In a bit of a mess!

CrossFit_Duck

Hello everyone

Got myself in a bit of a pickle over bills and debts. Long term relationship breakdown, health issues and lack of control has led me to be in a very difficult position.

But, I am now feeling better and able to deal with things. I am in a new relationship and want to get myself sorted asap.

I have never done a budget before, so a lot of the below is just copying what is in my monthly statement. I guess it's a starting point? I know I need to add some more and keeping a spending diary to help me work out what I am missing.

I am not behind with any payments, although I am living on my overdraft. I will pay it off and close the account this month so then it will be really scary!

Lodger and garage renting are new sources of income for me, starting at the end of the month. Car Tax is due this month, obviously not a monthly expense. Loan to a friend for £500 is for 4 months. Planning to use that to up the CC payments, plus anything else I have left, after that.

Have I forgotten anything? Any suggestions would be really appreciated.


FEB INCOME
Salary / Wages 3,360.00
Garage 100.00
Lodger 400.00

TOTAL INCOME 3,860.00
EXPENSES HOME
Mortgage/rent 901.66
Council Tax 95.00
TV License 12.12
Mobile telephone 70.54
Elec and Gas 93.00
Home insurance 18.61
Water 18.00
Sewerage 10.88
TOTAL HOME 1,199.81 DAILY LIVING

Vegetables 44.85
Meat 50.00
Vacuum cleaner service 10.00
Household stuff 20.00
Housecleaning 100.40
Window cleaning 15.00
TOTAL DAILY LIVING 240.25 TRANSPORTATION

Gas/fuel 60.00
Insurance 41.67
Repairs 25.00
Tax 180.00
Parking -
TOTAL TRANSPORTATION 306.67 ENTERTAINMENT

Broadband & TV 44.00
Netflix 5.99
Movies/plays -
Concerts/clubs -
TOTAL ENTERTAINMENT 49.99 HEALTH

Insurance 8.19
Prescriptions -
Over-the-counter drugs -
TOTAL HEALTH 8.19 RECREATION

Gym fees 36.00
Sports equipment -
Personal Trainer -
Sports Massage 40.00
TOTAL RECREATION 76.00 PETS
Insurance 35.57
Insurance 33.30
Vet scheme 12.04
Vet scheme 13.40
Food -
Dog Walker 209.00
Boarding -
Grooming -
Treats -
TOTAL PETS 303.31 PERSONAL

Clothing -
Gifts -
Hair 80.00
TOTAL PERSONAL 80.00 FINANCIAL OBLIGATIONS


Experian 3.99
Loan from friend 500.00
Lottery syndicate 20.00
TOTAL FINANCIAL OBLIGATIONS 523.99 MISC. PAYMENTS

Barclaycard 178.00
Halifax 70.05
MBNA 98.85
Tesco 199.00
Other -
TOTAL MISC. PAYMENTS 545.90 TOTAL

INCOME 3,860.00
EXPENSES 3,354.11
Net 505.89


Debts
Halifax ---- 4,426.73 ---- 19.45%
Tesco ---- 10,663 ---- 17.9%
Barclaycard ---- 8,956.44 ---- 0% until 01/10/2016
MBNA ---- 9,786.65 ---- 0% until 01/01/2016
Overdraft ---- 1,608.08
Friend ---- 2,000

twiggy86

Hi!

Well done on coming on here and posting an SOA.

I've noticed a couple of things which I wanted to query/could maybe be cut down on (all meant to helpful!):-

Housecleaning 100.40
Window cleaning 15.00

Do you have a cleaner? If so, do you really need this? If not, what is this spend? How often do you have a window cleaner? Again, do you really need this?

You seem to spend a lot on your animals (please don't hate me - I AM a animal lover!) Do you need a dog walker?

£80 for hair - how often do you have your hair done? Could you go somewhere cheaper or drop down a stylist level?

Also, do you need the gym or can you go running or something instead? Is the sports massage a monthly thing? If so, is it necessary?

However you seem to have a fair amount left over after expenses/debt busting - appreciate the lodger and garage rental are new. What are your total debts? If you could throw an extra £500 at them that would be great! However, you may want to consider budgeting for birthdays and Christmas (did I really mention Christmas already?!), dental/medical, clothes etc.

Hope you find something useful in my ramblings!

Good luck!

Aaleigha

well done for being here and facing up to things

you have not included dog food what do you spend a month - I thought I was getting a really good quality food but am now getting a much better one for far less (pm me if you want to know details)

I would also question the lottery syndicate as a way of saving some money - I know they will win the week you leave it )

to cut down on fuel costs could you car share with someone from work - not only less fuel but less ware and tear too

and the biggest help to me so far is writing menu plans and sticking to them - for now only buying what I dont have in the house
I am eating more frugally for instance I have just had toast for lunch and was thinking toast with cheese and marmite - but just had the marmite instead - I really didnt need both

I really wish you well and I am sure that after your first month of writing everything down you WILL see changes you can make - I am hoping the same as I have started writing it all down since the beginning of the month

Pepperoni

Well done with lodger / garage rental.

