Determinedtodothis - debt busting year 2

determinedtodothis

Well i've had my up's, my down's, my sideways and my, "where on earth am I going with this" I have had a fantastic first year I have already shaved a year off my debt free date all thanks to you guys.

I wanted a fresh start to the "new year" and I thought i'd get you all to look at my new SOA - please feel free to point out where I am going wrong - you guys have been my inspiration, my sanity and my support.. THANK YOU! :T



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

Monthly Income Details
Monthly income after tax................ 1181.90
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0 (I do have a little business but its new and everything i'm earning is going back into it)
Total monthly income.................... 1181.90

Monthly Expense Details
Mortgage................................ 438.00
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 99.00 (inc, water, sewage & buildings!)
Council tax............................. 101.00
Electricity............................. 70.00 (sure this is too high)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15 (average £12.50)
Mobile phone............................ 25.00 (PAYG)
TV Licence.............................. 11.25
Satellite/Cable TV...................... 13.70 (Free films = cheap night in with friends)
Internet Services....................... 37.00 (this is broadband & host fee's for my business)
Groceries etc. ......................... 140 (too high?)
Clothing................................ 0
Petrol/diesel........................... 30.00
Road tax................................ 11.50
Car Insurance........................... 25.41
Car maintenance (including MOT)......... 15.00
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 11.70 - this is the platinum,whats everyone's thoughts? its the one with unlimited payout per illness during cats life
Buildings insurance..................... 0
Contents insurance...................... 14.00 (too high?)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1046.56


Assets
Cash.................................... 0
House value (Gross)..................... 135,000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 140,000


Secured & HP Debts
Description............................. Debt..........Monthly.....APR
Mortgage............................... 79354........(438)........4.49
Total secured & HP debts...... 79354............-...............-

Unsecured Debts
Description............................. Debt..........Monthly......APR
Loan 1..................................7018.75.........25.25..........0
Credit Card 1..........................690...............5.00...........0
Credit Card 2........................5090.75........20.75...........0
Total unsecured debts............12799.50...........51.00...........-


Monthly Budget Summary
Total monthly income.................... 1,181.9
Expenses (including HP & secured debts). 1,046.56
Available for debt repayments........... 135.34
Monthly UNsecured debt repayments....... 51
Amount left after debt repayments....... 84.34


Personal Balance Sheet Summary
Total assets (things you own)........... 140,000
Total HP & Secured debt................. -79,354
Total Unsecured debt.................... -12799.50
Net Assets.............................. 47,846

TellTheTruth_2

determinedtodothis wrote: »

Monthly Expense Details

Management charge (leasehold property).. 99.00 (inc, water, sewage & buildings!) <- Strange you say including water and sewage cos on a leasehold you have to pay to your water provider seperately. I also have a 125 year lease and I do. My management charge for this year is £120 for building insurance and £128.75 management charge. Water/Sewage I have to pay seperately to the local supplier.

Electricity............................. 70.00 (sure this is too high) <Not if you do not have gas as well. In fact is is slightly low.

Water rates............................. 0 <-See note about re water and sewage.

Clothing................................ 0 <- Do you run around in the nude? (Joking.......)

Medical (prescriptions, dentist etc).... 0 <-Must be one fit dude if no doctor and never to a dentist.

Buildings insurance..................... 0 <-Oh yes you do!!! It is usually charged with the Management Charge.

Haircuts................................ 0 <-Never get your hair cut?

Entertainment........................... 0 <- Nothing??

Unsecured Debts
Description............................. Debt..........Monthly......APR
Loan 1..................................7018.75.........25.25..........0 <- No interest!!
Credit Card 1..........................690...............5.00...........0 <- A credit card with no interest!!!
Credit Card 2........................5090.75........20.75...........0 <- Wow another one.

Notes added. I think you should read your Management Charge re insurance, water and sewage. ALL longterm leases have a Management Charge and also have provisions for insurance which the leaseholder has to pay. And considering you say you are in London £99 for management charge is already too cheap by itself. I live in the North East and my management charge is £128.75 excluding the premium for buildings insurance.

Good for you for taking action but I think you should check the notes I have added. (Note: Posted with a bit of humour. OK?)
Nick Smith

Katgrit

Pet insurance
£11.70

Cost to put cat down if cat gets ill = £30
Cost of new cat = £20
Only need cat to survive for 5 months without any insurance and you're in pocket. I was contemplating getting a cat a few weeks ago and asked advice off my neighbours regarding cost, food, insurance etc. They've always had a cat of some sort for years be it either adopted stray or bought pet. I thought it was a bit of a heartless approach but then saw their point. Cats go off doing their own thing too much to insure them, they're too much of a risk to make the cost viable. Dogs yes, they stay in your garden, worth insuring. But why insure something that can go trolling off by itself never to be seen again? Buy a new one if it goes wrong and you'll save yourself £11.70 a month. I know i'm not a pet person, but my neighbours are and i can totally understand their point of view on this now.

