Want to be debt free

eecjwd

I have been looking on this website for about 6 months, I have decided today that I want to be debt free just need to convince my husband we need to cut back on our spending in order to pay more of our debts off.

Not sure where to start really. I would be very grateful of any advice anyone can give please.

I have listed all my debts below and didn't realise how bad it really is

merlot123

http://www.makesenseofcards.com/soacalc.html

Welcome to MSE and the Debt Free Board.

If you fill in the SOA (link above) and press the MSE button at the bottom of the SOA, we will be able to advise you on how to reduce your outgoings.

merlot123

eecjwd

Here it is



Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 2300
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3700

Monthly Expense Details
Mortgage................................ 930
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 75
Gas..................................... 85
Oil..................................... 0
Water rates............................. 41
Telephone (land line)................... 45
Mobile phone............................ 100
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 35
Car Insurance........................... 90
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 80
Pet insurance/vet bills................. 11
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 40
Other insurance......................... 120
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 20
Total monthly expenses.................. 2949.37


Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 254000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 196862...(930)......0
Total secured & HP debts...... 196862....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Black horse....................8533......268.......0
capital one....................1215......62........0
nationwide.....................603.......20........0
parents........................2400......100.......0
friend.........................2300......100.......0
littlewoods....................70........10........0
natiowide......................1250......60........0
halifax........................3356......45........0
tesco..........................233.......10........0
lloyds.........................999.......50........0
tesco..........................1109......56........0
barclaycard....................707.......20........0
Total unsecured debts..........22775.....801.......-


Monthly Budget Summary
Total monthly income.................... 3,700
Expenses (including HP & secured debts). 2,949.37
Available for debt repayments........... 750.63
Monthly UNsecured debt repayments....... 801
Amount short for making debt repayments. -50.37

Personal Balance Sheet Summary
Total assets (things you own)........... 254,000
Total HP & Secured debt................. -196,862
Total Unsecured debt.................... -22,775
Net Assets.............................. 34,363

J4mes

eecjwd wrote: »

Here it is



Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 2300
Benefits................................ 0
Other income............................ 0 Get eBaying those old toys/childrens clothes!:)
Total monthly income.................... 3700

Monthly Expense Details
Mortgage................................ 930
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 75
Gas..................................... 85
Oil..................................... 0
Water rates............................. 41
Telephone (land line)................... 45 Very high!
Mobile phone............................ 100 Very high, any chance of PAYG?
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500 Definate area for savings of at least £100-200
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 35
Car Insurance........................... 90
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200 What is this?
Medical (prescriptions, dentist etc).... 80
Pet insurance/vet bills................. 11
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 40
Other insurance......................... 120 What is this? Product insuarance? Can you cash these in/cancel?
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0 Really??
Holiday................................. 40
Emergency fund.......................... 20 This will be better being paid off a CC.
Total monthly expenses.................. 2949.37


Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 254000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 196862...(930)......0
Total secured & HP debts...... 196862....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Black horse....................8533......268.......0 Interest Rates for all??
capital one....................1215......62........0
nationwide.....................603.......20........0
parents........................2400......100.......0
friend.........................2300......100.......0
littlewoods....................70........10........0
natiowide......................1250......60........0
halifax........................3356......45........0
tesco..........................233.......10........0
lloyds.........................999.......50........0
tesco..........................1109......56........0
barclaycard....................707.......20........0
Total unsecured debts..........22775.....801.......-


Monthly Budget Summary
Total monthly income.................... 3,700
Expenses (including HP & secured debts). 2,949.37
Available for debt repayments........... 750.63
Monthly UNsecured debt repayments....... 801
Amount short for making debt repayments. -50.37

Personal Balance Sheet Summary
Total assets (things you own)........... 254,000
Total HP & Secured debt................. -196,862
Total Unsecured debt.................... -22,775
Net Assets.............................. 34,363

Made some comments, hope they help!!

eecjwd

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 2300
Benefits................................ 0
Other income............................ 0 Get eBaying those old toys/childrens clothes!
Total monthly income.................... 3700

