Dazed and Confused by information!

Helz1980

Tixy wrote: »

Hi Helz

I have completed the summary info above with the figures from your SoA and made a few comments/suggestions on your expenditure.
The problem most people have is that the write out a budget but don't realise exactly how much the are spending on 'bits and bobs' such as magazines, top up trips for food, lottery tickets, lunches at work, etc etc. The way to track down the missing surplus is to keep a spending diary for a couple of months, where you write down everything you spend (even just 50p on a bar of chocolate).

Whilst your supermarket shop could be lower - you may find that if you do a spending diary you have actually been spending more historically, same for clothes (I note the DPerkins card).

I expect Payplan couldn't help because of your surplus. You can manage your minimum repayments and if you can just make a few cutbacks you could start to really tackle your debts. You don't need a commercial debt company and an IVA would not be suitable for you. They are only interested in earning their fees.

Whenever you are tempted to purchase something ask yourself do you really need it? At the moment you have combined overall liabilities of £27,363, so it might help to think that the money you earn is not actually yours and every purchase you make is with borrowed money.

Ideally debts should be tackled highest APR first which would be your store card. However as a small boost some people like to tackle a small debt first - so your HFC would be a good example of this - if you stick to this budget (or improve it) that debt could be cleared in 2months.

Hope this helps
Tixy

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1689
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 300 (OH is a retained fireman)
Total monthly income.................... 3389

Monthly Expense Details
Mortgage................................ 664
Secured/HP loan repayments.............. 163 Is this a car? Yes
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 10 seems suprisingly low? Working on figures of last bill, will look again
Gas..................................... 10
Oil..................................... 55
Water rates............................. 24.25
Telephone (land line)................... 40.5 (internet included - BT)
Mobile phone............................ 60 (both mobiles, no option of provider due to where we live - middle of nowhere!)
TV Licence.............................. 11.95
Satellite/Cable TV...................... 39 drop some channels? or switch to freeview? already looking to drop Sky sports, freeview not available in my village!
Internet Services....................... 0
Groceries etc. ......................... 200 could be reduced a little more - Definitely, going to look at what i have spent in the last month
Clothing................................ 50 could cut out for a short while Agree!
Petrol/diesel........................... 180
Road tax................................ 20
Car Insurance........................... 30
Car maintenance (including MOT)......... 90 seems high? is this right figure? Again need to relook at this
Car parking............................. 15
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 0
Buildings insurance..................... 22.5
Contents insurance...................... 0
Life assurance ......................... 54
Other insurance......................... 0
Presents (birthday, christmas etc)...... 76 high, but best to be realistic if thats what you spend - hopefully you can work on reducing this Agree!
Haircuts................................ 25
Entertainment........................... 250 could be reduced, anything specific here? This is a ball park figure working on golf fees etc, but definitely looking to reduce
Holiday................................. 50
Emergency fund.......................... 0
Golf membership......................... 80 (OH is Captain) if you have this then definatley consider reducing other entertainment budget
Dog..................................... 5
Dentist................................. 10.5
Home Friendly Society................... 25 is this savings? how much saved? This is OH, and i couldnt find the last statement
Total monthly expenses.................. 2372.7

Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 5800
Other assets............................ 0
Total Assets............................ 140800

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 123000...(664)......3.5%
Hire Purchase (HP) debt ...... 6000.....(163)......0% assume not really 0% It is actually 0% SEAT had this deal in March this year, over 36months so in the end i own my car and no extra interest paid
Total secured & HP debts...... 129000....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Virgin Credit Card.............6171.9....101.3.....16.6
Virgin Credit Card.............5669.44...71.6......16.6
Lloyds.........................9084.74...260...... .20.9
Lloyds Overdraft...............3500......0.........? look on statements for APR
HFC............................249.......19.68.... .19.92
Northern Rock Loan.............3000......98........?
Dorothy Perkins card...........1100......43.88.....29.9 high rate - card to target first
Post Office....................4692......113.......0
Lloyds.........................5696......170...... .20.9

Summary of Monthly Income, expense and surplus

Total monthly income: £ 3389
Expenses (incl. HP & secured debts): £ 2373
Available for debt repayments: £ 1016
Unsecured debt repayments: £ 877.46
Surplus (shortfall if negative) £138.54

Personal Balance Sheet Summary
Assets: £ 140800
Secured & HP Debt £ 129000
Unsecured Debt £ 39,163.08
Net Assets £ -27363

Thanks Tixy for taking the time to go through the above. My OH and I have a lot of work to do and basically need to organise things properly, which we havent done in the past. We had a discussion last night and we may not go through a company and look to do it ourselves - which is what i suggested in the 1st place but wasnt listened to! lol

BUT i do feel more positive about tackling it cos we arent hiding anymore

Helz

Tixy

I think thats it Helz - organisation and a bit of planning are probably all thats needed now you have had your light bulb moment. Taking control of your money rather than it controlling you is very liberating. I'm sure you can do it between you.

Good luck

PS lucky you with a fireman husband - I do like fireman! :rotfl:

Helz1980

and he is also a mechanical engineer, so i get overalls and a firemans uniform! lol