Time to address the finances...

rising_from_the_ashes

Well done for posting it ... I know it's not the easiest thing.

A few comments from me which I hope help / provide food for thought!:D

Aamberle wrote: »

Well here it is..

Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly income after tax................ 2400 Do you both earn exactly the same amount? (just a bit odd)
Partners monthly income after tax....... 2400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4800


Mortgage................................ 1157
Secured/HP loan repayments.............. 911.69
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 25.33
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 7.5 This needs to be £12.12
Satellite/Cable TV...................... 90 Sorry but not an essential - switch to Freesat - you can get landline & broadband for £25 / month
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50 On the high side, try to reduce - use what you've got - ebay stuff etc
Petrol/diesel........................... 450
Road tax................................ 10
Car Insurance........................... 37.5
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Need to put something in here
Pet insurance/vet bills................. 40
Buildings insurance..................... 25 Really high - check comparison sites
Contents insurance...................... 30 As above - as a comparison I pay £15/month for both
Life assurance ......................... 95 Really high - try comparison sites etc & post on the Insurances Board for expert advice on what cover you need etc
Other insurance......................... 120 Really high - what's this for?
Presents (birthday, christmas etc)...... 0 Need to put something in here
Haircuts................................ 40 High for every month - reduce to £10. Try a low maintenance cut / extra couple of weeks between visits / student nights etc
Entertainment........................... 0 Need to put something in here, even £20
Holiday................................. 0
Emergency fund.......................... 0 Need to put something in here, around £50 to cover household appliances / repairs etc
Total monthly expenses.................. 3514.03


Assets[/b]
Cash.................................... 185
House value (Gross)..................... 205000
Shares and bonds........................ 0
Car(s).................................. 20000 Think you need to take out the value of the leased car from this ... as it goes back at the end of the hire period, you do not gain any residual value from it (sorry)
Other assets............................ 1500
Total Assets............................ 226685


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 164000...(1157).....0
Hire Purchase (HP) debt ...... 29673....(911.7)....0
Total secured & HP debts...... 193673....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
santander......................1400......100.......22.9
creation.......................13800.....300.......0
Total unsecured debts..........15200.....400.......-


Monthly Budget Summary
Total monthly income.................... 4,800
Expenses (including HP & secured debts). 3,514.03
Available for debt repayments........... 1,285.97
Monthly UNsecured debt repayments....... 400
Amount left after debt repayments....... 885.97

Personal Balance Sheet Summary
Total assets (things you own)........... 226,685
Total HP & Secured debt................. -193,673
Total Unsecured debt.................... -15,200
Net Assets.............................. 17,812

As you say, a spending diary is a must - you have a healthy underspend each month which could be going towards the debts

Sorry if I''ve missed it - where is the £400 / month for the car on your outgoings?

A few cutbacks suggested - worth having a think about them. Good luck

ms_london

Hi Aamberle

Welcome to MSE and taking the big step of posting your SOA, rising from the ashes has made some good points.

You need to get your other half on board if you want to tackle the debts and pay more than the bare minimum each month - I used to owe £19,000 and paid it all off on a salary a £1,000 less than you each month - just shows that it can be done with determination and sacrifice.

You've already mentioned keeping a spending diary, can highly recommend this and it is quite scary how those odds and ends soon add up!

Good luck xx

nearlyrich

Aamberle wrote: »

HI NEARLYRICH - Sorry probably am being blind but where are the stickies you mention? Thanks

http://forums.moneysavingexpert.com/forumdisplay.php?f=76

At the top of the DFW board we have stickies with ideas for newbies about where to start to tackle problem debts...:money:

hp48910

Just wanted to say welcome. I'm also quite new on here and have just started my DFW diary. There is such a lot of fantastic supprot and advice on here, you've definitely come to the right place. Good luck with your journey.

camuk81

If your OH is anything like mine he is oblivious to it! Try showing him the snowball calculator

http://www.whatsthecost.com/snowball.aspx

Might make him face up to handing more cash over

Aamberle

Thanks again all for your comments and suggestions..
Rising - Yes we do earn the same - except OH has a bonus on top if he hits all targets paid once a year - but have to wait until October until next one, and missed the last one so I took it out.
The insurance you mention is for medical insurance - OH has had a few operations over the years and this was done through BUPA - so have kept this up at the moment until he fully recovers as if we let it lapse and join another, I am told that the existing conditions will not be covered, and that is something we cant afford to take the risk with.
The rest you mention I will look at and have amended..

