Weighed Down by Debt

XXSCOTSLASSXX

mabbya wrote: »

£300 -School bus money, school dinner money, music lessons, voluntary donation to school, football lessons. Some payments aren't monthly but that is the maximum payment per month.

Can sympathise with you re the school money our bus, dinner money and after school club costs are £250 a month.... and very difficult to reduce... the voluntary donation tho I would seriously consider dropping this at least until you back on your feet and have firm plan in place x

LittleMissSpendALot

LBM is light bulb moment, when you realise you can't carry on with the way you have been spending, some people have more than one before really committing to getting debt free

sharronej

LMB = Your light bulb moment. It's the moment when you truly realise that you can't carry on this way, the moment when you realise that actually you may have to have the sky argument with you oh (been there done that) and that you are going to have to make some drastic (initially) and then not so drastic decisions and changes along your debt free journey. It's also hopefully the start of a brighter future, being able to sleep at night and ultimately the moment where you start to become more money savvy.

I would also like to say in the most respectful manner that it's time to look after your family first, I know my Church would understand completely if I couldn't afford the weekly donations and I'm certain yours would too. The good news is that by making some difficult decisions you can manage to bring your budget in line.

If I may suggest? Get the kids to bed tonight then make yourself a cuppa (and a choccy biscuit) and have a good look through this site, maybe even join in a few challenges? Then when you feel in a more informed position it's time to sit you OH down and show him the reality of the situation - he must be bothered on some level even if at the moment he's not showing it.

mabbya

sharronej wrote: »

LMB = Your light bulb moment. It's the moment when you truly realise that you can't carry on this way, the moment when you realise that actually you may have to have the sky argument with you oh (been there done that) and that you are going to have to make some drastic (initially) and then not so drastic decisions and changes along your debt free journey. It's also hopefully the start of a brighter future, being able to sleep at night and ultimately the moment where you start to become more money savvy.

I would also like to say in the most respectful manner that it's time to look after your family first, I know my Church would understand completely if I couldn't afford the weekly donations and I'm certain yours would too. The good news is that by making some difficult decisions you can manage to bring your budget in line.

If I may suggest? Get the kids to bed tonight then make yourself a cuppa (and a choccy biscuit) and have a good look through this site, maybe even join in a few challenges? Then when you feel in a more informed position it's time to sit you OH down and show him the reality of the situation - he must be bothered on some level even if at the moment he's not showing it.

Thanks for your advice. I have just cancelled the standing order for the £40 donation. Reduced childcare payments by £25 and hairdressers for the family by £35. That's £100 monthly reduction! £79 to go to breakeven each month, getting there!

saving4life

oldhand wrote: »

Can only offer you my best wishes,you have a long hard road ahead but as others have said you are making the effort.As for your OH being "not really bothered" do you think he actually realises how bad things are or is he burying his head hoping it will go away? You really need to get him working with you on this but as a last resort perhaps you would be better off without him.

gosh, thats a bit harsh!
good luck on your journey.

gfplux

With your incomes, properly budgeted you could live the good life.
However you are spending money twice and you are in trouble of you carry on.
If AFTER debt repayment you have x left each month THAT IS WHAT YOU HAVE LEFT TO SPEND, not more or less.
When you both GET THAT then you will have had your LBM.
good luck

sharronej

Well done on your progress so far, something else you can do right now (or tomorrow) is to make a list of all the food in your house and then pop over to the Old Style Moneysaving Forums where you will be able to get all kinds of help making up meal plans with what you've already got and work out the minimum you need to spend.

If you have half an hour on Sunday jump on the comparison sites for the Gas and Electric - even if you can't save money if you can get onto a fixed rate then that safe guards you for this winter. Imagine how good you'll feel on Monday knowing you've already taken half a dozen positive steps.

Another must is a spending diary - you'll be amazed where your money goes! I have a book where I write my entire house budget incomings and outgoings alongside any unexpected spends - my unexpected spends are then catergorised as a need or want, it really focus' the mind! I use envelopes for all the things I need cash for and have gone from never having any money spare to saving up £1400 in three months - I'm so proud of myself lol

I struggled to get my OH on board and I'd still say he's only 80% of the way there, it does make it harder BUT it can still be done and yesterday he said he thought I'd done really well with the finances so perhaps now he's 85% of the way there - he'll catch me up I'm sure.

pleasedelete

Your credit card repayments don't seem to make sense. Are you paying some or all more than minimum?

