Step by step

Eager_Elephant

:hello: fellow East Anglian!!


I am in sunny Suffolk and when I looked at new diaries I saw you were from Norfolk and thought I would come and support you.


Sorry to hear you were made redundant and are finding getting another job tough.


I believe in positive thoughts so keep on being positive.


I think you are doing great with writing to your creditors (the overdrafts will stop the charges within the next 4 weeks once you have written the letters) and selling items.


Will subscribe

pinnit2014

I have approximately one year until my Debt free date. Over the last few years i have scrimped, put everything into paying a little bit extra to my creditors, though its meant having a few years of sacrifices. But it was either that or having more sacrifices over a longer period...! Good luck in your quest!

Notepad

Morning Eager_Elephant and pinnit2014, thanks for posting - it's really therapeutic to see how others are managing and I'm taking all of your comments on board.

Eager_Elephant - we lived in Suffolk 2001-2003! For various reasons we have moved house 6 times over the last 13 years - which didn't help our debt accumulation one bit! That's a lot of solicitor and estate agency fees (daren't tot up how much exactly!)

This morning I've taken clearer pictures of the TV unit I'm trying to sell and uploaded them to Gumtree. The washing machine and dishwasher are doing their duties and I'm not finishing off the SOA,

I'm battling a stinker of a cold, not helped by a chronic lung condition and other associated health issues. Am wrapped up warm and using a heat pad, rather than having the heating on at the moment. Planning on soup for lunch as there are two tins in the cupboard which have been there for most of the year!

Hope you're all having a good day.

Mrs N x

Notepad

So, here's our SOA which I'd welcome comments/advice about from you all. This is the monthly expenditure our StepChange review came up with.

I'm not sure how to calculate the current overdraft fees as Barclays are now charging £1.50 per day on each account. My mathematical skills aren't great and I'd welcome your thoughts on how to calculate the APR.

First Direct overdraft fees aren't clear either - I'm just going through their website for further information.

Now I've revisited the SOA with the figures from StepChange, it appears even more depressing! Feeling very stupid and annoyed with myself.

Thank you in advance.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household............. 2
Number of children in household......... 1
Number of cars owned.......................... 1

Monthly Income Details
Monthly income after tax................ 0 (I'm job hunting for part-time employment taking into account my health issues)
Partners monthly income after tax....... 2600
Benefits................................................ 82
Other income........................................ 0
Total monthly income.......................... 2682

Monthly Expense Details
Mortgage............................................. 725.5
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 8.6 (annual £105 maintenance fee on new estate)
Council tax................................................. 146
Electricity................................................... 32
Gas............................................................. 28
Oil.............................................................. 0
Water rates................................................. 53
Telephone (land line)................................. 10.33
Mobile phone............................................. 41 (3 mobiles)
TV Licence................................................ 12.12
Satellite/Cable TV...................................... 10.33
Internet Services........................................ 10.33
Groceries etc. ............................................ 320 (need to reduce this significantly)
Clothing..................................................... 15
Petrol/diesel............................................... 120
Road tax..................................................... 25
Car Insurance............................................. 26.85
Car maintenance (including MOT)............ 10
Car parking................................................. 0
Other travel................................................. 0
Childcare/nursery........................................ 0
Other child related expenses.......................17
Medical (prescriptions, dentist etc).............25.2 (dental and NHS PPC)
Pet insurance/vet bills................................ 34
Buildings insurance................................... 15.87
Contents insurance.................................... 15.87
Life assurance ........................................... 22.45
Other insurance.......................................... 0
Presents (birthday, christmas etc).............. 25 (recommended by StepChange)
Haircuts..................................................... 10.75
Miscellaneous / DDs allowance.................25
Holiday...................................................... 0
Emergency fund........................................ 34 (recommended by StepChange)
Total monthly expenses............................ 1819.2


Assets[/b]
Cash.................................... 0
House value (Gross)..................... 240000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 245000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150225...(725.5)....2.94
Secured Debt.................. 47990....(0)........0 (HTB loan payments don't commence until 2019)
Total secured & HP debts...... 198215....-.........-

