Here Goes: my SOA

domestic_goddess

Found it

http://www.whatsthecost.co.uk/default.aspx

this will help with your debt free date


edit :sorry this has already been posted - am not sure how to delete

CLAPTON

summarising your SoA

income £1,821
spend £1,412 (excluding debt repayments)
difference /surplus £ 409
debt payments £ 312 with total debt of £20,674
leaving £ 97 left over

with an income of 1,821 and no mortgage to pay from your income, you are potentially in a very good position.

but firstly you need to discuss the situation with OH as some of the things you need to do will affect him.

as already mentioned by others, i would suggest you keep a spending diary to accurately record where all you money goes..i'ld be surprise if you really only spend 150 on food, do you buy lunches/coffees at work, do you spend money going out, buying presents, xmas related things, take aways, do you pay car tax , servicing or MOT costs, do you contribute to family holidays.... a spending diary plus thinking about all the one-off/annual spends will help identify all the spending.

appliance and boiler insurance can be cancelled saving 420 per year (even the odd call out is unlikely to be anywhere near that.

i'm not sure what your telecomms arrangement are ...is it cable based or BT landline based but in any event can be cut back massively.

sky isnt really affordable with debts of 20,000

you travel to work by tube....do you actually need a car?

hair and nails...you have said it all yourself

kids trust funds .... you are effectively merely borrowing money to put into the kids savings...makes no sense. I'm sure the kids would prefer a happy debt free mummy that have a few bob in their savings account when they are 18...in any event if you pay back the loans quicker you will be better placed to save for them


there is really about 250 to 300 per month of saving possible here which would be a major contribution to reducing your debts

once you're done spending diary etc. and redo your SoA is should be possible to look at how quickly you could clear your debts.

what is your OH financail position...once you've discussed this with him is he in a position to help you clear your debts?

EssexGirl2002

Thanks Clapton

[as already mentioned by others, i would suggest you keep a spending diary to accurately record where all you money goes..i'ld be surprise if you really only spend 150 on food, do you buy lunches/coffees at work, do you spend money going out, buying presents, xmas related things, take aways, do you pay car tax , servicing or MOT costs, do you contribute to family holidays.... a spending diary plus thinking about all the one-off/annual spends will help identify all the spending.]

I work short days and so don't buylunch at work.
And to be honest in the past i have put MOT, car tax etc on cc.wehaven't had a family hol in 3years!


[you travel to work by tube....do you actually need a car?]

My husband needs a car for work and I need 1 for the after school pickups etc. Although I would love to change my car (fuel guzzling 2ltr passat!) but can't really afford to do so without incuring further debt.


[kids trust funds .... you are effectively merely borrowing money to put into the kids savings...makes no sense. I'm sure the kids would prefer a happy debt free mummy that have a few bob in their savings account when they are 18...in any event if you pay back the loans quicker you will be better placed to save for them]

I hear whatyou are saying but somehow i just do not feel comfortable (anymore) spending money which should be put aside for them. my son is 11 and i haven't saved for him for 10years!

[what is your OH financail position...once you've discussed this with him is he in a position to help you clear your debts]

He has a few debts but nowhere near what i have.Its a bit complicated at the mo hence me not filling him in totally yet. but once i have some sort of plan sorted, i will give him the full picture. I knowhe will help where he can. we have been in a similar (albeit a lot smaller) situation before. That occasion wasn't totally my fault but this time I want to alleast start putting things right before I involve him.

Any ideas about ways in which I can generate incomein addition to saving I will be making with my bills?

lynzpower

just out of interest how much is in the trust fund. At the end of the day you owe 20, 000. Im not suggesting cash in whats there, but simply suspend the payments until you can afford to pay it, which you cant at the moment. To be borrowing to save is crazy IMHO

Katharine

Congrats on starting the thread essexgirl, glad you took my advice. Don't really have much to add to the good advice maybe apart from trust fund thing, personally I would leave of making anymore payments while you concentrate on paying your debt. Then you could make double payments for the same period of time as you stopped when you have a lighter financial burden when you a debt free. I was given £1000 in an isa by a relative who would kill me if they knew I had used it, but I am going to put it all towards my debt and start up an isa when im debt free, hopefully then I will get really into saving money with all the 'spare cash' that I wont be throwing at debts, and not spending it! Your kids sound young so you have plenty of time before they will need it, and you need it now.

To see the huge difference in figures that £130 extra repayment a month will save you in interest and difference of DFD use the snowball calculator linked to above if that still doesn't sway you then nothing will, it's your decision in the end.

Also try this http://www.whatsthecost.co.uk/treats.aspx the trust fund is a 'treat' really and see what your really paying to give your kids £130 a month. For me it says this "The bottom line, is this treat, costing you £130.00 now, will really cost you £183.36 including interest while you're dealing with your debt over the next 62 months."

EssexGirl2002

Thanks Katharine and Lynzpower

I def will talk to hubby about the kids savings but if I'm honest i still don't see the money as mine and so am not comfortable using it to pay off my debts. But i hear what you are all saying and so will seriously consider it.

Katharine

It's upto you, I totally understand and it's a horrid situation, but I do believe it is in your (and therefore your familys) best interests. Either way you are on the path of your DFD and thats the most important thing, hopefully you will choose the shorter one.

EssexGirl2002

Have done my 'snowballing' and am feeling quite positive.Based on the figures i put in I shouldbe debt free in about 4.5 years. i was quite generous with the figures and therefore that I can do it in less time if I get my budget right and stick to it religiously!

Will keep you all posted cos i think that will also keep me on the straight and narrow!

clarew

just to add with regards to the ctf, i think too, that you could cut that back until free of debt, and then you can always top it up as much as possible.

personally i have to use my child benefit to pay for their clothes,shoes etc and the other bills, (if you are in a fortunate position not to need it, and can save it (ie:like the beckhams/cherie blair etc!!) then fine, but its a benefit-money to be spent on the kids, not necessarily saved for them-so don't feel guilty.)

-i manage to put £20 each away for my 2, with plans to increase it when financially better off. But remember as martin says, with the ctf when they hit 18yrs old, you have no control over the money-so have to trust them not to blow your hard earned money!!

Katharine

I had a trust fund and I blew it on god knows what. :rolleyes: