Time to sort this out

oak1981

Hello all
I was a member many moons ago and managed to get myself out of a tiny bit of debt in my twenties.

Well I am now in my thirties and obviously didn't learn my lesson as I have a large amount of debt now, I have completed my SOA below so let me know what im missing or what im over on.

I have buried my head long enough, that I even shocked myself with the interest rate of my loan 2 :eek: so that one is going to be the first to be worked on.

I have a rare day off work and I am already hunting around the house for items to go on ebay.

Roll on the debt free challenges

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2514
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2514

Monthly Expense Details
Mortgage................................ 599.8
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 88
Electricity............................. 30
Gas..................................... 20
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 13.5
Mobile phone............................ 20
TV Licence.............................. 12.13
Satellite/Cable TV...................... 20 (Contract ends Jan 2016)
Internet Services....................... 20
Groceries etc. ......................... 100
Clothing................................ 10
Petrol/diesel........................... 120
Road tax................................ 12.68
Car Insurance........................... 29.12
Car maintenance (including MOT)......... 29.16
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 16
Contents insurance...................... 9.16
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0 (Not added to this right now as have £2000 saved in emergency fund
Total monthly expenses.................. 1209.55


Assets
Cash.................................... 114
House value (Gross)..................... 115000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 3800 (This breaks down as £2000 emergency fund, £1200 in ISA, £600 approx in small valuables
Total Assets............................ 122914


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 105000...(599.8)....3.89
Total secured & HP debts...... 105000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan 1.........................8904.85...198.5.....5.2
Loan 2.........................7702.01...301.9.....15.0
Credit Card....................7408.8....185.2.....0
Owe Parents....................9635.06...0.........0
Total unsecured debts..........33650.72....685.60.....-!


Monthly Budget Summary
Total monthly income.................... 2,514.00
Expenses (including HP & secured debts). 1,209.55
Available for debt repayments........... 1,304.45
Monthly UNsecured debt repayments....... 685.60
Amount left after debt repayments....... 618.85

Personal Balance Sheet Summary
Total assets (things you own)........... 122,914
Total HP & Secured debt................. -105,000
Total Unsecured debt.................... -33,650.72
Net Assets.............................. -15,736.72

rockm87

Hi...and welcome back.

Have you thought about looking at a debt snowball to get it paid off?

http://www.whatsthecost.com/snowball.aspx

Tixy

Hi and welcome back

Your SoA looks pretty healthy (except for the debts). Although might be a bit tight in the presents/entertainment areas given the level of debt you have accumulated?
How long has the debt built up over?
How long have you had the £600 surplus? is it only recent? have you been putting it towards the debts or have you previously been spending it each month?

How long is the card at 0%?

oak1981

RockM87
Thanks for the debt snowball thing, I like that little tool, good to keep reworking the figures if I can squeeze a little more on cost cutting.
Defiantely puts that high interest loan firmly in the firing line first.

Tixy
Most of the debt seen is actually house associated, as I moved to my current house 18 months ago and stupidly didn't want to wait to get certain things done, like garden, drive, flooring, etc.
So 18 months ago I had zero debt outside of a mortgage until the house move.
Presents, I dont do xmas full stop and gifts I always either bake something, grow something or offer to fix something, been very anti brought gift for many years.
Entertainment for me is gardening (my own veggies from seed) or walking the dog, I live such an exciting life lol
The £600 excess which actually fits from amounts transferred around has been around for about 4 months as I had already started to curb my ways and get my emergency fund together as I had zero so I am hoping I have started myself along the right course its only day I have sat down and actually worked out everything I owe.
0% on the credit card is until Jan 2017

So im thinking 18 months to get into this mess about 18 months - 2 years to get back out of it.

andyfromotley

Hi Oak,

its an individual thing obviously but i reckon £1k is enough in an emergency fund. So that added to the £1200 in your ISA gives you £2200 towards your debt.

I have just opened a 'spare' current account which i am going to use to switch between all the reward bearing accounts, this should net me £450 in free cash over the next few months.

You are paying too much for phone and internet £33.50. I pay £7.80 per month. Keep an eye on the MSE best buys.

I think you are being optimistic to clear it in 18-24 months on the figures you have here, but you never know. Good luck and welcome aboard!.

japmis

Hi Oak

seems we are very similar in terms of income and outgoings, and I too had zero debt until I bought my flat 2 years ago and it desperately needed things doing to it which I just whacked on a 0% credit card (carpets, new front door, etc).

The tool which has helped me most - and I bang on about it all the time - is YNAB (you need a budget). I managed to free up enough money every month to clear all my credit cards before the 0% runs out and start an emergency fund. Last month my car needed emergency repairs totaling £440; ordinarily I would have gone overdrawn or put it on a credit card, this time I just paid with my debit card and moved some pots of money around to compensate

Don't be put off by the $30 price tag, it's well worth the money.