Lightbulb Moment - Please Help x

kathrynrobson1011

Hi Everyone,

I have been a lurker on these boards for a couple of years now, but it is now time to take action.

I am feeling quite positive about this, actually sat my husband down in tears and confessed how I have been feeling for months. His attitude has always been it's only money, stop worrying, but worrying I have been.

To cut a long story short I was made redundant last June and went from a 30k a year job to a 15k a year job. It is manageable, and we still have a surplus, but what it has made me realise was that boy did we overspend when I had the well paid job. Always in overdraft at the end of month and maxed out credit cards. I managed to reduce our debt by 18k with my redundancy (very lucky that I found a job quickly otherwise think we would have been homeless by now).

I have attached my SOA below. Please feel free to comment on all areas. I have also added some notes as some things are unable to change at present, due to contracts, etc.

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.................... 1

Monthly Income Details
Monthly income after tax................ 1022
Partners monthly income after tax....... 1083
Benefits................................ 189.28
Other income............................ 0
Total monthly income.................... 2294.28

Monthly Expense Details
Mortgage................................ 595
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 30
Gas..................................... 20
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 22.48
Mobile phone............................ 35
TV Licence.............................. 12.12
Satellite/Cable TV...................... 49
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 13.33
Car Insurance........................... 33
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 12.12
Contents insurance...................... 14.41
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1371.46


Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 93500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 73500....(595)......7.09
Total secured & HP debts...... 73500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Credit Card.............985.......16.93.....22.9
Lloyds Credit Card 2...........2130......40........16.9
Dorothy Perkins Card...........1850......65........29.9
Loan...........................15200.....315.3.....0
Car Loan.......................1671.04...104.4.....0
Catalogue......................1850......95........39.7
Total unsecured debts..........23686.04..636.63....-


Monthly Budget Summary
Total monthly income.................... 2,294.28
Expenses (including HP & secured debts). 1,371.46
Available for debt repayments........... 922.82
Monthly UNsecured debt repayments....... 636.63
Amount left after debt repayments....... 286.19

Personal Balance Sheet Summary
Total assets (things you own)........... 93,500
Total HP & Secured debt................. -73,500
Total Unsecured debt.................... -23,686.04
Net Assets.............................. -3,686.04

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I have checked through the bank statements and we spent surplus, plus a little more, on nothing but utter rubbish and nothing, except minimum payments on debt.

Can you please help?

Thanks

Kat x

kathrynrobson1011

Forgot to add a few things

Sky is in a contract until Dec 10

Mobile phones are for me and hubby both in contract

Internet is included in phone package

Right think that's it x

trace123

hi kathryn ,
i`m in a similar position ,
been lurking for ages , and have now taken the bull by the horns and started sorting out my debts at long last .
good luck ,
trace

kathrynrobson1011

Thanks Trace,

I'm hoping that someone will come along soon and offer some advice. Hubby has now retreated to play on the X-Box and I'm let on my own number crunching!!!!!

Good Luck on your journey too. Kat x

Sagz_2

I think you need to be a little more realistic in you figures - 50 quid for presents but nothing for clothes, haircuts, car MOT etc. It's not easy but you really need to get the figures as accurate as you can.

Have you checked gas/lecky/water to see if you are on the cheapest rate? If you do decide to switch check out the cashback sites to see if you can get a little bonus.

Is the Sky on the lowest package you can get? I know nothing about Sky.

Well done on making a start - and consider youself bumped xx

fermi

kathrynrobson1011 wrote: »

Can anyone tell me how to bump a thread up?

Now you've got it.

kathrynrobson1011

Hubby back on Xbox and I'm still here number crunching.

I've made a list of all the food in the house, and apart from Bread, Milk and Veg, I think we have enough to last till the end of the month.

Just about to start on my menu plans, but any advice you lovely people can give would be much appreciated.

Thanks Kat x

DVardysShadow

Do you actually have your surplus available each month? If you do, fine, but if not, you need a spending diary and you need to get your spending in line with your SoA. Provided you can live within your SoA, you seem to have caught this in time, although it looks like about 5 years to get debt free.

Others will suggest where you can cut back. I would suggest you put together a plan on repayment of your debt - pay off the catalogue and then Dorothy Perkins ASAP - the rates of interest are obscene - and this will free up another £150/month to throw at the rest of your debts. If you need [not want] clothes etc that you would have bought this way, at least buy them cash rather than put them on the cards.

