Later is here

National_Debtline

Hi again


I feel you need to decide very firmly whether it is a gift or loan and proceed accordingly. It won't do you any favours to sway between treating it one way then the other. Personally, I would advise that you treat it as a gift for now, and at least until you have got your house in order.


Re: the life insurance. Debts are not passed on to others after one's death. If this assumption is the basis of your decision to take out the policy, it is a faulty one and you should consider cancelling the payments altogether. If you were ever so unfortunate as to suffer an illness/injury that affected your income, there would be other approaches and safety nets we could look at.


In terms of your budget overall, I still have serious reservations about the sustainability of your groceries figure. We can all budget more tightly when we put our minds to it, and I take your points about living alone and settling for a repetitive menu, but I feel that a figure of £20pcm pushes that idea to an extreme. It's really important that the budget allows for a reasonable if not extravagant standard of living, otherwise it's likely to prove very difficult to work within.


If the above budget were truly viable, then you would presumably have had no need to use any of the credit cards in recent times. As it is, you acknowledge that you have been continuing to use the M & S card. This suggests to me that the figures above haven't quite been corresponding with your actual expenditure. What sort of things have you been using the card for in practice? Groceries, for example?


Dennis
@natdebtline

Lotstogain

Thanks all for your comments. You are all right. I have been spending a ridiculous amount on food, drink in the past and have spent on cards, so I know I need to cut down, but maybe £20 a month is a bit drastic. Does anyone have any suggestions on a reasonable budget for one person. I love cheese and can eat it by the block (protein!) but I don't tend to buy much meat as I am not a great cook.


Presumably if I do cancel the life insurance then I can increase the food budget a little and chuck the remainder at debt?


Re hols - I am committed to a Feb hol and Glastonbury in summer. Or at least that is what I am choosing, at the moment ... until the light bulb properly switches on.

Lotstogain

I had budgeted for another holiday later next year but I think I can/will/must say no to that

redpete

Lotstogain wrote: »

I had budgeted for another holiday later next year but I think I can/will/must say no to that

I hope so, two holidays and Glasto are not the lifestyle of someone who is serious about dealing with debt.

As for £20 a month on food - I was convinced it was a typo. You need to budget for a realistic healthy diet, not choose a number you think is needed to make everything else balance and hope you can survive on that.

Lotstogain

I know . This will be the first time I have eve been to Glastonbury. I know it sounds stupid but I only agreed to it because I thought we wouldn't get tickets.

I can come up with hundreds of excuses. ... I know

moneyonmymindsam

Living on £5 a week it's highly unlikely you will have the energy to make it next years Glasto ..lol


Your health is important.


Just to say sincerely good luck on your Journey !!


MMsam xx

foxgloves

I too first got into debt as a student, aged 19. The LBM didn't strike till my 40s either & I became debt free at age 46. My attitude to spending was exactly as you describe & that HAS to change if you are to see any change in your situation. That means a hefty dose of realism. £20 for groceries is unsustainable nonsense. I would say the lowest would be about £80 if you budget very hard. A grocery shop isnt just food, there will be household essentials too such as cleaning materials & loo paper. I say this not in judgement, as I have been there myself with my terrible attitude to money in the past, but if you are intending to spend £113;a month of someone else's money (that's what debt is) on holidays & £20 on groceries, you are nowhere near an LBM just yet.

firesidemaid

Lotstogain wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1809
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1809
Monthly Expense Details
Mortgage................................ 525
Secured/HP loan repayments.............. 195
Rent.................................... 0
Management charge (leasehold property).. 5
Council tax............................. 89
Electricity............................. 28
Gas..................................... 29
Oil..................................... 0
Water rates............................. 25.17
Telephone (land line)................... 10
Mobile phone............................ 8
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 12
Groceries etc. ......................... 20
Clothing................................ 1
Petrol/diesel........................... 60
Road tax................................ 2.5
Car Insurance........................... 23.5
Car maintenance (including MOT)......... 16.49
Car parking............................. 0
Other travel............................ 5
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10.4
Pet insurance/vet bills................. 0
Buildings insurance..................... 12
Contents insurance...................... 12
Life assurance ......................... 40
Other insurance......................... 1.5
Presents (birthday, christmas etc)...... 30
Haircuts................................ 6
Entertainment........................... 80
Holiday................................. 113
Emergency fund.......................... 0
Total monthly expenses.................. 1371.68

Assets
Cash.................................... 0
House value (Gross)..................... 123000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 131000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 102000...(525)......0
Secured Debt.................. 12000....(195)......0
Total secured & HP debts...... 114000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
santander......................3500......35........0
mbna...........................4000......40........0
barclays.......................4000......100.......0
virgin money...................7000......100.......0
m&s............................4000......100.......0
Total unsecured debts..........22500.....375.......-

As others have said, a budget has got to be realistic and stuck to if the plan is going to work. There are lots of ways to make & save money - can you get a second job or overtime just to pay for your holidays?


Is your landline really only £10? Yes, stop the life insurance. Do you have a work pension scheme (as that sometimes also has a LA element)? B&C & Car insurances can be reviewed on renewal. Do you use cashback sites? Do you take lunches to work?


Start a spending diary to write down EVERYTHING you spend to get a real idea of your budget. The first thing you need to do is stop spending on the credit cards

enthusiasticsaver

Your soa looks ok except for groceries, clothing and holidays which you can't afford. Groceries are too low to be healthy. Sacrificing a healthy diet for a few days away is crazy and jeopardising your health surely. The clothing can be nil really as you don't have kids. I would say £100 per month for groceries for 1 and if you have some left at end of month put it first to an emergency fund which you also need if you have a house and a car. Cut the entertainment and life assurance- that is £480 towards debt in a year which is no use as you have no dependants. Groupon for entertainment and cut back as far as possible. 2nd job in evenings or weekend or take in a lodger?

Good news is that you are still able to make payments so you can deal with this but it takes discipline. First thing is to cut up credit cards, build up emergency fund and resolve for a few years to live v frugally until that debt is gone. Good luck

enthusiasticsaver

Also the buildings and contents insurance looks a little high. I have just paid £75 for a years buildings and contents insurance on top cashback for a 4 bed detached house but I don't have all the expensive extras like accidental damage etc but I do have savings so that is a choice to make.