Can't balance the books HELP!

randomer

Can anybody direct me to any help for this problem. We have a reasonable amount of money coming in,we are not big spenders at all,thankfully we don't have huge debts but try as I might I can't get out of O/D.

I feel like I need Alvin Hall or somebody to physically sit beside me and help me.

This is very long standing and getting me down.

Be grateful for any pointers. This may even be the wrong forum but don't know where to start.

Gettingtherequickly

Take a wander over to the Debt Free Wannabe forum, they are fab there and will give loads of excellent, non judgemental advice.

Pink.

Hi randomer,

As Gettingtherequickly has said the people on the Debt Free Wannabe board are probably the best to help as they are a mine of information. It would help if you posted a SOA (statement of affairs) so that they can see your incomings and outgoings. I know that you have objected to your threads being moved in the past but I think that you will get much more ideas and advice on DFW so I'll move your thread over there now. Good lucck.

Pink

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"]forumteam@moneysavingexpert.com[/EMAIL].

Tixy

Hi randomer and welcome

The best starting point is to try to work out your income & outgoings (before debts) so you can see how much you should have left for debt repayments - we use this form - http://www.makesenseofcards.com/soacalc.html
and if you could post the results on here people wll try to offer you detailed advice based on your circumstances.

Another useful starting point is to start keeping a spending diary for a couple of months where you write down everything you spend (even the odd 50p or £1 here and there).

Some people really struggle with an overdraft more than other debts. And for some it can be psychologically easier to clear if they move they open a new bank with no overdraft for day to day banking and then just set up a set standing order to pay off the debt (this option often doesn't works out a bit more expensive but helps some people).

randomer

Thanks for advice Tixy. Unfortunately we have done the whole change bank get rid of O/D thing and right back at square one.

I'll try debt free forum for some help.

I wish there was some sort of personal service available to small time strugglers like me!

Tixy

randomer wrote: »

Thanks for advice Tixy. Unfortunately we have done the whole change bank get rid of O/D thing and right back at square one.

It only really works as an option if the new account is a basic bank account that doesn't have an overdraft or allow you to become overdrawn - and if you ensure you are living to a budget that allows you to make payments to the old debt.

randomer

We have one account where main salary goes and all D/D comes out. Main salary is paid every 4 weeks. I struggle with this.

Partner has account for fares (considerable and cannot be reduced)

I have little sub account laughingly called "saving!" with just a few quid in it.

This is new for us so may help things after a few months have passed.

DorsetGirl_2

If you do post your SOA there are lots of people that can help you reduce your outgoings.

randomer

Ok Thanks. I have some free time later so will give it a go.

lizzyb1812

Hi randomer

It can be difficult to budget when money comes in 4 weekly and DDs etc go out monthly

Can you use a spreadsheet like excel? You can do this by hand but a spreadsheet is easier.

You have 13 columns for your 4 weekly pay periods, your income goes at the top plus a couple of lines for other income - eg you sell something

Underneath you have a list of expenses. Work out what your pay periods are and then work out in which pay period your DDs fall and enter them in the relevant pay periods, same with any "regular" payments like TV licence, mortgage, etc. In truth, because of your 4 week pay period just about all your expenses are irregular and have to be accounted for in the way other people account for quarterly or other irregular expenses like car servicing.

Each pay period your income less the DDs etc = what you have left to spend. Some periods you will appear to have quite a bit, some periods you won't have enough. In the periods when you have some over, DO NOT SPEND IT! You will need it soon for a period when you have a shortfall.

You might think this is onerous, but it does work and will let you get a real grasp on what is happening. Also, because it is in black and white if you get a surplus one month you can look ahead and see if it's a real surplus or money that will need to be saved for next month's DD's

I can send you a very basic excel spreadsheet if you want

HTH

Lizzyb

DrSqueeze

Itemising your spending often helps. Set up a spreadsheet with different headings, and every time you spend money add it to the appropriate list (e.g. Groceries, Travel, Entertainment, Clothes, Household etc).

That way you can work out exactly how and when you spend your money - which is a useful starting point - and use this to set yourself targets to cut back. If you find, for example, that you spend £200 on groceries in August, set a target of £180 for September. That's £20 to come off your overdraft if you can stick to it.