Deb has lost 2 cats now and although she's always gutted she perks up not long after she gets a new one. Nothing as cute as a new kitten to make her smile.

slig

Well, at least you admit you're not a pet person, Katgrit! Personally, I think people should only get pets if they can afford to take them to the vets and pay for any treatment they require, within reason. If someone can't afford to have their pet treated for an accident or illness and so has it put down instead, in NO WAY should they be considering getting a new kitten.

I'm undecided about whether pet insurance is a good idea in general though, I guess it's a gamble really. I don't have it for my pets but they are small animals so treatment would never go above about £100, and that would be the absolute worst case scenario type cost (max I've paid is about £50). For cats or dogs, I probably would get it just in case, and £11.70 a month doesn't sound too horrific.

Determinedtodothis, I agree your grocery bill is high. Can you cut down gradually, aiming to get to, say, £100 eventually? For me, £60 to £80 a month is plenty, but I have cheap taste and a small appetite, so I know this isn't realistic for everyone. But I think at £140 for one person there is definitely room to make savings.

Shoe_Gal

determinedtodothis wrote: »

Well i've had my up's, my down's, my sideways and my, "where on earth am I going with this" I have had a fantastic first year I have already shaved a year off my debt free date all thanks to you guys.

I wanted a fresh start to the "new year" and I thought i'd get you all to look at my new SOA - please feel free to point out where I am going wrong - you guys have been my inspiration, my sanity and my support.. THANK YOU! :T



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

Monthly Income Details
Monthly income after tax................ 1181.90
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0 (I do have a little business but its new and everything i'm earning is going back into it)
Total monthly income.................... 1181.90

Monthly Expense Details
Mortgage................................ 438.00
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 99.00 (inc, water, sewage & buildings!)
Council tax............................. 101.00
Electricity............................. 70.00 (sure this is too high)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 15 (average £12.50)
Mobile phone............................ 25.00 (PAYG)
TV Licence.............................. 11.25
Satellite/Cable TV...................... 13.70 (Free films = cheap night in with friends)
Internet Services....................... 37.00 (this is broadband & host fee's for my business)
Groceries etc. ......................... 140 (too high?)
Clothing................................ 0
Petrol/diesel........................... 30.00
Road tax................................ 11.50
Car Insurance........................... 25.41
Car maintenance (including MOT)......... 15.00
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 11.70 - this is the platinum,whats everyone's thoughts? its the one with unlimited payout per illness during cats life
Buildings insurance..................... 0
Contents insurance...................... 14.00 (too high?)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1046.56


Assets
Cash.................................... 0
House value (Gross)..................... 135,000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 140,000


Secured & HP Debts
Description............................. Debt..........Monthly.....APR
Mortgage............................... 79354........(438)........4.49
Total secured & HP debts...... 79354............-...............-

Unsecured Debts
Description............................. Debt..........Monthly......APR
Loan 1..................................7018.75.........25.25..........0
Credit Card 1..........................690...............5.00...........0
Credit Card 2........................5090.75........20.75...........0
Total unsecured debts............12799.50...........51.00...........-


Monthly Budget Summary
Total monthly income.................... 1,181.9
Expenses (including HP & secured debts). 1,046.56
Available for debt repayments........... 135.34
Monthly UNsecured debt repayments....... 51
Amount left after debt repayments....... 84.34


Personal Balance Sheet Summary
Total assets (things you own)........... 140,000
Total HP & Secured debt................. -79,354
Total Unsecured debt.................... -12799.50
Net Assets.............................. 47,846

Just a couple of comments I thought might help :

Electricity - I live alone in a 2 bedroomed flat with no gas and electric heating. I pay £40 per month with EDF and am slightly in credit after my 2 'winter' statements

Contents insurance - I pay £8 per month with Lloyds TSB, and I have been too lazy to switch for the last couple of years! Would expect it to be higher for London but as I am in Manchester wouldn't have expected it to be be nearly twice as much as Manchester is usually fairly highly rated for insurance

Good luck with everything

Shoe Gal

TellTheTruth_2

Katgrit wrote: »

Pet insurance
£11.70

Cost to put cat down if cat gets ill = £30
Cost of new cat = £20

Cost to put cat down = £30!!!!! Local chinese takeaway and it will be on the menu as Rabbit and rice. :D

Alternatively there are vets in most towns where you can have the cat (or dog) checked or if need be put down for free. You just make a donation. They are mostly to help unemployed and retired people who have pets. It is only private vets that charge a lot of money.

