feeling stressed

Lewisjones

First time here folks, long time lurker though. Having read a lot of DFW posts, I know that the amount of debt I'm in is nothing compared to some people but I just still can't seem to get rid of it and it is making me stressed day-to-day.

SOA

Monthly income after tax 1300
Partners monthly income 1100
Total monthly income 2400

Rent 595
Council tax 110
Electricity 35
Gas 37
Water Rates 35
Telephone (land line) 18
Mobile phone 86
TV Licence 12
Internet services 18
Groceries etc. 200
Clothing 5
Petrol/diesel 250
Medical (prescriptions, dentists, opticians etc.) 2
Presents (birthday, christmas etc.) 10
Entertainment 100
Smoking 50
Car Lease Payment 211
Bank Fee / Insurance 25
Total monthly expenses 1799

Sofa 1105.96 Min: £48
Credit Card 2513 70 Min: £70
Business Card 735 Min: £35
Loan 1276 Min:£194
Unsecured Debt totals: 5629.96 Monthly: 347

Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 1,799
Available for debt repayments........... 601
Monthly UNsecured debt repayments....... 347
Amount left after debt repayments....... 254

Info about SOA:

Ok, so a few things to clear up:

We rarely buy clothing, and I'm the only one who visits the dentist yearly, I don't buy prescriptions etc ever.

I lease a car through my business, hence no road tax etc.

I am self-employed so the income figure I gave is on a quiet month, it regularly goes up from that and never goes lower than that. My partner works shift patterns, so again that was a reserved figure I have provided. It usually is above this, and again never goes below this.

I am a hair stylist so we don't pay for haircuts obviously.

We have free view so nothing for tv.

Rent, we have just moved into a more affluent area and unfortunately with that comes the higher rent. I can appreciate that some people wouldn't find that high for rent, but from where we were before, its a big difference. We are happy here though so do not think we would move, however we are in a 12 month lease so would have to wait a year anyway before we did.

Internet, we are stuck in a contract. Same for mobile phones (the amount is for 2), so nothing we can do there.

Holiday and emergency funds, we just can't seem to get anything saved

I have insurance with my bank which gives me a lot of things like worldwide travel insurance, mobile phone insurance, house insurance, breakdown cover etc. so one monthly payment instead of a few different policies.

Petrol is quite high because of commuting. We are looking to change that, i.e. looking for new job for OH. Applied for one close by so hopefully fingers crossed.

PHEW!

I just get fed up of feeling like my debt is not going down. I know it is, but seems to just take forever. My problem is I have stopped making overpayments to the credit cards, because I am living week-to-week (we are both paid weekly). I should really pay the odd £10 off of debts but I for some reason always think whats the point it won't make a chunk in it. I need a lightbulb moment but I just haven't had one yet!

Two points about the debt:

I know the sofa payment is a debt, but I don't class it as a debt, so I don't see it as being in my 'debt free' plan. I am quite happy to pay that over the next two years remaining on it.

Also, the loan I took out was for debt consolidation but of course, that never works does it! You always build it back up again You live and learn, I guess.

Any help would be appreciated. Thanks

Pixie5740

Have you tried using a snowball calculator to see how much those overpayments make to your overall debt. You might be surprised at just how much £10 here and there can really make a difference.

http://www.whatsthecost.com/snowball.aspx

Do you really have £254 left every month? If not, a spending diary might help you discover where that money is really going.

bambos

I agree with Pixie and think it might be well worth looking at the snowball calculator if it gives you nothing more than some motivation it's worth the effort.

Debt can be cleared but it's a tough old journey as I well know. Is there any possibility of you renting a room temporarily instead of a property as this would reduce your costs, even moving in with family for a short time would free up some finances to clear the debt.

Can you bike to work/car share do you have an emergency fund? I think your entertainment budget needs shelving until you can afford it, that would free up £100.

Can you give the sofa back? I know you said you are happy to keep paying it but you need that extra money, it's a luxuary you can't afford.

Smoking is also a cost which you could do without (I cut it out when I was in debt so it can be done)

Are you paying your council tax over 10 or 12 months?

Can you change your car lease and get a smaller/cheaper model?

Do you have children? If not your food budget is high as ours is that for two adults, two children, one dog and one rabbit

Drop the clothing budget as that's unaffordable at the moment. I would instead put this £5 into an emergency fund.

Cancel your landline as you have mobile contacts you are tied into so use that instead.

rockm87

for smoking my other half swears by Allen Carr videos.

He also has an app (sorry dont know its name) where it shows you how much money you have saved since your last cigarrette. great motivation!