LBM number 3?

BluePumpkin

I think this is the third time I've tried to get my debt sorted, and it grows everytime I stop looking at it! :eek: I'm trying to work out a budget plan going forward so that I can pay all of this off. I thought the SOA would help, and that you all might be able to help point me in the right direction with some of this.

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.......................1

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1500

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 125
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 20
Car Insurance........................... 47
Car maintenance (including MOT)......... 30
Car parking............................. 25
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 35
Haircuts................................ 15
Entertainment........................... 8
Holiday................................. 0
Emergency fund.......................... 0
Union Fees.............................. 12
Total monthly expenses.................. 445


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................1000......0.........0
Payday loans...................3500......0.........0
Bank loan......................3764......159.......0
Family loan....................12350.....0.........0
Total unsecured debts..........20614.....159.......-


Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 445
Available for debt repayments........... 1,055
Monthly UNsecured debt repayments....... 159
Amount left after debt repayments....... 896

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,614
Net Assets.............................. -18,614

I'm lucky enough to live with family while trying to pay this off- I just need to contribute food to the house (3 people) as and when I can. I've not really put in anything for entertainment/going out/pocket money, as I've not really tried to budget properly in advance before, and it feels like I shouldn't be doing any of that stuff till it is all paid off...

My vague plan is to pay off the payday loans, then the bank loan, then the overdraft. I'll need to pay the family loan off while I'm doing that, but haven't worked out the amounts for each. On a mission today to calculate those and find out what the APRs are! Would any other information be good to have?

bexiboo92

You do realise with that amount of money left over per month you could be debt free in 6months....

I'd sign onto a debt management plan; you can contribute a good £500 to £600 a month towards the debts and hopefully without any hassle from the companies themselves.

BluePumpkin

In 6 months? With £20k of debt and after tax earnings of aprox £18k I don't know how, but that could just be my sub par math brain

The DMP is something I've looked into, but as I'm ok meeting the repayments for everything at the moment, I'm hoping to do it all solo...

eyeopener2

£896 of surplus would clear £10k worth of debt in a year, so that would sort the overdraft, payday loans and bank loan.

That would mean sticking to the budget you have above, which probably isn't realistic if you haven't got £896 left over each month.

Where does the surplus go? Is it all on entertainment?

E2

bexiboo92

BluePumpkin wrote: »

In 6 months? With £20k of debt and after tax earnings of aprox £18k I don't know how, but that could just be my sub par math brain

The DMP is something I've looked into, but as I'm ok meeting the repayments for everything at the moment, I'm hoping to do it all solo...

Okay that was my hungover mind not reading properly haha.

Just put every spare penny into the debt whilst you haven't got to pay out for much. Wish I had £600-£700 left over each month haha. Good luck

BluePumpkin

E2- this is a new salary, so I haven't had this much to play with before! That's why I thought I'd get on here double quick to make sure I do the right thing with it. That's also why I don't know how good the figures are.

Haha no worries bb92, I was ready to listen to the plan!!!

With putting all the spare to debt, is it better to do that than, for example, put money aside for car MOT etc?

R_P_W

If you are going to have unavoidable costs that you know about (such as MOT) then you need to budget for it. Otherwise you SOA isn't accurate and you won't have the surplus you say you will have.

BluePumpkin

Thanks RPW. Wasn't sure I had the logic right- I know Martin says to pay off debts before you save, but I guess things you know you will spend money on are ok

Really hoping the third time is the charm and I can actually be debt free this time around!

sistafromanothermista

Maybe set up a few 'pots' for things you know you're going to need like car tax/MOT/dentist/insurance etc. that way you'll be prepared.

