Hoping to join you

makinganeffort

Hi

I have been looking at this board for a while along with the main site but I would really like to join you for support. So here is my story...

I recently have started earning a good salary but am plauged by previous poor financial management while a student and then on a lower salary, periods of maternity leave and a recent home move!!

I have carelessly built up debts on credit cards for purchases that probably were not necessary.

I have decided that this year I want to pay off the bulk of my debt related to non-tangible assets and then consider whether the car loan is more cost effective to refinance with a 0% card.

Following your instructions in the stickies I detail below my SOA. My plan is to stick to the budget below and then pay extra off the credit cards (lloyds and MBNA) at the end of the month with anything left. I've tried to budget for unexpected purchases as well (in November this will have to include car insurance).

Note: Both MBNA and Lloyds are 0% until September. I don't have overdrafts - I cleared these last year as they were the most expensive. Hooray!

Any support welcomed. Particulary I need this when I get the urge to buy something I don't need!! (Although I am finding that if I wait 2 days the urge usually passes (or is surpassed!))

thanks

In (£3499)
Salary £2625
Input from partner to cover joint expenses paid from my account £740
Child benefit £134.8


Out (£3254)
Mortgage £1202.85
Council tax £144
Food £368
Fuel (car) £90
Contact lenses £15
Mobile Phone £42
Sports (kids swimming * 2 + kids clubs + yoga class) £94
Standard Life £50
NSPCC £5
Car Loan £226.06
TV license £12.12
Account fee £17
Gas £85
Electric £85
Water £40
Monthly "allowance" £130 (£30 per week)
Unforseen purchases £150 (kids clothes, school clubs/trips)
School meals £32.5
MBNA £150
Lloyds £150
Family loan for house £166

Owe
MBNA £4620 (0% to Sept.)
Lloyds £850 (0% to Sept)
Family loan for house £10000 repayable over 4 yrs as convenient - budget to pay linearly
car loan £12500 over 5 years, 8.9%, 3 years to go (not sure current balance)

Tixy

Hi and welcome on board

Good new about now earning better money, and wanting to tackle things.

Also good news that the cards are 0%

makinganeffort wrote: »

In (£3499)
Salary £2625
Input from partner to cover joint expenses paid from my account £740
Child benefit £134.8


Out (£3254)
Mortgage £1202.85
Council tax £144
Food £368 is this for 4 of you? - you could possibly make some savings here if you wanted to clear debts quicker - although I wouldn't say it was essential you did
Fuel (car) £90
Contact lenses £15
Mobile Phone £42
Sports (kids swimming * 2 + kids clubs + yoga class) £94
Standard Life £50 what is this? life insurance? have you shopped around to check its a good deal?
NSPCC £5
TV license £12.12
Account fee £17 what benefits do you get with this account? are they worth the fee?
Gas £85 gas & elec look high - are you paying off arrears? how recently have you shopped around to see if you are on the best tariff / cheapest supplier?
Electric £85
Water £40
Monthly "allowance" £130 (£30 per week)
Unforseen purchases £150 (kids clothes, school clubs/trips)
School meals £32.5
have you budgeted anywhere for road tax? car insurance? car maintenance costs including tyres, servicing MOT etc
Have you budgeted for presents / haircuts etc? is this all out of the £30 pw and is it sufficent.
Have you budgeted for building & contents insurance?

Car Loan £226.06
MBNA £150
Lloyds £150
Family loan for house £166

Owe
MBNA £4620 (0% to Sept.)
Lloyds £850 (0% to Sept)
Family loan for house £10000 repayable over 4 yrs as convenient - budget to pay linearly
car loan £12500 over 5 years, 8.9%, 3 years to go (not sure current balance)

makinganeffort

Thanks for the comments. In answer to the questions:

The standard life is an ISA. I am investing into this for the children. Started when they were born. I really don;t like to change this if I have to. The rate of interest is good for an ISA.

Foodwise I spend approx £75-95 per week on food for the family of 4, plus 2 cats. This shop includes all beauty products, toothpaste, washing powder etc. Where I can I buy from costco (my husband is self employed) or chinese supermarket to get the bulk discounts the rest is tesco.

This spend also include lunches for me for work. We do eat well, but we don't go out as we have two small kids. I am gradually getting more time to go back to cooking from sratch and this is beginning to make a difference to the weekly spend. I got out of the habit with my cling-on baby that wouldn't sleep

I order online from tesco to ensure I don't buy what don't need and don't panic buy a load of stuff to shut up two screamy kids I buy on a tesco credit card (paid in full each month) to maximise my points. I use the points to turn into dry cleaning vouchers.

The gas and electric I pay each quarter when the bill comes in. In winter they are about £250 each. In summer electric is around £250 and gas about £120. I run two bank accounts - one for food and spends and one for bills. The £85 for each utlity is paid over each month and then the bill paid from here. I know that DD can work out cheaper but as its a new house I am trying to estimate a years consumption first as they want a very high monthly payment at the moment (only moved in in October). I am with british gas. I probably could look at saving here.

I agree that I haven't accounted for car running costs. My car is only 2 years old and doesn't need an MoT this year (you get 3 years off when new). Also I prepaid a 3 year service plan when I bought it so I don't have to pay service charge this year either. The car passed its service last month. All clear. Tax is £35 and paid up to January 2013.

I have paid my house insurance already in full this year - renewal February 2013. Car insurance due in November. I should probably save for this - it'll be about £300. So if I break that down bewteeen next payday and November: I'll add £33 pcm to the budget under car. Thanks for the spot.

The budget for other incidentals of £150 probably could be increased. I admit I do always seem to spend that "gap" between In and OUT so it probably does go on presents etc. I'll increase that.

The weekly "allowance" usually does cover things like haircuts. I tend to withdraw all the cash and divide it into "weekly envelopes" how sad is that!!! I then can look at how much cash is left and make that decision as to whether things are worth it. I find its easy paypal purchases on the internet that are the killer - bored at work...surfing around - oh look they take paypal - don't even need my card!!!!! Aaargh!!!

I do also need to look at the account fee. I like to have the AA cover but this year we are not going on holiday so I don't need family worldwide travel insurance. Also I am not OD so don't need the £250 interest free service any more. For some reason I am nervous that they will be funny if I try to revert back to a basic account?? Anyone got any experience of this?

It's amazing how it all adds up. I am just hopeful that if I sort it out now then all that money I am paying out on loans will be mine!!!!

thanks