Debts debts debts debts...where to start....

workingalwaysworking

Hello. I'm a regular lurker but I've decided it's high time to get our finances sorted, especially with the new year just around the corner. Where else would I go apart from the DFW board?

Here is our SOA. Be brutal, be honest!

Monthly Income (after tax) 421.20 (4 weekly)
Partner's Monthly Income 1491.82 (monthly)
Benefits 82 (CB)
Other Income (e.g. maintenance payments) 360 (my 2nd job)

Mortgage payment £621
Secured/HP loans £147

Council Tax £97
Electricity £30
Gas £40
Water Rates £33
Telephone (land line) £12
Mobile Phone £40 (for two)
TV Licence £12
Satellite/internet £45
Groceries etc. £200 (purely Lidl/Aldi)
Clothing £20
Petrol/Diesel £160
Car Insurance (including breakdown cover) £22
Other child related expenses £26

Medical (prescriptions, dentists, opticians etc.) £5.20 (Simplyhealth)
Pet Insurance/Vet bills £7.20
Building Insurance
Contents Insurance
Life Assurance 0
Other Insurance £18
Presents (birthday, christmas etc.) £20
Haircuts 0
Entertainment 0
Holiday 0
Household Emergency Fund (e.g. for repairs) 0 (we use credit cards :-( )

Debt description Debt (£) Monthly payment (£) Annual Rate (%)
Mortgage 125000 £621
Hire Purchase (HP)Car 10000 £147

Debt description Debt (£) Min Pay (£) Annual Rate (%)

Credit card £4200 £90 interest free for another 18 months
Credit card £2067 £40 interest frozen due to payment plan
Catalogue £661 £25 29.9%
Catalogue £227 £15 39.9%


Right, I think that's it all.

Firstly the house - we have contents and building insurance included. We bought the house through our local council last year. They had a scheme on for first time buyers where you don't pay a deposit but accrue shares each year. We have no APR as it is a fixed period of 5 years (have three years left). So the mortgage cannot be moved or changed.

The car is on a lease hire (I think that's what it is called) so we have road tax, maintenance and breakdown included in our monthly repayments. We have two years left on it.

Hubby gets paid on the same date each month and I get paid weekly by one job and 4 weekly by the other. His debt is the larger credit card (£4200) and mine are all the smaller ones. I have crap credit and his is relatively good.
I haven't put anything for haircuts/entertainment etc as that is as and when.

Any advice? thank you!

rolls99

OK first off (and I'm sure there will be lots of people to advise on the details of your SOA) - it has, to begin with, be a true record of what you spend.


No money for Haircuts? What about Magazines, newspapers, coffees or eating out? Carry out meals?


Think of your SOA like a shopping trolley. You say you've £200 for groceries.


Imagine you spend that in one go. What would happen if the bill came to £205.99 (more than your budget) and the Cashier said "We just add this on 'as and when'"?


"As and when spending" is what you need to account for as much (in fact more than) "Set" spending.


What you've really spent, not what you might, or think you will....

clint_S

This doesn't look bad with the data you supplied, but I think a lot is missing.


Income:
Weekly Monthly Yearly
£551.57 £2390.12 £28681.44


Expense:
General
Weekly Monthly Yearly
£352.94 £1529.4 £18352.80

Credit Card
Weekly Monthly Yearly
£39.2 £170 £2040


Total Weekly Monthly Yearly
Income £ 551.57 £ 2390.12 £ 28681.44
Expense £ 392.17 £ 1699.40 £ 20392.80
Total remaining £ 159.40 £ 690.72 £ 8288.64

National_Debtline

Hello and congrats on your maiden post!


Got to agree with rolls99 - there can be no such thing as "as and when" spending when it comes to doing a proper financial statement. Granted, most of us don't know exactly what we will spend on haircuts, entertainments etc., but we can set a limit and work within it. Part of the job a good financial statement does will be to wean you off any reliance on credit cards to cover these kinds of expenses.


Posters here are always happy to be brutally honest (!) but better still if you take the same approach yourself to begin with. If you're planning to edit the above budget, first check out http://www.stoozing.com/calculator/soa.php as it might make easier reading when you paste the results. You may get less responses than you're hoping for if people are having to manually tot up the figures above.


Dennis
@natdebtline