LBM .... whats happened so far

Happiness6500

Hello all

I have viewed MSE for a couple of years . but ive been hiding in the sand over debt for years . I am 44 and by the time im 50 i want to be financially sound . I have spent my time over the years reconsolidating loan after loan, have been a serial bank charges loser (although i have curbed that greatly in the passed 3 years) I have spent money carelessly and usually thought buy and worry tomorrow. Well tomorrow has finally come

So on the Thursday the 15/10/2009 i had my LBM ....its been bubbling under the surface for a few months ..but it arrived . The day I said 'No More'...In itself it was a weightlifter. On that day i spoke to my best friend and told her about the debt. and later i spoke to more of my friends explaining about my difficulties and the need to curb spending. They were very understanding. That evening I viewed the National Debt helpline website and downloaded there help pack. (For anyone reading this i found it very useful) I then called them and spoke to and advisor
We spoke about my problem debts. Also what to do initially. The main one was to open a new current account with a smaller less well known bank. That way i could take control of my finances without fear of monies being taking from my account as i had a bank loan with my present bank. Thus with respect to my credit debts i would look at them all inpartially and without favour , with a future view of arranging a pro rata repayment to each .

So Friday 17th i did this with a small local bank. was much releived that following there credit check i was allowed to open a current account (albeit without a switch card ) but capacity to pay my salary in, set up standing orders and direct debits for essential payments like rent , council tax and power. Also i contacted Sky , i didnt cancel but i got a 25% discount so saved £6 now £16.50. Will review this soon. Also started to contact my lenders , Spoke to LLoyds Customer Support unit. They changed my account from a Silver (benefit account) to a Control (basic account0) saving me £7.95 a month on the fee. Also advised them of my difficulties repaying loan right now . They were helpful and gave me the number for CCCS. Also spoke to Black Horse who also appeared helpful in initial discussion, they too suggested CCCS. I hadnt realised initially they would maybe be able to help me with a Debt Management Plan. I called CCCS and spoke to an advisor. She took my details and arranged for an advisor to call me back re the DMP, she also gave me a reference to quote to lenders . This will happen Wednesday 21st at 3.30, so keep you posted on that one. Felt i had achieved a few things , felt very positive about steps in the right direction

Saturday and Today have taken stock and tried to chew a few things over , but intend to contact other lenders tomorrow to advise . Also called BT about finding out what the deal is with my existing package. Lady is calling me back tomorrow evening to discuss . but if i combine my broadband,phone and tv i may be able to save £11 (i pay £35 + £16.50).

Anyway here i am today . I have started a spending diary and took a list to the supermarket , had a wee think about what i needed before hand)


So thankyou for indulging me . I realise there is debt diaries and i will start using that page from now on. But I am aware you good people are out there and want to submit my SOA for your reading and much needed advise. I realise it wont all be plain sailing and it will involve pain. but go for it . I have a few details to add to bring u uptodated with my situ. This year my Dad died i incurred a few expenses on the way , But Dad had kindly included me in his will and at some point there will be an inheritance, unfortunately on the back of this i have added about £9k of debt this year . (Silly i know) But due to legal constraints the inheritance has still not yet materialised. Also my Daughter went off to Uni (more expense to help her set up) and i dropped about £220 from last month in tax credit and child benefit. Hence the realisation . The monies from Dads will, will help but i will need help when these come along to ensure i use the money in the best way.

Anyway sorry for babbling on I am sure i have given you much to think about and finally my SOA , i look forward to hearing from you

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................ 1554
Partners monthly income after tax....... 0
Benefits................................ 177
Other income............................ 0
Total monthly income.................... 1731
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 250
Rent.................................... 267.6
Management charge (leasehold property).. 0
Council tax............................. 79
Electricity............................. 24
Gas..................................... 70
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11.25
Mobile phone............................ 83
TV Licence.............................. 12
Satellite/Cable TV...................... 16.5
Internet Services....................... 22.5
Groceries etc. ......................... 356
Clothing................................ 26
Petrol/diesel........................... 187
Road tax................................ 125
Car Insurance........................... 28
Car maintenance (including MOT)......... 300
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 5
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 23
Presents (birthday, christmas etc)...... 40
Haircuts................................ 25
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 60
Total monthly expenses.................. 2075.85

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 480
Car(s).................................. 5500
Other assets............................ 0
Total Assets............................ 5980

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1970.....(250)......0
Total secured & HP debts...... 1970......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds loan....................7431......99........6.5
black horse loan...............10242.....262.......0
capital one c/c................1108......35........0
money shop cheques.............450.......450.......0
paydaybank payday loa..........650.......650.......0
quickquid payday loan..........250.......250.......0
shop direct a/c................2433......100.......0
next account...................712.9.....72........0
Total unsecured debts..........23276.9...1918......-

Monthly Budget Summary
Total monthly income.................... 1,731
Expenses (including HP & secured debts). 2,075.85
Available for debt repayments........... -344.85
Monthly UNsecured debt repayments....... 1,918
Amount short for making debt repayments. -2,262.85
Personal Balance Sheet Summary
Total assets (things you own)........... 5,980
Total HP & Secured debt................. -1,970
Total Unsecured debt.................... -23,276.9
Net Assets.............................. -19,266.9
.


