How do I get out of this rut?

Uncle_Chunk

oops - was just doing it for the last month really!

clothes I've really tried to cut down on, due to lack of funds (or I buy through next on my account)

MOT and car tax were both in December. £45 for the MOT. £60 for the car tax (half a year)

Haven't had my haircut by a proper hairdresser since the summer (my mate did it for free a few months ago - but just can't afford it)

Should this SOA be for a year then, as you said about xmas presents spend?!

Will start a money diary today to work out just how much I'm spending on food and "bits and bobs!"
thanks

CLAPTON

you need to work out your spending for the next 12 months then divide the annual/irregular figures by 12 and add them to your monthly budget.

so then you can see all your spending and of course because you have to save up those monthly amounts in a savings a/c so the money is available when you need it and so you dont have to increase your debts by borrowing money on credit cards.

also can you arrange your SOA in this fashion as its alot easier to read

An SOA Statement of Affairs

a. list of income and a total
b. a detailed list of spending (include mortgage and secured debt but exclude unsecured debt)
c. a total of spending as above
d. now you can see how much you have to pay debt monthly by forming income minus spending
e. a list of unsecured debts
i.e. debt amount, minimum monthly debt repayment, APR for CCs
and amount outstanding, monthly payment and number left to pay for loans
f. a total of unsecured debt and of monthly unsecured debt repayment
also say if you rent or buying , if so how much is the house worth and how much the mortgage, also your general situation: partner, children, working etc.

- start a spending diary
-break down rent and bills

in your case you can easily make an immediate impact on your situation by cancelling the gym and reducing social to say 50 giving you an easy 155 to use to reduce your overdraft.

sanfrancisco

Uncle_Chunk wrote:

clothes I've really tried to cut down on, due to lack of funds (or I buy through next on my account)

NO NO NO!!!

STOP THIS!

This is unsustainable and you are just putting off todays problems, until tomorrow. You really cannot do this anymore.

To be honest, it does not look like you have cut back as much as possible. Gym, social etc are luxuries that you cannot afford.

adypem

Uncle_Chunk wrote:

Ok - here goes :undecided

Next account – Minimum amount - £49 (though this should decrease, as I’ve just taken lots of stuff back!)

Topshop Card - £5 – minimum amount.
Gym - £55 (never use, should quit –but there’s always a chance I’ll go!!!)

Welcome,
As others have already said, ditch the gym as you say you don't use it.
Also what are the balances on next account and Topshop card, these tend to have very, very, very high APR....

Uncle_Chunk

wowser - sounds complicated! I'll have a go at the yearly budget thing at the weekend when I have time to think!

As for "my situation" - I live with my boyfriend in a rented house. the £600 is rent (415 each) and a little bit extra that we put in for the bills and for a rainy day (or emergencies). I have no kids and work a full time job.

I don't have any secured debt (at least I don't think I do) I have no mortgage.

I guessed at my social costs, to be honest I don't go out all that much! mainly for dinner or a few none alcoholic drinks with the girls. However my vice is singing lessons and these are £15 a pop, I really don't want to give these up (esp as I've just got a part in a show), but will be a good girl and change them to everyother week (though it's so embarrassing giving the reason constantly as I'm skint!)

I will start a diary.
and I will look at our bills and see if we can both save at U-Switch

Cheers
Chunks

Uncle_Chunk

sanfrancisco wrote:

NO NO NO!!!

STOP THIS!

This is unsustainable and you are just putting off todays problems, until tomorrow. You really cannot do this anymore.

To be honest, it does not look like you have cut back as much as possible. Gym, social etc are luxuries that you cannot afford.

That's cause I've only just had my "lightbulb moment". havent cut any luxuries like the gym as I was in denial!. Social I made up and don't really often go out at all.

I am cutting back, the only thing I've bought (clothes wise) in the last 3 months is a £10 cardigan that was in the sale!

maninthestreet

Minimise your outgoings, increase your income:

Cut out the booze, or reduce the amount you spend on it significantly.
Same goes for socialising.
Get rid of the Topshop card, assuming this is one of those 'rolling' credit
accounts where you are obliged to pay a minumum amount each month, even if you have an account balance that is in credit.
Check that your utliity suppliers are the cheapest for you - use uswitch.com to compare costs.
Cancel gym membership if you are not using it, but check your contract for any hidden charges related to cancelling membership.
Consider temporarily suspending your charity donations.
Have a good de-clutter at home, see if you can find anything that you can sell on ebay or at a car boot sale.

appleyard

I guess the point that Sanfrancisco is making is that when you say "I don't spend a lot on clothes or I just put it on my Next account" (sorry to paraphrase you) means that you see your Next account as a way of not paying for things.

its easy to think like that with a credit card but in the end it bites you on the rear like its done to me.

In reality you're borrowing off your future salary rather than this month's salary, that's the only difference.

We're making a concerted effort not to borrow any more from the future as next month is not going to be any prettier than this month!

I hope this makes sense. No one is having a pop at you, you're just having a period of mental readjustment like we're all doing / have done.

Its not a nice process but it'll make you feel better in the long run. I feel an awful lot better about it now I have it under control and am realistic about what I've done and what I need to do to rectify it. One of the biggest surprises is that although I see my debt as a dirty secret I can't tell anyone about, it would appear that most people have debt, they just don't talk about it.

misspoppy

Hi

When you do you SOA for the year use the link at the top of the page called DFW resource bar one of the items is a bidget planner. Its a spreadsheet that works out your annual spend by reminding you about items and you fill it in according to wether its monthly or annually. Its very helpful. It might be worth going through several months worth of bank statements in order to complete this.

Uncle_Chunk

Yeah, I know appleyard. I guess you can't help but be defensive in these situations, you feel stupid and you know it's all your fault! plus your scared out of your mind as you can't see how your going to meet the payment for your dd's.

Luckily I have a very supportive boyfriend and family who will help me out - but it would have been nice to do it independantly.

I know I could be in worse situatioin, and compared to many I'm lucky - still aint fun though!

The belt has been tightened all "gym is suspended (though will take a while to get stop payments, contract obligations and all that!) and in the red here I come!