Debt-Free? Where do I sign???

FeeFee

Hello all

I have been hovering around these boards for some time and have finally decided to take the plunge, tho I am still holding my breath.. phew! that's better...:p

My money management skills are pretty shocking and I've decided its time I grew up and took control of my finances but I need some help!!!

I have done an SOA below - I never have money left at the end of the month but I'm not sure where it all goes so I'm going to do a spending diary too... I do need to learn to say no to myself! Luckily my credit rating is not great or I might be in real trouble by now...


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2700
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 240
Total monthly income.................... 3020

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 71.48
Electricity............................. 43
Gas..................................... 55
Oil..................................... 0
Water rates............................. 40.2
Telephone (land line)................... 12
Mobile phone............................ 27
TV Licence.............................. 9.95
Satellite/Cable TV...................... 18
Internet Services....................... 11
Groceries etc. ......................... 150
Clothing................................ 30
Petrol/diesel........................... 72
Road tax................................ 14
Car Insurance........................... 50.93
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 240
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 46.29
Life assurance ......................... 0
Other insurance......................... 6
Presents (birthday, christmas etc)...... 20
Haircuts................................ 70
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 0
Charities............................... 10
Total monthly expenses.................. 2056.85

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 5000
Total Assets............................ 8500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................1800......40........18.9
Prudential Loan................1260......257.......7.9
Nationwide OD..................2550......40........14.9
LaRedoute......................45........0.........29.9
Vertbaudet.....................89........0.........0
Littlewoods....................400.......50........0
TaxCredit......................720.......114.......0
Total unsecured debts..........6864......501......

Monthly Budget Summary
Total monthly income.................... 3,020
Expenses (including HP & secured debts). 2,056.85
Available for debt repayments........... 963.15
Monthly UNsecured debt repayments....... 501
Amount left after debt repayments....... 462.15

Personal Balance Sheet Summary
Total assets (things you own)........... 8,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,864
Net Assets.............................. 1,636

What I'd really like to do is turn myself into a saver instead of debt-monkey!!

xxFeeFee

jayss

Well done for getting started :T

Is your SOA realistic, do you know where the 460 you should have left at the end of the month goes?

Can you get a better ccard totransfer the barclaycard to?

FeeFee

Hi Jayss

Thanks for the reply

I have been rejected for 0% deals twice (in Dec08) so am waiting for these searches to 'age' on my credit report before trying again.

I have had a look at my credit files and I found one incorrect entry on my file from British Gas (default of £22) which I am in the process of getting corrected.

I have reviewed my bank statements to try and suss out why my SOA is inaccurate - I probably should have put c.£100 in the emergency fund section (travel to a family funeral last month, windscreen replacement this month...etc)

Also the minimum payments for the catalogues should be £5 for the LaRedoute one tho I have reduced that from £400 to £50 over the last couple of months as the APR is horrendous.

Apart from that - overspent in Feb on a trip to Disneyland which left me in the brown stuff for a couple of months paying back a friend. (So need to get with the saving thing grrrrrrrr)

More than anything I think its time to change my mindset about money and get a bit wiser really..... credit left in my overdraft is not my money and shouldn't be maxxed out every month etc....

tyllwyd

I can't help thinking you aren't being completely honest with yourself. If you really have £450 left at the end of the month, why would you have any debts at all? If it was me, I'd get hold of my statements and do a brutally honest budget - and find out where the money is actually going. (Don't post it here because it will be ripped to shreds!) But when you understand what your spending weaknesses are (you've got three catalogues with balances on them, so maybe you spend more than £50 per month on clothes in reality?), then you can face up to them and get back on track.