- Mobile - cancel, use handset and get a £7 monthly SIM card instead
- Vacuum service - whats this? Is it necessary?
- House cleaning - do it yourself whilst you are in debt
- TV - Cancel - get freesat or similar
- Cancel Gym - walk or run instead
- Massage - do you need this?
- Dog walker - could you cut it down? any way around - coming home on lunch break to walk etc?
- Clothing / gifts - do you really never buy either?
- Experian - cancel

On_my_way

You probably need the dog walker if that is because you are out at work but I have never seen someone need to reduce spending who has a cleaner etc!

There is quit a lot you could cut out if you want to pay off your debt.

cakeforbrains

As others have said, you have some luxuries in there that most people in debt would very much do without. If you absolutely have to have a cleaner (you obviously have a high-paid job so I am guessing you work long hours??) then could they walk your dog/s?

The £500 friend loan - did you lend that to a friend as a one-off, or are you repaying a friend £500 a month? If it's the former then presumably next month you'll spend £500 less, which you can put towards debt.

If you could put a list of your debts, monthly minimum repayments, and interest rates that will help people advise you.

Well done for taking the first step.

rockm87

Noddle is a online credit report, and its free. Use instead of Experian.

CrossFit_Duck

Just wanted to say a very big THANK YOU to your kind replies. I will go over my spreadsheet and clarify a few things when I get home this evening.

Much appreciated!

CrossFit_Duck

Hello again


Thank you for your very useful comments. I have been looking at my figures this evening and getting quite low. How did I let this happen


I managed to get the debt balances and APR and put them on the first post. My priority this month is to clear my overdraft. It does goes all the way to £3,000 every month so it costs me a lot. I have opened a basic bank account and have been transferring direct debits across.


In terms of some of the comments:
- the £500 repayment is a loan I got from a friend to help me buy my ex out, when he left. This was in addition to the mortgage. I have 4 payments left to make - can't wait!


- I work long hours, usually 9am - 7pm and with the added travelling time to and from, I feel it's too long to leave the dogs without a walk.


- The dogs cost me a lot, I can see that but, they give me a lot too. I buy their food a few times a year. Last time was September for £198. They eat raw so I stock up the freezer. We have enough until the end of Feb there.


- I get a weekly delivery of veg and order meat as I need it. That helps me avoid going to the shops and reduce waste. I bulk cook and freeze or cook in the evening. Not quite got the hang of meal planning though but I am working on it.


- I use the gym to do CrossFit. I am recovering from an injury, hence the massage. Once I am better, the cost of the gym will be going up (it's a pay as you use kind of place) to £55 monthly. CrossFit is quite specific and it's the only form of exercise I have really enjoyed so I am keen to continue it. I realise that is not DFW...


- I have cancelled Experian tonight.


- The Vac save is a vacuum service thing. I am due a service next week. Once that is done, I will cancel it.


-I am actively looking for a cheaper salon. I have my hair cut and coloured once a month so I'd rather go to a cheaper place than stop that.


-The mobile phone is on contract until October. I will negotiate a lower deal then.


- The TV and Broadband are on contract until June.


- I cancelled Netflix tonight.


- The housecleaning is something I will need to think about. I don't really get much free time, and when I do, I choose to take the dogs out, do CrossFit or meet the new man. With the dogs, it's hard to keep a clean home.


I hope you can see I have really thought about the advice I was given. I know I am not in as bad a position as some other forum members but I am sure my stress and anxiety over all this is very similar to others on here

hostie

Try shuffling your existing debts - look into whether any of them offer a lower rate for balance transfers and maybe you can move some of them around to get a better rate.

Some people won't agree with this… but with your high income, you could probably get another cheap or free overdraft of around 2k, which you could use to reduce one of the debts.

Reduce your cleaner to twice a month instead of weekly.

Make sure you are charging your lodger market value or higher and discuss the cleaning. Say that you are going to have to have your cleaner come less often (twice monthly) and so they will need to do their share of the cleaning or pay for the cleaner to come the other two weeks.


Dye your hair yourself every other month and then go to the salon every two months for a cut and a treat. If you spend that much on haircuts, you probably buy expensive shampoo and other goop for your hair. Switch to supermarket value brands.

Think about whether you have a friend who could walk your dog every now and then. If you don't like to ask a favour, maybe someone would want to do it in return for something you can offer - maybe your lodger could even do it once or twice a week… I don't know where you live but many areas offer alternative currency schemes and dog walking is the type of thing that people with time do on these schemes.

CrossFit_Duck

Unfortunately, I cannot move any of my debts. I am over extended and all my cards are maxed out. My best bet would be to pay one off and see if they offer a deal after that for a balance transfer from one of the others....?


The lodger is moving in at the end of the month and I will discuss with him about cleaning / dog walking.


Reducing the cleaning to every second week sounds like a good way forward!


I have been using the same salon for 9 years so I've just gotten used to it but I will find a cheaper alternative - there must be one around here!


I buy a salon size L'Oreal shampoo for £15. It lasts me 3 months. Apart from that and conditioner, no other products are used :rotfl: