Need to take control - Im a muddler and need help!

daisyloo

Hi everyone,

I have been reading this board for a couple of weeks as I am now determined to get our finances under control. I am not sure if I have filled in this form right as I have put the amounts I think we SHOULD spend not the amounts we have spent up to now. I have also assumed that the debt amount is how much is left to pay off the loan. I moved the credit card debt to a 0% one. If I have missed anything really obvious please tell me....

I want to be in control of the finances not the other way around. I know we need to stop spending on stuff we don't need.

I did put a post on the other board asking for advice on recording spending - but then I went back and had another look at our budget and I don't feel as confident as I thought. I decided to come and ask for advice. How long do you think it will take me to pay off my debts? Also how do you keep track of it all as you go along? The whole thing scares me silly...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 850
Partners monthly income after tax....... 2095.07
Benefits................................ 244.65
Other income............................ 0
Total monthly income.................... 3189.72

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 337
Rent.................................... 290
Management charge (leasehold property).. 0
Council tax............................. 119
Electricity............................. 107
Gas..................................... 0 joint with electric
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 0
Mobile phone............................ 25 tied in
TV Licence.............................. 12
Satellite/Cable TV...................... 85 includes house phone and broadband - will downgrade in march when tie in ends
Internet Services....................... 0
Groceries etc. ......................... 520
Clothing................................ 80
Petrol/diesel........................... 140
Road tax................................ 18
Car Insurance........................... 47
Car maintenance (including MOT)......... 50
Car parking............................. 10
Other travel............................ 80
Childcare/nursery....................... 100
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 17
Buildings insurance..................... 32
Contents insurance...................... 0 joint with buildings
Life assurance ......................... 0
Other insurance......................... 3
Presents (birthday, christmas etc)...... 25
Haircuts................................ 50
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
school lunches.......................... 100
pocket money............................ 18
school trips............................ 5
professional organisation............... 7
antivirus............................... 6
cat food................................ 10
Total monthly expenses.................. 2391


Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 258000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 29000....(337)......16
Total secured & HP debts...... 29000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
car loan ............1500......94........7
loan house old................1616......101.......7
loan house new .............8000......250.......0
credit card....................470.......17........15.9
credit card ...................4100......50........0
Total unsecured debts..........15686.....512.......-


Monthly Budget Summary
Total monthly income.................... 3,189.72
Expenses (including HP & secured debts). 2,391
Available for debt repayments........... 798.72
Monthly UNsecured debt repayments....... 512
Amount left after debt repayments....... 286.72

Personal Balance Sheet Summary
Total assets (things you own)........... 258,000
Total HP & Secured debt................. -29,000
Total Unsecured debt.................... -15,686
Net Assets.............................. 213,314

Created using the SOA calculator at ....
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Tixy

Hi and welcome

Well done on posting it up - if you want to know how long it will take you to pay off your debts look at the snowball calculator on the same website as the SOA - it will assume you put all your surplus £286 against the debts and quote a debt free date - then we'll see if you can't find savings on your expenses to bring that nearer.

Your groceries look high - you could easily reduce that spend of £520 for a family of 5, especially as you are then spending an extra £100 on school lunches. Some on here manage on £250 for that size family but maybe aim to reduce by £100 to start. Try the drop a brand challenge, meal planning before you shop and shopping around for the best prices. Also consider doing your main shop online to save being tempted in the shop.

I am right in thinking your daughter has a car loan? Is she paying you for this or are you paying on her behalf? who is paying for the running costs of this car?
Check out the oldstyle board for loads of tips on cooking from scratch to make healthy filling meals for your family very cheaply.

Have you cut up your new credit card and the old one with a small debt. This card with 15.9% APR is the first thing to tackle with your debt overpayments.

Good luck

daisyloo

Hi Tixy,

Yes the loan was for a car - we sold it after being left with the debt and paid off most of it but this amount is still outstanding. We have to pay it as it is in our name.

The thought of £250 a month on shopping is mind boggling. Even to get it down to £120 a week is challenging me. It was far higher! It does include all cleaning and toiletries etc. I have been making menu plans - I will have another look to see what can cut down. (I have a very fussy partner so not easy!) Old style boards here I come. Online shopping will be my next challenge!

Yes the credit cards are cut. I don't want to live on debt.

Still appreciate ideas on how to keep spending diary. Main muddle is things like house maintenance which are irregular - some months nothing and some months lots. Almost feel I need a seperate notebook for each category but then it would be a full time job!

Tixy

Have you considered www.spendingdiary.com ? Some people use that, others like spreadsheets and others have little books and bits of paper!

Maybe consider opening a new bank account and then each month transferring across 1/12 of your budget for items such as car maintenance, road tax, clothing, presents (all the irregular stuff), then when you come to buy any of these pay it out this account.

If you haven't already then arrange to have internet banking on your bank accounts as this helps you stay in control and means you can move money between accounts easier.

Have you tried brand dropping to basics on cleaning products etc - after all a bottle of bleach is the same if its smartprice or branded. Standard supermarket toilet roll is pretty much the same as that with the puppy dogs (all though basics brand is a bit low for me!).

For toiletries try shopping in wilkos, homebargains, pound shops etc (whatever is near to you) as these are often cheaper than the supermarket. Also meat is usually cheaper and better quality from a local butcher and fruit & veg are cheaper at a market or greengrocers.

If you buy anything else with your main supermarket shop (such as wine, cigs, magazines etc) it may help to seperate this out so you know how much is going where.

daisyloo

Intend to try spending diary from now

Maybe consider opening a new bank account and then each month transferring across 1/12 of your budget for items such as car maintenance, road tax, clothing, presents (all the irregular stuff), then when you come to buy any of these pay it out this account.

Great idea

If you haven't already then arrange to have internet banking on your bank accounts as this helps you stay in control and means you can move money between accounts easier.

Will do this week

Have you tried brand dropping to basics on cleaning products etc - after all a bottle of bleach is the same if its smartprice or branded. Standard supermarket toilet roll is pretty much the same as that with the puppy dogs (all though basics brand is a bit low for me!).

Ok, Starting from now

For toiletries try shopping in wilkos, homebargains, pound shops etc (whatever is near to you) as these are often cheaper than the supermarket. Also meat is usually cheaper and better quality from a local butcher and fruit & veg are cheaper at a market or greengrocers.

time is a difficulty but will have a go - certainly can do for toiletries as they don't go off...

If you buy anything else with your main supermarket shop (such as wine, cigs, magazines etc) it may help to seperate this out so you know how much is going where.[/QUOTE]

I buy a bottle of wine now and again - with that budget I was going to buy one a month for about £5 no cigs no mags.

I really appreciate your help - I guess I need to rethink my spending habits completely. I am digging out my shopping lists for the last 3 weeks (since I started that budget - to see where the 'black holes' are.

The snowball thingy is brilliant. Apart from some money I owe my uncle which is completely interest free, I will have paid the rest of the unsecured debt off in 13 months! I am very surprised that it doesn't recommend me to snowball the HP though - I may be back on to ask about this once the rest is paid.

New life , new spending pattenrs here I come!