What to do????

Pixie5740

p1nk18 wrote: »

[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2604
Partners monthly income after tax....... 7000
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 9604

Monthly Expense Details
Mortgage................................ 3330
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 179
Electricity............................. 65
Gas..................................... 65
Oil..................................... 0
Water rates............................. 32.33
Telephone (land line)................... 25
Mobile phone............................ 55 This could be reduced by at least £20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 80.4 Very high. Does this include Sky TV or something?
Groceries etc. ......................... 250 Are you guessing or is this the budget you are going to stick to?
Clothing................................ 50
Petrol/diesel........................... 40
Road tax................................ 44.19
Car Insurance........................... 58.91
Car maintenance (including MOT)......... 84
Car parking............................. 37.5
Other travel............................ 0
Childcare/nursery....................... 1525
Other child related expenses............ 26.67
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 55.73
Contents insurance...................... 84.02
Life assurance ......................... 59.41
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Nothing ever?
Haircuts................................ 0 Never?
Entertainment........................... 0 Never?
Holiday................................. 500 £6k a year on holidays is a lot especially when you are in this much debt.
Emergency fund.......................... 100
Total monthly expenses.................. 6759.28


Assets
Cash.................................... 0
House value (Gross)..................... 1100000
Shares and bonds........................ 0
Car(s).................................. 35000 Do you have 1 or 2 cars?
Other assets............................ 15000
Total Assets............................ 1150000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 600000...(3330).....0 What's the interest rate?
Total secured & HP debts...... 600000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Cards...................20019.....900.......18 Is your debt only over 2 credit cards? Could you shift some to 0% credit cards?
Credit Cards...................20000.....1000......18
Total unsecured debts..........40019.....1900......-


Monthly Budget Summary
Total monthly income.................... 9,604
Expenses (including HP & secured debts). 6,759.28
Available for debt repayments........... 2,844.72
Monthly UNsecured debt repayments....... 1,900
Amount left after debt repayments....... 944.72

Personal Balance Sheet Summary
Total assets (things you own)........... 1,150,000
Total HP & Secured debt................. -600,000
Total Unsecured debt.................... -40,019
Net Assets.............................. 509,981

[/tt]

I've added my comments in red. I have no idea about childcare costs so I haven't commented on that.

Do you really have £944.72 left at the end of the month? Maybe a spending diary or something like YNAB would help you keep track of where your money is going.

MSE Martin says he has never encountered a debt problem that doesn't have a solution so keep your chin up.

p1nk18

Hi All,

I need to go through my spreadsheet again properly and put in REAL figures. This is just what I have done at first glance but Its making me feel SICK! I

aznlayer

Hi Pink.

You're fortunate that you earn a good income and it's a shame you are having to worry about debts. I'm sure you and your husband work very hard each month and you shouldn't be "wasting" your earnings on CC interest to benefit banks.

It won't take you long to clear that debt, but you may want to consider changing your lifestyle slightly and get in the habit of putting money aside for the future etc.

Interest only mortgage !! No way .. Pay your unsecure debts off and then start overpaying your mortgage. That's my advice

japmis

aznlayer wrote: »

Interest only mortgage !! No way .. Pay your unsecure debts off and then start overpaying your mortgage. That's my advice

Definitely agree with this.

Please please please please switch your credit card debts to 0% ASAP. Then work out how much you can pay off each month and set up a standing order.

You should be able to download your bank statement into excel and if you are excel savvy you can run a pivot table to find out where your money is going e.g. amazon, groceries, restaurants etc etc.

If you really want to take the bull by the horns, there's a software called "You Need A Budget" which has totally transformed my finances. The link is in my signature if you want to take a look.

Good luck! :T

p1nk18

We used to both have good jobs with HUGE bonuses at the end of the year. I would guess we probably spent around 15k a year on holidays alone, if not more. I know that has to change now. With regards to the internet my husband works from home and has BT business internet. I've spoken to him about it in the past and he will not change it. My mobile phone is due to expire end of October so I will be changing the contract. Groceries is a guess. We have two cars, one is in storage as it is a sports car two seater

p1nk18

I applied for a virgin 0% card last week and I was declined because I stupidly have a rejected payment for my amex card from m,y current account.

Pablosammy

Really, you don't need to be scrimping here. £50 a month here and there on an SOA is, in all honesty, nothing on your salaries. You have half a million in equity in your house - you could sell, pay off all your debts, and buy yourself a very decent house for £400k cash. After that, you could be putting a ridiculous amount away each month, mortgage-free, to retire early in utter luxury. I know that's what I would be doing in your position.

There is nothing to be stressed about here, but you need to reassess your priorities and lifestyle. I'll assume you both work in volatile industries where you can be made redundant suddenly... in which case, make hay while the sun shines.

p1nk18

Hi Pablosammy,

Selling our house isn't an option. We live in London and wouldn't be able to buy a shoe box for 400k.

We are currently paying an additional £600 a month on our mortgage until January as when we were both unemployed we got a little behind.

Does anyone have any money saving tips? My buildings and contents insurance are up for renewal in October. I've just saved £200 on my car insurance but having said all that I got a letter from nursery saying fees are going up! Gah!

bugslet

The car that is in storage, could you sell it? Presumably that would pay a chunk off your debt. Are you paying for storage?

You should/could have about £2500.00 a month left over -throw all of that at your debt and there's 30k gone in one year.

Pablosammy

p1nk18 wrote: »

Hi Pablosammy,

Selling our house isn't an option. We live in London and wouldn't be able to buy a shoe box for 400k.

We are currently paying an additional £600 a month on our mortgage until January as when we were both unemployed we got a little behind.

Does anyone have any money saving tips? My buildings and contents insurance are up for renewal in October. I've just saved £200 on my car insurance but having said all that I got a letter from nursery saying fees are going up! Gah!

Yeah, fair enough. I forgot how silly the housing market is down there!