So, it begins...

msArcher

I think the light finally came on last night...

Hi, I'm msArcher and I have a money problem...

I have debts of around 80k :eek: - mostly mortgage and some credit card - exactly how much I'm not sure. Mortgage was part for the new garden (first place I looked at had a wonderful garden - I bought it and found it had a house attached :rotfl: ), part for paying off some loans, and part for money to spend on the house (read garden:rolleyes:).

I thought I was moneywise and careful with my money - but things seem to have fallen apart a bit of late. I think I've lost track of things and need to get back on track.

Anyway - new month, so I thought I'd start trying to get hold of things...

1) Find out what debt I do have!
2) Figure out where it has come from.
3) Sort out where my money goes each month (I don't know!)
4) Get home computer set up again as that's where all the details are...

Smashing

Hey, congrats on 'seeing the light'
While you're getting your SOA together, may I suggest keeping a spending diary as a start to see where your money is going and where you could cut back. You may also be a bit less inclined to splash the cash if you know you have to write down and be accountable for your spending.

DontDoDebtKids

Welcome to being a DFW - looking forward to seeing your SOA to see if we can help.

msArcher

Spending diary is ready - first entry? Spending diary! :rolleyes:

SOA may take a while - paperwork and computer are packed away in the spare bedroom whilst I decorate the study - bought the stuff in the January sales, started in March, still haven't finished the ceiling Still weather looks bad enough not to be able to play in the garden this weekend - so will crack on instead!

msArcher

Well... I've decided to do it the easy way - and go off the last bank statement I've got for most things, and guesstimates for the rest!

Income

Me: 1480
Lodger: 230 - 200 as mortgage overpayments, 30 as bills contribution

So, in effect 1510.

Outgoings:

Mortgage: 500 (slight overpayment, should be 490ish)
Council tax: 95
Gas: 65
Electric: 45
Water: 45
TV License: 11
Phone: 12
Mobile: 15
House Insurance: 27
Car: 100 (tax, insurance & servicing)
Caravan: 40 (insurance & service)
Appliance insurance: 25
Food: 180
Diesel: 120 average
Cash spending: 90 (20 per week)
Dentist: 18
Life insurance: 4
CC: 150
House upkeep: 10

Total out: 1554

Debts

Mortgage: ~77k - 5.5% variable (flexible with offset - have ~3k of overpayments from lodger, and ~2k5 for house improvements)
Credit card: ~3k - 0% - minimums about £70ish (I pay double atm)

I was doing fine till about March - since then I seem to have gone from having a healthy current account balance, to being almost overdrawn and 3k on credit cards. I know the debt isn't that much - but I've never been in debt before (apart from a loan for the caravan I knew I could pay off from an inheritance) - and want to stop it before it gets worse...

Any comments are more than welcome. I'll try to take them as helpful...

climbgirl

The first things that jump out at me - your gas, electric and water bills all seem very high. Are you with the cheapest suppliers? Also, how many people does the food cover? £180 a month for 1 person is very high! I feed myself on £80 a month and eat very well.

Also, £18 a month on the dentist. Do you really spend that much each month?

climbgirl

Also, I wouldn't worry about overpaying the mortgage until your credit card debt is gone. I bet the APR on the card is higher than the mortgage interest....

msArcher

Gas is too high - but they won't (wouldn't last time I got a bill anyway) accept a lower amount until they have a 'validated' meter reading - my summer usage seems to be too low for them to believe.

Electirc - covers arrears because they didn't set up my direct debit when I switched in April - so having to pay for current usage and arrears. Also, lodger seems to like leaving things on.

Water does seem high - I paid £9pm at the last place, will have to check that out once I've got access to the paperwork again.

£180 covered me and gf - though that should go down as she's moved away to a new job. Not quite sure how it gets to be that much though - I don't think I buy that much...

Dentist - no NHS dentists round here - I've had a lot of trouble with teeth of late, 5 root canals in past 2 years (at about £100 each) - and this covers me for anything.

CC is 0% - got it for stoozing on the mortgage, then realised that I was running up bills and couldn't pay without going OD.

tyllwyd

One thing is pretty obvious, it doesn't make sense to overpay on mortgage and credit cards unless your budget is balancing.

I'm not a fan of appliance insurance - what are you insuring? If you saved the £25 instead, it would build up quite quickly so you could replace things when and if you needed to.

What does house upkeep mean?

If money is tight, could you take the caravan off the road for a year?

msArcher

The appliance insurance is a self-insurance thing - I save the money each month, then spend it as nec. - already spent £150 this year getting heating and washing machine fixed.

House upkeep is on things that break in the house - energy saving lightbulbs for the normal ones, replacement light switches (3 have died so far this year!), little things like that...

Until I did this, I thought I was balancing!

Caravan - needs to be serviced to maintain warranty, and insured against theft...

vivaladiva

msArcher wrote:

Dentist - no NHS dentists round here - I've had a lot of trouble with teeth of late, 5 root canals in past 2 years (at about £100 each) - and this covers me for anything.

That sounds like an NHS price to me my DH just had one cost £350. :eek: :eek: Do you mean that you pay a dental insurance plan?