Here it goes again...

Sharon87

Edit: (Maybe the title should be 'Here I go again, on my own! Going down the only road I've ever known...' Would be fitting seeing as I love Rock music!)

So here I am again, trying to become debt free. I've had many attempts but I always seem to cave and spend more money than I earn.

I have kept a spending diary since January and the results are shocking!

A bit about me first before I divulge the information. I work temporary contracts in the TV industry, have been doing that for 2.5 years. When I started in I had debts of around £2.5k, from student overdraft and family lending me money when I was unemployed. But since then my debt has more than doubled, even though my wage has been the highest I've ever earned, but last year I still only earned 16k pre tax! And living in London that's quite difficult to live on with a social life as well.

I am going to complete an SOA based on my spending diary, and tell you where it's all spent on! Also I need to work out how much debt I actually owe, that's the scary part...

Wish me luck! I'll be back here to post soon!

longforthesun

Wishing you luck I am sure you can do it.

RichCH

I can sympathise in a way. When I left university I started as a runner in Soho on 12k a year (making about £13,000 all in all - it was 2003). I came out of uni with about £7,000 of personal debt and that quickly rose to £8,000 where I managed to hold it there for a couple of years.

It was only when I tackled the cause of it - going out, drinking etc - before that started to come down, little by little.

Sharon87

Runner in Soho, was it in a post production place by any chance?

I've done it SOA:

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1120 (average take home pay last year)
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1120

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450 -
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 22
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 82
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 92
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 12.75
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 3
Haircuts................................ 0
Entertainment........................... 120
Holiday................................. 132
Emergency fund.......................... 0
Work lunches............................ 21
Other (cash, stationary, unknown........ 74
Toiletries/beauty....................... 3
gym..................................... 19.95
Total monthly expenses.................. 1061.7


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax CC.....................1468.48...25........15.9
Natwest CC.....................638.34....6.38......0 (0% expires in 6 months)
Virgin CC......................2451.4....24.5......0 (0% expires in 16 months)
Natwest Overdraft..............326.7.....0.........19.9
HSBC Overdraft.................548.22....0.........19.9
Mum............................460.......0.........0

I swear there use to be more at the bottom on the SOAs but this is all that's provided on the format. It says I have a surplus of £2.42 after minimum payments!! And my debt is £5893!!!


My rent is inclusive of all bills, so don't need to pay anything there. This SOA is based upon a rough spending diary. Other is where I need to look at, I used my bank statements to make a spending diary, and where there is cash I put it down as other. But this also includes 4 hours of driving lessons and other things like stationary, electric cables I needed and posting things at post office.

My entertainment is obviously where I spend a lot and holiday. I have spent £925 on holidays and music gig tickets this year! This is where I'm cutting back. There are 2 bands I will see if they tour and that's it.

The overdrafts are a recent thing, that's what's prompted me to focus on my debts. I start my new job next week, which will last for 6 weeks. I am planning on not visiting the canteen or go out for lunch. And possibly see if I can work from home during some of the Olympics, as my job means it's possible to do that, which will help me save on transport.

Wish me luck! I'll post my other downfalls and progress when my brain starts working again

Sharon87

Oh yes I've got to clear the debt as well as saving to go to my brother's wedding in South Africa in 2 years... needing about £1500 altogether he reckons! I know it's not good to have savings whilst I have debt, but I've got £20 so far saved towards the trip lol

RichCH

I have to say that when I was in your position owing that much money, I would never have dreamed about spending money on holidays. I didn't have a holiday for over 5 years.

Concerts? Sell the tickets to a mate. To get out of debt, you need to start being boring I'm afraid.

Also, £75 a month on toiletries etc???

Lastly, cancel the gym and go for a run. There's £120 right there.

ConnorH

Hi there Sharon, your history is intriguing, and I bet the work in the TV industry is interesting! I'm sad to hear about your current debt and money struggles, so hopefully I might be able to offer some help, even if it's only slightly helpful!

Here's a copy of your SOA and some notes I've put, just some thoughts!


