We've begun - wish us luck!

macymoo

Good Afternoon All, well this afternoon I have taken a couple of hours off work to work out our SOA (please see below), I have downloaded the "Budget Planner" and have copied it onto A3 paper so that I can put it up on the fridge to remind us everyday!!
I have had a few LBM's, but the last year has been a struggle and this time I'm determined!
OH has been out of work for 18 months but is now back 30hrs a week and will get paid for the 1st time on 31/5/12 so officially this is our start date to sort ourselves out!
We have gone through all the usual - car insurance-contents insurance-internet/phone provide-mobile provider etc and have managed to get better deals, so think we are going ok so far! I just felt the need to post on MSE so it prompts me to keep on track - words of encouragement greatly received!


Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details[/b]
Monthly income after tax................ 1500
Partners monthly income after tax....... 900
Benefits................................ 420
Other income............................ 0
Total monthly income.................... 2820

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 297
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 19.99 includes broadband
Mobile phone............................ 30 (for mine and OH's)
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... included in landline
Groceries etc. ......................... 200
Clothing................................ 5 (get lots of hand-me-downs)
Petrol/diesel........................... 160
Road tax................................ 24 (for both cars)
Car Insurance........................... 37 (for both cars)
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 34.00 missed this off whoops
Medical (prescriptions, dentist etc).... 7.50
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 12
Other insurance......................... 7.90 - critical illness for OH
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 45
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1683.4

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000

Secured & HP Debts[/b]
Description....................Debt...Monthly...APR
Mortgage...................... 0........(0)........ 0
Secured Debt............... 14972...(276)......8.6 First direct loan
Hire Purchase (HP) debt . 1600....(21).......0 DFS -sofa's
Total secured & HP debt. 16572..

Unsecured Debts Description....................Debt......Monthly...APR
Virgin CC......................12485.....200.......2.08
Tesco CC.......................3400......100.......1.54
HB & CTB Overpayment..4509......210.......0
Total unsecured debts.....20394.....510.......


Monthly Budget Summary
Total monthly income.................... 2,820
Expenses (including HP & secured debts). 1,683.4
Available for debt repayments........... 1,136.6
Monthly UNsecured debt repayments....... 510
Amount left after debt repayments....... 626.6

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -16,572
Total Unsecured debt.................... -20,394
Net Assets.............................. -30,966

fifidfw

Hi.

Just wanted to wish you luck on your debt free journey

[Deleted User]

macymoo wrote: »

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2 Are two cars required? If you could manage with only one, then not only could you sell one to pay off a chunk of debt, but you would also save on the running costs - tax, petrol, insurance, maintenance & service

Monthly Income Details[/b]
Monthly income after tax................ 1500 Any way to increase? Over-time etc
Partners monthly income after tax....... 900 Congrats to your OH on the new job! - Perhaps they'll get the opportunity for overtime or increase in hours once they've been there a while? Best to settle in first though
Benefits................................ 420Are you claiming all that you are entitled to? Will this change once your OH starts to get paid?
Other income............................ 0Any way to add something here? Have a look at the "up my income board" for some inspiration
Total monthly income.................... 2820

Monthly Expense Details[/b]
Secured/HP loan repayments.............. 297
Rent.................................... 550Is this competative for your area?
Council tax............................. 130Is this over 10 or 12 months? Can you spread it over 12?
Electricity............................. 40You have said that you have already checked this is the cheapest tariff for your area/usage - just remember to check every 6-12 months
Water rates............................. 39Are you on a meter? If not, would one be a cheaper option [might need landlords permission though?]
Telephone (land line)................... 19.99 includes broadband
Mobile phone............................ 30 (for mine and OH's)Are you in a contract? If/when they are finished try looking around for SIM only deals - GiffGaff are particularly cheap for SIM only call packages and PAYG, I can highly recommend them, but there might be other deals at the time worth comparing with
TV Licence.............................. 14 [12.44]
Internet Services....................... included in landline
Groceries etc. ......................... 200Although this doesn't seem excessive, if you don't already try meal planning, batch cooking, dropping brands, try Lidl/Aldi
Clothing................................ 5 (get lots of hand-me-downs)
Petrol/diesel........................... 160Are all journeys essential? Can either of you car share to/from work? Bus? walk? Cycle?
Road tax................................ 24 (for both cars)
Car Insurance........................... 37 (for both cars)
Car maintenance (including MOT)......... 20Do you actually save this somewhere for when it is needed?

