Newbie saying hi!

Sleggysortingmoney

Hi all,

Just thought I'd say hi and introduce myself...

Not sure what our debt was at its worst point, but we owed over £15000 at end of 2011. Been trying to tackle it ever since, although haven't really given up the spending as much as we'd intended (have a long line of excuses as to why not!).

Me and the OH have this week decided to close down the house deposit savings account and move the money we had in there to pay off an excessive overdraft and ease some of the mental stress. Feels like a massive relief to be honest as we couldn't seem to tackle the overdraft - have now reduced the facility down from £3500 to £1000 (figured best to leave something to cover any emergencies whilst our emergency savings pot creeps up).

For the first time ever am really feeling in control of our money, have a loan with Tesco - £1569.30 outstanding on that (last payment is due on 1st March 2013), a cc with MBNA - £3613.77 outstanding on that (0% until 17 April 2013), and a cc with Barclaycard - £3087 outstanding on that (0% until October 2013).

Unfortunately my OH has been on SSP for the last month so we have to had reassess our expenditure, and it is obviously impacting on the speed by which we can pay things off - makes it much easier to say no to things though, so not all bad! Hopefully the OH will start back at work in about a month, and then we can get on it properly - hopefully our DFD is still achievable - will reassess once the OH returns to work. At least in the interim, we know exactly what's affordable - whilst still making the loan payment, credit card minimum payments and putting £50pcm in an emergency savings fund (to cover future car bills etc). Christmas may need to be a cheap one this year but I'm sure the family will understand!

I'm going to look over these forums for money-saving/money-raising ideas; but if there are any pearls of wisdom any of you want to share I'd be grateful to hear them Also, which challenges have you found the most useful?

Thanks to everyone for their posts on this forum - really inspirational.

BlushingRose

Hello!!

Why not post a SOA and people on the board can perhaps help you to cut some of your spending and give you some more breathing space?

Motoko_2

Hello there,

You sound like your doing really well already - well done on paying off your overdraft and reducing the facility.

Theres a thread at the top of the page that lists all the challenges running at present.
I'm only doing 3 at the mo but am lookingto start more next year. The NSD (no spend day) one has really helped me, especially with the sanie van problems - easy chocolate!:rotfl:

Agree with Blushing Rose post up your SOA, the people here really are lovely and have some really good ideas.

The Debt free roll of honor have some really good pearls of wisdom, take a peak when you have time.

Have a good day:)

unimaginative_user_name

Hi Sleggy...

I agree you have a great attitude.

I would recommend the old style board for great money saving ideas especially for reducing grocery expenditure. When people post there SOA on here that's often an area people highlight for belt-tightening.

As for Christmas, do you have any crafty/cookery skills so you can make presents?

Good luck!

Sleggysortingmoney

Hello BlushingRose, Motoko, UUN :j Will definitely check out the challenges thread, debt free roll of honour, and old style board So much here, it's useful to know where to begin!!

Ok here goes, with my SOA: -

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1852
Partners monthly income after tax....... 300
Other income............................ 250
Total monthly income.................... 2402

Monthly Expense Details
Rent.................................... 595
Council tax............................. 98
Electricity............................. 25
Gas..................................... 40
Water rates............................. 26.5
Telephone (land line) and broadband..... 18.5
Mobile phone............................ 80
TV Licence.............................. 12.5
Groceries etc. ......................... 250
Clothing................................ 30
Other travel............................ 30
Medical (prescriptions, dentist etc).... 62
Pet food/vet bills...................... 17
Contents insurance...................... 38
Life insurance (OH)..................... 35
Presents (birthday)..................... 60
Haircuts................................ 40
Entertainment........................... 150
Emergency fund savings.................. 50
Lottery................................. 16
Professional fees....................... 35
Total monthly expenses.................. 1708.5

Assets
Cash.................................... 423.4
Emergency savings fund.................. 114
Car(s).................................. 1500
Current account balances................ 1703.35
Total Assets............................ 3740.75

