Where am I going wrong???

Flylady_Flower

THIS THREAD IS REALLY OUT OF DATE AND I HAVE RESTARTED IT ON PAGE 8 (post #147) WITH A COMPLETE BREAKDOWN OF OUR DEBTS TOO (post #148).

I HAVE LEFT THE ORIGINAL STUFF ON HERE SO THAT YOU CAN SEE WHAT EVERYONE WHO HAS HELPED ME IN THE PAST HAS MEANT WITH THEIR COMMENTS. I HOPE YOU WILL JOIN ME IN MY NEW FIGHT WITH DEBT




Right, first of all I would like to say I am not in as bad a situation as some on here, but I am sick of having nothing left at the end of the week when we should have more than enough to live on so, although I realised quite a while ago that we needed to do something, and made a start, I need to do more, so this is the start of my plan - to pay off my debts and save more money.
Both myself and my hubby work hard and earn well (well, I'm self employed, so only earn when I work, but is usually good), but we still never seem to get ahead in paying off the debts and never have anything in the bank for emergencies, so I aim to change this...
I am going to write down my SOA and start working on each part of that in a bit, but a bit about me first:

I have just turned 46 and hubby has just turned 49... I am the eternal optimist, every cloud and all that while Hubby is the eternal pessimist - he sees the bad in everything and is therefore never disappointed, only pleased when it goes right... (his explanation, not mine... :rotfl:)

We have 2 children - DS is 15 and living at home - he is just finishing school, taking GCSE's at the moment, then hopes to go to Motor Racing College (there is a theme here...;)) He has passed all the interviews, just needs to pass his exams, which is the hard bit as he is ADHD, a typical teenage boy and does not want to know - he has the attention span of a goldfish, and can be a right royal pain, but is also a loving, kind and thoughtful child who could be brilliant if he only tried, so he is a 'work in progress' at the moment until common sense kicks in...
DD is 19 and lives with my Mum - we get on great now but argued a lot when she lived here, although she often stays over and we go out together and stuff and it's hard not having her here, but we're stronger together because of it... And she has just realised that she should have gone back to college to study Fashion Design when she had the chance instead of going to work as she now has to pay to go back (it will cost her £1200 which she will pay for herself and we will help where we can). She is currently working as a CSW at the hospital and will be able to carry on with this as it is bank work, so she can work various hours and then catch up with college too...

We also have two dogs - 1 3yr old Lurcher/Labrador who's scatty and scared in equal amounts, and a 2yr old Alsatian/Rottweiler who is massive, very hairy and as soppy and loving as anything can be... and eats like a horse, a 1yr old terrapin called Terry Pin, a 16yr old Tarantula called Raymond and a pond full of fish

We live in a Housing association house and have been here two years. We did have our own house which we loved, but after years of struggling and then a business going down the pan, we couldn't manage it any more and tried downsizing - we sold and purchased a smaller house, but were still struggling and ended up selling that after 9 months and moved into rented accommodation. We lived there for 6 months, but things were no better after hubby lost his job and the rent was horrendous (no help as I was working). So we lived with my Mum for 6 months before being made homeless and were given a temporary 2 bed flat by the council. During this time, we worked out that we really couldn't manage and ended up going bankrupt, owing £46,000. In reality, we should have stopped trying to pay everyone when we were in our first house. We only had the mortgage and a £6000 loan that we HAD to pay, and we could have sought help and maybe got a payment plan organised, and we may have still been there (if only I had known about this site back then...;))
Anyway, no looking back, what will be will be and we have moved on - we were moved from the flat because of problems after 6 months (6 month theme there I think ) into what were the worst 3 years of our married life living in another temporary house in one of the worst areas in our town - our car was broken into 7 times in a short space of time and my son was threatened, as was I. Hubby was working away from home during this time and it was hard going trying to manage on my own - I must admit I was not optimistic during this time at all... then we finally were given this house as a permanent home nearly 3 years ago now. It's not great but 200% better than before, and we want to exchange and move back to the town where we lived before, but it's a lovely house and we are settled more now...:D

So, life history over, we have been to hell and back and have survived - together we are stronger and are looking forward to a better life, and that is where this diary comes in, I plan to make the changes and put it into words so that it focuses my mind and makes me do it... fingers crossed...

(off to Ikea now to spend some money... :rotfl:only for a cheap desk to go into DS's room so he can put up the computer my mum has just given him... I will sort my finances out on my return...:rolleyes:)

Quillion

Welcome the first post is always the worst one. Look forward to look at the soa and then the wonderful guys on here will help you out.

Valli

Terry Pin
Love it!
I'm assuming number one priority is to pay off that painful CC?
Looking forward to your SOA

FeeFee

Hi
I have a computer desk in a box in my shed..?

