New Girls SOA

thegreenone

Hi,
I am sure you are feeling bombarded at the moment and it will take time to adjust.


After reading your SOA, my first port of call would be the mortgage and secured loan. As others have said, the secured loan % is high for the current times. Please approach your lender for a better deal, even if it means looking at an exit penalty. It might be worth it over the term. If you can amalgamate the two into a low interest loan, all the better.


Yep, the food bill is high. Perhaps ask each member of the family, inc. You and DH, to write down their favourite meals, at least four per person and then work on a meal plan for a month. I have saved at least a third by having my weekly shop delivered by the big orange supermarket and dropped down to value range for many products. Yes, aldi and lidl are cheaper but if it's delivered will it save you valuable time that could be spent doing something else? Time management is, sometimes, as valuable as money management. I also use my nectar points for easyjet flights, but that can wait until next summer.


If you don't have a slow cooker, go onto freecycle and ask for one. The same for a breadmaker. I do cheat and buy packets of bread mix - with a family of five I am sure you can go through a loaf in a day!! With some packets in the cupboard you can have a loaf ready for packed lunches in a couple of hours. Freeze milk and cheese.


Good luck. You can do this whether your DH is on board at the moment or not. I control all our spending and bill paying. If we are going to have a few tight weeks, I say "okay, the next few weeks are going to be tight because we have this, this and this to pay" and he understands there's nothing spare.

chelseablue

thegreenone wrote: »

Hi,
I am sure you are feeling bombarded at the moment and it will take time to adjust.


After reading your SOA, my first port of call would be the mortgage and secured loan. As others have said, the secured loan % is high for the current times. Please approach your lender for a better deal, even if it means looking at an exit penalty. It might be worth it over the term. If you can amalgamate the two into a low interest loan, all the better.


Yep, the food bill is high. Perhaps ask each member of the family, inc. You and DH, to write down their favourite meals, at least four per person and then work on a meal plan for a month. I have saved at least a third by having my weekly shop delivered by the big orange supermarket and dropped down to value range for many products. Yes, aldi and lidl are cheaper but if it's delivered will it save you valuable time that could be spent doing something else? Time management is, sometimes, as valuable as money management. I also use my nectar points for easyjet flights, but that can wait until next summer.


If you don't have a slow cooker, go onto freecycle and ask for one. The same for a breadmaker. I do cheat and buy packets of bread mix - with a family of five I am sure you can go through a loaf in a day!! With some packets in the cupboard you can have a loaf ready for packed lunches in a couple of hours. Freeze milk and cheese.


Good luck. You can do this whether your DH is on board at the moment or not. I control all our spending and bill paying. If we are going to have a few tight weeks, I say "okay, the next few weeks are going to be tight because we have this, this and this to pay" and he understands there's nothing spare.

Does he have a brother I could have? :rotfl:

MallyGirl

I pay £27.65 pcm for BT Infinity 2 fibre optic Broadband including free weekend calls. If I use the phone during the week I use bundled minutes on the mobile contract, not the land line. I pay a year in advance for BT line rental which brings it down to £16.19 pcm. Total £43.84 which is much less than OP's £65
Grocery change of mindset will make the biggest difference

catwoman73

Do you know how you got into debt? You have a huge secured loan and a load more loans/credit cards.

Was the first loan a consolidation loan? If it was, it looks like it hasn't worked as you have run up the credit cards again. You also say 'I' quite a bit and mention that your husband is in denial about debt. Does he spend a lot of money on hobbies, drinking, food outside the home, or any other luxuries? Does he also make an effort with batch cooking etc to avoid waste and cook cheap meals - you shouldn't have to do it all alone.

It's no good you saving a tenner a month here and there if he's spending many times that amount on things that are not in the SOA. You both need to be in this together and moneysave together. You are lucky that you have a good income but you still need to tighten your belts a bit to get back on track.

You could save a few hundred quid a month on groceries if you plan and maybe do a once a month run to Aldi or Lidl to stock up on non perishables (and get the fresh stuff for that week too).

A couple of small points - road tax at £70 - is that right? Also, a salary of £50k for the higher earner is mentioned - if this is right, aren't you still eligible for child benefit? You will still get something unless you are on £60k or more after pension costs.

Okay simple solution remortgage property for 50% of it's value at 2.5% interest with a follow on rate of 4% on a 15 year mortgage. Clear all the debts reducing rates from 18.9% down to 4% and close all the accounts.