Cost of new cat = £20!

My neighbour has got a cat and I am sick of it coming into my back yard. Do you want it for £10? (That is £5 for the cat and £5 for the postage).

Ok Ok!!!!!! I know. I am in a cheeky mood. ROFL

Nick Smith

Fire_Fox

TellTheTruth wrote: »

Notes added. I think you should read your Management Charge re insurance, water and sewage. ALL longterm leases have a Management Charge and also have provisions for insurance which the leaseholder has to pay. And considering you say you are in London £99 for management charge is already too cheap by itself. I live in the North East and my management charge is £128.75 excluding the premium for buildings insurance.

Good for you for taking action but I think you should check the notes I have added. (Note: Posted with a bit of humour. OK?)
Nick Smith

Do you actually know what you are paying for with this? Do you have a gym or concierge service or sinking fund? Have you looked at what similar properties are paying? I live in Bradford and service charges start from £600 a year here so yours seems high. Admittedly mine is £160 a month all in but I am sure we are being charged for fraudulent invoices (looooong story!).

Fire_Fox

determinedtodothis wrote: »

Well i've had my up's, my down's, my sideways and my, "where on earth am I going with this" I have had a fantastic first year I have already shaved a year off my debt free date all thanks to you guys.

I wanted a fresh start to the "new year" and I thought i'd get you all to look at my new SOA - please feel free to point out where I am going wrong - you guys have been my inspiration, my sanity and my support.. THANK YOU! :T

Some thoughts .... do you need two phones for one person? I have my own flat and don't bother with a landline, just a mobile at £12 a month with inclusive calls to landlines. Also do you need to run a car if you live in London? You haven't really accounted for maintenance properly on your SoA.

Electricity ... definitely too high. We spend £34 a month for a two bedroom flat! This means heating just one room in winter (electric blanket on bed), shorter showers, no tumble dryer. Pet insurance is really your decision but, having been a cat owner myself, I would say I would not have needed unlimited cover. Most expensive conditions it would be kinder to let your pet go than put him/ her through extended treatment programme or major surgery. I have had to make that decision myself.

If you are only using satellite TV for the films there is a code for three months free DVD rental with Lovefilm on these boards. :T You only need four friends to take turns and you've saved yourself £170 a year - perhaps more as I bet the landline is part of the package. Hosting fees for the business should not be on your SoA, your business expenses should be separate as you can offset this against tax once you start drawing a wage.

determinedtodothis

Hi guys thanks for this! and Nick you make me smile! *LOL*

• Interest rates on loan & CC's - my nice creditors have frozen this....for now!
• Managment Charge - very cheap for local, inc's water, sewage, bins, buildings insurance, window cleaning the gardensand a sinking fund etc..
• I'm trying to keep an eye on the leccy - i'm seriously considering buying massive candles - i religiously unplug everything but the fridge at night and when i got to work
• Fire fox - i agree with the internet as it does get paid for with the profits that i make (i'm just breaking even, early days) BUT i do need to pay BT for the phone line to have the broadband.
• I'm growing my hair so no hair cuts - i just wear it up all the time :rolleyes:
• clothes - no nuditiy i'm afraid Nick -I have enough clothes, i go up and down in weight like a yoyo so i have a set of clothes in an 8, 10 & 12 *LOL* so they don't all get worn out so much! i just swap the bag in loft!
• doctor - i am *TOUCHING WOOD* very lucky, and no i only go to the dentist if something hurts got my own kit!! (maybe should consider putting £50 a side Just in case)
• Pet insurance -i'm thinkin maybe you are right its up in Sept so i will start shopping around

Thanks guys!

gfplux

Hello determinedtodothis,

Well done on the last years hard work. I am sure you will be cured in time.
Lots of great advise has already been given.

I worry about this for you:-
You say - "Interest rates on loan & CC's - my nice creditors have frozen this....for now!"

This is the Tiger (yes a cat theme) waiting in the grass to get you. As we know nice creditors can become nasty ones at the drop of a hat.

I hope you can find some small amounts to throw at these. (or open a separate savings account and pay by standing order say £20 a month in as your emergency Tiger fighting fund!

Good Luck

determinedtodothis

Thanks Everyone!

I totally agress with the creditors pouncing when I least expect it! so i am more determined to get a safety net I know some people don't think its right to have savings when you owe but i will incase something comes up when i least expect it!

I am also challenging myself to 15 NSD's this month!