Help me get out of debt quicker!

sheilatakeabow

Hi wonderful people!

I attach my SOA for your savage dissection - help to get me out of debt quicker! The amounts are all what I pay towards our household upkeep. My husband pays £525 in rent and I pay £125 plus all the bills as I earn more than he does.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1439
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1439
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 125
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 220
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 7
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 80
Holiday................................. 75
Emergency fund.......................... 25
Appliance rental........................ 57
Total monthly expenses.................. 937

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................283.......15........0
Halifax overdraft 1............1726......30........0
Halifax overdraft 2............649.......10........0
Anglian Water..................126.......0.........0
EDF Energy.....................160.......0.........0
Mum............................600.......100.......0
Vanquis........................2816......50........0
Quick Quid.....................660.......10........0
MYJAR..........................162.......20........0
LPF Littlewoods................247.......15........0
Total unsecured debts..........7429......250.......-

Monthly Budget Summary
Total monthly income.................... 1,439
Expenses (including HP & secured debts). 937
Available for debt repayments........... 502
Monthly UNsecured debt repayments....... 250
Amount left after debt repayments....... 252
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,429
Net Assets.............................. -7,429

MallyGirl

showing the APRs will help people to give appropriate advice.
For now - what appliances do you rent for £700 per year? Do you need them?
I would stop buying clothes and thinking about spending on entertainment / holidays till you get rid of some of those high interest debts. You could probably trim groceries. Do you not have any travel costs for work?

Reya

Hi, Sheila (love the username!) and welcome

You've split this SoA up into your payments only. Can you tell us why? If the debt is in your name only, then I can understand why you want to do this, but you're a partnership and this is something you should be tackling together ("for better or worse" and all that; and this definitely is the "worse" bit of that vow!)

I'm going to ask a personal question here, so please don't be offended, but: does your husband know about this debt or are you trying to pay it off without him finding out? If he doesn't know, then some of the cutbacks people here will suggest are going to make him ask questions like, "What do you mean, we can't have a takeaway tonight?!"

It's difficult to make sense of a split SoA like this, as we could be saying things like, "XYZ is a bit low" when, in fact, your DH pays some of it. However, from what I can see:

Groceries: £55 a week is pretty good for two of you, but can be reduced with some effort. Meal planning (check the Old Style board for help), batch cooking at the weekend (home made ready meals; much better for you than pre-packed, additive-filled stuff!), packed lunches for work, making use of cheap stores like Aldi & Lidl, going down a brand when you shop, stocking up on things like sauces and teabags via Approved Food, etc. Lots of ways to pare this down!

Entertainment: £80 per month. What does this go on? Cutting back on that and looking for free things to do would be a good start.

Holiday: Can you really afford this at the moment? If you looked for free entertainment and cut out the holiday savings (assuming you've not already put down a deposit) you'd have an extra £155 a month to throw at the debt. If you're used to a yearly holiday (I know I was, once!) then maybe have a weekend break instead this year, or try a cheap 'newspaper deal' type holiday.

Appliance rental: What's this for? In the long run, renting is always more expensive than buying outright when it comes to electrical appliances and white goods.

Clothing: Is this necessary every single month? can you cut it down, or not buy anything new for a few months, to help you clear one of the smaller debts?

I very much doubt that all of your debts are at 0% APR (especially MYJAR and Quick Quid; if so, they're the first PDL companies I've seen that offer loans at 0%!). Dig out those APRs and take a look at them. The higher the APR, the more interest you'll be paying in the long run, so aim to snowball the debts, starting with the high APR ones.

The Snowball Calculator is a great tool, so once you have the APRs, enter the info here and it'll show you the best way to pay things off.

Amount left after debt repayments = £252. Do you really have this much left at the end of the month, or is there more month than there is money? Keep a spending diary for every single thing (the odd extra pint of milk, a newspaper, a coffee on the way to work, etc) and you'll soon see where this is going.