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1120 (average take home pay last year) - Possibility to boost this income from a second job (evening/weekend job?)
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1120

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450 -
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 22 - Switch to a cheaper deal. If you're on pay as you go, just cut down on the use of your phone. If you're on contract, shop around for better deals when the contract expires, or haggle with your current provider for a better deal. I recently got my bill knocked down from £25 a month to £16, which is £9 a month better off! (it's something)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 82 - I typically spend this too a month, but I tend to buy a lot of things I don't actually need (though do want!). Is it possible to switch to a cheaper brand for groceries to save the odd pound here or there, or to just stop buying the things you don't actually need - luxuries!)
Clothing................................ 30 - Possibly don't buy any clothes for a month, then if you need some the next month, buy some, just not designer brands for now!
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 92 - How do you travel to work? If public transport, can you get any discounts such as cards etc to save money in the long run? May be worth looking into.
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 12.75
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 3
Haircuts................................ 0
Entertainment........................... 120 - Obvious one here, cutting down on the entertainment you have a month. If this means not going to the cinema as much, or not renting a movie, then so be it, you'll be saving the pounds!
Holiday................................. 132
Emergency fund.......................... 0 - Recommend
Work lunches............................ 21 - Possibly taking a packed lucnh with you to work, to save you buying extras when you're at work? May also save money from switching.
Other (cash, stationary, unknown........ 74 - Look to see if any savings can be made here.
Toiletries/beauty....................... 3
gym..................................... 19.95 - Another obvious point here: cancel the gym membership! Look for cheaper alternatives or just cut it out all together.
Total monthly expenses.................. 1061.7


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Halifax CC.....................1468.48...25........15.9
Natwest CC.....................638.34....6.38......0 (0% expires in 6 months)
Virgin CC......................2451.4....24.5......0 (0% expires in 16 months)
Natwest Overdraft..............326.7.....0.........19.9
HSBC Overdraft.................548.22....0.........19.9
Mum............................460.......0........ .0


If you post on this thread regularly to up-date your situation, I'm sure all of us will give you a helping hand with support and advice.

I wish you the best of luck, we're all on your side!

- Connor.

unimaginative_user_name

For me the big obvious ones are entertainment and holidays. Could you ask family members to give you concert tickets as a birthday or Christmas present? Do you have friends and family in nice parts of the country where you could go and stay for a few days as a break from London and forget about holidays for a bit?

One other thing, have you already invested a lot in driving lessons. My experience of living in cities is that cars aren't necessary and once you have them the cost of petrol, insurance, tax and repairs makes them a major drain on the budget, not to mention the initial cost. They can be hard to budget for too if you have unexpected repair bills. It might be an idea to put driving on the back burner until you've cleared some more of your debt.

By the way what great motivation for clearing your debts - your brother's wedding in South Africa. Best of luck in your debt-free journey.

Sharon87

unimaginative_user_name wrote: »

For me the big obvious ones are entertainment and holidays. Could you ask family members to give you concert tickets as a birthday or Christmas present? Do you have friends and family in nice parts of the country where you could go and stay for a few days as a break from London and forget about holidays for a bit?

One other thing, have you already invested a lot in driving lessons. My experience of living in cities is that cars aren't necessary and once you have them the cost of petrol, insurance, tax and repairs makes them a major drain on the budget, not to mention the initial cost. They can be hard to budget for too if you have unexpected repair bills. It might be an idea to put driving on the back burner until you've cleared some more of your debt.

By the way what great motivation for clearing your debts - your brother's wedding in South Africa. Best of luck in your debt-free journey.

I don't need driving lessons anymore, as you see in my signature. I passed my test, first time It was more for work related, I got turned down for lots of jobs because I couldn't drive.

I know the best thing would be to sell some of the gig tickets, but some of them probably wont sell as they're small bands, and only cost 10 quid anyway, and the ones that could sell I've been looking forward to for months and months. I am not going to buy anymore gig tickets, but will attend the ones I'm going to. Especially Blink 182 as I have been waiting to see them ever since they postponed for 11 months, meaning I couldn't go to the rearranged date! So bought ticket for a newly released gig.

My holidays this year have been taken. 2 nights in France, one in Paris one in Disneyland. And I went Download Festvial. I wouldn't change those holidays even if I could go back in time.

