Why do I have to spend it like it grows on trees??

SkintNalsy

Hi all,

I've been lurking for around a month now (sorry). Just decided to bite the bullet and join. My debts aren't huge but are a big worry for me, causing depression etc. I'm not sure why but when payday comes along, I seem to think I've got loads of money (when I know I don't) and go crazy! I don't know how to stop myself! Any advice (nice advice)?

Natalie x

hayley11

Hi Natalie

Welcome to MSE Why not post a SOA - statement of affairs, there's a link at the top of the page. This lists all your incomings/outgoings so we can see areas you can maybe save and help you get your debts paid off quicker.

Hayley xx

EDIT: I thought there was a link...can't find it? Anyway the link is:

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

poorandindenial

Hi Natalie

You need to take yourself in hand and relearn the value of money, I used to be a spender too (oh the shoes/handbags/holidays etc etc)

First off you need to do a SOA so you know where you are at (www.makesenseofcards.com - click on statement of affairs calculator)
Then you need to work out how much you have to live on/want to live on and stick to it.

Now this should be something that allows you to live but isn't perpetuating old habits. I founf that when I first started down my debt free journey the best way for me to do this was to take a set amount out on a Thursday and then it would have to last me until the next Thusday (this meant I coud go out if I wanted but that if I did then I might be eating even more frugally the next week)

This combined with a spending diary really showed me how much I was frittering away on crap and made me realise the value of money again (or maybe for the first time).

The snowball calculator is a good motivator to stick to a budget ww.whatsthecost.com/snowball.aspx it shows ou when you will be debt free and you can change the amount you repay each month to see what happens if you overpay a bit more.

If you are feeling brave then post your SOA up here and we will help you find ways to save money (we might be a bit stern when we do this but it is always in the nicest way possible)

Other than that welcome to the boards, enjoy

SkintNalsy

Here's my SOA (hope I did it right)!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 11
Satellite/Cable TV...................... 38
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 30
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 58
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 2.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 45
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1014.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Provident Loan.................210.......15........0
Safeloans .....................240.......240.......0
Rent Arrears...................300.......100.......0
RBS Personal Loan .............2050......58........0
Council Tax Arrears............300.......100.......0
Total unsecured debts..........3100......513.......-

Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including secured debts)....... 1,014.5
Available for debt repayments........... 185.5
Monthly UNsecured debt repayments....... 513
Surplus(deficit if negative)............ -327.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total Secured debt...................... -0
Total Unsecured debt.................... -3,100
Net Assets.............................. -600

Created using the SOA calculator at www.makesenseofcards.com

sparky0107

Hiya natalie,
Welcome to to DFW, I've added some comments in red next to your SoA, they're only suggestions to try and help. Good Luck hun

SkintNalsy wrote: »

Here's my SOA (hope I did it right)!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40 Can you change tarrif or get a PAYG
TV Licence.............................. 11
Satellite/Cable TV...................... 38 Cancel this or reduce it
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 30
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 58 Seems high, try quotes through cashback sites like quodco
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 2.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 45 Can you go to local training college, it's a fraction of the price
Entertainment........................... 100 You can't afford this hun
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1014.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Provident Loan.................210.......15........0
Safeloans .....................240.......240.......0
Rent Arrears...................300.......100.......0
RBS Personal Loan .............2050......58........0
Council Tax Arrears............300.......100.......0
Total unsecured debts..........3100......513.......-

Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including secured debts)....... 1,014.5
Available for debt repayments........... 185.5
Monthly UNsecured debt repayments....... 513
Surplus(deficit if negative)............ -327.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total Secured debt...................... -0
Total Unsecured debt.................... -3,100
Net Assets.............................. -600

Created using the SOA calculator at www.makesenseofcards.com

poorandindenial

SkintNalsy wrote: »

Here's my SOA (hope I did it right)!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 100 (if you arepaying over 10 months see if you can change this to over 12 as it makes each month a bit more manageable)
Electricity............................. 40 (if you aren't already then: turn off everything you can all the time at the wall, use energy saving lightbulbs, don't use heating unless you really need to etc etc)
Gas..................................... 40 (as above)
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40 This is high, if you are on contract try switching to a lower tarrif, if you are near contract end then consider going PAYG
TV Licence.............................. 11
Satellite/Cable TV...................... 38 (is this TV, internet and phone - if not you can get this trio for £30)
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 30 (this may have to go for a bit)
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 58
Car maintenance (including MOT)......... 20 (you don't use a car much but it costs you £118 a month - could you do without)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20 (f you get three or more a month then a prepayment certificate may be cheaper)
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 2.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 45 (you need to spend less on this)
Entertainment........................... 100 (this may have to shrink for a bit)
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1014.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Provident Loan.................210.......15........0
Safeloans .....................240.......240.......0
Rent Arrears...................300.......100.......0
RBS Personal Loan .............2050......58........0
Council Tax Arrears............300.......100.......0
Total unsecured debts..........3100......513.......-

Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including secured debts)....... 1,014.5
Available for debt repayments........... 185.5
Monthly UNsecured debt repayments....... 513
Surplus(deficit if negative)............ -327.5 - OK, this is the problem, although you are managing to meet payments, you must then also be spending again. This basically means you are spending £327 more a month than you have

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total Secured debt...................... -0
Total Unsecured debt.................... -3,100
Net Assets.............................. -600

Created using the SOA calculator at www.makesenseofcards.com

OK Natalie, the time for action is now!

You don't have huge debts, which is the good news, but the bad news is that you can't really afford to service the debts that you do have. Even if you cut back where I have highlighted above you may still find that you have a deficit.

Right the nasty bit is over, there is a way out of this. You DO have some money available for repayments so you could be suitable for a debt management plan (DMP) contact one of the organisations in this link:

http://www.moneysavingexpert.com/loans/debt-help-plan#help

for support in doing this (they will even run them for you) this will trash your credit rating but you will be out of debt and they may be able to get interest frozen on your debts. They do have set allowances for various bits on your SOA and you will have to agree to take out no more debt while you are on it (if you are eligible and go down that route)

Well done for posting this up and all the best for taking control back and getting sorted out

hayley11

SkintNalsy wrote: »

Here's my SOA (hope I did it right)!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 100 - is this paid over 10 or 12 months?
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0 - do you not pay water rates?
Telephone (land line)................... 0
Mobile phone............................ 40 - Is this a contract? Can it be lowered?
TV Licence.............................. 11
Satellite/Cable TV...................... 38
Internet Services....................... 0
Groceries etc. ......................... 120 - how many people is this for?
Clothing................................ 30 - this may have to stop for now
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 58
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20 - If you pay this on a monthly basis, you might be best getting the "season ticket" - check out martins guide http://www.moneysavingexpert.com/health/cheap-prescriptions
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 2.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 45 - this might have to go or be reduced a lot
Entertainment........................... 100 - as above
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1014.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
Provident Loan.................210.......15........0
Safeloans .....................240.......240.......0
Rent Arrears...................300.......100.......0
RBS Personal Loan .............2050......58........0
Council Tax Arrears............300.......100.......0
Total unsecured debts..........3100......513.......-

Do you have the APR's for any of these?

Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including secured debts)....... 1,014.5
Available for debt repayments........... 185.5
Monthly UNsecured debt repayments....... 513
Surplus(deficit if negative)............ -327.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total Secured debt...................... -0
Total Unsecured debt.................... -3,100
Net Assets.............................. -600

Created using the SOA calculator at www.makesenseofcards.com

I've put some comments above....sorry if they seem harsh but to get on top of things you might need to cut back on some things for a while.

poorandindenial made a great suggestion about giving yourself a set amount each week, that way you're not going "cold turkey" but you are gaining control of your spending

Good luck hun xx

Liquorice_Twirls

Sounds like you're nourishing some part of yourself by spending, but at the same time it's causing you a lot of pain.

