Debtor in training :-(

ch8797

Hi everyone

I was naughty in my 20's with the usual £5000 unsecured loans and overdrafts. Then I got myself sorted and was debt free :-) though never saved alot :-(

However, over the last 8 months my overdraft has crept up to £1300. It started off with a laser mole removal on my face which was possibly cancerous (The NHS could only offer a scalpel job) which was £600. Then my laptop broke and I needed one for my Open University course so that was £400. Things like the cat being ill and car maintenance also haven't helped though I am sure that after the initial -£600 I put my 20's head back on and started to just ignore the problem. Every month there just seems to be something that eats away at the £120 ish quid that I have left over.

How can I get myself back on track? I transfer £70 a week to a solo account which covers food, petrol and entertainment but then I dip into my main account on a regular basis - Will someone talk some sense into me!
Paid £1200 every month after tax and pension etc
Mortgage £445
Power £65
Water £28
C tax (SPO) £89
TV £11
Mobile £25 (til Aug this year)
Internet £25 (til Aug this year)
Pet ins £6
Income protection £37
Home insurance £13
Car tax/ins £50
£280 all other expenses
£126 left over

Many Thanks in advance
C

WASHER

http://www.makesenseofcards.com/soacalc.html

Welcome to MSE and the DFW board.

Above is a link so you can post your incomings and outgoings in a format we will be able to comment on - make sure you press MSE format button at the bottom.

Can you list your debts too and APR's if you know them.

Your home insurance is really cheap, is that buildings and contents?

ch8797

Hello Washer

Thanks for the link - worked out below....
I have a shared ownership flat so only pay contents :-)
In the current job market I dont know whether to protect my income (I am employed by a housing association so I am in one of the only sectors that is benefitting from the credit crunch) I clean for my parents twice a week and they pay my MOT/TAX and major repairs.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1223
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1223
Monthly Expense Details
Mortgage................................ 311
Secured/HP loan repayments.............. 0
Rent.................................... 145
Management charge (leasehold property).. 0
Council tax............................. 89
Electricity............................. 35
Gas..................................... 32
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 60
Clothing................................ 0
Petrol/diesel........................... 34
Road tax................................ 0
Car Insurance........................... 50
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 6
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 37
Presents (birthday, christmas etc)...... 8
Haircuts................................ 10
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 984

Assets
Cash.................................... 0
House value (Gross)..................... 2000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 3000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 56250....(311)......5.65
Total secured & HP debts...... 56250.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................1320......0.........16.4
Total unsecured debts..........1320......0.........-

Monthly Budget Summary
Total monthly income.................... 1,223
Expenses (including HP & secured debts). 984
Available for debt repayments........... 239
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 239
Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -56,250
Total Unsecured debt.................... -1,320
Net Assets.............................. -54,570
Created using the SOA calculator

WASHER

ch8797 wrote: »

Hello Washer

Thanks for the link - worked out below....
I have a shared ownership flat so only pay contents :-)
In the current job market I dont know whether to protect my income (I am employed by a housing association so I am in one of the only sectors that is benefitting from the credit crunch) I clean for my parents twice a week and they pay my MOT/TAX and major repairs.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1223
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1223
Monthly Expense Details
Mortgage................................ 311
Secured/HP loan repayments.............. 0
Rent.................................... 145
Management charge (leasehold property).. 0
Council tax............................. 89 - I assume this includes the single person discount
Electricity............................. 35
Gas..................................... 32
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 0
Mobile phone............................ 25 - a little high
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 25 - again, a little high
Groceries etc. ......................... 60 - Excellent, is this an acutal figure or what you think you are spending, if actual, well done
Clothing................................ 0 - you need clothing
Petrol/diesel........................... 34
Road tax................................ 0
Car Insurance........................... 50 - high, you must be young? have a look at comparison websites
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 6
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 37
Presents (birthday, christmas etc)...... 8
Haircuts................................ 10
Entertainment........................... 60 - you need to get out, but reduce by £10 per month in order to repay overdraft
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 984

Assets
Cash.................................... 0
House value (Gross)..................... 2000 - surely this is incorrect?
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 3000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 56250....(311)......5.65
Total secured & HP debts...... 56250.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................1320......0.........16.4
Total unsecured debts..........1320......0.........-

Monthly Budget Summary
Total monthly income.................... 1,223
Expenses (including HP & secured debts). 984
Available for debt repayments........... 239
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 239
Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -56,250
Total Unsecured debt.................... -1,320
Net Assets.............................. -54,570
Created using the SOA calculator

I have added comments in above, a spending diary would help you see where the £239 is being spent.

I would say (in my personal opinion) keep the income protection insurance, peace of mind and as you have a surplus each month, £37 is a huge amount.

ch8797

Thankyou!
I am an idiot. My flat was worth 62500 two years ago (6250 deposit) but I think it has probably been swallowed up by the lower house prices so I figured I only actually own about £2000 of it

C/tax single occupancy

Mobile phone and broadband contracts til August this year, then I am going on a sim only £10 contract and a £10 broadband as I need this for my study and dont have a BT line

Car tax - I hit things and have only been driving 5 years even though Im 30 -due in July this year

Groceries - Im vegetarian and buy the same things each week and make alot of stuff to freeze, eat 2 nights at Parents and one at sisters :-)

Clothes - probably £20 a month. I try and stick to a £70 a week budget for petrol, food and all other expenses apart from bills though am wondering if I ought to raise this as I think the 'getting in debt' is psychological as I managed to stay out of my overdraft for 5 years prior to this

I really appreciate your help, thank you very much

InDeepDebt

I can probably see a tiny saving in your budget. See what others on here think though first.

There's four of us live in our house - two adults and two kids. We pay £38 for water - on a meter. I am assuming that you pay for your water based on the old rateable value of the house - have you considered a meter?

Jim

beanielou

Good suggestions for you.
Well done on realising that you have a problem & trying to sort it out.

theoretica

As you say, your budget is not the problem- the question is where the money you should have left to pay the overdraft has gone. Do you know where the extra £300 which wasn't computer or operation went? If you had no emergency savings 8 months ago you were clearly spending up to your salary- are you making cuts on your spending of a year ago to let you pay this off?

If you want imposed discipline you could ask your bank to reduce your overdraft by £50 (or more) each month so the money is not there to spend.