I strongly suggest using that spare £252 (if you actually do have it) to pay off MYJAR this month, then tackle the Quick Quid loan as soon as you can after that. The next to tumble should probably be Vanquis, as that usually has a killer-high APR.

Good luck, and keep posting! Many MSErs find that, if they stop visiting the board for any length of time, their good intentions begin to slip, so keep us up-to-date with how you're doing

sheilatakeabow

Reya wrote: »

Hi, Sheila (love the username!) (Morrissey says thank you!) and welcome

You've split this SoA up into your payments only. Can you tell us why? If the debt is in your name only, then I can understand why you want to do this, but you're a partnership and this is something you should be tackling together ("for better or worse" and all that; and this definitely is the "worse" bit of that vow!)

These debts are in my name. Husband has his own. I'll add a joint SOA in a mo as that might be more useful!

I'm going to ask a personal question here, so please don't be offended, but: does your husband know about this debt or are you trying to pay it off without him finding out? If he doesn't know, then some of the cutbacks people here will suggest are going to make him ask questions like, "What do you mean, we can't have a takeaway tonight?!"

Yep, husband knows about debts. He has his own and earns a lot less then I do so I'd feel bad asking him to contribute to my debts.

It's difficult to make sense of a split SoA like this, as we could be saying things like, "XYZ is a bit low" when, in fact, your DH pays some of it. However, from what I can see:

Groceries: £55 a week is pretty good for two of you, but can be reduced with some effort. Meal planning (check the Old Style board for help), batch cooking at the weekend (home made ready meals; much better for you than pre-packed, additive-filled stuff!), packed lunches for work, making use of cheap stores like Aldi & Lidl, going down a brand when you shop, stocking up on things like sauces and teabags via Approved Food, etc. Lots of ways to pare this down!

We've just moved house and we're a lot closer to the local Aldi so this I am definitely going to investigate! I try and cook simple healthy stuff that can be turned into leftovers but I am also a sucker for silly things like chicken dippers and chips!

Entertainment: £80 per month. What does this go on? Cutting back on that and looking for free things to do would be a good start.

Pub quiz a couple of times a month, meals out, bottles of wine (I spot a theme )

Holiday: Can you really afford this at the moment? If you looked for free entertainment and cut out the holiday savings (assuming you've not already put down a deposit) you'd have an extra £155 a month to throw at the debt. If you're used to a yearly holiday (I know I was, once!) then maybe have a weekend break instead this year, or try a cheap 'newspaper deal' type holiday.

Its out first wedding anniversary weekend trip to Scotland. I'm trying to save my half of the hotel and train fees and some spending money - all in all £380. That is expensive for us (I picked a pricey hotel as a treat as we NEVER stay in nice hotels) but generally we don't go on holiday. We have overnight stays a couple of times a year.

Appliance rental: What's this for? In the long run, renting is always more expensive than buying outright when it comes to electrical appliances and white goods.

We have a fridge freezer and washing machine. I seem to never be able to save up for one or the other. This is proably because I choose to spend the money I could save on "fun" things rather than "sensible" things.

Clothing: Is this necessary every single month? can you cut it down, or not buy anything new for a few months, to help you clear one of the smaller debts?

Not at all necessary aside from the odd few bits here and there. I just like clothes But yes, I could definately stop it for a while

I very much doubt that all of your debts are at 0% APR (especially MYJAR and Quick Quid; if so, they're the first PDL companies I've seen that offer loans at 0%!). Dig out those APRs and take a look at them. The higher the APR, the more interest you'll be paying in the long run, so aim to snowball the debts, starting with the high APR ones.

I started a self-managed DMP in December so have managed to get all my creditors to stop interest and charges. :j

The Snowball Calculator is a great tool, so once you have the APRs, enter the info here and it'll show you the best way to pay things off.

I flippin' love the snowball calculator. Last time I did it I was on for two years - May 2017.

Amount left after debt repayments = £252. Do you really have this much left at the end of the month, or is there more month than there is money? Keep a spending diary for every single thing (the odd extra pint of milk, a newspaper, a coffee on the way to work, etc) and you'll soon see where this is going.

