Ok I promised it in my first post (Our SOA)

lmw1977

Monthly Income:
My salary - £1,940.00
Partners salary - £0.00
Benefits - £201

Total - £2141.00

Monthly Outgoings:
Mortgage/Rent: £749.00
Buildings & Contents Ins: £23
Council Tax: £91
Water: 19.00
Gas: £50 - looking to switch these diabolical figures as we don't use this much
Electric: £50 - looking to switch these diabolical figures as we don't use this much
Home Phone: £13.33
Internet: £21.49 - Broad Band: Tied in contract till Nov (this may change)
Mobile Phones: £50.00 - one Will be cancelled end of this month the second end of next.
Mortgage PPI: £20.00 - Lowest available currently for cover
Level Term !!! (me): £16.78
Level Term !!! (Wife): £23.00
Food/Household Shopping: £250.00 (2 adults, 1 toddler, 1 baby)
Eating Out: £43.30
Public Transport: £16.45
Car Maintainence: £20.00 (Past three years have been around the £240 mark)
Car Insurance: £80.00 (Will drop to 40.00 when I can get rid of second car in Oct)
Car Tax: £14.58
Petrol: £80.00 (Because of work!)
Loan Repayment: 240.92
Credit Card: £50.00 (it's the minimum currently)
Other Loan Repayments: £100.00 - Overdrafts.
Childcare: £9.00
Nappies: £86.60
Gym (wife): 5.83
Sky+ £31.00 - Tied in contractually till Nov this is the lowest I can get
TV License: £11.37
Christmas Savings: £68.00
Holiday Savings: £20.00
Birthdays: £41.17
Kids Clothes: £14.00
Newspapers/Magazines: £8.66
Total: £2317.48 :eek:

Debts:
HSBC Loan: Balance £13,009.68 APR 6.9% Length of term 60 months, 57 months to go
HSBC Credit Card: Balance £1610.01 APR 17.9%
HSBC Overdraft - £500 (limit £500) APR 18.6%
A&L Overdraft - £950 (limit £950) APR 0%

Broaching the following with the wife will be tough: Bringing down cost of Birthdays and Christmas saving of 109.17 per month: no point being able to buy extravagant gifts if it means riding roughshod down the debt addled road to debt crisis!

To me straight away the obvious places to save money are Gas, Electric, Mobile Phones, also Xmas, Holiday, and Birthday savings. Any I've missed?

Looking forward to getting rid of mobile phones too saving of £50.00 per month!

So there's £100.00 saved: we still have to save some for xmas and birthdays!

Regarding eating out...this is my wife's one and only trip out with the kids to stop her going stark raving mad can't really deny her that. Can I? I think half the problem with this is actually me...not my wife...I was always brought up that the man provides and the wife looks after the home which I know isn't how it is...but I cannot help it!

The loan payment inlcudes PPI I am thinking of contacting HSBC to cancel the payment protection and then getting my own cover - Any thoughts?

Luckily we have some stuff to ebay and will be carbooting some other stuff in order to reduce the overdrafts that'll help in the short term (A personal thing of ours is we hate having overdrafts...don't know why! Should we just get over this?)...long term well that's why we're here!

We're due some money back from some nasty motor insurers that keep taking money out of the account even though we've cancelled the policy!!!!! £270.00 I'm hoping to use it to get rid of some of the overdrafts too.

The household and food shopping figure is a budgeted figure...we're on course so far this month so wish us luck!

Once again, Thanks for your time.

lmw.

Lucy1982_2

What is level term? Excuse me if I'm just being thick!!

Now I know that they are one of life's little needs but £86 on nappies!!!! I don't have kids, but there must be a cheaper way of doing this!

Do you have any money in savings? If so it may be worth using it to pay of some debt as you will be earning more interest on the debt than on the savings.

Just a couple of ideas, but well done for posting it.

blackangeluk

Hi there - I'm no expert but just thought I'd say hello and well done for posting SOA - I think it's always a relief when you've posted it - like a confessional!I agree re cost of birthdays and xmas, it is high and needs bringing down, I have actually found it more fun to find things on a budget as it puts more fun into it. Also your children are young, they won't understand how much you have spent on them, it is simply the case that you shouldn't feel guilty if you don't spend much. I have found Ebay are very good for presents, esp for children and the bonus is you don't have to put up wit the extra cardboard and rubbish that comes when it's new!Re your wife's meal out - where does she go, with other mothers, I understand the need for her to go out (stayed at home with my 2 and I did go slightly bonkers) but is there a cheaper way for her to get out?I would also suggest cutting back on magazines and newspapers - it is amazing how the cost creeps up - I now read newspapers on line and magazines I can now do without. Cost seems high on nappies - have you considered using reusable ones? They have a good sell on price - mine lasted 3 years and I sold them on for the same price I bought them for. Definately cancel the loan cover, once you have got other cover in place, this may reduce your monthly payments dramatically. I think Martin has done an article on loan insurance, in my own experience I have found it a rip off and can get it a lot cheaper elsewhere. Ebay and Amazon are a fantastic way to raise extra money. If you have young children as well you may be amazed by how much stuff you can sell on Ebay. It is a good place to sell on clothes that the kids have grown out of and also to buy clothes for them.Just my initial thoughts - you obviously know where to cut back which is the best news so good luck and keep us posted!

lmw1977

Lucy1982 wrote: »

What is level term? Excuse me if I'm just being thick!!

