Intend to be Sorted by September!

myteeduck

Haha! I just found my previous post I thought i'd lost - I'm loosing my mind!

I bought my car insurance this week - now have a total of £1042.69 on the credit card

However I have given the card to mum and I have given myself a deadline of July 2013 to clear it

Nice to have a deadline again.

I will be rid of credit cards I promise!

Till next time x

HeadAboveWater

Hello myteeduck

Just wanted to stop by and say good for you so far!! You've kinda changed your lifestyle and are perfectly capable of standing on your own two feet now

I like that you've given your cc to your mum. Better still, chop it up into a million little pieces then burn it!! :rotfl:

Are you finding you're managing/budgeting your money ok each month? If not, (or even if so!!) post an SOA and we'll see if we can help reduce your outgoings a bit more. July 2013 could be brought forward with enough determination!!

Good luck and I'll be watching

myteeduck

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1061
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 106

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 236.4
Rent.................................... 325
Management charge (leasehold property).. 25
Council tax............................. 56
Electricity............................. 30 (I’m in credit by £132.65, but the bills due tomorrow – I’ll still be in credit)
Gas..................................... 40 (I’m in credit by £153.32, again the bills due tomorrow – I’ll still be in credit)
Oil..................................... 0
Water rates............................. 20.75 (I’m on a water meter and hoping to get a lump sum in March 2013 and my rates reduced)
Telephone (land line)................... 20 (lumped as £38 with Net and Cable – stuck until January 2014 – on lowest package)
Mobile phone............................ 36
TV Licence.............................. 12.12
Satellite/Cable TV...................... 13
Internet Services....................... 5
Groceries etc. ......................... 60 (Maximum spends - I shop at A*D*!)
Clothing................................ 10 (not currently paying for – I had loads of new clothes in June)
Petrol/diesel........................... 80 (I can’t drop this because I struggle with anything less – my work is 16 mile round journey to work)
Road tax................................ 12 (I currently pay this in a lump sum at the date its due)
Car Insurance........................... 38 (paid in a lump sum this month so not due now until Sept 2013 – it makes part of the credit card debt)
Car maintenance (including MOT)......... 0 (I have a 1 year old car so Mot not due until May 2014 and all services are paid in the monthly payment)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 (Paid in my maintenance charge to the council)
Contents insurance...................... 4.2 (its £50 due in January)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, Christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1023.47


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 10000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 17000....(236.4)....0
Total secured & HP debts...... 17000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Marks & Spencer................1055......25........0
Total unsecured debts..........1055......25........-


Monthly Budget Summary
Total monthly income.................... 1,061
Expenses (including HP & secured debts). 1,023.47
Available for debt repayments........... 37.53
Monthly UNsecured debt repayments....... 25
Amount left after debt repayments....... 12.53

Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -17,000
Total Unsecured debt.................... -1,055
Net Assets.............................. -8,055

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/font]

Notes:
This is my SOA as ideal when I have no credit card as currently as per not above, a lot I’m not actually paying – I’m paying £100 instead to the credit card which I would like to clear, which is what is giving my debt free date as June 2013.
I don’t feel like I’m living at the moment – just surviving. I have £160 at the moment free each month which £60 is food £100 is credit card. I have nothing else left. I don’t get paid overtime except for stock-takes but they’re every 2 months, so I may get a bit extra at the end of October but not then until next year. I get about £30 after tax which goes straight to the card.

I’ve looked at selling my car but I’m in major negative equity so I have to make the same payments for an unreliable car.  I have to wait at least 2 more years before I can change and reduce my payments.

I’m going to do Christmas really frugally this year – i.e. handmade crafts and biscuits etc.

I have days where I’m ok with my situation and I enjoy spending my nights at home but then there are days where I’m depressed because I have no money, no one and I’m only 27.

I want to quit my life and give it to someone else and go and start afresh abroad in Australia, but I can’t afford the plane ticket 

Strange thing is for once in my life, I’m not stressed and I enjoy my job, I’m not afraid of loosing it anymore and I should be happy – I’m just stuck in a rut and bored.

I’d say come June 2013 I’d be happy – but I know that in the meantime I’ll put my contents insurance on a new card and then my car insurance next year and then I’ll be in the same position, all because I don’t have the money now to help pay my SOA as it is above.