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan.....................1569.3....314.......8.1
MBNA...........................3614......37........0
Barclaycard....................3087......31........0
Mattress.......................500.......50........0
Total unsecured debts..........8770.3....432.......-

Monthly Budget Summary
Total monthly income.................... 2,402
Expenses (including HP & secured debts). 1,708.5
Available for debt repayments........... 693.5
Monthly UNsecured debt repayments....... 432
Amount left after debt repayments....... 261.5

Personal Balance Sheet Summary
Total assets ........................... 3,740.75
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,770.3
Net Assets.............................. -5,029.55


Thanks for the suggestion to do this BlushingRose - especially as I had completely forgotten about the new mattress being delivered tomorrow (we kept putting this off, but as OH is spending a fair bit of the day in bed the springs poking through became a bit much!) - I have over-estimated the cost of this as (ashamedly!) I can't remember the exact cost of it!

The figures up there are based on income/expenditure with OH being on SSP (which I've guessed at £300 pcm - hopefully it's not far off that - OH first full month on SSP pay due on the 28th). I get paid mid-month (which always confuses my head when looking at figures!) hence current accounts are looking quite healthy! Once the OH is back at work then income will go up, but we'll also have significantly increased travel costs.

You'll also see we have a fair bit of cash - this is because each month I get out money for things like groceries / entertainment / clothing / haircuts / pet costs etc basically any expenditure which isn't done electronically. Works really well for us - when we stick to it (which has been about 5 months this year)!

Would definitely welcome any thoughts on areas to cut back on - I'm basically intending to keep back anything not spent at end of each month and put it into savings (some of which may go towards Christmas) - at least until the OH is back at work, then will tackle MBNA card first.

As for craft/cooking skills - the last couple of years I have made up things like chutneys/piccallilis/relishes/christmas puddings/wreaths etc and given these to friends and family - unfortunately what has happened in the past is we've then supplemented them with "real presents"! I'm such a consumer at heart! But I do love thriftiness and doing homemade things :rotfl:

consultant31

Sleggysortingmoney wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1852
Partners monthly income after tax....... 300
Other income............................ 250
Total monthly income.................... 2402

Monthly Expense Details
Rent.................................... 595
Council tax............................. 98
Electricity............................. 25
Gas..................................... 40
Water rates............................. 26.5
Telephone (land line) and broadband..... 18.5
Mobile phone............................ 80
TV Licence.............................. 12.5
Groceries etc. ......................... 250
Clothing................................ 30
Other travel............................ 30
Medical (prescriptions, dentist etc).... 62
Pet food/vet bills...................... 17
Contents insurance...................... 38
Life insurance (OH)..................... 35
Presents (birthday)..................... 60
Haircuts................................ 40
Entertainment........................... 150
Emergency fund savings.................. 50
Lottery................................. 16
Professional fees....................... 35
Total monthly expenses.................. 1708.5

Assets
Cash.................................... 423.4
Emergency savings fund.................. 114
Car(s).................................. 1500
Current account balances................ 1703.35
Total Assets............................ 3740.75

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan.....................1569.3....314.......8.1
MBNA...........................3614......37........0
Barclaycard....................3087......31........0
Mattress.......................500.......50........0
Total unsecured debts..........8770.3....432.......-

Monthly Budget Summary
Total monthly income.................... 2,402
Expenses (including HP & secured debts). 1,708.5
Available for debt repayments........... 693.5
Monthly UNsecured debt repayments....... 432
Amount left after debt repayments....... 261.5

Personal Balance Sheet Summary
Total assets ........................... 3,740.75
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,770.3
Net Assets.............................. -5,029.55



Your mobile phone bill is huge. Give them a ring and see if they'll offer you a deal if you're half way through your contract.

The grocery bill is also massive for 2 people, I would think you could get that down to about £150 easily.

I also think your entertainment is high and a chunk of this money would be better spent on getting rid of the debts.

19lottie82

£250 isn't a lot or 2 people!

butdoineedit?