[Deleted User]

BluePumpkin wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1500
Total monthly income.................... 1500[/B]

Monthly Expense Details
Mobile phone............................ 50This seems pretty high - if in contract see if they'll allow you to downgrade a tariff (some will/some won't), if/when out of contract - try and shop around, go SIM only, PAYG - GiffGaff have some good offers and tariffs just now
Groceries etc. ......................... 125 Does this cover B,L, D? Bring packed lunches to work, meal plan, batch cook, plan ahead...try lidl/aldi
Clothing................................ 0need anything here?
Petrol/diesel........................... 60You don't seem to use the car that often, is it necessary? Would public transport/cycling/walking be sufficient?
Road tax................................ 20
Car Insurance........................... 47
Car maintenance (including MOT)......... 30Is this enough?
Car parking............................. 25
Medical (prescriptions, dentist etc).... 18If this is prescriptions, consider if a pre-paid cert would be cheaper. If this is contacts, see if online is cheaper
Contents insurance...................... 0might be worth considering this
Presents (birthday, christmas etc)...... 35does this get saved somewhere for when it's needed?
Haircuts................................ 15 See if there's a college nearby that does cheap trainee cuts, or go an extra week or two between cuts
Entertainment........................... 8what does this cover? Is it realistic?
Emergency fund.......................... 0might be worth putting something here - especially if in an emergency you reach for further credit?
Union Fees.............................. 12
Total monthly expenses.................. 445


Assets
Cash.................................... 0where do you save cash for non-monthly expenditure? Might be worth staring to keep it here
Car(s).................................. 2000Consider if a car is essential
Total Assets............................ 2000[/B]


No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APRWhat are the APR's? I'm pretty sure that at the very least the PAYDAY loans will be crippling you with interest? What about the others? Any are you really only making monthly payments to the bank loan?
Overdraft......................1000......0.........0Are you paying a fee/interest?
Payday loans...................3500......0.........0What's the monthly minimum payment? and the APR?
Bank loan......................3764......159.......0What's the APR?
Family loan....................12350.....0.........0Are you making any monthly payments towards this?
Total unsecured debts..........20614.....159.......-


Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 445
Available for debt repayments........... 1,055
Monthly UNsecured debt repayments....... 159
Amount left after debt repayments....... 896Do you really have this left at the end of every month? My guess is No if you've been lured in to payday loans, so I'd suggest keeping a spending diary to identify exactly what you are spending and where - note doen (on phone or notepad) absolutly everything that you are spending, from cartons of milk, coffees, bars of chocolate, newspapers, to phone bill, debt repayment, and everything else and everything in between - you will soon see where your cash goes, how much gets spent where and then you'll be able to see what are essentials, what can be cut back, and be able to put to gether a realistic budget that can be stuck to

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total Unsecured debt.................... -20,614
Net Assets.............................. -18,614


My vague plan is to pay off the payday loansGiven what the interest rate on these is likely to be, then yes focus here, but you really need to make sure that you are paying the minimum towards the others at the same time, then the bank loanDepends on the cost of this and the overdraft as to which is better to pay off first, then the overdraft. I'll need to pay the family loan off while I'm doing that, but haven't worked out the amounts for each. On a mission today to calculate those and find out what the APRs are!knowing the APR's is crucial Would any other information be good to have?

Comments above,

HTH

D9

BluePumpkin

Hi sistafromanothermista (I love your name btw!), that’s a really good idea, I’ll look into doing multiple online savings accounts...

Hi d9-
Yes, the mobile phone part is insane, but unfortunately I can’t change it till February
The food is a real estimate- I’ll be trying to beat that. Managed to get packed lunch for the week for £3.72 with the help of a Tesco voucher! :j

Clothing wise I probably do need something, but I have no idea at the moment. Never really recoded stuff before. To be fair, I can’t remember the last time I bought clothes!
I’m actually hugely dependent on my car- I live about 30 miles from where I work and have to drive there and back (Cornwall!). But it is only a little car and fairly fuel efficient. Again, that is an estimate...
Maintenance, probably not but no real idea how much to put! I’m trying to look at everyone else’s SOAs to cheat.
Pre paid cert going on the list!
Contents- I’m piggybacking off my parents’!!!

Presents- at the moment no, but I’m thinking about the pot idea mentioned above...
College haircuts going on the list!
Entertainment atm is only lovefilm- I spend more than this usually, so I’m trying to stick to as low as possible for now and then make that the budget going forward.
Emergency fund will be started!
I don’t save cash atm! But I will be and will record it there dutifully
I am making other payments, but they change frequently. The APRs are insane, so just trying to pay them off in order of APR as quick as possible.
No monthly payment to family at the moment, only just started earning again (this month)!
Thank you for all your advice, there is a lot there to digest and a lot I will put in place. This SOA will soon change when I have my spending information! I will make it my mission to find the APRs!