Monthly Expense Details
Mortgage................................ 930
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 75
Gas..................................... 85
Oil..................................... 0
Water rates............................. 41
Telephone (land line)................... 45 Very high! This includes internet and tv it is all one package which has just been downgraded to the minimum
Mobile phone............................ 100 Very high, any chance of PAYG? This is for for 4 phones
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500 Definate area for savings of at least £100-200
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 35
Car Insurance........................... 90
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200 What is this? This is for swimming lessons, rugby, cricket, scouts, cubs & Gym for 4 children
Medical (prescriptions, dentist etc).... 80
Pet insurance/vet bills................. 11
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 40
Other insurance......................... 120 What is this? Product insuarance? Can you cash these in/cancel? this is 2 endownments for part of our mortgage, Washing machine and tumble dryer insurance which I have used about 5 times
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0 Really?? do not go out at all just childrens bits which is in the £200 above
Holiday................................. 40
Emergency fund.......................... 20 This will be better being paid off a CC. needed it when my oven went wrong last month as i do not have any cards as i have cut them all up
Total monthly expenses.................. 2949.37


Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 254000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 196862...(930)......0
Total secured & HP debts...... 196862....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Black horse....................8533......268.......0 Interest Rates for all??
capital one....................1215......62........0
nationwide.....................603.......20....... .0
parents........................2400......100...... .0
friend.........................2300......100...... .0
littlewoods....................70........10....... .0
natiowide......................1250......60....... .0
halifax........................3356......45....... .0
tesco..........................233.......10....... .0
lloyds.........................999.......50....... .0
tesco..........................1109......56....... .0
barclaycard....................707.......20....... .0
Total unsecured debts..........22775.....801.......-


Monthly Budget Summary
Total monthly income.................... 3,700
Expenses (including HP & secured debts). 2,949.37
Available for debt repayments........... 750.63
Monthly UNsecured debt repayments....... 801
Amount short for making debt repayments. -50.37

Personal Balance Sheet Summary
Total assets (things you own)........... 254,000
Total HP & Secured debt................. -196,862
Total Unsecured debt.................... -22,775
Net Assets.............................. 34,363


Have tried to justified these but am going to sit down with my husband tonight to go through everything

J4mes

I think maybe the biggest possible saving area is the groceries, try the old style board for some tips, though you're obviously busy with working/kids/life so some of it may not be workable, but definately worth a look.

Also with regards to emergency fund see:

http://www.moneysavingexpert.com/savings/pay-off-debts

Makes sense, well it converted me anyway!

eecjwd

Have taken on board the shopping, have done my last two shops at aldi and only brought what I needed for that week. By my calculations I should have cut £200 of my shopping bill this month.

On the downside tho, I had calculated our petrol wrong it should be £300.00.

so there goes £100.00 of my food saving.

I should receive a cheque in the next couple of weeks for an insurance claim I am expecting it to be about £1200 therefore I intend to pay off Capital One CC which has a APR of 28.9 and I am currently paying £28.00 interest for each £60 I am paying off I will then use that £60.00. to pay of one of my other debts.

I will get there, I am going to start looking for things to sell on ebay to enable me to pay things of quicker.

eecjwd

Have taken on board the shopping, have done my last two shops at aldi and only brought what I needed for that week. By my calculations I should have cut £200 of my shopping bill this month.

On the downside tho, I had calculated our petrol wrong it should be £300.00.

so there goes £100.00 of my food saving.

I should receive a cheque in the next couple of weeks for an insurance claim I am expecting it to be about £1200 therefore I intend to pay off Capital One CC which has a APR of 28.9 and I am currently paying £28.00 interest for each £60 I am paying off I will then use that £60.00. to pay of one of my other debts.

I will get there, I am going to start looking for things to sell on ebay to enable me to pay things of quicker.

eecjwd

Well I have today managed to pay off two debts completely

My husband had some extra money come in and I have received money back from Halifax from when we moved our mortgage a few years back.

I am in the process of writing to our old credit card companies to see if I can get any more money refunded.

beanielou

Great news on paying off two debts completly :j

chevalier

My comments are in blue

eecjwd wrote: »

Here it is

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 2Do you need both of these? Could one person walk, cycle?