Are you focusing extra payemnts to those with high interest/larger repayments.

Virgin is only interest plus 1 per cent. If yours are interest free then 1 per cent but you seem to paying more? That's illogical if it's on zero per cent.

danielanthony

what about going interest only on the mortgage until the other debits are paid off?

merlot123

mabbya wrote: »

Hi all,

Joined the team a few days ago. Really weighed down by debt, can't seem to think of anything else! OH is not really that bothered. I thought we were managing monthly payments until I did an "SOA"! The stark reality!

Please help! See SOA below:



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 3085
Partners monthly income after tax....... 1250
Benefits................................ 188
Other income............................ 0
Total monthly income.................... 4523
Monthly Expense Details
Mortgage................................ 968
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 121
Electricity............................. 51
Gas..................................... 91 far too high
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 12
Mobile phone............................ 50 too high
TV Licence.............................. 12.5
Satellite/Cable TV...................... 47 reduce to basic or get rid of
Internet Services....................... 12
Groceries etc. ......................... 500 reduce by £100
Clothing................................ 50
Petrol/diesel........................... 80
Road tax................................ 25
Car Insurance........................... 45
Car maintenance (including MOT)......... 50
Car parking............................. 5
Other travel............................ 103
Childcare/nursery....................... 50
Other child related expenses............ 300 Pack lunches are required,
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 44.5 This seems high each month
Contents insurance...................... 0
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 100:eek: This is a silly amount of money each month
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
association............................. 10
professional subscriptions.............. 20
child trust fund........................ 57.5 You cannot afford this
swimming lessons........................ 50 Do the children not getting swimming lessons at school?
homecare 400............................ 43
homecare assist......................... 3
donation................................ 40 Must go, and I see you have cancelled it
family.................................. 45
lebara.................................. 20
Total monthly expenses.................. 3120.5

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 100
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 251100

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 188000...(968)......2.89
Total secured & HP debts...... 188000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
halifax loan...................5379.43...145.......12.04
sainsbury loan.................5549......149.......0
m & s loan.....................2472......224.......6.6
argos card.....................34........34........0
virgin credit card.............2100......160.......0
barclaycard mc 1...............4726......108.......0
barclaycard visa...............11475.....263.......0
halifax cc.....................7716......85........6.9
personal.......................2580......100.......0
halifax overdraft..............2000......31........0
barclays overdraft.............2550......33........0
sainsbury cc...................1700......50........6.9
g e capital....................3500......95........19.56
barclaycard mc 2...............2600......105.......0
Total unsecured debts..........54381.43..1582......-

Monthly Budget Summary
Total monthly income.................... 4,523
Expenses (including HP & secured debts). 3,120.5
Available for debt repayments........... 1,402.5
Monthly UNsecured debt repayments....... 1,582
Amount short for making debt repayments. -179.5
Personal Balance Sheet Summary
Total assets (things you own)........... 251,100
Total HP & Secured debt................. -188,000
Total Unsecured debt.................... -54,381.43
Net Assets.............................. 8,718.57

I can find your shortfall easily, reduce groceries £100, pack lunches for the children £80, donation £40, reduce haircuts £50, reduce Sky package £25 (thats giving you the basic package of approx £22 per month, I'm being generous).

You and your OH need to get on board, you have a very good joint income but yet you have over £50K of debt, you must ask yourself how has this happened? and you need to start tackling it today, it going to take years to repay this debt, and please don't take this the wrong way, but I do not think the reality of your situation has sunk in yet, otherwise the SKY, mobile phone contract would have been reduced and you would be talking about packed lunches etc.

With an income of over £3k per month, I assume you are in the higher tax band? If so, you will lose your child benefit from April 2013, you need to factor this in as well, child tax credits are to go from April 2012 (if you get the basic), that is another £188 per month you will need to find.

Having said all the above, well done for posting your SOA, never an easy thing to do, and the peeps on here are not being harsh, just honest, and your situation needs honesty.
merlot123