Determined to be debt free

Donna83

I've been reading threads on here for quite a while now and have finally plucked up the courage to start my own!! We are in quite a lot of debt and I am struggling to see how we can get out of it :-(
Our debt is approx £41,000 which doesn't include our mortgage!! Feel a bit of relief actually writing it down, it's like a confession!! The scary thing is we really want to move as we have 3 children and not enough space!! We are managing to pay our bills, just, but we are terrible with money!! 2 of our credit cards are no longer interest free but we can't transfer as I am worried that if we apply for a new interest free card and it is refused it is going to go against our credit rating!! It's like a vicious circle!! I currently ebay as much as possible and I am a member on a lot of survey sites so I'm certainly trying to make extra money. I am trying to stay positive about reducing the debt but some days it's tough!! xx

rockm87

Hi
get your statement of affairs together: http://www.stoozing.com/calculator/soa.php

so we can clearly see your situation

Donna83

Thanks for that advice, I think I have done it correctly?


[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 1000
Benefits................................ 632
Other income............................ 0
Total monthly income.................... 2732
Monthly Expense Details
Mortgage................................ 390
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 33
Gas..................................... 33
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 10
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 23
Internet Services....................... 10
Groceries etc. ......................... 120
Clothing................................ 25
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 69
Car maintenance (including MOT)......... 10
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..................... 8
Contents insurance...................... 8
Life assurance ......................... 30
Other insurance......................... 13
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1098

Assets
Cash.................................... 0
House value (Gross)..................... 65000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 66500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 48617....(390)......3.59
Total secured & HP debts...... 48617.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................10632.....240.......0
Credit Card 2 .................9697......212.......0
Credit Card 3..................2635......30........0
Loan...........................9277......360.......7.3
Credit Card 7..................1498......40........18
Credit Card 6..................1233......30........0
Credit Card 5..................1390......40........18
Credit Card 4..................4461......50........0
Total unsecured debts..........40823.....1002......-

Monthly Budget Summary
Total monthly income.................... 2,732
Expenses (including HP & secured debts). 1,098
Available for debt repayments........... 1,634
Monthly UNsecured debt repayments....... 1,002
Amount left after debt repayments....... 632
Personal Balance Sheet Summary
Total assets (things you own)........... 66,500
Total HP & Secured debt................. -48,617
Total Unsecured debt.................... -40,823
Net Assets.............................. -22,940
[/tt]


xx

Grumpelstiltskin

I think your SOA isn't correct.


Only £120 a month to feed 5?


2 cars and only £80 a month for petrol/diesel?


No one ever has a haircut?


Please check everything again to make sure you have the correct figures.

Donna83

I've amended the figures, I must of missed the haircut box and goodness knows what I was doing when I entered the food amount :-) The fuel is correct, we only put £10.00 a week in each car. We need to put more in if we decide to go on a day trip but I've just based the figures on an average month.


[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 1000
Benefits................................ 632
Other income............................ 0
Total monthly income.................... 2732
Monthly Expense Details
Mortgage................................ 390
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 33
Gas..................................... 33
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 10
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 23
Internet Services....................... 10
Groceries etc. ......................... 240
Clothing................................ 25
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 69
Car maintenance (including MOT)......... 10
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..................... 8
Contents insurance...................... 8
Life assurance ......................... 30
Other insurance......................... 13
Presents (birthday, christmas etc)...... 50
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1243

Assets
Cash.................................... 0
House value (Gross)..................... 65000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 66500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 48617....(390)......3.59
Total secured & HP debts...... 48617.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................10632.....240.......0
Credit Card 2 .................9697......212.......0
Credit Card 3..................2635......30........0
Loan...........................9277......360.......7.3
Credit Card 7..................1498......40........18
Credit Card 6..................1233......30........0
Credit Card 5..................1390......40........18
Credit Card 4..................4461......50........0
Total unsecured debts..........40823.....1002......-

Monthly Budget Summary
Total monthly income.................... 2,732
Expenses (including HP & secured debts). 1,243
Available for debt repayments........... 1,489
Monthly UNsecured debt repayments....... 1,002
Amount left after debt repayments....... 487
Personal Balance Sheet Summary
Total assets (things you own)........... 66,500
Total HP & Secured debt................. -48,617
Total Unsecured debt.................... -40,823
Net Assets.............................. -22,940
[/tt]


xx

Grumpelstiltskin

OK Donna that's a bit better but still not correct I think.


You never spend anything on children's activities etc.?


I guess you don't have £400 plus left at the end of the end of the month?


You need to try and work out exactly where your money is going, write down everything you spend and then you will be able to where you can make savings.


As long as your SOA is correct then the good people on here will help you.

Brightspark87

Hi you've not put anything in emergency fund or entertainment is this true? Sorry I dont mean to nit pick but it has to stand up to work properly. Do you really have £487 over each month?

MallyGirl

if you only use £10 a week each in fuel do you need to run 2 cars?

Donna83

Sorry about this guys, I think when I have been filling it in I've not thought it through properly and not included what we spend on daughters activities, our weekend spending on the odd take away, night out, day trips etc. I'd also forgot to put down a loan from a relative. I was probably rushing it too. We do need 2 cars unfortunately as my hubby works from early in the morning and daughters school is not a walkable distance. We don't currently put anything away for emergency's. Thank you all for your input and advice so far though :-)


[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1100
Partners monthly income after tax....... 1000
Benefits................................ 632
Other income............................ 0
Total monthly income.................... 2732
Monthly Expense Details
Mortgage................................ 390
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107
Electricity............................. 33
Gas..................................... 33
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 10
Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 23
Internet Services....................... 10
Groceries etc. ......................... 240
Clothing................................ 25
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 69
Car maintenance (including MOT)......... 10
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..................... 8
Contents insurance...................... 8
Life assurance ......................... 30
Other insurance......................... 13
Presents (birthday, christmas etc)...... 150
Haircuts................................ 25
Entertainment........................... 240
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1583

Assets
Cash.................................... 0
House value (Gross)..................... 65000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 66500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 48617....(390)......3.59
Total secured & HP debts...... 48617.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................10632.....240.......0
Credit Card 2 .................9697......212.......0
Credit Card 3..................2635......30........0
Loan from relative.............1500......100.......0
Loan...........................9277......360.......7.3
Credit Card 7..................1498......40........18
Credit Card 6..................1233......30........0
Credit Card 5..................1390......40........18
Credit Card 4..................4461......50........0
Total unsecured debts..........42323.....1102......-

Monthly Budget Summary
Total monthly income.................... 2,732
Expenses (including HP & secured debts). 1,583
Available for debt repayments........... 1,149
Monthly UNsecured debt repayments....... 1,102
Amount left after debt repayments....... 47
Personal Balance Sheet Summary
Total assets (things you own)........... 66,500
Total HP & Secured debt................. -48,617
Total Unsecured debt.................... -42,323
Net Assets.............................. -24,440
[/tt]


xx

rockm87

Don't worry this is very important to get right, and a good way to check anomalies and money that is just leaking out of your budget.

Grumpelstiltskin

One thing that jumps out straight away is the amount you spend on presents.


I know you have 3 children but you just can't afford £1800 a year on presents.