Card versus cash debt free diary

moneysavermum_2

This is my soa. I am a single parent of 3 children and work 30hours. I always worry about money and usually run my account in an overdraft. I had an ex who also has a share of 35% of house equity when my youngest is 18 (14years time so I am keen to be debt free and overpay my mortgage)I am not repaying legal aid till January 2012 I know its going up by 8% but i cant at the moment till my bank loan is gone.

I was doing ok till bought a new car cos I was worried about travelling with kids in an old one.

I am hoping my situation will improve when my youngest starts school in September. As will only pay for holidaycare for the 3 not nursery fees. I have moved to a nearer nursery so less diesel. Any help would be appreciated.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1141
Partners monthly income after tax....... 0
Benefits................................ 1198 (child benefit/working tax)
Other income............................ 480 (csa)
Total monthly income.................... 2819
Monthly Expense Details
Mortgage................................ 700 (overpaying £200 as interest 2.5%) so will go up shortly
Secured/HP loan repayments.............. 421 car payment ends jan 2013
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113(pay over 10 months) feb and march free
Electricity............................. 37
Gas..................................... 33
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250 (50 pound a week) (HAVE BEEN DOING THIS ONLINE BUT WILL START GETTING CASH OUT ON A FRIDAY AND PHYSICALLY GOING TO GET FOOD, BIT DIFFICULT WITH 3 CHILDREN BUT WILL DEAL WITH CASH AS SLIPPING INTO DEBT
Clothing................................ 20
Petrol/diesel........................... 80( diesel now changed nursery but will be half this in september
Road tax................................ 10
Car Insurance........................... 20
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 600 (this will change in sept as youngest starts school so will be 250 for holiday care. working tax will drop to 564
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2465

Assets
Cash.................................... 300 ( for school uniform sept one child to secondary one to primary)
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 195300

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 95600....(700)......2.5
Secured Debt.................. 17000....(10).......8( will repay in jan12 once loan of 189 gone)
Hire Purchase (HP) debt ...... 9300.....(421)......11.3 ends jan 13

Total secured & HP debts...... 121800....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard....................1270......100.......0 0% till sept 12
barclayloan....................1100......189.......18.9 ends september 11 MOVING THIS TO EGG 0%
overdraft......................1800......25........19.9 MOVING THIS TO EGG 0%
Total unsecured debts..........4170......314.......-

Monthly Budget Summary
Total monthly income.................... 2,819
Expenses (including HP & secured debts). 2,465
Available for debt repayments........... 354
Monthly UNsecured debt repayments....... 314
Amount left after debt repayments....... 40
Personal Balance Sheet Summary
Total assets (things you own)........... 195,300
Total HP & Secured debt................. -122,100
Total Unsecured debt.................... -4,170
Net Assets.............................. 69,030
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.



CONCERNED THAT EVEN THOUGH WILL MOVE MY OVERDRAFT AND BANK LOAN TO 0% CREDITCARD . I AM WORRIED AS I HATE CREDIT CARDS BUT AT THE MOMENT THIS IS CHEAPEST WAY TO BORROW. I WILL DEAL IN CASH FROM NOW ON.PROMISE THIS WILL BE MY DIARY

[Deleted User]

Hi

Can you pop the figures in to this template? http://www.makesenseofcards.com/soacalc.html It will make it far easier to read

D9

[Deleted User]

Statement of Affairs & Personal Balance Sheet

Summary

Total monthly income 2,819

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own)195,300
Total Secured & HP Debt-122,100
Total Unsecured Debt-4,170
Net Assets 69,030 (£32,000 due to ex in 14years)
Household Information

Number of adults in household 1
Number of children in household 3
Number of cars owned 1

Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax 1141
Benefits 1198
csa 480
Total monthly income 2819

ExpensesAmount(£)
Mortgage 700
Car Loan payments 421 ends jan 13 11.3%
Council tax 113 (Are you paying this over 10 months - see if you can spread over 12, or during CTax free months over pay this on the debt that's costing you the most)
Electricity 37
Gas 33
Water Rates 31
Mobile phone 15
TV Licence 13
Groceries etc.250 (Could maybe save a little here - drop bands, batch cook, meal plan etc - look at the old style board for advice)
Clothing 10
Petrol/diesel 80 (Is this the new reduced amout from moving nursery - or the old amount?)
Road tax 10
Car Insurance 30
Car maintenance (including MOT) 20
Childcare/nursery 600 (Do you get childcare vouchers from work?)
Buildings Insurance 10
Contents Insurance 10
Life Assurance 22
(birthday, christmas etc.) 50 (Could reduce for now, perhapse halve this)
Haircuts 5
Entertainment 5
Holiday 10
Emergency Fund 10