Repayments will be reduced from £3,328.50 to £2,681 after the introductory period on the mortgage has expired. Shortfall of £545 removed now with a £100 surplus and OP is completely debt free in 15 years.

I know that consolidation is generally frowned upon, but I agree with this suggestion that the OP might be a rare situation where this might be a good idea, but only providing that:

1. All credit cards are paid off and closed and the household runs without credit in the future (perhaps one with a lowish limit to keep an active credit line running and paid off in full every month without fail).
2. The interest on the remortgage is better than the existing mortgage and the secrued loan - currently it looks like a lot is going each month on interest.
3. Both parties are in secure jobs, or at least the major earner is.
The OP redoes her SOA for the remortgage and there is plenty of wriggle room for increasing interest rates
4. The SOA includes savings for annual expenses and emergencies (holidays, christmas, insurances, replacement of household items, decorating, car repairs or replacment etc). This amount will be hundreds of pounds a month or more - basically all these items must be paid for with savings not credit.
5. Personal spending for discretionary items such as lunch, drinks, clothes for adults, hobbies, days out etc etc is budgeted for on a monthly allowance/when it's gone, it's gone basis, based on what's left after essential household costs are covered.

thegreenone

LOL, Chelseablue, sorry no brother

Vikipollard

**joanna** wrote: »

New on tonight but I have been lurking long enough to know that the starting point is SOA.
I am pretty sure that our income should be more than enough.
We have a lot of equity but really don't want to sell our house.
A few things are non negotiable

1. Hairdresser is a family member who comes every 2 months and does all 5 of us for £60
2. Kids have part school meals and part packed lunches - they prefer school dinners but we only allow it 2 days a week
3. we have to have two cars as we are both essential car users
4. "entertainment is other kids parties and youth clubs with subs of £4 weekly
5. Phone is expensive but it's BT and covers TV (but not sport) and internet - if there is a better deal out there we're happy to try it.

Otherwise fire away

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................ 3051
Partners monthly income after tax....... 1830
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4881

Monthly Expense Details
Mortgage................................ 1470
Secured/HP loan repayments.............. 860
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 180
Electricity............................. 76 :eek: you must be able to reduce these!

Gas..................................... 85 :eek:
Oil..................................... 0
Water rates............................. 42
Telephone (land line)................... 65
Mobile phone............................ 30
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 900 :eek: £225 a WEEK? Apathy is not something you can afford. Drive to Aldi regardless of how tired you feel! 500 a month maximum.
Clothing................................ 100
Petrol/diesel........................... 120
Road tax................................ 70
Car Insurance........................... 70
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 8
Pet insurance/vet bills................. 20
Buildings insurance..................... 25
Contents insurance...................... 0
Life assurance ......................... 65 :eek: OH is 51, I'm 49. We get ours for less than 45 with Aviva and I thought THAT was expensive..
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 30
Entertainment........................... 20
Holiday................................. 40
Emergency fund.......................... 10
Total monthly expenses.................. 4428.12


Assets
Cash.................................... 0
House value (Gross)..................... 725000
Shares and bonds........................ 600
Car(s).................................. 1000 for two cars??
Other assets............................ 2000 what is this?
Total Assets............................ 728600


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 240000...(1470).....4.15
Secured Debt.................. 70000....(860)......8.19
Total secured & HP debts...... 310000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
JLF............................9000......271.......16.9 [/COLOR]Halifax........................1500......12.5......7.5
RBOS...........................5500......55........3.5
Barclaycard....................7500......175.......12.9
Nationwide.....................2400......40........12
Nationwide.....................5900......160.......18.9
Barclaycard....................9900......235.......10.9
JLF............................2500......50........16.9 [/COLOR]Total unsecured debts..........44200.....998.5.....-


Monthly Budget Summary
Total monthly income.................... 4,881
Expenses (including HP & secured debts). 4,428.12
Available for debt repayments........... 452.88
Monthly UNsecured debt repayments....... 998.5
Amount short for making debt repayments. -545.62

Personal Balance Sheet Summary
Total assets (things you own)........... 728,600
Total HP & Secured debt................. -310,000
Total Unsecured debt.................... -44,200
Net Assets.............................. 374,400

There are some easy wins with your SOA - but whether they will realise the savings you need is another matter. One thing is certain though. You can't go on in this way - you have to make economies on a grand scale.