My debt free diary...determined to do it for my girls!!

helnag

Hi, Please be gentle, trying hard to become debt free, I've been lurking on this site for some time, guess you can say I've finally had my lightbulb moment!!!!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 680
Partners monthly income after tax....... 0
Benefits................................ 1120
Other income............................ 200
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 305.95
Rent.................................... 412
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 80
Gas..................................... 80
Oil..................................... 0
Water rates............................. 58
Telephone (land line)................... 20
Mobile phone............................ 0
TV Licence.............................. 11.67
Satellite/Cable TV...................... 17.5
Internet Services....................... 10
Groceries etc. ......................... 240
Clothing................................ 25
Petrol/diesel........................... 60
Road tax................................ 18
Car Insurance........................... 122.5
Car maintenance (including MOT)......... 10
Car parking............................. 12
Other travel............................ 0
Childcare/nursery....................... 251
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 39
Buildings insurance..................... 0
Contents insurance...................... 18.96
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 80
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 2038.58


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
Hire Purchase (HP) debt ...... 0........(305.95)...0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
capital one....................192.......9.85......30.34
welcome loan...................3390......210.6.....62
home learning college..........1762......75........0
next catalogue.................430.......40........0
Total unsecured debts..........5774......335.45....-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 2,038.58
Available for debt repayments........... 161.42
Monthly UNsecured debt repayments....... 335.45
Amount short for making debt repayments. -174.03

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,774
Net Assets.............................. -5,774

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

kathrynrobson1011

Hello and congratulations on your LBM!!!!! I only had mine a few weeks ago but it feels great to know that I am now tackling the issue.

Looking at your SOA there are a few ways that jump out immediately to cut down.

Your gas and electric seem high. I only pay 90 (and to some that's high for both). Can you change suppliers? Do it through a cashback website and you'll get money for doing it.

Do you have a water meter? 58 seems high. I pay 29 without a meter.

Could you cut back Sky and go freeview instead? We rang sky and have had our package reduced to 3 a month for the next 4 months.

Your grocery bill seems high. My budget is 200 a month and this month we're going to come in at least 30 below that. That's for me, DH, DD, DS and 2 cats (includes all cats needs too). Check out the Old Style Board for meal plans and lots of advice on cutting your grocery bill down.

Do you pay 122.5 a month on Car Insurance? That seems way high, or is that for the year?

Could you go without Pet Insurance? Or cut it down slightly?

The amount for Presents/Christmas seems high. Cut you cut this back and only buy for immediate family?

I am sure there are other things you cut back on and wiser people will be along shortly as I am a relative newbie here!!!!

Good luck on your Debt Free Journey. And keep using the boards. They are great for motivation and inspiration!!!!

Kat x:T

poorandindenial

helnag wrote: »

Hi, Please be gentle, trying hard to become debt free, I've been lurking on this site for some time, guess you can say I've finally had my lightbulb moment!!!!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 680
Partners monthly income after tax....... 0
Benefits................................ 1320
Other income............................ 200
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 305.95
Rent.................................... 412
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 80 (these are huge £160 on gas and leccy a month is huge, have you arrears or are you heating the house constantly?? Is this your average for the year or just from your last (winter) bill??)
Gas..................................... 80
Oil..................................... 0
Water rates............................. 58 (is this on a meter or fixed charge? it looks high to me but I am only in a one bed flat so can't really comment from experience)
Telephone (land line)................... 20 (£47.5 of internet, tv and phone is high, ditch extra channels and bundle the three up for less than £30)
Mobile phone............................ 0
TV Licence.............................. 11.67
Satellite/Cable TV...................... 17.5
Internet Services....................... 10
Groceries etc. ......................... 240 (you can likely get this down by about £100 with a real effort to meal plan, cook from scratch and shift down a drand - check out the old style board for some really inspirational ideas)
Clothing................................ 25 (this can always stop for a few months if needs be)
Petrol/diesel........................... 60
Road tax................................ 18
Car Insurance........................... 122.5
Car maintenance (including MOT)......... 10
Car parking............................. 12 (over £200 on running your car, could you ditch and use public transport or is it essential?)
Other travel............................ 0
Childcare/nursery....................... 251
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 39 (as insurance below)
Buildings insurance..................... 0
Contents insurance...................... 18.96 (you may be able to do this cheaper - try a comparason website and switch through quidco)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 80 (phew - this can shrink it comes out at £1000 a year)
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 50 (can you downshift or do without the hol for a year while you nail the debts)
Emergency fund.......................... 0
Total monthly expenses.................. 2038.58


