How quickly can I (realistically) repay my debts?

theticketinspector

Hi there,

I have been looking at the forum for a while now and have been taking a few tips on board, although a lot doesn't apply as I pay my partner a fixed amount a month towards the household bills etc. Out of interest I recorded my spends for 5 months and have compiled an SOA based on the averages for those 5 months. Its not 100% accurate because things like birthdays all seem to have occured in those five months, and I may have missed out some costs that come in the summer.

Has anybody got any tips for how I can reduce what I spend? I seem to waste a lot of money on pointless things like cups of coffee and messes at work, eating out etc. enjoying a champagne lifestyle I can't afford.

Since I have compiled this list I have made big moves to reduce the amount of diesel I use - I catch the train to work as much as possible although it isn't possible to do away with the car completely, and I have cut back spending on my hobbies and books to nil by concentrating on free hobbies and using my local library.

I would really like to live more frugally. I'm not mad on the latest fashion, don't need expensive gadgets etc. but my money just seems to flitter away on nothing.

Thanks for any advice, here is my SOA:

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................ 1341.53
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1341.53

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 149
Rent.................................... 216
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 90.36
Clothing................................ 79.76
Petrol/diesel........................... 102.78
Road tax................................ 2.08
Car Insurance........................... 21.8
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14.4
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 49.26
Haircuts................................ 0
Entertainment........................... 34.12
Holiday................................. 230
Emergency fund.......................... 0
Furniture............................... 166
Books................................... 12.86
Eating Out.............................. 118
Hobbies................................. 57.83
Household............................... 15.54
Magazine Subscriptions.................. 13.95
Food at Work............................ 46.73
Stationery & Postage.................... 5.55
Total monthly expenses.................. 1451.02


Assets
Cash.................................... 500
House value (Gross)..................... 0
Shares and bonds........................ 500
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 10000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8500.....(149)......7.9
Total secured & HP debts...... 8500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Personal Loan..................6000......186.......8.7
Personal Loan..................1500......75........21.9
Total unsecured debts..........7500......261.......-


Monthly Budget Summary
Total monthly income.................... 1,341.53
Expenses (including HP & secured debts). 1,451.02
Available for debt repayments........... -109.49
Monthly UNsecured debt repayments....... 261
Amount short for making debt repayments. -370.49

Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -8,500
Total Unsecured debt.................... -7,500
Net Assets.............................. -6,000

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

barbiedoll

You've answered your own question really, haven't you? All that money frittered away on meals at work, clothes, magazines and books etc, etc....(been there, done that )

Seeing your monthly expenditure down in black and white is quite often an eye-opener, there's loads of leeway in your budget. A lot of people on here swear by keeping a spending diary. Write down everything that you spend money on each day. You will soon see where you can cut back. I assume that the book expenditure is a book club or something like that? Take a load of your old books into work and get your colleagues to do the same, you can all swap and it's also good for saving the planet as well as the pennies! You could also do the same with clothes, you've probably got lots of bits and pieces that you haven't worn more than once, if at all. Give up the magazines, get a free paper on the way to work or blag your colleagues mags, they all have the same articles in anyway, you're just paying for a load of glossy ads.

Get into the habit of doing packed lunches for work, there's loads of suggestions on the boards on here.

I know it's hard to get a grip with your finances, but once you get into the money-saving habit, it's a much better way to live your life. There's no shame in not spending loads on birthday and Christmas presents, most people are trying to cut back nowadays anyway. Open a savings account online, try to get into the habit of putting a bit away each month, even a small amount will make you feel better. And watching a balance build up each month is quite thrilling if you're usually in debt. Good luck with your aim, let us know how you get on!

bottleofred

Hi ticketinspector,

I'm no expert, but I'm going to guess that someone with more knowledge than me will provide advice such as cancelling the magazine subscription & cost of the books, bringing food into work such as sandwiches etc or a salad prepared from home which is much cheaper. The furniture amount? Are you paying something off every month? And to get rid of your debts quicker, they will probably also say you should not be going on holiday as £230 per month is an awful lot of money. The clothing amount could also be reduced. As I've said, I'm no expert, but some of the other guys on the forum will assist you shortly.

