Don't want to 'go it alone' anymore!

AllieBallie

Hey everyone,

I joined the forum just the other day after about 8 months of reading posts (everyone seems to say that so I'm glad I'm not the only one!) and attempting to learn everything money related. I was in a really bad place when I first found the forum owing a lot more and having a lot less coming in each month...not to mention having a lot less "left over" at the end of the month.

I had about £12,000 worth of debt last year and I've been managing to chip away at it for the last 6 months or so and now it's down to about £8,000 (hence the title of the thread - I've cleared a small bit of debt on my own but now need a bit more support). I cleared some debt by moving home to my parents - this is also why it looks like I pay no utilities as my parents know my financial situation so just take £250 to cover what i use (electricity/gas/water) and I pay for my own food. I am extremely grateful that I had this option (and that they were willing to take me back) as I know it's not an option for everyone, it's not fun living at home after being independent for so long but it's saving me money which I didn't have before (i.e. it would have come from my overdraft but I've cleared that now).

Now I need some help and advice so I can get rid of the rest of my debts, the £161 I have left over used to go on my CC and OD but now the OD is cleared (yay!) I plan on putting it all on the CC to clear it as it has the highest APR until that's cleared too. My OH is fab and doesn't expect the money any time soon, although ideally I'd like to be able to pay it back sooner rather than later so it's not hanging over my head.

The only other thing that I'll say is that I need the car in order to get to work as there are no buses and my work is 25miles away so a bit too far to cycle every day! I sold my old car and bought my current one as it was more economical and cheaper to run in general.

The £1000 cash is in a fixed bond type thing which I don't have access to for another 2 years - it was inheritance money which was locked away so I didn't spend it whilst I was at Uni, I didn't know whether to include it or not but I thought I'd put it in. I half thought that I could keep this saved here for 2 more years then once it matures maybe I could pay off the loan as I don't think Tesco allow overpayments? Please correct me if I'm wrong!!

There is no overtime at work due to budget cuts however I am looking for part time evening work as well as a job relating to my degree which would pay more, nothing promising so far but I'll always be looking!

I know my debt isn't as large as some people's which is why it's taken until now to post but I've got to the stage that I don't think there's any way I can reduce it faster or cut back any more. I'm also concerned that with this "extra" £160 a month (since OD is paid off) I'll think of as free money and fritter it away but I'm not sure how to prevent this (no amount of saying to myself seems to work!)

Anyway, I've added my SOA below, not sure if I filled it in correctly but if anyone can help that would be great. All advice is welcome and I'll be reading it all thoroughly!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 900
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 900

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 10
Petrol/diesel........................... 50
Road tax................................ 15
Car Insurance........................... 45
Car maintenance (including MOT)......... 10
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..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 25
Holiday................................. 5
Emergency fund.......................... 10
Total monthly expenses.................. 580


Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 4000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
tesco loan.....................7153......149.......8.9
CC.............................226.5.....10........16.9
Bank of OH.....................600.......0.........0
Total unsecured debts..........7979.5....159.......-


Monthly Budget Summary
Total monthly income.................... 900
Expenses (including HP & secured debts). 580
Available for debt repayments........... 320
Monthly UNsecured debt repayments....... 159
Amount left after debt repayments....... 161

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,979.5
Net Assets.............................. -3,979.5

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


Thanks,

Allie

Numpty_Monkey

AllieBallie wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 900
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 900

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35 Do you use all the "freebie" stuff, ask to reduce your tarrff if possible
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 10
Petrol/diesel........................... 50
Road tax................................ 15
Car Insurance........................... 45 check out comparrison sites and cashback sites for any insurance
Car maintenance (including MOT)......... 10
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..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 25
Holiday................................. 5
Emergency fund.......................... 10
Total monthly expenses.................. 580


Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 4000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
tesco loan.....................7153......149.......8.9
CC.............................226.5.....10........16.9
Bank of OH.....................600.......0.........0
Total unsecured debts..........7979.5....159.......-


Monthly Budget Summary
Total monthly income.................... 900
Expenses (including HP & secured debts). 580
Available for debt repayments........... 320
Monthly UNsecured debt repayments....... 159
Amount left after debt repayments....... 161

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,979.5
Net Assets.............................. -3,979.5

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


Thanks,

Allie

Hello again Allie:hello:
Well done for posting your SOA:T

I've left a few coments,
How much have you in your Emergency fund?
Pay whatever you can to the credit Card

Will the loan allow overpayments? is that the balance you owe? and how many payments have you got left;)

It will probably make you feel better to pay OH off sooner rather than later;)
My sugguestions
Use the spare money (if you ain't got it keep a spending diary)
1, pay Credit Card
2, Pay OH
3, if not allowed overpayments on loan open an ISA and save untill you can pay it off early:cool:


HTH
:A

LuckyBiscuit

I was just wondering do u need contents if you are living with your parents, do they not have it??

