Pay off debt and save

xoAmyox

Hi all,

Sorry if this is a long thread, but I'm looking for some advice please.

I feel I have a good income, but never seem to have any money left at the end of the month.

I want to be able to save, and pay off my debts, and any advice is appreciated.

I have two cards (one is a high rate at 29.9%) which total approximately £2k. My credit rating is poor, are there any easy to get cards with low introductory rates, or balance transfers that I might be able to use to help pay it off quicker perhaps?

I've managed to target that a lot of my unnecessary spending is surrounding eating out, buying lunches at work etc. Which I hope to cut out immediately.

I also have high overdrafts (albeit interest free), which I would like to clear as quickly as possible and set myself straight with just one bank account for everything in and out. Perhaps having two is just hiding the extent of my spending?
Are there any accounts offering incentives to switch at the moment perhaps?

Any other tips greatly appreciated (I have filled out the budget planner, but I'm struggling to find other areas to save)

Thank you in advance

DCFC79

Why not complete an SOA and post it on here.

xoAmyox

Could you please link me to where I can complete one?

DCFC79

Here

Its the third thread down (or the first thread thats locked)

It will give others a chnace to look at where your spending money to the suggest what you could cut back on.

xoAmyox

Thank you

I think I've done it:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3576
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3576

Monthly Expense Details
Mortgage................................ 170
Secured/HP loan repayments.............. 201
Rent.................................... 795
Management charge (leasehold property).. 86
Council tax............................. 100
Electricity............................. 60
Gas..................................... 65
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 15
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 35
Groceries etc. ......................... 303.1
Clothing................................ 50
Petrol/diesel........................... 175
Road tax................................ 0
Car Insurance........................... 48.91
Car maintenance (including MOT)......... 29.17
Car parking............................. 6.33
Other travel............................ 0
Childcare/nursery....................... 325
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 10
Holiday................................. 10
Emergency fund.......................... 0
Eating out.............................. 90
Cigarettes.............................. 40
Total monthly expenses.................. 2759.51


Assets
Cash.................................... 540
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 540


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(170)......0
Hire Purchase (HP) debt ...... 0........(201)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card 1..................1800......61.49.....0
Credit card 2..................300.......9.56......0
Overdrafts.....................2200......0.........0
Total unsecured debts..........4300......71.05.....-


Monthly Budget Summary
Total monthly income.................... 3,576
Expenses (including HP & secured debts). 2,819.51
Available for debt repayments........... 756.49
Monthly UNsecured debt repayments....... 71.05
Amount left after debt repayments....... 685.44

Personal Balance Sheet Summary
Total assets (things you own)........... 540
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,300
Net Assets.............................. -3,760

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

kerri_gt

xoAmyox wrote: »

Thank you

I think I've done it:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3576
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3576

Monthly Expense Details
Mortgage................................ 170
Secured/HP loan repayments.............. 201
Rent.................................... 795
Management charge (leasehold property).. 86
Council tax............................. 100
Electricity............................. 60 seems quite high - have you checked you're on the cheapest tariff?
Gas..................................... 65 seems quite high - have you checked you're on the cheapest tariff?
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 15
Mobile phone............................ 30 can you reduce the amount you pay on the contract or go PAYG?
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 35
Groceries etc. ......................... 303.1 check out the old style moneysaving board, there's lots of ways you can reduce this - batch cooking, shop with a list and stick to it for instance
Clothing................................ 50 is this for you alone or children / OH too? This could be redcued while dealing with debts
Petrol/diesel........................... 175 can you reduce the amount of driving at all / car share etc?
Road tax................................ 0 none?
Car Insurance........................... 48.91 is this for you or you and OH? seems high, when is it due for renewal?
Car maintenance (including MOT)......... 29.17
Car parking............................. 6.33
Other travel............................ 0
Childcare/nursery....................... 325
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 30 this seems high, how many pets do you have / do they require special insurance or have pre-exitsting conditions? when is it due for renewal, shop around when it's due.
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 20
Entertainment........................... 10
Holiday................................. 10
Emergency fund.......................... 0
Eating out.............................. 90 reduce this, if you have debts limit the number of meals out, cook at home, look for vouchers you can us / check out Toptable etc
Cigarettes.............................. 40 give up / cut down
Total monthly expenses.................. 2759.51


Assets
Cash.................................... 540
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 540


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(170)......0
Hire Purchase (HP) debt ...... 0........(201)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card 1..................1800......61.49.....0
Credit card 2..................300.......9.56......0
Overdrafts.....................2200......0.........0
Total unsecured debts..........4300......71.05.....-


Monthly Budget Summary
Total monthly income.................... 3,576
Expenses (including HP & secured debts). 2,819.51
Available for debt repayments........... 756.49
Monthly UNsecured debt repayments....... 71.05
Amount left after debt repayments....... 685.44

Personal Balance Sheet Summary
Total assets (things you own)........... 540
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,300
Net Assets.............................. -3,760

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

i've added a few notes to your SOA and I'm sure others will also add some advise. For all the insurance policies, shop around when they are due for renewal and don't forget to use cashback sites like Topcashback.com if you set up a new policy.

