LBM!!!! I'm a DFW :(

Grumblor

Hi all

I've been browsing through this forum all day and it really woke me up. I've been ignoring our money situation for far too long and it's time to make a stand! OH and I are getting married in August and will be wanting to start a family shortly after so now really is the time to sort out money worries. There are so many nice people here willing to give support and advice, I decided to join. I hope I can also contribute support and advice to others along my journey to the debt free roll of honour!

The SOA seemed the logical place to start so here it is, feel free to comment, advise, kick butt!! I don't know the exact Interest rates on some of the debts so I didn't include them but I'll find out tonight and update accordingly. Thanks

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1683.16
Partners monthly income after tax....... 1194.42
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2877.58
Monthly Expense Details
Mortgage................................ 563
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 2
Council tax............................. 113.5
Electricity............................. 37
Gas..................................... 42
Oil..................................... 0
Water rates............................. 44.05
Telephone (land line)................... 33
Mobile phone............................ 82.59
TV Licence.............................. 12.12
Satellite/Cable TV...................... 23
Internet Services....................... 12.5
Groceries etc. ......................... 300
Clothing................................ 10
Petrol/diesel........................... 350
Road tax................................ 22.5
Car Insurance........................... 112.42
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 40.9
Life assurance ......................... 6.17
Other insurance......................... 24.75
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 120
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2031.5

Assets
Cash.................................... 0
House value (Gross)..................... 116000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 4980
Total Assets............................ 123480

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 132000...(563)......0
Total secured & HP debts...... 132000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................6312.94...116.......0
Santander Credit Card..........3197.49...75........0
Santander OD...................166.09....10........0
Barclays OD....................307.3.....40........0
HSBC CC........................5503.58...100.......0
Total unsecured debts..........15487.4...341.......-

Monthly Budget Summary
Total monthly income.................... 2,877.58
Expenses (including HP & secured debts). 2,031.5
Available for debt repayments........... 846.08
Monthly UNsecured debt repayments....... 341
Amount left after debt repayments....... 505.08
Personal Balance Sheet Summary
Total assets (things you own)........... 123,480
Total HP & Secured debt................. -132,000
Total Unsecured debt.................... -15,487.4
Net Assets.............................. -24,007.4
Created using the SOA calculator at makesenseofcards dot com
Reproduced on Moneysavingexpert with permission, using IE browser.

jonjamie1970

Welcome and well done on your LBM.

I don't have too much time as I am off out but on first glance I noticed the following things.

Your mobile phone rentals are big.
You use a lot of fuel in your cars.
Your Groceries could be reduced by a third.

Use the snowball calculator to figure out which cards or loans need tackling first and then start throwing money at them.

RAS

Hi

You really do need to get that SOA down so that you can live off one income plus whatever benefits you would receive, before you start a family

So go to www.turn2us.org.uk and check out what you would get if you had a child. That is what you need to get the expenditure down to.

Then you use the other salary to pay off your debts as fast as possible.

Grumblor wrote: »

HStatement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2 - do you absolutely need two cars?
Monthly Income Details
Monthly income after tax................ 1683.16
Partners monthly income after tax....... 1194.42
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2877.58
Monthly Expense Details
Mortgage................................ 563
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 2
Council tax............................. 113.5
Electricity............................. 37 - good
Gas..................................... 42 - good
Oil..................................... 0
Water rates............................. 44.05 - check if you would be better with a water meter?
Telephone (land line)................... 33 - why so high?
Mobile phone............................ 82.59 - needs to be hammered down. Reduce the packages ASAP.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 23 - probably need to go
Internet Services....................... 12.5
Groceries etc. ......................... 300 - halve this now
Clothing................................ 10
Petrol/diesel........................... 350 - this is very very high. Is there a reson?
Road tax................................ 22.5
Car Insurance........................... 112.42 - very high even for 2 cars
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 40.9 - this is massive even if it includes building insurance
Life assurance ......................... 6.17
Other insurance......................... 24.75 - what is this?
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 120 - you need to cut this
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2031.5

Assets
Cash.................................... 0
House value (Gross)..................... 116000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 4980
Total Assets............................ 123480

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 132000...(563)......0
Total secured & HP debts...... 132000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................6312.94...116.......0
Santander Credit Card..........3197.49...75........0
Santander OD...................166.09....10........0
Barclays OD....................307.3.....40........0
HSBC CC........................5503.58...100.......0
Total unsecured debts..........15487.4...341.......-

Monthly Budget Summary
Total monthly income.................... 2,877.58
Expenses (including HP & secured debts). 2,031.5
Available for debt repayments........... 846.08
Monthly UNsecured debt repayments....... 341
Amount left after debt repayments....... 505.08 - do you have this much available each month? if so, how have you acumulated so much debt? If not, what are you spending it on?
Personal Balance Sheet Summary
Total assets (things you own)........... 123,480
Total HP & Secured debt................. -132,000
Total Unsecured debt.................... -15,487.4
Net Assets.............................. -24,007.4
.