La_escocesa

Hi Kathryn :wave:

Welcome aboard! :beer:

I hope you find it helpful coming on here. I've made some comments below too.

I've also found it really helpful keeping a spending diary and joining in on some of the challenges on here - taking lunches to work, trying to have no spend days, selling stuff, doing mystery shops and using freebies as and when I can. The old style board is great for tips on batch cooking, cutting down on groceries bills and meal planning.

kathrynrobson1011 wrote: »

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.................... 1

Monthly Income Details
Monthly income after tax................ 1022
Partners monthly income after tax....... 1083
Benefits................................ 189.28
Other income............................ 0
Total monthly income.................... 2294.28

Monthly Expense Details
Mortgage................................ 595
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103 Can you ask to pay over 12 months to reduce this?
Electricity............................. 30 Might be worth doing a comparison to see if you should switch. Do it through a cashback site for some extra pennies.
Gas..................................... 20 As above
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 22.48
Mobile phone............................ 35
TV Licence.............................. 12.12
Satellite/Cable TV...................... 49 Do you need this?
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 13.33
Car Insurance........................... 33
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 12.12
Contents insurance...................... 14.41
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 Cut this for now.
Haircuts................................ 0 Never?
Entertainment........................... 0 Never?
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1371.46


Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 93500


Secured & HP Debts Is there any way you could see about moving onto a cheaper rate?
Description....................Debt......Monthly...APR
Mortgage...................... 73500....(595)......7.09
Total secured & HP debts...... 73500.....-.........-

Unsecured Debts Use the snowball calculator to see the most effective order to pay these (basically starting with the one charging the most interest and working backwards). Could you move some of the cc balances to other cards with lower interest? Might also be worth calling your current credit card providers to see if they'd be willing to offer you other rates (life of balance, int free for a few months etc)...worth a try!
Description....................Debt......Monthly...APR
Lloyds Credit Card.............985.......16.93.....22.9
Lloyds Credit Card 2...........2130......40........16.9
Dorothy Perkins Card...........1850......65........29.9
Loan...........................15200.....315.3.....0
Car Loan.......................1671.04...104.4.....0
Catalogue......................1850......95........39.7
Total unsecured debts..........23686.04..636.63....-


Monthly Budget Summary
Total monthly income.................... 2,294.28
Expenses (including HP & secured debts). 1,371.46
Available for debt repayments........... 922.82
Monthly UNsecured debt repayments....... 636.63
Amount left after debt repayments....... 286.19

Personal Balance Sheet Summary
Total assets (things you own)........... 93,500
Total HP & Secured debt................. -73,500
Total Unsecured debt.................... -23,686.04
Net Assets.............................. -3,686.04

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I have checked through the bank statements and we spent surplus, plus a little more, on nothing but utter rubbish and nothing, except minimum payments on debt.

Can you please help?

Thanks

Kat x

HTH

La xx

DVardysShadow

kathrynrobson1011 wrote: »

Hubby back on Xbox and I'm still here number crunching.

I hope he is giving you space rather than hiding from facts!

kathrynrobson1011

Norbertsmum wrote: »

I think you need to be a little more realistic in you figures - 50 quid for presents but nothing for clothes, haircuts, car MOT etc. It's not easy but you really need to get the figures as accurate.

Have you checked gas/lecky/water to see if you are on the cheapest rate? If you do decide to switch check out the cashback sites to see if you can get a little bonus.

Is the Sky on the lowest package you can get? I know nothing about Sky.

Well done on making a start - and consider youself bumped xx

Thanks Norbertsmum

We're quite lucky (well unlucky) that we have more clothes in our warddrobes than we could ever possibly wear (of course bought with credit).

Hubby shaves his own head, and mine and the 2 kiddies hairs are cut by my friend (professional hairdresser).

Unfortunately SKY is tied into a contract until DEC this year. Hubby decided it would be great to have HD for all the Xmas films, but didn't realise he would be tied in for a year.

I really don't know much about Car costs as I don't drive but hubby says their minimal, not really able to get much out of him.

Thanks for the tip on gas/electric. I 'll get the paperwork out, again not sure if tied into a contract on that. Does anyone know I'm on a fixed price tariff until Sep this year, does that mean you can't leave? Was on a fixed tariff from Sept 08 to Sept 09 and then it automatically continued.

Kat x