Oh my! I think it's about time we joined you.

DoraTheExplorer_3

I have been a lurker on here for a few days and so far have picked up many useful tips from you all. However all it has done so far is made me realise how much we have to do to become debt free and i'm having a meltdown! Is this normal????

We are expecting our third child this summer and obviously this will mean our outgoings will be going up even more. We are so far hanging on by a thread, but much of it is done by robbing peter to pay paul. Every month we run out of money before payday and it's so depressing.

Does anyone have any tips???? We don't go out a lot as it is and we have actually never earnt as much between us as we are now but yet seem to be worse off... how??

Many thanks!

DarkConvict

If you have been making only min payments on debt and keep on spending, then interest rises and your outgoings increase. This might be the trap you have fallen into. A trap that has swalled many people.

Step 1 - Post up an SOA in MSE format. http://www.makesenseofcards.com/soacalc.html

Good luck.

paybacktime2008

Welcome aboard!

Do the SOA, it's a horrible sobering thing to do but it's the best possible place to start.

Good luck.

DoraTheExplorer_3

Ok here is the SOA be gentle!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 1500
Benefits................................ 230
Other income............................ 0
Total monthly income.................... 2130
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 55
Gas..................................... 45
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 30
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 51
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 86
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 17
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1490

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide c/c.................3140......155.......19.9
Mint c/c.......................711.......16........15.9
Next...........................664.......59........26.49
Parents........................3000......300.......0
Loan...........................652.......163.......0
Overdraft 2....................1000......0.........18.9
Overdraft 1....................1400......0.........18.9
River Island...................844.......22........17.9
Argos..........................477.......19........27.9
Total unsecured debts..........11888.....734.......-

Monthly Budget Summary
Total monthly income.................... 2,130
Expenses (including HP & secured debts). 1,490
Available for debt repayments........... 640
Monthly UNsecured debt repayments....... 734
Amount short for making debt repayments. -94
Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,888
Net Assets.............................. -10,388

Reproduced on Moneysavingexpert with permission, using IE browser.

niccatw

Hi

Welcome to MSE. You've made the hardest,scariest step by posting you SOA. Well done.

I've made some suggestions below. Remember, people make suggestions you may not agree are useful for you or your family, but keep coming back to your SOA, as I found, over time, what I wasn't initially prepared to do, was much easier to do 3-6 months down the line. Try to be objective (which is admittedly hard when you are just starting out).

Also, have a look at some of the DFW diaries for a bit of inspiration and motivation.

Yes, it'l be hard, but it's doable. Good luck

DoraTheExplorer wrote: »

Ok here is the SOA be gentle!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 400
Partners monthly income after tax....... 1500
Benefits................................ 230
Other income............................ 0
Total monthly income.................... 2130
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 55
Gas..................................... 45
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 30 Can you reduce this or swap for a cheaper provider?
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 51 Gien your shortfall,you seriously neeed to think about giving this up and going freeview (which you can get from your Sky box) or at least reducing your package. If you cancel, they'll likely try and keep you and you can find you can get the same package for £10 per month (that's what my friend did).
Internet Services....................... 0
Groceries etc. ......................... 250 Have a look at the OS forum for tips on reducing your grocery budget. Meal planning is a greathelp here too.
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 86
Car maintenance (including MOT)......... 5 Won't you need a little more than this?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 17
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 This is more than you can afford at the moment. Perhas immediate family only and reduce how much you buy. OS board also has great ideas on homemade gifts.
Haircuts................................ 20
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1490

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide c/c.................3140......155.......19.9
Mint c/c.......................711.......16........15.9
Next...........................664.......59........26.49
Parents........................3000......300.......0
Loan...........................652.......163.......0
Overdraft 2....................1000......0.........18.9
Overdraft 1....................1400......0.........18.9
River Island...................844.......22........17.9
Argos..........................477.......19........27.9
Total unsecured debts..........11888.....734.......-

Have a look at the snowballcalcualtor which can help you check where you might be best throwing your money to first. http://www.whatsthecost.com/snowball.aspx

Monthly Budget Summary
Total monthly income.................... 2,130
Expenses (including HP & secured debts). 1,490
Available for debt repayments........... 640
Monthly UNsecured debt repayments....... 734
Amount short for making debt repayments. -94
Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,888
Net Assets.............................. -10,388

Reproduced on Moneysavingexpert with permission, using IE browser.

