Lbm 21/1/12

tres_2

Hello. I've woken up this morning after a long night out and I think I've realised my finances are in a bit of a mess. I've been burying my head in the sand a little bit much over the past few years. I realised a week or so ago but only decided to look at it today. I'm a bit worse for wear so please excuse spelling or if something doesn't make sense.

My debt problems started at Uni. I didn't work when studying, so racked up about £18k worth of debt between 19 and 22. I was lucky to get a good degree and walk into a well paid job straight out of uni, and I am now well paid 5 years later having worked my way up. However, I work in a very competitive environment and my friends and I are always trying to outdo each other with houses, cars, phones, going out, holidays and so on. I have a very hectic life and spend a lot of time out. Work hard and play hard.

My life is enjoyable, but I think I'm living quite beyond my means. I earn just under £50k basic and rent a modern apartment, drive an 09 model Audi 3.2 TT Quattro and spend most nights out in bars, clubs, restaurants or at the gym. I go on some amazing holidays but I've got quite a lot of debt that I've built up over the last few years and some from uni. Two or three maxxed out credit cards, a loan, a car on finance. I'm barely able to keep my head above water.

I've read a couple of posts on here before and know I need to do a listing, so I've put it below. I know there are some obvious areas to save money but this is how it stands now before I have even looked at cutting down. Please dont be too harsh!

I do get a bonus at work which isn't included as I don't know in advance how much it will be. It is usually about £8-12k a year. I seem to be stuck in a cycle that I build up quite a bit of debt and then use my bonus to pay some of it off. Then the cycle starts again but each year the debt seems to be getting bigger and bigger.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2684
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2684
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 324
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 65
Gas..................................... 65
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 15
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 35
Internet Services....................... 20
Groceries etc. ......................... 150
Clothing................................ 125
Petrol/diesel........................... 150
Road tax................................ 40
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 20
Entertainment........................... 400
Holiday................................. 400
Emergency fund.......................... 0
Total monthly expenses.................. 3149

Assets
Cash.................................... 500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 16000
Other assets............................ 0
Total Assets............................ 16500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 16000....(324)......8
Total secured & HP debts...... 16000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................8000......160.......0
Credit Card 2..................6000......80........0
Credit Card 3..................10000.....150.......0
Loan...........................10000.....300.......0
Total unsecured debts..........34000.....690.......-

Monthly Budget Summary
Total monthly income.................... 2,684
Expenses (including HP & secured debts). 3,149
Available for debt repayments........... -465
Monthly UNsecured debt repayments....... 690
Amount short for making debt repayments. -1,155
Personal Balance Sheet Summary
Total assets (things you own)........... 16,500
Total HP & Secured debt................. -16,000
Total Unsecured debt.................... -34,000
Net Assets.............................. -33,500
Created using the SOA calculator at (had to remove link as a newbie)

Seeing it listed like that makes it look really bad.

[Deleted User]

wow you have lots of room to save, you must also enjoy a nice social life! :-)
Well done anyway for the start!

tres_2

I'm out most nights. Usually spend a couple of nights a week out at a bar - call it £25/night. Couple of nights will be with mates at home or at mates houses, call it £10/night to bring drink. One or two bigger evenings out (bar, club or out at a restaurant etc) at £50 a night and the rest is normally evenings in the gym.

Don't know why I bother renting a flat, I only sleep here

[Deleted User]

Maybe that should be your first big change?

SomersetSaver

tres wrote: »

Hello. I've woken up this morning after a long night out and I think I've realised my finances are in a bit of a mess. I've been burying my head in the sand a little bit much over the past few years. I realised a week or so ago but only decided to look at it today. I'm a bit worse for wear so please excuse spelling or if something doesn't make sense.

My debt problems started at Uni. I didn't work when studying, so racked up about £18k worth of debt between 19 and 22. I was lucky to get a good degree and walk into a well paid job straight out of uni, and I am now well paid 5 years later having worked my way up. However, I work in a very competitive environment and my friends and I are always trying to outdo each other with houses, cars, phones, going out, holidays and so on. I have a very hectic life and spend a lot of time out. Work hard and play hard.

My life is enjoyable, but I think I'm living quite beyond my means. I earn just under £50k basic and rent a modern apartment, drive an 09 model Audi 3.2 TT Quattro and spend most nights out in bars, clubs, restaurants or at the gym. I go on some amazing holidays but I've got quite a lot of debt that I've built up over the last few years and some from uni. Two or three maxxed out credit cards, a loan, a car on finance. I'm barely able to keep my head above water.

I've read a couple of posts on here before and know I need to do a listing, so I've put it below. I know there are some obvious areas to save money but this is how it stands now before I have even looked at cutting down. Please dont be too harsh!