If anyone has any advice, please help me!

x

missrlr

First and foremost congratulations for the journey you have done. some big changes here. now for a few suggestions:
The most startling thing on this is the fact you are in CREDIT with gas water and electricity , why on earth should they have the benefit of your money? Take meter readings provided them and demand the bills are updated and change the DD accordingly. I know expensive time of year energy wise is coming up but could you pay the same DD amount and have the credit amount back? This might give you £100 to chuck at the debt and remember it is YOUR money.
Also check you are on the best deal, you have a year nearly of data on consumption so get yourself on a comparison site and check this out.
The gas and electricity are high I spent £50 a month on BOTH and I have a 3 bed house!
Second are you really saving the amounts for car tax and so on? If not then sort this out and get the money moved each mo just after pay day to a separate account where it can sit unharmed!
Is there any way you can change jobs or get a second job to up the income?
Get on phone and see if you can negotiate the cable etc package down, say circumstances have changed and see if they will do anything.
You need to put something in the presents, haircuts and so on fields. You know when these come up and so you need to plan for them
Have you checked the exact status of the car finance? Are you really in negative as at 18 months these usually break even. Also are you sure you NEED a car, can you use public transport or walk? Is this a personal plan where you have a balloon payment at the end. If so what plans do you have for then? You may need to consider the need to build up a cash fund for new car deposit or final payment and so on. Plus of course maintenance after your current deal closes.
Well done and keep the good work up. Hope this helps

myteeduck

Hi Missrlr!
Thank you for commenting. I don't really feel like I've made many changes as still feel worse off. I know that i'm going to be robbing Peter to pay Paul come January when the contents insurance is up for renewal
I'm currently waiting on my bill from the gas and electricity - its due any day then I may call up to get a refund.
I am definitely in negative equity on my car - I tried to change at the beginning of September and I cant reduce my payments due to the negative shortfall. I've been advised by several people (including other car companies) to keep my car for a further 2 years and then change as I should be able to reduce my payments considerably then.
Yes I do have a balloon payment of £7000.
I also do really need it - my work is not on the bus route and is too far to walk to.
I get my hair cut luckily for free from my neighbour so luckily I don't need to budget for this.

I keep putting it off but I really think i'm going to have to get a second job or start selling some stuff on eBay.

x

HeadAboveWater

Morning :wave:

myteeduck wrote: »

I know that i'm going to be robbing Peter to pay Paul come January when the contents insurance is up for renewal

Pleeeeeeeeeeeeeeeeeease try to avoid this!!!! You know it's coming up soon so try to rearrange money or put some away specifically for this. I've no idea about this but do you have to pay it all in one go?

I'm currently waiting on my bill from the gas and electricity - its due any day then I may call up to get a refund.

I think you should. Maybe use this money for the insurance?

I also do really need it - my work is not on the bus route and is too far to walk to.

Half bus and half walk?! lol I sold my car in Feb this year and haven't looked back. And because of selling it, I'm finally out of debt! OH has a car but I only borrow it if I'm going to visit my mum.
I walk to work which is about mile and half each way. Getting cold now (plus I've got the cold), so not so pleasant, but I wouldn't go back to the driving bit!!

Oh. Just re-read your post. 16 mile round trip. Any way you could do half/half? Share lifts?

I get my hair cut luckily for free from my neighbour so luckily I don't need to budget for this.

Fab!

I keep putting it off but I really think i'm going to have to get a second job or start selling some stuff on eBay.

Try ebay first! Once you start digging around in the cupboards you'll be amazed at what you find! Go for a free listing weekend: they're usually every couple of weeks.

trishx

wow myteeduck, I've just looked at your SOA and I can understand why you sometimes get depressed. I admire you for dedicating all your surplus income to your credit card. You definitely need something more drastic to get out of this rut though. Say you put your contents insurance on your card in January, that means you should pay off your card in July (rather than June), in Sept you will put your car insurance and presumably your car tax on the card (around £600?) so it will take you until January 2014 to pay that off, then comes the contents insurance again and so it goes on. That's assuming that in that entire period you'd have spent nothing on entertainment, clothes or gifts - which I don't think is possible.

Reduce your expenses:

1) the car loan - I hate to say it but you should never have bought a car for so much more than your annual salary. Cars devalue at an alarming rate and the newer they are the faster they devalue. Every car owner has less equity in their car than they paid for it. Your issue is that the amount outstanding is more than the price you can get if you sell it - therefore you'd have to continue to make payments on a car you no longer own. The car will continue to depreciate though (and rapidly as it is so new) so you will continue to lose money by continuing with the car loan - although as the price starts to level off and your repayments remain the same eventually you'll be able to sell it without also having to make a payment to the HP company but you'll still be worse off overall. Does that make sense? I'll try and explain with some made up numbers (obviously not correct but should give you an idea of what I'm trying to say):

