I feel a bit bad for posting

felix299

because compared to others my debt problems are very small. I really admire the way you guys can keep your heads up and be positive about it all. I have a credit card balance of £2300 an overdraft of £1200 and unsevured debt of £500. I seem to be hitting my head against a brick wall. My mortgage has been reduced since January, yet every month something has happened and the extra money I should have had available just disappears.

I find I am lying awake at night worrying about money. Our total income is about £2000 pm ( I plan to do a SOA tonight to work it out exactly)Whenever I get paid the money just seems to disappear. I already shop at Lidl for as much as I can but it just goes.

I pay when I can £100 per month on the CC (otherwise the minimum) and £60 per month on the unsecured debt (Currys Finance).

I have tried to cut back in areas but nothing seems to work. I really can't see an end to it.

I have tried to get a new 0% credit card but have been rejected by RBS and Virgin. I looked at Vanquis but I am paying less in interest to Barclaycard.

Any help or tips would be greatly appreciated

Thanks in advance

LilacPixie

get your SOA up as soon as possible. you need to be disiplined as well, I find without my spending diary money tends to just disappear

robpw2

dont feel bad all are welcome , i know how you feel
welcome to the board
do your soa
dont worry people on here will help as much as they can

Tixy

Hi Felix

Don;t feel bad, its not the size of the debt, its the fact that you are overspending or feel not in control of your money.

Definatley get the SOA done when you get a chance and also try keeping a spending diary (if there is 2 of you, you both need to keep one). Then after a month compare the spending diary info to your SOA (perhaps a spreadsheet comparing budget (SOA) to actual.

I'd suggest you don't try for more credit for a whie if you already have a few searches in the past 6months. You could get copies of your credit reports just to make sure there isn;t some erroneous stopping you get credit. Maybe in 6months you could apply for a life of balance transfer card (around 5-6%).

For some people it helps if they withdraw a set amount of cash and spend that rather than reaching for a card. Even a debit card can feel 'not real' money.

Good luck, once you've put together the SOA we'll be happy to pass comment and advise if you wish.

felix299

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1250
Partners monthly income after tax....... 400
Benefits................................ 360
Other income............................ 0
Total monthly income.................... 2010
Monthly Expense Details
Mortgage................................ 649
Secured/HP loan repayments.............. 60
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 12.5
Mobile phone............................ 60
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 130
Road tax................................ 20
Car Insurance........................... 23
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 140
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 26
Contents insurance...................... 0
Life assurance ......................... 13
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1886.5

Assets
Cash.................................... 0
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 131000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 130000...(649)......4.79
Hire Purchase (HP) debt ...... 0........(60).......0
Total secured & HP debts...... 130000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2332.87...52........14.9
Currys.........................550.......60........0
Total unsecured debts..........2882.87...112.......-

Monthly Budget Summary
Total monthly income.................... 2,010
Expenses (including HP & secured debts). 1,886.5
Available for debt repayments........... 123.5
Monthly UNsecured debt repayments....... 112
Amount left after debt repayments....... 11.5
Personal Balance Sheet Summary
Total assets (things you own)........... 131,000
Total HP & Secured debt................. -130,000
Total Unsecured debt.................... -2,882.87
Net Assets.............................. -1,882.87

It looks even worse in black and white. My gas and electric, and buildings and contents insurance are combined

Tixy

Hi felix

Your gas & elec are high at £100 combined. Have you checked you are on the best tariffs/provider? Do you turn things off when not in use - lights, appliances (at the plug)? Keep electric heaters, imersion heaters, tumble driers to a minimum as these all cost lots. Make sure washing loads are full before using a washing machine or dishwasher. Do you use energy bulbs?

No water rates - are these in with council tax or have you forgotten to include them?

Groceries - some scope to reduce a bit, maybe £50 or so. have you tried to drop a brand/buy shops brands? Meal plan before you shop? Cook from scratch? The old style board on MSE has loads of ideas for eating cheaply and healthily. Lidl is cheap for some items but more costly for others - if you are big meat eaters shopping at a butchers can be cheaper. For cleaning products/toiletries also look in places like £1shops, wilkinsons, home bargains. Cleaning products are a good thing to buy store brands they usually work just a good as the household name brands and its not like you are eating them!

Whats other travel relate to?

How old are your children? Is the childcare childminders or nursery (is it likely to finish anytime soon e.g. if they start school). Assume your partner is working parttime - again any chance their hours can increase soon?

It looks like you are just breaking even each month £11.50 surplus. Is this right - are you increasing your debts still, still using cards?
I'd suggest keeping a spending diary (oops already mentioned that in my earlier post- but its a good idea!) to keep a track of things.

How much longer does your HP have to run (assume this is the car?)
Is the £550 on currys the current balance or an original amount?

I'm sure others will come up with more suggestions soon.

felix299

Thanks Tixy. I live in Scotland, so the water rates are in with council tax. I have an old immersion system in the house which accounts for the high gas/electric costs. Other travel is my bus fares to work.

My youngest is 3 so there is scope for the childcare to come down soon. The HP is a typo. Nothing on that. The car is paid for. We are looking at my wife working more hours although childcare costs are a consideration. If both kids are at childminders then we lose money.

The good news is we aren't using cards every month. We have managed to get in a position where we aren't spending more than we have coming in. Just no sign of debts reducing

skintas_2

hi felix you sound likeme, every time i have some spare chas it just goes on something, worse thing is summer holidays are coming the kids are at home and they eat even more... good luck with the moneysaving you will get there..x

david_hellier

Tixy wrote: »

Hi Felix

Don;t feel bad, its not the size of the debt, its the fact that you are overspending or feel not in control of your money.

Definatley get the SOA done when you get a chance and also try keeping a spending diary (if there is 2 of you, you both need to keep one). Then after a month compare the spending diary info to your SOA (perhaps a spreadsheet comparing budget (SOA) to actual.

I'd suggest you don't try for more credit for a whie if you already have a few searches in the past 6months. You could get copies of your credit reports just to make sure there isn;t some erroneous stopping you get credit. Maybe in 6months you could apply for a life of balance transfer card (around 5-6%).

For some people it helps if they withdraw a set amount of cash and spend that rather than reaching for a card. Even a debit card can feel 'not real' money.

Good luck, once you've put together the SOA we'll be happy to pass comment and advise if you wish.

Excellent advice!