We will be debt free and happy with our allotment!!!

Mrs_Toast

This is my third diary but hopefully my last debt free wannabee diary! I thought it was best to start a new one especially after reading my last one today. Our situation was so different in 2012, not including only having one child so I wanted to start afresh.


Here is our story. I'm 32, married to the love of my life and have two gorgeous children, 5 and 20 months. I am a SAHM which is probably a lot to do with how we got into this situation but I don't regret it for a minute. We also haven't really changed our spending since having our daughter in 2013 which has definitely exasperated the situation. We still live in our first house which was bought just after we got married nearly 10 years ago and would love to be able to give our kids a garden.


Anyway, enough of how we got here, I need to concentrate on how as a family we can become debt free and reach our dreams together. We have £6773.53 of debt on 2 credit cards and a tax bill and want to be debt free by July 2017. We have just gained an amazing allotment that we've always wanted so I'm hoping this can help us with our journey even if it's just to occupy us for free. Here are our short term and long term goals!!


Short Term


* Make it to payday on 28th April without withdrawing anymore from the credit cards.
* Search for cheaper gas, electric, TV and mobile phones.
* Cancel all direct debits that aren't needed and contact Hastings about possible back pay.
* Save £80 for hen weekend in May
* Set up a manageable budget/debt repayment/savings plan.


Long Term


* Pay off/Set aside tax debt which is currently at £683 by Xmas 2015
* Pay off 50% of MBNA CC by July 2016 and hopefully all by Xmas 2017 but target is July 2017.


I would love to hear from any other one income families especially how they entertain their kids without getting into debt and feeling guilty about it

andyfromotley

Mrs_Toast wrote: »

We also haven't really changed our spending since having our daughter in 2013 which has definitely exasperated the situation.

How are you going to tackle this?

Mrs_Toast

Hi Andyfromotley, thanks for stopping by.


That is a very good question and hopefully one I can plan out tonight. I definitely need to be more organised and prepared for upcoming spends such as birthdays and school holidays. I also know I can do a lot more in the kitchen and cut down on my food bill by hitting Waitrose reduced counters at the right time

Bobarella

I think I remember you from before Mrs Toast. Good to see you back again.
I'm sure others will say the same thing but have you filled in a statement of affairs on here before? That would be good to see if anyone can make any budget cuts on your main expenditure items.
Bob

Mrs_Toast

Hi Bobarella, I will definitely do a new SOA this evening and hopefully a manageable budget. Nice to see you again x

immoral_angeluk

Sounds like a good plan to me. Good luck!

Silian

Hey Mrs Toast

Do you really pay for a mortgage and rent each month, or is that a mmistake?

Mrs_Toast

immoral_angeluk hi and thanks.


Here is my SOA at the moment. I'm sure we spend even more on entertainment and groceries so this is the first area to work on. My husband also has a motorbike so the insurance/tax include those costs as well. I also need to sort out the credit cards pretty sharpish so we only have 1 and it's interest free for as long as possible. I may try and get one with cashback. We also need to change gas and electricity supplier. If anybody can point anything else out other than budgeting for haircuts, clothes etc, then I'd appreciate it.


My next job is to budget for May which unfortunately includes a hen/stag weekend for both DH and I. It's DH's brother and I've been invited to the hen weekend and as we can't afford to go to the wedding in Rhodes at the end of May, we really have no choice but to go. The hen weekend is at a spa so I'm not really complaining as it'll be child free . In May there is also a trip to my Dad's in Nottingham, at least 7 birthdays and May half term so lots to budget for. Wish me luck!

Mrs_Toast

Silian, yes that is a mistake I will change it now

Mrs_Toast

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1972
Benefits................................ 134
Other income............................ 0
Total monthly income.................... 2106
Monthly Expense Details
Mortgage................................ 379.8
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 57.44
Gas..................................... 62.72
Oil..................................... 0
Water rates............................. 22.07
Telephone (land line)................... 0
Mobile phone............................ 80
TV Licence.............................. 12.12
Satellite/Cable TV...................... 34.69
Internet Services....................... 5.99
Groceries etc. ......................... 400
Clothing................................ 10
Petrol/diesel........................... 120
Road tax................................ 31.93
Car Insurance........................... 63.07
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 210
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 25.7
Contents insurance...................... 0
Life assurance ......................... 8.9
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 250
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1881.43

Assets
Cash.................................... 0
House value (Gross)..................... 98000
Shares and bonds........................ 0
Car(s).................................. 7800
Other assets............................ 0
Total Assets............................ 105800

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 94000....(379.8)....2.5
Total secured & HP debts...... 94000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................5681.74...72........18.9
Barclaycard....................5.79......5.........18.9
HMRC...........................686.......50........0
Total unsecured debts..........6373.53...127.......-

Monthly Budget Summary
Total monthly income.................... 2,106
Expenses (including HP & secured debts). 1,881.43
Available for debt repayments........... 224.57
Monthly UNsecured debt repayments....... 127

Mrs_Toast

That's better but where is this £224 it says I have probably at the local shop and takeaway oh well!