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
Hire Purchase (HP) debt ...... 0........(305.95)...0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
capital one....................192.......9.85......30.34
welcome loan...................3390......210.6.....62
home learning college..........1762......75........0
next catalogue.................430.......40........0
Total unsecured debts..........5774......335.45....-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 2,038.58
Available for debt repayments........... 161.42
Monthly UNsecured debt repayments....... 335.45
Amount short for making debt repayments. -174.03

I reckon you can find this with a bit of frugality and hard work

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,774
Net Assets.............................. -5,774

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

Hi helnag :wave:

Congrats on your LBM :T A few suggestions from me for things you could trim.

And don't worry about us not being gentle - we aren't known as 'huggies' for nothing so even though we might be a bit harsh with the odd SOA we do mean it in the nicest way possible!

Forris

Welcome to the forum and congratulations on your LBM; that's the hard part done! Now to work.

I have highlighted some of your entries and added some comemnts at the bottom. I'm sure others will be along a little later to add their thoughts.

helnag wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 680
Partners monthly income after tax....... 0
Benefits................................ 1320
Other income............................ 200
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 305.95
Rent.................................... 412
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 80 Ouch!
Gas..................................... 80 Ditto!
Oil..................................... 0
Water rates............................. 58
Telephone (land line)................... 20
Mobile phone............................ 0
TV Licence.............................. 11.67
Satellite/Cable TV...................... 17.5
Internet Services....................... 10
Groceries etc. ......................... 240
Clothing................................ 25
Petrol/diesel........................... 60
Road tax................................ 18
Car Insurance........................... 122.5 PER MONTH!!!
Car maintenance (including MOT)......... 10
Car parking............................. 12
Other travel............................ 0
Childcare/nursery....................... 251
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 39 How many pets?!
Buildings insurance..................... 0
Contents insurance...................... 18.96
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 80
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 2038.58


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
Hire Purchase (HP) debt ...... 0........(305.95)...0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
capital one....................192.......9.85......30.34
welcome loan...................3390......210.6.....62
home learning college..........1762......75........0
next catalogue.................430.......40........0
Total unsecured debts..........5774......335.45....-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 2,038.58
Available for debt repayments........... 161.42
Monthly UNsecured debt repayments....... 335.45
Amount short for making debt repayments. -174.03

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,774
Net Assets.............................. -5,774

Electric & Gas are very high - are you paying arrears or on a key meter? If not, you need to look at switching (now is a good time according to Martin). Don't forget to go through a cashback site for extra savings.

Phone/TV/BB - Is this a package? We have all 3 with Sky for £32. Check with your provider what deals they can offer, or switch.

Groceries - this can be reduced with good planning and careful shopping. Check out the 'Old Style' board for more ideas.

Car Insurance - I hope this is a typo! Or are you driving a Ferrari!?

Childcare - are you using Childcare Vouchers for this?

Pet Insurance - This seems very reasonable, FOR A HERD OF ELEPHANTS! Have you had to spend a lot recently, hence high premiums?

Presents/Holidays - These may need to be scrapped for a while until you have sorted the debts out.

Home some of these suggestions help. Good luck, and keep coming on here for support or just if you want a good scream!!

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

helnag

kathrynrobson1011 wrote: »

Hello and congratulations on your LBM!!!!! I only had mine a few weeks ago but it feels great to know that I am now tackling the issue.

Looking at your SOA there are a few ways that jump out immediately to cut down.

