Light bulb moment-mySOA

beckseven

My Soa

Hello-I’ve had a light bulb moment because I’ve had a bit of a nightmare year with cash. I had a baby in February and was on maternity leave for 6 months with 3 months full pay and then 3 months on maternity leave. We saved a bit but the last month I used my credit card loads. If I’m honest I wasn’t really careful with money when I was on maternity leave-shopping in Waitrose because it’s my nearest supermarket etc etc. I also extended my overdraft limit. My husband pays the mortgage and all the bills so I haven’t included that in the equation as it is my money management/debts that are the problem here-I must admit that I haven’t revealed to my husband how much is on my credit card so I want to sort it out.. This Christmas I have pushed up my credit card more because I had no savings for Christmas presents and I am also hosting Christmas dinner for my family this year for the first time because my mum has had cancer this year and is recovering from 2 ops and 5 months of chemo and has finally been given the all clear so I want to make it really special so have probably gone over the top with organic turkey, new table arrangements, games etc-all on credit. I have just looked at my credit card statement and thought this must stop-my money should be spent on my baby not paying off debts. I need to cut up my cards and find ways of saving money. I can see that the £400 spending money can be cut straight away-I will still give my husband £200 but will try to save as much of my allocated £200 as possible so I can pay more of my cards. I would be grateful for any help and advice on how to get rid of my debts and cut my outgoings as I would like to have another baby in the next couple of years but I am worried that my debts will prevent me. Thanks in advance.

Monthly Incomings:

My salary - £1453
Benefits – 79.05


Total - £1532.05

Monthly Outgoings:

Nursery fees 514.80
Specsavers-10.00
Car insurance-22.30
Pet insurance-16.38
TV Licence-10.54
Mobile-23.00
Credit cards-200(100 between my cards and 100 on my husbands)
Shopping-300
Spending money for me and my husband-400


1494.02 total-the rest goes on petrol and shopping because I find it hard to stick to my budget-which is stupid I know as I read about people who spend £100 a month on food.

Debts

3400 on Marks and Spencer card-3.9% for the life of balance
653 on Mint card-14.9%
HSBC overdraft-always hit £1500 limit at the end of the month

bommer

Nursery fees 514.80 (Does your work let you purchase nusery vouchers)
Specsavers-10.00 (what's this for? Is it contacts? Have you tried any other providers Boots/Asda?)Car insurance-22.30
Pet insurance-16.38Have you shopped around for better deal?
TV Licence-10.54Will be a little more for new licence
Mobile-23.00(Can you not get a PAYG and reduce this to a minimum
Credit cards-200(100 between my cards and 100 on my husbands)
Shopping-300(Need to reduce, try to do this slowly change your supermarket try asda if one close, lidl does plenty of cheap fresh food, look at the os board and plan your menus, use up what you have over next few weeks. It needed be expensive cooking a fancy meal - lidl have got frozen lobster for £4.99!
Spending money for me and my husband-400Need to speak to husband and reduce both - say you want to save for a rainy day - both have a spending diary to see what you are spending it on. Take pack lunches to work etc

Valentina2

Hi Beckseven,
You have already realised you need to stop spending so make sure that from now on you ask yourself if you NEED something before you buy it and if you don´t, don´t buy it. You have a good income so if you budget, meal plan and do your grocery shopping at cheaper supermarkets, you should be able to pay off your debts reasonably quickly if you have good willpower.
Enjoy your christmas and pack all the new table decorations away afterwards for next year so you won´t have to buy any new ones.
I am sure it will be a very special christmas as it will be your baby´s first christmas and you have just had the brilliant news that your mum has been given the all clear.
Happy christmas and all the best for clearing those debts. You can do it.

beckseven

Thanks for your reply. In January I will be getting nursery vouchers from work so this should be a sizeable saving. My specsavers dd is for contacts-I haven't tried any others so will now shop around to see if I can get it cheaper. I've been lazy with the pet insurance as well and have been with Tescos for 7 years so will shop around for this too. I get my mobile free from work ( but get the rental paid but not non work related calls)but I've noticed that it is quite expensive for calls and texts. I know I really need to address my shopping-I've started shopping at Asda but really need to get this down so will try Lidl. At the moment my husband refuses to have anything less than £50 per week-but I can definitly reduce mine. I will start a spending diary. I had been making sandwiches but have tailed off in the past couple of weeks so will get back on it. I've written all your points in a list and am going to start actioning them!