Counting The Pennies

chelseachris

My name is Christopher. I am a chef from York living with my partner, 3 step-children, one grandchild, one mother-in-law and our cat, Winnie. This is my debt story.

How did the debt come about?

I met my partner online and were a long-distance couple. We made the decision to merge our two households but the necessary renovations and moving costs meant that a £10000 loan was needed. With this we fitted a new kitchen and re-carpeted and decorated a run-down four bedroom house.

After the move we asked the 3 children for no rent so they pursue they dream jobs without finance burden. After a year we had amassed £2000 of overdraft debt and £4500 of credit card debt. We had reached the end of the credit line and each month became a juggling act, using Wonga and QuickQuid to get food on the table and to keep the wolf from the door. When the car needed its MOT it ended being sold for scrap. My father-in-law then got sick and my partner had to give up work to care for him. Our debt was £16500 and it looked bleak.

What changed?

This summer things reached their lowest point, my father-in-law passed away, the cost of the funeral adding to the grief. But it allowed my partner not only to return to work, but to get her dream job as a librarian. Our first grandchild was born and we finally managed to buy a car. I changed jobs increasing my monthly take home pay by £300.

The future:

Today, with Christmas approaching, our debt stands at £12745. I plan to reduce this by £500 a month and be debt free in two years. Please follow my progress and offer me advice whenever possible :-)

Christopher

chelseachris

One reason for coming on here is that I am running out of ways to save money. Things I have done so far:

1. Reduced food shopping bills by shopping around and taking advantage of online offers (£12 off a £60 shop, etc.)
2. Reducing electric and gas from £135 to £88 a month.
3. Re-negotiating Sky from £90 to £65.
4. Not renewing by mobile contract, reducing from £32 to £7 a month.
5. Using gamble sites introductory offers to make around £300.
6. Transferring credit card debt to interest free alternatives.
7. Re-claiming PPI money (£700)
8. Regularly scouring HUKD for offers.

So, basically,what else can I do to reduce my monthly outgoings (currently £1750).

This month I have set myself a food budget of £128, and so far I have spent just £2. Hoping to empty the freezer and save for Xmas food shopping.

chelseachris

Monthly budget template:

Mortgage £290
Loan £250
Food £250
Council Tax £110
Extras £100
Sky £70
Mobiles £45
Water £45
Travel £45
Halifax Charges £30
Sofa £30
Barclaycard minimum £25
Tesco C/C min £25
Santander C/C min £15
Home Insurance £15
TV licence £12

chelseachris

Today's money saving.

Have rung Sky to cancel. Have no intention of leaving them but my current offer (50% off TV package for 12 months) is coming to an end, Now to play chicken and see if I can hold out for the fabled 75% off.

Food economizing is also going well having spent just £2.59 so far this month. Pay day is 3 weeks away. I always count down to payday but it only ever signifies that we survived another month, like each month is a small battle in a long, drawn-out war.

Have also done the MSE Big Energy Switch. This is hopefully save me £8 a month

chelseachris

Will try cycling to work tomorrow - its probably not the best idea with winter approaching but it could save me £12 a week.

Still have only spent £2.59 on food this month. If I can bring some curry home from work tomorrow could stretch it out until tuesday before we have to do a shop. I have a £12 off a £60 shop voucher lined up, so hopefully get quite a lot for £48. Have two meat joints in the freezer so a big sack of spuds and veg will go a long way.

Step-son paid £40 back that I lent him so will put straight on a C/C.

Mara_uk7

Hey Chris, welcome . First up, you need to do a statement of affairs, someone smarter than me will post a link in a wee while. Second up, youre doing the kids no favours by not charging something for board if theyre working. They need to learn what life costs.. Realistically.
Good luck with your quest .. You sound determined enough to do it !

chelseachris

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 4
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1260
Partners monthly income after tax....... 400
Benefits................................ 0
Other income............................ 140
Total monthly income.................... 1800

Monthly Expense Details
Mortgage................................ 290.4
Secured/HP loan repayments.............. 275
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 15
Mobile phone............................ 80
TV Licence.............................. 12.5
Satellite/Cable TV...................... 50
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 45
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 10
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1437.9


Assets
Cash.................................... -1500
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 138500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 58250....(290.4)....2.49
Secured Debt.................. 6100.....(247.5)....5.9
Hire Purchase (HP) debt ...... 575......(27.5).....0
Total secured & HP debts...... 64925.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................1700......40........0
Tesco..........................800.......25........0
Santander......................1070......15........0
Total unsecured debts..........3570......80........-


Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,437.9
Available for debt repayments........... 362.1
Monthly UNsecured debt repayments....... 80
Amount left after debt repayments....... 282.1

Personal Balance Sheet Summary
Total assets (things you own)........... 138,500
Total HP & Secured debt................. -64,925
Total Unsecured debt.................... -3,570
Net Assets.............................. 70,005

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Mara_uk7

Your debts detailed dont come to £12745 ? Are you missing something ? Apart from that, it all looks pretty tight apart from the mobiles, and youre addressing that. Oh and your Sky figure differs from your post 1 .

chelseachris

I count my debts as follows:

Tesco C/C 800
Barc C/C 1700
Sant C/C 1070
Santander Loan 6100
Sofa 575
Halifax Reward 1500
Money holding on behalf of daughter 1000

This comes to £12,745 - I probably didn't fill out the SOA properly.

The £80 for mobiles is made up of £40 for my sons (which he pays me for each month), £32 for my partners and £8 for mine.

The sky is £65 but there is often a few pounds call charges so it always differs when I write it down.

chelseachris

2/3 children now moved out. 3rd has just had a baby and is living with us (for £100 rent a month) on the proviso that she saves £500 towards a house of her own.

WhiteRose2014

Good morning Chris, wishing you loads of luck with the debt busting now subscribed