Unsecured Debt
Description....................Debt......Monthly...APR
Barclaycard....................4906.75...111.......16.9
Barclays overdraft.............1455......50........0 (?)
Barclays overdraft.............1428......50........0 (?)
Sainsbury's Bank...............3934......358.......7.74
First Direct o.draft...........779.......50........1.43 (?)
First Direct card..............9690......282.......0
Total unsecured debts..........22192.75..901.......-


Monthly Budget Summary
Total monthly income.................... 2,682
Expenses (including HP & secured debts). 1,819.2
Available for debt repayments........... 862.8
Monthly UNsecured debt repayments....... 901
Amount short for making debt repayments. -38.2

Personal Balance Sheet Summary
Total assets (things you own)........... 245,000
Total HP & Secured debt................. -198,215
Total Unsecured debt.................... -22,192.75
Net Assets.............................. 24,592.25

DebtFree2012

Hi Notepad, I just wanted to welcome you and show my support. I have a long battle ahead of me so I shall subscribe and we can get through as a MSE team

Notepad

Hi DebtFree,

Nice to see you. Look forward to sharing your journey and offering virtual support.

Notepad

Right, so just collected DD who's been sent home from school unwell. She's battling a nasty cough all week, so has done well to get this far. :T

I'll need to update the SOA as DH's income will be £200-£300 greater over the next 3 months due to the overtime he's had confirmed. This will help the shortfall that currently exists and hopefully allow us to start building up a small emergency fund.

I've emptied all of our copper coins into a jar and will keep adding to that over the next 12 months. I've evaluated our utility bills and can't get them any lower.

Just about to search for a suitable letter template to send to the banks about the overdrafts.

Will check in on other diaries later

Steerpike88

Notepad wrote: »

So, here's our SOA which I'd welcome comments/advice about from you all. This is the monthly expenditure our StepChange review came up with.

I'm not sure how to calculate the current overdraft fees as Barclays are now charging £1.50 per day on each account. My mathematical skills aren't great and I'd welcome your thoughts on how to calculate the APR.

First Direct overdraft fees aren't clear either - I'm just going through their website for further information.

Now I've revisited the SOA with the figures from StepChange, it appears even more depressing! Feeling very stupid and annoyed with myself.

Thank you in advance.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household............. 2
Number of children in household......... 1
Number of cars owned.......................... 1

Monthly Income Details
Monthly income after tax................ 0 (I'm job hunting for part-time employment taking into account my health issues)
Partners monthly income after tax....... 2600
Benefits................................................ 82
Other income........................................ 0
Total monthly income.......................... 2682

Monthly Expense Details
Mortgage............................................. 725.5
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 8.6 (annual £105 maintenance fee on new estate)
Council tax................................................. 146
Can you get help with your council tax while you're on jobseekers still? I used to be able to,
Electricity................................................... 32
Gas............................................................. 28
Oil.............................................................. 0
Water rates................................................. 53
Have you considered putting in a water meter? It might cut this down if you haven't got one. You can also put a filled bottle of water in your cistern to help cut down on water when you flush. Reduce shower times, etc. We put a bucket to fill up with water while we're waiting for the shower to heat up so we can water the garden with it.
Telephone (land line)................................. 10.33
Mobile phone............................................. 41 (3 mobiles)
TV Licence................................................ 12.12
Satellite/Cable TV...................................... 10.33
Anyway you can cut this? Do you have a freeview box? It's not very much but you might find you want to cut it a bit anyway.
Internet Services........................................ 10.33
Groceries etc. ............................................ 320 (need to reduce this significantly)
Easy ways are to try going down a brand in supermarkets, like if you get Heinz baked beans get the Tesco own brand, or even Tesco value. I can't really taste a difference. Going meat-free for a couple of meals a week helps. See of you can cut this by £100
Clothing..................................................... 15
Petrol/diesel............................................... 120
Road tax..................................................... 25
Car Insurance............................................. 26.85
Car maintenance (including MOT)............ 10
Car parking................................................. 0
Other travel................................................. 0
Childcare/nursery........................................ 0
Other child related expenses.......................17
Medical (prescriptions, dentist etc).............25.2 (dental and NHS PPC)
Pet insurance/vet bills................................ 34
That seems quite high any way of shopping around for this? Or do you have several animals?
Buildings insurance................................... 15.87
Contents insurance.................................... 15.87
Life assurance ........................................... 22.45
Other insurance.......................................... 0
Presents (birthday, christmas etc).............. 25 (recommended by StepChange)
This seems reasonable. You'll find things like cards really add up, it might be worth it to make a few simple ones of your own. Pinterest has some great ideas.
Haircuts..................................................... 10.75
Miscellaneous / DDs allowance.................25
Holiday...................................................... 0
Emergency fund........................................ 34 (recommended by StepChange)
Yes, around 700-1000 pounds is great, it's even better if you're already saving up or paying for your insurance every month. Something ALWAYS happens when you're debt-busting, the boiler going, the washing machine, car repairs.
Total monthly expenses............................ 1819.2


