Newbie advice please

Billy_two_speakers

do you really need a land line ?

LillythePink

What portion of your mortgage is tied to the 10 year fixed? (as per your opening post)?

For the benefit of here, what do you actually spend on groceries per month?
How much is for laundry and what exactly is that for?

annibee

Theres already been a great deal of advice sorry but how old are your kids? If i missed the answer sorry!!!!

Can you perhaps change the haircuts - everyone at every 6 weeks is a bit much!!! my oh does his own, childminder does soms for free and I have about 2 a year lol. if you dont want to cut back that much maybe just leave it every 8 - 9 weeks small steps :P

The groceries is shocking tbh we spend too much and we spend 250 a month on me, my lo and my oh so 700 seems ridiculous.

Hope you can see a nicer way out than the bankruptcy route! Im sure you will be fine if you just learn to cut back a little more a month (and believe me it isnt easy lol)

good luck with everything x

DVardysShadow

sadmum wrote: »

Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................294.......22........0
Comet..........................565.......23........0
Barclay visa...................7423......170.......0
Santander cc...................4400......90........0
MBNA Virgin master.............8644......206.......0
Coop...........................381.......32........0
Additions Catalogue............758.......35........0
JDW catalogue..................892.......45........0
Barclay Master.................4719......95........0
Barclay visa...................3070......70........0
Total unsecured debts..........31146.....788.......-

Not enough info here, you need to provide APR's.

On your income, it looks doable to get your monthly income and outgoings into balance - but then you have to pick on one of these debts and see that off too. The APR's will help make the decision. The fact that you have a number of small debts means that if you can pay something off completely, you can free up money to pay off something else quite quickly.

ellesbellesxxx

I think you need to be more realistic - especially concerning Groceries. Take a look at the budget food ideas on here... you could cut down at least by 300 each month.
Def a good idea cutting down on haircuts - I only get mine done every 3 months and it's fine.
Although your cars are by no means your most expensive bill, do you Definitely need 2?
You could continue to pay off your underpayment for elec and shop around for gas and elec - have you come across Quidco? This is a great way of making money - I usually use a price comparison website, delete my cookies and then see if there is a deal on quidco.
You could save hundreds on telephone/net/tv package - do you NEED the TV package?
You could cut down a lot on clothes - ebay, charity shops etc - do you have anything you could put on ebay/amazon yourself? 50 pounds a month is 600 a year on presents etc - - fair enough you have children to buy for, but for other people could you make them presents until you are in a better situation?
I think an incentive to cut down is to look at your bills in terms of your debts - eg what you are spending on presents, would pretty much pay off your COMET and NEXT card. Your grocery bill for a month would pay off your ADDITIONS bill.
You need to be serious now...it is no use saying you will TRY to budget for less... you are living way beyond your means and need to get this sorted. Sorry to be harsh.

pennypusher

Hi, you have a huge amount to find each month simply to balance your books. If you are serious about breaking even then you need to consider every item of expenditure. If you carry on saying you can't do it for any less you are on the road to ruin. I would suggest you look at every item of expenditure and see if you can do anything to lower it.

Mortgage - go to a broker who specialises in 'whole of market' and check to see if you can get it cheaper without incurring early leaving charges.

Gas and Electricity - draw curtains as soon as it gets dark, cut down the amount of time you have the heating on, lower the thermostat. Just think about how you can save energy and money.

You should be able to get a cheaper phone and broadband bundle. Get rid of satellite you can't afford it, go freeview!

Phone your mobile providers and say you can't afford them and ask to be lowered to cheaper packages.

Groceries - go to the 'old style board' and try for £100 per week.

Just buy clothing for the children for now you must have loads at £80 per month.

See if you can cut down your travel in the cars.

Go on the comparison sites for all your insurances and see if you can get them cheaper.

Don't use storecards you will pay a fortune in interest. Cut them up.

Check out the interest rates on all your debts and pay off the highest interest first.

