LBM just in time

netz_2

hi, after lurking around for months reading inspiring posts from so many of you I decided it was time to join the party and post.:)

My OH and I had our LBM just a couple of weeks where enough really was enough and we need to get a grip of our finances.By sticking to regular payments we will clear our unsecured loans in 2 and a half years. This would free up enough money to enable us to clear our outstanding credit card debt in the following 18 months to 2 years. So that's the good news!!:j

Now for the bad news, we have had defaults in the past on credit cards but have been maintaining regular payments albeit the minimum for the last six months. We have two hp agreements which have two months arrears on them which we have agreed to pay up to date on 31st August.

We have absolutely no leeway which allows us to lower the amount we need to pay to any of these commitments as my OH has last month been moved into a new department at work to a 'sensitive' area where any new defaults or delayed payments showing on our financial records would result in him having to change jobs. We have been given a deadline of 31st August to have all our outstanding debts completely up to date. As he loves the job he's in it's obviously not something we intend to mess up.

Having said that, it would have been much more helpful if we'd realised the full implications of his new job at least a couple of months earlier. I've just bought our son's new school uniform as he is about to start high school next week, with that is a new bus pass, locker money etc etc. Road tax is due 31st August, so having worked out our bills we are left with £120 to last till end of Septembers pay date. That's to cover any food, petrol and living expenses.:eek::eek::eek:

I'm in the process of putting stuff on ebay, I'm quite creative so I'm 'touting' my skills around friends to see if I can sell some of the things I make to them. My mum bless her has invited us round to eat at her house on an as and when basis - although I seriously think if we turned up every day she might recind the offer.

£120 is not a great deal to make last but hopefully with a bit of luck we'll manage.

We got ourselves into debt and having read some of the posts on here I count my blessings that with sticking to a budget that in normal circumstances would be tight but manageable we can be out of in just a few years. I just wish we didn't need to get through September before things can start to get better.:eek:

Sorry for the long long post but better to be upfront I suppose.
x

Xevius

Good luck with getting through September! There are some fab ideas on cheap family meals over on the Old Style board.

MiaowMiaow

Hi! well done on your LBM - first step to being debt free !!
Can you post your full SOA on here? yoiu will get lots of advice and tips from it.
Good luck and keep posting!
xx

MrsTinks

Start by going through your cupboards for a cupboard challenge You'd probably be amazed at how much you have that you can make meals from... Reminds me I ought to do one soon - it's great for decluttering the stores too!
Fleabay what you can - use gumtree for any larger items and don't forget the joy of Facebook
It can be done with some belt tightening and it's only a month

CH27

Come over to the old style board & lots of people will happily help you.

JLL

Don't worry it can be done. We felt how your feeling when we went on a payment plan to pay back £140 a month for 6 months on our overdraft. We didn't think end of August would come but were here and it's paid back. Now we are on to the next debt to pay back.

Look at where you do your grocery shopping, that was the biggest thing we did. Stopped shopping in Asda and changed to Aldi. We used to spend £80 a week, now we are down to £30-40 a week. And i'm sticking to it now to get through our other debts. We still put £80 a week in a tin for shopping then once i've done it, what evers left over we use it to pay towards our debts.

Because your both in it together you will do it.

DS4215

Can you cut down on car usage completely for a month (walk/cycle to work) and SORN it? - Would save the road tax until the end of September then...

happyhaddock_2

Hi, can't offer any advice but just wanted to say you will get through September

We take each week as it comes, sometimes, as in this week, each day (have precisely £4.21 at the mo!). We just deal with what we need to at that time. I used to be a BIG worrier but have found that by only dealing with the things that HAVE to be dealt with instead of worrying myself to death about everything, it gets easier. However it has taken me 35 years to realise this fact lol. Good luck

netz_2

thank you all so much for you welcome it's a huge thing to be able to offer so much support. I've been brave and posted our soa which will be the situation in October. (That's if we make it through September that is!!). Looking at it is quite depressing really but that's the way it is - no point in hiding. I haven't been able to put down the interest rates on the debts cos I haven't a clue. The CC are high interest but due to us being totally stupid in the past a lower rate card is totally out of the question. The mobile phones are on a contract which we are tied into until next May so no change there either. To be honest I'm ok with the SOA from October - it's tight but manageable which is how I look at it - is that right??? And if we can get through Sep then we can get through anything.

Thanks for the advice re the SORn but I don't think it's an option as we live in a terrace and park on the road outside the house so no off road parking I'm afraid. Also and more importantly, although me and OH are planning on walking to and from work for the foreseeable future (it'll help lose weight as well) I need to be able to use the car as I take care of my mother who is elderly and unable to get to shops and doctors etc - she lives the other side of the city from me so I really do need the car. My mum is fantastic and always offers to pay for petrol when I take her anywhere but that is the one thing above everything else in this stupid stupid mess that makes me feel a complete failure.

