Soa help!

rising_from_the_ashes

Snowballing is when you throw extra money at debts to clear them quicker - if you do it properly, it can wipe years off debts! (eg throw everything at the debt(s) with really high interest rates first)

http://www.stoozing.com/calculator/snowball-calculator.php

StrugglingYouth

Princess2790 wrote: »

I don't normally save £50 a month for car maintainance. It's normally £20 but I had an emergency and had to borrow some so have had to up it just until July to cover the MOT

I have a 1.4 peugeot 207

Is it worth insuring as fully comprehensive? Depending on its age ofcourse. Potentially the insurers would write the car off after an accident. Id see how much cheaper TPF&T is for you. Also try and buy it via a cashback website and see if that returns some money to you.

sourcrates

StrugglingYouth wrote: »

Is it worth insuring as fully comprehensive? Depending on its age ofcourse. Potentially the insurers would write the car off after an accident. Id see how much cheaper TPF&T is for you. Also try and buy it via a cashback website and see if that returns some money to you.

Thing is, fully comp is sometimes cheaper than 3rd party, depends on your age, and the car of course.

Princess2790

StrugglingYouth wrote: »

Is it worth insuring as fully comprehensive? Depending on its age ofcourse. Potentially the insurers would write the car off after an accident. Id see how much cheaper TPF&T is for you. Also try and buy it via a cashback website and see if that returns some money to you.

I have to have it on Fully Comp as its a finance car which is still being paid for...I just don't pay the finance, My parents do as a Christmas Present

[Deleted User]

Princess2790 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2 (I have nothing to do with partners money or car)

Monthly Income Details
Monthly income after tax................ 1200 (overtime is guaranteed at least 1 day a week so very rarely come home with this less)
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1200

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 35 (will be getting rid of this as soon as cheap enough to cancel, 10 months left)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150 - If this is for 1 person, then it's quite high.
Clothing................................ 0 - Never?
Petrol/diesel........................... 200
Road tax................................ 0
Car Insurance........................... 58 - This is almost £700pa, which seems high.
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 - You need this.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0 - Never?
Entertainment........................... 20
Holiday................................. 0 - Not even days out?
Emergency fund.......................... 50
Total monthly expenses.................. 943


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0 - 2 cars in the house, worth absolutely nothing?
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One CC.................1000......35........0
Aqua CC........................700.......10........0
Littlewoods....................425.......48........0 (this will be paid off totally in 8 months max)
Loan...........................750.......95........0 (this will be paid off totally in 8 months max)
New Look SC....................98........5.........0
Overdraft......................1230......31........0
Total unsecured debts..........4203......224.......-


Monthly Budget Summary
Total monthly income.................... 1,200
Expenses (including HP & secured debts). 943
Available for debt repayments........... 257
Monthly UNsecured debt repayments....... 224
Amount left after debt repayments....... 33

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,203
Net Assets.............................. -4,203

Anyone got any ideas?

Are all the debts really at 0%?

enjoyyourshoes

The issue with SOA is its as good as the data you put in which may be factual on certain costs but may also ignore many other costs that one dismisses, ignores or doesn't see the relevance of. For eg, fags, drinks, chocolate, drinks at coffee bars, lunch at work, snacks, magazines (you get my drift)


Debt creeps up on one, as you spend the odd £1 here and there and then another £1 here and there etc.


Its often these day to day little by little spends that push you over into spending more every month than you bring in , QED credit card debt.


Spending on credit also fuels the cycle, do you pay for your insurance up front? or do you pay monthly (incurring monthly debt charges?)


You and your partner could sit down and work out what your objectives are, how joint finances can support these and what you need to do day by day to stop the seeping of cash from Mr & Mrs PLC.


Its a painful, long and tireless process and one you have to keep revisiting.

Princess2790

Bedsit_Bob wrote: »

Are all the debts really at 0%?

I have no clue as to the APR of my debts to be frankly honest.

The cars are not assets to us as they're both on finance.
The groceries I pay for both of us as OH pays other bills, this equals out.
OH pays contents insurance.
Car Insurance is cheapest Fully Comp (must have as car is Finance) although due for renewal in May.
My friends training to be a hairdresser so get my hair cut for free
OH pays for days out while I'm trying to get straight

Princess2790

enjoyyourshoes wrote: »

The issue with SOA is its as good as the data you put in which may be factual on certain costs but may also ignore many other costs that one dismisses, ignores or doesn't see the relevance of. For eg, fags, drinks, chocolate, drinks at coffee bars, lunch at work, snacks, magazines (you get my drift)


Debt creeps up on one, as you spend the odd £1 here and there and then another £1 here and there etc.


Its often these day to day little by little spends that push you over into spending more every month than you bring in , QED credit card debt.


Spending on credit also fuels the cycle, do you pay for your insurance up front? or do you pay monthly (incurring monthly debt charges?)


You and your partner could sit down and work out what your objectives are, how joint finances can support these and what you need to do day by day to stop the seeping of cash from Mr & Mrs PLC.


Its a painful, long and tireless process and one you have to keep revisiting.

I pay monthly for Insurance as just cannot afford it outright, it's around £700 a year!

My OH knows I have debt but he doesn't know the full extent, I'm scared of his reaction if he knows...probably fully supportive but it's scary :o

rising_from_the_ashes

You need to find out the APRs of your debts ....

If your car insurance is due in May, then it should be possible to do a couple of quotes to get an idea of what it will be at renewal time - that could help a fair bit

How old is the car / how long left on finance?

it's very nice of your parents but TBH you'd probably have been better off with a cheap run around for 2 or 3 years until you'd built up NCD etc .... it's nice having a newer car - not so nice if you can't afford to run it!

enjoyyourshoes

I know sharing the news on debts is really hard thing, but you need to be honest with each other.


If you can be honest then life can move forward, agree joint objectives and then work out how to achieve these within your financial envelope.


If you can both stop the 'merry go round' (using credit to get through each month) and start saving (I know its boring but getting compound interest on savings instead of paying compound interest on your debts is the way out) , then you can chip away at the debts and save for the inevitable annual, 1/2 yearly and bi monthly expenses (and not use monthly payments (insurances and the like))


Have you calculated the total credit charge for your car insurance ? (its rhetorical you don't need to post the answer)