SOA (lightbulb moment!!)

WASHER

fatlad9 wrote: »

ok this time ive put more accurate income... and left the minimum payments largely blank.. as im going to obviously cut down on my outgoings, and then tackle the debts. my credit rating is poo poo anyway so im open to suggestions!
just a bit of background info - im 25 and wife is 22. loan was for wedding in vegas and honeymoon in cancun. at least i dont need to worry about paying for a wedding etc in future.
if i can get mobiles down to even 80 a month it'll be a big help.
once last loan payment goes in april it'll mean i'll be able to bang that off debt.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1480
Partners monthly income after tax....... 950
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2430
Monthly Expense Details
Mortgage................................ 546
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 8
Council tax............................. 98
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 15
Mobile phone............................ 140:eek: iF YOU ARE 9 MONTHS INTO YOUR CONTRACTS O2 WILL LET YOU DOWNGRADE TO THE NEXT PACKAGE, IF YOU ARE NOT 9 MONTHS, NO AMOUNT OF HAGGLING, CRYING ETC WILL MAKE O2 TO DO ANYTHING FOR YOU. I HAVE BEEN A CUSTOMER WITH O2 FOR 6 YEARS, AND HAVE TRIED IN THE PAST TO DOWNGRADE EARLY. NO CHANCE.
TV Licence.............................. 12
Satellite/Cable TV...................... 35:eek:HAS TO GO TODAY
Internet Services....................... 11
Groceries etc. ......................... 300 TOO MUCH FOR TWO
Clothing................................ 50 TOO MUCH
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 116
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0 IF YOU HAVE A MORTGAGE, THEN YOU NEED THIS - FAR MORE IMPORTANT THAN A MOBILE PHONE IMO
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 TOO MUCH EACH MONTH
Haircuts................................ 0
Entertainment........................... 150:eek:CUT BY £100, YOU HAVE DEBT TO REPAY,
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1636

Assets
Cash.................................... 0.47:j
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 125000.47

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 119000...(546)......4
Total secured & HP debts...... 119000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
hsbc loan......................418.......209.......0
lloyds authorised OD...........650.......10........0
next 1.........................610.......0.........29
WESCOT.........................100.......0.........0
BPO COLLECTIONS................200.......0.........0
additions......................50........25........39
simplybe.......................450.......0.........29
very.co.uk.....................410.......0.........39
argos..........................480.......0.........29
next 2.........................490.......0.........29
Total unsecured debts..........3858......244.......-

Monthly Budget Summary
Total monthly income.................... 2,430
Expenses (including HP & secured debts). 1,636
Available for debt repayments........... 794
Monthly UNsecured debt repayments....... 244
Amount left after debt repayments....... 550
Personal Balance Sheet Summary
Total assets (things you own)........... 125,000.47
Total HP & Secured debt................. -119,000
Total Unsecured debt.................... -3,858
Net Assets.............................. 2,142.47

I can see saving of approx £245.00 per month without reducing your mobile phone package (see my explanation above). If you stick at this revised soa, you could be debt free within 12 month easily.

WASHER.x.

WASHER

As far the Mayfair, she needs to give up, not good for her health or her wealth....easier said than done, I smoked for 15 years, and I was hell to live with during my quit period, but it can be done. Make a GP appointment, they will help her to quit.

fatlad9

entertainment is nights out... which will be cut.
i for one wont miss them, as i hate hangovers!

food wise i know we waste too much money on this. generally use tesco branded products - we do one monthly shop of 100ish on tesco online (using discount codes from this website) which is tins / frozen stuff and 100 cigs.
the rest is spent on food / drinks / cigs, as and when we run out of certain things.

clothes wife is actually cutting down a lot, think this month (during feb) she only spent 20 - that was work trousers and a pair of shoes.
shes also given up having her nails done and hair etc... gets a hair dye every month rather than 80 quid at the hairdresser and 50 on nails.

so.......

phones try and get down to 80 all in (if not lower)
main groceries shop 100 (without the need to buy extras except bread milk etc)
cigs 80 - 100 (unless i can source them cheaper!)
entertainment 80?

that would free up 230 ish a month in theory before i start on broadband / sky etc.



anyone know what BT charge to break the minimum term on contract? line rental x months left or less?

fatlad9

she actually quit smoking for 3 months... then started up again. to be fair to her she did really well to stay off for that long (smoked 4 or 5 during that time).

shes smoked since 15, so for 7 years or so.

WASHER

If you have a freezer, freeze bread and milk, it will remove temptation to buy other stuff whilst you are in the shop buying those items.

NGlady

Well done to your wife for giving up her pampering I understand how looking good is important to her, but she really cant afford this at the moment, has she researched swishing sites, such as bigwardrobe.co.uk basically for the cost of her old items plus a couple of pounds in postage she can get a new item. Possibly worth looking into?

Sorry but she really has to cutt out the fags. They smell, make you need to spend more money on teeth whitening etc, kill her quick and COST A FORTUNE.

the £300 food is exessive. What do you guys eat to need £37.50 each allowance on food :S I think, if she gave up smoking you could cut that down to £20 each and still eat really good.

