Skint Dad's Debt Diary

SkintDadUK

Good evening all,

Apologies for the extremely long post!!

I've been a lurker for a little while but never really posted.

The reason I am starting a diary today is because we are in serious debt and struggling to make ends meet. It's got so bad that only a couple of weeks ago we found ourselves in the position of having very little money, no food in the cupboard and still a week away from payday.

A bit about me.

I am currently a SAHD looking after my 21 month old daughter. I also have a step-daughter who is 8 and an older daughter who is almost 14 and who lives with her mum.

My other half (we're not married yet) works full time in a public sector job and we've been together for 5 years today. Over that time we have between us managed to accrue a substantial amount of debt and if I am 100% honest been in denial about it until very recently.

Up to about 7 months ago I worked in London and we used childcare providers to look after my youngest until my OH returned from work. We realised after a few months of doing this that the cost of childcare outweighed my salary, especially after travel costs had been accounted for!. This is when I left my job to become a SAHD.

I won't deny that it is through our own lack of self discipline that has caused us to get into this mess.

It was my 35th birthday yesterday and I have decided enough is enough. We don’t want to be in this predicament any longer and I now want to strive forward to a debt free future. A future where I don’t worry about opening letters, a future where we can provide a great quality of life for our children without falling further and further into this abyss of debt!

I want to also mention that I write a blog called 'SkintDad' (don’t think I can post a link yet?). It was/is meant to be a parenting blog written from a dads perspective on a range of topics but because of what’s occurred very recently, I am also using it to document my journey to a debt free existence.

You may ask why if I’ve got a blog, then why come onto MSE? The answer is quite simple, from lurking on the DFW forum over the last week or so I can see that I will be able to get a lot more support and guidance than I would through my blog alone.

The start of it

Today I have started to build up a overview of our financial situation (SOA) and although it is not complete I have a feeling we are in roughly £40,000 worth of debt!!! :-( *OUCH* it really hurts to say that! :eek:

Once Its fully complete I will be posting it on here.

We have also been meal planning which I hope will help reduce our shopping budget drastically! We have already had a couple of meals which amounted to less than 60p per head!

I am so determined to sort this mess out and I know it's going to take a lot of planning and serious sacrifices which I am prepared to foretake for a better life.

Thanks for reading,

SkintDad

cottage_retreatist

welcome skint dad to the Debt free wannabee journey!!

Wishing you the best of luck!!!!

Posting an SOA is a great idea - the super people on here can help you with where you can cut costs and it really is good for allowing you and the OH to sit down and say - wow! do we really spend that much on [insert here]!!

We're a very friendly bunch so if you have any questions just ask!
I'll be subscribing

C-R x

SkintDadUK

cottage_retreatist wrote: »

welcome skint dad to the Debt free wannabee journey!!

Wishing you the best of luck!!!!

Posting an SOA is a great idea - the super people on here can help you with where you can cut costs and it really is good for allowing you and the OH to sit down and say - wow! do we really spend that much on [insert here]!!

We're a very friendly bunch so if you have any questions just ask!
I'll be subscribing

C-R x

Hello cottage_retreatist,

Thanks

I haven't had much time this morning but I reckon my SOA will be complete at some point this evening.

Last night my OH and I talked a length about our situation and it feels like we are finally on the same page. I'm looking forward to a debt free future!

WantToBeSE

Hi Skint Dad,

It's great to hear that your OH is on board with the DFW way of life. Good luck to you both

BEAT_THE_DEBT

Hello and welcome. Let's kick that debt into touch it can and will be done

BJV

Good on you! The hardest bit is admitting that you have problems. It will not be easy but I know that you will get lots of help and support. For me it was always about making sure that the kids did not go without. You really can do that without spending a fortune.

BEAT_THE_DEBT

Just looked at your blog it is very good.

SkintDadUK

We have just spent the last 6 hours putting our SOA together. Now it's complete I realise we have got ourselves in such a mess. I actually feel physically sick

You won't believe the amount of unopened post/bills we have opened this evening.

I don't feel brave enough to post it tonight. I'm going to try and sleep on it and post tomorrow morning. I actually feel embarrassed that I've let it go this far.

We have really been in complete denial for the last god knows how long and a lot of the debt accrued could of been sorted long before now.

I am still determined to face it head on but I am going to need a lot more support and advice than I first though.

Really tough but deserved times ahead.

BJV

Really hope you do.

I left a well paid job 4 years ago to start on my own. In fact had no income what so ever for the first 12 months. That would of been fine except I did not adjust my lifestyle and still lived like I had a good income.

Think the best thing for me is now money is back into perspective. I never thought I would ever say it but I like finding a bargain. Yes I still love all the things I did before its just now I shop clever.

You do not have to change your whole life just put it back together better with the important things first, like family, health first then money which lets face it you have to have to be able to survive.

Its not easy and I still miss being able to go where ever I wanted and have what ever I wanted, but the one big lesson I learned is that my kids do not care if they have a new bike from ebay which was £15.00 or a new bike from where ever at £200. For them its still a new bike.

In some way's it was me my problem. Me being a snob almost, it was my perception of keeping up with trends etc. We have less money than we did before but are much much happier, and my children are starting to understand the value of money and belongings.