Total monthly expenses2485

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%) (You have said that you are (or that you want to?)overpaying on the mortgage at the moment, this really doesn't make sense at the APR is quite low, you would be better to over pay on those that cost you the most in interest before moving on to the mortgaget (This way you will be paying less interest over all which will go towards the actual debt)

Mortgage 95600(700) 2.5
Legal Aid 17000(0) 8
car loan 9500(421)11.3

Secured & HP Debt totals 122100- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%) The same advice applied here - overpay on the debt that's costing you the most in interest before overpaying on anything else - this will save you money in interest payments. I have listed these in the order that you should be overpaying them (always pay the minimum towards everything)

overdraft 1800 19.9%
barclayloan1100 ends sept 11 18.9%
barclaycard1270 o% till sept 12


Asset DescriptionValue (£)
Cash 300
House Value (Gross)185000
Car(s)10000
Total Assets195300[/QUOTE]

Hi,

I have made some comments above - the biggest point is to pay the minimum payments towards all debts, and then any overpayments towards the debt that's costing you the most (interest/APR), once this debt's gone then continue this on with the debt that's the next expensive, and so on until all debts are gone.

HTH

Domino9

Tixy

Hi

have you used the makesenseofcards template - if so I think you might have chosen the wrong formatting option. At the moment we can't see what the current minimum payments are on the 3 debts you have listed and therefore whether you have a shortfall or surplus each month after paying minimum payments - and obviously that would vary the advice we would give.

12bdebt3

Should you really be saving for a holiday? I know it's only £10 but there are higher priorities. How do you get over £1000 in benefits on top of a £1000 wage and £500 CSA?!

moneysavermum_2

arrontdep wrote: »

Should you really be saving for a holiday? I know it's only £10 but there are higher priorities. How do you get over £1000 in benefits on top of a £1000 wage and £500 CSA?!

My childcare is so high and csa is not taken into account for working out working tax/childtax credit. My ex has a good salary.

12bdebt3

nje24 wrote: »

My childcare is so high and csa is not taken into account for working out working tax/childtax credit. My ex has a good salary.

Oh, fair enough. One had to question.

moneysavermum_2

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1141
Partners monthly income after tax....... 0
Benefits................................ 1198 (child benefit/working tax)
Other income............................ 480 (csa)
Total monthly income.................... 2819
Monthly Expense Details
Mortgage................................ 700 (overpaying £200 as interest 2.5%) so will go up shortly
Secured/HP loan repayments.............. 421 car payment ends jan 2013
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113(pay over 10 months) feb and march free
Electricity............................. 37
Gas..................................... 33
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250 (50 pound a week)
Clothing................................ 20
Petrol/diesel........................... 80( diesel now changed nursery but will be half this in september
Road tax................................ 10
Car Insurance........................... 20
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 600 (this will change in sept as youngest starts school so will be 250 for holiday care. working tax will drop to 564
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 22
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 2465

Assets
Cash.................................... 300 ( for school uniform sept one child to secondary one to primary)
House value (Gross)..................... 185000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 195300

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 95600....(700)......2.5
Secured Debt.................. 17000....(10).......8( will repay in jan12 once loan of 189 gone)
Hire Purchase (HP) debt ...... 9500.....(421)......11.3 ends jan 13

Total secured & HP debts...... 122100....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
barclaycard....................1270......100...... .0 0% till sept 12
barclayloan....................1100......189...... .18.9 ends september 11
overdraft......................1800......25....... .19.9
Total unsecured debts..........4170......314.......-

Monthly Budget Summary
Total monthly income.................... 2,819
Expenses (including HP & secured debts). 2,465
Available for debt repayments........... 354
Monthly UNsecured debt repayments....... 314
Amount left after debt repayments....... 40
Personal Balance Sheet Summary
Total assets (things you own)........... 195,300
Total HP & Secured debt................. -122,100
Total Unsecured debt.................... -4,170
Net Assets.............................. 69,030




