OK, here I go . . .

Rock_Cakes

Dear all

I have been lurking on the MSE forums and I have been so encouraged and warmed by the advice and support I have seen other people received. We have finally had our lightbulb moment

I have posted our Statement of Affairs below:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 1300
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3100

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 27.26
Telephone (land line)................... 0
Mobile phone............................ 65
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 20
Road tax................................ 10
Car Insurance........................... 37
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 100
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 80
Holiday................................. 20
Emergency fund.......................... 0
Savings................................. 145
Yoga.................................... 24
Climbing................................ 36
Gym..................................... 26.99
Car Payment............................. 122.65
TV/Internet/Phone....................... 40
Total monthly expenses.................. 2191.27


Assets
Cash.................................... 1800
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 6300

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
HSBC CC........................6280.19...0.........16.9
Lloyds TSB CC Me...............1116.92...0.........15.9
Lloyds TB CC OH................1592.96...0.........15.9
Overdraft OH...................1633.43...0.........15.2
Overdraft Me...................727.14....0.........9.6
Virgin CC......................3000......0.........0
Total unsecured debts..........14350.64..0.........-


Monthly Budget Summary
Total monthly income.................... 3,100
Expenses (including HP & secured debts). 2,191.27
Available for debt repayments........... 908.73
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 908.73

Personal Balance Sheet Summary
Total assets (things you own)........... 6,300
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,350.64
Net Assets.............................. -8,050.64

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

I know it doesn't look that bad but there are a few factors. I am hoping to have a change in career which will require me to do a year in Uni. Which means we will loose my wages. So we need to work out a strategy to compensate for this, obviously I will get a part-time job but I still foresee issues for paying off our debts.

The other factor is that we have to go to Australia. I know it doesn't seem like a hardship but the tickets will cost us around £2,400. We have to go for a wedding and now way to get out of it I'm afraid. I think we should be able to use the £1,800 in our savings and I'm expecting about £1,500 of compensation for a bike accident (it hurt and was not worth the money!).

My husband couldn't get a job in our area. So he now lives an hour and half away and see each other at weekends. We book our train tickets in advance to make as much as a saving as we can. But thats the excuse for the travel costs and rent :eek:

I have tried to get a 0% credit card but I have been rejected

I have tasked my husband with creating an google document that we can use on our phones to keep a log of our spending.

OK, I think its that it for now. Any help will be gratefully received . . .

dancingfairy

Hi - nothing looks too ridiculous on there apart from mobile(s) look high. Is the above the costs of maintaining 2 houses or just one?
At the moment it looks like you have 900 a month spare to throw at the debts- are you seeing this? a spending dairy sounds like a good plan.
With the trip to Australia - when are you going? hopefully at some point you will be able to stop the savings money and pump this into debt repayment as well?
How long to go on the car payment?
When are you hoping to go to uni?
Entertainment /sports clubs could maybe be cut down a bit if you want to maximise every penny.
I know more questions than answers but it all looks good on paper - I think it's a case of knuckling down, sticking with the plan and wallopping the debt starting with the highest interest first.
Good Luck
df

theoretica

If you become a student there will probably be student clubs for things like the yoga, climbing and gym so if those are for you not your husband make sure you are not in a contract.

As a student would you get any financial support? Remember you would not count towards council tax.

When will the car loan be finished?

CommitedToChange

you haven't put what your monthly debt repayments are - you must be paying something?

climbgirl

The cost of the tickets to Australia seems high - have you booked them yet? I'm a regular traveller to that part of the world and the only time it ever really costs more than £1000 per adult is around Christmas time. Not sure when you're travelling, but you should be able to get flights cheaper than that.

Check out Korean Air, I've had decent fares from them in the past (they have older planes without the screens on the back of the seats but for the sake of saving a few hundred quid, you'll get over that!)

Rock_Cakes

dancingfairy wrote: »

Hi - nothing looks too ridiculous on there apart from mobile(s) look high. Is the above the costs of maintaining 2 houses or just one?
At the moment it looks like you have 900 a month spare to throw at the debts- are you seeing this? a spending dairy sounds like a good plan.
With the trip to Australia - when are you going? hopefully at some point you will be able to stop the savings money and pump this into debt repayment as well?
How long to go on the car payment?
When are you hoping to go to uni?
Entertainment /sports clubs could maybe be cut down a bit if you want to maximise every penny.
I know more questions than answers but it all looks good on paper - I think it's a case of knuckling down, sticking with the plan and wallopping the debt starting with the highest interest first.
Good Luck
df

Thanks so much for your help.

My mobile contract is up in March will be looking for a better deal and my OH in April and so will he. . .

The costs are for maintaining two houses. I rent a flat and OH lodges during the week.

We are going to Australia in August :eek: Not the best time to go but its for a wedding. The car payment is due to be finished 01/2014!!!!

I am hoping to go to Uni in September if I get accepted (fingers crossed).

Will look seriously look at cancelling my gym membership. That would save nearly £300 a year. Might just walk home when the weather is good, will be over an hour.

Rock_Cakes

climbgirl wrote: »

The cost of the tickets to Australia seems high - have you booked them yet? I'm a regular traveller to that part of the world and the only time it ever really costs more than £1000 per adult is around Christmas time. Not sure when you're travelling, but you should be able to get flights cheaper than that.

Check out Korean Air, I've had decent fares from them in the past (they have older planes without the screens on the back of the seats but for the sake of saving a few hundred quid, you'll get over that!)

Thanks so much for your suggestion, will check out Korean. Going in August. Can't book tickets at the moment as my OH has just started his job and I am not sure when uni will start so don't know when to book the tickets for. I am sooo desperate to book the tickets. Will nudge my OH to see if he can find out from work (holiday year starts in April . . .)

Rock_Cakes

CommitedToChange wrote: »

you haven't put what your monthly debt repayments are - you must be paying something?

I am ashamed to say that we have only been making the minimum payments. OH been out of work since Sept, just started working Jan. We have only just had this surplus!

dancingfairy

You should have enough money to go to Australia soon then - in less than 4 months? don't forget you are likely have 2 council tax free months - throw those in and the Australia fund should be sorted.
The money you were saving each month can then be used to throw more at the debts each month.
Can you do anything with the car? is it hp or finance? is it yours/ will you need it when at uni?
df

bargainbetty

Please don't shoot me down for this, but if you have a financial situation where you have to live in and maintain separate houses, your OH is only just working again after a period off work and you have to save for a potential year off work, then perhaps you should consider not going to Australia? I know it is for a wedding, but if the bride and groom are really friends, then they will understand the huge financial committment that they are asking you to make given some rough circumstances.

If you do really want to go, why not put off the Uni course for a year instead? It is one year, that will give you time to get in a better position financially, and would make sense.

I really don't mean to be harsh, I know you are in a difficult position, but those are two whopping financial things that you are CHOOSING to do. Not being forced into, choosing.

You have nearly £15k of unsecured debt - what happens if you take that year off for education, and then cannot find a job at the end? Have you not seen the job market out there? Thousands of unemployed graduates, students clawing their way over each other to get any job at all, much less graduate entry. Reduce your debt first, spend a whole year throwing everything you can at it, and then you won't have such a stressful year and can enjoy it.

I wish you luck,

Pollycat

CommitedToChange wrote: »

you haven't put what your monthly debt repayments are - you must be paying something?

CommitedToChange has made a good point.
I'd redo your SOA and put in what you're paying per month on your debts.

You've not put any amount in at all (note even the minimum) so that's why you're showing over £900 per month surplus.