Nah, I never have it leftover. I get to the week before payday see a couple of hundred quid in the bank and spend it like a lunatic.

I strongly suggest using that spare £252 (if you actually do have it) to pay off MYJAR this month, then tackle the Quick Quid loan as soon as you can after that. The next to tumble should probably be Vanquis, as that usually has a killer-high APR.

Good luck, and keep posting! Many MSErs find that, if they stop visiting the board for any length of time, their good intentions begin to slip, so keep us up-to-date with how you're doing

Thank you! What a lovely thought out reply!

sheilatakeabow

Here is our joint SOA.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1439
Partners monthly income after tax....... 1107
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2546
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 36
Telephone (land line)................... 0
Mobile phone............................ 42
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 220
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9
Pet insurance/vet bills................. 9
Buildings insurance..................... 0
Contents insurance...................... 7
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 120
Holiday................................. 150
Emergency fund.......................... 50
Appliance rental........................ 57
Total monthly expenses.................. 1653

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard (mine).............283.......15........0
Halifax overdraft 1............1726......30........0
Halifax overdraft 2............649.......10........0
Barclays overdraft.............2000......15........0
Barclaycard (husb's)...........4000......97........29.9
EDF Energy.....................160.......0.........0
Anglian Water..................126.......0.........0
Mum............................600.......100.......0
Vanquis........................2816......50........0
Quick Quid.....................660.......10........0
MYJAR..........................162.......20........0
LPF Littlewoods................247.......15........0
Total unsecured debts..........13429.....362.......-

Monthly Budget Summary
Total monthly income.................... 2,546
Expenses (including HP & secured debts). 1,653
Available for debt repayments........... 893
Monthly UNsecured debt repayments....... 362
Amount left after debt repayments....... 531
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -13,429
Net Assets.............................. -13,429

japmis

Reya wrote: »

Amount left after debt repayments = £252. Do you really have this much left at the end of the month, or is there more month than there is money? Keep a spending diary for every single thing (the odd extra pint of milk, a newspaper, a coffee on the way to work, etc) and you'll soon see where this is going.

When I started doing all this, I downloaded a few months worth of bank statements into excel and grouped everything into things like travel, hair, clothes, cat, bills, food :eek: it was hair raising; I had no idea how out of control my spending was. I've since become a born-again-saver through my love of all things YNAB (link in my signature) as I found spreadsheets just didn't work for me.

Good luck with debt busting :beer:

Reya

(Morrissey says thank you!)

Dear old Mozza! I knew I recognised it from somewhere!

These debts are in my name. Husband has his own. I'll add a joint SOA in a mo as that might be more useful!

Yep, husband knows about debts. He has his own and earns a lot less then I do so I'd feel bad asking him to contribute to my debts.

I'm going to suggest something here that you might want to discuss with hubby. Why not pool your finances and pool your debts, and tackle them both together, as a team? That way, neither of you feels guilty, and both of you can work towards clearing them double-quick. I can see that hubby has less debt than you do, and that may make you think it's unfair to ask him to help. But if you both get stuck in together, then [ insert one of those motivational poster quotes here ]

We've just moved house and we're a lot closer to the local Aldi so this I am definitely going to investigate! I try and cook simple healthy stuff that can be turned into leftovers but I am also a sucker for silly things like chicken dippers and chips!

http://secretsauce.co.uk/meat-poultry/chicken-recipes/oven-baked-chicken-dippers-and-potato-wedges/

If it's edible, there'll be a recipe online to make it yourself! Check out blogs such as Frugal Queen and A Girl Called Jack for cheap-n-cheerful recipes. Both are fabulous for wringing every last penny out of a weekly shop!

Pub quiz a couple of times a month, meals out, bottles of wine (I spot a theme )

Uh-huh, and so do I! Looking at the combined total you gave in your second SoA you're spending £1440 a year on those things. Time to start researching cheap and free fun things to do, methinks!