Hi
Well done for taking the first step & posting & for having such a positive attitude. I've made some comments on your SOA below in red

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1852
Partners monthly income after tax....... 300
Other income............................ 250
Total monthly income.................... 2402

Monthly Expense Details
Rent.................................... 595
Council tax............................. 98 is this over 10 months or 12? If 10, see if you can pay over 12, will free up a bit of extra cash each month for debtbusting
Electricity............................. 25have you checked you are on cheapest tariff? Same for gas below
Gas..................................... 40
Water rates............................. 26.5
Telephone (land line) and broadband..... 18.5
Mobile phone............................ 80this seems high, even for 2 mobiles, can you both drop a tariff?
TV Licence.............................. 12.5
Groceries etc. ......................... 250This can definitely be reduced, check out the OS board for more tips, try a cheaper supermarket such as Ald1, drop a brand, batch cook where you can, & look at packed lunches for work if you don't already
Clothing................................ 30 Every month? Ebay what you don't wear any more, & maybe try charity shops if you do really need something
Other travel............................ 30
Medical (prescriptions, dentist etc).... 62 This seems high, what is it for?
Pet food/vet bills...................... 17
Contents insurance...................... 38 This seems quite high too, i only pay £20 for buildings & contents, could you look at switching when it's due for renewal?
Life insurance (OH)..................... 35
Presents (birthday)..................... 60This seems quite high, especially as you don't have children, if you're aiming for a frugal xmas, you could reduce this by half
Haircuts................................ 40 again every month? Try your local college for cheap haircuts, or look at investing in a pair of clippers to do OH
Entertainment........................... 150 This could easily be reduced while you are paying off your debts, try using vouchers for nights out, or organising nights in with friends where everybody brings something to keep it cheap & cheerful.
Emergency fund savings.................. 50
Lottery................................. 16
Professional fees....................... 35
Total monthly expenses.................. 1708.5

Assets
Cash.................................... 423.4
Emergency savings fund.................. 114
Car(s).................................. 1500
Current account balances................ 1703.35
Total Assets............................ 3740.75

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco loan.....................1569.3....314.......8.1
MBNA...........................3614......37........0
Barclaycard....................3087......31........0
Mattress.......................500.......50........0
Total unsecured debts..........8770.3....432.......-

Monthly Budget Summary
Total monthly income.................... 2,402
Expenses (including HP & secured debts). 1,708.5
Available for debt repayments........... 693.5
Monthly UNsecured debt repayments....... 432
Amount left after debt repayments....... 261.5 Do you have this left each month? if not, think about keeping a spending diary to see where your spare cash goes

Personal Balance Sheet Summary
Total assets ........................... 3,740.75
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,770.3
Net Assets.............................. -5,029.55



Hope these comments help, i don't want to sound harsh, but you could make some serious savings that will help you bring your debt free date forward.
Good luck & stay positive!!

sweetpea26

19lottie82 wrote: »

£250 isn't a lot or 2 people!

Hi Sleggy

I feed 5 plus 2 extra at weekends for approx £300. Bulk cooking is the key and cook from scratch. Good home made food.

I stopped spending every week on the lottery and now only do a lucky dip for the Euromillions about once a month.

52 weeks @ 16 = £832 .... would be an amazing saving.

I now only get my hair cut every 3 months at a local college at £5 plus I tip £2 to the young student. I was spending £20 on a haircut every 6 weeks and £10 a week on getting my hair washed and styled. I am saving a great deal of money. In the summer I had to go to a salon and get it styled as the college was closed and I paid £18. I wont be back there until next August.

So even if you reduce your salon spending by half. You will save £20 x 12 = £240.

Sell anything that you no longer need. You will feel the better for it and your debt will reduce.

All the best to you.

Storm

You've missed off your SOA for car tax, insurance & MOT - if you look at the annual amount and divide by 12, then this can be put aside each month, otherwise you can get huge bills that throw everything out!

