Here we go, I have to start somewhere but where !!??

Sassykittensunshine

Ive been watching this forum for a while and in total denial about the amount of debt myself and my partner have accumulated in the 6 and a half years we've been together. I've taken the huge step of adding it up today and am totally shocked. I have to get this under control.

So my partner and I are both divorcees, I'm late 30s, he's early 40s with 5 children between us. we love the nice things in life and for out sins we spend every penny we have and more. Well, I'm totally fed up of living hand to mouth, payday to payday so I need to get this under control once and for all.

We have a mortgage, a car loan and a bank loan, and for now none of those are included, as they are under control and the other debts in my mind are more urgent.

Credit cards £10,600
Overdrafts £4950

Total £15550.

We are also commited to 2 holidays this year - one already paid for for but £700 needed for spends and the other has £2000 left to pay. Looking at it now these never should have been booked.

Minimum payments are always made and payments are never missed, but it means that after large maintenance payments and loan and car finance paid the disposable income is not much.

I've had my lbm today, not sure how or where to start but I'm determined and don't want to still be paying this in 10 years time!!

I have a full time job (which I would love to go part time once debts paid) and run a small business in my spare time and eBay, my partner has a good full time job, so we are by no means slackers, but any advice/pointers great fully recieved !!

Please be kind, new to debt free wannabe !!

Newme2014

Not very good with advice but just wanted to wish you good luck

Sassykittensunshine

Thanks, I guess I know what I need to do deep down - cut out the spending !!
I've spend today sorting out a budget, bought loads of envelopes and drawing the amount of cash we need for each week out of the bank ( not quite enough but will get there !)
These will be sealed and dated for each week. This should stop us over spending this month.
I need to look at the interest rates of each debt and choose one to start to pay off.
I have a bill account already, but have opened a Christmas account and birthdays account to regularly add a small amount each month to so no more debt at Christmas.
I need to shop around for a cheaper gym, or cancel it all together and down grade things like Virgin tv and any other bills I can.
I think most importantly I need to get other half on board - he spends as much as me, I think we need a chat !!!

Here's to a new way forward !!

AleMrsT

Hi. Good luck on your journey, perhaps where to start is a SOA, here is the link. http://www.stoozing.com/calculator/soa.php
You can post it here and people can give you help and advice on what to cut back, what to budget for etc.
But checking APRs and working out your most 'expensive' debt, will help decide where to start.
I will subscribe to follow your progress!! Good luck.

Sassykittensunshine

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

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 3015
Benefits................................ 0
Other income............................ 225
Total monthly income.................... 4740

Monthly Expense Details
Mortgage................................ 924
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 150
Electricity............................. 55
Gas..................................... 55
Oil..................................... 0
Water rates............................. 60
Telephone (land line)................... 50
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 200
Petrol/diesel........................... 400
Road tax................................ 44
Car Insurance........................... 39
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 300
Other child related expenses............ 600
Medical (prescriptions, dentist etc).... 55
Pet insurance/vet bills................. 20
Buildings insurance..................... 22
Contents insurance...................... 25
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 130
Haircuts................................ 30
Entertainment........................... 80
Holiday................................. 300
Emergency fund.......................... 0
Total monthly expenses.................. 4016


Assets
Cash.................................... 0
House value (Gross)..................... 240000
Shares and bonds........................ 200
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 250200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 184000...(924)......4.2
Total secured & HP debts...... 184000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit cards...................10600.....260.......0
Overdrafts.....................4950......0.........0
Car loan.......................8000......262.......0
Loan...........................12000.....272.......0
Total unsecured debts..........35550.....794.......-


Monthly Budget Summary
Total monthly income.................... 4,740
Expenses (including HP & secured debts). 4,016
Available for debt repayments........... 724
Monthly UNsecured debt repayments....... 794
Amount short for making debt repayments. -70

Personal Balance Sheet Summary
Total assets (things you own)........... 250,200
Total HP & Secured debt................. -184,000
Total Unsecured debt.................... -35,550
Net Assets.............................. 30,650

Created using the SOA calculator

Not sure if I did this correctly !! Unsure of apr but credit card one is v high
Thank you