Going deeper into debt not sure what to do

TheLearner2008

Hi All,

Please see this post for an overview of my finances.

Things have gotten worse though and not sure what I should do!

The Tesco credit card is up to £1600 now. I don't know how to control my finances at all, should I cut up my credit card up or what do you think? I have cut up the Lloyds and Virgin one but still have the Tesco one.

Should I perhaps try and be on a cash only budget?

SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1870
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1870

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750*
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40**
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0***
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
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
Contents insurance...................... 15
Life assurance ......................... 4.16
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 200****
Holiday................................. 0
Emergency fund.......................... 0
Spotify................................. 10
Regular savings......................... 25
Gym..................................... 46
Personal Trainer........................ 185
DJ Lessons (only for May)............... 200
Transport............................... 112
Total monthly expenses.................. 1787.16


Assets
Cash.................................... 150
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 150

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds cc......................6100......61........0
Virgin cc......................5100......51........0
Tesco cc.......................1500......22........21
Lloyds overdraft...............500.......0.........0
Total unsecured debts..........13200.....134.......-


Monthly Budget Summary
Total monthly income.................... 1,870
Expenses (including HP & secured debts). 1,787.16
Available for debt repayments........... 82.84
Monthly UNsecured debt repayments....... 134
Amount short for making debt repayments. -51.16

Personal Balance Sheet Summary
Total assets (things you own)........... 150
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,200
Net Assets.............................. -13,050

*I could move further out of London, but this is a good price for a decent flat share. It includes ALL bills, TV licence everything - I don't have any household expenses/have to pay for cleaning materials etc.
**The contract is £15/month but I texted my parents overseas a lot this month.
***I did buy clothing but it went onto the Tesco card.
****This includes starbucks or any luxuries other than groceries.
Could not bring myself to sell MacBook

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

freshstart11

Can you do the SOA : http://www.makesenseofcards.com/soacalc.html

I can see in your last post you gave outline but can you please copy it on to here is the mse format so we can see exactly how to advise xx

DVardysShadow

Cut the entertainment budget, drop the Personal Trainer. Use the surplus to pay down your cards. Job done.

Or as you pay so much, ask the Personal Trainer how to solve the problem. They will probably have loads of better ideas than those you get here for free.

RenovationMan

Your SOA seems a little bare. Do you not have a car, haircuts, TV license, insurances other than life assurance, etc. etc. From this lack of info, I'm guessing that you get to the end of the month and wonder where on earth all your money has gone? The first step in getting a grip on your finances is to run a budget and therefore to know where the majority of the cash is going.

A spending diary run over a few months would be a good way to keep track on your outgoings, and usually packs a surprise. Those little treats, such as a trip to Starbucks for example can really mount up over a full month.

I'd also look at your personal training budget, perhaps just do some of the classes at the gym instead - you're paying for these within your membership anyway. I find that circuit training at my local gym is virtually as good as having a personal trainer, and a lot more fun.

YORKSHIRELASS

Its so easy to just slide further and further into debt. You have got to start by understand exactly where you are financially and where every penny is going.

If you are constantly spending more than you have coming in every month sooner or later this is going to catch up with you. You have got to take a deep breath and take control of your finances. This means being brave enough to live a life that you can afford rather than a lifestyle that you want or think you deserve.

From coming on here you probably know this is how its got to be but putting into practice is a different story. I know because I have been there myself.

Do you really spend £200 a month on groceries just for you?? I spend £280 for a family of four. There are also lots of zeros in your SOA which does make me wonder how accurate it is. You cant plan for the future unless you know what you are spending now. You need to download the last three months bank statements and go through them carefully.

Good luck, make some changes now before it gets any worse and you wont regret it.

Firewalker

I suspect that this SOA is a very rough approximation. Do you really know where your money is going? Too many zeros on the SOA for me to believe this.

The first step to any control is information - you need to know exactly where your money is going. To learn about different ways to do this check https://www.pennythots.co. and https://www.the moneyprinciple.com But in a nutshell you will have to seriously go through your bank statements (at least six months of these) and write down day to day spending.

After information comes the 'norm' - it is easy to tell people cut this and that but it doesn't work the same way for people. So you will have to find out what are your wants really and protect them (allow yourself the things you really value highly). Again, you can find out how to do this.

After than is action - and you will feel knowing, motivated and strong enough to take action and enjoying seeing these negative balances going down.

Firewalker

freshstart11

TheLearner2008 wrote: »

SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1870
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1870

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750 - is this avg for your area can you down grade
Management charge (leasehold property).. 0
Council tax............................. 0 is this included in the rent?
Electricity............................. 0 is this included in the rent?
Gas..................................... 0 is this included in the rent?
Oil..................................... 0
Water rates............................. 0 is this included in the rent?
Telephone (land line)................... 0
Mobile phone............................ 40 contract? can you lower plan?
TV Licence.............................. 0 really?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 for one occ you can def reduce this
Clothing................................ 0 nothing at all?
Petrol/diesel........................... 0 no car?
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
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
Contents insurance...................... 0 REALLY should have some!
Life assurance ......................... 4.16
Other insurance......................... 15
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 200 far too high if worried about debts
Holiday................................. 0
Emergency fund.......................... 0
Spotify................................. 10 personally would consider in enertainment
Regular savings......................... 25
Gym..................................... 46 see below
Personal Trainer........................ 185 not needed at all, run/walk/get excercise equiptment from freecycle
DJ Lessons (only for May)............... 200
Transport............................... 112
Total monthly expenses.................. 1787.16


Assets
Cash.................................... 150
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 150

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds cc......................6100......61........0
Virgin cc......................5100......51........0
Tesco cc.......................1500......22........21
Lloyds overdraft...............500.......0.........0
Total unsecured debts..........13200.....134.......-


Monthly Budget Summary
Total monthly income.................... 1,870
Expenses (including HP & secured debts). 1,787.16
Available for debt repayments........... 82.84
Monthly UNsecured debt repayments....... 134
Amount short for making debt repayments. -51.16

Personal Balance Sheet Summary
Total assets (things you own)........... 150
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,200
Net Assets.............................. -13,050

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

I feel you have far too many outgoings that are not needed in the slightest - sorry if being rude.

I dont 100% think you have had your LBM other wise certain things would be cut down. IF you could clarify further on the points can try help

freshstart11

also sorry I missed it what exactly is transport broken down? x

Time_to_face_the_music

I'm not quite sure if your posts are a wind up or serious. You have asked for this help before and been given good advice, your comeback was that you did not want to stay at home and watch 4OD so I find it difficult to believe you really want help.

How can you really consider you have a debt problem when you are spending per month: £200 on entertainment, £46 on the gym, £185 on a personal trainer and £200 on DJ lessons?

Stop that for 3 months and your Tesco CC at 21% would be paid off with a bit left over towards your other debts. All your debts could be paid off in less than 2 years if you were prepared to change your lifestyle until you are debt free.

Your grocery costs at £200 for one person are way too high but compared to the other issues, that is almost irrelevant.

I am very sympathetic to people's problems here and always go out of my way to help. Sorry if this sounds harsh but there are hundreds of people here who keep a family on the amount you spend on a trainer. I think you need to get a grip and stop asking for help when you already know the answers.

TTFTM

glasgowsaver2011

£200 on entertainment, £46 on the gym, £185 on a personal trainer and £200 on DJ lessons?

Either choose to cancel these or choose not to.

But until you do your debt wont be helped

glasgowsaver2011

1. Sell my macbook. I could get about £700 for it and then I could use my works macbook as I can take it home when I please.


Did you ever sell this