Really need to clear my debts but debt charity cant help. What next?

BigAunty

BeingMe wrote: »

I realise that this SOA makes it look like I can easily repay my debts but the reality is very different. Clearly I am leaking money somewhere that I am not aware. I find all of this really confusing.

Then you need to go through your bank statements and going forward, keep a record of every penny spent to find out where you are haemorraghing that money.

For example, I thought that as my partner and I are vegetarians who cook from scratch, drink little alcohol, avoid take-aways (1 or 2 a mont) and often make our own lunches and take coffee into work in a flask that we probably only spend £200 a month on food shopping but it was much higher and I was shocked.

BeingMe

Thank you. I was keeping a spending diary on an app on my phone but all the data was lost when I sent it for repair.

I try really hard to keep my good bills down and we go nearly completely without treats and I buy value everything, no brands, but still can't get it below £90. I don't shop every week due to the cost and will use basic store cupboard ingredients to make meals last. I do have three cats too and they go through £10 of cat food a week and £7 of cat litter too but I've counted this in with the cost of groceries.

Other expenses I've not included are £60 a month for the children's savings. I am also trying to set up a business so I have costs associated with that that are variable and difficult to estimate. I am hoping the business will be profitable soon but it is still early days.

Up until a month ago I was smoking so i am better off now that I don't but haven't yet felt the financial benefit.

BeingMe

I've combined some figures as I've taken them from the info sent to me by step change. My income shows all salary, benefits and child support.

The has and electricity are on an estimate and cost different each month. £90 is the top estimate as used by step change.

BeingMe

Also, my mother pays for myself and my children to have private dental care so I have no costs associated with this. I also qualify for tax credits health card.

I spend £100 on each child for their birthdays and again at Christmas. This is £600 a year. They are invited to (on average) at least one party a month which costs £10 for a present, card and wrapping paper.

I've realised I haven't included the children's dinner money into the SOA either. This is £20 per week.

eyeopener2

£60 a month savings is much better knocked off the debt, you can soon catch that back up when your debt free. So that's a good easy start.

Spending diary is a must as is quantifying your business costs.

Not buying children New clothes till they wear out will save some money as well.

Short term stuff, but long term benefits..

eyeopener2

Cut the £10 present to £5, another easy win. It all adds up, you'd be surprised.

BeingMe

I know it sounds simple but I really don't want to stop putting money into their savings. I lie awake at night worrying about how they will manage when they are adults. My main reason for wanting to get debt free is so that I can put more money into their savings as well as setting a good example financially.

eyeopener2

But you can put more into the savings if your not paying the banks stupid interest.

Short term pain, long term gain. It works.

[Deleted User]

BeingMe wrote: »

I know it sounds simple but I really don't want to stop putting money into their savings. I lie awake at night worrying about how they will manage when they are adults.

A year or so won't irredeemably damage their futures, and you will be able to pay in even more, once the 30% APR debt is gone.

BeingMe

The present is usually £5 plus £2.50 for a card and £2 wrapping paper.

I'll have to think about the savings thing - I think this is the last thing I'd cut from my budget but I appreciate it seems like the most obvious place to start. I guess I could start declining parties?

It's difficult because whilst I want to be debt free, I don't want the process to impact the children. I'd rather skip meals to save money than cancel their activities (don't mean to sound like a martyr).