Now I know that they are one of life's little needs but £86 on nappies!!!! I don't have kids, but there must be a cheaper way of doing this!

Do you have any money in savings? If so it may be worth using it to pay of some debt as you will be earning more interest on the debt than on the savings.

Just a couple of ideas, but well done for posting it.

Well the figure on nappies is coming down now...my daughter is coming out of them leaving just my son.

Level Term Assurance: It's basically life insurance...only assurance because like it or not it's a fixed term this life thingy! Martin describes it better on the main site:

Level term assurance thus guarantees a lump sum payout upon death within a fixed time e.g. £150,000 if you die within the next 18 years. It's the one policy you hope won't pay out

Cheers.

lmw.

mrsspendalot

That is still a heck of a lot of money on nappies!!!!!

Is your wife a member of Boots parenting club? I get allsorts of vouchers etc for huggies nappies through them, and triple points on my advantage card etc. i also use tescos own super fit ones which are every bit as good as pampers but about half the cost (£3.97 for a pack of 30)

I have used these for all 3 of my children with no leaks at all.

Lucy1982_2

I see! I thought I was just being thick!!

As for the nappies, do you use own brands or the more expensive ones? I would guess unless there is some reaction (nappy rash etc) cheaper ones would be ok. Or you could brave re-usable ones!!

To be honest the thought of them makes me a little green!

But I think if you cut out the things you don't need or aren't essential then things could be much better, you just need to be ruthless!!

Silverbird

Hi there

I'm only a newbie, but I thought I'd post my feelings, as I know that every bit of advice helps and it was useful to me to have different outlooks on my debt and SOA.

Eating out - sure, it's your wife's 'luxury', but must it really be so expensive? Surely there's a cheaper place to eat? If not, perhaps get friend or family to look after the children and go out for a meal just you two - that would be cheaper and probably more relaxing for you both!

Nappies - £86.60 is a lot for nappies. Would you not consider reuseable nappies/cloth nappies? My mother used these when we were kids and we didn't come to any harm - very cheap too!

Yes, as you've already realised - savings are no good to you if you're in debt. Christmas and birthday presents must be budgeted until you are in a better financial state. These savings are better used elsewhere as of right now.

Newspapers/magazines - £8.66 isn't a huge amount, but still an outgoing that could be avoided. Magazines can be bought from charity shops and places such as lifeboat shops/fund-raising shops, car boots etc. Sure they won't be up to date but if they're just for reading material then that won't matter. Newspapers - copies are available in most libraries. Obviously this is something you'll both have to decide if you can live without.

Have you had any bank charges in the past few years? If so, you can claim those back. There's a link somewhere on this site for that. I got my husband £1,500 back last year

I'm afraid I'm of the view that every adult should be working, whether male or female, as long as they're physically able to and as long as they need the money. However, I also believe strongly that the mother or father should be around the baby and children as much as possible in their younger years. Is there no way your wife could do part-time work when you get home or get a family member to look after the kids a couple of nights a week so she can go to a part-time job? If not, can she work from home? Often people will pay for ironing services if you put an ad up in a local shop or supermarket. Does she have a special creative talent, such as card-making or jewellery making, which she could make and sell online such as on eBay or on a car boot etc?

I understand that your wife must look after the children, but I must say that I think she should be helping you out financially. I fully intend to get evening or part-time work when we have a child. It's too much pressure - financially and emotionally - on the other partner to deal with all the outgoings by themselves.

I'd start cutting back and if your wife isn't happy then I'd tell her she'll have to go and get an evening job if she wants to keep that particular expenses. Harsh, but then I have found that you have to be when you're in debt. Life isn't easy.

Also - £250 on food! You can cut that down drastically. I made a meal plan for myself and my husband a couple of weeks ago consisting entirely of very cheap meals and we will now spend no more than £80 per month (worked out costs of items from Tesco online prices). That's for two adults. Please take a look at this and try to cut it down. If you want any pointers, let me know! You can still eat well and be full on cheap food. As for babies and children - have you got a food processor? My mom used to feed us on food processed potatoes, carrots and peas and we loved it as kids. She used to food process loads and put it in those little baby food jars and stick them in the freezer, and then take them out and defrost as required.

