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

dancingfairy

O.k so we've found:
1) savings for children £60 (not sure if this is each or total)
2) birthday party costs
3) house decorating costs - now vastly reduced but maybe you need to budget something for this?
4) smoking - now given up but has until recently eaten a chunk of your money.
5) expenses on new business

I suspect as you go into it you will find other things that you have missed off or underestimated.
I suspect you have underestimated food as this is an area that most people underestimate. Generally you have a rough idea how much you spend but forget all those 'little' top up shops where you go in for bread or milk and end up buying half the shop (or is that just me :rotfl: ).
I think you need to try and get an accurate idea of your costs as far as possible, the easiest way to do this is probably a spending diary. Once you know where the money is going you can look at what changes you can make. Obviously people will make suggestions, some will work for you and others won't (or you won't want to make).
Once you have some 'spare' money you need to try and throw it at the highest interest debt first.
There is something called the snowball calculator where you can plug in all your debts and it will work out your debt free date. You can see the difference for every spare pound you can find.
Good Luck
df

[Deleted User]

dancingfairy wrote: »

There is something called the snowball calculator where you can plug in all your debts and it will work out your debt free date.

Here you go.

http://www.whatsthecost.com/snowball.aspx

BillJones

BeingMe wrote: »

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.

Then start again, on some paper, and keep it safe.

Other expenses I've not included are £60 a month for the children's savings.

You should probably stop this. Save for them once you are out of debt.

BillJones

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.

It's a safe assumption that when they are adults they'll work in jobs, for which they get a salary. They can use this for things such as food, housing, and clothes.

Willowpop

BeingMe wrote: »

There is a card factory in the nearest town but once parking and petrol has been factored in then it's cheaper just to go to tesco. I'd love to be one of these super organised people who has a card and present drawer in their house and stocks up on cheap presents when they're on offer. In reality I find the invitations the night before the party in their book bag, scramble to tesco where I pay way over the odds for a piece of plastic tat

Another problem I have is knowing how much to spend on debt repayments each month. I have a lot of expenses this month so I'm scared to spend any money even though I have it in my account right now, in case I need it later. How do people decide how much to pay off each month?

Be one of the organised people then. Card factory do 5 for a £1 or 10 for £3 or whatever their offer is on cards. Go in, buy 20 cards in one trip....A mix of female and male, young and old. Put them in a drawer and when a birthday comes you habe cards. Super simple and will save you a fortune!

Maysie

ebay also do birthday card bundles quite cheap. Have you anything you can sell on there then use the money for little essentials.

Have you looked on your local freecycle for kids clothes. I have seen people giving away uniform. Or facebook selling groups. our freecycle turned into freeagle then on facebook someone started a freecycle up again so we have two locally.

I recently had to kit my son out for an upcoming school residential trip (not really bought any sporty type clothes for 2 years as didn't need to) and was surprised to get slazenger tops and bottoms starting at £1.67-£2.60 online from sportsdirect. Really good sale on. Also got cashback track from quidco for clicking through.

Have you tried batch cooking? using up things soup from leftover roast? breadcrumbs from old bread, pizza from dried up french bread.

looking on local sites for free things to do with the kids? If you don't buy the food lots of cinemas do £1 -£1.50 films on a sat and sun morning.

~Beanie~

BeingMe wrote: »

£391 on entertainment for the children and cigarettes for myself (I've now quit smoking)
£149 on the children's savings and other things
£130 on travel (including £45 train tickets to see a relative which was a one off)
£126 on business expenses
£20.45 on eating out

None of these are included in your SOA, neither are the childrens £60 savings, that is why it appears healthy. This particular month you overspent by c£70 which you can't really afford to do if you are trying to become debt free.

£391 on entertainment and cigs is horrendous (although I realise you've given up smoking, well done), I don't really think your kids needed the circus and a theme park in one month.

Grumpelstiltskin

Until you realise you can't carry on throwing money you haven't got at your children nothing will change.


You must realize that spending money does not make you a good parent, saying no does not make you a bad parent.


What you need to spend is time, time looking for activities they can do for free. Time playing with them, going for a walk in the park, feeding the ducks, looking what the local library offers etc. etc.


The other thing is planning ahead, too late to start this school year but before they start back in September think about potential birthday parties they will be going to. You will know what age the children will be, get in a stock of cheap birthday cards and wrapping paper from Card Factory type shops.


Tell them that they must tell you immediately they have an invitation repeat this every evening until they have got the fact that you need to know in advance, that will help you budget for presents etc.


Most of all explain to them money is tight and get them onside.

wildincrawley

Lots of good advice here, so just a couple of thoughts come to mind...

Have you cut up the cards yet? Living off cash forces you to be realistic about what you are spending.

What is happening to the money you are freeing up? For example, you gave up smoking (WELL DONE!!!), so if you are saving £100 a month, are you paying that £100 a month onto the highest interest card / loan, or is it getting swallowed up in the general expenditure?

Do you have a job? Is this really the right time to be starting a business? When does your business plan say you will be "in profit"?

Sorry this comes across a bit bleak in writing, it sounds friendly and helpful in my head!

Pixie5740

Towards the end of April I decided to get my finances in order once and for all as I'm hoping to buy a house next year. I started using the YNAB budgeting software. I set up my budget for May and faithfully entered every penny I spent. I thought I was alright at budgeting but at the end of May I discovered that I had an overspend of £953. :eek: No wonder I end up putting things on my credit card. I've been able to use this information to set up a more realistic budget for June so I'll see how that goes.

I'm also self-employed so I have two budgets, one personal and one for work. It helps me keep track of everything. Thankfully my business budget was a lot more spot on than my personal one.

Maybe you could give YNAB a try.

NB I don't work YNAB nor am I affiliated with them I just love the software.