Car purchased Sept 2011 for £17,000.
Payments made Sept 2011 - Sept 2012 = £2,836.80
Amount outstanding on loan (for ease I'm assuming £2000 of the £2,836.80 goes towards actually paying off the loan) = £15,000.00
Car resale value Sept 2012 = £14,000.00
Depreciation from Sept 2011 - Sept 2012 = £3,000.00
Amount owing to HP company if sold at current value = £1,000.00
Amount paid to HP company to date = £2,836.80
Total loss = £3,836.80

Payments made Sept 2012 - Sept 2013 = £2,836.80
Amount outstanding on loan = £13,000.00
Car resale value Sept 2013 = £13,000.00
Depreciation from Sept 2012 - Sept 2013 = £1,500.00
Amount owing to HP company if sold at current value = £500.00
Amount paid to HP company to date = £5,673.60
Total loss = £6,173.60

Payments made Sept 2013 - Sept 2014 = £2,836.80
Amount outstanding on loan = £11,000.00
Car resale value Sept 2014 = £11,500.00
Depreciation from Sept 2012 - Sept 2013 = £1,000.00
Amount owing to HP company if sold at current value = £0.00
Profit made on sale = £500.00
Amount paid to HP company to date = £8,510.40
Total loss = £8,010.40

Does that make sense? I appreciate that to get out of the situation (assuming the HP company will even let you) you will have to take on a loan to pay off the HP company (or continue the payments for a while) and another loan to buy a cheap second hand car but you'll be better off in the long run if you cut your losses now. Best have an look at the real figures and speak to a proper adviser - perhaps call the CCCS.

2) Can you really afford to live alone? Have you got room for a lodger? Can you get a room in a houseshare instead? Move in with family?

3) Can you move closer to work - perhaps you could do without a car at all if you did that?

4) £38/m for mobile phone seems high. Are you stuck in a contract? If not, take a look at GiffGaff, the most expensive goody bag is only £25 and has more than I can imagine anyone ever using. If you are in a contract, give them a call and see if they can do anything to reduce it.

5) As @missrlr says your Gas / Electric seems high - make sure the meter read is correct. If it is, perhaps there is a problem somewhere.

Increase your income:

a) If you have to keep the car perhaps you could earn some extra income by renting it out on a site like Whipcar.com N.B. I've never done this and there are obvious risks - maybe check out the thread on this forum (sorry it won't let me post links as I'm new).

b) make some stuff to sell - you mentioned making stuff for Christmas presents, if you're the crafty sort you might be able to make some stuff to sell esp. coming up to Christmas - problem is trying to keep the cost of making it less than the price you can sell it for.

c) get paid more. Do you have a pay review coming up? Can you ask for a paid rise? Are there any promotions coming up which you could apply for? Try and go "above and beyond" at work and hopefully you won't get looked over if any opportunities do arise.

d) benefits. I have no idea what the threshold is for housing benefit, income support etc. Maybe worthwhile checking it out.

e) get a second job. Have a look to see if you can get an evening or weekend job. Perhaps even become an Avon lady (I think there is a joining fee though).

f) surveys / secret shopper etc - although I don't think these are going to given you anything like the income you need.

That's all I can think of right now. Good luck. Compared to a lot of people on here, it seems like such a small amount of debt but your situation is one of the hardest to get out of I've seen.

Trish

myteeduck

missrlr wrote: »

First and foremost congratulations for the journey you have done. some big changes here. now for a few suggestions:

Thank you for writing!

missrlr wrote: »

The most startling thing on this is the fact you are in CREDIT with gas water and electricity , why on earth should they have the benefit of your money? Take meter readings provided them and demand the bills are updated and change the DD accordingly. I know expensive time of year energy wise is coming up but could you pay the same DD amount and have the credit amount back? This might give you £100 to chuck at the debt and remember it is YOUR money.
Also check you are on the best deal, you have a year nearly of data on consumption so get yourself on a comparison site and check this out.
The gas and electricity are high I spent £50 a month on BOTH and I have a 3 bed house!

I have decided to wait until I have been with them a year - In February - and get the lump sum back and I have realised I should be able to drop the total by £20 per month but due to my supplier increasing there prices by 9% I'm going to see how this affects me before I go making problems for myself.

missrlr wrote: »

Second are you really saving the amounts for car tax and so on? If not then sort this out and get the money moved each mo just after pay day to a separate account where it can sit unharmed!

I have started to find this - my next post will explain more!

missrlr wrote: »

Is there any way you can change jobs or get a second job to up the income?

Does eBay count? See next post!

missrlr wrote: »

Get on phone and see if you can negotiate the cable etc package down, say circumstances have changed and see if they will do anything.