Go for it. Once its out it out and only then can you come up with a plan to tackle it. It will not happen over night but you really can do it.

There are some amazing people on here who have what may look like minor tips but add them all together and the little things do really make a difference.

BEAT_THE_DEBT

Hi good advice from BJV there nothing is really new, once you have used it once it is second hand so I now buy second hand where poss. You have faced the hardest part now. You have the whole picture so now more nasty surprises, you can formulate a plan of attack now!

SkintDadUK

Right, here we go.

After sleeping on it over night, I woke up this morning to the radio playing 'You Can Get It If You Really Want' by Jimmy Cliff! Obviously someone trying to tell me something!

Below is our SOA which contains all joint debts for my OH and I, it also includes some previous debts which come about before we got together over 5 years ago!!

It makes for pretty depressing reading but you know what, after feeling sick last night of the though of it, this morning I have woken with an air of confidence about me.

I actually feel a tiny weeny little bit more in control compared to yesterday morning when we didn't have a clue what we owed to who?!

At the moment I don't have a date in mind when I would like to clear the debt. I will have one but feel I need to take stock and see what my options are.

Currently for the majority of the debts, we haven't agreed a set payment plan. This was because our incomings were up and down each month and we couldn't commit sticking to a set amount.

What we had been doing was paying the smallest amount to whoever shouted the loudest which as you can imagine wasn't working out.

Ideally looking at the amount of unsecured debts we have, I would like to start off by contacting each and everyone of them to offer a token payment of £1 per month. It's not a lot but at least its more than nothing which is currently happening.

Once this is in place I would then aggressively go ahead and cut all I can out of our monthly outgoings whilst trying to increase our income buy any means possible.

I would then approach the individual creditors to see if they would apply discount if we offered to clear it completely rather than a set payment plan. I know one of the larger debts have already offered a 40% discount if we could pay it off within 5 months.

I think that is all for the moment! I'm slightly exhausted and in need of a strong cup of tea.

I still feel really embarrassed about it all but I know deep down that once its out there, I can start dealing with it!

Thanks in advance for any comments and advice. I would say I need a kick up the backside but I've already given that to myself!

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......................0

Monthly Income Details
Monthly income after tax............................0
Partners monthly income after tax........1726.00
Benefits............................................134.80
Other income.......................................35.00
Total monthly income.........................1895.80

Monthly Expense Details
Mortgage...................................... 0
Secured/HP loan repayments............ 0
Rent......................................... 900
Council tax................................. 145
Electricity.................................... 30
Gas............................................ 30
Oil............................................... 0
Water rates................................. 35
Telephone (land line)..................... 22
Mobile phones x 2......................... 71
TV Licence.................................. 29.1
Satellite/Cable TV......................... 21.5
Internet Services........................... 7.5
Groceries etc. ............................ 250
Clothing....................................... 20
Petrol/diesel................................... 0
Road tax....................................... 0
Car Insurance................................. 0
Car maintenance (including MOT)....... 0
Car parking.................................... 0
Other travel................................. 61.1
Childcare/nursery............................ 0
Other child related expenses............ 16
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills..................... 0
Buildings insurance......................... 0
Contents insurance......................... 0
Life assurance .............................. 0
Other insurance............................. 0
Presents (birthday, christmas etc)... 10
Haircuts...................................... 10
Entertainment............................... 0
Holiday......................................... 0
Emergency fund............................. 0
Misc travel................................... 10
Halifax overdraft monthly fee........... 30
Total monthly expenses.................. 1698.2


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA CC(Arrow group)...2308.69...0.........0
Equita.........................1405.48...0.........0
Home retail group.......... 2243......0.........0
Car loan.......................4440......0.........0
Childcare fees ..............701.56....0.........0
Southern water..............30.44.....0.........0
ccscollect......................54.5......0.........0
Rockwell.......................744.56....0.........0
Scotcall........................90.94.....0.........0
Unique International........36.63.....0.........0
south east water...........112.31....0.........0
EDF Energy....................870.......0.........0
Family loan.................5188.19...100.......0
Tmobile(Lowell).............133.42....0.........0
Wescot(sky)..................82.04.....0.........0
Vanquis(Lowell).............295.32....0.........0
Collectica.......................80.00....0.........0
First response/shoesm....988.57....0.........0
Hastings Direct..............120.22....0.........0
Halifax OD.....................293.00....0.........0
Abbey(1st credit)...........564.77....0.........0
Quickquid......................235.75....0.........0
wonga..........................514.87....0.........0
wonga..........................770.00....70........0
Family loan...................1000.00....0.........0
Family loan....................600.00.....0.........0
Halifax OD....................1500.00....0.........0
Salary overpayment........2214.06...0.........0
Council Tax....................879.00....0.........0
Santander OD...............2427.00....0.........0
Santander loan...............6329.6....0.........0
Santander CC.................647.98....0.........0
Shop direct(Lowell)..........877.39....0.........0
O2(Lowell)......................868.89....0.........0
Total unsecured debts...39648.18....170......0


Monthly Budget Summary
Total monthly income.................... 1,895.80
Expenses (including HP & secured debts). 1,698.20
Available for debt repayments........... 197.60
Monthly UNsecured debt repayments....... 170.00
Amount left after debt repayments....... 27.60

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -39,648.18
Net Assets.............................. -39,648.18