Help me make sense of this please - SOA

theoretica

As there are various luxuries you want to keep on why not put money from ebaying stuff and any other little bits of income you can find into a luxury pot and only go for your beauty treatment etc when you have made enough to afford it.

ladylouise62

It's difficult to decide what you don't need/don't want to lose so look at it from the other direction. You are technically bankrupt, so should only be paying out for what you need. Start with the essentials (roof/energy/heating/food), and with everything else ask yourself "Since I actually have no money, can I really afford to pay out for that?". Then, as recommended, put away the cards and ONLY pay by cash that is drawn out once a week... it really focusses the mind (or should I say, "purse"!).

I do not have debt (other than the remainder of a mortgage), but I have been on short hours for a year and am only earning a pittance with no state help, so have been through this... including rarely switching the heating on during last winter (layers, layers and more layers!!!).

Regarding the transport issue. I am present considering obtaining a bike from Freecycle to ride the 3 miles to work to save on bus journies (£3 a day), despite a muscle problem. Maybe your OH could consider a moped if it's a much longer distance than that (as a long-term investment).... of course, using a bike would negate the need for the gym

Yes, it's not easy and it's not nice, but don''t forget that this way of living will not be forever, and you have the aim of no debts/no worries and if you can't tackle this well there is no way that you would ever be able to cope with a mortgage and the further costs of owning a house. But well done for looking at tackling before it gets even worse.... good luck - what doesn't kill you makes you stronger!!!

remote_control

Hi

I rang up my mobile phone provider, I am on a two year contract and rang after a year, and they were happy to reduce it to the next tariff. its only £5 a month but that is £5 to go towards the debt.

Also, I liked

Thank you for your kind words the reason I want to stick with the current salon is because they do this chocolate waxing thing that is actually amazing, barely hurts at all! I haven't yet found any other place round my parts that does it but I might just have to look a little harder.

I presume by 'your parts' you mean where you live?!

ebay is free listing this weekend.

Sign up to Toluna, Onepoll, mysurvey and some other sights. Slowly but surely you'll get yourself a few vouchers, I personally get Amazon ones and am buying my christmas presents with them.

Take care and good luck!

sharronej

Katerinasol - it's understandable to be feeling defensive about the bikini was after all it is time out for yourself, a place to feel girly in a lovely and calm environment. The lunches again, I understand your reaction I was reading somewhere that food is the last thing that people cut back on because it makes them feel poor and of course it's another job to do at night or in the morning BUT here's the problem you are having problems paying your Council Tax, Water Rates and your Credit Cards are over the limit which is sending the balance upwards and not downwards - you mention getting a mortgage unfortunately I very much doubt you'd get anyone to lend you the money at the moment so you need to put that out of your mind and accept that you need to deal with your debts right now with whatever funds you have available.

Pop over to the grocery challenge board - lots of support, tips and advice on there. Generally I think people tend to find if they are budgeting carefully in one area then it filters through to other areas. I use a system of envelopes where I put any cash needed into envelopes and when it's gone it's gone - this really works for me.

I agree with Pollycat, your SOA is mostly there but there's stuff you haven't put on such as Christmas etc.

Keep going it sounds like you are on the right track - it's hard work but worth it!

craftingmad

hi,

I just wanted to say hello and try and give a bit of advice (not that's it's worth much but I'll have a go!).

I agree with everything which is being said on here already. The gym costs really need to stop (even if you start again when you can afford to it - how about trying walking or jogging for a while - both are free and will give you some exercise (plus possibly cut down on travel expenses).

Also I know that you do need little treats each month but £35 for a wax is a lot of money which you really don't have. Couple this with the amount you spend on clothes each month and this is some treat. I agree that maybe try to sell some bits on ebay and use this money to treat yourself when you can afford it. I know that this may seem harse but if you carry on the way you are going you will end up bankrupt and then will not be allowed to have any treats at all!

I hated making packed lunches but after I saw exactly how much the family was spending on buying them this soon changed my mind. I don't always do sandwiches - I quite often use the leftovers from dinner the night before or add extra pasta to the pot ready for to box up when cooked for hubby to take to work. I now really enjoy making different lunches for everyone and I love seeing the extra money we have each month now we do this (it has meant that we have finally been able to buy a buy to let property) so is well worth it in the end.

With regard to earning extra money - do you work weekends? If not you could try signing up to a few mystery shopping sites and then carry out some of these at weekends? Also try completing online surveys during your lunch break, when you are at home etc - they may only be for a £1 each but they do add up and every little helps. You can also earn money from cashback sites such as quidco and topcashback so these are well worth signing up to as it costs you nothing and will hopefully give you a bit extra month.

I agree that you should not be taking out a mortgage at the moment. Maybe you could use this as the thing to aim for and inspire you to clear the debts as quickly as you can. This site is brilliant for inspiration and support so use it to its full advantage. It really helps me to have a "dream" to aim for.

