends". But I expect she's wealthy enough to not need it back quickly?