My SOA

Trebor73

New to this - but here goes,

(Please excuse the waffle - but it helps)
After seventeen years of being in debt I'm just getting my head round things. It's clear from just reading the this forum this evening that my financial problems are bad - but nowhere near as bad as they could be.

I think my big fear is that I will have to stay in for the rest of my life and never have enough money to do anything - ever again until I'm ninety.

I've realised that this is not the case - and it's great to find somewhere were there are other people in the same situation as I. If I can provide any help to people here - that would be great.

So my SOA.

Income

£1775 per month

Outgoings

£665 mortgage
£325 loan (£32k)
£100 relative loan (£1k)
£125 food
£100 cash
£150 household
£41 gym membership (going in Dec)
£100 car
£25 landline
£5 mobile
£45 saving - (I'm new to this!)
£75 one offs - (glasses/tyres/house insurance/car insurance etc.)

£1756

I've (clearly) rolled everything into one loan and I do not have any credit cards.

I've moved away from one of the banks and I'm now with A&L whom actually pay me interest on my money rather than charging me thousands of pounds in charges each year.

I realise that I've come a long way in just three months.

Long may it continue.

Your support and comments are appreciated and if I can help please ask.

Rob.

aimme13

hi, just had a quick peep at your soa.....cant see gas/electric/water on there or council tax and tv license??
and how many people is the food for??

oh and hello and welcome :-)

Trebor73

Hi Aimme13,

Those bills are in household.

Food is for one.

Rob.

roswell

If you can over pay the loan I would look into using the £45 savings as the interest on the loan will be higher than your savings.

livinginhope

Hi Rob,only quickly looked at your SOA,but everything looks OK to me,you are even managing to SAVE money,well done!
Just a couple of questions,is your relative charging you any interest on your loan? and how much more do you have to pay back?
Also you have rolled all your debts into one,is this a secured loan?
If you are finding that you are short of money at the end of the month,start a spending diary to see where the money is going.
Welcome to DFW

Trebor73

Hello Roswell,

Thanks for your tip.

The thing is I need to build up some cash for a rainy day (whenever that might be) Previously I would have pulled out a credit card - but don't have any now and have a very small overdraft facility.

I agree that the interest charged (compound) on the loan is more than I am going to get on the savings but the APR is 1.5% higher than the loan APR for one year - so I thought it worth signing up for that period of time.

Thanks again.

Rob.

aimme13

ah i see now, was wondering how you would have missed off so many bills :-)
have you looked on the OS board......£150 for one person can easily be cut down. My food bill is really low (it means i can have a cheap night out once a week:-) and when im in the supermarket its this thought alone that stops me from putting things i dont NEED in the trolley :-)

have you kept a spending diary? then you can see what the £100 cash is going on....this could perhaps be halfed and another £50 thrown at the debt??

Just thinking out loud here......im still working on the whole debt thing too:-) but dont worry im sure you wont have to stay in till your 90:-)

DrBenway

You mention having paid '000s in bank charges.

Have you read the article on"Reclaiming Unfair Bank Charges".

Success stories are here.

Trebor73

Hello Aimme13,

I shall look at reducing the food bill. Don't find this too easy at the moment. I must eat a lot :-)

The cash is for going out. I find it keeps me sane but I'm looking for new and fun things to do at small cost.

Thanks again.

Rob.

Trebor73

Hello Dr Benway,

Thanks for your reply. All the charges were documented and they were not (usually) down to exceeding overdraft or defaults.

I was paying £12 per month for an account and 15.9% per annum on a £5000 overdraft (which usually sat at about £4.5k dr at the end of each month). Over 4 - 5 years it really added up.

Thanks again.

Rob.