Eyes now wide open

yummymummy10

Hi All

Been lurking on the site for a while now and finally plucked up the courage to get some advise from you lovely people who seem like great help and very supportive.

So im 22 and finally opening up to how much debt I'm really in.

Barclays platinum - £6482.63
Barclays initial visa - £2414.65

I feel as though everytime i get paid all my money goes on DD and my credit cards but they are still not going down.My 1st step was speaking to barclaycard as i was paying a bit more than the minimum on each card but the next month the interest would be what i had paid the month prior so wouldn't make a difference.

I explained this to them and they have reduced the interest on both cards to 9.9% for 24 months. I have tried to do a balance transfer to an interest free credit card but can't get one

Would really like to get this down to half by june next year and paid off by the end of next year but not sure where to start

SOA now below have tried to fill out as best as possible

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1417.42
Partners monthly income after tax....... 0
Benefits................................ 722
Other income............................ 0
Total monthly income.................... 2139.42

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 68 - This is for sky,phone line and internet
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 50
Petrol/diesel........................... 280
Road tax................................ 180 - Just about to renew but will do 6months for 90
Car Insurance........................... 110
Car maintenance (including MOT)......... 40 - This isn't required until next year
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 930.64
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18.5 - Just been to the dentist so no need for 6months
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 18.99
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2076.13


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard platinum...........6482.63...164.......0
Barclaycard initial............2414.65...80........0
Total unsecured debts..........8897.28...244.......-


Monthly Budget Summary
Total monthly income.................... 2,139.42
Expenses (including HP & secured debts). 2,076.13
Available for debt repayments........... 63.29
Monthly UNsecured debt repayments....... 244
Amount short for making debt repayments. -180.71

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,897.28
Net Assets.............................. -4,397.28

Ratison

Hello and welcome,

A suggestion often made on here is to post a statement of affairs - here's the link to give it a go. http://www.stoozing.com/calculator/soa.php

This will allow people to make suggestions about your budget and where you could save money.

Good luck! You will get there!

yummymummy10

Thanks Ratison have just posted this so hopefully this will help

Therese1

Hi there,

Well done on recognising it's time to stop the debt bus...you've certainly come to the right place for ideas and advice!

There will be others along with great ideas soon but I've notice a few queries ...
No mortgage or rent?
£150 per month on presents seems a lot ands more than food (well done if food is only £100 per month)

It may be you've just mistyped but worth double checking to make sure you are as accurate as you can be.

Good luck

yummymummy10

Thanks therse1

Yes I'm lucky enough currently to not pay any mortgage or rent as OH takes care of this.

yes presents was mistyped this should be £50 and food is £100 try and plan meals as best as possible

jaydeeuk1

You're spending a lot each month just on your car, approx £445 a month (you entered car tax as the yearly amount), is public transport no option? Assuming 30mpg at worst £280 buys about 1500 miles a month in petrol, and a lot more if you have a car cable of 50mpg. Your groceries is low, which is a good thing but is it accurate? I spend more than that a week and thats after cutting down!


Look at it this way, you're paying £1300 a month to get to work and pay for someone looking after your kid - thats nearly your salary!!! If you stayed at home you'll be £100 worse off but probably get that back in benefits anyway. I'm probably missing a load of background info, but its something to work from!

yummymummy10

Thanks jaydeeuk1

OH pays £50 towards food shopping so its £150 in total

Yes the car is taking a lot out of my salary every month. i do about 35miles up to 5 day a week for work, trying to cut this down to 3 or 4 days but isn't always possible.

I have thought about getting a diesel car as mine is only 35mpg however paying off debts is more important currently.

Im unable to take public transport as this would involve taking 3 trains and would take longer. Need to be back for a certain time to pick up my LO from nursery

jaydeeuk1

yummymummy10 wrote: »

Thanks jaydeeuk1

OH pays £50 towards food shopping so its £150 in total

Yes the car is taking a lot out of my salary every month. i do about 35miles up to 5 day a week for work, trying to cut this down to 3 or 4 days but isn't always possible.

