Soa

EssexHebridean

petsitter2000 wrote: »

Hi Andyfrommotley
yes my cc are now all on 0%
Yes my morgtgage is on the lowest interest rate possible.
I owned a car outright before and ended up paying a fortune in the end on repairs.

EssexHebridean
Cleaning products/Cleaner . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 Err...nothing at all?
I include such things as cleaning products, pet food etc in my grocery shop. OK - that makes sense then.
My monthly car payment includes, servicing for 3yrs, breakdown cover. But still not the sort of depreciative items I've mentioned, I'm guessing? certainly there aren't many car deals out there that I know of that would cover tyres, for example. Worth thinking about as you don't want to end up getting a ticket for dodgy tyres.
My figure on petrol is based on when I was working. I have literally just retired so don't know how much petrol I will use but clearly it wont be as much as when I was working. I am monitoring this and will adjust when I have been retired a few months.
Car payment is on going. For how long though - do you eventually own this car as an asset or are you leasing it?
Loan is 3yrs. Three years left on it now, you mean?
Credit cards I will keep rolling over to 0% interest until its all Gone. That's assuming that you are still able to get the decent 0% deals, now you're retired....might be an idea to think of a plan B in case you can't?

Regarding the summer holiday no I don't save for it. I'm just assuming thats how much it will cost to spend a week in my friends villa in Turkey. Villa free but flights and spending money would come to about £400.
My hobby is playing golf. I have just cancelled my membership as I can no longer afford it. Is there a local "Pay Per Play" course you could use as and when finances allow?
I will have to monitor going out, entertainement etc as it all used to revolve around playing golf. Thats why I have left it blank. You can't just remove everything that will give you contact with other people, you'll end up horrendously isolated and that won't help your state of mind around the finances, either.

No the books do not balance. That is why I am asking for help on this website. Yep, we understand. Sometimes the nature of the way people comment on things here can seem quite harsh, or abrupt - but that's just as they're trying to probe to get to the bottom of the situation and see how they can suggest things that will help. It's not just people being unpleasant - on this board I've pretty much NEVER come across anyone being nasty who hasn't instantly been shot down.
Thank you for all the suggestions so far.
I will certainly take them on board.

PS

Further comments in blue - we're on your side PS, not trying to get at you, but genuinely trying to offer suggestions and see how you can salvage your situation without ending up in a hole.

ViolaLass

Do you rent or do you have a mortgage? If the latter, when will it end?

petsitter2000

Hi EssexHebridean

I don't feel anyone is being abrupt at all. I appreciate your straightforwardness. There's no point in pussfooting around.

With regards to my car it is brand new and I will renew it every 3yrs. I know that accidents can happen but tyres etc should be ok for 3 years especially if I'm not doing as much driving. The car is under warranty but not sure for how long. So when I say my car loan is ongoing I mean that I will renew every 3yrs.

The loan will be paid off in 3yrs.
I have just switched to a new 0% credit card which last about 2 1/2 yrs. This should give me some some time to pay a decent chunk off and hopefully get another 0%. If not a plan B sounds like a good idea.
Yes there are some pay and play courses which like you say will play when finances allow.
I can also get cheap greenfees or 2 for 1 discount vouchers. Will visit friends and have them visit me which is much cheaper than going out.

andyfromotley

Well, first of all I need to address my spending on groceries.
I am going to join the Grocery challenge and try £25 per week to start with. Going to cut down my drinks at home by 50%

I have just retired from 30yrs of hard graft so would like a break for a bit.
I have looked at the up your income board and there are lots of suggestions on there, however I don't know how much you can actually make from surveys and matched betting etc but will give it a try.
I have loads of stuff to sell on ebay.
I'm going to set a budget for petrol to 10 per week.
I'm reading the os board and loving it so hopefully will pick up some more tips to save money.
If I do save/make any extra I will use it to pay down my cc.
Once credit card payed off I will start on my loan/mortgage.
As EssexHebridean says need to think of a plan B if can't get another 0% cc.
Research best value and cheapest way to own a car.

Is this ok for starters?

Thank you all again and please feel free to be as blunt as possible.

PS

petsitter2000

Hi ViolaLass

I have a mortgage and due to getting divorced I have another 15yrs left on it.

UrbanDanceSquad

andyfromotley wrote: »

Hi PS,

so given the suggestions what are your thoughts on making the books balance then?

I'd say an idea of exposure to debt such as balances, creditors and the terms. SOA is pretty much useless without such info. Would seem that the OP's spending power is somewhat limited due to shelling 1/3 of income on debt repayment. So addressing such debts is probably the reason why the OP has posted on the Debt-Free Wannabe board.

