Debt-Free Wannabee

Hi all,

I'm only 24 and I've got the story you've already heard so many times before.

I'm spending more than I'm earning.

I'm trying to spend less but it just seems that the more I try the more I spend.

I've done a SOA and now I'm going through the MSE budget planner. My SOA actually shows that I'm spending a lot more than I have so that's made me panic even more.

If anyone could have a look at my SOA and give any advice, it would be greatly appreciate.

If I'm posting this in the wrong place, please let me apologise, I'm new to this forum.

[tt]Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2 (Myself and retired mum on pension credit. Also 1 pup and 2 cats)
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details

Monthly income after tax................ 1255
Mums monthly income after tax....... 500 (roughly)
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1755


Monthly Expense Details

Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 40
Gas..................................... 50
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 16
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 16
Groceries etc. ......................... 281
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 208
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 16
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 16
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 51
Entertainment........................... 282
Holiday................................. 542
Emergency fund.......................... 0
Spotify................................. 5
Alarm................................... 27
Cleaning products....................... 5
Repairs, home stuff, etc. .............. 27
Personal care........................... 24
Total monthly expenses.................. 2232



Assets

Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 10000
Total Assets............................ 10000


No Secured nor Hire Purchase Debts


Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................1000......33........0
Credit Card....................2600......68........0
Loan...........................4000......101.......0
Store card.....................350.......5.........0
Total unsecured debts..........7950......207.......-



Monthly Budget Summary

Total monthly income.................... 1,755
Expenses (including HP & secured debts). 2,232
Available for debt repayments........... -477
Monthly UNsecured debt repayments....... 207
Amount short for making debt repayments. -684


Personal Balance Sheet Summary
Total assets (things you own)........... 10,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,950
Net Assets.............................. 2,050


[/tt]

Thank you in advance for any advice.

Regards,
Dee
«1

Replies

  • Hi Dee

    As you will see in my signature I am also part of the ugly debt club!
    I am 34 and most of it was accumilated in the last 4 years when I just seemed to keep on spending on the old CC's and not notice them creeping up.
    I completely understand the struggle you are going through.

    I found the forum recently and already feel more positive and eager to tackle my debt.
    Some of the debt free challenges are really helpful - and everyone is so welcoming and have so many ideas on getting debt down and saving money.

    Maybe join some of the challenges, and the only suggestions I can make looking at your SOA is to try and cut back on entertainment and holidays. That might hopefully sort the overspend each month. Also check comparison sites for all utilities to see if you can save anywhere, and never pay full price for anything - there is always a deal or voucher somewhere!

    Good luck

    TF x

    :oTotal Debt: L1 £4866, L2 £1050, CC £0 Original Debt £29 k :o
    £5 a day July challenge Member # £9.40 / £70
    (£5 a day challenge since Nov = £1472.34)
    Sealed Pot Challenge 7 Member # 2101
    Debt Free Wannabe Nov 2014 Member # 128 £5613 / £10 000
  • Thanks Fashionista!

    I'm trying to cut down on spending - the entertainment and holiday bit may not quite reflect the reality as we don't go on holiday every month (this is the second holiday in 18 months) but I've included them anyway as should it not be these it would definitely be smth else - it usually is how it goes - one month it's new shoes (still haven't got around to that one though), then it's holidays, then it's xmas, then it's smth else - so, you're right, that's definitely one bit to cut down on.

    Looking at the forum, I'm also gonna use the demotivator to cut down on my travelling costs.

    The October challenge sounds great but I just don't see how I could save £10 every day.

    Thank you very much and fingers crossed I can make it.
  • Hi!

    Good luck in your journey!

    i also am in the bad debt club! i just spend on my CC and not think about it!

    Also what is spotify? is that not something you can cut out till you are all sorted? anything that is extra should jsut be gone till its all straightened.. dull i know, i budget for nights out that i know are coming up :) so you can still enjoy it!
    LBM 17/09/2013 [STRIKE]£4283.40[/STRIKE] November 2015 total [STRIKE]£4339.45[/STRIKE]
    Current total 29/11/2015 £4226.43
    CC - £3844.31 :eek: NW OD - [STRIKE]£500[/STRIKE] £382.12
  • Thanks raggydoll!

