Time to sort out the debt * 8 weeks on *

a_j_mair

right this is my first post in here

a little background

I live with my partner and our daughter in an x local authority house we bought approx 18 months ago

I also own the property next door that i rent out.

I work full time and my partner works 3 days a week, the wee one goes to her great grans 3 days a week

In our house i am the main earner and deal with all the bills upkeep etc

my partner sorts out groceries and stuff for the wee one


so after that ramble after being skint this month i have decided its time to sort out all my debt starting with the credit cards

I currently have 2 one with both our debts on it, thats down to £1700 now

the other is used every now and then and after alot of DIY over the summer and me buying tickets for a few events that i couldnt afford it has crept back upto £680

I also have a student loan that has £90 or so to pay off so that should be gone in a month or so and see me with an extra £17/week

I have done a SOA but not sure if it is correct

I need to double check my %s

How i work it just now is by putting £290 away every week to pay for the bills + £415 + £50 for the rent next door

this = £1625

however that is worked on a 4 weekly basis and not monthly

basically wondering if putting my £290/w for bills and £10/w savings is the right idea?

I plan to up these to £300/w and £25/w when student loan is payed off

here is my SOA

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1521
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 500
Total monthly income.................... 2021
Monthly Expense Details
Mortgage................................ 475
Secured/HP loan repayments.............. 460
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 48
Gas..................................... 33
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 14.5
Mobile phone............................ 30
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35
Internet Services....................... 17
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 25
Car Insurance........................... 46
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 18.38
Contents insurance...................... 9.62
Life assurance ......................... 14.24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1395.86

Assets
Cash.................................... 100
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 3000
Total Assets............................ 197100

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 69000....(475)......6.45
Secured Debt.................. 82400....(460)......5.4
Total secured & HP debts...... 151400....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
cc.............................1700......65........0
cc.............................680.......25........16.9
car............................8000......185.......6.4
Total unsecured debts..........10380.....275.......-

Monthly Budget Summary
Total monthly income.................... 2,021
Expenses (including HP & secured debts). 1,395.86
Available for debt repayments........... 625.14
Monthly UNsecured debt repayments....... 275
Amount left after debt repayments....... 350.14
Personal Balance Sheet Summary
Total assets (things you own)........... 197,100
Total HP & Secured debt................. -151,400
Total Unsecured debt.................... -10,380
Net Assets.............................. 35,320



sorry for the huge ramble

Tixy

Hi AJ and welcome to DFW

Having to be quick because I should have started back at work 10mins ago - just some thoughts

a_j_mair wrote: »

How i work it just now is by putting £290 away every week to pay for the bills + £415 + £50 for the rent next door

this = £1625

however that is worked on a 4 weekly basis and not monthly

basically wondering if putting my £290/w for bills and £10/w savings is the right idea?

I plan to up these to £300/w and £25/w when student loan is payed off
Sorry this is a bit confusing - You put aside £290 from your pay each week but what is the £415 and the £50? Are these both the rent coming in? presumably this is mostly used up by the mortgage on the second house?

here is my SOA

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1521
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 500 rent or something else as well?
Total monthly income.................... 2021
Monthly Expense Details
Mortgage................................ 475
Secured/HP loan repayments.............. 460 mortgage on second house?
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 48
Gas..................................... 33
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 14.5
Mobile phone............................ 30
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35
Internet Services....................... 17
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 0 is this all paid by OH?
Road tax................................ 25
Car Insurance........................... 46 seems quite high
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 18.38 do you have buildings ins on next door as well or included in this?
Contents insurance...................... 9.62
Life assurance ......................... 14.24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1395.86

Assets
Cash.................................... 100
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 3000
Total Assets............................ 197100

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 69000....(475)......6.45
Secured Debt.................. 82400....(460)......5.4
Total secured & HP debts...... 151400....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
cc.............................1700......65........0
cc.............................680.......25........16.9 prioirty to repay
car............................8000......185.......6.4 is the current bal or original? Is it a secured loan or just a personal loan you used for the car?
Total unsecured debts..........10380.....275.......-

