It's worse than I thought!

velrist

I know normally I would suggest paying off the highest APR cards first but you have quite a few accounts with balances of £200 or less on them. I'd clear those off first (lowest balance first) which will simplify your finances a fair amount and let you concentrate on the two larger debts after that. The store cards are likely to be anything up to 29% APR anyway.

Keep a spending diary and as you've already mentioned try out the ideas on the old style board. Six months of working really hard at this should see you in a much better position by the time the new baby arrives.

Good luck!

QueenBeruthiel

"£15 for landline is for line rental to BT which still has to be paid even though calls etc are through Sky."

I don't understand this. I pay £19.99 pm for broadband and calls through what was Tiscali (now TalkTalk). No payment to BT at all.

Check out broadband/phone deals on a comparison site.

beccam

Have made some changes today shown in red.

beccam wrote: »

So I've done a rough SOA following on from my first thread as a DFW. Taking a deep breath and here goes.....


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................ 1560
Partners monthly income after tax....... 700
Benefits................................ 120
Other income............................ 0

Total monthly income.................... 2380

Monthly Expense Details
Mortgage................................ 680
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 51 (rates)
Electricity............................. 40
Gas..................................... 0
Oil..................................... 40
Water rates............................. 0
Telephone (land line)................... 15 = 0 (now included in Sky)
Mobile phone............................ 50
TV Licence.............................. 10
Satellite/Cable TV...................... 57 = 44 (sky including broadband and phone + line rental)
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 10
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 25
Car maintenance (including MOT)......... 10
Car parking............................. 6.5
Other travel............................ 0
Childcare/nursery....................... 150
Other child related expenses............ 24 (ballet class £6/week)
Medical (prescriptions, dentist etc).... 10 (glasses for me)
Pet insurance/vet bills................. 0
Buildings insurance..................... 40 (includes contents)
Contents insurance...................... 0
Life assurance ......................... 58
Other insurance......................... 13 (Unison membership)
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 130 (:eek: husbands fags and booze!)
Holiday................................. 0
Emergency fund.......................... 100 (paid into IF savings)

Total monthly expenses.................. 1824.5 = 1801.5

Assets
Cash.................................... 350 (IF savings)
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 900
Other assets............................ 0
Total Assets............................ 131250

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97500....(680)......6.58
Total secured & HP debts...... 97500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................9350......296.......NaN see below re interest?
Halifax........................4350......103.......27.95
Debenhams......................200.......8.........22.4
Argos..........................180.......5.5.......18.9
Fashionworld.....................0........0.....NaN paid it off today and hope I haven't left us too short on cash!
Littlewoods....................139.......35........NaN
Next...........................112.......12........NaN
Etam...........................157.......6.5.......24.96
Total unsecured debts.........14488......466......-

Monthly Budget Summary
Total monthly income.................... 2,380
Expenses (including HP & secured debts). 1,824.5
Available for debt repayments........... 555.5
Monthly UNsecured debt repayments....... 476
Amount left after debt repayments....... 79.5 = 112.5

Personal Balance Sheet Summary
Total assets (things you own)........... 131,250
Total HP & Secured debt................. -97,500
Total Unsecured debt.................... -14,540
Net Assets.............................. 19,210



This is a rough guide and I am still in shock, feel very sick and close to tears reading it, I really thought we had more spare cash each month than we do, it's worse than I thought.:(

edited to query re MBNA interest rates, cannot find what annual APR is only monthly rates which are as follows.....

card purchases 1.4566%
Cheques/Money transfers 1.7366%
Balance Transfers 1.5976%
Cash 2.5292%

Sky have given us a reduced rate for 6mths so hubs can keep his sports for now (may go when maternity kicks in but will give him adjusting time!) plus changed line rental from BT so slightly cheaper, total saving approx £23/mth.

RAS

Do you have the split on how much of the MBNA is purchases, how much cash etc?

RobertoMoir

beccam wrote: »

Savingmummy......think I've answered some of the more obvious ones, the left over £79 at the moment isn't left over at all as it is just being spent on rubbish! I've done the SOA with amounts as what I think should be spent on groceries/haircuts etc where in reality up to now we have been vastly overspending in all areas and increasing the debt.

I'd take a good look at groceries - as has been mentioned this seems like a lot for 3 people on a budget. With proper meal planning it could certainly be cut - I'm not one of the old style MSE people who can make a 3 course cordon bleu meal out of two old teabags and a pack of meringue nests that they got on special offer so I'd hate to say how much you could cut it by, but every little helps.

You should check out the old school MSE board's meal ideas by the way, there is some great stuff on there for making awesome food plans on a tight budget. God knows I've become a better cook between stealing ideas off there and trying stuff out of the Jamie Oliver books, and saved a lot of money into the bargain!

beccam wrote: »

Re the Sky....we could get rid or at least downgrade in order to keep good broadband/phone package but husband is VERY attached to Sky Sports, I think this money situation could hit him harder than he thinks!

I think your hubby needs to make a few hard choices. Perhaps he should set / be set an "entertainment" budget. If he's allowed to spend, for example, £80 a month (and God knows that's more than enough when you're in financial straits, I'm sure someone will be along soon to tell you that I'm being far too generous, and they'll have a point too) on his luxuries then its up to him if he spends it on TV, cigs or drinks but when its gone its gone. Now as a guy who likes to talk nonsense about the football with his friends and who enjoys a cold beer on a hot day myself I appreciate he may find that difficult, but the choices are quite clear really from your SOA.

Have you read up on the "snowball" tactic of paying debts off? It strikes me that a few of the debts you have could be cleared reasonably quickly with the extra money that tidying up things from you SOA should release.

Fashionworld...................52........10....... .NaN
Littlewoods....................139.......35....... .NaN
Next...........................112.......12....... .NaN

Clearing these off by overpaying using the money you generate by cuts from your SOA; fashionworld first, then next and finally littlewoods would leave you £57 a month better off (plus whatever you save from your current SOA) to manage the other debts better with.

Not only will this give you a feeling of achieving something to keep you both going, it will also free up some more money you can then use to pay off the other debts quicker.

beccam

RAS wrote: »

Do you have the split on how much of the MBNA is purchases, how much cash etc?

I don't think so.....I have searched statements and online but can't get a proper breakdown of what interest we're actually paying....could I get this over phone or in writing do you think?

RAS

beccam wrote: »

card purchases 1.4566% = 18.95%
Cheques/Money transfers 1.7366%
Balance Transfers 1.5976%
Cash 2.5292%= 34.95%

Done a couple of these to help out.

The link is here http://www.moneysavingexpert.com/banking/interest-rates#calc

beccam

RobertoMoir wrote: »

I'd take a good look at groceries - as has been mentioned this seems like a lot for 3 people on a budget. With proper meal planning it could certainly be cut - I'm not one of the old style MSE people who can make a 3 course cordon bleu meal out of two old teabags and a pack of meringue nests that they got on special offer so I'd hate to say how much you could cut it by, but every little helps.

You should check out the old school MSE board's meal ideas by the way, there is some great stuff on there for making awesome food plans on a tight budget. God knows I've become a better cook between stealing ideas off there and trying stuff out of the Jamie Oliver books, and saved a lot of money into the bargain!

I had a bit of a peek over there last night (early hours when I couldn't sleep!) and some amazing recipes. Hubby is getting more blame here as I would be quite happy living on pasta, rice and a few veg but he is a VERY fussy eater (no fruit or veg basically lives on processed rubbish)
I make him sound awful and like he is all to blame which is wrong, we are both responsible.



I think your hubby needs to make a few hard choices. Perhaps he should set / be set an "entertainment" budget. If he's allowed to spend, for example, £80 a month (and God knows that's more than enough when you're in financial straits, I'm sure someone will be along soon to tell you that I'm being far too generous, and they'll have a point too) on his luxuries then its up to him if he spends it on TV, cigs or drinks but when its gone its gone. Now as a guy who likes to talk nonsense about the football with his friends and who enjoys a cold beer on a hot day myself I appreciate he may find that difficult, but the choices are quite clear really from your SOA.

Thanks, would you like to talk to him for me?? I'm going to keep working on him giving up the smokes though he has never shown an interest before......we'll see how the choice between fags or football goes.

Have you read up on the "snowball" tactic of paying debts off? It strikes me that a few of the debts you have could be cleared reasonably quickly with the extra money that tidying up things from you SOA should release.



Clearing these off by overpaying using the money you generate by cuts from your SOA; fashionworld first, then next and finally littlewoods would leave you £57 a month better off (plus whatever you save from your current SOA) to manage the other debts better with.

Not only will this give you a feeling of achieving something to keep you both going, it will also free up some more money you can then use to pay off the other debts quicker.

Totally agree with you about paying off the smaller amounts to 'tidy' things up....I was hoping to pay fashionworld once I see what my pay is this month (pay varies depending on shifts worked) but I think I might just bite the bullet and pay it now, can always transfer £50 from savings to cover it if I need.

beccam

Just did it......fashionworld is now paid off!!!

Confusing myself now making adjustments to SOA so hope I've done it right.
Also checked on line and through paperwork about home and contents so can get same cover including accidental damage cover for approx £23 instead of the £40.10 we currently pay, just need to check if we can cancel old policy now or have to wait until March when the 12mths is up??

RobertoMoir

beccam wrote: »

Totally agree with you about paying off the smaller amounts to 'tidy' things up....I was hoping to pay fashionworld once I see what my pay is this month (pay varies depending on shifts worked) but I think I might just bite the bullet and pay it now, can always transfer £50 from savings to cover it if I need.

If that's what works out for you, just don't forget to put it back one day!

I had a bit of a peek over there last night (early hours when I couldn't sleep!) and some amazing recipes. Hubby is getting more blame here as I would be quite happy living on pasta, rice and a few veg but he is a VERY fussy eater (no fruit or veg basically lives on processed rubbish)
I make him sound awful and like he is all to blame which is wrong, we are both responsible.

Yes I think you have to work on this as a problem you both have and both have to solve.

What does he like to eat? There are some great threads there on re-creating the sort of curries and Chinese dishes that takeaways and shops do. Goodness knows I'm not what most people would call a healthy eater but I can't imagine dinner without a nice bit of veg in it to compliment the main part of the meal!

Thanks, would you like to talk to him for me?? I'm going to keep working on him giving up the smokes though he has never shown an interest before......we'll see how the choice between fags or football goes.

In all seriousness, does he know you're posting here? Has he seen the figures you're working with here? Could you tell him about this forum and let him see for himself how the figures from your SOA and others are picked apart. Does he realise how much he spends per month on entertainment. Not suggesting you badger him or anything but if one of you is trying to save money and the other one isn't then you're going to find it hard to succeed and you'll only end up generating a lot of stress and resentment in your relationship.