Debt free....but now racked up a new £8K debt.

ebonylight

So. I was really good. I did everything by the book. I paid off my loan. I paid off my credit card. I even saved enough money to buy my car outright.

Then I split with my boyfriend, moved out of our house, lost my job (which lead to three months of unemployment - hence the major debt) and had a car crash all in the same month. (no sympathy please!! read on people!)

I have racked up £8,000 new debt and have no savings left, so I need help and encouragement to get me paying off the debt and starting to get back on top.

But I would like to stress that my life that I "lost" last year has been replaced with one that is a million times better - I have a new job, in London, I am enjoying being single and feel genuinely happy for the first time since 2007. So although I am in debt and could be better off with some extra money - and would like to eventually save for a new car (I got an insurance pay out by the way as it wasn't my fault, but I spent the money on living).

Thanks guys :T

Uniscots97

why not post you SOA and we'll see where we can help to get you debt free again?

beanielou

Look forward to seeing your SOA.

Primmer

Sure there is something to help you get debt free again - at least you are happy!

barrys-lass

Post ur SOA and we can see what we can do to help. well done for coming here

The_Golden_Goose

If you have cleared it before, then you can clear it again.

Just takes discipline and determination.

Sooner you start, the sooner your DFD will be here and you can start saving those hard earned £s rather than putting it towards your debt.

Welcome back.

ebonylight

Ok I don't know what SOA stands for but having looked about a bit other people seem to be calling their ingoings/outgoings their SOA so here goes...

Bear in mind I've only just started my new job and had my first pay packet this month and it paid for food! but this is what it WILL be from this month onwards:

Incoming:
Wages: £1,500.00
Other job wages approx £300 a month

Outgoing:
Rent: £550
Bills: £100
Loan: £140
Oyster: £120
Food: £150 approximately
Credit card: at least £300 a month
1st overdraft: £100 a month
2nd overdraft: usually nothing but I need to try and pay off a bit so say £100

Plus I live in London so everything is expensive!!

The only way I paid off my (laughable now) debt of £2500 last time was with the support from my ex. He was uber good with money and when I first moved down here he lent me some money to get sorted - I have now paid him back but it took a massive chunk of my first month's pay which is why nothing else has been paid off - or even started - yet.

Thanks for your help guys

Storm

Hi,

Your SoA is a bit incomplete at the moment - there's nothing on there for clothes, haircuts, Xmas & birthdays etc - plus you need to split the bills out so we can see if you're paying over the odds for anything. These outgoings total £1560 per month, leaving £240 spare (I appreciate that this is a new income total so you're not sure exactly where it will all go)

Follow this link to get an overview of where to start & the SoA calculator:

http://forums.moneysavingexpert.com/showthread.html?t=107280

ebonylight

Ok found this - SOA apparently stands for Statement of Affairs....

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 1800

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 140
Hire Purchase (HP) repayments........... 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 150
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 50
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 50
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1505


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 3228.....(140)......0
Total secured & HP debts...... 3228......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................3300......30........16
first overdraft................1000......0.........0
second overdraft...............600.......0.........0
Total unsecured debts..........4900......30........-


Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,505
Available for debt repayments........... 295
Monthly UNsecured debt repayments....... 30
Amount left after debt repayments....... 265

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -3,228
Total Unsecured debt.................... -4,900
Net Assets.............................. -8,128

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

Uniscots97

ebonylight wrote: »

Ok found this - SOA apparently stands for Statement of Affairs....

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 1800

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 140
Hire Purchase (HP) repayments........... 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 30 can you swap provider?
Gas..................................... 30 same as above. Also look at energy efficient light bulbs etc. There's a good thread on OS board about cutting elec/gas use
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 35 can you switch to a lower tariff or pay as you go?
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150 Check out OS board, if its just you that you're feeding this can very easily be cut. Do you have a freezer? Batch cook.
Clothing................................ 150 This is a lot of money per month. If its key items for work look at buying them online and through Quidco so you get cashback. Also remember ebay, great for bargains (again go through Quidco) and charity shops, there were some great ones I found in London when I lived there
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120 can this be reduced even a little by getting off a stop early or buying a longer season ticket?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 50
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30 Cut this back, get onto the celebrations board, there's some amazing ideas on there and cheap.
Haircuts................................ 50 Check out your local college, or if you don't want to move hairdressers check out juniors nights. They are supervised so nothing can go wrong and at most it'll be a few pounds
Entertainment........................... 50 For cinema check out orange film 2for1 on wed, the freebies thread on how to get free cinema tickets, freebies board for Lovefilm free trial, once thats finished sign up for the Blockbuster free trial (remember go through Quidco and get free cash), also check out Martin's newsletter as there's always good deals on food places. This could easily be cut in half. Remember there's loads of great museums etc in London and most are free
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1505


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 3228.....(140)......0
Total secured & HP debts...... 3228......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................3300......30........16
first overdraft................1000......0.........0
second overdraft...............600.......0.........0
Total unsecured debts..........4900......30........-


Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,505
Available for debt repayments........... 295
Monthly UNsecured debt repayments....... 30
Amount left after debt repayments....... 265

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -3,228
Total Unsecured debt.................... -4,900
Net Assets.............................. -8,128

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

Hope you don't think my comments cheeky. I lived in London for a few years so I know how you feel.

Fire_Fox

Excellent advice already but just to suggest you cut up your credit card up, and leave the debit card at home!