Here I am AGAIN!!!!!!

StressedSteph

Hi everyone,

Ok, so I have done it again. :mad:. We moved house three years ago and managed to virtually clear all our debts with left over cash.

Unfortunately due to a combination of the new house we bought being a total wreck, my car engine blowing up and me being TOTALLY useless with money we have managed to get ourselves back in to a large amount of debt.:(

I have done an SOA before I have really looked at the finances, so be kind to me. I havent looked through it all yet to see where I can cut back.

The SOA does'nt appear to be too bad as we have money left over each month. But heaven only knows where that money goes as we are ALWAYS broke.

I think the main problem is that because we live over 10 miles to the nearest decent shopping town, we have gotten into a bad habit of buying things we need from the internet. Where clothes and various other things are concerned I think it is more expensive as I dont see any bargains or sales etc.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2600
Partners monthly income after tax....... 561
Benefits................................ 135
Other income............................ 0
Total monthly income.................... 3296
Monthly Expense Details
Mortgage................................ 701
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 189
Electricity............................. 113
Gas..................................... 0
Oil..................................... 85
Water rates............................. 75
Telephone (land line)................... 50
Mobile phone............................ 63
TV Licence.............................. 13
Satellite/Cable TV...................... 65
Internet Services....................... 1.5
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 40
Car Insurance........................... 50
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 70
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 56
Contents insurance...................... 0
Life assurance ......................... 51
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 47
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 2344.5

Assets
Cash.................................... 0
House value (Gross)..................... 425000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 428000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(701)......7
Total secured & HP debts...... 150000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Littlewoods 2905 400 0
Next 1431 200 0
Tesco Credit Card..............5000......50........0
Barclay Card ..................882.......20........0
Virgin Credit Card.............3825......109.......1.87
Barclays Overdraft.............3000......100.......20
Total unsecured debts..........17043.....879.......-

Monthly Budget Summary
Total monthly income.................... 3,296
Expenses (including HP & secured debts). 2,344.5
Available for debt repayments........... 951.5
Monthly UNsecured debt repayments....... 879
Amount left after debt repayments....... 72.50
Personal Balance Sheet Summary
Total assets (things you own)........... 428,000
Total HP & Secured debt................. -150,000
Total Unsecured debt.................... -17,043
Net Assets.............................. 260,957
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I desperately need to kick this Credit card habit. My husband is a self employed builder which is an unreliable income which occasionally leaves us without income for a few weeks when work goes quiet so I really need to wake up and get this debts gone and start on a savings pot.

Please be kind, I am a serial lurker but think the only way to kick me into action is to do this post and face your wrath.

My husband is much more sensible than me with money, so I think when the finances are more under control, I will hand it over to him. Then maybe when I want an impulse buy he will be the voice of reason.

Thanks

StressedSteph

sistafromanothermista

Hi Steph, if your house is worth 425k with only a 150k mortgage left could you not release some equity to pay off the debt?

unimaginative_user_name

Good luck!

If you're not sure where the £672.50 left over after debt repayments goes then I would recommend a spending diary wher you write down every penny you spend. It's interesting and frightening to see how little things add up.

Certain expense areas seem obvious candidates for cutbacks especially satellite tv, mobile phones and gifts. Your council tax also seems high. Are you paying this over ten months or twelve? If you swap to paying over twelve this would give you more to throw at your debts and reduce interest payments overall.

StressedSteph

Hi all,

I did consider calling the mortgage company but considering we were late paying the last two direct debits and hubby being self employed, I doubted that the answer would be 'yes' .

Yes the DEFINATE reason for this debt is my/our innability to wait for things we want. If the children or us need something I just go online and buy it :mad:. Not great when your overdraft is so huge!.

A spending diary is a very good idea. I will dig out an old diary and start one now.

DEfinately need to start No Spend days as well, although at this time of year its very tricky.

[Deleted User]

I think you know what's coming before I say it.

You are spending nearly £2,300 pa on Telephones and TV. :eek:

Cut these A LOT.

Just dumping Satellite/Cable TV, would give you enough to pay off your Barclay Card in barely a year.

You're also spending £1,200 pa on presents, and £560 pa on haircuts.

Reduce both considerably.

Electricity also seems high (£1,356 pa). Use comparison site to look for a better deal.

Any chance of settling the overdraft with one (or more) of the 0% cards?

Essex22011

Your APR on your mortgage is 7% that seems extremely high considering your LTV, when are you due to remortgage?

StressedSteph

Hi,

Just had to amend my SOA. I had forgotten my Littlewoods and Next accounts which has changed my available funds considerably.

I need to work on my other half for the SKY package. I would happily do without it, but have met resistance from him on that Grrr.

The mobile phones are on contract, I will look into it but don't think they can be cancelled.

Have just been through a comparison website and have changed my electricity account from NPower to Co-op which should hopefully save me £280 per year.

Off to look for things to sell. Thanks for replies

dottyanne

Hi Steph - me and you sound so similar - I am not working at present but should have something startin within the next 6 weeks - even so we can manage the bills and debts and even a little savings BUT I keep digging into the savings when I want not when I need - I will subscribe to your thread and see how you get on - good luck

bess1234_2

the good news is you have lots of money, the bad news is either your figures are wonky or money is flying through your fingers.
Either way , you can get this into better shape -£2300 pa on phones and tv. Awesome.
sounds like you are starting hitting the big ones - all bills - join a cashback site too to swap them. One of the main site sections is how to do a money makeover, and combined with a spending diary, and a light bulb moment, you will be making headway in no time. Once your doing the big stuff, look around the challenges to keep it fun. and good luck

[Deleted User]

StressedSteph wrote: »

I need to work on my other half for the SKY package. I would happily do without it, but have met resistance from him on that Grrr.

Maybe not scrap it completely, but reduce it.

Moving to the basic Entertainment package would save you £522 pa.

StressedSteph wrote: »

The mobile phones are on contract, I will look into it but don't think they can be cancelled.

Maybe not cancelled, but perhaps moved to a cheaper tariff?

anita55

Hi Steph, just found you, well done for posting, can't help in anyway but you have my support, look forward to reading your journey to being debt free again.