Other child related expenses............ 0 34.00 missed this off whoopsWhat is this for? Is it good value? Can you get the same or similar for cheaper elsewhere?
Medical (prescriptions, dentist etc).... 7.50If this is prescription, then check if this would be cheaper with a pre-paid certificate
Contents insurance...................... 12
Life assurance ......................... 12
Other insurance......................... 7.90 - critical illness for OH
Presents (birthday, christmas etc)...... 10Do you save this somewhere for when required?
Haircuts................................ 0never?
Entertainment........................... 45What does this get spent on? If you don't already, try using deals and vouchers for days out, restaurants etc
Emergency fund.......................... 0It might be worthwhile putting something, even a little here - try £5
Total monthly expenses.................. 1683.4

Assets
Cash.................................... 0Need to keep back MOT/car maintenance/presents, emergency fund (if you decide it's worthwhile?) etc
Car(s).................................. 6000
Total Assets............................ 6000

Secured & HP Debts[/b]..Monthly...APR
Secured Debt............... 14972...(276)......8.6 First direct loanThis seems to be the debt that is costing you the most in interest, so any surplus that you have at the end of the month ought to be paid here - but before you do check with the provider that there'll not be any penalties for early repayment, if there is then overpay on the next most expensive debt
Hire Purchase (HP) debt . 1600....(21).......0 DFS -sofa's Is this 0% and if so is it 0% for the duration of the debt?
Total secured & HP debt. 16572..

Unsecured Debts Description....................Debt......Monthly...APR
Virgin CC......................12485.....200.......2.08Will this be the APR for the duration of the debt?
Tesco CC.......................3400......100.......1.54as above
HB & CTB Overpayment..4509......210.......0
Total unsecured debts.....20394.....510.......


Monthly Budget Summary
Total monthly income.................... 2,820
Expenses (including HP & secured debts). 1,683.4
Available for debt repayments........... 1,136.6
Monthly UNsecured debt repayments....... 510
Amount left after debt repayments....... 626.6This is great, if you don't have this left in your bank account at the end of the month, then keep a spending diary to see where it goes - if you do have it then, if it were me I'd start a small emergency fund with a little of it, then put the rest towards the debt that is costing you the most in interest, which seems to be the loan unless there are any introductory offers on other debts ending soon

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -16,572
Total Unsecured debt.................... -20,394
Net Assets.............................. -30,966

Hi, Contrats on sorting out your SOA, and congrats on your OH's new job.

Good luck with your debt free journey, your SOA shows a good surplus so that you can make inroads quickly!

D9

sistafromanothermista

Congrats and good luck on your journey :beer:

macymoo

Thanks ever so much for your comments - updates indicated below - I know it's only been 2 days but am feeling good about the whole process -yippee


Originally Posted by macymoo
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2 Are two cars required? If you could manage with only one, then not only could you sell one to pay off a chunk of debt, but you would also save on the running costs - tax, petrol, insurance, maintenance & service
Just gone up to 2 cars from 1 as we both need a car for work

Monthly Income Details[/b]
Monthly income after tax................ 1500 Any way to increase? Over-time etc Unfortunately not - salary - local government

Partners monthly income after tax....... 900 Congrats to your OH on the new job! - Perhaps they'll get the opportunity for overtime or increase in hours once they've been there a while? Best to settle in first though Yey!!!
Benefits................................ 420Are you claiming all that you are entitled to? Will this change once your OH starts to get paid? Will reduce after April next year - have checked entitled to website
Other income............................ 0Any way to add something here? Have a look at the "up my income board" for some inspiration
Total monthly income.................... 2820

Monthly Expense Details[/b]
Secured/HP loan repayments.............. 297
Rent.................................... 550Is this competative for your area? Cheap for area - landlord not increased in 4yrs!!
Council tax............................. 130Is this over 10 or 12 months? Can you spread it over 12? Oh good idea
Electricity............................. 40You have said that you have already checked this is the cheapest tariff for your area/usage - just remember to check every 6-12 months
Water rates............................. 39Are you on a meter? If not, would one be a cheaper option [might need landlords permission though?]
Telephone (land line)................... 19.99 includes broadband
Mobile phone............................ 30 (for mine and OH's)Are you in a contract? If/when they are finished try looking around for SIM only deals - GiffGaff are particularly cheap for SIM only call packages and PAYG, I can highly recommend them, but there might be other deals at the time worth comparing with In a contract
TV Licence.............................. 14 [12.44]
Internet Services....................... included in landline
Groceries etc. ......................... 200Although this doesn't seem excessive, if you don't already try meal planning, batch cooking, dropping brands, try Lidl/Aldi
Clothing................................ 5 (get lots of hand-me-downs)
Petrol/diesel........................... 160Are all journeys essential? unfortunately so
Can either of you car share to/from work? Bus? walk? Cycle?
Road tax................................ 24 (for both cars)
Car Insurance........................... 37 (for both cars)
Car maintenance (including MOT)......... 20Do you actually save this somewhere for when it is needed? Have recently started saving this

