Ever feel like you're spinning the wheels?

Spinningthewheels

Ok, here goes! LBM came around about the last week of Oct 2013 when Idecided to check on my CC statement. I was aware I missed a payment but keptsaying to myself "it'll be fine when I get paid". Anyway, checkedonline and found out I owed £500...sh*t. With bank empty, guilt/shame high andmorale low I decided enough is enough.

About me:

25 years old, rented flat with other half and a 1 year old dog. Work insports and climbed the career ladder relatively quickly without the universityroute. Alas while I may be good at my job, useless with money. Partner howeveris very good with money, which adds to my woes.



First credit card was obtained for a 3 month trip playing rugby in USA. Thiswas 2008 at 18 and had a limit of £2000 (who gives and 18 year old 2K?!).Probably shouldn't have taken the card to vegas, but it came back maxed out andstill sits at 2K despite already been paid off in full once.



First overdraft was obtained on account when moved to BoS. Limit I was toldwas £1250...sure why not was my response. It quickly maxed out and only reducedwhen my salary went in. Second overdraft came with the account I use for all mydirect debits...same deal as above. Then in 2013, while on a trip to Ireland,in a casino at 5am. I decided to increase both by £250...great idea. Never theless they both sit at their limits, only going down when I get paid or the billmoney goes in.

Second credit card was obtained when I had gotten rid of the other one, andmoney was doing ok. £4500 from Barclaycard. This was quickly filled with ourholiday payment and holiday clothes, along with other random stuff. Otherhalf paid her half back within months...I quickly filled it up with otherstuff. Limit is dropping to £4250 when I get it down to that.

My basic salary is £26000pathen a car allowance of £6000 pa. Car allowance is taxed so I walk away with £2067every month

SOA looks like this:

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 2076
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2076
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 81.5
Electricity............................. 17.5
Gas..................................... 20
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 6.06
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 8
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 14.62
Presents (birthday, christmas etc)...... 0
Haircuts................................ 16
Entertainment........................... 299
Holiday................................. 100
Emergency fund.......................... 0
Car..................................... 348.39
Total monthly expenses.................. 1621.07

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
Barclaycard CC.................4633.98...150.......24.9
Santander CC...................1999......70........34.9
Partners CC....................1200......0.........0
Overdraft 2....................1500......0.........19.94
Overdraft 1....................1500......0.........19.94
Total unsecured debts..........10832.98..220.......-

Monthly Budget Summary
Total monthly income.................... 2,076
Expenses (including HP & secured debts). 1,621.07
Available for debt repayments........... 454.93
Monthly UNsecured debt repayments....... 220
Amount left after debt repayments....... 234.93
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,832.98
Net Assets.............................. -10,832.98






Now I know it says there that I have over £500 each month left, but I never do. I always seem to have something to pay, or do something stupid...like blow £125 on a night out already this month! I'm tracking every penny this month on an app to see exactly where it all goes.

Anyway, I'm hoping putting things in here will make me more accountable and to stick to it! Ideas/telling offs/suggestions all welcome! Looking forward too the journey.

brightnotes

I know exactly what you mean about the money you're supposed to have at the end of the month - I should have around £500 too but somehow it's always a negative amount.

Here's to spending diaries!

Bex296

Hello, I'm a fellow newbie! I agree spending diaries are great, I just started one and am unpleasantly surprised... Good luck on finding the leak and hopefully plugging it to keep the money left over!

Also if your phone isn't a new contract, try a bit of !!!!!ing about service or threatening to leave for someone cheaper, phone companies are desperate to keep you and might well knock something off if they think you're determined to go- I spent 40 mins trying to leave a contract yesterday and they offered me tons to stay!

Good luck!

Spinningthewheels

The phone is my iPhone and iPad. I've managed to get them down to £35 and £25 from £45 and £30! I'm just struggling too see where the extra is going to come from. Hopefully the app will show me! Going for my 2nd NSD of the month today!