MFWannabe

Grumblor wrote: »

Hi all

I've been browsing through this forum all day and it really woke me up. I've been ignoring our money situation for far too long and it's time to make a stand! OH and I are getting married in August and will be wanting to start a family shortly after so now really is the time to sort out money worries. There are so many nice people here willing to give support and advice, I decided to join. I hope I can also contribute support and advice to others along my journey to the debt free roll of honour!

The SOA seemed the logical place to start so here it is, feel free to comment, advise, kick butt!! I don't know the exact Interest rates on some of the debts so I didn't include them but I'll find out tonight and update accordingly. Thanks

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1683.16
Partners monthly income after tax....... 1194.42
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2877.58
Monthly Expense Details
Mortgage................................ 563
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 2
Council tax............................. 113.5
Electricity............................. 37
Gas..................................... 42
Oil..................................... 0
Water rates............................. 44.05 - Check to see if it would be cheaper to have a meter
Telephone (land line)................... 33 - Would this be cheaper combined with sat tv?
Mobile phone............................ 82.59 - This is very high for 2 - see if you can change them to lower tariffs
TV Licence.............................. 12.12
Satellite/Cable TV...................... 23
Internet Services....................... 12.5
Groceries etc. ......................... 300- should be able to reduce by at least £50
Clothing................................ 10
Petrol/diesel........................... 350- This is a lot, are all journeys necessary?
Road tax................................ 22.5
Car Insurance........................... 112.42 - check comparison sites to see if you can get cheaper
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 40.9 - check comparison sites to see if you can get cheaper
Life assurance ......................... 6.17
Other insurance......................... 24.75 - What is this for?
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 120 - Should be able to halve this
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2031.5

Assets
Cash.................................... 0
House value (Gross)..................... 116000
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 4980 - what is this?
Total Assets............................ 123480

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 132000...(563)......0
Total secured & HP debts...... 132000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................6312.94...116.......0
Santander Credit Card..........3197.49...75........0
Santander OD...................166.09....10........0
Barclays OD....................307.3.....40........0
HSBC CC........................5503.58...100.......0
Total unsecured debts..........15487.4...341.......-

Monthly Budget Summary
Total monthly income.................... 2,877.58
Expenses (including HP & secured debts). 2,031.5
Available for debt repayments........... 846.08
Monthly UNsecured debt repayments....... 341
Amount left after debt repayments....... 505.08
Personal Balance Sheet Summary
Total assets (things you own)........... 123,480
Total HP & Secured debt................. -132,000
Total Unsecured debt.................... -15,487.4
Net Assets.............................. -24,007.4
Created using the SOA calculator at makesenseofcards dot com
Reproduced on Moneysavingexpert with permission, using IE browser.

Hi
I've made some comments above where you could make some cutbacks. If you don't have £500 left each month you need to keep spending diaries to see where its being spent. You should be able to pay off the overdrafts one month with this amount left over. Always start with the highest APR debt first though. Are you able to get a new 0% card to transfer some of the debt to?

Barbeduk

Hi, well done for being brave enough to post the SOA, I never was!!

I'm not so much of an expert as the others but I can immediately see you could cut your grocery bill (mine is £260 pm for a family of 4 inc all packed lunches etc). The mobile bills do seem very high. Can you get out of the contracts? And sadly, the entertainment budget needs to be slashed. But just think of all the money you'll be able to have fun with when the debt's gone!

Try keeping a spending diary, there might be other places you can cut back, eg. coffees, magazines, buying sandwiches instead of making them at home.

Good luck, it'll be hard work at first but it's fantastic to see the numbers going down!

mgical

Hi,

the SOA is a great start need to look at

- Interest rates on cards (can you get a 0% balance transfer to reduce the interest payment?)
- looks like just minimum payments, yet even without cutting back you have £500 a month to spare so work out the highest interest start paying them off (or check where the £500 is going as FREEZ suggests) ...they will start tumbling as long as you keep adding the extra money you are saving to the repayments and make sure you clear the highest interest first (making sure you always pay the minimum on the rest to avoid penalties)
- Mortgage deal may be hard to adjust right now given loan level but once you have cleared the card debts why not shift the spare money into
- You mentioned a marriage coming up, make sure you add that into the budget so its not a big surprise
- See if you can make the cutbacks suggested above (and look on the board for other great suggestions)
- Everywhere you can cut a few pounds will reduce the debt faster
- Write a list of the priorities to make sure you tackle the areas where you can make big saving first
- Have a look to see if there are any things you have that you can sell, its amazing how that old CD collection you never listen to can add up

good luck!