New year, new me!

cyberthrifty

I have had lightbulb moments in the past, not that I did much about them back then, maybe the wattage was too low! This LBM has to be the serious one. Last week I was left with £15 for a weeks food after I paid my bills and at the moment there are 6 people living in my house. To say I had a momentary freak out is an understatement but after that moment I became determined to sort my life out!

I know exactly how things got to this point. I stupidly have ignored bills in the past or over committed (new mobile, full package virgin media etc) and then when unable to pay I just haven't. I ignored the letters and phone calls, they stopped when the phone was cut off of course. No excuses except that I was a moron.

Having plugged all my details into the Stepchange website, I have been advised to go for bankruptcy or a token payment plan. Eventually I would like to buy a house, but I am 34 years old and I think that ship might have sailed by the time I have a clean credit file and a decent enough job. I'll buy a field and a caravan instead, maybe eventually I'll get a log cabin on it... So I'd rather not go for bankruptcy, not that I can afford it anyway.

I'm currently not earning much (self employed cleaner, only 4 hours, always looking for new clients) but I am due a lump sum in January which I am going to put toward becoming a childminder, around £600 for all courses, certificates etc. But there is apparently a desperate need in my area. Hopefully I can be working by June 2015 depending on how long everything takes.

My to do list for the rest of December is:

1. Try not to get too stressed out
2. Enjoy Christmas
3. Send off for credit reports
4. Create a spreadsheet for next year
5. Stay positive - I can do this!

in_need_of_direction

You truly can. My LBM was last dec and while I know I should have done more this year, I know I did more thanks to this site than I would otherwise have done. Get an soa up and someone will be along to advise.

monz

You can do it! Just take it one step at a time. Do a spread sheet (I swear by these!) Relax. This forum helps loads. Do surveys xx

DawnW

Don't write off being able to buy a house in the future - 34 is still young. Ignore the hype about having to get 'on the ladder' in your 20s or 30s. OH and I couldn't afford to buy until we were over 50. You have plenty of time yet.

I like the idea of the field and caravan though. Hope it works out

cyberthrifty

Thanks for the words of encouragement. It feels good to get support from people going through or have gone through similar situations. Hopefully I can be as helpful as all of you guys when I have been here a bit longer.

My spreadsheet is almost complete I just want to add another page with my debt snowball details to get an idea of my debt free date, then I can beat it! I think I have become addicted to Excel over the past year or so... Could be worse though!

I'm looking forward to the New Year, joining a few challenges to help me stay on track and shamelessly borrowing people's excellent tips and hints to being more frugal.

A new gym is opening down the road from me, £10.99 a month with no contract and I am using my willpower to not join as I know I won't go. I plan on putting the money saved toward an allotment or at least growing some veg in my back garden, I'm sure all that hard work will be better than a gym anyway.

Roll on January!

cyberthrifty

I have yet to finish my Christmas shopping so have to brave town on Christmas Eve with 3 kiddies in tow, luckily I am not buying for them! I'm so sick of living hand to mouth from one day to the next it has just made me realise that I need to change things and I am desperate to try and improve my situation.

I've joined a few challenges to help me stay on track and I have downloaded a trial of YNAB as everyone is raving about it, hopefully it will work for me too. I worked up a spreadsheet until my DFD and allocated money here, there and everywhere to the penny. Then today I realised I didn't even add a petrol category so now the whole thing needs to be reworked and juggled. Oh well, that'll teach me for doing it on the fly I suppose.

My aims for the next week are:
# to appreciate what I have
# to stop questioning myself every time I make a decision
# to get through Christmas

cyberthrifty

It always seems to be one step forward and two steps back!

I was doing fine making sure I had the right money in my bills account every week etc, but now I have just had 2 payments come out which I had forgotten all about so I need to find extra money for the payments it was supposed to cover. Guarantee this happens at Christmas so I can't even ring the bank and try and get the payments returned to my account. I'm not going to stress about it though. It could be much worse!

My spreadsheet has been edited to within an inch of its life and I think it is finally ready to go. Just need it to be the first of January.

I joined a couple of challenges but then had to rework my budget and now I don't think I will be able to keep up with them. The £2 savers challenge for example, there are some weeks when I should have 96p left so any £2 coins I get will be well and truly spoken for. But I will muddle along the best I can. Hopefully after I start working I will have a few spares!

To date I have paid off £313.03!

laurag89

Hi cyberthrifty,

I know how tough it is!!! Keep going and stay motivated, small steps will get you to where you need to be I'm the end!

Maybe leave the challenges until a little bit has been cleared you may put to much pressure on yourself and lose your motivation!

You will get lots of help on here. I am subscribing

Have you completed a statement of affairs to know where your money is going?

cyberthrifty

Thanks laurag89.

It's frustrating but my own fault and will teach me to write things down and then keep checking them, rather than just writing them down.

I am focussing more on the challenges to control and monitor spending such as the grocery challenge and frugal living challenge as these will encourage me to think before I act. I'm not going to worry about saving until I have made a dent in my debts.

I will get a SOA done and posted asap. I do have a spreadsheet that has everything on it so I know how much I have to put aside weekly for bills etc.

So glad I found this forum, we can all reach our goals with hard work and determination but it's nice to have people to make the journey with.

cyberthrifty

OK here is my SOA, I may post it in the general forum to get advice as well as here. My figures are 4 weekly rather than monthly as I get paid weekly.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1030.24
Other income............................ 50
Total monthly income.................... 1080.24

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 107.50 Note 1
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 160 Note 2
Gas..................................... 100
Oil..................................... 0
Water rates............................. 60
Telephone (land line)................... 44 - broadband and tv included
Mobile phone............................ 10
TV Licence.............................. 25
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 160
Clothing................................ 0
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 72
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 758.5

Note 1 - I am reducing the monthly HP payment to 63.44 as of end of January when I can afford to replace the item
Note 2 - Electricity is high. I have an economy 7 prepayment meter. This is because the landlord has storage heaters in his annexe at the rear of my house running off my electricity meter. He pays me £50 per month which is probably low but refuses to install his own meter.
Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 700
Other assets............................ 0
Total Assets............................ 700


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1930.09..(107.5)....0
Total secured & HP debts...... 1930.09...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Provident......................1431......154.......0
Loans at home 4 u..............491.......20........0
Lowell (9 accounts)............2231.36...9.........0
Loan from sister...............280.......60........0
Housing Benefit Overp..........1294.38...40........0
Jeffrey Leaver CCJ.............391.47....20........0
Capital Resolve................330.......20........0
Capquest.......................214.31....1.........0
DWP............................187.08....5.........0
Total unsecured debts..........6850.6....329.......-


Monthly Budget Summary
Total monthly income.................... 1,080.24
Expenses (including HP & secured debts). 758.5
Available for debt repayments........... 321.74
Monthly UNsecured debt repayments....... 329
Amount short for making debt repayments. -7.26

Personal Balance Sheet Summary
Total assets (things you own)........... 700
Total HP & Secured debt................. -1,930.09
Total Unsecured debt.................... -6,850.6
Net Assets.............................. -8,080.69

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

DawnW

Didn't want to read and run. One thing rather leaps out - £25 is surely too much for the TV licence? Mine is about £12.50 per month.

And is £160 realistic for groceries for 5 people?