RAS

You are in a bit of a pickle. However without knowing when the HP and other payments end it is hard to work out how soon you can sort it.


You need to get your head round the fact that you cannot afford to replace the car every three years. It is not going to be an option to renew really.


Unless you can reduce your spends drastically or earn money somehow (Monday to Thursday lodger? etc) you need to talk to a debt charity pronto.

petsitter2000 wrote: »

Hi, I'm new to this forum. My income has gone down quite a lot due to retirement and I need help to live within my means.

Thanks in advance.


[FONT=&quot]Statement of Affairs and Personal Balance Sheet[/FONT][FONT=&quot]

Monthly Income Details
Private Pension / Annuity Payout. . . . . . . . . . . . . . . . . . . . . . . . 1,416.67[/FONT]
[FONT=&quot]You need to increase this – either take a lodger or get occasional jobs.[/FONT]
[FONT=&quot]

Monthly Expense Details

In Your Home

Mobile phones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
TV licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.12
Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.50 – very high and you need to reduce ASAP
Home phone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Cleaning products/Cleaner . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Garden maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Household maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.33
Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00
Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
Council tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.00
Overdraft cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Bank account fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Home insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524.00
Mortgage life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Food and household shopping . . . . . . . . . . . . . . . . . . . . . . . . . . 333.67 – very high
Drinks for home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86.67 - cut

Motoring & Public Transport

Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88.96
Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.00
Debt Repayments

Credit card repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00 – what is the total debt
Hire purchase repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . 134.00 – on what – when does this end?
Car loan repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149.00

Savings & Investments


Entertainment

Satellite/Digital TV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . combined with internet

Clothes, Health & Beauty

Haircuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00 – bi-monthly
Dentistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.17
Beauty treatments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00 - stop
New clothes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00 - stop


Big One-Offs

Sofa/Kitchen/TV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.67 – what is this about?
Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Summer holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.33 – forget it until the debt is paid.
Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00




Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,416.67 – you need to increase this until the debt is paid


Total monthly expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,955.42 – you need to cut this


[/FONT]

selloptape

petsitter2000 wrote: »

I have just retired from 30yrs of hard graft so would like a break for a bit.

Was chatting to someone the other day who has a part time reception job to supplement pension and she loves it as it's one day a week so it's not too tiring and she doesn't get drawn into the office politics. Also it's a bit of a social time.

Best of luck to you, hope you enjoy your retirement

theoretica

petsitter2000 wrote: »

With regards to my car it is brand new and I will renew it every 3yrs.

You are currently spending about £1800 a year on that car, especially taking into account that you will be driving less now you are retired I think you could considerably reduce your outgoings in the long term. But if you are not near the end of the 3 year cycle you have no rush to sort this out. When you want to, there is a motoring board on these forums which I am sure could help you with suggestions.

FBaby

I don't think you are yet considering all this realistically. You are looking at making some small changes, but these will not come close to insuring your outgoings are no more than your pension. Not only can you not afford your budget, but you certainly cannot afford to add to your debts each month. You are at risk of getting into quite some trouble if you don't make some adjustments asap.

At the moment, the earliest you can be released of a large payment is three years, so you need to plan your budget until then and afterwards until your mortgage is paid.

What you need to consider is your social life. Your budget makes no reserve for this at all, is this realistic for someone who had an active life before? I agree with the poster who ask about your need of a brand new car if you are not planning to go anywhere that cost money.

I think you need to consider your budget with the life you are envisaging during your retirement. Do you rather have a new car than having some pocket money to do some activities with friends? Can you downsize your accommodation to release some disposable income each month? Or maybe you could cut down on everything for 12 months and try to repay your debts quicker?

Whatever you do, don't ignore the situation as it will get worse much quicker if you accumulate £500 of debt each month.

lambda

theoretica wrote: »

You are currently spending about £1800 a year on that car

Yes, and I can assure that buying a brand new car and renewing it every 3 years is going to be way more expensive than keeping the car and maintaining it over a long period, or buying a second hand car and maintaining it.

You currently spend £5364 every three years (149 * 12 * 3), with no car to show for it.
My car is 11 years old, it has 107,000 miles on it, I have spent about £1800 in 4 years on repairs on it (including MOT, tyres, brakes and servicing), that's £37.5 a month for 4 years to own and fully maintain a car; that's a lot cheaper. I also own the car outright. Also, new cars depreciate at an insane rate and you still have to buy tyres and service the thing. I would consider at the end of the 3 years either trying to keep it or buying a car that is older and think about maintaining it.