Do you have anything you can ebayvto help get some extra money?
Perhaps try a spending diary if you're not sure where your money is going.

Good luck

katsu

DoraTheExplorer wrote: »

Ok here is the SOA be gentle!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 400 look at how you can increase this - via the up your income boards or extra work?
Partners monthly income after tax....... 1500
Benefits................................ 230
Other income............................ 0
Total monthly income.................... 2130
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 55
Gas..................................... 45
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 30 can you reduce this? check the main site for advice (use telephone tab at top of screen)
Mobile phone............................ 15
TV Licence.............................. 12
Satellite/Cable TV...................... 51 reduce this - can you get freeview?
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 20
Petrol/diesel........................... 100 reduce non essential journeys. Walk or cycle if only a short distance (obviously not with monthly groceries )
Road tax................................ 0
Car Insurance........................... 86 this seems very high - checked comparison sites?
Car maintenance (including MOT)......... 5 this seems very low
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 30what is this?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 17
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 reduce this. I spend around £35pcm and give gifts to 23 people for christmas and around 6 birthdays.
Haircuts................................ 20
Entertainment........................... 40 reduce this
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1490

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide c/c.................3140......155.......19.9
Mint c/c.......................711.......16........15.9
Next...........................664.......59........26.49
Parents........................3000......300.......0
Loan...........................652.......163.......0
Overdraft 2....................1000......0.........18.9
Overdraft 1....................1400......0.........18.9
River Island...................844.......22........17.9
Argos..........................477.......19........27.9
Total unsecured debts..........11888.....734.......-

Monthly Budget Summary
Total monthly income.................... 2,130
Expenses (including HP & secured debts). 1,490
Available for debt repayments........... 640
Monthly UNsecured debt repayments....... 734
Amount short for making debt repayments. -94
Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,888
Net Assets.............................. -10,388

Reproduced on Moneysavingexpert with permission, using IE browser.

Hope some of the above is helpful.

DoraTheExplorer_3

Hi thanks for your input.

You're right, its very scary doing this for the first time but actually have found it quite liberating.

Comments about the SOA.....

Very right about the sky! This includes our broadband, but i will get hubby to call up and reduce it- if they won't reduce it then we will have to cancel.

The extra child expenses are swimming fees for school- they all do the lessons and i have checked whether we are entitled to help but we aren't.

The car expenses are very low - hence borrowing from parents as we don't have enough to save for the unexpected car costs we have incurred. (amoungst other things).

We only drive to work and i have to use the car for school run.

I am working full time but self employed and unfortunately in a business which is well known for being low paid. I do earn more than this but expenses (necessary) can be high and this is my profit. On the plus side we have no childcare fees.

Hope thse don't sound like excuses, I have noted a few suggestions that i will def crack on to. I know I am being ripped off on car insurance (although this included business cover) as i have never moved provider! Home phone i will look into as i have free weekend and evening but ironically only ever use it in the day!

And presents is another high one- i feel bad though as a lot o people buy for us and children and are very generous so i feel rude not buying the same back.

Enetertaiment will be hard as we don't do a lot as it is! Hopefully cheaper as the summer approaches and can do more outside.

Thanks all! Any more advice would be appreciated! x

Cleosmum

Are the children at primary school and doing swimming lessons? I have been told that they can only request a voluntary contribution as its part of the curriculum, so double check. Ours ask for a voluntary contribution of £7 per term, so I would be checking £30 a month!

DoraTheExplorer_3

Yes they are at primary school. I did not know this. The original letter asked for a voluntary contribution but when we didn't pay it they said that they wouldn't be able to carry on the lessons (£5.70) a week. So we refused to let them miss out and paid up. Interesting that they can't insist so i will have to speak to them, thanks Cleosmum.

Cleosmum

You will have to ask them what they think voluntary contribution means

katsu

Pressies - shop in 99p/pound shop, go to charity shops, make things, get kids to make things, love the sales. I spend £180 for 23 people for Christmas last year so it really is do-able.