Need help!

louise1984_2

I am trying to sort out my finances.. To be honest I don't know where to begin! I know I waste money.. Lots of it, and never have anything to show for it, but somehow I can't seem to stop!? I also ignore debt letters and throw them straight in the bin
Since I have decided I cannot go on like this any more I have been opening and keeping them. I have created a SOA and have listed the majority of debts but I know there are others that I can't remember.. Also in my SOA I have listed the amounts I should be paying to the debts, when in fact I haven't actually been paying them, except my council tax and rent arrears.. I also have a B*****d payday loan that I got into a cycle with and then could afford it no longer..
So basically any ideas where to start?? Would it be a good idea for me to use one of these debt management companies that deal with the creditors? I am embarrassed about the state of my finances and am getting to the more 'serious' phase of a relationship with my BF I would be devastated if he found out how useless I am..



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

Monthly Income Details
Monthly income after tax................ 420
Partners monthly income after tax....... 0
Benefits................................ 1230.24
Other income............................ 150
Total monthly income.................... 1800.24

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 280
Clothing................................ 50
Petrol/diesel........................... 60
Road tax................................ 5
Car Insurance........................... 85
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1518


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Council Tax Arrears............236.52....50........0
JD Williams - closed ..........298.29....30........0
Provident 1 - closed...........1680......100.......0
Old Rent Arrears...............1100......45........0
H&M - closed...................426.......40........0
Provident 2 - closed...........408.......50........0
Total unsecured debts..........4148.81...315.......-


Monthly Budget Summary
Total monthly income.................... 1,800.24
Expenses (including HP & secured debts). 1,518
Available for debt repayments........... 282.24
Monthly UNsecured debt repayments....... 315
Amount short for making debt repayments. -32.76

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,148.81
Net Assets.............................. -3,648.81

cats2012

Hi there.

I'm not an expert on this but my main comment would be that you can cut down your grocery bill alot as £280 is alot for just you and a child. Also £50 on clothes is high - is this for you or your child? Mobile phone could also be brought down if you can get out of your contract.

Hope it helps a bit, I'm sure more people will be along soon.

Niv

louise1984 wrote: »

I am trying to sort out my finances.. To be honest I don't know where to begin! I know I waste money.. Lots of it, and never have anything to show for it, but somehow I can't seem to stop!? I also ignore debt letters and throw them straight in the bin
Since I have decided I cannot go on like this any more I have been opening and keeping them. I have created a SOA and have listed the majority of debts but I know there are others that I can't remember.. Also in my SOA I have listed the amounts I should be paying to the debts, when in fact I haven't actually been paying them, except my council tax and rent arrears.. I also have a B*****d payday loan that I got into a cycle with and then could afford it no longer..
So basically any ideas where to start?? Would it be a good idea for me to use one of these debt management companies that deal with the creditors? I am embarrassed about the state of my finances and am getting to the more 'serious' phase of a relationship with my BF I would be devastated if he found out how useless I am..



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

Monthly Income Details
Monthly income after tax................ 420
Partners monthly income after tax....... 0
Benefits................................ 1230.24
Other income............................ 150
Total monthly income.................... 1800.24

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 280 Can easiliy be halved
Clothing................................ 50 Too high, reduce to ~£20pm for both of you; look at ebay to sell old clothes and pick up bargains
Petrol/diesel........................... 60 Any car share option? bike? Walk? Obviously some driving may be essential, but anything less than 1 mile should be walked imo (well more than that but being nice)
Road tax................................ 5
Car Insurance........................... 85 Did you shop around? Def do when re-newal time comes around
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20 Can you elaberate at all?
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 Not horrendous, but you are in a bit of striff, i would reduce this, strickly only buy pressies for immediate family, token gifts etc
Haircuts................................ 20 If you go every month, reduce to 6 weekly to stretch the budget a bit
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1518


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Council Tax Arrears............236.52....50........0 Are these apr's correct? prioritise overpayments on the highest interest debts but pay just over teh min on all
JD Williams - closed ..........298.29....30........0
Provident 1 - closed...........1680......100.......0
Old Rent Arrears...............1100......45........0
H&M - closed...................426.......40........0
Provident 2 - closed...........408.......50........0
Total unsecured debts..........4148.81...315.......-


Monthly Budget Summary
Total monthly income.................... 1,800.24
Expenses (including HP & secured debts). 1,518
Available for debt repayments........... 282.24
Monthly UNsecured debt repayments....... 315
Amount short for making debt repayments. -32.76

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,148.81
Net Assets.............................. -3,648.81

Its not the greatest position to be in, but with a few adjustments you can sort this out, dont panic!