AllieBallie

Thanks Numpty,

I reduced my mobile bill by £10 in December by dropping a tariff but I think I'll try again tomorrow (contract doesn't run out until October) - worst they can say is no after all! I use it a lot as I don't want to use my parents landline all the time but I never go over my contracted minutes if that makes sense. Will put this on my to do list for tomorrow

Car insurance is due to be renewed in a couple of months so will use comparison sites like before but I've never used a cashback site so I'll give them a go. Money in my pocket is better than in theirs!

The emergency fund has £50 in it so far, I was saving it in case the wheels on the car fell off or something similar but I realise that £50 ain't gonna go far...though neither will the car I suppose!!

I'm not sure about the overpayments, I have a horrible feeling that I read that the loan doesn't allow them but I need to phone them in the morning anyway to check the balance so I'll ask then. I have 45 monthly payments left unfortunately (i know, it's rubbish!). The balance on the SOA is what I owe on the loan - I'll double check tomorrow though!

I need to do a spending diary as I really dont think i have that sort of money at the end of the month - can it be a good ol' fashioned pen and paper one?!

I'll have to look into an ISA (never had money so never looked into savings and stuff before) and if I'm honest I don't know anything about them.:o:o

AllieBallie

TMVen wrote: »

I was just wondering do u need contents if you are living with your parents, do they not have it??

Hello :wave:

All my 'stuff' is covered under their insurance policy, the one I have is a policy for my violin which isn't covered under their insurance or normal insurance policies.

Edit - meant to also say Thanks for commenting

Numpty_Monkey

A god old pen and paper spending diary is probably the best way:eek:
you don't need to plug it in or charge it:p

Re; Loan, my guess is that all the intrest has been added (front loaded) and what you have is the full term ballance, If you can pay it off in full early they should reduce the amount;)

Watch out for Martin's e-mail there is always something about the best ISA's(one day I'll have one)
http://www.moneysavingexpert.com/banking/

Checkout comparrison sites and cashback sites for your violin;):cool:

Nargleblast

Hello AllieBallie and welcome. As you have already visited the notice to newcomers thread, you will be aware that most people on here are nice people , some in similiar dire straits financially to yourself, so you are not alone. Your SOA states you have £161 a month left after paying all bills and debt payments. As has been suggested, you need to keep a record of every single penny you spend every day for a month. Record everything under different categories - food, newspapers and magazines, postage stamps, bus fares, whatever. At the end of a month you will see just where this money is going, and you will be able to stop and think just how much of that expenditure was really necessary. I suggest you get Alvin Hall's book "Your money or your life" out of the library and do some reading, it will inspire you to change your spending habits and help you with suggestions for managing your finances. Martin Lewis has also written one or two useful books in that line too, very inspirational and handy for hints and tips. Have a lurk round one or two of the different forums on this site, you will always find new ways to do things. You will get rid of that debt one day, how soon depends on how hard you are prepared to work at it. There are plenty of challenges to join in with (the no spend day challenge, for example). Good luck.

AllieBallie

Thanks Nargle,

I'll go hunt out those books from the library - anything will help! I'm going to start a spending diary from today onwards to see where my money goes, it'll be daft things like coffees and magazines etc. I'm hoping that seeing how much I'm "wasting" will spur me on a bit more.

I'm also going to try this No spending day challenge, i think iv seen the post (if it's the same one with elephants and bananas!!) so I'll go sign up for June.

josephine82

Hi Allie:wave:

I think you are doing well, you should give yourself a pat on the back for getting so far!

I would second the spending diary- or why not look at your bank statements for the last few months and see where its going?

If you have that £161 left then I would up the payment to the credit card, and just hang in there until it is paid off.

Then when it is paid off start paying OH off and maybe start putting a little away to build up to pay off the Tesco loan?

Just chip away at it, slowly, but surely. You can do it!

Things that helped me:

no spend on work lunches (bought from grocery budget)
No spend day challenges
payment a day challenge

You can do it!

NellyM029

Hey allieballie,

Welcome and well done for your work so far. I've contemplated moving in with the parents to help with the bills, but at 32 I feel too old to do it and may parenst seem too happy being on ther own again after their six kids all finally left xxx

LuckyBiscuit

Nargleblast wrote: »

i suggest you get Alvin Hall's book "Your money or your life" out of the library and do some reading, it will inspire you to change your spending habits and help you with suggestions for managing your finances. Martin Lewis has also written one or two useful books in that line too.

Thanks for that, ive just ordered them from e-bay 99p Yah!!!:j