I have thought about getting a diesel car as mine is only 35mpg however paying off debts is more important currently.

Im unable to take public transport as this would involve taking 3 trains and would take longer. Need to be back for a certain time to pick up my LO from nursery

Is it really worth working full tim e at the moment for £100 a month? That's bout 65p / hour take home pay.

theoretica

jaydeeuk1 wrote: »

Is it really worth working full tim e at the moment for £100 a month? That's bout 65p / hour take home pay.

Not all of the expenses would be cancelled if she stayed at home - they would still need to pay for food and electricity and things.

I think you need to have a hard look at the things on your budget you could survive without and rank them as more or less important than your debt - clothes for you, being so generous with presents, such a high mobile and phone contract.

Also keep a spending diary where you write down every penny to see how true your budget is.

MrsSave

yummymummy10 wrote: »

Hi All

Been lurking on the site for a while now and finally plucked up the courage to get some advise from you lovely people who seem like great help and very supportive.

So im 22 and finally opening up to how much debt I'm really in.

Barclays platinum - £6482.63
Barclays initial visa - £2414.65

I feel as though everytime i get paid all my money goes on DD and my credit cards but they are still not going down.My 1st step was speaking to barclaycard as i was paying a bit more than the minimum on each card but the next month the interest would be what i had paid the month prior so wouldn't make a difference.

I explained this to them and they have reduced the interest on both cards to 9.9% for 24 months. I have tried to do a balance transfer to an interest free credit card but can't get one

Would really like to get this down to half by june next year and paid off by the end of next year but not sure where to start

SOA now below have tried to fill out as best as possible

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1417.42
Partners monthly income after tax....... 0
Benefits................................ 722
Other income............................ 0
Total monthly income.................... 2139.42

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 68 - This is for sky,phone line and internet
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 50
Petrol/diesel........................... 280
Road tax................................ 180 - Just about to renew but will do 6months for 90
Car Insurance........................... 110
Car maintenance (including MOT)......... 40 - This isn't required until next year
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 930.64
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 18.5 - Just been to the dentist so no need for 6months
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 18.99
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2076.13


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard platinum...........6482.63...164.......0
Barclaycard initial............2414.65...80........0
Total unsecured debts..........8897.28...244.......-


Monthly Budget Summary
Total monthly income.................... 2,139.42
Expenses (including HP & secured debts). 2,076.13
Available for debt repayments........... 63.29
Monthly UNsecured debt repayments....... 244
Amount short for making debt repayments. -180.71

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,897.28
Net Assets.............................. -4,397.28

Hi, well done for posting. What stands out for me are:
1. Mobile phone is high at £50. I'm currently on a sim only, which costs £10 a month. Includes texts, minutes and 1gb internet.
2. You mention things like car tax and dentist, have put it an amount and then stated you won't need them for x months now. Your best bet whilst doing an soa is to work out how much you spend per year on these things and divide by 12. That way you are putting a little away each month for things like car tax, so when it is time to pay the money will already be there.
3. I am a little confused with childcare being so high, but only wages for one of you. Does your partner work? If so, I'm guessing he (assumption) pays for some things whilst you pay for others. If this is the case, are you sure you are both paying a fair amount?
4. £50 on clothes is a little high. Not sure how old your dc is, my ds is 16 months old and don't need to spend this amount each month. I currently spend next to nothing on my own clothes as we can't afford it, if I do want something, I work extra to earn the money for it.
5. Telephone seems a little high, even with broadband and sky thrown in. Do you have the basic sky package or pay more for extra channels? How about freeview?

I hope this helps a little.

Therese1

Would it be worth re doing the SOA and include your partners income/outgoings too? You may have separate finances but you have family and one house to pay for between you. The decision to work or not is not just financial obviously but this way you can work out what's best for the family as a whole...

T