Monthly Budget Summary
Total monthly income.................... 2,021
Expenses (including HP & secured debts). 1,395.86
Available for debt repayments........... 625.14
Monthly UNsecured debt repayments....... 275
Amount left after debt repayments....... 350.14 do you have this? what do you do with it (ie pay off extra on debts) if you don't know then start a spending diary.
Personal Balance Sheet Summary
Total assets (things you own)........... 197,100
Total HP & Secured debt................. -151,400
Total Unsecured debt.................... -10,380
Net Assets.............................. 35,320



sorry for the huge ramble

Never any problem with rambling here! Welcome on board

Frozenace

How long do you have before you can re-mortgage or go on the SVR?

at the moment it's quite a bit lower than 6.45... at least until inflation or economy goes back up.

a_j_mair

the rent next door is DSS so £415 4 weekly from the council and £50/month from tennant

the £500 other income is rent

the £460 is my other mortgage yes

i have a work pickup with free diesel for buisness and personel use

car insurance is £550 ish /12 = £46
renewal due start of november

buildings insurance shown is building and contents
contents shown is actually building insurance for next door

The car is bought on finance and had negative equity toi get rid of OH car and clear finance on it

need to double check exact figures ( at work so dont have them )

I havnt been getting that much extra a month as everything is 4 weekly but then i get months like next where get an extra £290

I am just back a week golfing holiday which used up extra cash. normally use it to pay off CC though

my problem has been redoing all outisde of house along with buying tickets for t in the porak and a couple tickets for frankie boyle

all spending on cc is stopped after saturday ( got to treat mother in law to dinner )

a_j_mair

my mortgage for next door property has lapsed and is now on svr

£82k mnortgage
£85k property

was on tracker so has went from £380 upto £460

best deal i could get was fixed for 2 years and was going to be around £560/month

i will need to double check all interst rates yet

kacie

Do you not pay for the groceries?

Tixy

If you are doing a monthly budget, then for any weekly cost (or income)_ you should multipy by 4.33 to get a true reflection.

Are these just your debts listed? Does your wife also have debts? It may be worth doing a joint SoA including all her wages and all the benefits you are entitled to. It may be that one of you has more spare cash than the other and you need to re-jig who pays for what.

When you come to doing your insurance renewal follow through Martins guide to check you have checked all the comparison sites and to see if you can earn cashback on your new policy.

B&C insurance & life ins look good prices. In fact most of your other expenditure looks reasonable. Although I think you need to set a specific budget for entertainment and then make sure you don't exceed that each month (if you wan't expensive tickets you will have to save for them!). Otherwise without a budget at all people tend to spend more.

Also perhaps put aside a small emergency fund each month into a seperate online account for any future house repairs or any potential repairs on next door (not a huge figure) but so you don't have to keep using credit cards.

Get in the habit of not taking credit cards out with you, if you haven't already then cut up at least one card (both would be better......)

Once you have redone everything to monthly figures then its probably a case of just being strict with yourself and stopping the spending on extras. You could clear the small card in 2-3 months and then focus on the larger balance.

Good luck

a_j_mair

these are all the debts, partner has no debt now, was just her old car and a credit card which we have put onto 1 card now

I am going to start putting £25 away every week instead of £10 when my student loan os payed off

should i use that money to pay off my debt?

I used to try and keep a minimum of £500 in the savings account for unforseens but now have just been using it to try and lower the debt

I am going to try the £10 a day challenge untill the end of october and keep a record of it so hopefully that will help pay off the credit card

LandyAndy

It's a good example of couples trying to keep their finances separate when that is all but impossible in a long term relationship.

If you actually treated yourselves as a single unit, which is how, I presume, you view yourselves, what would your SOA look like?

You do say that your cc's have joint expenduiture on them and I presume that you both enjoy use of the car?

a_j_mair

1 credit card is both debts, OH gives me £50 a month to help pay it off

I only use the car when we are both going away really, i have full use of the navara so use it most of the time as is free

dont think it would really make any difference, she gets £100ish/w £50 petrol £50 groceries then £20/w tax credits and £80/m working credits

she has
£15/m for gym
£25/m mobile

It works out pretty good just now really in my opinion anyway, i just dont like ahving debt and its starting to ware on me so time to do something constructive about it.

Have added a sig with my aims, will try and keep it updated

a_j_mair

Thats the first £22 towards my target

hopefully have more next friday when the monthly bills come out