Other child related expenses............ 0 34.00 missed this off whoopsWhat is this for? Is it good value? Can you get the same or similar for cheaper elsewhere? For childrens sporting activities
Medical (prescriptions, dentist etc).... 7.50If this is prescription, then check if this would be cheaper with a pre-paid certificate
Contents insurance...................... 12
Life assurance ......................... 12
Other insurance......................... 7.90 - critical illness for OH
Presents (birthday, christmas etc)...... 10Do you save this somewhere for when required? no but should!!
Haircuts................................ 0never? Mmmm rarely but need to budget for it!
Entertainment........................... 45What does this get spent on? If you don't already, try using deals and vouchers for days out, restaurants etc
Emergency fund.......................... 0It might be worthwhile putting something, even a little here - try £5
Total monthly expenses.................. 1683.4

Assets
Cash.................................... 0Need to keep back MOT/car maintenance/presents, emergency fund (if you decide it's worthwhile?) etc
Car(s).................................. 6000
Total Assets............................ 6000

Secured & HP Debts[/b]..Monthly...APR
Secured Debt............... 14972...(276)......8.6 First direct loanThis seems to be the debt that is costing you the most in interest, so any surplus that you have at the end of the month ought to be paid here - but before you do check with the provider that there'll not be any penalties for early repayment, if there is then overpay on the next most expensive debt
Hire Purchase (HP) debt . 1600....(21).......0 DFS -sofa's Is this 0% and if so is it 0% for the duration of the debt? 0% 3yrs
Total secured & HP debt. 16572..

Unsecured Debts Description....................Debt......Monthly.. .APR
Virgin CC......................12485.....200.......2.08Will this be the APR for the duration of the debt?
Tesco CC.......................3400......100.......1.54as above
HB & CTB Overpayment..4509......210.......0
Total unsecured debts.....20394.....510.......


Monthly Budget Summary
Total monthly income.................... 2,820
Expenses (including HP & secured debts). 1,683.4
Available for debt repayments........... 1,136.6
Monthly UNsecured debt repayments....... 510
Amount left after debt repayments....... 626.6This is great, if you don't have this left in your bank account at the end of the month, then keep a spending diary to see where it goes - if you do have it then, if it were me I'd start a small emergency fund with a little of it, then put the rest towards the debt that is costing you the most in interest, which seems to be the loan unless there are any introductory offers on other debts ending soon

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -16,572
Total Unsecured debt.................... -20,394
Net Assets.............................. -30,966

wants.to.be.debt.free

Just wanted to say Good Luck on your Debt free Journey and Congratulations on the OH new Job

downsizer3

Well done for having your LBM and good luck in your journey!
Can't add much to the above - but I notice your OH has critical illness cover - but actually you are the main breadwinner.....just wondering if its worth looking at that when the dust settles a bit?
Good luck - you'll soon see the figures coming down. Can also recommend spreadsheets to show each payment coming off - its a real encouragement!

fantastiyk

Wishing you good luck. Can't add anything to help with your SOA, sorry.

[Deleted User]

macymoo wrote: »

[COLOR=red

Originally Posted by macymoo
Household Information

obile phone............................ 30 (for mine and OH's)Are you in a contract? If/when they are finished try looking around for SIM only deals - GiffGaff are particularly cheap for SIM only call packages and PAYG, I can highly recommend them, but there might be other deals at the time worth comparing with In a contractCall the provider and ask if they will allow you to drop a tariff or two - some will after you have been with them for a few months - worth a try!
TV Licence.............................. 14 [12.44]
Haircuts................................ 0never? Mmmm rarely but need to budget for it!See if there's a college near by that offers trainee or demonstration cuts - they'll be cheap or sometimes even free!

Secured & HP Debts[/b]..Monthly...APR
Secured Debt............... 14972...(276)......8.6 First direct loanThis seems to be the debt that is costing you the most in interest, so any surplus that you have at the end of the month ought to be paid here - but before you do check with the provider that there'll not be any penalties for early repayment, if there is then overpay on the next most expensive debt
Hire Purchase (HP) debt . 1600....(21).......0 DFS -sofa's Is this 0% and if so is it 0% for the duration of the debt? How long have you already had the debt for? Is it 3 years interest free from now? If so, if you increase your monthly payment to £45 per month it will be fully repaid before the 0% ends - if you leave it as it is it will only have repaid £750 by the time the 0% ends - whether you decide to increase the payment now (given the great monthly surplus you have) really depends on what the APR [interest rate] will revert to after the 0% ends 0% 3yrs
Total secured & HP debt. 16572..

Unsecured Debts Description....................Debt......Monthly.. .APR
Virgin CC......................12485.....200.......2.08Will this be the APR for the duration of the debt?[COLOR="purple"??[/COLOR]
Tesco CC.......................3400......100.......1.54as above??
HB & CTB Overpayment..4509......210.......0This will be gone in less than 2 years [22 months]

6

Some further comments above -hope they help!

D9

brummiebabe

Well done on getting organised. Very quickly....is £10 really enough towards Christmas/birthdays etc? Whilst I know we'd all like to keep this amount low - is £120 enough for 2 children's Christmas & birthdays for the year? If it is then that's fantastic.....but wonder whether this is realistic?

Apart from that you've got a good amount leftover ....well done!!!:j