I suspect that you are actually spending more than you think if you don't have the amount you calcualte on your SOA left each month. Best thing is to keep a spending diary - write down EVERYTHING you spend money on and you'll get a real picture of what you spend versus what you think you spend.

Have a look on the DFW board at some challenges too, I've been doing the NSD (No Spend Day) challenge for two years now and it's really helped me focus what I spend on - my problem was those odd £1 / £2 every lunchtime which only came to light with my spending diary. Now I have to be more organised and it gives me time to consider wether X / Y / Z really are total necissities.

xoAmyox

Thank you for the comments above. I have a 3 bedroom house, is my gas and electric really that high?
I've only just moved here, so the DD has been set at that level, and I'm awaiting the first bill. I'll definitely adjust it once I know more about my usage.

My phone contract is fixed at that amount, as I work in IT, I need a very large data plan and have a very new phone. Part of my works expenses cover this (included in the income at the top)

The clothing bill is high, it's for myself and my son only. He has problems with wetting and other accidents, and I find that with the frequency of the accidents that washing just isn't enough a lot of the time unfortunately.

My petrol amount is high at the moment for the holidays, as I have to travel much further for childcare for the working hours I need. You are right, this will reduce again in Sept. Yes, I'm lucky enough to have no car tax, as it's a low emission car

I honestly thought my car insurance was a good deal, as I'm only 23, any tips welcomed though!

My pet insurance covers two pedigree cats - so I agree it is high (they are an investment as I intend to start breeding them in the near future)

Definitely agreed, that as of this weekend no more eating out/buying lunches at work. I'm off to the supermarket this morning to do a full weekly shop and enjoy some cooking this afternoon for lunches.

Smoking...hmmm...could be a sticking point. If I can get a doctors appointment outside working hours, I will definitely make a huge effort to quit. But at the moment, I am working long hours.

ikkle87

Hi there you've got a mortgage payment but in the assets don't list a property, what is the mortgage for? You need to include APR's on your credit cards too hun.

Don't forget the little spends like a magazine or a coffee etc as even though your accounting for the lunches you might forget about these, there is a tool on MSE where you can put in what you buy ie a packet of cigs, how much they are and how often you buy them and it works out how much you save per year by cutting them out. Or even just cutting down.

Definitely try looking at the Old Style board, it's amazing what you can do and save.

Your car insurance isn't that bad if your only 23, I've seen people a lot older with a lot higher premiums.

You've not listed a TV licence - do you have a tv? Do you pay this yearly? If you do try splitting the amount by 12 and putting it aside so that your not having to scramble for the full amount in one go one month. You could do the same for car tax if you have to pay it.

gregorypeck

£480 saved if you quit smoking for a year! Sometimes I wish I smoked just so I could give up and save that kind of money.

Good luck with it all, you have made a positive start by sorting all these areas out. You are also in the right place to find money saving advice.

mildredalien

You're looking at a decent surplus to tackle your debts - if you actually have that money left over each month!! As others have said you need to keep a spending diary (or at least use a few months bank statements to check out how much cash/debit card transactions are coming out each month for 'extra' stuff....) If you really have £600 odd left over every month, why are you putting stuff on credit card or using your overdraft?

The good thing is that if you can make sure you only spend what's in your SOA, you could be debt free in just over 6 months without even cutting back, and then you can start putting some of that money into savings etc.

One other question - if you are living with another adult who doesn't work, why do you need childcare?