You both sound really young, and in a way its good you've had this lightbulb moment now rather than allowing your debts to continue for another 20 years and being in enourmous trouble. But really, you need to give up on things you love for a bit

Verbatim

NGlady wrote: »

Well done to your wife for giving up her pampering I understand how looking good is important to her, but she really cant afford this at the moment, has she researched swishing sites, such as bigwardrobe.co.uk basically for the cost of her old items plus a couple of pounds in postage she can get a new item. Possibly worth looking into?

Sorry but she really has to cutt out the fags. They smell, make you need to spend more money on teeth whitening etc, kill her quick and COST A FORTUNE.

the £300 food is exessive. What do you guys eat to need £37.50 each allowance on food :S I think, if she gave up smoking you could cut that down to £20 each and still eat really good.

You both sound really young, and in a way its good you've had this lightbulb moment now rather than allowing your debts to continue for another 20 years and being in enourmous trouble. But really, you need to give up on things you love for a bit

Smoking also gives you wrinkles. She'll maintain her youthful looks longer if she quits. :A

gonzo127

fatlad9 wrote: »

ok this time ive put more accurate income... and left the minimum payments largely blank.. as im going to obviously cut down on my outgoings, and then tackle the debts. my credit rating is poo poo anyway so im open to suggestions!
just a bit of background info - im 25 and wife is 22. loan was for wedding in vegas and honeymoon in cancun. at least i dont need to worry about paying for a wedding etc in future.
if i can get mobiles down to even 80 a month it'll be a big help.
once last loan payment goes in april it'll mean i'll be able to bang that off debt.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1480
Partners monthly income after tax....... 950
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2430
Monthly Expense Details
Mortgage................................ 546
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 8
Council tax............................. 98
Electricity............................. 30
Gas..................................... 30 - this is not bad for gas and elec however just wondered if you have checked to find out if you are in credit or in debt, also have you looked at switching? if not get your annaul usage in KWH and use a comparison site, then go through quidco for cashback
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 15
Mobile phone............................ 140 - once again is shocking but i think you know this well done on cancelling your betting
TV Licence.............................. 12
Satellite/Cable TV...................... 35
Internet Services....................... 11
Groceries etc. ......................... 300 - this is very high i usually suggest people to aim for £60 per person per month however as you have been told some people can feed a family of 4 on £150 a month! - if you can half this will give you an extra £150 a month
Clothing................................ 50 - £600 a year on clothes! your wardrobes must be bursting! i spend under £300 a year on a family of 5 with 2 teenagers and a baby! - try and just use what you own
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 116
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 - who do you actually buy for? £600 a year is a lot without kids to buy for
Haircuts................................ 0
Entertainment........................... 150 - once again massive amount when wanting to become debt free, try and drop this to under £50 with the weather improving there is a lot more things you can easily do for free!
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1636

Assets
Cash.................................... 0.47
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 125000.47

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 119000...(546)......4
Total secured & HP debts...... 119000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
hsbc loan......................418.......209.......0
lloyds authorised OD...........650.......10........0
next 1.........................610.......0.........29
WESCOT.........................100.......0.........0
BPO COLLECTIONS................200.......0.........0
additions......................50........25........39
simplybe.......................450.......0.........29
very.co.uk.....................410.......0.........39
argos..........................480.......0.........29
next 2.........................490.......0.........29
Total unsecured debts..........3858......244.......-

Monthly Budget Summary
Total monthly income.................... 2,430
Expenses (including HP & secured debts). 1,636
Available for debt repayments........... 794
Monthly UNsecured debt repayments....... 244
Amount left after debt repayments....... 550
Personal Balance Sheet Summary
Total assets (things you own)........... 125,000.47
Total HP & Secured debt................. -119,000
Total Unsecured debt.................... -3,858
Net Assets.............................. 2,142.47

ok i have added a few comments above i honestly think you could easily free up over £300 more a month if you make a few changes to your life style, taking that on top of your calculated £550 surplus a month you will will have at least £800 a month to pay your debts so could become debt free within the next 6-7 months!

savingmummy

GP`s really help with the smoking now!
My dh has been smoking since 14 and is now 33 and has given up with help from the gp!
We just couldnt afford the money anymore so he had to do it, he is on prescriptive pills and they have really worked for him.

Worth getting her an appointment and also help keep her healthy

josephine82

Just like to re-iterate about the smoking- the NHS is all over helping people to give up smoking so the GP will definitely help.

Can you do a monthly shop online and get it delivered (with free delivery of course :T) to stock up your cupboards, then you just need to top up with fresh stuff every week. I manage easily on £80 a month for just me.

Nights out don't have to stop- If you can go out and not drink alcohol then you can go out for fairly cheap- Drink lime and soda, its refreshing, and each one is usually about 50p-£1.00!

Start a spending diary, today. Both of you. Its amazing what you buy without thinking about it and this is an area where you can cut down on unneccesary spending and throw the extra money saved at your debts.

Any other opportunites for extra income- your other halfs wage is quite low- can she increase hours/look for a new job etc?

You can do this- you need to reduce outgoings as much as you can, put together a careful, realistic budget, and stick to it. Its hard but you will do it. Good luck!