SOA ooyah

DoWhatULove-LoveWhatUDo

eekiedee wrote: »

Still plugging the vauge holes trying to nail pdown every penny and its working too.
£160 if for my better half to buy stuff for the kids and a wee bit for her self too. I have asked her not to spend any more than this.

Gona set up a list of my debts on a spread sheet and work out the best way to reduce the bills.

Can anyone tell me if this part is true if I use my Credit Card for a purchase then I effectively get a month 'free' credit for that purchase - So if I religiously pay that amount I spent into the card that night (online) I should save a little on interest? ie ASDA shop is usually £300 once amonth with top ups through the month. petrol is £65 a visit. Just a though as every penny is now a prisoner.

I'm glad you're hard at work plugging the holes, just let us know about tax credit and family allowance when you get the info on those together.

As for the credit card. The answer is not necessarily. On a lot of cards interest is charged differently for different things and usually the money you pay is paid off the cheapest interest rate debt first.

So for example if you had used the card for a balance transfer in the past and were still paying that off at a low rate when you paid for the shopping it would pay that money off the balance transfer and begin charging you interest for the shopping at their standard or higher rate.

You would have to pay off all of the balance transfer amount before any money went towards paying off the shopping.

That's clear as mud probably.

eekiedee

Where are the old style boards?

DoWhatULove-LoveWhatUDo

I'm afraid I don't know how to do proper clickies but this link should get you there:

http://forums.moneysavingexpert.com/forumdisplay.html?f=33

Jacks_xxx

Eekie can I kick your @rse a little bit?

With all good intentions I promise.

I think it's pretty important at this stage of the game that you know exactly where every penny is going, so I'm concerned about this "£160 for the wife to buy things for the kids and herself " line in your SOA.

That's nearly £2k a year that I think probably ought to be going on debt repayment cos I can't think of what it covers that isn't already taken care of in your SOA - and I think it's a serious flaw in your budget.

Do you have £160 a month to spend?

So - if the kids are bought new clothes then that comes out of the clothing budget....

If they have food out then that comes out of the food budget...

If they get a haircut then that comes out of the haircuts budget...

If they have comics or sweets etc then maybe that should come our of the pocket money budget....?

If they go swimming, or have Brownies etc then that comes out of the entertainment budget...etc

Rather than you hand over £160 of money you really should be paying towards your debts and then you have no real idea what it's spent on.

Maybe your could ask your OH to keep a tally of where it goes for the next month? Does she know how serious your financial situation is?

Ooh I've juts had a brainwave. Have you played with the Snowball calculator yet?

You punch in all your debt details and it will tell you how long you'll be paying it off for and how best to do it.

Then try adding that £160 to the amount you currently pay every month and see how many years less you'll be in debt for because of it.... It's sobering stuff.

http://www.whatsthecost.com/snowball.aspx

I hope I haven't upset you or your OH with my advice honey, that wasn't my intention I promise, I just want to help.

Love Jacks xxx

PS I can't see Child Benefit or Family tax credit either. Have you been to entitled to.com to make sure you're getting everything you should?

eekiedee

Jacks
No offence taken
Okay I admit that the penny prison under scrutiny is is more akin to an open prison but it is a lot better than it was.
I know we are getting working towards a more budget oreintated home. Just means making changes and Im building a better picture everyday of where all the money goes. So far I have now got everything ring fenced albeit not itemised. Im introducing sepatrate budgets for the house and in the process of trying to see where it all goes. It will take time to perfect but no going back to the way it was.

Thanks all for ou help I have still got some info to add to my SOA - just a redistribution of some of the other figures but greater detail

I will get on to the snowball
Cheers

eekiedee

Thanks again for the snowball! Pretty Scarey

LilacPixie

eeK -
I know you want your wife to not work if possible but if you have a scary snowball figure maybe now would be the time to consider that for the greater good of your family she should maybe look at working. Maybe part time around your ours or something home based and flexible.