As for Xmas this year - family & friends obviously know your OH isn't at work right now, so they will understand that you can't spend as much as they normally would. Stick with the home made gifts, and don't supplement with anything bought this year, and tell people why you're doing that. If you feel really bad, start telling people that's what you're going to do now & you can give them the option of doing the same for you.

It's great that most of your debt is on 0% - do you have the option to overpay the Tesco loan as that's the only one attracting interest at the moment? Also, how long do your 0% deals last?

With the food bill - this does seem quite high to me, so I would suggest that you make yourself list anything that gets thrown away because it goes off, look at the 'treats' side of things and commit to reducing that by half, if you buy branded items try own-brand & if own-brand try the value ranges - see if you can taste the difference and if not make it a permanent down-shift.

Dealing only in cash can work really well as you know that you can only spend what is in your wallet, but you do need to make yourself stick to it. Personally I found taking my week's money out on a Monday worked well, as there were less temptations during the week, and if I didn't have anything left by Friday evening then I wasn't going to be going out!

You've made a fantastic start - good luck!

Sleggysortingmoney

Thanks for your all your encouragement and responses –busted! We’re really not great at tightening the belt – enjoy entertaining toomuch If I didn’t make it clear everything is for the two of us.

Ok so mobile bills – yes this is for two, mine is out ofcontract in December, so will definitely look to reduce tariff and stick withmy current handset rather than upgrading to a shiny new iphone 5 (sigh!)

Butdoineedit – fab suggestions. The Council Tax is over 10months, but didn’t start until June, as the council were slow in setting it upwhen we moved authority, so think I’m stuck with those payments! I followed oneof the links on here for switching electricity and gas last night, and with theone I’ve chosen it will be £100 cheaper pa. Will definitely look to shop aroundfor contents insurance – a classic caseof automatically renewing with same company (who our previous estate agentssuggested we went with because of them doing specific tenants contentsinsurance - 5 years ago!)

The medical one is for lenses for the two of us,prescriptions, and dentists, as well as any otc medicines – does this stillseem high?

November will be the first month on this budget, aspreviously we had both salaries and were paying off more debt (but spending moretoo!), so will be able to say at end of November whether there’s the underspendleft!!

Sweetpea – that would be an amazing saving on the lottery,but we spend £16 a month, not a week – we kind of see it as “insurance” at work– both part of a syndicate, and then have a line a week for us, plus the oddEuromillions. Might be silly, but you never know!

I’ll have a look round the house this weekend for things tosell – made about £600 earlier in the year selling a bike, a sofa, storagetrunk, beer fridge, and just random stuff (over £200 came from our secondcarboot)

Storm – I’ve deliberately left off the car tax, petrol, insuranceand MOT – as the OH is not working we’re not using the car at the moment - onceOH is back at work then will factor these in, but my SOA is based on my income,and OH on SSP – if for some crazy reason OH didn’t return to work then wewouldn’t have car bills (I hate driving!!) Luckily the tax is only £30 pa andhave this week had MOT (SOA worked out after that) – insurance will be due in Juneso will need to save up for this once OH back at work. Ok, will stick tohomemade Christmas gifts for all adults – will take your advice and let themknow in advance. Thank you.

Will see if I can overpay Tesco loan – I have no idea! The larger0% finishes next April, and the slightly smaller one in October 2013, so amintending to put any additional payments between now and then against the onefinishing in April – think this will work out better in long run, as will beeasier to sort, rather than overpaying the loan – or is that just silly?

So have just re-jigged my SOA and just from changinggroceries, presents, haircuts, entertainment, clothing, “other travel” (this isfor the bus when I’m not feeling up to a 14 mile round trip to work by bike orrunning) a little bit (to a level that doesn’t feel too depressing, and nice toknow there’s still room to reduce it further) it will save us £90 pcm, plusthere will be savings to come from changing utilities, mobile tariff, andcontents insurance once these have been sorted :T. Awesome - that’s 1% of ouroverall debt just like that, and without too much of a stretch :j! Thank you. I willbe signing up to the 1% challenge as well as it sounds like a goody. Thanks all, any other suggestions?