Numpty_Monkey

FeeFee wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2700
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 240
Total monthly income.................... 3020

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 71.48
Electricity............................. 43 Check you are getting the best deal, use comparrison sites and cashback sites
Gas..................................... 55 as above
Oil..................................... 0
Water rates............................. 40.2
Telephone (land line)................... 12 look at bundled packages for phone/internet/sat
Mobile phone............................ 27 is this the best tarrif?,
TV Licence.............................. 9.95
Satellite/Cable TV...................... 18
Internet Services....................... 11
Groceries etc. ......................... 150
Clothing................................ 30
Petrol/diesel........................... 72
Road tax................................ 14
Car Insurance........................... 50.93 Any insurance, check the comparrison sites and cashback sites
Car maintenance (including MOT)......... 30
Car parking............................. 10
Other travel............................ 0
Childcare/nursery....................... 240 do you get childcare vouchers?
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 46.29 seems high,- as car insurance
Life assurance ......................... 0
Other insurance......................... 6
Presents (birthday, christmas etc)...... 20
Haircuts................................ 70 this could be cut down
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 0 you need one of these
Charities............................... 10 begins at home
Total monthly expenses.................. 2056.85

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 5000
Total Assets............................ 8500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................1800......40........18.9
Prudential Loan................1260......257.......7.9
Nationwide OD..................2550......40........14.9
LaRedoute......................45........0.........29.9
Vertbaudet.....................89........0.........0
Littlewoods....................400.......50........0
TaxCredit......................720.......114.......0
Total unsecured debts..........6864......501......

Monthly Budget Summary
Total monthly income.................... 3,020
Expenses (including HP & secured debts). 2,056.85
Available for debt repayments........... 963.15
Monthly UNsecured debt repayments....... 501
Amount left after debt repayments....... 462.15

Personal Balance Sheet Summary
Total assets (things you own)........... 8,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -6,864
Net Assets.............................. 1,636

What I'd really like to do is turn myself into a saver instead of debt-monkey!!

xxFeeFee

You are in a pretty good situation, and the spending diary is a great but scarey thing:eek:

Have a look at the snowball calc, there are 2 to play with now
http://www.whatsthecost.com/snowball.aspx?country=uk
http://www.makesenseofcards.com/snowcalc.html

:A

FeeFee

Hi tyllwyd

I know the sums don't add up, do they? I used to spend much more on clothes etc hence the catalogue debts - they are well on their way to being cleared tho - in order of APR, in big chunks and all of the highest interest debt should be paid off at the end of this month. The SOA shows minimum payments rather than actual payments made...

I am going to start a spending diary to identify where I am frittering all of this money away. Also going to start taking lunch to work with me - sure that not doing so accounts for another £100 or so...

I know I've been pretty daft and ignorant regarding money .. that's why I'm here...:o

FeeFee

Thanks Numpty Monkey
I do get childcare vouchers - they are great:j
I have a Virgin package - split it for the purpose of the SOA.
Took the Virgin Insurances because they don't charge interest for paying monthly and it worked out better. Hopefully will be in a position to pay lumpsum by renewal time next Jan??

I was secretly hoping noone would pick up on the haircut thing.... I've been struggling with this one for a while... I tell myself that I deserve it because I work so hard etc.. Maybe I should go to a cheaper salon untill I am debtfree?? (have such a phobia about new hairdressers tho) :eek:

I know I'm lucky to be in a position to deal with my situation - just need to get off my !!!! and do it....

Wish me luck

Numpty_Monkey

We spot things like haircuts:p, thats why doing an SOA is a good thing different people find different things:rolleyes:;)

Some of theladies on here use their local collages and such for the trainees, they are fully suprervised and a fraction of the cost:D

Good luck

earplugs

Hi FeeFee, have you considered a Debt Management Plan with someone like Payplan or CCCS? You can google them and Payplan's addie is here

http://www.payplan.com/

Good luck for the future!

FeeFee

Thanks for all your help :A

Will post my progress......

Tixy

Hello FeeFee

Another tip for hairdressers is can you go an extra week between cuts? If you get it cut 4 weekly change it to 5weekly? That saves around 3 haircuts a year which could be £200 in your case.

Are you on a meter for water? Have you asked your landlord to consider letting you get one installed (it won't cost him anything). I think you would end up paying less. I recently switched and I'm now paying £10-£12 per month for one - even with 2 of you that could mean your bills would be half.

Otherwise I don't think you are in too bad shape. You have a good income and are showing a surplus. Once you have kept your spending diary and worked out where the extra was going, providing you can start channeling this to pay off your debts instead and keep to your new SOA amounts for clothes, presents etc, you should be in a position to make serious in roads into your debts.

Good luck