My Kick Up the backside Diary...............

aprilshower

Hi Everybody

Well I have decided that I need a debt diary to keep me focused and for all the help and support you guys give everybody.

Over the past month I have been reading all the different diaries and it has made me realise that being focused and organised is what I really need with some support put into the mix as well.

This is my story. I am 47 years old. I have two children, well I should not say children as one is 22 years old and one is 15 years old. I own my own house with no mortgage at all.

I run my own business so I don't really have a fixed income as such as it really depends on how good or bad the business is from week to week.

I have £25806 of debt on credit cards. It was £27233 at the end of Feb when I had my LBM. So I have started but I do need to keep this going.

Firstly, after reading a lot of diaries on this thread I realised that you need to know why you have ended up with this debt to stop it happening again. When I looked back there was three reasons for the debt:

1. I had to have some emergency work done on the house and this was put on my credit card as I had no savings to pay for it.

2. My tax bill was higher than I expected so that was put on my credit card. This year I have completed my end of year accounts and now put an amount into another account so I know it will be covered when I have to pay it.

3. We went on holiday and that was put onto a credit card. I know I should have saved up and then gone, which is what I intend to do from now on.

I am going to do a financial statement because I really do need one as I really do not know what I spend on food, petrol, entertainment etc, which is crazy.

So hence the reason why I decided to do a diary as I think it will make me a lot more organised with my money and what we are doing with it.

Any help and support would be great when I put up my statement.

Take care

Aprilshower

aprilshower

Financial Statement:


Household Information[/b]\
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
\
Monthly Income Details\
Monthly income after tax................ 1750
Partners monthly income after tax....... 0
Benefits................................ 89.70
Other income............................ 0
Total monthly income.................... 1839.7
\
Monthly Expense Details\
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 105
Electricity............................. 90.00
Gas..................................... 55.00
Oil.....................................0
Water rates............................. 55
Telephone (land line)................... 20
Mobile phone............................ 7.5
TV Licence.............................. 12.12
Satellite/Cable TV...................... 25
Internet Services....................... 24
Groceries etc. ......................... 300
Clothing................................ 50
Petrol/diesel........................... 70
Road tax................................ 10
Car Insurance........................... 19
Car maintenance (including MOT).........0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 7.5
Contents insurance...................... 7.5
Life assurance ......................... 0
Other insurance......................... 0\
Presents (birthday, christmas etc)...... 80
Sons lunch money ....................60.00
Haircuts................................ 20
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1097.62

Assets\
Cash.................................... 0\
House value (Gross).....................200000
Shares and bonds........................ 0\
Car(s).................................. 4500\
Other assets............................ 0\
Total Assets............................ 204,500\
\
No Secured nor Hire Purchase Debts\
\
Unsecured Debts\
Description....................Debt......Monthly.. .APR\
Cc. Virgin.....................13400.....200..........0
CC Natwest ................... 2838.....70 ..........?
CC Barclays ................... 4610....100..........0
CC Capital One..................4958....150..........?
Total unsecured debts........25806....520
\
\
Monthly Budget Summary\
Total monthly income.................... 1,839.70
Expenses (including HP & secured debts). 1097.62
Available for debt repayments........... 742.08
Monthly UNsecured debt repayments....... 520
Amount left after debt repayments....... 222.08
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 204500
Total HP & Secured debt................. -0\
Total Unsecured debt.................... 25806
Net Assets.............................. 178,694


I have had to guess the amount of food and petrol as I really do not have an idea of what I spend. I know it is really bad and is going to change.

I have also put in an average earning figure but this could change from month to month.

Take care

Aprilshower

Sellurgranny

Hi Aprilshower just wanted to welcome you to the diaries and wish you lots of DFW luck on your journey. There's lots of inspirational stories to read through on here. I never really comment on people's SOA but I'm sure there'll be someone along soon with good advice.

Knowing where you're money is going each month is definitely the most important thing to start with and then looking where savings can be made. I'vv2e found that when i cant tighten my belt any further i have had to look at extra ways to bring in money such as the good old bay of E.

Will subscribe to cheer you along from the sidelinessidelines.surg. x

aprilshower

Hi

Thank you so much for your help. I think after sitting and starting this diary my head seemed to be a lot more free to think about it rather than just having the cc debt and really not knowing the amount.