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 2300
Benefits................................ 0 Don't you get any child benefit?
Other income............................ 0 Can anyone in the family get extra work, do surveys, mystery shopping, sell on ebay, facebay?
Total monthly income.................... 3700

Monthly Expense Details
Mortgage................................ 930 Can you go interest only on this or have a mortgage holiday to pay off the more expensive debt? Is your mortgage on the best rate you can get?
Council tax............................. 170 Ouch are you sure you are in the correct band? Can you opt to pay over 12 months not 10 in order to even out the payments. Or else do you make sure that the 170 you have for feb and mar, are paid off something specific?
Electricity............................. 75 I am guessing that you have at least some older children as you have 4 mobiles! So can you make sure they know not to leave devices on standby, as this wastes energy.
Gas..................................... 85 Also is this and the electric the actual monthly price, or are you working on estimates? Do you have a large credit built up? If you aren't going to get through that on the next bill ask for a refund. Better you pay that off your debts now, than sit in their account.
Oil..................................... 0
Water rates............................. 41
Telephone (land line)................... 45 If you have 4 mobiles do you need a land telephone. Is the bundle for the broadband etc the best deal.
Mobile phone............................ 100 As this if for 4 phones, this isn't bad, but make sure everyone knows about not going over minutes, if any of these are for children.
TV Licence.............................. 12.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 500 Think it has already been mentioned about cutting back here. So down shifting brands and checking what you already have in the house to actually use this stock up (I was guilty of this. Having cupboards and freezer stuffed full of food, and thinking there was nothing to eat. Just needed a bit of thought).
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 35
Car Insurance........................... 90 I know this is for 2 cars, but it is still quite high. Can you get a better deal, or else get a different car such that the insurance class is lower?
Car maintenance (including MOT)......... 40 do you really save this, think about a different account to put the yearly bills money into, so that is definitely there.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200 I feel your pain with this. Are any of your children good enough to get sponsorship with their sport. Or could you quietly ask family to help out with these costs?
Medical (prescriptions, dentist etc).... 80 would a prescription certificate help with these costs. If one person gets more than one medicine a month, then it works out cheaper.
Pet insurance/vet bills................. 11
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 40is this the best deal.
Other insurance......................... 120 have you checked that this will pay out to cover the mortgage?
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0what never?
Entertainment........................... 0
Holiday................................. 40
Emergency fund.......................... 20
Total monthly expenses.................. 2949.37


Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 254000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 196862...(930)......0
Total secured & HP debts...... 196862....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Black horse....................8533......268.......0 you need to know what the APR's are on all of these debts. That way you can snowball it efficiently so you pay less interest.
capital one....................1215......62........0
nationwide.....................603.......20........0
parents........................2400......100.......0
friend.........................2300......100.......0
littlewoods....................70........10........0
natiowide......................1250......60........0
halifax........................3356......45........0
tesco..........................233.......10........0
lloyds.........................999.......50........0
tesco..........................1109......56........0
barclaycard....................707.......20........0
Total unsecured debts..........22775.....801.......-

Well done on paying off a couple of debts already. Probably best to throw all of the money saved at the next debt.
Monthly Budget Summary
Total monthly income.................... 3,700
Expenses (including HP & secured debts). 2,949.37
Available for debt repayments........... 750.63
Monthly UNsecured debt repayments....... 801
Amount short for making debt repayments. -50.37
So it probably won't take all that much to balance the books at least. Are any of the kids old enough to get a saturday job, to pay for their mobiles? Or do they get the child benefit already, but have to pay for their stuff? That is what my mum did with me when I was 12. I got the child benefit, but after that the only thing she would buy for me was school uniform. The rest was down to me.

Personal Balance Sheet Summary
Total assets (things you own)........... 254,000
Total HP & Secured debt................. -196,862
Total Unsecured debt.................... -22,775
Net Assets.............................. 34,363

Good luck with your debt busting. My guess is that once you actually focus on reducing your outgoings, your debts will fall quite quickly.
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