Hannah_10's debt-free-wannabe diary.

Hannah_10

Need to remember to take a tenner off the debt to my sister and another tenner off the rent arrears.

CITDFW

just wanted to say you sound like your doing really well, you seem very organized with your lists, hope things start to come together for you !

Hannah_10

Another £10 to sister.

Really must properly update this diary later!

Hannah_10

God I'm so avoidant, I'm sorry I owe three people a proper answer and that just seems like far too much hard work (sorry guys)... Leaving yet another note to say I'm about to go through my spending diary and get the results of writing everything down for 5 weeks. *Gulp*

There now, I've written it down, stop being such a coward Hannah and do it.

Hannah_10

Well folks, this is it. Five weeks of keeping a spending diary and this is what it revealed to me, I am aware it's not exactly optimal but at least it's as honest as I can make it and represents a 28-day month, please be gentle!

• Rent and council tax are at zero as these are paid by state benefits directly to the landlord and council and so I have no need to consider them.
• Water rates is at zero because I am very bad and have not paid them in ages.
• Some traditional categories have been broken down into smaller subdivisions instead. The blue ones would usually be "grocery" and the purple ones would usually be "pet".

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 855.4
Other income............................ 49.38
Total monthly income.................... 904.78

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council Tax............................. 0
Electricity............................. 30.58
Gas..................................... 20.78
Oil..................................... 0
Water Rates............................. 0
Telephone (land line)................... 26.14
Mobile Phone............................ 4.52
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15.65
Food.................................... 127.3
Ready To Eat Food, Meals Out and Snacks. 102.5
Toiletries.............................. 22.71
Cleaning and Household Products......... 20.99
Household Goods......................... 64.66
Clothing................................ 20.4
Petrol/Diesel........................... 41.68
Road Tax................................ 10.55
Car Insurance........................... 25.52
Car Maintenance (including MOT)......... 4.52
Car Parking............................. 5.33
Breakdown Cover......................... 5.49
Other Travel............................ 2.71
Childcare/Nursery....................... 0
Other Child Related Expenses............ 13.3
Medical (Prescriptions, Dentist etc).... 3
Pet Insurance/Vet Bills................. 10.16
Pet Equipment eg. Collars, Tags......... 5.56
Pet Food................................ 13.23
Buildings Insurance..................... 0
Contents Insurance...................... 10
Life Assurance ......................... 0
Other Insurance......................... 0
Presents (Birthday, Christmas etc)...... 40.57
Haircuts................................ 9.04
Entertainment........................... 22.37
Holiday................................. 6
Emergency Fund.......................... 12.65
Carer................................... 69.24
Charity Giving.......................... 27.62
Stationary and Postage.................. 15.89
Lottery................................. 4
Total monthly expenses.................. 809.17

Assets
Cash.................................... 220
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 650
Other assets............................ 0
Total Assets............................ 870

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Electricity Arrears............110.45....20........0
Gas Arrears....................599.03....0.........0
Water Arrears..................463.48....0.........0
Rent Arrears...................624.28....20........0
Bank of Sister.................280.......20........0
BISL (Car Insurance)...........249.03....0.........0
Aviva..........................105.12....0.........0
Moorcroft/Orange...............539.65....0.........0
Old Overdraft..................2268......0.........0
Total unsecured debts..........5239.04...60........-


Monthly Budget Summary
Total monthly income.................... 904.78
Expenses (including HP & secured debts). 814.66
Available for debt repayments........... 90.12
Monthly UNsecured debt repayments....... 60
Amount left after debt repayments....... 30.12

Personal Balance Sheet Summary
Total assets (things you own)........... 870
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,239.04
Net Assets.............................. -4,369.04


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

Right so there it is, at 3.22am, the final version of my SOA as accurate as I can make it at present. I'm off to bed!

Hannah_10

So, another twenty's gone to sister, ten to the landlord and eight pound ten's come off the electric. New totals looking like this...

Cleared...
[STRIKE]Council tax arrears £161.29[/STRIKE] Cleared
[STRIKE]Empire £131.00[/STRIKE] Cleared

Under control...
Electric arrears [STRIKE]£158.85[/STRIKE] Now £110.45
My Sister [STRIKE]£450[/STRIKE]* Now £280*
Yes Insurance (car) [STRIKE]£338.23[/STRIKE] Now £249.03
Rent arrears [STRIKE]£779.28[/STRIKE] Now £624.28

Not under control...
Barclays Bank £2268
Gas arrears £599.03
Moorcroft/Orange £539.65
Water arrears £463.58
Aviva £105.12

This makes a total original debt of £5994.03, of which I now have paid £755.89 (12.61%) and have £5238.14 (87.39%) remaining.

Hannah_10

Right, I've just paid off £249.03 owed to Yes Insurance for the car, with a £223.65 payment, saving me £25.83 across the rest of the year.

That means I need new totals...

Cleared...
[STRIKE]Council tax arrears £161.29[/STRIKE] Cleared
[STRIKE]Empire £131.00[/STRIKE] Cleared
Yes Insurance (car) [STRIKE]£338.23[/STRIKE] Cleared

Under control...
Electric arrears [STRIKE]£158.85[/STRIKE] Now £110.45
My Sister [STRIKE]£450[/STRIKE]* Now £280*
Rent arrears [STRIKE]£779.28[/STRIKE] Now £624.28

Not under control...
Barclays Bank £2268
Gas arrears £599.03
Moorcroft/Orange £539.65
Water arrears £463.58
Aviva £105.12

This makes a total original debt of £5994.03, of which I now have paid £1004.92 (16.77%) and have £4989.11 (83.23%) remaining.