There is a lot to find to get you to break even. The choice is yours. We can only make suggestions but it is up to you what you decide to do. Good luck.

laisbojar83

Hi,

I just wanted to say Well Done for posting here and I am sure you will find a lot of advice from everyone.
I am no expert on the whole mortgage, credit cards, etc.
But what really stands out to me is your grocery shopping. I have 2 children as well, both hubby and I work full-time, and we only spend 280 a month, thats including laundry and toiletries. If you are worried about how much your children might miss if you reduce your food shopping, trust me they wont miss a thing. We always have desserts and I always buy the little treats such as chocolate, ice cream and crisps.. every week.
You can cut that to at least 400 (and I would say 300 is possible as well) a month, should give you another 300 to help with your bills. Meal plan weekly or monthly, depending on how you shop.I make a strict list and dont take my card with me, only cash (70.00), pen and a calculator. I make sure I tick everything on my list within the 70.00, by downgrading brands and buying stuff on offer. Sounds difficult but give it a go and you will be surprised by how much you can save, once you start doing it you wont want to stop.
Good luck and take care.
xx
L

firesidemaid

hello!

just thought i'd offer some more support. you already know that you have been spending/living beyond your means, but you have realised this and are seeking help now - well done.

from this day on, you won't remember your life before this website/these forums - i can't. my financial life has been run entirely differently ever since.

i never just buy anything without thinking about it. i always look around and strive to get the best deals/cashback. i source and pick up great, cheap, quality items throughout the year for presents. there is a budget for everything, and all the money i have saved/make i am using to pay off the mortgage asap.

re. mobile phones. check your tariffs. twice now whilst in contract i have rung up different mobile providers to say that they are offering new customers better deals and they have agreed to lower the prices.

get everyone in the household on the case re. your elec bills. turn everything off when not needed. turn down your thermostats and temps on the boiler/shower etc.

you can get basic tv, phone an b/band for half of what you pay now.

shop around for ALL your insurances PLUS get cashback through quidco.

you can also get cashback for your boiler/central heating cover! washing machines are so cheap you don't need cover.

food - well, as others have said there is loads to be saved here. i know it must be difficult being given all these hits, tips and ideas, but write a list and do/cross them off one by one.

and selling on ebay is a great way to clear clutter and make money.

every little bit you can save WILL make a difference. good luck x

firesidemaid

i really think you can do this! i think you can easily shave £600 of your SOA (and even more if you have to) which will cover the deficit with money to spare.

once you pay off those 3 lowest amount debts, next etc you then will have another £80 a month to spare etc.

i have included a few links to some of the threads that have inspired me - hope they might help.

https://forums.moneysavingexpert.com/discussion/2116179

https://forums.moneysavingexpert.com/discussion/593387

https://forums.moneysavingexpert.com/discussion/2853586

sadmum_3

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)
Total monthly income3,754
Monthly expenses (incl. HP & secured loans)2,934Available for debt repayments 820
UNsecured debt repayments 788
Amount left after debt repayments 32

Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)194,000Total Secured & HP Debt-181,288Total Unsecured Debt-31,085Net Assets-18,373
Household Information

Number of adults in household2Number of children in household2Number of cars owned2
Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax2050Partners monthly income1570Benefits134Other income0Total monthly income3754

ExpensesAmount(£)
Mortgage1405
Secured/HP loan payments150
Council tax 126
Electricity 175
Gas 56
Oil0
Water Rates 40
Telephone (land line)72
Mobile phone 55
TV Licence 12
Satellite/Cable TV0Internet services0
Groceries etc. 450
Clothing 20
Petrol/diesel 120
Road tax 18
Car Insurance 43
Car maintenance (including MOT) 18
Car Parking0Other travel0Childcare/nursery0Other child related expenses0
Medical (prescriptions, dentists, opticians etc.) 30
Pet Insurance/Vet bills0
Buildings Insurance 44
Contents Insurance0
Life Assurance 32
Other Insurance 43
Presents (birthday, christmas etc.)
Haircuts 25
Entertainment0Holiday0Emergency Fund0

Total monthly expenses2934

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage178000(1405)
Hire Purchase (HP) Debt3288(150)
Secured & HP Debt totals 181288- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)
next294 22
comet 565 23
b visa7423 170
b visa b 3070 70
b master 4719 95
jdwcatalogue 892 45
additions 7583 45
coop320 32
virgin 8644 206
santander 4400 90
Unsecured Debt totals 31085 788-

Asset DescriptionValue (£)Cash0House Value (Gross)190000Shares and bonds0Car(s)4000Other assets (e.g. endowments, jewellery etc) 0Total Assets194000

Comments on the results
You have sufficient monthly income to meet your expenses and your minimum monthly debt repayments with £32 left over. You can use this to pay off your debts more quickly or to build/top-up an emergency fund. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere. Thankyou for using the SOA Calculator at