Anyway back to Tuesday -
Well made it up ( 5.15am) silly time for getting up :-). It is pouring with rain, and howling gales oh joy my journey to work is to be..just as well I have some music to keep me company on the way. Also if this weather carries on, my NSD plans may go out of the window as I may need to invest in a boat and a wet suit..which trust me, in my shape and size would not be a good look :-)..

Enjoy your Tuesday x

Aamberle

Well its been a while, but signed in as some need some advice..or maybe just need to rant ( maybe a little) but first the good news...

We have managed to pay off £10k in last few months. Had an unexpected payout from the PPI claims so all good. Was not in the account long enough to register :-)..So we now have 1 loan and 1 credit card completely paid off and closed woohoo..So new total is yes I cannot believe myself a mini wave/dance celebration even OH was excited...Yes ok the truth is out I am slightly maad...

I have been reading and taking advice on here about making small payments little and often i.e. when I sell things through ebay etc.Now I am worried that if I continue to do this that they will not let us move in the future..
But the sad thing is now I am not making little payments, I have gone really down again about the amount we owe..I know we have paid off an unexpected amount..but I was all motivated to keep chipping away with my little target areas and it almost became a game for me.I would challenge myself to list and sell so many items a such and such a price..But not now - I seem to have lost interest as it all gets lost into the black hole that is my bank account :-).

My question for those of you that have not fallen asleep through my post is...

Do I just carrying on chipping away? Deal with the mortgage company in 3 months or so time? Or stop...Try and work a way to motivate myself to do another way..

Any advice greatly received as I really am at a loss..

sugarcube84

Could you not carry on ebaying and watch the amount grow in your paypal account through the month and then transfer to your account in time to make your credit card payment?

I find watching the amount go up much more satisfying!!

Aamberle

Morning All, Well it feels like forever since I last actually posted! But I have been lurking and reading in awe at the sheer magnitude of the way people are working on clearing their debts, it is amazing and also wonderful to think that so many people are addressing things..
A little update from me as I need to get back in the swing of money saving and clearing debt ASAP..
Mr A and I have been still focussing on reducing our debts, but with a lot of personal challenges ( wont bore you ) it has not been as focussed as it should/could of been...
Anyway I am back on track - going to use the Easter break to get sorted properly but as a quick update for my own sanity we now have..
1 x CC paid off, 1 x loan paid off, 5 x CC's left and 2 x loan left.
Values to follow, over the weekend as we have some credits due from various companies, so I will work out where we are! But I need to stay positive and not look at how much we have left but what we have achieved..It is not huge but it is a start...Be back sometime over the weekend..
Hi Ho Hi Ho it is off to work I go...
Have a good Thursday Everyone xx

Aamberle

Just a little update - mainly to give me the kick up the a@@ I need.
I still read everyone's diary and feel truly inspired and then just carry on with life..I thought I would type a little update, hopefully so it gives me the motivation I need..Sadly the debts have increased and all had to go on cards..however we should be seeing some of this back, although not all..but hey we are where we are and I need to focus on that!

So off to change my signature..For Target 2. It increases to £1200.00 But once I have some refunded then I am only due to pay £300 and some interest..so I will start sorting EB stuff to list at the weekend.
I really ned to update this diary more often, as if this is what happens I may write about 200 entries and then be clear by breakfast..ha ha

Night All x