Are there other things/people in your life that will help to give you that sort of "nourishment" and not mean you end up feeling depressed?

Sounds like you need to make some changes to your spending patterns, but don't forget you need to think about your thinking patterns, or you may end up feeling even more depressed.

Well done for making a start and I hope that you get lots more support here.

SkintNalsy

Thanks all for the advice. I'll definately reduce my digital payments and hairdressers. In regards to the water bills, no, I live in Scotland and we don't pay water rates. Right, am defo going to cut back on the entertainment side of things too.

Car insurance was the cheapest I could get, being 24 and having had to claim in March.

Council tax and rent - I'm paying back arrears (great) lol!

My groceries are for me alone and I am on a contract for my moby.

I am really bad for leaving things plugged in and switched on at the wall and leaving my TV on standby so that will change.

I spoke to someone yesterday from moneyworries who said that they could set up a DMP for me for £181pm and they'd sort out the rest. Not sure whether I should do that or go for someone who'll do it for free.

Thanks again tho everyone and I'll keep you posted!

hayley11

SkintNalsy wrote: »

Thanks all for the advice. I'll definately reduce my digital payments and hairdressers. In regards to the water bills, no, I live in Scotland and we don't pay water rates. Right, am defo going to cut back on the entertainment side of things too.

Car insurance was the cheapest I could get, being 24 and having had to claim in March.

Council tax and rent - I'm paying back arrears (great) lol!

My groceries are for me alone and I am on a contract for my moby.

I am really bad for leaving things plugged in and switched on at the wall and leaving my TV on standby so that will change.

I spoke to someone yesterday from moneyworries who said that they could set up a DMP for me for £181pm and they'd sort out the rest. Not sure whether I should do that or go for someone who'll do it for free.

Thanks again tho everyone and I'll keep you posted!

Hi

Why not contact CCCS or Payplan? They're both completely free and will only act in your best interest. Please don't go with one of these companies that charge you but offer "more services" - they are not offering more services, just adding more money on to what you already owe. And like Zebedee69 said, £3100 is not a huge amount in the grand scheme of things and you can get on top of this.

You know i'm thinking of moving to Scotland, no water rates and nearly free prescriptions!

Okay your food shopping can be cut big time if it's just for you. Mooch over to the Old Style board, there are so many ways to cut down on your shopping. Also have you tried shopping at Aldi or Lidl? Maybe not for everything but for some things? Or the poundshop can be good, like for cleaning stuff or snacks/drinks.

If you cut down the shopping by £50, reduced the hair cuts (save £20) and entertainment (save £50) and got rid of clothing (save £30), you could save about £150 a month.

Also with regards to the medicine, do you really pay £20 a month? Sorry if I sound nosy, just seems like quite a lot.

Hayley xx

gilly1964

SkintNalsy wrote: »

Thanks all for the advice. I'll definately reduce my digital payments and hairdressers. In regards to the water bills, no, I live in Scotland and we don't pay water rates. Right, am defo going to cut back on the entertainment side of things too.

Car insurance was the cheapest I could get, being 24 and having had to claim in March.

Council tax and rent - I'm paying back arrears (great) lol!

My groceries are for me alone and I am on a contract for my moby.

I am really bad for leaving things plugged in and switched on at the wall and leaving my TV on standby so that will change.

I spoke to someone yesterday from moneyworries who said that they could set up a DMP for me for £181pm and they'd sort out the rest. Not sure whether I should do that or go for someone who'll do it for free.

Thanks again tho everyone and I'll keep you posted!

I can't offer much more advice than already given, BUT AND I AM SHOUTING PLEASE DO NOT SIGN UP TO MONEYWORRIES OR ANYTHING SIMILAR THAT WANTS A FEE.

Now more gently, there are free charities that do exactly the same thing CCCS and Payplan.

Keep your chin up
Gilly