Can't think of anything else right now, but hope this is food for thought!

lmw1977

Thanks...I was pretty certain it can be ok with a bit of adjustment...just at the moment we've been whacking through the overdraft limit so I'm trying to get all that in order because that's costing a fortune in bank charges (however as I've said before I am trying to claim them back awaiting to see if the bank posts a defence or not so fingers crossed for that too).

I'll look at the reuseable option, or the own brand but to be fair we never really had much luck with own brand...but I'll look into that too...maybe reuseable is the way forward...it fits in with what we're trying to do on an environmental fron too...

Storm

Monthly Income:
My salary - £1,940.00
Partners salary - £0.00
Benefits - £201

Total - £2141.00

Monthly Outgoings:
Mortgage/Rent: £749.00
Buildings & Contents Ins: £23 Check this is the cheapest when its up for renewal
Council Tax: £91 There's a website (name currently escapes me!) that you can check you're not paying more than your neighbours! You can also request for it to be spread over 12 instead of 10 months to ease the monthly pressure
Water: 19.00
Gas: £50 - looking to switch these diabolical figures as we don't use this much You've said it - check Martin's article to get cashback
Electric: £50 - looking to switch these diabolical figures as we don't use this much ditto
Home Phone: £13.33
Internet: £21.49 - Broad Band: Tied in contract till Nov (this may change) when looking around at better deals, make sure you go through Quidco
Mobile Phones: £50.00 - one Will be cancelled end of this month the second end of next. Excellent - are you going PAYG or onto a cheaper tariff?
Mortgage PPI: £20.00 - Lowest available currently for cover
Level Term !!! (me): £16.78
Level Term !!! (Wife): £23.00
Food/Household Shopping: £250.00 (2 adults, 1 toddler, 1 baby)
Eating Out: £43.30 Can this at least be reduced?
Public Transport: £16.45 Plus 2 car?
Car Maintainence: £20.00 (Past three years have been around the £240 mark)
Car Insurance: £80.00 (Will drop to 40.00 when I can get rid of second car in Oct) Again, have a look at Martin's article & get cashback
Car Tax: £14.58
Petrol: £80.00 (Because of work!)
Loan Repayment: 240.92
Credit Card: £50.00 (it's the minimum currently)
Other Loan Repayments: £100.00 - Overdrafts.
Childcare: £9.00 What's this for?
Nappies: £86.60 :eek: Not a parent, but surely this can come down with own brands?
Gym (wife): 5.83
Sky+ £31.00 - Tied in contractually till Nov this is the lowest I can get
TV License: £11.37
Christmas Savings: £68.00 You don't need me to tell you, but £816 on Christmas is A LOT! Presuming you've been saving this for 6 months already I would stop putting it aside & use it towards the debts.
Holiday Savings: £20.00
Birthdays: £41.17 As with Christmas - nearly £500 is a lot for birthdays throughout the year - how many people are you buying for?
Kids Clothes: £14.00
Newspapers/Magazines: £8.66 If these can be cut out it will give you another £100 a year towards becoming debt free!
Total: £2317.48

Can you overpay on the HSBC loan at all?It looks like a consolidation one to me, so I'm slightly curious why you didn't include all your debts, or have the CC & ODs been run up since?

Burlesque_Babe

Eating Out: £43.30
Christmas Savings: £68.00
Holiday Savings: £20.00
Birthdays: £41.17
Kids Clothes: £14.00
Newspapers/Magazines: £8.66

these are the areas that jump out at me. Over a year, it adds up to a lot and also the food bill could be chopped with a hop over to the OS board.

RAS

well done for putting the Soa up.

Childcare: £9.00
Nappies: £86.60
Gym (wife): 5.83
Christmas Savings: £68.00
Holiday Savings: £20.00
Birthdays: £41.17
Kids Clothes: £14.00
Newspapers/Magazines: £8.66

That is £250, of which you really only need to spend £50-100.

Plus you could cut £100 of the food bill and halve the meal out, if that has to stay.

Sign up for www.freecycle.org, where you can get free kids' clothes and presents. At this age, they only use them for a couple of months anyway.

Is there a reason that you have a child care cost, whilst you OH is not working?

Could you join a baby-sitting circle, then go out with OH for an early bird somewhere? The one over the road is £6-9 including some drinks.

As everyone says, the nappies are outrageous. Some whole families here live off little more than that per month.

Sign up for www.quidco.com if you are going to compare prices for anything and get cashback for the switch.

Check Chevalier's posts for a list of pay for click, mystery shopping and survey web-sites, so your OH can still have some treats.

And get OH signed up to the Money Saving old Style board. If she is really brave, she could post up her till receipts and ask advice on cutting them back (no offence to other posters but the combined knowledge of the regulars on there is a bit frightening sometimes)

Then stick your debts into www.whatsthecost.com and see how much faster thay will clear if you have another £250 per month to contribute.

And yes, clear that HSBC OD first if you are paying that much on it, it has the highest APR, then the HSBC credit card.

best of luck