X's first foray against debt

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Hi All,

I have the been hanging about on the forum for a couple of weeks now getting the general idea of things.

My financial situation has not been brilliant for a while now but reading about others and the efforts they have made has started to hit home.

Laying awake in the early hours this morning worrying about stuff I guess could be classed as my lightbulb moment.

I am going to try my hardest to get my debts under control.

I suspect I am going to face difficulty with my other half as she does not seems to see it as problem in the same way that I do. Any advice on how I can discuss things with her and get her around to the DFW way of thinking? Going to be very difficult to change things unless can get her on side

We are moving at this weekend (renting) so that will be an ideal time to review things and see what can be done.

To my shame I don't even know how bad things are , I guess I need to produce a spreadsheet of our debts.

Shall I produce a list of out our incomings and outgoings to make things easier.

How to do I determine my debt free date?

Thanks for your time

X

FrugalJo

Morning X
These boards certainly get you focused and up for the challenge, I'm no MSE expert, (on my to -do list ! ) but the superb frugal helpful peeps will be along in a momen tasking for your incomings outgoings etc.

If you are moving it's a great time to sort out your unwanted bits and pieces for ebay/amazon.

Those hours lying awake worrying are one of worst bits about finding yourself in debt, I think that is part of the lightbulb moment - just to get a good nights sleep

Jo

CLAPTON

you need to produce your Statement of affairs (SoA)
this is a detailed list of all your income, your spending and your debts.


you can use the budget planner (see top of page ) to help with the spending as you must include everything you will spend over the next 12 months and not just the obvious monthly ones.

also see this thread for more details

http://forums.moneysavingexpert.com/showthread.html?t=107280

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Clapton

Thanks,I will make a start on that tonight.

homersimpson_3

To my shame I don't even know how bad things are , I guess I need to produce a spreadsheet of our debts. Shall I produce a list of out our incomings and outgoings to make things easier.

the trick to becoming debt free is to manage your finances like any other work based or college project, be organised and know what's coming in and going on. so yes produce statement of affairs- incomings, outgoings, debt and savings. don't be asahmed - large numbers of people don't know all the details of their debts either- ensure you post soa tonight because if you're moving it is likely to get left- the move/sorting from move will take over and things like soa will get left.

I suspect I am going to face difficulty with my other half as she does not seems to see it as problem in the same way that I do. Any advice on how I can discuss things with her and get her around to the DFW way of thinking? Going to be very difficult to change things unless can get her on side

countless threads on this one and queston been asked on numerous occasions before- alot depends on soa - will answer this after posted soa- haven't got full story so not enough info on which to answer question

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Okay,

Did not manage to produce a SAO last night - yes me bad. I will get one done as soon as OH and me get time to sit together and work it out.

I have however done the following.

Cut down my broadband as I was not reachining the higher download limit. This is £7 per month saved.

This morning I read the Best Balance transfers article discussion and have applied for one of The lowest ‘life of balance transfer’ rates.

My aim is to transfer as much balance as possible to the new card with lower rate. Pay smaller monthly payments on this and increase payments on any remaining balance on the larger card.

Next item car tax.
We currently have two cars, but it has ended up that they both need taxing at the same time. When I move I will be in a position to car share with somebody. I may try to SORN one car for a month or two to offset always paying out on road tax. The only disadvantage of this is "loosing" the time on the insurance, but I need to stay covered for the other car. - Any ideas?

CLAPTON

why not get rid of one car with all the attendant savings and become a named driver on the other one.

MrsTinks

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Next item car tax.
We currently have two cars, but it has ended up that they both need taxing at the same time. When I move I will be in a position to car share with somebody. I may try to SORN one car for a month or two to offset always paying out on road tax. The only disadvantage of this is "loosing" the time on the insurance, but I need to stay covered for the other car. - Any ideas?

Yes

The post office allows you to do savings voucher thingies specifically FOR car tax work out the total you need to pay and then split into 11 (give yourself a break for xmas ) and each month in your budget go and buy the vouchers you need This will spread the cost and make it easier and more managable and not huge big sudden costs all at once

MrsTinks

Or as pointed out... Sell one

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Really want/need to keep two cars.

Location of work, the fact OH and me work different hours and dropping off collection of little one would become very difficult.

As I say hope to car share to reduce fuel costs, the other car (diesel) nearly always gets filled up in France @ 72p per litre.

I do my own servicing and maintenenance to reduce costs.

I will look for the monthly saving scheme at the Post Office, thanks for the suggestion.

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SOA

Income

Combined Wages 2113
Child Credit & Benefit 108.22

Total Income 2221.22



Expenditure

Home

Rent 650
Insurance 11.57
Council Tax 105
Water 43
Electric 25 (1)
Phone Bill 20 (1)
Internet 24 (2)
Mobile Phone 30 (3)

Subtotal 908.57

Fun and Frolics

TV License 11
Sky 21 (4)

Subtotal 32

Transport and Travel

Car insurance (x 2) 80
AA membership 13.55
Car Tax (x 2) 20

Subtotal 113.55

Debts

Halifax Loan 379.79 ---- (5)
Egg Card 142.34 ---- 7271 @ 15.9% (6)
Cahoot 100 ---- 4652 @ 14.8% (7)
Virgin 90 ---- 4572 @ 15.9% (7)
Other 43 ---- 500 @ 0%

Subtotal 758.26


Expenditure Total 1813

Available money for month 408

From this is food, fuel and any other expenses

Notes
1 - Currently pay set amount per month and are in credit on all these. Once a year use credit as payment break
2 - Reduced to 14 from next month
3 - Will ask OH to drop to lower tarrif
4 - This will be cancelled next week
5 - Do not know outstanding balance until able to visit bank to confirm
6 - Card in my name have applied of Sainsburys card @ 5.9 to transfer as much balance as possible
7 - In OH name unable to apply for card at lower rate as not been with current employer long enough. Should she consider asking her bank for a loan to pay off cards before cutting them up?