My SOA, Please kick me up a**!

lucewoman

Hi There,

I'm a very unorganised lady, haven't worked for 2 years due to bringing up 2 small boys, have allowed finances to slip into free fall......

I really want to get on top of the financial mess I've created and sort out the credit nightmare, please help!


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................ 0
Partners monthly income after tax....... 1300
Benefits................................ 385
Other income............................ 175
Total monthly income.................... 1860
Monthly Expense Details
Mortgage................................ 385
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 101
Electricity............................. 65
Gas..................................... 40
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12.37
Satellite/Cable TV...................... 101
Internet Services....................... 0
Groceries etc. ......................... 600
Clothing................................ 15
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 27
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 40
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1679.37

Assets
Cash.................................... 1000
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 1600
Other assets............................ 0
Total Assets............................ 82600

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(385)......NaN
Total secured & HP debts...... 0.........-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
virgin card....................2300......20........0
citi...........................300.......5.........15
overdraft......................4300......60........10
next...........................500.......50........29
Total unsecured debts..........7400......135.......-

Monthly Budget Summary
Total monthly income.................... 1,860
Expenses (including HP & secured debts). 1,679.37
Available for debt repayments........... 180.63
Monthly UNsecured debt repayments....... 135
Amount left after debt repayments....... 45.63
Personal Balance Sheet Summary
Total assets (things you own)........... 82,600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,400
Net Assets.............................. 75,200

Malky

Obvious cutbacks are the groceries and Sat TV

lindann_2

do you pay for gas and electric both, on line fuel, duo, can save money, no paper bills, eon do a budject scheme they add up 12 months usage, then divided they debit that amount out of the bank... they have price cap too, you can do a uswitch.com, to see which company is better for you. If you get in credit the return minus £5 to your bank.. The price you pay will be fixed yearly unless you use a lot, they will up it, so you will not go in the red... l see you pay lot on groceries, it is quite high, could you knock even £50.00, and put this to your debts specially your overdraft if you use it, or the highest debt you got, or add it too medical and emerency fund, hope this helps best of luck

Tixy

Hi

lucewoman wrote: »

Hi There,

I'm a very unorganised lady, haven't worked for 2 years due to bringing up 2 small boys, have allowed finances to slip into free fall......

I really want to get on top of the financial mess I've created and sort out the credit nightmare, please help!


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................ 0
Partners monthly income after tax....... 1300
Benefits................................ 385
Other income............................ 175
Total monthly income.................... 1860
Monthly Expense Details
Mortgage................................ 385
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 101
Electricity............................. 65 Looks pretty high, shop around for the cheapest supplier and the best deal (usually the online paperless one)
Gas..................................... 40
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12.37
Satellite/Cable TV...................... 101 reduce down significantly to a low package or cancel altogether
Internet Services....................... 0
Groceries etc. ......................... 600 For 5 of you aim for £300. As this is a lot less than you currently spend try reducing by £100 a month a first. Lots of tips on the old style board and try the drop a brand downshift challenge and tips
Clothing................................ 15
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 40
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 40 What are these in relation to?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 27 Have you shopped around for this (assume it is both B&C?)
Contents insurance...................... 0
Life assurance ......................... 20
Other insurance......................... 40 what is this? is it a competative deal?
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1679.37

Assets
Cash.................................... 1000 What is this for? you could pay off next with half of this.
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 1600
Other assets............................ 0
Total Assets............................ 82600

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(385)......NaN What is the balane and APR?
Total secured & HP debts...... 0.........-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
virgin card....................2300......20........0
citi...........................300.......5.........15
overdraft......................4300......60........10
next...........................500.......50........29 Pay this off first as it costs the most
Total unsecured debts..........7400......135.......-

Monthly Budget Summary
Total monthly income.................... 1,860
Expenses (including HP & secured debts). 1,679.37
Available for debt repayments........... 180.63
Monthly UNsecured debt repayments....... 135
Amount left after debt repayments....... 45.63 Whilst you do show a surplus there are definitely areas you can cut back a little or a lot (depending on how soon you want to get your debts clear).
Personal Balance Sheet Summary
Total assets (things you own)........... 82,600
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,400
Net Assets.............................. 75,200