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 960
Partners monthly income after tax....... 1684
Benefits................................ 118
Other income............................ 0
Total monthly income.................... 2762

Monthly Expense Details
Mortgage................................ 532
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 50
Gas..................................... 79
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 10
Mobile phone............................ 70
TV Licence.............................. 13
Satellite/Cable TV...................... 50
Internet Services....................... 10
Groceries etc. ......................... 180
Clothing................................ 30
Petrol/diesel........................... 80
Road tax................................ 13
Car Insurance........................... 76
Car maintenance (including MOT)......... 20
Car parking............................. 5
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35
Contents insurance...................... 27
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 50
Emergency fund.......................... 50
bank account charges.................... 20
sponsor a child charity................. 47
washing machine rent.................... 22
folding camper storage.................. 30
Total monthly expenses.................. 1795


Assets
Cash.................................... 55
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 3000
Total Assets............................ 128055


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(532)......2.5
Total secured & HP debts...... 97000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
oh bank loan...................8000......199.......0
my bank loan...................2400......137.......0
credit cards...................7750......215.......16
overdrafts oh and me ..........3500......0.........0
car purchase loan..............4830......161.......0
loan from inlaws...............3000......150.......0
catalogue debt.................800.......55........0
Total unsecured debts..........30280.....917.......-


Monthly Budget Summary
Total monthly income.................... 2,762
Expenses (including HP & secured debts). 1,795
Available for debt repayments........... 967
Monthly UNsecured debt repayments....... 917
Amount left after debt repayments....... 50

Personal Balance Sheet Summary
Total assets (things you own)........... 128,055
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -30,280
Net Assets.............................. 775

ceh209

netz wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 960
Partners monthly income after tax....... 1684
Benefits................................ 118
Other income............................ 0
Total monthly income.................... 2762

Monthly Expense Details
Mortgage................................ 532
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 50
Gas..................................... 79
Oil..................................... 0
Water rates............................. 23
Telephone (land line)................... 10
Mobile phone............................ 70 Try phoning your network anyway for a reduction, saying you can't afford it - even £5 a month will help
TV Licence.............................. 13
Satellite/Cable TV...................... 50 Reduce/get rid?
Internet Services....................... 10
Groceries etc. ......................... 180 Good. Is it realistic?
Clothing................................ 30
Petrol/diesel........................... 80
Road tax................................ 13
Car Insurance........................... 76
Car maintenance (including MOT)......... 20
Car parking............................. 5 Your car costs ~£200 a month. Could you get taxis for less than this to help your mum?
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 30
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 35 Seems high especially when combined with contents - shop around for a better deal.
Contents insurance...................... 27
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 50 It would help if this didn't happen, just for one year!
Emergency fund.......................... 50
bank account charges.................... 20
sponsor a child charity................. 47 It's up to you, but many people here would suggest you stopped this
washing machine rent.................... 22 Keep an eye out on freecycle to see if you can get one
folding camper storage.................. 30 What's a folding camper???
Total monthly expenses.................. 1795


Assets
Cash.................................... 55
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 3000
Total Assets............................ 128055


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 97000....(532)......2.5
Total secured & HP debts...... 97000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
oh bank loan...................8000......199.......0
my bank loan...................2400......137.......0
credit cards...................7750......215.......16
overdrafts oh and me ..........3500......0.........0
car purchase loan..............4830......161.......0
loan from inlaws...............3000......150.......0
catalogue debt.................800.......55........0
Total unsecured debts..........30280.....917.......-


Monthly Budget Summary
Total monthly income.................... 2,762
Expenses (including HP & secured debts). 1,795
Available for debt repayments........... 967
Monthly UNsecured debt repayments....... 917
Amount left after debt repayments....... 50

Personal Balance Sheet Summary
Total assets (things you own)........... 128,055
Total HP & Secured debt................. -97,000
Total Unsecured debt.................... -30,280
Net Assets.............................. 775

Hope there's a few ideas to think about. Just a bit more leeway will make things a lot easier for you x

netz_2

thanks ceh, I will definately ask hubby to ring Network about the phones, I suppose I just assumed that because it is the contract there wouldn't be a chance of reducing it but you never know. I am definately going to shop around for cheaper insurance because it seems too high to me too. Funny how when you write things down it makes you look at things differently.

I know about the charity giving but it's more to us than just giving away the money - personal reasons ie not being able to have more children, we get letters etc from the child we sponsor and if anything puts things into perspective when I'm moaning on about having nothing to spend is the fact that our money feeds this child who has significantly less than me. I know it's not sensible to pay it out but somehow I hope to keep it going and it'll be the last thing we give up.

holiday next year - my mum is 80 it's going to be a big do, we're planning on keeping costs down by staying in the folding camper (we inhereited it a couple of years ago) - pitch fees are cheaper than hotels and we'll be self catering. But yes it could be sacrificed if I am totally honest. That could be a sticking point though with OH, I'd need to broach that one carefully.

Sky etc could definately be cut down in my eyes but again I'll tread gently with OH and son and pick my moment.

Grocery budget is low but OH can be a very resourceful man when it comes to planning and cooking meals - I am a very lucky lady x