Regards


Happiness6500

Shoe_Gal

Hello and welcome!

Didn't want to read and run - good luck with all your plans, the support here is amazing

Nargleblast

Happiness6500 wrote: »

Hello all



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................ 1554
Partners monthly income after tax....... 0
Benefits................................ 177
Other income............................ 0
Total monthly income.................... 1731
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 250
Rent.................................... 267.6
Management charge (leasehold property).. 0
Council tax............................. 79
Electricity............................. 24
Gas..................................... 70
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11.25
Mobile phone............................ 83 (go pay as you go)
TV Licence.............................. 12
Satellite/Cable TV...................... 16.5 (get Freeview instead)
Internet Services....................... 22.5
Groceries etc. ......................... 356 (try the Old style Moneysaving board for tips)
Clothing................................ 26 (you must have enough clothes for a while so lose this)
Petrol/diesel........................... 187 (think of ways to reduce)
Road tax................................ 125 (are you sure this is monthly amount?)
Car Insurance........................... 28
Car maintenance (including MOT)......... 300 (are you sure this is monthly amount?)
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 5
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 23
Presents (birthday, christmas etc)...... 40
Haircuts................................ 25
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 60
Total monthly expenses.................. 2075.85

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 480
Car(s).................................. 5500
Other assets............................ 0
Total Assets............................ 5980

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1970.....(250)......0
Total secured & HP debts...... 1970......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds loan....................7431......99........6.5
black horse loan...............10242.....262.......0
capital one c/c................1108......35........0
money shop cheques.............450.......450.......0
paydaybank payday loa..........650.......650.......0
quickquid payday loan..........250.......250.......0
shop direct a/c................2433......100.......0
next account...................712.9.....72........0
Total unsecured debts..........23276.9...1918......-

Monthly Budget Summary
Total monthly income.................... 1,731
Expenses (including HP & secured debts). 2,075.85
Available for debt repayments........... -344.85
Monthly UNsecured debt repayments....... 1,918
Amount short for making debt repayments. -2,262.85
Personal Balance Sheet Summary
Total assets (things you own)........... 5,980
Total HP & Secured debt................. -1,970
Total Unsecured debt.................... -23,276.9
Net Assets.............................. -19,266.9
.


Regards


Happiness6500

Just a few ideas to be going on with - hope this helps!

Happiness6500

Hello Nargleblast

Ta for the overview. Groceries etc was suggested per person values on the National Debthelpline for one adult , one child and as my uni daughter comes and goes some extra added in but is more for housekeeping than just groceries , but i will use boards and have a look see at cutting costs ta

Your right about my amounts on road tax and car maintenance , i will update SOA and resubmit here below.

Your right on the clothes one i will lose that for a month or two.

Im stuck in a contract at the moment that was the cost of my last bill its for 2 phones , i wanted my daughter to be able to get in touch anytime at uni as she lives away. its mostly line rental as we get free most everything else.

Im looking at the satellite tv thing. as in my last email with maybe cutting cost options by using bt vision as part of a package with them.

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................ 1554
Partners monthly income after tax....... 0
Benefits................................ 177
Other income............................ 0
Total monthly income.................... 1731
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 250
Rent.................................... 267.6
Management charge (leasehold property).. 0
Council tax............................. 79
Electricity............................. 24
Gas..................................... 70
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11.25
Mobile phone............................ 83
TV Licence.............................. 12
Satellite/Cable TV...................... 16.5
Internet Services....................... 22.5
Groceries etc. ......................... 356
Clothing................................ 0
Petrol/diesel........................... 187
Road tax................................ 12
Car Insurance........................... 28
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 5
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 23
Presents (birthday, christmas etc)...... 40
Haircuts................................ 25
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 60
Total monthly expenses.................. 1661.85

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 480
Car(s).................................. 5500
Other assets............................ 0
Total Assets............................ 5980

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1970.....(250)......0
Total secured & HP debts...... 1970......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds loan....................7431......99........6.5
black horse loan...............10242.....262.......0
capital one c/c................1108......35........0
money shop cheques.............450.......450.......0
paydaybank payday loa..........650.......650.......0
quickquid payday loan..........250.......250.......0
shop direct a/c................2433......100.......0
next account...................712.9.....72........0
Total unsecured debts..........23276.9...1918......-

Monthly Budget Summary
Total monthly income.................... 1,731
Expenses (including HP & secured debts). 1,661.85
Available for debt repayments........... 69.15
Monthly UNsecured debt repayments....... 1,918
Amount short for making debt repayments. -1,848.85
Personal Balance Sheet Summary
Total assets (things you own)........... 5,980
Total HP & Secured debt................. -1,970
Total Unsecured debt.................... -23,276.9
Net Assets.............................. -19,266.9

Justicenpeace

Happiness6500 wrote: »