Niv

Little_Miss_Uni-Debt

louise1984 wrote: »

I am trying to sort out my finances.. To be honest I don't know where to begin! I know I waste money.. Lots of it, and never have anything to show for it, but somehow I can't seem to stop!? I also ignore debt letters and throw them straight in the bin
Since I have decided I cannot go on like this any more I have been opening and keeping them. I have created a SOA and have listed the majority of debts but I know there are others that I can't remember.. Also in my SOA I have listed the amounts I should be paying to the debts, when in fact I haven't actually been paying them, except my council tax and rent arrears.. I also have a B*****d payday loan that I got into a cycle with and then could afford it no longer..
So basically any ideas where to start?? Would it be a good idea for me to use one of these debt management companies that deal with the creditors? I am embarrassed about the state of my finances and am getting to the more 'serious' phase of a relationship with my BF I would be devastated if he found out how useless I am..



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

Monthly Income Details
Monthly income after tax................ 420
Partners monthly income after tax....... 0
Benefits................................ 1230.24
Other income............................ 150
Total monthly income.................... 1800.24

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 750 This seems very high do you live in an expensive area?
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 280 - This could be reduced a little, even down to £250 would help
Clothing................................ 50 Is this every month? Could you make do for with what you have for 2-3 months?
Petrol/diesel........................... 60
Road tax................................ 5
Car Insurance........................... 85
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 Ensure you put this aside, otherwise debts can spiral when christmas is looming
Haircuts................................ 20 - Make sure you put the cash to one side.
Entertainment........................... 30 Seems reasonable, a little low.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1518


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Council Tax Arrears............236.52....50........0
JD Williams - closed ..........298.29....30........0
Provident 1 - closed...........1680......100.......0
Old Rent Arrears...............1100......45........0
H&M - closed...................426.......40........0
Provident 2 - closed...........408.......50........0
Total unsecured debts..........4148.81...315.......-


Monthly Budget Summary
Total monthly income.................... 1,800.24
Expenses (including HP & secured debts). 1,518
Available for debt repayments........... 282.24
Monthly UNsecured debt repayments....... 315
Amount short for making debt repayments. -32.76

Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,148.81
Net Assets.............................. -3,648.81

Hello!

I just wanted to say hi and welcome you. Well done for starting to sort it out. I know it doesn't seem like it now but it IS managable and there is light at the end of the tunnel. There are a few ways above that you could cut back.

Are all your debts 100% interest free/interest frozen?

I would say the council tax arrears is the most important.

If you scaled back in a few areas for 2 months - say £30-50 off shopping, no presents or haircuts you could have £400 spare pcm for debt repayments. (I appreciate you already have written a limited budget)

It will only take a 2 months doing that to clear your council tax, then that extra you have freed up can go on your next important debt and so on.

If you did that for 10 months (now that's a big challenge) you'd 100% be debt free and all that spare income would be yours to save every month.

Best of luck with your journey, keep us updated!

National_Debtline

Hi there Louise

well done for taking the plunge and sharing your situation - it is easier said than done.

Some initial thoughts on your post and those following it:

- Yes the rent is probably higher than average, but if you're in the south east then it's not quite so unusual. If it's bigger than you need then maybe downsizing will be an option in the long run, but you can't just up sticks overnight.

- Yes, the council tax is indeed the most important of the debts you list and ideally you should aim to clear this sooner rather than later, as it can end up in the hands of a bailiff much more quickly than any of the others.

- In our experience grocery figures are often complete guesswork; not saying that this the case here, but keeping a diary of your shopping of the next month or two will help establish whether that £280 is an over or under estimate.

- We are assuming that none of the creditors have CCJs?

- Is your council tax debt in the hands of a bailiff or still "in-house"? (Hopefully the latter)

NDL