debt help

Toasterinbath

Hello there,I'm not very good at talking so I'll keep this short and sweet.Basically I just can't see an end and feel like I'm going to be paying debts off forever.o need help maximising my debt payments but I'm absolutely useless with money me and my other half had a bad few years in and out of work which is why we have the debt, luckily were both in secure jobs now so no money coming in is not an issue now I'll post my details and any help would be appreciated


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.................... 1

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1600

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 123
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 26
Gas..................................... 26
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 23
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 120
Road tax................................ 15
Car Insurance........................... 160
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..................... 13
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 896


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 11000........(160)........0
Hire Purchase (HP) debt ...... 4300.....(123)......0
Total secured & HP debts...... 4300......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................3900......100.......0
overdraft......................4400......0.........0
Total unsecured debts..........8300......100.......-

Tixy

Hi

You've SoA doesn't show the summary at the bottom, but it looks like you have
Income £1600
Outgoings £896
Minimum debt repayments £100
So surplus of £604 a month.

Do you have the £600 a month surplus? and if so are you putting this towards your debts each month?

Are your credit card and overdraft actually interest free? if not worth finding out the interest rates (or charges if the overdraft is daily charges rather than interest).

I would guess in reality you don't have the £600 as there appears to be items that you haven't budgeted for (e.g nothing for car maintenance / servicing etc, nothing for presents/entertainment/clothing which is hard to sustain long term).

Hopefully though if you do have maybe £500 to put towards your debts (the £100 listed and say £400 of the £604 surplus) then you should be able to make quite quick inroads to your debt.

Maybe have a look at a snowball calculator to see how quickly you should be able to clear those debts.

andyfromotley

Toasterinbath wrote: »

Hello there,I'm not very good at talking so I'll keep this short and sweet.Basically I just can't see an end and feel like I'm going to be paying debts off forever.o need help maximising my debt payments but I'm absolutely useless with money me and my other half had a bad few years in and out of work which is why we have the debt, luckily were both in secure jobs now so no money coming in is not an issue now I'll post my details and any help would be appreciated


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.................... 1

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1600

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 123
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 26
Gas..................................... 26
Oil..................................... 0
Water rates............................. 50 (this seems quite high, can you go on a meter?)
Telephone (land line)................... 0
Mobile phone............................ 50 (what!!!! way too high get a sim only. £15pm MAX)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 23 (high, use the best buy on MSE and you could easily half this/, i assume it includes landline)
Groceries etc. ......................... 200 (is this all or half? If it is all well done. If it is half then you could easily lob £50 off this. Meal plan, buy own brands, change supermarket)
Clothing................................ 0 (never?)
Petrol/diesel........................... 120
Road tax................................ 15
Car Insurance........................... 160 (per month?? wow that is a lot! Drive it down at renewal, consider swapping car for low insurance model)
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..................... 13
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 (really?)
Haircuts................................ 0 (?)
Entertainment........................... 0 Nothing, at all? ever?
Holiday................................. 0
Emergency fund.......................... 0 (you need to save an emergency fund. It stops you getting into more debt when then it hitts the fan. try to put £50 pm away, stop when you have 1K)
Total monthly expenses.................. 896


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 11000........(160)........0
Hire Purchase (HP) debt ...... 4300.....(123)......0
Total secured & HP debts...... 4300......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................3900......100.......0
overdraft......................4400......0.........0
Total unsecured debts..........8300......100.......-

Hi,

its tricky to work out an soa when you have only put your income and expenditure not your partners as its unclear if some things are missing or partner is paying them.

I have made some suggestions on your SOA, but savings could be made but you have missed outgoings in other areas so it should even out.

On your figures you have £896 + £100 credit card payment = £996 you bring in £1600 so in theory have £604 left for debt repayment. This is great news. Throw every penny at your unsecured debt and it will be gone in 15 months or so. You can then start on your secured debt.

I'm guessing this isnt really the case though? That in reality you feel like you have no money left over to throw at debt? In which case you have a budgeting problem. You need an effective budget. To maximise the use of every penny that you get. I use YNAB but there are loads of others. Have a look around and find one that works for you. Then work it, hard!

On paper you are in a pretty good position and you certainly will not be paying off debts forever. You may want to adjust your SOA to make it more accurate and to include APR's as there is usually money to be saved there, and you can work out which debt to pay off first. HTH.