In a massive mess

RoxieW

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 850
Benefits................................ 500
Other income............................ 0
Total monthly income.................... 3350

Monthly Expense Details
Mortgage................................ 360
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 40
Gas..................................... 45
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 30
Mobile phone............................ 30
TV Licence.............................. 14
Satellite/Cable TV...................... 35
Internet Services....................... 10
Groceries etc. ......................... 800
Clothing................................ 500
Petrol/diesel........................... 200
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 150
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 7
Other insurance......................... 16
Presents (birthday, christmas etc)...... 300
Haircuts................................ 50
Entertainment........................... 800
Holiday................................. 300
Emergency fund.......................... 0
Total monthly expenses.................. 3860


Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 5000
Total Assets............................ 145000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(360)......0.5
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
overdraft......................3000......0.........25
Total unsecured debts..........3000......0.........-


Monthly Budget Summary
Total monthly income.................... 3,350
Expenses (including HP & secured debts). 3,860
Available for debt repayments........... -510
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -510

Personal Balance Sheet Summary
Total assets (things you own)........... 145,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,000
Net Assets.............................. 142,000

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

obsessedwithhamsters

I agree with plum... £200.00 a week would be luxurious to me. I manage on less than a hundred with three kids and that has to cover pretty much everything expect household bills and credit debts. If you sit down and do a planner of what your incoming and outgoing costs are you can see where you money is going. As I've said before, it is boring and its hard to get away from the high you get from buying stuff but needs must and its definitely worth it if it means you can sleep soundly again.

RAS

Roxie

is this what you spent last month?

RoxieW

Above is as we are spending now - guestimated for some of it. Obv there is a £500 overspend which is why we are in this mess.
I am so ashamed that our mort is such a low repayment and we dont have loan repayments etc and yet we cant stick within a good income. Very ashamed.
I'm now going to do a budget of what I want it to be.

richardvc

Hi RoxieW - well your husband sounds like he's in denial.

The fact of the matter is that it isn't important now how created the debt but how you go about repaying it.

In the big scheme of things £3000 isn't that much so it is good that you have jumped on it before it became a lot more.

You and him need to have a mature chat about it, not an argument - it's too late for that.

You need to both manage your money - what you've got coming in and what's going out.

After filling in your SOA the clever ones here will give you lots of ways to cut down on your outgoings without cutting back on your lifestyle - then the money saved can go towards your debt.

Obviously you will need to make some sacrifices BUT living without, for instance, takeways won't kill you. There are a million and one ways to save ie meal planning, etc etc and in no time you wll not only have paid off your debts but changed how you manage money for the rest of your life.

RoxieW

RAS - yes roughly. Though I missed some things - off the top of my head - charity donations £30 sons violin £25 gift for boys teachers £15 birthday gift for sister in law £100 - that's just what springs to mind.

obsessedwithhamsters

just looked at your personal balance sheet. £800 a month on food??? £500 a month on clothes?? £500.00 a month on entertaining!?? If you just cut these costs by half you'd be fine. Why spend so much each month!??

RoxieW

obsessedwithhamsters - yes my sons clothes dont fit in their drawers either. neither do mine.
I am going to ebay some stuff. just put a bag up that I bought recently and have never used.
thank you everyone for the help so far. I need it.

richardvc

Where's all the car stuff ? Insurance, MOT/Repairs etc - really need to get that in there.

Entertainment can be slashed and so can clothing. Once you get this right paying off £3k should be a doddle ! Have you made any savings whilst paying such a low mortgage rate ?

RAS

RoxieW wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 850
Benefits................................ 500
Other income............................ 0
Total monthly income.................... 3350

Monthly Expense Details
Mortgage................................ 360 - wow that is really low.
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 40
Gas..................................... 45
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 30
Mobile phone............................ 30
TV Licence.............................. 14
Satellite/Cable TV...................... 35
Internet Services....................... 10
Groceries etc. ......................... 800 - you need to start by halving this. make it £100 per week max.
Clothing................................ 500 - if you have been buying this much, then you have a lot you can sell. Anything you can take back? Aim for £50 per month
Petrol/diesel........................... 200
Road tax................................ 0 - you need this unless it is a work car
Car Insurance........................... 0 - ditto
Car maintenance (including MOT)......... 0 - ditto
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 150 you need to reduce this.
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 7
Other insurance......................... 16
Presents (birthday, christmas etc)...... 300 - this is silly. Cut this back to £50 and start to reduce what you spend on presents
Haircuts................................ 50
Entertainment........................... 800 - you and OH need to have a cash allowance each month and thereafter? £50 a week each would be generous.
Holiday................................. 300 - is this booked? You mentioned camping? Work out what you really need and reduce this - perhaps £100
Emergency fund.......................... 0
Total monthly expenses.................. 3860


Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 5000
Total Assets............................ 145000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(360)......0.5
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
overdraft......................3000......0.........25
Total unsecured debts..........3000......0.........-


Monthly Budget Summary
Total monthly income.................... 3,350
Expenses (including HP & secured debts). 3,860
Available for debt repayments........... -510
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -510

Personal Balance Sheet Summary
Total assets (things you own)........... 145,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,000
Net Assets.............................. 142,000

You need to reduce your spends by £500 just to break even, then some to cover the OD, perhaps £300 per month over the next 10 months.

Then you need to use the OD money to build a buffer - over the next 18 months.