Clearing down my debt at last

frugalzzz

Hi everyone, I've been reading this board ever since I had my lbm on July 23rd. I am very motiviated to clear down my debt (finally), and start making inroads into our mortgage. Can you take a look at my SOA and advise please? We have a great income jointly and get good benefits due to my dds disability, we are making the payments but for what we earn I know we can do better. I would really appreciate your input.

We have cleared almost 10k of debt since last July and I've been pulling and dragging dh along with me. He seems to have had his own lbm, but he's still quite capable of spending on a whim and not realising the damage he can do to the account! I seem to be 'nickle and diming' him all the time and feel like his Mum. I would love you all to give us some feedback.

The only non negotiable is the Sky package, dd13 lives and dies for the Disney Channel, and she brings in €450 in benefits so I feel she's paying for this

Okay here goes:

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................ 2450
Partners monthly income after tax....... 3500
Benefits................................ 600
Other income............................ 0
Total monthly income.................... 6550
Monthly Expense Details
Mortgage................................ 880
Secured/HP loan repayments.............. 447
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 150
Gas..................................... 0
Oil..................................... 100
Water rates............................. 0
Telephone (land line)................... 47
Mobile phone............................ 50
TV Licence.............................. 15
Satellite/Cable TV...................... 59
Internet Services....................... 0
Groceries etc. ......................... 600
Clothing................................ 100
Petrol/diesel........................... 300
Road tax................................ 25
Car Insurance........................... 62
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 825
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 100
Pet insurance/vet bills................. 0
Buildings insurance..................... 32
Contents insurance...................... 22
Life assurance ......................... 57
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 25
Entertainment........................... 300
Holiday................................. 300
Emergency fund.......................... 100
Total monthly expenses.................. 4796

Assets
Cash.................................... 0
House value (Gross)..................... 375000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 390000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(880)......0
Secured Debt.................. 6484.....(200)......0
Hire Purchase (HP) debt ...... 6683.....(247)......0
Total secured & HP debts...... 193167....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Visa.....................797.......50........0
Total unsecured debts..........797.......50........-

Monthly Budget Summary
Total monthly income.................... 6,550
Expenses (including HP & secured debts). 4,796
Available for debt repayments........... 1,754
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 1,704
Personal Balance Sheet Summary
Total assets (things you own)........... 390,000
Total HP & Secured debt................. -193,167
Total Unsecured debt.................... -797
Net Assets.............................. 196,036

frugalzzz

PS: I should mention that we're in the South of Ireland, so everything is in Euro.

Tixy

Hi and well done for posting
To be fair as you have mentioned you are in ireland and this is in euros some of the advice may not be quite spot on for you, but hopefully we ca give you some suggestions.

frugalzzz wrote: »

Hi everyone, I've been reading this board ever since I had my lbm on July 23rd. I am very motiviated to clear down my debt (finally), and start making inroads into our mortgage. Can you take a look at my SOA and advise please? We have a great income jointly and get good benefits due to my dds disability, we are making the payments but for what we earn I know we can do better. I would really appreciate your input.

We have cleared almost 10k of debt since last July thats really impressive and I've been pulling and dragging dh along with me. He seems to have had his own lbm, but he's still quite capable of spending on a whim and not realising the damage he can do to the account! I seem to be 'nickle and diming' him all the time and feel like his Mum. I would love you all to give us some feedback.

The only non negotiable is the Sky package, dd13 lives and dies for the Disney Channel, and she brings in €450 in benefits so I feel she's paying for this Fair statement - however it might still be worth seeing if sky will do you a 6month deal (at maybe half price) if you threaten to leave, in the UK they seem desperate to keep customers.