I am trying to get back into saving as a pose to spending but with 3 growing children they always need something i.e clothing. Generally all my money I have goes on food and clothing, school dinners, school trips. We do very little apart from work/sleep. The kids do after school clubs but nothing like swimming lessons etc.
We go on sun holidays in summer for 3 nights and by xmas I am usually struggling. I was okay till bought the car but now struggle, but if sold it would probably loose or break even. We broke down last year and nobody stopped to help us, so would rather struggle. Nevertheless feel rather vulnerable as have nothing put by and cant use the piggybank method as in a overdraft.I get creditcards thrown at me for 0% I have just sent a tesco and egg one back unused and have just balanced transferred Amazon card to the Barclaycard so only haveone.
So desperate to keep a lid on this as have more than enough debt.

I cant see my situation changeing till September 11 when my loan is paid off +189pounds. i will then use this to clear overdraft if still have one and then credit card. I expect that if everything goes straight when car is paid i will be able to throw that money at legal aid bill or mortgage. But as we know life doesnt go smooth always so looks like im here for the longhaul.

I estimate my income to be from October 2011 to be:

1141 wage
188 childbenefit
564 taxcredit
480 csa

Tixy

Thanks for changing the formatting - presumably the payments you have listed are just the minimums are they? The barclaycard looks much higher than I would expect the minimum to be? If the minimum is lower than £100 then as this is your cheapest debt you would be better to only pay the minimum and pay extra off your higher rate debts.

Is the overdraft the current account you still use? Is the £25 just the interest/charges each month or is the balance actually reducing? Have you looked at the snowball calculator about organising your repayments so you pay the least in interest?

I see why you want to overpay the mortgage but you still have 14years before you have a major issue and at a rate of 2.5% I would really suggest you clear your overdraft first. If you direct that £200 and some of the repayments to the barclaycard to the od you could clear it in a few months, saving you a lot in interest.

nje24 wrote: »

Council tax............................. 113(pay over 10 months) feb and march free do you claim the 25% discount here?
Groceries etc. ......................... 250 (50 pound a week) try to reduce this a little. Try things like the drop a brand challenge and perhaps making meal plans for the week before you go shopping and other tips from the oldstyle board to see if you can get to say £200.
Childcare/nursery....................... 600 (this will change in sept as youngest starts school so will be 250 for holiday care. working tax will drop to 564 how much is wtc now? will you end up better or worse off?

Tixy

Tell me about the egg card? you mean you were offered a 0% card and didn't take it up? or that you had a card and have closed it?
Have you thought about transferring either the barclayloan or the overdraft to a new 0% your current account and then either leave it against the OD or pay off the loan early. Egg are one of the provides who allow these SBTs -their SBT fee is 3% - but if you pay 3% and then clear the card within the 13month period you will still be saving in interest compared to the APRs you are paying now.
I'd be tempted to do this an clear the overdraft, as I think a lot of people find it so much easier to budget and take control if their current account is in credit always, rather than constantly working with a negative balance.

moneysavermum_2

Tixy wrote: »

Tell me about the egg card? you mean you were offered a 0% card and didn't take it up? or that you had a card and have closed it?
Have you thought about transferring either the barclayloan or the overdraft to a new 0% your current account and then either leave it against the OD or pay off the loan early. Egg are one of the provides who allow these SBTs -their SBT fee is 3% - but if you pay 3% and then clear the card within the 13month period you will still be saving in interest compared to the APRs you are paying now.
I'd be tempted to do this an clear the overdraft, as I think a lot of people find it so much easier to budget and take control if their current account is in credit always, rather than constantly working with a negative balance.

The egg is not the egg money. The cards i sent back were accounts that i applied for wanting the 0% but managed to get the barclaycard 0% for 17months so wanted that. The tesco only had a £400 credit limit but think the egg as more. I never spend on credit cards but in past have used them to clear my overdraft. So it goes like this get into overdraft, use a credit card to clear overdraft, pay off card, back in overdraft.

The overdraft payment of £25 is interest
The creditcard is overpaid up to £100 to clear balance in o% time

I have just balance transferred the Amazon card which is a mbna card so that will have a zero balance shortly. The o% finishes in may but has a credit limit of £1500