My DFW Diary by ShinyShoes

ShinyShoes

Yesterday, I roughly added up all my credit cards and loans and got the shock of my life! (This is excluding my partners debt as he's already in a pickle himself!) I've been going around in circles the last few years trying to make our income cover expenses, but dipped into my healthy savings when big expenses popped out of nowhere, and used credit cards willy nilly (what a phrase!). I though I was floating, the truth is I am drowning and am getting close to the bottom. I feel out of control.

Today, I found out about the debt free wannabe board.

Tomorrow, I will prepare a detailed SOA and look at some challenges for me and partner to do. I need to get him onboard, he has no idea when it comes to money and relies on me to make sure our bank accounts don't go over our overdraft limit.

To be honest I'm quite down about the whole thing, it's going to take years and years to be debt free. My family think I'm a perfect example of being financially aware, they think I earn more than I do. I would really love a quick fix to all this, but I know there is no such thing.

I have a 3 month old son, and am returning to work asap. Something I don't really want to do but I have no choice as I'm the main earner in our family. I'd rather stay at home in the early years and raise my child, but I have no choice but to work. The double whammy is the childcare costs meaning you have to work additional hours in order to cover those costs. I knew it would be difficult financially to start a family, but I'm getting on a bit and soon it would have been too late. It was now or never. Although I'd like more children I know that it's financially impossible.

Things took a turn for the worst about 6 months ago, my partner was made redundant so we were both living off my wage and his contributions based JSA. I've stressed the whole way along, ideally I should have been putting money aside for my maternity leave but instead I was using savings to get by.

I'm saddened to think that we will be unable to have a holiday or any luxuries over the many years we are paying these debts off. I think it may take over 10 years to repay.

Hopefully after reading a few inspirational stories I'll realise that we can do this, and I'd like to find ways of speeding the timeframe.

Night Night

elantan

Well you know what's ahead of you and we're here to support you so keep writing, planning and chipping away at it and it will go down so that you can start to live the life you want to, won't it be slightly cheaper on the childcare costs with hubby currently not working? I understand that when he gets a new job then yes you will need to relook at things, but with him working just now won't that make it slightly easier?

You never know maybe it might work out cheaper for him to be a stay at home partner ? I have a friend that's a stay at home partner purely because any wage she would earn would not cover child care so her husband works and she stays at home to look after their kids


Good luck

ShinyShoes

He started a new job a couple of months ago, it's initially a 6 month contract. I did suggest he becomes a stay at home dad but he didn't really like that idea. He's a bit old fashioned and thinks he should be out earning money for his family.

Piquant_2

Hello and welcome to a shiny new diary! Good luck with the debt busting.

Piq

elantan

Ok sorry I miss read

beanielou

Happy shiney new diary.
Keep plodding & keep posting.

ShinyShoes

Today I bought my son a lovely jacket from Next - but it was second hand and a bargain at £3.50. DH loved it too, to my relief as he was originally anti-second-hand things. I've also listed some items on eBay so hopefully they'll bring some money in.

DH was so supportive too after my mini-meltdown Thursday evening.He told me not to worry and we'll sort it all out together. It's nice to know I"m not alone.

I'm now sleeping on another ebay purchase for my son's Christmas present - a Jumperoo - been offered one for £50.... will sleep on it and hope they drop their price

rising_from_the_ashes

Hi ShinyShoes - welcome to diary land & well done for taking the 1st steps by adding everything up and being prepared to sort it out.

Fab news that your OH is starting to get on board too! 2nd hand is wonderful & fab bargain with the jacket for DS:T

If you manage to do the SOA and post on the DFW board (you could add a link in here too), sure you'll get loads of useful advice on where cutbacks could be made.

Best of luck & keep posting on here ... it really does help!

ShinyShoes

Ok, here is my SOA, expenses based on September .... lots of areas to cut back on I hope as we are spending way to much!!

My salary and childcare costs are estimates as this is what I expect to get/pay when I return to work in a few weeks - on a 3.5 days basis (long days 8.15am to 5.45pm)

I've not put credit card rates on as I'm not sure how to find it out, sometimes they quote daily interest, sometimes monthly - how do I convert that to APR?

I've included my partners debts too, since we budget as a family but his credit cards are frozen at the moment so is only paying £1 a month on each of them (3 in total).

Thoughts please ... am I doomed? Should I consider going back full time? I know I should by my son is only 3 months old and I don't want him to spend unnecessary time away from me.

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.................... 2

Monthly Income Details
Monthly income after tax................ 2368
Partners monthly income after tax....... 1324
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3692

Monthly Expense Details
Mortgage................................ 1128
Secured/HP loan repayments.............. 0
Rent.................................... 61
Management charge (leasehold property).. 0
Council tax............................. 138
Electricity............................. 92
Gas..................................... 0
Oil..................................... 0
Water rates............................. 26
Telephone (land line)................... 13
Mobile phone............................ 56
TV Licence.............................. 12
Satellite/Cable TV...................... 35
Internet Services....................... 8
Groceries etc. ......................... 535
Clothing................................ 80
Petrol/diesel........................... 200
Road tax................................ 32
Car Insurance........................... 98
Car maintenance (including MOT)......... 75
Car parking............................. 15
Other travel............................ 0
Childcare/nursery....................... 950
Other child related expenses............ 230
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 18
Contents insurance...................... 0
Life assurance ......................... 22
Other insurance......................... 33
Presents (birthday, christmas etc)...... 15
Haircuts................................ 20
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 30
Pension................................. 30
Total monthly expenses.................. 4102


Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 200
Car(s).................................. 5500
Other assets............................ 0
Total Assets............................ 205700


