Getting out and Keeping out of debt!

Phil3822

Hi all, I feel I am entering onto a slippery slope of although minor debt at the moment it could escalate. I need to gain control again!

I was previously in debt for over £30000, I went down the IVA route and today is the day my IVA and remaining defaults drop off my credit file. IVA settled 6 years ago today!

Anyway, we currently have £5000 on a credit card which is interest free until October 2012. I want this clear well before then.

Further to this because of my past poor credit I got a mortgage deal as described below on my SOA at a large interest rate. I am able to remortgage March 2012 which I would like to do.

Main reason for escalating debt because of a lavish lifestyle and eating to obsession.

My goals are to clear the £5000, stay out of debt and remortgage. Losing a bit of weight would be great to. I have already been on the OS board and they have helped me reduce my grocery bill by a huge amount.

I also am joining the No spending for a month challenge which will be included in this journey type diary thread.

SOA Below - Comments welcome.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 0
Benefits................................ 135
Other income............................ 0
Total monthly income.................... 1935
Monthly Expense Details
Mortgage................................ 710
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 103
Electricity............................. 70
Gas..................................... 0
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 20
Mobile phone............................ 50
TV Licence.............................. 13
Satellite/Cable TV...................... 20
Internet Services....................... 20
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 30
Car Insurance........................... 70
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 30
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 8
Other insurance......................... 0
Presents (birthday, christmas etc)...... 35
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1557

Assets
Cash.................................... 0
House value (Gross)..................... 102000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 104000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 76500....(710)......10.17
Total secured & HP debts...... 76500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax Credit Card............5000......50........0
Total unsecured debts..........5000......50........-

Monthly Budget Summary
Total monthly income.................... 1,935
Expenses (including HP & secured debts). 1,557
Available for debt repayments........... 378
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 328
Personal Balance Sheet Summary
Total assets (things you own)........... 104,000
Total HP & Secured debt................. -76,500
Total Unsecured debt.................... -5,000
Net Assets.............................. 22,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Phil3822

Rubbish first day. Spent £25 in Tesco for this evenings meal. Did go for a run though!

GreenSaints

Hi Phil,

Just popping in to say hi

Don't beat yourself up at every opportunity. If you would have normally gone into Tesco's and spent £30 - that's still an achievement. Got to make sure you don't get disheartened.

In terms of your SOA - I don't know enough to comment properly. My only observation is that your mortgage APR is very high. Is there any reason why that is? Is it because of your IVA? Is there any way of reducing it or changing?

Good luck - and I'll keep my eye on your diary

Phil3822

Thanks GreenSaints. Mortgage is so high because of IVA. Am fixed until March 2012 so will remortgage then and hope to save money! I really want to stop this random greedy spending but just get caught in the moment.

GreenSaints

Have you thought of making a meal planner?

I used to spend £90 a week on groceries for just me, my boyfriend and a cat. Now, it's just £50, and I haven't cut out anything! The best site (other than this one) I can recommend is theresourcefulcook.co.uk Not only can you pick what type of menu you want, for how many people but it then gives you a shopping list at the end!

Another thing that I do, is leave my purse at home or in the office. I find it too difficult sometimes to not spend if the money is in my pocket!

mildredalien

Hiya, just popped to say good luck with your budget plan! I also suffer with the random greedies, especially when food is involved Food is most definitely my biggest weakness (and expense)!

Your budget says £328 left after debt repayments and your budgeted outgoings? Maybe you could use some of that to put into an emergency fund just in case!

P.s. GreenSaints thanks so much for that meal planning link!

Phil3822

Thanks also for the meal link. We do meal plan but that money I spent above was for extra treat type stuff's to go with and after dinner. Greedy in other words! Have spent nothing today which is great and also been for a run again. Am overdrawn by about £50 so not happy bout that. Pay day on Monday though! Really appreciate the replies. Feels nice to know someone else is reading this.

Phil3822

Could kick myself as yesterday I got KFC for the family so spent £20. Wife also spent £30 on clothes which was naughty as was not due. Have however not spent anything today and been to the gym both days. As a couple we are so weak with regards to this. Got no will or control

Also, if ok I will be using this to keep a track of my weight. I have put on so much weight and weighed myself Monday and was 17 stone 9lbs. I am going to weigh myself tomorrow and see what comes.

Phil3822

None of my posts on here are very positive as my wife went out and spent £5 on treats from the shop yesterday. It was my fault as I asked her. I wish she would or could say no to me but thats not fair on her. I should have more control and I don't mean to sound like I am blaming her.

Weighed myself yesterday as well and now weigh 17.13 which I was gutted over. Been to the gym nearly everyday so surprised I put on. Although did have that KFC and some treats

Went to the gym yesterday. Had a day off gym today but have not spent any money today. I have got to buy some wood varnish so got to spend something this week.

Don't mean to sound all negative but am struggling. Wish someone could take control for me as feeling a bit useless right now. I do however know it is my responsibility.

mildredalien

It's tough to keep motivated, I'm totally with you! When I see tasty treats or want a quick snack or drink, it's so hard to stop and think to myself 'hmm how does this fit in with my budget? If I have this 60p chocolate bar now, can I afford food for the rest of the week/month?' It's also so tempting whenever I'm feeling a bit low or tired or stressed (insert any emotion here really...) to just want to think eff it and get something unhealthy and expensive but satisfying.

All habits take time to change so don't be too hard on yourself. Maybe to start off with you could have a 'treat' budget separate from your main grocery budget (even take it OUT of the grocery budget if you need to). Keep that money in cash and when it's gone, it's gone. Or try making your own versions of takeaways? I'm sure there was a thread on the old style board with a bunch of takeaway recipes... they're bound to work out cheaper!

Phil3822

Thank you Mildredalien. Your post was helpful. I feel very weak over all of this. I just spend regardless of affordability. When in that mood I dont think about responsibilty, debt or anything really. I am very much emotionally disconnected amoung other things.

I really do know how to save, budget and live cheaply. It's the doing it and self control that is a problem. I have not spent time reading others so dont know if others think this.