Mara_uk7

Forget about holidays & reduce the entertainment budget for a few months, Put a wee bit into an emergency fund .
You will soon slash down those debts. Good Luck

Spinningthewheels

Thanks! Emergency fund is something I always have started the month off with, but by week 2/3 its gone! Also the holiday is booked and committed so I have to pay it. I'll work round it!

So yesterday I had another NSD which was the 2nd of the month. Quite a good feeling but had too be spoiled by purchasing fuel today...damn work! One thing I have found myself doing is thinking constantly about spending money, like having to tell myself no in my head...maybe that's the root of my problem...I spend without thinking?!

The tracking of spending is going well, and I'm starting to get a view of where the money is going! Hopefully i'll make it too the end of the month without worrying for the first time in god knows how long!

Spinningthewheels

Just made my first ever PAD. A whole £3.30! Got to start somewhere!

Spinningthewheels

So had a good weekend, stayed in for the first time in ages and spent like £5 the whole day on Saturday. Managed to make a payment every day to the credit card of choice, set up my 1% spreadsheet with my numbers all worked out etc. Feeling positive going into this week and then today I open my mail...

Note from Santander to say my CC is over the limit?!?! How?!?! Turns out the interest charges for this month send it over the limit...great. So today I really do feel like I'm spinning the wheels for the sake of it! I managed to amend the situation though, because in my Direct Debit fund I had £80 sitting for the DD set up to pay the minimum for this card. Upon closer inspection to my statement it turns out the DD comes out on the 29th of this month which is also payday! So a quick transfer of £22 took my back under my credit limit, just need to transfer the £12 charge I'll get now.

One step forward and two back!! But...you don't get out of trouble without a little fight so onwards I go. Hopefully no more unexpected surprises that make me swear at the dog!

Elena_Handcart

Hey there STW,


Just reading thru your post and thought I would jump in with my initial thoughts.


Firstly, you have listed one of your partner's Credit cards in your SOA. Is this your debt or is it your partners? If it is your partners debt - then should you exclude it from your SOA?


Next, you seem to be spending a lot of money on your car. Does the £348.39 include your insurance? Because I noticed that you don't have a figure for car insurance in your SOA. If the £348 is purely the payments for your car, then is there any way you can downsize this? at least until you get yourself straight?


Next, It looks like you have put down your half of the rent (£200) so I assume you have put down your half of the groceries (another £200). Does this mean your partner is also spending £200 on groceries? If it does - then you could probably cut down on your grocery bill by going armed with a shopping list, shopping after you have eaten, shopping at cheaper supermarkets, shopping at the 'reduced price' aisle, taking advantage of the voucher/reward schemes.


Next, maybe reduce your entertainment budget a bit. Especially if you & your partner are both spending £200 per month. Maybe set yourself a budget of £175 to start with and work out exactly how many nights out this works out to be. Say you spend £50 on a night out - then this is 3.5 nights out for the month. Try and fit this in with nights out that you can't avoid (mate's birthdays, anniversaries etc). Maybe try and get a bit clever with your nights out and use the Gr0upon/W0wcher websites to get the most night out for your money.


Next, I am not sure who you bank with - but there are banks out there that offer you money for moving to their services. F1rst D1rect for example will give you a £100 for joining them. (That's more or less your first 1%). They do have rules that you have to pay so much money in per month and have a certain number of DDs set up - but you can use this opportunity to get all your DDs set up to leave your bank account at a time that suits you better - rather than getting stung for another £20 off S4nt4nder again. I think Holyf4x are also offering £5 a month - again they have rules that you have to follow in order to qualify for the money.


And before I run off to dip my typing fingers in cold water (!) - have you tried to take up any balance transfer offers? At least if you can move your S4nt4nder card on to 0% - you will save a fair amount by not paying their extortionate 35%.


Right - sorry to write such a long essay - I hope it all goes well and you are soon on the road DebtfreedomVille.


All the best
E_H

Spinningthewheels

Hey EH,

Thanks for popping in and for the words of wisdom. I have answered the questions in red! (this is the second time writing this as I had typed it all out but lost it!)

Elena_Handcart wrote: »

Hey there STW,


Just reading thru your post and thought I would jump in with my initial thoughts.