I think I have decided to do one thing at a time. So this week I have been and taken £35 for my bank account. This is sat in my bag and if I go shopping the amount will come out of that.

So we have a budget of £35 a week to spend on food. So this means I will have to use up the stocks that are in the fridge, freezer and cupboards, but isn't that what I bought it for not to sit there until it is out of date and then put in the bin.

This has made me be a lot more organised which is great and should save me a lot of cash.

The next thing I need to do is sort out the interest rates on the cc and if they are adding interest move the amount to another card.

I find if I have a list as long as the UK I do nothing at all but with two things to work at I will achieve both of them.

Take care everybody

Aprilshower

aprilshower

Hi Everybody

I spent a few hours yesterday going through my credit cards.

I have moved some balances to 0% rates and also made sure a direct debit is set up for amounts more than the minimum payment so each month I will be eating into the outstanding balance. I also now know the dates when all the 0% offers end on the different card.

I feel I have moved forward and can therefore be in more control and organised.

I also intend to use any money left over at the end of the month to pay further credit card payments.

On the food front. I have spend £9.85 out of my £35 allowance for this week. This is great for me because I would have usually spent over £100 at the weekend.

Also no credit card spending at all, which is also great for me.

Take care everybody and have a nice day.

Aprilshower

117pauline

You have already done really well already.

Could I suggest that you also keep a spending diary/journal to help show you how much and when you spend - I am quite an emotional spender but now find it easier to Not Buy It (thread on Old Style)

Are your children also on board with this and know why you are doing it? It will help/hinder your plans depending on their response.

At the beginning of 2014 I thought I knew exactly what I spent but I was sadly mistaken. This year has been much easier because my budget was based on the 2014 info. But I had lost track of food and casual spending so went back to recording everything. It doesn't take long to do each day but somehow focuses the mind!

Good luck

aprilshower

Hi

Thank you for your help and ideas.

To be honest my eldest now has her own money and as long as there is some bits in the fridge when she needs them she is happy. I have actually spoken to her about it and said this is the time to sort this out and she totally agrees with it.

My other daughter she does not ask for much at all apart from the old item of clothing which really isn't a problem.

As far as the food budget is concerned I have found that up to now nobody has noticed any change at all. Apart from the dustbin as I did dispose of a lot of food that had not been eaten.

Since I started this diary it is as if I have started to sort it all out and really have become more organised.For example, last week I really would not have sat down and gone through each credit card found out the balance, promotions rate and expiry date of the promotional rate. But, this has given me something to work with, as I am now playing less interest than I was last week and also I know which card to pay off first.

Now that is sorted I think I will start a spending diary because the more you know about where your money is going the faster you can sort out the problem.

Do you do your on a spread sheet or just in a little book? I was just wondering what would be best.

Take care

Aprilshower

117pauline

I am glad your girls are with you!

Well....... I record everything on a spreadsheet - one for my spends/income and one for our household bills.

I find actually itemising each purchase makes me more accountable to myself. My partner has no worries about how, when or what I spend as he supports me at the moment.

We having been cutting down on the extras and goodies as we are having several little breaks away this year. It seems easier to cut back if you know where it is going and also when the sun is shining!

Also allow something for the emergency fund otherwise you will end up using the cards again

I am menu planning and emptying my cupboards and freezers too so that is helping too. As I am not particularly well, I am trying to prepare meals the day before in case I am not feeling like cooking. It prevents the dreaded takeaways.

aprilshower

Thank you so much for all your advice. I am going to set up a spending spreadsheet because I do think it is a really good idea.

I have also started meal planning and I really do and try and do it for a few days so I can get organised.

I hope you start to feel better soon and hope you enjoy your breaks, it is always nice to go away.

Take care and look after yourself

Aprilshower

aprilshower

H Everybody

I managed to get to get to the end of the week without going over my £35 a week shopping budget which is great as I would usually spend about £100 to £125 a week. The freezer is still full so I am going to do the same again next week. The daft thing is nobody has noticed a difference in the house.

My goals for next week are:

1. Set up a spending spreadsheet.

2. Sort out and put some stuff on eBay.

3. If possible have a sort out and so to the car boot sale at the
weekend if the weather is nice.

4. Keep up with the shopping budget and using the stuff in the
freezer.

Take care everybody

Aprilshower

Bobarella

Good luck with your goals April. Sounds like you know why you are in this position now so that's good.

Bob