Hannah_10

https://forums.moneysavingexpert.com/discussion/2664145

Just signed up to the clear one debt in 100 days challenge, mine is post no 100 on page five. The challenge runs from 1st September to 10th December. I signed up for the water arrears of £463.58.

I happen to have an appointment with a debt advisor at the start of September about this and I hope the result I get will be that South West Waters trust fund thing matches my payments pound for pound to clear them. As I'm using water all the time and still not agreed to pay it then this amount is liable to go up, I would think it to be between £500 and £600 when I check it again this week in readiness for that appointment.

So in actual fact the amount I have challenged myself to repay is somewhere unspecified between £250 and £600. Finding £180 extra a month if it's £600 would be a real struggle, but just about within the bounds of possibility. Finding the £75 if it's £250 would be a lot easier! Got to do it though, I want to be debt free and able to save!

Hannah_10

So this here is what happened to my SOA after it'd been MSE'd here
https://forums.moneysavingexpert.com/discussion/2671237

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 855.4
Other income............................ 49.38
Total monthly income.................... 904.78

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council Tax............................. 0
Electricity............................. 30.58
Gas..................................... 20.78
Oil..................................... 0
Water Rates............................. 0
Telephone (land line)................... 26.14 << Room to adjust, could be £25
Mobile Phone............................ 4.52
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15.65 << Check end of contract date a set up tart-alert, too high.
Food.................................... 127.3 << Could be lowered, try for £100 in the first instance.
Ready To Eat Food, Meals Out and Snacks. 102.5 << What! Set this to £20, a fiver a week.
Toiletries.............................. 22.71 << Too high, start using up the stockpiles and set budget at £20 here too to start.
Cleaning and Household Products......... 20.99 << There has got to be potential on this one, set to £16 initially.
Household Goods......................... 64.66 << just be careful, £60 limit from now on
Clothing................................ 20.4
Petrol/Diesel........................... 41.68 << Can be reduced, try to keep this to £35
Road Tax................................ 10.55
Car Insurance........................... 25.52 << Gone! Yay! Needs to appear in SOA, but in reality is gone.
Car Maintenance (including MOT)......... 4.52 << Will be higher than this after todays £16.06p in parts. No new estimate yet.
Car Parking............................. 5.33 << This is only a high-summer figure, out or season this ought by rights to be £3 (hospital parking) only.
Breakdown Cover......................... 5.49
Other Travel............................ 2.71
Childcare/Nursery....................... 0
Other Child Related Expenses............ 13.3
Medical (Prescriptions, Dentist etc).... 3
Pet Insurance/Vet Bills................. 10.16 << Make more use of the PDSA schemes, requires research, no estimate.
Pet Equipment eg. Collars, Tags......... 5.56
Pet Food................................ 13.23
Buildings Insurance..................... 0
Contents Insurance...................... 10
Life Assurance ......................... 0
Other Insurance......................... 0
Presents (Birthday, Christmas etc)...... 40.57 << Aiming for £30 here
Haircuts................................ 9.04 << If I don't want to compromise where I get it done I need to go less often for a dry cut (cheaper) instead.
Entertainment........................... 22.37 << Not high, but need to be making sure I have read the books and watched the DVDs before I buy any more. Cap at £25.
Holiday................................. 6
Emergency Fund.......................... 12.65
Carer................................... 69.24 << I think perhaps I could cut this back to £40, will try, experimentally only in the first instance.
Charity Giving.......................... 27.62 << Needs to be capped at £12
Stationary and Postage.................. 15.89 << Be aware of the need to reduce, sometimes awareness is enough.
Lottery................................. 4
Total monthly expenses.................. 809.17

Assets
Cash.................................... 220 << Now gone
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 650
Other assets............................ 0
Total Assets............................ 870

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Electricity Arrears............110.45....20........0
Gas Arrears....................599.03....0.........0
Water Arrears..................463.48....0.........0
Rent Arrears...................624.28....20........0
Bank of Sister.................280.......20........0
BISL (Car Insurance)...........249.03....0.........0 << Now paid
Aviva..........................105.12....0.........0
Moorcroft/Orange...............539.65....0.........0
Old Overdraft..................2268......0.........0
Total unsecured debts..........5239.04...60........- <<, Now under £5k (see my DFW diary for accurate figure)


Monthly Budget Summary
Total monthly income.................... 904.78
Expenses (including HP & secured debts). 814.66
Available for debt repayments........... 90.12 << If all new targets are met then this will become £295.85 :money:
Monthly UNsecured debt repayments....... 60
Amount left after debt repayments....... 30.12 << Ought to be none, as all spare money after SOA does go on debts.

So that's it, instead of having £90.12 to pay debts off with I think I ought to be able to up that to £295.85 ideally.

In reality no one's perfect and shaving £50 a week off my spending is not going to be in the slightest bit easy. In particular this dreadful habit I've developed of eating ready made food while out of the house is going to be hard to curb. I never did this when I had a family! The ready to eat and convenience foods figure should be zero. To be fair to myself I will allow myself a fiver a week so at least I can have a cafe cup of tea or a bar of chocolate sometimes. (Maybe even a Subway meal if I am very careful the rest of the week).

We shall see if I can keep it up!

If I can get a 28 month with £200 spare for debts (starting on Tuesday for ease of accounting) then I will be satisfied with that for an opener.

Tomorrow I shall sign up to some food spend challenges and maybe the no toiletries one too.

ankitadas

My Hi to all. I am newbie.:)