been in debt for 14 years.. sick of it

delightfuldior

I am 32 and have been in debt ever since I left home.. catalogues, loans, overdrafts, cc's you name it.. I got close to 2k in 2007 but had to buy a new car which bumped it back up to 6k, then I bought a house in 2008 and its sprialled again. Unexpected renovations needed doing and I am now 13k in debt and then I had to sign house over and still pay up 2k!!!! long story anyhow... I am now with a wonderful man who wants us to have a family and I want one too... but at this moment in time... is it possible????
I earn 19k bringing home 1252 per month. I've put pension contributions on hold as I really need the £110 per month. I do have some disposable income but every month its needed for someones bloody birthday, or a wedding or some occasion. I dont save money and I hardly ever get my hair cut, I dye it myself, spray tan myself, do all my beauty things myself..
Any ideas on how I can cut back further??? Below are my incomings and outgoings.. and please please please dont ask me to get rid of my doggies they are my life!!!!

MONTHLY INCOME AFTER TAX AND NI = £1252

RENT P/M INCLUSIVE OF BILLS £325
FOOD P/M £100
PETROL P/M £120 (I HAVE TO DRIVE FOR MY JOB BUT EXPENSES DONT COVER IT ALL!!!)
FIXED PERSONAL LOAN OF £8K P/M £162 (stops in about 5 years)
MOBILE DONGLE CONTRACTED TILL APRIL 2011 P/M £15
MOBILE CONTRACT CONTRACTED TILL OCTOBER 2011 P/M £20
CC CURRENTLY ON 0% BALANCE £514 P/M £10 MIN PAYMENT
CC CURRENTLY ON 0% BALANCE £4400 P/M £90 MIN PAYMENT
CAR INSURANCE P/M £30
DOG INSURANCE (FOR TWO) P/M £25
DOG FOOD (FOR TWO) P/M £30
DOG FLEA/TICK TREATMENT (FOR TWO IN SUMMER SEASON) P/M £18

LEAVES ME £307 PER MONTH

but as I mentioned I always have to do something and pay something out.. I promised a friend I would go away with her in September... I have said I would like a budget late deal holiday but she now is suggesting going to places like Cuba etc.. I simply cannot afford to go at all but darent let her down.. I would have to pay on cc and bump my debt up even further

There is no point in getting an IVA or anything like that because all the debt will be paid off in 5 years approx anyhow... but I am not going to wait till I am 38 to have a chiild either!!!!!!!!!!!!!!!!!!!

its so depressing and I know there are others worse off but the disposable income looks good on paper but I never see it!!!:(

the_cat

Hi and welcome!

It would be best to start with a full SOA which includes ALL your yearly expenses, not just those you pay monthly, especially as gifts,occasions etc seem to be a problem for you. Use the one at www.makesenseofcards.com and you can format it to post here. Once there is more detail, you will get loads of advice!!

The other thing to note immediately is to start a spending diary to find out where that excess is going each month. Get a notepad out and jot down absolutely everything you spend, even tiny stuff. Until you know for sure where it is going, you can't tackle it!

Good luck

the_cat

Another point..... the holiday

A good friend will understand. A bad friend is not worth having!

gonzo127

the cat is right, the best place to start is the statement of affairs, once this is done we should eb able to offer a bit more 'directed' advice on areas you might be able to make savings.

the spending diary is also a very good thing to do as if you get into the habit of writing the item you are going to buy in it BEFORE you buy it i find it can make me stop and think, do i actually need this? if the answer is no i put it back and save that money

and a holiday, really if they want to go to Cuba thats fine, just let them know that you cant afford that much, its simple really work out how much you can afford and let them know you will go on a holiday with them so long as it costs less than that amount, you would then not be letting them down and in the greater scheme of things, how do you know that they would not be getting into more debt to go on this holiday?

its shocking the lengths people go to 'keep up with the jones's' and most of the time it just puts everyone into more debt

delightfuldior

sorry if Ihave posted in the wrong section.. I am new to this forum..

I have just been on that site you suggested and only came across a monthly SOA.. very tedious I must say lol

The OTHER expenses that I have not included in my breakdown are..

car tax - every 6 months - £70 approx
car mot - every year - £40 (passed everytime so far!)
car service - every year - £180 back hander job but a good full service done
birthdays - every year throughout the year £10-15 per person x 4 £100 is for partner, everyone else just gets a card
xmas - every year £15 per person, £100 for partner + wrap and cards etc
holidays - 1/2 a year in europe, shop online for best deal.. this year had none so far and pay/save a few months running up to it
dentist - every 6 months - £17
prescriptions - as and when needed so dont budget for this
hair cut - £17 every 3 months - mobile hairdresser
hair dye - £10 every 2 months - do this myself

I forgot to add £25 every other month for dogs being groomed.

I dont think there is owt else...in relation to my mate and the holiday with her.. you are right if she is a good mate she will understand.. I have dropped her an email explaining it all and apologising prefusely. Yes its the cowardly way out but I have dropped her a text to say go to read your email as a matter of urgency too.

bryanb

[QUOTE=_please_please_please_dont_ask_me_to_get_rid_of_my_doggies_:(_they_are_my_life!!!![/QUOTE]


So you do know what's needed.

delightfuldior

I always keep a list of outgoings to be paid each month.. its how I organise myself but I always end up with zilch within a week!! Should I be putting in 'occasions'' etc in the list or only essentials then splitting whats left into weeks??? take a look at next months expenditure.. how depressing!!!!