Assets[/b]
Cash.................................... 0
House value (Gross)..................... 240000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 245000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150225...(725.5)....2.94
Secured Debt.................. 47990....(0)........0 (HTB loan payments don't commence until 2019)
Total secured & HP debts...... 198215....-.........-

Unsecured Debt
Description....................Debt......Monthly...APR
Barclaycard....................4906.75...111.......16.9
Barclays overdraft.............1455......50........0 (?)
Barclays overdraft.............1428......50........0 (?)
Sainsbury's Bank...............3934......358.......7.74
First Direct o.draft...........779.......50........1.43 (?)
First Direct card..............9690......282.......0
Total unsecured debts..........22192.75..901.......-


Monthly Budget Summary
Total monthly income.................... 2,682
Expenses (including HP & secured debts). 1,819.2
Available for debt repayments........... 862.8
Monthly UNsecured debt repayments....... 901
Amount short for making debt repayments. -38.2

Personal Balance Sheet Summary
Total assets (things you own)........... 245,000
Total HP & Secured debt................. -198,215
Total Unsecured debt.................... -22,192.75
Net Assets.............................. 24,592.25

Hopefully some of these ideas work for you. Those are some of the things I would personally target. Just tackle those overdrafts with the ridiculous charges, that's going to make the biggest different to your mood. Next identify the credit cards with the highest interest, you might want to shift your smallest debts first or the ones with the highest interest.
Good luck!

Notepad

Thanks so much for your thoughts and feedback Steerpike, much appreciated.

I'm not on jobseekers - I've been temping when my health allows, but the last few months have proved difficult. I am avidly job hunting again and reregistering with agencies.

We are on a water meter already, which is priced correctly according to the supplier. As a family with allergies and skin conditions, we do wash bedding, towels and clothes more than most people would, along with longer showers, which I think is why the bill is fairly hefty. Will try the tips to reduce consumption though.

The TV, broadband and phone line are all one package with Sky at the moment. We plan to look around again in April when our package is up for renewal.

Our weekly shop doesn't involved any branded goods - apart from baked beans(!). Everything is store brand or economy. We shop at M0rris0ns and don't have an Aldi or Lidl anywhere nearby. We always shop with a meal plan prepared but we must bring this bill down somehow. I'll keep looking on these boards.

The pet insurance is for one 3yr old dog! We're shopping around for a better quote for this.

I'm planning to post letters to the banks tomorrow requesting account closure and interest rates frozen.

Thanks again

Eager_Elephant

Hi Mrs N


Can you confirm if the FS is the one you are planning to send to creditors or the one you want to work to?


If it is the one you are sending to creditors you need to up some of your figures. If it is the one you want to aim for then it is fine.


The one you need to send to your creditors needs to have the following increased to a more realistic amount:


Landline/Satellite/Internet
Clothing should be £5 per person per week
Car Maintenance is way too low - think 1 x MOT (approx. £60) and then a couple of tyres and a few repairs in a year - I would be allowing £300-400per year.
Groceries - you should allow £30 per person per week.


Your offer to creditors should be based on what's left after you have increased the figures to the above.


if you can manage on the figures you put on the original SOA then you will be able to put more aside for an emergency fund and also towards some full and finals in the future.


I wouldn't worry too much at this stage about the APR's - First Direct and Barclays will both stop charges shortly so you won't need to worry.


If you need more help with what to put on your SOA for your creditors give me a shout.