40 and Foolish!

NewLeaf_2

.... sticks toe in some remarkably hot water! :eek:

I always read these diaries and now finally am doing one for myself & OH. Just did a SOA and for 2 high earners what we have to show for it is absolutely shocking, so here we go on a mission to get rid of the debt and save like there is no tomorrow. Just as an FYI in case anyone reads this and wonders why there are 2 cars accounted for and £0 in petrol, it is because my company pays for the petrol. OK... deep breath and:
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 4300
Partners monthly income after tax....... 6800
Benefits................................ 0
Other income............................ 1500
Total monthly income.................... 12600
Monthly Expense Details
Mortgage................................ 1600
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 95
Electricity............................. 85
Gas..................................... 60
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 30
Mobile phone............................ 60
TV Licence.............................. 11
Satellite/Cable TV...................... 42
Internet Services....................... 30
Groceries etc. ......................... 270
Clothing................................ 100
Petrol/diesel........................... 0
Road tax................................ 30
Car Insurance........................... 110
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 200
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 50
Pet insurance/vet bills................. 35
Buildings insurance..................... 60
Contents insurance...................... 60
Life assurance ......................... 11
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 190
Emergency fund.......................... 170
jadwiga................................. 756
Total monthly expenses.................. 4255

Assets
Cash.................................... 9000
House value (Gross)..................... 475000
Shares and bonds........................ 70000
Car(s).................................. 3500
Other assets............................ 8000
Total Assets............................ 565500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 280000...(1600).....1.75
Total secured & HP debts...... 280000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
egg............................12700.....321.......21.07
natwest1.......................4200......102.......17.8
natwest2.......................6700......140.......17.8
kitchen........................1900......75........0
boiler.........................1000......28........0
mbna...........................1400......60........20.5
tesco..........................5600......88........16.7
Total unsecured debts..........33500.....814.......-

Monthly Budget Summary
Total monthly income.................... 12,600
Expenses (including HP & secured debts). 4,255
Available for debt repayments........... 8,345
Monthly UNsecured debt repayments....... 814
Amount left after debt repayments....... 7,531
Personal Balance Sheet Summary
Total assets (things you own)........... 565,500
Total HP & Secured debt................. -280,000
Total Unsecured debt.................... -33,500
Net Assets.............................. 252,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

NewLeaf_2

Also I do make extra payments on our cc cards now. Think the way to go might be to pay off the smaller debts in full before xmas and then power through the egg? or do the egg first? suggestions welcome x

If_My_Pennies_Were_Pounds

I'm no expert here, in fact I'm sure some much more experienced people will be along shortly to help you out...

If your figures are correct then you should have £7,531 left to play with each month, what are you doing with that???

Nixxx

If you really have £7,531 left then you should be able to clear your debts in just over 4 months.
Personally, I would get rid of you mbna debt first, as its the highest apr small debt.

NewLeaf_2

I know !! My partner just had a 42% salary increase with a new job that was started in September. I need to start writing down everything we spend

NewLeaf_2

I am ashamed!:(

If_My_Pennies_Were_Pounds

Well then like Nixxx suggested, first point of call is that mbna, no need for such a small figure with such a high apr!

And lucky partner with that increase!

pjcox2005

I know people like an emergency fund but I would use the 9k cash to pay off the higher debts. Assuming a 15% difference in rates between the interest charges and what you can make in a savings account (that's being generous) you'd pay an extra £1,350 over the course of the year.

With big regular wages coming in there shouldn't be something you couldn't pay out of salary (i.e. one offs like a boiler breaking).

So get rid of the debts first then build your savings back up.

pjcox2005

In fact, looking at it again why aren't you cashing in your shares and bonds (well at least some) to clear debts. I'd be very surprised in the current market if they were making a return of 21%.

If_My_Pennies_Were_Pounds

I'm assuming you haven't actually had a pay with your partner's increase yet then?

NewLeaf_2

ok good idea. I will pay off the mbna.

Not that I am making excuses for such a ridiculous amount to cc card debt but we did pay off 2 cars this year and paid 20k down on the kitchen (in cash)