Firstly, you have listed one of your partner's Credit cards in your SOA. Is this your debt or is it your partners? If it is your partners debt - then should you exclude it from your SOA?

Yes it is my debt. She paid out flights etc for a friends wedding in Italy during the summer and it also has £600 for my car insurance on it that I was given 30 days to pay after my DD was returned to the bank 3 times.

Next, you seem to be spending a lot of money on your car. Does the £348.39 include your insurance? Because I noticed that you don't have a figure for car insurance in your SOA. If the £348 is purely the payments for your car, then is there any way you can downsize this? at least until you get yourself straight?

Car payments only. I get £500 a month car allowance from work which is taxed. Looked into getting rid of the car but because I have done so many miles in it with work, the value is now less than the loan so Im stuck with it for 3.5 years.


Next, It looks like you have put down your half of the rent (£200) so I assume you have put down your half of the groceries (another £200). Does this mean your partner is also spending £200 on groceries? If it does - then you could probably cut down on your grocery bill by going armed with a shopping list, shopping after you have eaten, shopping at cheaper supermarkets, shopping at the 'reduced price' aisle, taking advantage of the voucher/reward schemes.

It is for my food only. I eat a lot due to my sport, but the added expense comes from eating out when im at work etc. This is def one of my downfalls and the £200 was a guesstimate, hopefully I'll have a better idea after this month where I have tracked everything. I buy my meat online which is cheaper than any supermarket I've checked. I also only really eat meat, eggs, veg, potatoes, pasta which isn't too costly. I just need to get back into the habbit of mass preparing and stop going for lunch whenever im out. I work from home so it is easy when I have an office day.


Next, maybe reduce your entertainment budget a bit. Especially if you & your partner are both spending £200 per month. Maybe set yourself a budget of £175 to start with and work out exactly how many nights out this works out to be. Say you spend £50 on a night out - then this is 3.5 nights out for the month. Try and fit this in with nights out that you can't avoid (mate's birthdays, anniversaries etc). Maybe try and get a bit clever with your nights out and use the Gr0upon/W0wcher websites to get the most night out for your money.

The entertainment is again only me, and a guesstimate also. It is only for nights out as being part of a rugby team there is always a night out! Its only weekends and I need too cut back. So far out of 3 this month I have only been out 1 where as it would usually be 3 so its a start!


Next, I am not sure who you bank with - but there are banks out there that offer you money for moving to their services. F1rst D1rect for example will give you a £100 for joining them. (That's more or less your first 1%). They do have rules that you have to pay so much money in per month and have a certain number of DDs set up - but you can use this opportunity to get all your DDs set up to leave your bank account at a time that suits you better - rather than getting stung for another £20 off S4nt4nder again. I think Holyf4x are also offering £5 a month - again they have rules that you have to follow in order to qualify for the money.

Tried with first before and got told no.

And before I run off to dip my typing fingers in cold water (!) - have you tried to take up any balance transfer offers? At least if you can move your S4nt4nder card on to 0% - you will save a fair amount by not paying their extortionate 35%.

Yeah, but because my credit score isn't the best I can't get them!


Right - sorry to write such a long essay - I hope it all goes well and you are soon on the road DebtfreedomVille.

Not at all, it is good to know people out there care! ha.

All the best
E_H

As I mentioned, it is really the eating out/nights out plus all the payments I make to the various things that kill me. I cant remember the last time I bought clothes, I don't drink through the week, my gym membership is free. Fuel is also a big one and while I get expenses it doesn't really cover it all. I've found a way to reduce the amount I pay for in fuel by a huge amount so hopefully that will help!

HOK3Y

Hi there, apologies if I am missing something but the reason you SOA says you have £500 is because you haven't accounted for the money you have to pay to your debts. What are your minimum payments each month or what do you pay?

Totally agree, rugby club or not, you need to whittle down the entertainment and forget the holiday. If you knuckle down you will claw out of this quicker but you can't afford a backslide. You do have wiggle room which is great news.....you just have to be strong!