Confessions of a squanderbug!

pennilesspete

Hi there,

I've been lurking for a while but not really achieved much except to cut down my spending so at least now I am not spending more than I earn, but I now need to cut back even more in order to start paying back the £5400 debt I have on Credit Cards. My biggest problem is that my partner earns considerably more than me and that I try to keep up with the champagne lifestyle he can afford on my lemonade money!

I don't really buy much - I never treat myself to gadgets or anything that I would love to have, I seem to fritter away my cash on god knows what. Its amazing how easy it is to spend £20 in a day.

I also have no self control. I now have all my debt at 0% interest but it needs paying by March next year, but I keep spending instead of paying it off, justifying it by thinking that march is far away, although it will soon be here. I was thinking of taking out a personal loan, which would give me a set amount a month to pay off but I don't really want the additional expense.

Anyway, enough of my ramblings. Any tips or moral support is gratefully received.

Pete

Horace

Hi and welcome

Don't take out a personal loan to pay off cards as you will only rack up more debt. Why not post your statement of affairs and we can give you advice on where to cut back to free up money for those credit cards.

https://www.makesenseofcards.com/soacalc.html - follow the instructions so that you can format it for MSE and copy and paste it here.

Keep a spending diary so you know where your money is going and whatever you do don't try and compete with someone who earns more because you will only get yourself deeper into debt.

pennilesspete

Thanks Horace. I will have a look at that when I get home from work this evening.

Swinstie73

Hi Pennilesspete,

I agree with Horace, don't get another loan to pay off existing debts. I did this and ended up with more debt cos I kept spending on cards I had cleared!

Can I ask one wee question, how do you start a new thread? I've been thinking of starting one but don't know how!?

Horace

Swinstie73 wrote: »

Hi Pennilesspete,

I agree with Horace, don't get another loan to pay off existing debts. I did this and ended up with more debt cos I kept spending on cards I had cleared!

Can I ask one wee question, how do you start a new thread? I've been thinking of starting one but don't know how!?

Swinstie - you go to the top of the page when you go into DFW for instance and it says New Thread, click on this and make a new thread, easy peasy lemon squeezy:D

Swinstie73

Thanks Horace - I only ever post so have not mastered the art of starting threads! Will take the plunge soon...

Lemon_Tree

i back what Horace says, you will probably find the spend diary one of the best things that you do, it won't be easy don't get me wrong but people stop buying things if they know they have to write them down which is a good start.

pennilesspete

Here is my SOA - it looks as if I don't have electricity, water etc. but this is included in the 'rent' I pay my partner. We work this out at the start of the year and is roughly half of what we use.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1220
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 150
Total monthly income.................... 1370

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 216
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 16
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 250
Emergency fund.......................... 0
Total monthly expenses.................. 971


Assets
Cash.................................... 958.65
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 750
Other assets............................ 0
Total Assets............................ 1708.65

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................1500......25........0
All & Leic credit Car..........1734......25........0
Student Overdraft..............1700......0.........0
HSBC Mastercard................450.......25........0
Total unsecured debts..........5384......75........-


Monthly Budget Summary
Total monthly income.................... 1,370
Expenses (including HP & secured debts). 971
Available for debt repayments........... 399
Monthly UNsecured debt repayments....... 75
Amount short for making debt repayments. 324

Personal Balance Sheet Summary
Total assets (things you own)........... 1,708.65
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,384
Net Assets.............................. -3,675.35

Tixy

Hello I've made a few comments on your SOA, there are a couple of items that jump out to me.

pennilesspete wrote: »

Here is my SOA - it looks as if I don't have electricity, water etc. but this is included in the 'rent' I pay my partner. We work this out at the start of the year and is roughly half of what we use.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1220
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 150
Total monthly income.................... 1370

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 216
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 Is this just for you or for you and other half? Either way its really high. You should be able to cut this considerably
Clothing................................ 50 Try cutting down for a while you probably have plenty of clothes already!
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 16
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 250 Really high!!! £3k per year.
Emergency fund.......................... 0
Total monthly expenses.................. 971


Assets
Cash.................................... 958.65
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 750
Other assets............................ 0
Total Assets............................ 1708.65

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................1500......25........0
All & Leic credit Car..........1734......25........0
Student Overdraft..............1700......0.........0
HSBC Mastercard................450.......25........0
Total unsecured debts..........5384......75........-


Monthly Budget Summary
Total monthly income.................... 1,370
Expenses (including HP & secured debts). 971
Available for debt repayments........... 399
Monthly UNsecured debt repayments....... 75
Amount short for making debt repayments. 324

Personal Balance Sheet Summary
Total assets (things you own)........... 1,708.65
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,384
Net Assets.............................. -3,675.35

For tips on reducing the grocery bill look at the old style board on here. If you make more food from scratch and don't buy ready meals / takeaways etc you can spend much less. Try buying more supermarket brands not premium.
Your Holiday is a huge amount. Are you saving this amount every month? Its difficult if you OH earns more but you are going to have to explain to him you can't be so extravagant.
Your SOA does not look that bad but from what you say I guess you don't have £324 left each month. You need to work out where that money is going, which your spending diary will tell you. Also you really need to start paying more than the minimum on your debts. Start by finding out the interest rates for each date and then make additional payments to the one with the highest APR.

Your inclusive rent figure is low so now is a good time for you to reduce your debts

Good luck and welcome to DFW

pennilesspete

Thanks for the advice. The groceries bill is for me and the other half and is probably on the high side - I included eating out in that as well as I didn't realise that I could add a new field.

As for the holidays - thats where I do struggle and where about two grand of the debt came from - we normally have two holidays a year - we have gone to the USA for the last three years. I'm hoping to cut this down this year as all we have planned are a few weekends in this country care of the vouchers in the Sun.

Your right with regards the surplus - this is the bit that annoys me more than anything as I really can't fathom out where it goes. I started a spending diary today and rather than showing where the money is going it actually stopped me spending any as I questioned whether each thing I wanted was necessary so it might just work!

mooomin

Hello!

Why not join us on the Weekly Spend Challenge?? You set a weekly budget for yourself and post your successes or not on the thread. The new one will start on Sunday I think.

f_f