Okay here goes:

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................ 2450
Partners monthly income after tax....... 3500
Benefits................................ 600
Other income............................ 0
Total monthly income.................... 6550
Monthly Expense Details
Mortgage................................ 880
Secured/HP loan repayments.............. 447
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 150 looks quite high (even in euros) do you have many suppliers you can switch between? if so have you checked if you are with the cheapest? do you use energy efficent items where you can (lights etc)?
Gas..................................... 0
Oil..................................... 100
Water rates............................. 0
Telephone (land line)................... 47
Mobile phone............................ 50
TV Licence.............................. 15
Satellite/Cable TV...................... 59 see point above
Internet Services....................... 0
Groceries etc. ......................... 600 looks quite high. Have you tried different supermarkets to see which is cheapest? have you tried meal planning for a whole week before you go to the shops? some people find they save if they shop by internet for most things and just nip to the shops for fresh produce.
Clothing................................ 100 can this be reduced a little (even if just for 6months or so)
Petrol/diesel........................... 300 is this mostly commuting? are all journeys essential? do you make sure you always fill up at the cheapest filling station?
Road tax................................ 25
Car Insurance........................... 62
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 825
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 100 this looks very high - is it due to DD? any chance of making savings anyhow (in the UK we have prepayment seasonal certificates which save money)
Pet insurance/vet bills................. 0
Buildings insurance..................... 32
Contents insurance...................... 22
Life assurance ......................... 57
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 can you reduce this? buy for less people or spend less on each, start xmas shopping earlier and check out online places/ebay for bargains?
Haircuts................................ 25
Entertainment........................... 300 can you reduce this for now?
Holiday................................. 300 E3600 looks pretty high, could you go somewhere cheaper this year? I guess maybe it costs a bit more to find places suitable for DD?
Emergency fund.......................... 100 are you actually saving this?
Total monthly expenses.................. 4796

Assets
Cash.................................... 0
House value (Gross)..................... 375000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 390000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(880)......0
Secured Debt.................. 6484.....(200)......0
Hire Purchase (HP) debt ...... 6683.....(247)......0
Total secured & HP debts...... 193167....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Visa.....................797.......50........0
Total unsecured debts..........797.......50........-

Monthly Budget Summary
Total monthly income.................... 6,550
Expenses (including HP & secured debts). 4,796
Available for debt repayments........... 1,754
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 1,704
Personal Balance Sheet Summary
Total assets (things you own)........... 390,000
Total HP & Secured debt................. -193,167
Total Unsecured debt.................... -797
Net Assets.............................. 196,036

Do you have the £1704 'spare'? how much of this have you been using to overpay your debts. You've done really well to clear so much, hopefully you can clear off that tesco card and then only use it when you need to (for the section 75 protection), not to hold a balance on.

Is the secured debt secured on the house? Do you know the APR of the mortgage, secured debt and HP? Have you found out if you can make overpayments against the secured debt?

You look in pretty good shape. There may be some cost savings to be made but I'd say you are doing really well.
Good luck

gonzo127

frugalzzz wrote: »

Hi everyone, I've been reading this board ever since I had my lbm on July 23rd. I am very motiviated to clear down my debt (finally), and start making inroads into our mortgage. Can you take a look at my SOA and advise please? We have a great income jointly and get good benefits due to my dds disability, we are making the payments but for what we earn I know we can do better. I would really appreciate your input.

We have cleared almost 10k of debt since last July and I've been pulling and dragging dh along with me. He seems to have had his own lbm, but he's still quite capable of spending on a whim and not realising the damage he can do to the account! I seem to be 'nickle and diming' him all the time and feel like his Mum. I would love you all to give us some feedback.

The only non negotiable is the Sky package, dd13 lives and dies for the Disney Channel, and she brings in €450 in benefits so I feel she's paying for this

Okay here goes:

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................ 2450
Partners monthly income after tax....... 3500
Benefits................................ 600
Other income............................ 0
Total monthly income.................... 6550
Monthly Expense Details
Mortgage................................ 880
Secured/HP loan repayments.............. 447
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 150 - this seems a lot so just make sure you are on the best tarrif and see if you can reduce a little
Gas..................................... 0
Oil..................................... 100
Water rates............................. 0 - no water rates?
Telephone (land line)................... 47 - this is a lot try and find out who and when you are calling, and see if you can get a cheaper bundle, Sky do £5 bundle for unlimited anytime calls + many international calls
Mobile phone............................ 50 - check if you are using all your mins and texts if not phone the company and ask to have your tarrif reduced to a more suitable one, the worst they can say is no
TV Licence.............................. 15
Satellite/Cable TV...................... 59
Internet Services....................... 0
Groceries etc. ......................... 600 - a lot, i usually tell people to aim for about £60 per person per month, which is do-able and can be done for even less when you consider osme people on here can do this for a family of 4 for £150 a month, plan all your meals and only buy for them, batch cook the meals and freeze the left overs for home made ready meals, also look at the drop a brand chalenge
Clothing................................ 100 - holy cow, your wardrobes really must be bursting! try and ware what you have for now, and also look at some of the cheaper shops for clothes when you have to buy them, Tesco Asda Primark matalan all do reasonable quality stuff which looks good
Petrol/diesel........................... 300
Road tax................................ 25
Car Insurance........................... 62
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 825
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 100
Pet insurance/vet bills................. 0
Buildings insurance..................... 32
Contents insurance...................... 22
Life assurance ......................... 57 - this seems a lot do a couple of comparisons to make sure you are getting the best deal and use a cashback site if you swop
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 - this is also a lot do you really need to spend £1200 a year on presents?
Haircuts................................ 25
Entertainment........................... 300 - make use of the better weather, lots of nature walks can be done, buy a pair (or 2) of binoculars and a local bird/wildlife book and go out into the country side and get your kids to try and spot the different animals/birds, can make a game of it with a chocolate bar being the prize for the person who spots the most
Holiday................................. 300
Emergency fund.......................... 100 - wow you must be covered for some big emergencies
Total monthly expenses.................. 4796

Assets
Cash.................................... 0 - large emergency fund but no cash?
House value (Gross)..................... 375000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 390000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(880)......0
Secured Debt.................. 6484.....(200)......0
Hire Purchase (HP) debt ...... 6683.....(247)......0 - no apr's?
Total secured & HP debts...... 193167....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Visa.....................797.......50........0
Total unsecured debts..........797.......50........-

Monthly Budget Summary
Total monthly income.................... 6,550
Expenses (including HP & secured debts). 4,796
Available for debt repayments........... 1,754
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 1,704 - wow should make short work of your mortgage
Personal Balance Sheet Summary
Total assets (things you own)........... 390,000
Total HP & Secured debt................. -193,167
Total Unsecured debt.................... -797
Net Assets.............................. 196,036

ok i have made a few comments above, some of them might seem a bit extream when considered what income you have however since you wanted ideas i thought i would put them up anyway

psychopathbabble

frugalzzz wrote: »

Okay here goes:

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................ 2450
Partners monthly income after tax....... 3500
Benefits................................ 600
Other income............................ 0
Total monthly income.................... 6550
Monthly Expense Details
Mortgage................................ 880
Secured/HP loan repayments.............. 447
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 150this is high?
Gas..................................... 0
Oil..................................... 100
Water rates............................. 0
Telephone (land line)................... 47can this be lowered? this seems very high along with the mobiles too.
Mobile phone............................ 50much too high!
TV Licence.............................. 15
Satellite/Cable TV...................... 59
Internet Services....................... 0
Groceries etc. ......................... 600there are some ideas for lowering this on the old style board.... some people feed family of 4 on £200 a month!
Clothing................................ 100this is much too high!! don't buy your oh and yourself anything, just the necessities for kids for now
Petrol/diesel........................... 300can this be lowered in any way?
Road tax................................ 25
Car Insurance........................... 62use comparison sites?
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 825
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 100assume this is for dd?
Pet insurance/vet bills................. 0
Buildings insurance..................... 32
Contents insurance...................... 22
Life assurance ......................... 57 can you shop around for buildings, contents, life insurances?? over 100 seems high.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100this is far too high.... £1200 a year!! only buy kids smaller gifts, everyone else can go without or at least just buy token gifts that don't cost anything.
Haircuts................................ 25
Entertainment........................... 300what does this go on???
Holiday................................. 300 same as above, £3600 on a yearly holiday is a luxury you can't afford if you want to tackle your debts unless it's already booked.
Emergency fund.......................... 100good but this is probably better going towards debts
Total monthly expenses.................. 4796