    Spotify is where I get my music from is a legit service and far cheaper than purchasing music off iTunes or that sort of thing.

    I'd like to say I can give up on it, but it's only £5/month and if I do give up on it than it's buh-bye any kind of listening to music. I know, guilty pleasure but I've done this before - went through my finances about a year ago and gave up on my linkedin subscription, and downsized from spotify premium to spotify unlimited, and that was ok, but I don't feel I can go without any music at all.

    Am really annoyed with TalkTalk as they are supposedly best value, but only this past year and a half, they've increased the bill 3 THREE times!!! I find that ridiculous!

    I think the worst bit is that once you've gone into your CC or OD is so bloody hard to get out of it. Wages cover OD and once rent and bills are out, you are back struggling.
  • Yeah you still gotta go out and enjoy yourself, life is for living afterall!
    What I do now is drink house wine, and if i'm eating out only have a main (no starter or coffee etc), and pace myself!
    Also I now compensate elsewhere which I never did before, so yesterday I went to pub and spent £20, so this week will take lunch to work all week and gonna drink green tea - saving on buying milk. I's all about the balance!

    Yeah I agree the £10 challenge is going to be tough - 1st time I've done it, but I figure I need the motivation, so going to give it a try. . . .

    TF x

    :oTotal Debt: L1 £4866, L2 £1050, CC £0 Original Debt £29 k :o
    £5 a day July challenge Member # £9.40 / £70
    (£5 a day challenge since Nov = £1472.34)
    Sealed Pot Challenge 7 Member # 2101
    Debt Free Wannabe Nov 2014 Member # 128 £5613 / £10 000
  • beanieloubeanielou Forumite
    77.8K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    ✭✭✭✭✭✭
    Just a few comments on your SOA.
    I think you have maybe made some mistakes on your SOA.
    Entertaiment surely cannot be 200+ per month for entertainment?
    50 odd for haircuts?
    542 per month for holidays?Surely not?
    If you can adjust these figures that will help your shortfall.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
  • Thanks TF,

    You're absolutely right about house wine - I have worked in the catering world in the past and I know that the difference in price may be high between house wine and the next one up in the menu, but the difference in quality is far smaller.

    We cook a lot, so not really eating out or drinking out that often except when we go on holiday. We try and buy drinks for at home when there's smth to celebrate or cakes to eat in - again great difference in price.
  • Beanielou,

    you're totally right, the 542 for holiday is for the second holiday in 18 months, and only my mum went, I'm working and could not afford going too. So that should have been 542 divided by 9 so £60/month but only realised after filled out the SOA and published it here.

    The £50 is for both haircuts which again doesn't happen more often than 6 months so on an average it would be about £10/month. Again, only realised after publishing the SOA. :/
  • It is the little things that add up though. It might help you to write down everytime you spend. I did this and it is shocking!!!

    Bills etc are mostly direct debit so you know what they are - but the little spends are the ones you don't see coming out the bank . Put a little notebook in your bag and write down everytime you spend - it will really help you see where to cut down. I stopped buying magazines, they were not in my budget but I was buying a couple a week and it really adds up.

    TF x

    :oTotal Debt: L1 £4866, L2 £1050, CC £0 Original Debt £29 k :o
    £5 a day July challenge Member # £9.40 / £70
    (£5 a day challenge since Nov = £1472.34)
    Sealed Pot Challenge 7 Member # 2101
    Debt Free Wannabe Nov 2014 Member # 128 £5613 / £10 000
  • DreamerHelenDreamerHelen Forumite
    2.6K Posts
    Part of the Furniture Combo Breaker I've been Money Tipped!
    ✭✭✭✭
    Hi There, your Food seems high....just for two people...I know you have Pets as well and their food can be expensive...but there are people that feed a huge family for a lot less per month....

    Maybe go have a look at the Old Style Board and see if you can come up with some help for what you have left in the Cupboards, Fridge and Freezer....Also, are you willing to go down a Brand? So rather than buying the Finest Range, go to the Value Range? I won't do that with Meat or Fish myself....but everything else I don't mind going with Value....and it CAN make a difference...

    I wish you well....
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