Jacks_xxx

:wave: Glad you're not offended hon. (Phew!)

I know I'm really really bossy and opinionated (and always convinced I'm right which is such an attractive quality! ) but I try to avoid upsetting anybody if I can.

It's just that on here, once I've thought something, I'm almost compelled to type it.

But enough about me and my compulsions!

You're right of course, this re-budgetting lark is a process.

We revised our plan ever so often in the first few months as we tried stuff out to see what things worked for us and which things felt like a cruel deprivation or waste of time.

Hubby was supposedly on the DFW bandwagon with me to start with - but it was hard for him because he is resistant to change at the best of times.

For example, the first year he renewed his fricken car insurance with his current insurer that he's been with for 200 years :rolleyes: even though I had found him a deal that would have saved us £350. (And it was better cover!) :wall: :wall: :wall: :wall:

But weirdly we didn't get divorced after that, :rolleyes: and every little success that I had, and the way the totals were coming down so fast - when they never ever had before - kind of seeped into his consciousness, and he started to think that maybe we were onto something.

I didn't know for sure that he was properly on board until year 2 when he found his own better car insurance deal on t'internet and got me to check it over before he signed up.

Plus I indoctrinated the kids....and they're allowed to nag him!

Don't be too scared of The Snowball. (He's bossy but he's your friend!) Whatever date it's giving you now is only "the" date if you don't change anything and you carry on as you are.

Every change you make to the budget frees up more money to pay down the debts which improves on it and brings it closer. :dance:

Ours was sometime in 2028 the first time I did it and I don't mind telling you that I nearly pooed my pants! These days it's saying January 2009, although I would really really love to manage it by Christmas if we can. :j

The biggest thing for us was probably joining the Grocery Challenge on Moneysaving Old Style.

I saved all my receipts in August 2007 and was horrified when I added them up and they totalled £650. My progress - if you can call it that - is in my sig where it says G.C. I miss my target a lot but I always spend a heck of a lot less than £650! (and the money I saved went on the debts.)

Anyway, I just wanted to say "keep at it".

Love Jacks xxx

Bunnyinthelights

Eek,
Your wife will be recieving £125 p/m for CHB. On top of the £160 you give her, that is nearly £300 a month unaccounted for. (I have 2 children aged 3, 5) Now, I am not great at giving advice (I daren't put my personal debt in my signature as it's double your debt! EEK indeed!) but if you we're working as a team towards a DF date, this money would be better used then 'things for her and the kids'. Now, that DOES sound harsh, I don't mean it too, but why not find out EXACTLY where that money is going!?

And I concur with everyone else re groceries £400 is mahooosive.

And I think you are a lovely hubby working hard so your family are able to enjoy time with their Mom. I wish I didn't have to work, but hey ho.

eekiedee

Hey Im fine with the comments here and I wont go off in a cream puff!

The snowball was scarey and got me thinking over night and made me rethink the way I intend to approach the pay offs. Im trying to avoid running around applying for new credit transfers or loans or mortgage deals at the mo as I have NEVER missed a payment and I fear an ill planned approach that results in refusal wont help. So since I joined this site Ive really been taking stock and seeing how the bills stack up under 'more' careful management.

My bank statement just came in and it is the first time in a long time since the outs and ins were almost balanced out by £50. Next month WILL be better. December wil take a bit of a hit but not a huge one. January will improve as one direct debit ends then.

Ok It would be great if my wife worked and Im stuggling a bit with OUR choice. But had a chat tonight with my better half and the emphasis is now on planning our spending well inadvance.

I also reckon that the snowball was good in that it will help me focus on paying off high interest items first. ie pay more to them and minimum to 0% transfers.

My approach may have a few holes but they are ones that are contained financially (I will probably get pelters for that statement).

However my way seems clearer now and less pessimistic (providing I dont waiver). So thanks again to you all.