Hope some of these thoughts held, I am sure there is scope for quite a few changes without cutting out all luxuries.

lucewoman

Thanks for your replies, am going to get on top of some of the suggestions today. I'd happily cancel the satellite TV package (includes broadband and phone deal) but OH refuses as sport on TV (particularly American football, season starts soon) is his only luxury.
Grocery shopping has always been my downfall, and believe it or not (not, I'm guessing!) it's all just healthy fresh food, I make everything myself from scratch and we don't drink. I will make some savings by cutting down on good quality meat (hate buying cheap meat) and buying more own brands,no fresh veg but reducing the spend by half would be extremely difficult, I'll try my best though.

The £1,000 cash is not available yet, it's a savings plan I'm cashing in, I was waiting for the cheque, but because my signature has changed since I opened the account I had to send my driving licence off! What a pain.

The main issue, as I'm sure you can see, is poor organisation, haphazard spending. I'm not a 'spender' day to day, all our clothes are home made or second hand, I don't like having lots of 'things' but I have been guilty of trying to spend my way out of problems. Now I want to save my way out of them!

Here goes nothing...

happycamel_2

Hi Lucy,

I think you're right about the groceries being your downfall. You can definitely cut back here but still have nice things. As Tixy says, the old style board will help.

First of all though I think you need to do some meal planning and list writing. Commmit to only going grocery shopping once a week. Write a list and if it isn't on the list, don't buy it! If you aren't working then you probably have time to do more home made stuff, get braising steak and slow cook it rather than expensive cuts of beef. Make your own biscuits and cakes, the kids will love helping. By meat when it's on offer and freeze it. Bulk it out with more vegetables (don't cut down on these but try to buy them in season or on offer). So if you're making a curry with a cooking sauce add onions, a sliced pepper, mushrooms, frozen spinach, chickpeas as well as a couple of cooked chicken breasts and you'll double the number of servings! If necessary, take cash and a calculator so you can't over spend!

Good luck and concentrate on those expensive debts first.

The_Moo

Once your savings plan is cashed in you could clear Next and Citi in full - then cancel them so no risk of re-spending.

If you can chip away at the OD, make sure you reduce the amount available so you can't run it up again - when I was paying off my OD I asked the bank each month to reduce it.

I hear you about not buying poor quality meat, I would never buy 'cheap' meat either but what about buying cheaper cuts of good quality meat? For example free range chicken legs/thighs are so much cheaper than breast and have better flavour. Stewing steak is fantastic slow cooked or casseroled. Non-meat meals cooked from scratch can be incredibly good value - I make a red lentil and tomato soup that costs next to nothing and is delicious and filling.

Lots of own brand stuff is great value - Sainsbos tinned tomatoes are identical IMO and the 'basics' fruit and veg is usually good too - my top picks are the basics peppers, onions and bananas. (the basics bananas are fairtrade too!) Shops like LIDL or Aldi are good for excellent value vegetables, if you have them nearby.

You car insurance seems quite high, can you try the comparison sites at renewal?

Good luck and well done for tackling it now :-)

lucewoman

I have just changed car insurer, but didn't get a much better deal. I have 8 years no claims but didn't pay to protect it. I opt for fully comp, maybe this is a mistake? Over £400 for a 1.5 7 year old car seems ludicrous to me, but none of the quotes came in under that. I wish I hadn't switched insurer, I have ended up with a worse deal! You live and learn!

This morning I have also switched to e.on for gas and electric, should save £280 according to the comparison.

Thanks for the great grocery shopping tips, I do my shop online because one of my son's has behaviour problems and it's impossible to shop with him. I think it's time to start shopping in the evenings, that way i won't miss out on bargains, Aldi is next to tesco so it will be easy to mix and match, also I only live a 10 min walk from town so I can check out the prices of certain food. It should be easier once my middle son starts school (Sept) shopping will be less of a battle!

Thanks for all your support, I already feel less 'useless'