Your gas and electric seem high. I only pay 90 (and to some that's high for both). Can you change suppliers? Do it through a cashback website and you'll get money for doing it.

I'm on a meter and I'm tied to it cos I owe EDF money from a debt going back 5 years ago, would love to but just can't!!

Do you have a water meter? 58 seems high. I pay 29 without a meter.

I don't have a meter but have just moved house, I was paying southern water £22.00 per month and that was with a meter then just the month before I moved they changed it to £11.00 per month for the following year but then I moved and now it's £35.00 per month and also £23.00 with South East on top!!! I'm confused about this, never understand how they work this out???

Could you cut back Sky and go freeview instead? We rang sky and have had our package reduced to 3 a month for the next 4 months.

I'm not sure cos I'm on a 12 month contract, I only signed up to sky 2 months ago when I moved because compared to Virgin it's a lot less than what I was paying but now I feel silly...not really essential is it.

Your grocery bill seems high. My budget is 200 a month and this month we're going to come in at least 30 below that. That's for me, DH, DD, DS and 2 cats (includes all cats needs too). Check out the Old Style Board for meal plans and lots of advice on cutting your grocery bill down.

Going shopping today and will try, gonna do the downgrade thingy!!!

Do you pay 122.5 a month on Car Insurance? That seems way high, or is that for the year?

That's per month, only recently started driving and tried moneysupermarket, that was the cheapest I could get, also that's £12.0 that I pay AA for breakdown too.

Could you go without Pet Insurance? Or cut it down slightly?

Again I've already downgraded it, I've got 2 dogs so that's around averagage but I will havea shop around and see.

The amount for Presents/Christmas seems high. Cut you cut this back and only buy for immediate family?

Definately!!

I am sure there are other things you cut back on and wiser people will be along shortly as I am a relative newbie here!!!!

Good luck on your Debt Free Journey. And keep using the boards. They are great for motivation and inspiration!!!!

Kat x:T

Thanks for your help, sometimes you know what you need to do but you need someone to say it, thanks again!!

Forris

Re car insurance - try having a look here, they seem to specialise in new drivers.

http://www.2pass.co.uk/insurancesponsors.htm

Silaqui

My 2 pennies worth (moneysaving at all times lol )

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 680
Partners monthly income after tax....... 0
Benefits................................ 1320
Other income............................ 200
Total monthly income.................... 2200

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 305.95
Rent.................................... 412
Management charge (leasehold property).. 0
Council tax............................. 92 I've heard it said that this can be divided over 12 months - may be worth an ask if not already (Although then you lose the bonus months in Feb/Mar!)
Electricity............................. 80 Both of these are huge, how much are the actual arrears that you are paying? It may still be possible to reduce this by looking at your useage, turn all plugs off at night, heating off, etc.
Gas..................................... 80
Oil..................................... 0
Water rates............................. 58 Do you have a meter now? If you were using an average of say £11 before, you will still be doing now you have moved so getting a meter fitted should at least chop this a little bit.
Telephone (land line)................... 20 As someone else said, look for bundles - even if you have just joined Sky you may be able to ring them and upgrade to one of their bundled TV/phone/internet packages. Just don't forget to cancel the old one and reduce your BT line rental to the lowest.
Mobile phone............................ 0
TV Licence.............................. 11.67
Satellite/Cable TV...................... 17.5
Internet Services....................... 10
Groceries etc. ......................... 240 Check Old Style, good luck with the downshift challenge! You'll be surprised - try tesco value shortbread rounds - beaut!
Clothing................................ 25 Forget this for a few months, chuck the kids in front of video, invite a mate round and go through your wardrobe and have a big sort out, matching stuff together and getting rid of really old stuff. You'll find outfits you never knew you had! Kids can manage without as well for a bit.
Petrol/diesel........................... 60
Road tax................................ 18
Car Insurance........................... 122.5 This is crazy, when's your renewal due? My b/f started driving at 19 and his was only about 90pm. Maybe do another search using the advice on here, there's an article all about it, then see if there is a way out of your old one.
Car maintenance (including MOT)......... 10
Car parking............................. 12
Other travel............................ 0
Childcare/nursery....................... 251
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 39
Buildings insurance..................... 0
Contents insurance...................... 18.96
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 80 Sod em lol! Seriously though, per month this is high unless you have a huge family. I spend £10 per person for close family, b/f and best friend - everybody else gets a card and a pint!
Haircuts................................ 25 Can you trim your own/kids hair? Obv more difficult if you have a short cut that needs shaping, but for long hair the odd fringe trim should mean 2 months between cuts.
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 2038.58