I still want to have some fun, I am only young once, but I'm going to be more creative in the ways I have fun. I do have family and friends in other parts of the country, but the train fares are horrendous!

My budget for the next 6 months will have no tickets/holiday, except for savings for South Africa. I will keep an ear out for any free music gigs of my favourite bands that are starting out to keep me entertained. I don't tend to drink at gigs, so it may cost me a diet coke at most.

I am determined to be debt free, and I am making changes, me and my brother have made a pack not to go to any more gigs, as obviously he's saving for his wedding. So that is one thing that has changed.

Sharon87

ConnorH wrote: »

Hi there Sharon, your history is intriguing, and I bet the work in the TV industry is interesting! I'm sad to hear about your current debt and money struggles, so hopefully I might be able to offer some help, even if it's only slightly helpful!

Here's a copy of your SOA and some notes I've put, just some thoughts!


Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1120 (average take home pay last year) - Possibility to boost this income from a second job (evening/weekend job?) Second job not really an option due to the erratic hours some of the jobs in TV require
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1120

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450 -
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 22 - Switch to a cheaper deal. If you're on pay as you go, just cut down on the use of your phone. If you're on contract, shop around for better deals when the contract expires, or haggle with your current provider for a better deal. I recently got my bill knocked down from £25 a month to £16, which is £9 a month better off! (it's something) Contract is coming to an end in next couple of months, but I really want a new phone, preferably iphone, but may have to wait a bit longer for this I guess
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 82 - I typically spend this too a month, but I tend to buy a lot of things I don't actually need (though do want!). Is it possible to switch to a cheaper brand for groceries to save the odd pound here or there, or to just stop buying the things you don't actually need - luxuries!)
Clothing................................ 30 - Possibly don't buy any clothes for a month, then if you need some the next month, buy some, just not designer brands for now! I plan on buying 0 clothes for a while, but have had to fork out £61 for 2 bras recently!! Due to my size I can't buy £4 ones from Asda!
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 92 - How do you travel to work? If public transport, can you get any discounts such as cards etc to save money in the long run? May be worth looking into. This is Oyster pay as you go mostly. It works out the cheapest. But I plan on trying to travel off peak after work by walking some of the way home. Can't walk all the way home as it's about 7 or 8 miles!
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 12.75 this was because of dentist
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 3
Haircuts................................ 0
Entertainment........................... 120 - Obvious one here, cutting down on the entertainment you have a month. If this means not going to the cinema as much, or not renting a movie, then so be it, you'll be saving the pounds! this is a mixture of going out, buying dvds.etc Which I'm cutting back on
Holiday................................. 132
Emergency fund.......................... 0 - Recommend
Work lunches............................ 21 - Possibly taking a packed lucnh with you to work, to save you buying extras when you're at work? May also save money from switching. Yeah I am going to do this. Done it in my previous job for most days
Other (cash, stationary, unknown........ 74 - Look to see if any savings can be made here. Definitely, mostly it's cash where I don't know where it went!
Toiletries/beauty....................... 3
gym..................................... 19.95 - Another obvious point here: cancel the gym membership! Look for cheaper alternatives or just cut it out all together. Will probably cancel, as I tend not to use it as regularly as I should. Atleast it's on a month by month contract!
Total monthly expenses.................. 1061.7


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly.. .APR
Halifax CC.....................1468.48...25........15.9
Natwest CC.....................638.34....6.38......0 (0% expires in 6 months)
Virgin CC......................2451.4....24.5......0 (0% expires in 16 months)
Natwest Overdraft..............326.7.....0.........19.9
HSBC Overdraft.................548.22....0.........19.9
Mum............................460.......0........ .0


If you post on this thread regularly to up-date your situation, I'm sure all of us will give you a helping hand with support and advice.

I wish you the best of luck, we're all on your side!

- Connor.

Thanks for the support. I am going to stick to a strict budget next week of £20 not including work transport. My monthly take away will be out the window as well, as trying to lose weight and lose debt!

Sharon87

Just to add a few progress things of what I've been doing.

Sold some stuff on ebay my profit after fees and postage is altogether: £43.26

So that's a step, I'm debating what debt to put this towards to. Probably one of the overdrafts as they're the most costly.