Flylady_Flower

Thanks everyone - glad to see some friendly faces cheering me on... :rotfl:how do you find these so quickly Valli?

Thanks for the offer FeeFee, I have just got back and have brought this one as its small enough for his room and sort of matches his furniture (dark wood) - we got the computer free, so I don't mind paying out a bit, but I suppose it's all the bits that add up don't they... see, putting it in writing makes you realise that £30 should be in my pocket not theirs...

Right, need to pick it up, get the computer and drop off an old quilt to the kennels... back in a bit to post my stuff...

Flylady_Flower

OK, not sure how it will show up on here, but I will alter if necessary...

This isn't including extras like car tax, mot's, clothing, kids, extras, ect... these are usually paid from the extra wages that I get which I try to save and my P.A.D. which SHOULD be going against my debts and I also try to save any of the budget that we do not use - ie: If I only use £25 on fuel and hubby only uses £25, then I save the extra £10 in our rainy day account, etc... which is currently empty due to my MOT just being done as it obviously gets used up regularly... which is why we never have anything... surely it can't be this expensive to live? where are we going wrong?

Regular Household Payments

(weekly amounts in brackets)
Rent (£ 103.03) £ 446.46
British Gas - Gas £ 75.00
British Gas - Electric £ 35.00
Council Tax £ 123.00
Anglian Water £ 18.00
Essex & Suffolk Water £ 11.20
TV Licence £ 11.95
Pet Food (£ 10.00) £ 43.33
Shopping (£ 60.00) £ 260.00
Diesel (£ 60.00) £ 260.00 (I drive 50 miles ew when I work - 3 times a week most times & hubby works 2 1/2 hours away so we do a lot of mileage)

Regular Additional Payments
Sky (no contract) £ 20.00
Talk Talk (Phone and Internet - no contract) £ 35.00
Vodafone (20 months left on contract) £ 65.00
Bank Charges (interest for overdraft) £ 6.00
Christmas Club - Savings (£ 10.00) £ 43.33

(£500 towards christmas at end of year)

Christmas Club - Loan (£ 10.00) £ 43.33
(drew £500 for holiday - will pay this until November)
Karate (£ 10.00) £ 43.33
Hubby to work away (£ 200.00) £ 866.67
(rent and living tax free allowance from company - included in wages further down)

Insurances
Pet Insurance £ 26.00
Car Insurance - Hubby £ 23.55
Car Insurance - Me £ 53.03
Life Insurance - Hubby £ 19.06
Life Insurance - Me £ 8.08
House Insurance £ 13.80

Business Expenses
Website Hosting £ 6.00
Business Bank Charges £ 15.00
Postal address £ 25.00
(I don't have an office but get post sent elsewhere because of all our moves)

Extras

Spending Money/evenings out (£ 50.00) £ 216.67
Eating out/Takeaways (£ 20.00) £ 86.67
Total regular monthly payments = £2,899.47

(Debts Outstanding) Minimum Monthly

F/Direct Loan - was £6000 (£ 2,796.33) £ 164.49
(set payments @ 19% apr)
(I try to pay £50 pm to each of the credit cards using my PAD, these show the minimum)
F/Direct Credit Card (27.9% apr) (£ 990.00) £ 29.00
Vanquis Visa - Me (46.8% apr) (£ 474.31) £ 21.00
Vanquis Visa - Hubby (47.89% apr) (£ 475.07) £ 22.00
Debenhams (29.9% apr) (£ 241.92) £ 18.00 (currently pay £50 pm)

Freemans Catalogue (0% apr) (£ 1,936.13) £ -
(Not due now, £600 balance starts in May @ £100 pm, rest of balance not starting until August then monthly payments go up)

First Direct Overdraft (12% apr) (£ 1,000.00) £ -
A&L business overdraft (11.9% apr) (£1,000.00) £ -
(The overdrafts are shown as maximum allowed, as it is usually up to this all the time as I try to pay off dearer stuff first)
Rent (£ 707.16) £ 95.20 (these are extra payments to the amount shown above as we have arrears - have agreed £115 per week (£11.97pw extra) actually pay £125 pw as want to exchange and need to do this ASAP)

Total Debts (£ 9,620.92) £ 349.69

Total of all Monthly Payments £ 3,249.16

Income
Hubbys Wages (£ 650.00) £ 2,816.67
(includes his tax free living allowance)
My Wages (£ 125.00) £ 541.67
(I want to work on minimums here as sometimes I don't earn anything)
Child Benefit (£ 20.00) £ 86.67
(£ 775.00) £ 3,358.33

Difference = £ 109.17 left a month

Any ideas???