MAY PAY - JUNE BILLSWAGE1162ovetime and 122 expenses1821344gym251st juneunion1116th juneseans bday7524th julyFOOD100PETROL120LOAN1621st june35024th junehalifax26.361st junerent3201st juneCAR INSRUANCE3015th junehols200to savehair dye10drive and stay 2 day - scotland£10025th junemum - for having dogs overnight201st juneEGG CC909th june1339.36left with4.641.03 a weekpersonal spend22 a week food spend26 a week petrol spend

delightfuldior

bryanb wrote: »

So you do know what's needed.

sorry i dont understand?? I got my dogs to replace the gap of not being able to have children with my ex partner.... now i am in a position to have kids with a new man but i will never get rid of my dogs, they are small, lovable fantastic little things and mean a lot to me.. as probably children do to others!

delightfuldior

here is the monthly soa i have done... couldnt see one for annual.. so please refer to post above for additional expenses...

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1252
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1252
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 0
Car Insurance........................... 30
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................. 25
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Dog food and seasonal treatments........ 31
Gym (3 months contract)................. 25
Total monthly expenses.................. 666

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
halifax credit card............514.......10........0
egg credit card................4400......90........0
halifax personal loan..........8000......162.......15
Total unsecured debts..........12914.....262.......-

Monthly Budget Summary
Total monthly income.................... 1,252
Expenses (including HP & secured debts). 666
Available for debt repayments........... 586
Monthly UNsecured debt repayments....... 262
Amount left after debt repayments....... 324
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,914
Net Assets.............................. -10,914

gonzo127

delightfuldior wrote: »

here is the monthly soa i have done... couldnt see one for annual.. so please refer to post above for additional expenses...

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1252
Partners monthly income after tax....... 0 - i take it if you are not adding partners income in then none of the expenses are theirs either?
Benefits................................ 0 - same as above with child? no child expenses included?
Other income............................ 0
Total monthly income.................... 1252
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0 - is this included in your rent?
Electricity............................. 0 - is this included in your rent?
Gas..................................... 0 - is this included in your rent?
Oil..................................... 0
Water rates............................. 0 - is this included in your rent?
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0 - no TV at all?
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 0
Car Insurance........................... 30
Car maintenance (including MOT)......... 0 - should budget some here
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 0 - no insurance?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - should budget this monthly to help out
Haircuts................................ 0 - should budget this monthly to help out
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Dog food and seasonal treatments........ 31
Gym (3 months contract)................. 25
Total monthly expenses.................. 666

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
halifax credit card............514.......10........0
egg credit card................4400......90........0
halifax personal loan..........8000......162.......15
Total unsecured debts..........12914.....262.......-

Monthly Budget Summary
Total monthly income.................... 1,252
Expenses (including HP & secured debts). 666
Available for debt repayments........... 586
Monthly UNsecured debt repayments....... 262
Amount left after debt repayments....... 324
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,914
Net Assets.............................. -10,914

hi well i have made a few comments, i do beleive you shoul dhave a few extras on here which you currently dont think about such as gas and electric and council tax water rates etc unless you have got one hell of a good rental package

i think at the moment you are doing the 'normal' thing of not budgettting for your normal annual expenses such as your presents etc, so when chirstmas comes around you have to panic and put everything on card.

now what i would suggest is to sign up for internet banking if you do not already do so and then apply for multiple online saver accounts,

once these have come through you can start thinking about budgetting for your normal expenses, which basically means thinking about who what about how much you wish to spend on people for their birthdays christmas and easter etc then split the annual figure into 12 and set up a standing order to go from your current account into one of yoru savings accounts for that value on or the day after pay day

if you do that with each of your normal annual expenses it will make things much easier when the time for these things come arround, you can do the same thing with your MOT and car TAX, clothes, holiday and a emergnecy fund for those cases when something just dies and needs replacing

if you can start to budget monthly for these things you will find it much easier to get your depb down, and it will give you a much more accruate monthly surplus after these things have been accounted for as going every month thinking well i should have £300 left this month but then remembering you have this thing to buy for and that thing to buy for can and does get depressing as you can just sit there and think, 'where did all my money go'

by doing a more accruate budget and getting yourself set up to put a bit aside every month for these things will help you mentally since you will not be expecting to have £300 a month but more like £30 surplus,

DVardysShadow

delightfuldior wrote: »

here is the monthly soa i have done... couldnt see one for annual.. so please refer to post above for additional expenses...

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2
Monthly Income Details

Total monthly income.................... 1252

Monthly Expense Details
otal monthly expenses.................. 666

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
halifax credit card............514.......10........0
egg credit card................4400......90........0
halifax personal loan..........8000......162.......15
Total unsecured debts..........12914.....262.......-

Monthly Budget Summary
Total monthly income.................... 1,252
Expenses (including HP & secured debts). 666
Available for debt repayments........... 586
Monthly UNsecured debt repayments....... 262
Amount left after debt repayments....... 324
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,914
Net Assets.............................. -10,914

I suspect that your spending is a bit out of control. Not wild, just you don't have an overview. Keep a spending diary and find out where it is going. If you did have 324/month surplus, you would not be worried about 110/month pension and you would see your debts going down.

First step is the spending diary, find the truth of your money. You need to be consistent with your SoA - is it for you as an individual or for the household? If it is just for you, you need to be really clear about the dividing lines. How are your partners finances?

Finally, it may seem picky, but you really do need to find out the APR's you are paying. This is essential when you start paying back, in order to work out what to pay back first. It will also show whether you would be better off taxing your car annually rather than 6 monthly - 6 monthly has a horrendous APR.