[Deleted User]

xoAmyox wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3576
Partners monthly income after tax....... 0Is this right that your partner is not working, and you are paying for child care? Could they do even a few hours a week?
Benefits................................ 0You should get child benefit, no?
Other income............................ 0Any way to put something here?
Total monthly income.................... 3576

Monthly Expense Details
Mortgage................................ 170
Secured/HP loan repayments.............. 201
Rent.................................... 795
Management charge (leasehold property).. 86
Council tax............................. 100Is this paid over 10 or 12 months? If 10, consider asking your council if you can spread over 12
Electricity............................. 60Both this, and below combined seem a bit on the high side (but then maybe not if one person is at home all day - check that you are on the cheapest tariff for the area/usage and do a comparison every 6-12 months to ensure that you remain on the most competitive tariff. Also, turn the thermostat down on your boiler by a few degrees you'll never notice (no one in my house did), also make sure that you switch things off when not in use, and not on standby, and make sure that when there's winter weather when the heating is on that you turn off/down radiators in rooms not being used, use energy saving light bulbs etc etc
Gas..................................... 65as above - also, if switching company is cheaper, check to see if there are any incentives on the cash back sites (Quidco, onepoll, topcashback etc)
Water rates............................. 35Is this a meter or a standard fee, if standard fee, would a meter be cheaper?
Telephone (land line)................... 15Is this phone only? You should be able to get home phone and internet for approx £20-£25 per month (Talk, Talk), compare companies that operate in your area
Mobile phone............................ 30How many phones is this for? Are you in a contract? When does the contract end? Do you use all the inclusive data/calls/texts - if not consider downgrading package, and compare prices/tariffs with SIM only and PAYG - I saved a fortune by switching to GiffGaff - and I haven't changed my usage
TV Licence.............................. 0Don't you have a TV?
Internet Services....................... 35As above, you should be able to get this combined with home phone for a lot cheaper
Groceries etc. ......................... 303.1This also seems like a few savings could be made - try dropping brands, meal planning, batch cooking, try lidl/aldi, shop with a list and only buy what you need, don't shop hungry
Clothing................................ 50Every month? Perhapse you could have a clear out and sell what you no longer wear on E-bay? Also, try and replace the things that you really need when there are sales and offers on
Petrol/diesel........................... 175
Road tax................................ 0??
Car Insurance........................... 48.91
Car maintenance (including MOT)......... 29.17Does this get saved somewhere for when it's needed?
Car parking............................. 6.33
Other travel............................ 0
Childcare/nursery....................... 325
Other child related expenses............ 50What's this? Is it good value? Can you get the same/similar elsewhere for cheaper?
Medical (prescriptions, dentist etc).... 0never?
Pet insurance/vet bills................. 30
Buildings insurance..................... 0Is this included elsewhere?
Contents insurance...................... 10
Life assurance ......................... 20
Presents (birthday, christmas etc)...... 10Does this get saved somewhere for when it's needed?
Haircuts................................ 20See if tehre's a local college nearby that does trainee cuts etc for free/really cheap
Entertainment........................... 10What does this get spent on?
Holiday................................. 10 Perhaps put on hold until debt free? Does this get saved somewhere for when it's needed?
Emergency fund.......................... 0It might be a good idea to start putting something here (even just a little until debt free), so that if something breaks, and needs replaced/repaired you won't be tempted to reach for credit to cover the cost
Eating out.............................. 90This seems a fair bit, bring packed lunches to work (left overs are easy to bring, and there are also lots and lots of low cost tasty lunch ideas on various threads on here- just do a search), as for dinners out, just cut down how often you go and go when there are deals and offers on, check Martin's main site for rest. currently running offers/vouchers off - also, if you use tesco you can exchange your vouchers for rest vouchers
Cigarettes.............................. 40Try giving up - it'll save your wealth/health - your local NHS should be able to help you with this
Total monthly expenses.................. 2759.51


Assets
Cash.................................... 540Is this ear marked for a specific purpose? If not, then pay towards highest charging debt
House value (Gross)..................... 0I thought you had a mortgage?
Shares and bonds........................ 0
Car(s).................................. 0Don't you have a car?
Other assets............................ 0
Total Assets............................ 540


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(170)......0How much is the total debt, and what's the interest rate being charged?
Hire Purchase (HP) debt ...... 0........(201)......0As above, and when will it be fully repaid?
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APRYou need to list the APR's to know which is the best way of tackling this!
Credit card 1..................1800......61.49.....0
Credit card 2..................300.......9.56......0
Overdrafts.....................2200......0.........0Are you charged at all for this service? Interest? Standard charge?
Total unsecured debts..........4300......71.05.....-


Monthly Budget Summary
Total monthly income.................... 3,576
Expenses (including HP & secured debts). 2,819.51
Available for debt repayments........... 756.49
Monthly UNsecured debt repayments....... 71.05
Amount left after debt repayments....... 685.44Do you actually have this left at the end of every month? If not, then keep a spending diary noting down everything that gets spent, from the really small things, to the really big things and everything in between - you will soon know where this goes

Personal Balance Sheet Summary
Total assets (things you own)........... 540
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,300
Net Assets.............................. -3,760

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

Hey, well done for posting, I have made some comments and suggestions above,

HTH,

D9