Valli

Flylady_Flower wrote: »

F/Direct Credit Card (27.9% apr) £ 990.00 £ 29.00
Vanquis Visa - Me (46.8% apr) £ 474.31 £ 21.00
Vanquis Visa - Hubby (47.89% apr) £ 475.07 £ 22.00
Debenhams (29.9% apr) £ 241.92 £ 18.00 (currently pay £50 pm)



Any ideas???

Right Flower ***rolls up sleeves***

Question 1 - The 'Freemans?' which I inadvertantly deleted
£600 in May
£100 pcm
rest in August...yeah?

Have you got your £600 ready?


The 4 CCs are you paying £50 per month each? ie £200 to CCs?
What's in your rainy day fund?

If you are paying £50 to each of your 4 CCs DON'T

pay minimum to First Direct
pay minimum to Debenhams
pay minimum to your Vanquis
(I make that £68 - so from the £200 you say you are paying to CCs you have £132 to pay to hubby's Vanquis)
Snowball THAT card at that rate and tellme when it would be paid off...
In other words chuck as much as you can as quickly as you can (plus rainy day money if you have it - cos it's raining now) at the most expensive Vanquis as soon as that is covered get yours paid off.
Ooh though - what amount of interest is being added to your Vanquis - if it's more than the minimum payment we might have to tweak these ...

Flylady_Flower

Valli wrote: »

Right Flower ***rolls up sleeves***

Question 1 - The 'Freemans?' which I inadvertantly deleted
£600 in May
£100 pcm
rest in August...yeah?

Have you got your £600 ready?

Ahhh, worded this wrong - the whole balance is on buy now pay later - £600 of it starts in May, so I will be paying £100 a month as of May, then the rest becomes due in August, so approx £1800 left to start in August, which I can pay over 10 months, so £180 a month (can probably continue at £100 per month? will have to check out it will still be interest free) Edited above so it sounds better now

The 4 CCs are you paying £50 per month each? ie £200 to CCs?
What's in your rainy day fund?

If you are paying £50 to each of your 4 CCs DON'T

pay minimum to First Direct
pay minimum to Debenhams
pay minimum to your Vanquis
(I make that £68 - so from the £200 you say you are paying to CCs you have £132 to pay to hubby's Vanquis)
Snowball THAT card at that rate and tellme when it would be paid off...
In other words chuck as much as you can as quickly as you can (plus rainy day money if you have it - cos it's raining now) at the most expensive Vanquis as soon as that is covered get yours paid off.
Ooh though - what amount of interest is being added to your Vanquis - if it's more than the minimum payment we might have to tweak these ...

You are totally right about the credit cards - I just hate paying the minimums so feel I have to pay more, but I will do this as of now... thanks for the reminder... :T

By the way, I forgot to add in my first post that we have no credit rating - it is absolutly rubbish, so no chance of any swapping around or getting better credit...

Thanks Valli, this is great - I also want to add, I get an insurance payout soon (within the month hopefully) for approximately £1200 and the VERY FIRST THING I DO will be to pay off Vanquis as soon as the cheque clears... I can't wait - it will help sooooo much...

Valli

as long as you cover the interst on your slightly less expensive Vanquis then chuck EVERY spare penny at the Vanquis card of Hubby's and then yours... you should then get one of them paid off this year..possibly two ...and make payments as early as you can in the month too...
Can you still borrow against first direct and /or Debenhams - in an emergency?

Flylady_Flower

Valli wrote: »

as long as you cover the interst on your slightly less expensive Vanquis then chuck EVERY spare penny at the Vanquis card of Hubby's and then yours... you should then get one of them paid off this year..possibly two ...and make payments as early as you can in the month too...
Can you still borrow against first direct and /or Debenhams - in an emergency?

No, Debenhams is a store card only - can go to their cafe for a meal if we're desperate and FD card is only £1000 limit (both vanquis cards are also nearly up to their limit of £500 each too) As above, I will also be paying them off soon hopefully.

I did also speak to FD about paying off that card and then transferring the V cards to them at a better rate, but they only do the same rate and would charge me to do it too, so not worth it.

Flylady_Flower

I have spent some extra money today, but all in a good cause as DD got her place at uni and will be doing a Fashion Design & Textile Degree next year:j, so we celebrated with a bag of chips and a can of coke each, so I wasn't too naughty, tomorrow is when I have to watch myself as I will be at work, and the mocca there is soooo nice...

£4.70 chips & coke (and a buttered roll for me)
£35.00 for repair to mums computer that I broke...:o

I also put £4.80 into my PAD savings pot to pay off my card at the end of the month and got £80 child benefit paid in too - it will be tight till payday Thursday, but we should be OK till then.

I'm working tomorrow, so at least I'm earning but means no housework again...;)(my excuse anyway...)

It does help, this writing down what I've spent - makes you look at where the pennies go...