I'll look at this but I think i'm on the lowest package and I am tied in for another 15 months.

missrlr wrote: »

You need to put something in the presents, haircuts and so on fields. You know when these come up and so you need to plan for them

I don't spend alot on presents - I'm hoping to make the majority of my Christmas pressies and I'm selling items to find the money to pay the rest - It will be a modest time in my household this year. Also my haircuts are free (lovely neighbour)

missrlr wrote: »

Have you checked the exact status of the car finance? Are you really in negative as at 18 months these usually break even. Also are you sure you NEED a car, can you use public transport or walk? Is this a personal plan where you have a balloon payment at the end. If so what plans do you have for then? You may need to consider the need to build up a cash fund for new car deposit or final payment and so on. Plus of course maintenance after your current deal closes.
Well done and keep the good work up. Hope this helps

As for car - yes I tried to change my car the other month. I'm in negative now but I have looked at the figures and if I keep it for another 2 years - I should be in a position to change and reduce my payments but a considerable amount.

Hope I've covered everything!

myteeduck

Trishx - I think your post hit me hardest! I have been stuck in a cycle! I think i've been in one for a long time - even before these credit cards - earlier posts of mine seem to indicate that what has happened now was inevitable but I must have had my hear in the clouds/sand and not looking at what I was doing.
I refuse to allow this to happen again!

I have started to make baby steps to get out of my situation!

In addition to my next post which explains why I finally started to wake up and smell the roses I am never getting a credit card again! Road Tax and Contents insurance are sorted, Christmas is planned for and if I have to start paying my car insurance next year by monthly DD then I will! At least by the time its due I will be CC free!

I know I said it last time - but this time I mean it - no more CCs!!

I will live off the money in my purse and once its all clear I will re-do my SOA and account for everything!

x

myteeduck

Hi All,

(This is my main post today - hopefully it will explain things!)

Just thought I would update everyone – Apologies – it might be a long one!

I’ve had a bit of a rough 2 weeks. I had a issue with an outstanding overpayment with Working Tax Credits – which I knew I wasn’t entitled to and saved. After 1 and a half years they still hadn’t come chasing – so I called them and was told to pay it over the telephone. I did as I knew it was their money – so they took my card details and finally the bill was paid and completed with – or so I thought. Weekend rolls round I have a couple of NSDs and all is fine. Then Monday came – I checked my bank – they had taken my payment twice!!!!! L Cue hours back and too on the phone explaining they hadn’t left me enough to pay my food, bills etc! They left me with £3 in my account. I even had to call my bank – explain to them I might not be able to pay my bills etc. They set me up an overdraft (I have deliberately avoided these as I never wanted to live that way).

Back in August I was caught speeding in a company car (Stupid I know – I have learnt my lesson) - I was offered the speed awareness course which I booked and work kindly agreed (due to my situation) to pay this bill. Finally with this money back from work and the money I saved from the original WTC overpayment, I had the money to pay my bills (but not food, fuel etc).

Luckily this Monday, the money the taxman owed me was re-credited and all is back to normal.

Due to this massive scare due to a fear of going overdrawn and getting charged to the hilt seemed to shock me enough to realise I can’t keep living off credit cards and I need to change my situation - also reading it from Trishx, Missrlr and Head Above Water helped so I have started to change my ways.

I have sold some mobile phones on a website and they have offered me the full amounts for them and I have also sold some shoes (that were just sitting in a box on the Bay) and within the last two weeks I have £122 in savings -enough to pay my Road Tax next year!!! I’m going to keep selling on the Bay as I now need to find the money for my contents insurance which is due around Christmas. Not a huge amount…

I have also spoken to my mum we have realised we are both paying for food that we both use and have too much off – so we are now going to combine our shopping so I don’t have to buy as much. So all milk, bread and salad and all frozen food will be provided by the bank of mum and dad! This will mean my £15 per week food bill will hopefully half – meaning I should only spend at most £30 per month. I might even pretend that she’s buying it all so I don’t put too much on my list. I have also gone on a healthy eating plan as I have put on a stone since I moved out – on top of the extra stone I had before I left home. So I’m currently counting calories and getting shocked by what I was eating before. I have come in on target since I started so hopefully I will start to see some results on the scales soon.

Maybe these are some positive changes that should hopefully start to lift my mood - although if anyone can find a way to stop me falling asleep halfway through a programme at 7 in the evening on the sofa where I end up shocking myself awake at 2am with a bad neck and find I have to then crawl to bed then sleeping until 7am – I would be grateful as its been happening for weeks now! I can’t even explain then why I’m yawning all day when I’ve had 12 odd hours sleep or even explain why I don’t sleep Sunday nights at all (maybe 3 hours if I’m lucky).