Asking for help to get control

danlightbulb

Hello all.

I feel like I should be able to control my debts with the decent salary that I'm on, but its just not happening. Despite a recent promotion and having paid off a 5 year loan, I'm still struggling to put anything aside.

Here is my SOA.

I should add that I'm divorced with 2 kids who I have at weekends. I pay child maintenance at 20% of salary, which Ive included below but I also have to meet the costs of having the kids with me so this is perhaps not very well reflected in the data below.

Please can I have some advice on where I'm going wrong. I have a new partner now and we want to get a house together, but I cant put any money aside for paying off the debts let alone contributing to a deposit. Its really upsetting me.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 2430
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ -440
Total monthly income.................... 1990

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 78
Electricity............................. 31
Gas..................................... 67
Oil..................................... 0
Water rates............................. 14
Telephone (land line)................... 0
Mobile phone............................ 31
TV Licence.............................. 10
Satellite/Cable TV...................... 39
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 12
Car Insurance........................... 60
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 38
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 7
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1487


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit cards...................10000.....220.......0
Total unsecured debts..........10000.....220.......-


Monthly Budget Summary
Total monthly income.................... 1,990
Expenses (including HP & secured debts). 1,487
Available for debt repayments........... 503
Monthly UNsecured debt repayments....... 220
Amount left after debt repayments....... 283

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,000
Net Assets.............................. -9,200

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

bexster1975

Hi dan

A few questions on your SOA:

Do you really have £283 left each month? If so, can you not use this to build up emergency fund? If not, a spending diary is in order.

£300 a month on groceries is a lot for one person, even taking into account kids at weekends. I bet you could take £100 off that with little trouble/compromise.

Your combined gas and electric seems high for one person working full time. Is this the best tariff?

You have no money for haircuts or entertainment - is that realistic?

Other bits of SOA look ok generally.

Just a place to begin. If you could put £300 a month into an emergency fund you will have a months wages saved by christmas which would be a good start.

Am assuming no other credit cards etc.

Bexster

ETA: I see the debt is credit cards. What is/are interest rates? I would now throw £200 a month extra at debt and £100 to emergency fund

danlightbulb

Thanks Bexter.

No, I don't ever have £283 left each month. Basically it just goes, on taking kids out, general small things, and when birthdays and christmas come around. Not on the SOA is gym @£20 a month and my sons football dues @£20 a month.

Yes I agree my gas and electric look high. I switched a few years ago so I'm going to look into this.

My CC's are all on 0% as I balance transfer them around.

Regarding the groceries, about half of that £300 gets spent in supermarkets, and the rest in the canteen at work and on the odd takeaway and chocolate bars. Other than that I don't really go out myself, do take kids to cinema etc.

Up until only a few months ago I had to put all christmas/birthday presents on credit cards plus any car repairs etc. Ive since had a £150 pay rise and paid off a £200 loan, so I've stopped putting things on credit cards now which is good but still not paying off the debt I do have.

bexster1975

Hey Dan

Start with a spending diary for a month. If you can save even half of £280 a month it will make a great start to overpaying on your CC debt. How long is your 0% for? Is the plan to clear it before the intro rate runs out. There are loads of great threads over on Old Style board about cutting grocery costs. If you don't already, check out Aldi or Lidl if they are nearby. You do need a bit of money spent on yourself you know. The debt can be managed and you can have a life ( God forbid! ). I also thought your mobile was costly, but you may be in contract so that might be tough for now.

Take a look at the energy saving club for gas and electric. Mine is £38 per month dual fuel so may be a decent saving to be had there.

Sorry for 20 questions!!

Bexster

bexster1975

As an incentive, just a rough calculation shows at 0% for the duration ( I'm sure it couldn't be for the whole time) it will take about 4 years 9 months to pay off your CC debt.

If you can increase this by £200 a month it will be gone in approx. 1 year and 9 months! Of course if you can increase it further then faster still. If you can get your budget under control so you could pay it of in about 22 months you may even be able to shift the whole lot to a 0% for 20 something months and get it gone!!

Bexster

theoretica

danlightbulb wrote: »

No, I don't ever have £283 left each month. Basically it just goes.

It sounds to me as though your current budgetting comes down to spend money and hope it all works out. This can be greatly improved on! First, work out where your money has been going. A spending diary will help, as mentioned, or looking through past bank and card statements. Then look at each and every item and see if it was really worth it, and if the same value/enjoyment can be had for less. Even little things like buying multipacks on offer in the supermarket rather than individual chocolate bars from corner shops or vending machines add up.

rockm87

Hi Dan!
Agreed with the previous, you really need to take note of your spends! you need to tell your money where to go not watch it as it rolls out of the door!

Have you tried limiting to cash for groceries? set yourself a budget and once its gone, its gone.

Try taking a packed lunch to work, or just taking a tenner for the week and trying to match it streeetch!

ReadingTim

The mobile phone and sky TV would be good places to start, and perhaps postpone the holiday plans until you're on a more stable financial footing.

Ultimately it's about priorities - would you rather have the latest shiniest smartphone and hundreds of TV channels, or a home with your new partner?

andy19671

worth looking into maintenance payments as if you have the children 2 days out of 7 every week you only have to pay 5/7ths of the maintenance payments

Pixie5740

danlightbulb wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 2430
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ -440
Total monthly income.................... 1990

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 78
Electricity............................. 31
Gas..................................... 67 That is high. I live in a granite building in NE Scotland and my gas isn't as high as that.
Oil..................................... 0
Water rates............................. 14
Telephone (land line)................... 0
Mobile phone............................ 31
TV Licence.............................. 10 Is this not £12.12 a month?
Satellite/Cable TV...................... 39 A luxuary you can't afford
Internet Services....................... 0
Groceries etc. ......................... 300 Astronomical! Start taking packed lunches to work and cut down on the takeaways. Try switching to Aldi or Lidl. Meal plan.
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 12
Car Insurance........................... 60 £720 a year :eek: That is huge!
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 38
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5
Life assurance ......................... 7
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 This is also high.
Haircuts................................ 0
Entertainment........................... 0 Nothing? Ever?
Holiday................................. 50 It's a luxury when you're in debt.
Emergency fund.......................... 0 You need something here.
Total monthly expenses.................. 1487


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit cards...................10000.....220.......0
Total unsecured debts..........10000.....220.......-


Monthly Budget Summary
Total monthly income.................... 1,990
Expenses (including HP & secured debts). 1,487
Available for debt repayments........... 503
Monthly UNsecured debt repayments....... 220
Amount left after debt repayments....... 283 Start a spending diary to see where this money goes.

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,000
Net Assets.............................. -9,200

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

You've got lots of fat that could be trimmed from your SOA. If you have problems budgeting then you could try a programme like YNAB, Money Dashboard or just a good old Excel spreadsheet. Personally I like YNAB. Using it has improved my budgeting no end.

andyfromotley

You need two things, Ynab and an emergency fund. You have enough cash you just have no idea what you are doing with it each month!!