Assets
Cash.................................... 0
House value (Gross)..................... 375000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 390000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 180000...(880)......0
Secured Debt.................. 6484.....(200)......0
Hire Purchase (HP) debt ...... 6683.....(247)......0
Total secured & HP debts...... 193167....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Visa.....................797.......50........0
Total unsecured debts..........797.......50........-

Monthly Budget Summary
Total monthly income.................... 6,550
Expenses (including HP & secured debts). 4,796
Available for debt repayments........... 1,754
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 1,704
Personal Balance Sheet Summary
Total assets (things you own)........... 390,000
Total HP & Secured debt................. -193,167
Total Unsecured debt.................... -797
Net Assets.............................. 196,036

hope this begins to help! well done on posting your soa, lots you can cut back on xx

frugalzzz

Thanks for the fantastic responses. Lots to chew on.

To answer a few queries, Petrol costs are what they are I'm afraid, due to the long commutes for both of us, however, we can certainly shop around a bit more.

Medical bill is for dd yes, and we do get a rebate on that every January.

Emergency fund, is at zero right now, as I emptied it to pay down some cc debt, but I was planning to start rebuilding it. I think I'll take the advice and use it to clear debt.

Grocery shopping is a good one. I will show that to dh, he is convinced we can't go any cheaper. (We've got that down from €320 a week!), I'll start haunting the OS board.

We can definitely cut down, if not cut out the Entertainment budget, and the clothing budget at least for a few months.

The holiday...hmmmm...dunno, need to think about that. Not yet booked, so we could definitely do something much cheaper.

The Christmas fund, is a club we pay into. We might just us that at the end of the year to finish off a debt if need be.

I will call Sky, thanks for that one!

No water rates in Ireland

Okay, need to re read the other ideas and suggestions. Lots to think about, heading home now, be back on tonight. Thank you all!!!! Much appreciated xx

psychopathbabble

Good luck Frugal!! Always lots of advice and helpful hints to be found when trawling the boards xx

DarkConvict

You seem to be a good position, high income with a good surplus, so then unlike others on the forum you don't need to strip down to the bone.

I concur with the above, Holiday, Entertainment, groceries, presents and clothes are all too high. Cutting these down can probably save you 7200 euro a year. Add to your surplus you can cover the unsecured debt and cut a huge chuck of secured debt in 12 months.

frugalzzz

Hi been re-reading everyone's replies, thanks for all the input.

Yes we do earn good money between us, although it is euros, so deduct around 15%. And obviously that applies to the debt too.

Regarding the electricity, we recently moved to a cheaper provider, and it's still high I know. The house is bigger than average, but we don't use ouor dishwasher, don't own a tumble dryer, switch all lights off etc. I'm hoping to see some results for our efforts in our next bill.

I dunno the apr of my loans, how bad is that?

Food prices are higher here, but I always shop reduced to clear. We now have a chest freezer full of meat so we should be good for a month or so. We also grow loads of veggies and keep chickens, pigs and bees. Hoping to provide a good chunk of our food for the Summer. Dd has dietary issues and we have to buy her certain foods, but even at that there is major room for improvement.

Dark Convict your brief calcuation of 7.2k made me sit up and take notice!

Is our mobile bill too high? €50 a month for 2? I was quite pleased with that!

I think we've been hugely wasteful in the past, shamefully so, but thank God for that LBM and this forum.

Tixy

I don't think your mobile is too bad at all frugal.

With regards to the elec - do you heat your water by elec? if you have an immersion heater maybe check how long that is on for a day, you might be able to reduce that down and still have plenty of water for you all. If you are still struggling to get lower then you could consider investing in one of those elec meters that tells you how much you are using all the time, that might help you spot the expensive items.

Oo bees - do you make your own honey? my parents used to when I was a child - I loved it (well the honey bit rather than the bee bit)

Good luck

zarazara

I know this sounds drastic but have you considered downsizing to a smaller property? = cheaper mortgage and heating costs?