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................ 1554
Partners monthly income after tax....... 0
Benefits................................ 177
Other income............................ 0
Total monthly income.................... 1731
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 250
Rent.................................... 267.6
Management charge (leasehold property).. 0
Council tax............................. 79
Electricity............................. 24
Gas..................................... 70
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11.25 see below.
Mobile phone............................ 83 This seems very high. Are you in a contract? PAYG is likely to be much cheaper.
TV Licence.............................. 12
Satellite/Cable TV...................... 16.5 See if you can get a package which includes TV, landline and internet. Go through quidco if you can to get cashback.
Internet Services....................... 22.5 see above.
Groceries etc. ......................... 356 This seems very high for 2 adults and one child.Drop a brand/use value ranges/ check out Old Style Board.
Clothing................................ 26 Try going a couple of months without buying any new clothes.
Petrol/diesel........................... 187 This is a lot! £2244 a year on petrol! Can you economise here? Use the car less, only for essentials?
Road tax................................ 125 £1500 a year on car tax - is this right?
Car Insurance........................... 28
Car maintenance (including MOT)......... 300 £3600 on car maintenance each year! :eek: Is this right? That's much more than half the cost of the car itself. Check this.
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 5
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 23 what's this?
Presents (birthday, christmas etc)......40
Haircuts................................ 25
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 60
Total monthly expenses.................. 2075.85

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 480
Car(s).................................. 5500
Other assets............................ 0
Total Assets............................ 5980

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1970.....(250)......0
Total secured & HP debts...... 1970......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds loan....................7431......99........6.5
black horse loan...............10242.....262.......0
capital one c/c................1108......35........0
money shop cheques.............450.......450.......0
paydaybank payday loa..........650.......650.......0
quickquid payday loan..........250.......250.......0
shop direct a/c................2433......100.......0
next account...................712.9.....72........0
Total unsecured debts..........23276.9...1918......-

Monthly Budget Summary
Total monthly income.................... 1,731
Expenses (including HP & secured debts). 2,075.85
Available for debt repayments........... -344.85
Monthly UNsecured debt repayments....... 1,918
Amount short for making debt repayments. -2,262.85
Personal Balance Sheet Summary
Total assets (things you own)........... 5,980
Total HP & Secured debt................. -1,970
Total Unsecured debt.................... -23,276.9
Net Assets.............................. -19,266.9
.


Regards


Happiness6500

Hiya! You have made real progress so quickly! Well done! And welcome! :T

I've made a few coments, I'm sure others will be along shortly to offer (better) advice. I hope the comments are helpful.

One thing that really jumps out is the amount you spend on car related expenses. Are you sure these are correct?

Please keep posting. Everyone is lovely around here and really help to keep the motivation going. You are in the right place.

All best wishes for your debt-free journey!

mark55man

mobiles & grocery look a bit high

if you look at this thread (October's Grocery Challenge) http://forums.moneysavingexpert.com/showthread.html?t=1975685
(maybe lurk for a bit) you will see lots of people making do, + the first page of the thread has links to lots of recipe's that can be done on a budget. its like this for me - 6 people 3 meals a day 30 days a month = 540 meals a month - even if I save 10p a meal that's £50 a month.

or

you may doubtthe extent of savings, but money can go very far if you have a bit of time you can put into living cheaply on the food front

http://forums.moneysavingexpert.com/...html?t=1129333 - broadly feeding a family of 4 for £20 a month

Your rent looks very good

Happiness6500

JustinpeaceThanks , as intimated i redid the SOA with the car expenses . had put yearly figure in instead of monthly.

Cant do much about the Petrol i have a round trip of 63 miles to work everyday and that figure is based on 42 litres of fuel per week. I have been actively looking for a carsharer but havent had luck yet .

The other insurances are for cover for a couple of laptops and £8.98 for sky protect. I had a break down with my box month or two back and they replaced it but i have to pay this for like another 10 months.

Mark thanks for the grocery tip will indeed lurk and if you pardon the pun Food for thought on the meals saving ! Thank you

Happiness6500

macgirl

Hi there Happiness
Firstly, sorry to hear about your Dad.

Sounds like you've already made lots of progress with your debt in a short space of time, so well done for that.

As you mentioned, there are many inspiring people on the Diaries thread, you should check out the Payment A Day thread. It's very friendly, helps you stay focused and quickly becomes addictive.

Posting on here every day will be the best thing you'll do to become debt free.
Good Luck

QueenBeruthiel

Those payday type loans usually have astronomical APRs, OP. I should make them an absolute priority to pay off pdq.

Any public transport to your place of work?

Glad you are making forward progress.

Happiness6500

lLadies thanks both for the post

QueenBeruthiel...Yes the payday loans are bad idea i havent even peeked at that apr yet. i have emailed them and got a response back , wanting contact from CCCs soon as . But need to pay everything pro rata just hope i get there good grace on freezing interest !


Macgirl

Thanks for the comment about Dad , very kind of you and i will check out the payment a day thread thanks xx

LeeSouthEast

I'm sure others will pick your SOA to death so I'll leave that to them.

What I did want to say is WELL DONE for heeding your LBM You've made so much progress and it's only been a few days! Keep it up, we'll help you get there!