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 174000...(1128).....5.49
Total secured & HP debts...... 174000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................5450......341.......7.4
Overdraft......................2000......28........0
Credit Card 1..................2332......30........0
Partners Frozen Debt...........15000.....3.........0
Partners Credit Card...........700.......25........0
Partners Overdraft.............1000......20........0
Credit Card 4..................900.......25........0
Credit Card 3..................1000......100.......0
Credit Card 2..................8988......100.......0
Total unsecured debts..........37370.....672.......-


Monthly Budget Summary
Total monthly income.................... 3,692
Expenses (including HP & secured debts). 4,102
Available for debt repayments........... -410
Monthly UNsecured debt repayments....... 672
Amount short for making debt repayments. -1,082

Personal Balance Sheet Summary
Total assets (things you own)........... 205,700
Total HP & Secured debt................. -174,000
Total Unsecured debt.................... -37,370
Net Assets.............................. -5,670

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

rising_from_the_ashes

ShinyShoes wrote: »

My salary and childcare costs are estimates as this is what I expect to get/pay when I return to work in a few weeks - on a 3.5 days basis (long days 8.15am to 5.45pm)

ShinyShoes wrote: »

Should I consider going back full time? I know I should by my son is only 3 months old and I don't want him to spend unnecessary time away from me.

Sorry bit confused - that's 9 hours (allowing for a 30 min break) per day

So 3.5 days would be 40.5 hours / week and surely FT?

ShinyShoes 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.................... 2

Monthly Income Details
Monthly income after tax................ 2368
Partners monthly income after tax....... 1324
Benefits................................ 0 Do you not get get child benefit?
Other income............................ 0
Total monthly income.................... 3692

Monthly Expense Details
Mortgage................................ 1128
Secured/HP loan repayments.............. 0
Rent.................................... 61 Why do you have a mortgage & rent?
Management charge (leasehold property).. 0
Council tax............................. 138
Electricity............................. 92
Gas..................................... 0
Oil..................................... 0
Water rates............................. 26
Telephone (land line)................... 13
Mobile phone............................ 56 Try & downgrade contracts ASAP
TV Licence.............................. 12
Satellite/Cable TV...................... 35 Sorry but not an essential - switch to FreeSat / Freeview
Internet Services....................... 8
Groceries etc. ......................... 535 Wow! (sorry) - big savings to be made here is the good news:D You should be able to get this down to under £200(families of 4 can manage on £200 incl household stuff, nappies etc) - try the Grocery Challenge on the Old Style Board. Great friendly bunch, fab tips and wonderful recipes
Clothing................................ 80 Sorry - cut to £20
Petrol/diesel........................... 200 All essential
Road tax................................ 32 Car Insurance........................... 98 Check comparison sites at renewal time
Car maintenance (including MOT)......... 75
Car parking............................. 15
Other travel............................ 0
Childcare/nursery....................... 950 Ouch! Is this for 3 days / week? Can you get childcare vouchers through your work? - would be worth looking into
Other child related expenses............ 230 What are these?
Medical (prescriptions, dentist etc).... 0 Need figure in here
Pet insurance/vet bills................. 0
Buildings insurance..................... 18 Incl contents?
Contents insurance...................... 0
Life assurance ......................... 22
Other insurance......................... 33 What's this?
Presents (birthday, christmas etc)...... 15
Haircuts................................ 20
Entertainment........................... 150 Sorry .... cut to £50
Holiday................................. 0 Need figure in here - even £20 as not realistic. Even if you stay at home, you will still spend more
Emergency fund.......................... 30
Pension................................. 30
Total monthly expenses.................. 4102


Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 200
Car(s).................................. 5500
Other assets............................ 0
Total Assets............................ 205700


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 174000...(1128).....5.49
Total secured & HP debts...... 174000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................5450......341.......7.4
Overdraft......................2000......28........0
Credit Card 1..................2332......30........0
Partners Frozen Debt...........15000.....3.........0
Partners Credit Card...........700.......25........0
Partners Overdraft.............1000......20........0
Credit Card 4..................900.......25........0
Credit Card 3..................1000......100.......0
Credit Card 2..................8988......100.......0
Total unsecured debts..........37370.....672.......-


Monthly Budget Summary
Total monthly income.................... 3,692
Expenses (including HP & secured debts). 4,102
Available for debt repayments........... -410
Monthly UNsecured debt repayments....... 672
Amount short for making debt repayments. -1,082

Personal Balance Sheet Summary
Total assets (things you own)........... 205,700
Total HP & Secured debt................. -174,000
Total Unsecured debt.................... -37,370
Net Assets.............................. -5,670

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

Phew .... well the good news is that you can make some pretty big savings on the groceries but you're going to be struggling to make up that shortfall.

The only way I can see you balancing the books is if you had family to look after your LO thereby cutting the £950 childcare costs.

The first & most important thing - and you don't need to put anything on here - it's for you & your OH to discuss - have you addressed the reasons for the debts?

If not - this is the first thing you must do - until this is done, any attempt at sorting them out will fail (I know - been there x 3:o).

Secondly, I would advise speaking to one of the debt charities and looking at a DMP or similar - it would take away a load of the stress and mean you can then get a budget you can stuck to without trying to juggle payments to different creditors each month. Best of luck

ShinyShoes

Thanks, I do get child benefit but I'm transferring this into a savings account for my son.

For the hours work, I'm intending to do nearly the full time hours but spread on less days. The child care costs are a local nursery, unfortunately we don't have family near by to look after DS. My mum's hoping to move over but that's not until Oct 2013. What a pickle!

These are the figures as was spent, so will try and create a budget to stick to. I use moneydance so I'm setting it up from fresh with the same account headings as SOA for easy comparison in the future.