I do get a bonus at work which isn't included as I don't know in advance how much it will be. It is usually about £8-12k a year. I seem to be stuck in a cycle that I build up quite a bit of debt and then use my bonus to pay some of it off. Then the cycle starts again but each year the debt seems to be getting bigger and bigger.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2684
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2684
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 324
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 116 Do you pay this each month over 10 months, or is it the total divided by 12? Usually get free Feb/Mar
Electricity............................. 65 Seems high for just one person? Is this accurate actual usage?
Gas..................................... 65 Ditto - seems high.
Oil..................................... 0
Water rates............................. 25 Seems high for one person? Are you on a meter? Can you get a meter?
Telephone (land line)................... 15 Can you combine with broadband and satellite to get a better deal?
Mobile phone............................ 45 Can you get a cheaper deal or are you tied into contract?
TV Licence.............................. 12
Satellite/Cable TV...................... 35 If you're out all the time, is this worth it? Do you actually watch it?
Internet Services....................... 20 See above - package with phone/TV?
Groceries etc. ......................... 150
Clothing................................ 125 Can you cut this back?
Petrol/diesel........................... 150
Road tax................................ 40 Seems high - is it really that high? that would be £480 per year?
Car Insurance........................... 50 Seems high but if you've a nice car then maybe that's why! Have you shopped around?
Car maintenance (including MOT)......... 50 Is this so high because of the car you've got? Seems high otherwise as you don't seem to be doing lots of mileage based on petrol costs
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60 Seems high - can you cut back or do you have a big family who expect BIG presents as you have a good job?
Haircuts................................ 20
Entertainment........................... 400 Seems low if you are out every night! Are you sure it's only this much? Obvious candidate for cutting down but then your grocery bill would probably increase (as that's quite low)
Holiday................................. 400 Again an obvious are to cut back
Emergency fund.......................... 0
Total monthly expenses.................. 3149

Assets
Cash.................................... 500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 16000
Other assets............................ 0
Total Assets............................ 16500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 16000....(324)......8
Total secured & HP debts...... 16000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................8000......160.......0
Credit Card 2..................6000......80........0
Credit Card 3..................10000.....150.......0
Loan...........................10000.....300.......0
Total unsecured debts..........34000.....690.......-

Monthly Budget Summary
Total monthly income.................... 2,684
Expenses (including HP & secured debts). 3,149
Available for debt repayments........... -465
Monthly UNsecured debt repayments....... 690
Amount short for making debt repayments. -1,155
Personal Balance Sheet Summary
Total assets (things you own)........... 16,500
Total HP & Secured debt................. -16,000
Total Unsecured debt.................... -34,000
Net Assets.............................. -33,500
Created using the SOA calculator at (had to remove link as a newbie)

Seeing it listed like that makes it look really bad.

Some suggestions above, HTH.

And well done for your lightbulb moment! Perhaps you could turn the competitiveness with friends into who can find the cheapest meal out (vouchers, other deals etc), the best deal on hols etc? i.e. don't try and fight it but use it in a better way?
SS

SomersetSaver

tres wrote: »

I'm out most nights. Usually spend a couple of nights a week out at a bar - call it £25/night. Couple of nights will be with mates at home or at mates houses, call it £10/night to bring drink. One or two bigger evenings out (bar, club or out at a restaurant etc) at £50 a night and the rest is normally evenings in the gym.

Don't know why I bother renting a flat, I only sleep here

Just realised - couldn't see a gym charge in the SOA. Have you inclued it or is it elsewhere?
SS

SomersetSaver

Could you go into a houseshare to cut back on rental, if you're only there to sleep? Would be one way to make a big saving each month at least in the short term. And then some of your other expenses may go down - eg phone/tv/satellite/council tax/bills/broadband.

tres_2

SomersetSaver wrote: »

Just realised - couldn't see a gym charge in the SOA. Have you inclued it or is it elsewhere?
SS

Sorry I should have clarified, I get free gym membership through my work. I use it 2-3 times a week so it's a good freebie.

curlytop12

hi,

it IS bad! but at least there are options and you (hopefully) have seen the light.

welcome,by the way, and impressed you've done this with a hangover.

obviously,your social life , holiday fund ,clothing costs need to be cutback as a priority,

can't understand why your gas and electric are so high if you are hardly ever at home? my 2 bedroom house and 2 of us costs £57 a month for both! check your meter readings,use a comparison site to make sure you are on cheapest tariffs,cut down your usage-don't leave lights on/thingsplugged in,heating on when you are not at home etc

phone/satellite/internet-you can DEFINATELY get these cheaper!

downgrade car, move to cheaper accommodation/take in a lodger?

and,most of all, all those mates who are trying to be one up on you-they will all be up to there eyes in debt too!

you can change your situation with the options you have at the moment,good luck

curlytop12

ps. are all your cards really on 0% apr? any shuffling you can do with them?

Superbiatch

Are you sure your income is correct? 50k basic is £4,166 before tax/NI per month.