I started a self-managed DMP in December so have managed to get all my creditors to stop interest and charges.

Excellent news! Well done, you, for that!

Nah, I never have it leftover. I get to the week before payday see a couple of hundred quid in the bank and spend it like a lunatic.

I'm going to second japmis's suggestion of YNAB (You Need A Budget). It completely changes the way that you think about money, and lots of MSErs have managed to turn their debt around entirely (or saved more than they even thought possible) thanks to it. By asking you to "give every dollar (or pound, in our case) a job" it has you allocating all of your money into different categories, even that 'spare' stuff (that goes into a buffer). You then don't look at your bank balance when you're paying bills/shopping/eating out; instead, you look at what you have available to spend in the relevant category. In short: you don't see "spare money" in the bank that you can just go out and splurge. You budget for everything, including your buffer.

Example: Let's say you assigned £100 a month to the 'Entertainment' category, and you were planning a few nice meals out. But oops! Suddenly the car needs a repair costing £80 and you don't have the cash to hand! Your old way of doing things would likely have seen you putting that onto a credit card, but YNAB's third rule is to "roll with the punches". You look at your categories to see where you can pull that money from. You take the £80 from the 'Entertainment' category, so you cover the car repair (without using the credit card!) and you just have fish and chips with your remaining £20 Entertainment budget, rather than three or four nice restaurant meals. (And then, you assign a regular category for car repairs in YNAB, so you don't get caught out again!)

It really is an awesome bit of software. There's a free 34-day trial, and lots of helpful info out there. Time permitting, if you can attend some of the live webinars you may win a free copy (they give one away at the end of each webinar) but it's only about £26 if you buy through Steam, and well worth it.

Download YNAB here, and watch at least the "Getting Started" video here. This forum also has a YNAB support thread, where avid YNABbers will help you with any queries you have

joedenise

I'd also recommend YNAB. If you can't attend the live webinars they are all available on the website and on YouTube.

I've saved more money in the months since I started using it than I had in the previous year or more!

Denise

sheilatakeabow

Thank you!

I have tried YNAB before but jusy couldn't get to grips with it. I think its a mindset thing. At the moment I like having a nice big "leftover" column in my money spreadsheet. I have bills, debts, personal spends etc categories that get taken from my wage category and then I get a nice little pot called "leftover". I think I see it as a safety net and when tried YNAB I didn't know where to put this leftover amount. I was scared to pay it off debts because what if I needed to pay something else that month...do you see what I mean. I think I might have a play around with using my spreadsheet in a YNAB way (rather than shelling out just yet!) and allocating that leftover money to a specific pot.

Siamese

I'd suggest you add a 'going mad' pot to your budget - maybe £40 - that you can just blow at the end of the month.
Your husband is paying nearly 30% interest on the Barclaycard, so I'd target that one with the spare money. And then get him to remove it from his wallet and only use it in the direst emergency. Has he tried getting a 0% balance transfer? It could save you quite a bit.
When you've paid for the holiday you need to divert that £150 to saving to buy appliances, rather than renting them. This will free up £200 for savings and debt.
Finally - think how much spare money you'll have when all this is paid off. That thought should keep you going for a while

japmis

sheilatakeabow wrote: »

I have tried YNAB before but jusy couldn't get to grips with it. I think its a mindset thing. At the moment I like having a nice big "leftover" column in my money spreadsheet. I have bills, debts, personal spends etc categories that get taken from my wage category and then I get a nice little pot called "leftover". I think I see it as a safety net and when tried YNAB I didn't know where to put this leftover amount. I was scared to pay it off debts because what if I needed to pay something else that month...do you see what I mean. I think I might have a play around with using my spreadsheet in a YNAB way (rather than shelling out just yet!) and allocating that leftover money to a specific pot.

It took me MONTHS to get my head around YNAB; eventually the penny dropped after doing all the seminars and online courses etc. I had to unlearn everything from spreadsheets but it was worth it.