Five years ago we had over £32k in debt (excluding mortgage) and with the help of everyone on this site and our lightbulb moment! we now have no debt (apart from our mortgage which we have reduced by £70k in this time) and now have managed to buy a BTL property (which will be our pension when we get old and wrinkly - not far off now!). Our new aim is to raise enough deposit to buy a second BTL property and abe able to afford a 3 week family treat to Disneyland Florida in two years time. Having this aim really helps to keep you focused on whats important and gives you the motivation to cut back a bit and moneysave like mad - I love seeing the balance climbing in the bank - everytime I pay some money in I think about what its going to buy and when I was in debt I loved seeing the balances come down. It may help you to think like this too?

Finally really agree with a spending diary - my other hal.f refused to do this but I started and he soon changed his mind when he say how much money I was actually frittering away - he was doing exactly the same and it soon made us stop those "little" things which were costing us lots.

Good luck on your journey - life really will be better without the debt with you xxxx

vka1

Hello again,

I felt a bit defensive about the lunches and bikini wax but I guess you are all right and I need to spend some time keeping the spending diary to figure out whether I can still justify spending that amount of money on it.

There's so much to take in it can be a bit overwhelming when so many folk are telling you what you could be doing differently. It'll take time to sink in, but the worst bit is over. Stick at it and we'll all be right here for more chat and ideas as you go along,

V

[Deleted User]

katerinasol wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 888 Any way to increase? Overtime? second job?
Partners monthly income after tax....... 1079.28 As above?
Total monthly income.................... 1967.28

Monthly Expense Details
Rent.................................... 400
Council tax............................. 125 Ask your council if you can spread over 12 months instead of the usual 10 (some will allow, some won't) - if not when (I know it's not anytime soon) you have your CT free months, pay the equivalent towards the highest charging debt)
Electricity............................. 50 Both this and below seem high - shop around and make sure that you are on the cheapest tariff for your area, also turn the thermostat on the heating and hot water down a few degrees (you'll never notice), also turn off radiators in rooms you're not in, don't leave things on standby etc.
Gas..................................... 50 as above
Water rates............................. 0 don't you pay this? (Ignore if you are in Scotland)
Telephone (land line)................... 15
Mobile phone............................ 50 This is high, especially as you have a landline too. If stuck in contracts see if they'll allow you to drop a tariff or two, and when contracts end/or you are already out of contract shitch to SIM only/PAYG there are some good £10 pm deals to be had
TV Licence.............................. 12.13
Internet Services....................... 0 don't you have this?
Groceries etc. ......................... 122
Clothing................................ 30 every month? Stick to essentials only
Petrol/diesel........................... if possible try and reduce or combine journeys
Road tax................................ 10
Car Insurance........................... 58.18 shop around at renewal
Car maintenance (including MOT)......... 8.33
Other travel............................ 44.4 what does this cover? Is it good value? if it's a bus ticket would a weekly, monthly, yearly, or season ticket work out cheaper?
Contents insurance...................... 14
Presents (birthday, christmas etc)...... 0 never?
Haircuts................................ 0 never?
Entertainment........................... 19.98 what doess this cover? Is it good value? Can you get the same or similar elsewhere for cheaper?
Emergency fund.......................... 50 do you actually save this every month? If so, perhapse reduce until you are debtfree
Gym..................................... 105 this is very high, can you lower the package, or switch to a cheaper gym?
Beauty.................................. 35 what does this cover? can you get the same or siliar elsewhere for cheaper? Do it yourself? Get it done at a local college? go without?
Total monthly expenses.................. 1279.02

Assets
Cash.................................... 0 where's your emergency savings?
Car(s).................................. 0 What's the value of the car?
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Debt......Monthly...APRLloyds Credit Card.............600.......50........19.9 From the info that has been included, this needs to be your priority for overpayments, once you have identified a surplus (and once you have agreed payment plans for the CT and water) in your SOA as it appears to be the debt that is charging you the most in interest - always pay the minimum towards all debts, then any surplus towards the debt that's charging you the most in interest.
Lloyds Overdraft...............2000......15........0 is this a free facility?
Natwest Overdraft..............1250......40........0 as above?
Store card.....................381.37....0.........0 is this really 0%?
Council tax....................548.......0.........0 what is the arrangement that you have made to pay this back - you need to start paying this, even if it's only token payments - it is a priority debt
Water..........................700.......0.........0 ok, this isn't included anywhere above? Again, you need to start paying this, even if it's tiken amounts
Car............................1200......300.......0 is this 0%? Is this a hire purchase?
Total unsecured debts..........6679.37...405.......-

Monthly Budget Summary
Total monthly income.................... 1,967.28
Expenses (including HP & secured debts). 1,279.02
Available for debt repayments........... 688.26

Monthly UNsecured debt repayments....... 405

Amount left after debt repayments....... 283.26 This is quite healthy, but you appear not to be making payment towards all of the debts that you have. Also, there;s roon for cutbacks in your SOA, which will increase this. If you don't have this at the end of every month then you need to keep a spending diary to identify where your cash is going - note down all spends from a coffee or a packet of chewing gum, to the grocery shopping and utility bills, to the rent and everything in between. Do this for a month or two and you will see where your cash is going.

Personal Balance Sheet Summary

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -6,679.37

Net Assets.............................. -6,679.37
Created using the SOA calculator at www.makesenseofcards.com. Reproduced on Moneysavingexpert with permission, using IE browser.

comments above,

HTH

D9