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
Hire Purchase (HP) debt ...... 0........(305.95)...0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
capital one....................192.......9.85......30.34
welcome loan...................3390......210.6.....62
home learning college..........1762......75........0
next catalogue.................430.......40........0
Total unsecured debts..........5774......335.45....-


Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 2,038.58
Available for debt repayments........... 161.42
Monthly UNsecured debt repayments....... 335.45
Amount short for making debt repayments. -174.03

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,774
Net Assets.............................. -5,774

A few suggestions above from me xx

helnag

Hi and thank you for your reply...

Electric & Gas are very high - are you paying arrears or on a key meter? If not, you need to look at switching (now is a good time according to Martin). Don't forget to go through a cashback site for extra savings.

I am paying a debt but this is set at £5.00 per week for the electric so I know this is high, the council have just installed a new boiler and 2 new rads so for a long time my heating has been working overtime but hopefully I'll now be able to cut down...I wish I could switch but cos of the debt I'm tied...oh hindsight is a great thing!!!


Phone/TV/BB - Is this a package? We have all 3 with Sky for £32. Check with your provider what deals they can offer, or switch.

This is with sky, I thought I was on a good deal but I'll look into cutting back, thanks.

Groceries - this can be reduced with good planning and careful shopping. Check out the 'Old Style' board for more ideas.

I'm gonna do this today, my budget for the week inc. nappies and dog food is now £35. here goes...

Car Insurance - I hope this is a typo! Or are you driving a Ferrari!?

No, just an astra lol!!! It's my first year driving so no no claims bonus plus I have to have work cover for my job, this also includes £12.00 a month AA breakdown cover. Believe it or not this was the cheapest quote on moneysupermarket

Childcare - are you using Childcare Vouchers for this?

No, but I do get tax credits towards a big chunk of it, can I use childcare vouchers also?? What are vouchers?

Pet Insurance - This seems very reasonable, FOR A HERD OF ELEPHANTS! Have you had to spend a lot recently, hence high premiums?

I initially only had one dog insured on the life cover for £22.00 per month but I added my second dog cos he's getting on a bit, I did this only on 12 month cover cos of the cost and this added the rest even with multi pet discount...I will look for cheaper after I've checked if I can cancel anytime.

Presents/Holidays - These may need to be scrapped for a while until you have sorted the debts out.

i agree, the holiday has already been booked and deposit paid,it's our first holiday in 6 years and it's only caravanning in the uk but I wish I'd waited another year now. Again hindsight is great lol, but the presents can be cut right back, kids only and even then a token gift each...

Thank you for all of your advice...

helnag

Thank you Silaqui...

I'm awful for leaving everything on inc. the pc on all the time...will all be switched off when not in use.

Can you just ask to get a water meter fitted then?

Will call sky today, thanks.

Shortbread rounds!! Will give them a go, thanks

I've got an old e-bay acc so gonna spend this afternoon digging out all the outgrown stuff and my un used unmwanted clothes to stick on there.

My style's a pob but admittedly I do go to Rush...v expensive, my friends a hairdresser so will get her to trim it for me...thanks.

poorandindenial

lol - I can't believe I missed the car insurance, that will teach me for just taking the 'car' block and adding it up without checking which amount is which - sorry OP

I agree with the rest - the amount you pay is ludicrous. What car do you have, is it uber powerful?

helnag

No...it's just an astra!! I'm feeling really silly but it really was one of the cheapest, honest.