Good luck in getting everything sorted

Bottle of Red

Nitha

theticketinspector wrote: »

Hi there,

I have been looking at the forum for a while now and have been taking a few tips on board, although a lot doesn't apply as I pay my partner a fixed amount a month towards the household bills etc. Out of interest I recorded my spends for 5 months and have compiled an SOA based on the averages for those 5 months. Its not 100% accurate because things like birthdays all seem to have occured in those five months, and I may have missed out some costs that come in the summer.

Has anybody got any tips for how I can reduce what I spend? I seem to waste a lot of money on pointless things like cups of coffee and messes at work, eating out etc. enjoying a champagne lifestyle I can't afford.

Since I have compiled this list I have made big moves to reduce the amount of diesel I use - I catch the train to work as much as possible although it isn't possible to do away with the car completely, and I have cut back spending on my hobbies and books to nil by concentrating on free hobbies and using my local library.

I would really like to live more frugally. I'm not mad on the latest fashion, don't need expensive gadgets etc. but my money just seems to flitter away on nothing.

Thanks for any advice, here is my SOA:

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................ 1341.53
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1341.53

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 149
Rent.................................... 216
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 90.36
Clothing................................ 79.76 - You could save a fortune not buying clothes - I always ask family/friends for next vouchers for Xmas/Birthday and use them for clothes instead of buying with my salary
Petrol/diesel........................... 102.78
Road tax................................ 2.08
Car Insurance........................... 21.8
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14.4
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 49.26
Haircuts................................ 0
Entertainment........................... 34.12
Holiday................................. 230 - I assume this isn't every month - perhaps you could have a year without a holiday to save some money
Emergency fund.......................... 0
Furniture............................... 166 - again is this really every month? No more new furniture
Books................................... 12.86 - library
Eating Out.............................. 118 - wow - that's a lot. Eat in you'll save a fortune
Hobbies................................. 57.83 - which hobbies? Sound alot
Household............................... 15.54
Magazine Subscriptions.................. 13.95 - cancel and use the internet
Food at Work............................ 46.73 - packed lunch
Stationery & Postage.................... 5.55
Total monthly expenses.................. 1451.02


Assets
Cash.................................... 500
House value (Gross)..................... 0
Shares and bonds........................ 500
Car(s).................................. 9000
Other assets............................ 0
Total Assets............................ 10000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 8500.....(149)......7.9
Total secured & HP debts...... 8500......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Personal Loan..................6000......186.......8.7
Personal Loan..................1500......75........21.9
Total unsecured debts..........7500......261.......-


Monthly Budget Summary
Total monthly income.................... 1,341.53
Expenses (including HP & secured debts). 1,451.02
Available for debt repayments........... -109.49
Monthly UNsecured debt repayments....... 261
Amount short for making debt repayments. -370.49

Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -8,500
Total Unsecured debt.................... -7,500
Net Assets.............................. -6,000

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

Some tips to reduce your outgoings here - if you want to really make substantial payments you do need to make sacrifices

theticketinspector

Thanks for your replies. Its really shocked me to see everything in black and white as barbiedoll says. Things like the furniture and holiday amounts are a bit anomolous as I have booked two rather expensive holidays this year. Knowing what I know now, I would probably not have booked the second one but the flights and motorhome rental have been paid for - I will just have to be careful how much spending I do whilst there. Furniture was also a one off that probably won't be repeated for a while.

I think the way forward is to try and cut all the little things out - the hobbies, mags and especially eating out - its amazing how a takeaway or two a week adds up.

Lots to ponder. I just hope I have the willpower to cut back.

Thanks,

Mark