SOA...it's worse than I thought :(

joedenise

Sign up for Freegle or Freecycle (whichever it is in your area) to get a slowcooker if your friend's doesn't become available to you.

Denise

DMPhereIcome

somethingcorporate wrote: »

You say you are contributing £20 to an "emergency fund" yet do not list anything on cash assets.

How much is your emergency fund at? I'd suggest it would be worth using some of this to pay down your capital one which is at a horrible rate.

Unfortunately iPhone is a very luxury item and your budget does not really allow for it. For the sake of your little one flog it and get something cheap and cheerful.

The emergency fund is at a whopping...£20:o

Firewalker

DMPhereIcome wrote: »

I'm a very impatient person and want to see changes now but I'm realising that everything takes time...and a bit more effort!

You can make very quick gains by watching the food - not even necessary to buy reduced stuff. Changing habits - shopping in a different supermarket, for intance, cooking stews and soups, baking at home...We started making most things from scratch - it doesn't take that much time (and I find it is one of the few things that helps me relax from writing). A breadmaker is an incredible investment - pays for itself in three months max and you and kiddie can have great, healthy artesan bread on demand.

Much money is spend on 'God knows what', as a friend calls it. This is the category that you can cut immediately (in my case it was well over £300 monthly on coffee and lunches). Just an example.

Once you start controlling spending (by having information, forming judgement and taking action) you can start looking at increasing income - this is the fastest way out of financial mess. Hit the credit cards (the one with 34% APR first - it is only about £1,500) and snowball it.

Good luck and if you need more information send me a private message.

Firewalker

Kantankrus_Mare

Im following your thread with interest

You seem very determined and full of enthusiasm.

Keep it up and I guarantee as the debts gradually come down and one by one disappear life will be easier.

We had quite a few debts a few years ago and it really really niggled me even though none were accruing interest.

It was hard work to get them cleared but oh what a great feeling to just have the mortgage left

DMPhereIcome

quick update...

Have gained a slow cooker for my favourite sort of price....free!

Have sort of; if you squint a bit; managed to switch bank accounts successfully - this weekend will be spent sorting out the last of the DD's and SO's so they all go out at the beginning and don't leave me scrabbling around all month!

Child has announced he wants packed lunches instead of school dinners...result! (although I'm reluctant because I don't like the thought of him not having a hot meal through winter...for those of you who wish to virtually slap me then feel free...he's five and he'll probably win anyway so do your worst )

Lastly...I've got £50 to last me a fortnight (that's more than I'm used to before you think I'm showing off!) and I've got petrol in the car and done a huge Aldi shop so don't need food (alright that was showing off..)

Please let me get through this month with no overdraft charges (9 days in and counting....)

thanks again everyone for your replies x

[Deleted User]

The hard reality is that you are currently living £355 over your income. You need to cut £355 off your monthly spend or add £355 extra income. I would advise small savings on things like utilities, Sky, clothing, groceries - but you need to accept that your lifestyle will have to change! The cards must be cut up.... When the contract is finished/reduced the iphone can go - can be sold for several hundred pounds. You've been living as if you have an income of £4260 higher than actually have annually. I don't mean to sound harsh or nasty but I get the feeling from your posts that you may not have accepted the huge overspends. Yes 'things' are nice but you cannot afford to have/run these 'things' currently!

You may still need to arrange a DMP for the outstanding debts as I cannot see where you can gain an extra £355 a month in your budget. Even with a DMP you will have to cut up the cards and budget wisely.

Whatever decisions you make, you maybe need to analyse why you got into debt, what the triggers/emotional reasons were and really work hard to change the behaviours that got you into debt, getting help if needed.

Otherwise you could be back in the same situation in a few years' time. Good luck

DMPhereIcome wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 954
Partners monthly income after tax....... 0
Benefits................................ 795
Other income............................ 350
Total monthly income.................... 2099

Monthly Expense Details
Mortgage................................ 465
Secured/HP loan repayments.............. 187
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 96
Electricity............................. 53 - start living energy efficiently to keep this from going up when the cost inevitably does next year.
Gas..................................... 0
Oil..................................... 40
Water rates............................. 63 - definitely consider a water meter, used efficiently this bill can come down by at least half
Telephone (land line)................... 22
Mobile phone............................ 39 - reduce, downgrade contract asap
TV Licence.............................. 13
Satellite/Cable TV...................... 20 - go free channels only
Internet Services....................... 0
Groceries etc. ......................... 250 - this can probably be reduced to £160ish with careful planning (and still eat plenty!)
Clothing................................ 20 - just get essentials, try charity shops for extras
Petrol/diesel........................... 100 - try reducing non-essential journeys to save a bit on this
Road tax................................ 13
Car Insurance........................... 45
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 300 - is this cost 100% unchangeable?
Other child related expenses............ 55 - packed lunches included in groceries
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 14 - essential? Have you ever needed to claim on this?
Buildings insurance..................... 25
Contents insurance...................... 8
Life assurance ......................... 19
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - need to have something here
Haircuts................................ 25 - use local college or model nights at salons for cheap student cuts
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 20 - at the moment use this to chuck at debt
Total monthly expenses.................. 1922[/B]


Assets
Cash.................................... 0
House value (Gross)..................... 157000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 157000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 102000...(465)......3.84
Hire Purchase (HP) debt ...... 3500.....(187)......17.9
Total secured & HP debts...... 105500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................8200......240.......0
HSBC CC........................2500......70........18.9
HSBC OD........................1600......20........17.9
Family/various.................1000......50........0
Creation.......................645.......33........19.9
KandCo.........................450.......34........0
Capital One....................1600......85........34.9
Total unsecured debts..........15995.....532.......-


Monthly Budget Summary
Total monthly income.................... 2,099
Expenses (including HP & secured debts). 1,922
Available for debt repayments........... 177
Monthly UNsecured debt repayments....... 532
Amount short for making debt repayments. -355

Personal Balance Sheet Summary
Total assets (things you own)........... 157,000
Total HP & Secured debt................. -105,500
Total Unsecured debt.................... -15,995
Net Assets.............................. 35,505


Reproduced on Moneysavingexpert with permission, using Firefox browser.[/i]

girlatplay

Buy a food flask (think you can get them in the supermarkets quite cheap). You could give DS hot food for his lunch that way.

Kantankrus_Mare

girlatplay wrote: »

Buy a food flask (think you can get them in the supermarkets quite cheap). You could give DS hot food for his lunch that way.

Oh my god..................I'd completely forgotten that my mam used to do this when I used to take pack up. :rotfl:(Im 46 now)

Not sure if I was at school or college but remember having a fat flask with either spaghetti hoops ( which I still love) or some kind of soup.

Can remember getting some curious looks off other packer upperers but Im sure I appreciated something hot in the winter rather than another boring sandwich.

ViolaLass

Doesn't your child get a hot meal in the evening?

girlatplay

Kantankrus_Mare wrote: »

Not sure if I was at school or college but remember having a fat flask with either spaghetti hoops ( which I still love) or some kind of soup.

Can remember getting some curious looks off other packer upperers but Im sure I appreciated something hot in the winter rather than another boring sandwich.

All I could think of when I posted that was spag bol!