Opened my eyes finally & dealing with what I see 28 January 2016 at 12:50PM edited 29 January 2016 at 2:12PM in Debt free diaries 96 replies 7.3K views

note3

I've known for a long while that my spending has been way over what I earn, but I've not let myself truly think about what this means. I've kept my head in the sand for too long. No more. I need to pay this money back and I need to never borrow on a DEBT card again...sadly I've proven I am not someone who can use these wisely. I'm also kicking myself massively as I budgeted strictly once before and rid myself of most of my debt only to take my eye off the ball and build it all again and even worse than before. Enough is enough, I can't spend my life owing money.

Here's my SOA. I'm sure it'll need tweaking, largely as I am not certain on MBNA payments as I've only just transferred money on 0% but have done what I hope is a decent estimate of repayments.

Hubby I have agreed separate payments for household expenses as I earn less so I've only covered what I pay below.

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.................... 1

Monthly Income Details
Monthly income after tax................ 1040
Partners monthly income after tax....... 0
Benefits................................ 184
Other income............................ 100
Total monthly income.................... 1324

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 35
Gas..................................... 45
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 28
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 35
Petrol/diesel........................... 30
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 12
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 12
Entertainment........................... 15
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 694


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................6600......199.......7.4
MBNA Credit card...............2880......40........18.9
MBNA Credit card...............11000.....110.......0
Sofa loan......................3000......38........0
Tax Credits Repayment..........1800......54........0
M&S Credit card................5600......142.......0
Total unsecured debts..........30880.....583.......-


Monthly Budget Summary
Total monthly income.................... 1,324
Expenses (including HP & secured debts). 694
Available for debt repayments........... 630
Monthly UNsecured debt repayments....... 583
Amount left after debt repayments....... 47

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -30,880
Net Assets.............................. -28,380

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

note3

Positive changes I have made:
1. Told OH a rough idea of debt level and both agreed to tighten belt buckles
2. Started selling furniture, clothes and toys where possible
3. Been putting money into a sealed moneybox. It began with me saving £2 coins when given them, however each time I've been given money for selling items or given money for Christmas/birthday I've stuck the cash in too. This will be opened either at a time of crisis (an unforeseen large payment I need to fund) or if it gets too full (haha as if this will happen??!)
4. Transferred debt to 0% deal (though still left with £2800 on 18.9% APR)
5. Making fixed repayment to my cards, instead of just minimum as this will ensure a few extra pounds of repayment every month above what would have paid with just minimum
6. Using ebay as go to place when children and home need new stuff and trying to sell things to fund or put towards planned purchases from there

note3

Hmm...just checked my SOA as I know I pay more than I earn yet it's saying I don't. This sadly means I must be paying out random stuff not budgeted for & not realising & if I'm honest then yes I'm guessing this is the case. I took my debit card off paypal for this reason so I could only buy when I'd sold things but had to add it back for essential purchase then left it there and bought more stuff. Dammit.

Baby asleep so I'm going to photograph last of maternity clothes to sell and then this can go towards DEBT card

note3

If anyone is reading this and would like to know where I got sealed moneybox well it was from B&M as it was 99p and you have to use a tin opener to get into it so you only ever open when desperate...much cheaper than those beautiful but expensive break open ones!

Sanctioned_Parts_List

Evening, note3 - glad to see you on board, and well done on the changes you've made already? Just a question - is there any reason why you and OH have separated your finances so? You are, after all, sharing your lives, so why keep money separated?

dottypooh1980

My husband and i keep separate finances and always have done in the 16 years we've been together. We have a joint account for the house/car needs and for holidays but otherwise it's separate and we love it that way. Plus he doesn't know about my debts so best off for me to keep it this way.

note3

Hi sanctioned - we moved in together before got married and had separate finances then with us both just splitting the household costs equally between us. Fast forward a number of years and our circumstances have changed with housing, hours worked and adding children and we've just kept things separate. I prefer it that way as although he now pays more for household stuff he also has more spare cash after he's made his debt repayments and I think that's fairer on him given he shouldn't have to rein his buckles as tight as mine and help me repay my own self created debt. Some of my debt has been lifestyle for both of us (as has his) but we now both recognise we can't be frivolous and spend like used to.

note3

Hey dotty, glad not just me! We have a joint savings account now which is for emergency household payments and we put money in there if possible so we don't have to use a debt card but rarely have much in here!!

reality_check

Hey!! Just had a read of your diary so far and that sounds exactly like me with regards to SOA saying you actually have more money than you do!

Before I had vet bills and recently also I demoted myself in work I always had more money coming in than what went out, yet I have forever been in debt!

It's all the unaccounted for emergencies, holidays, birthdays, christmas, decoratring, clothes etc that have contributed to mine! Basically I have nothing to show for the last 16 years working!

I have recently come out of a relationship with someone who earned significantly more than I did, and he never knew about my debt and probably to an extend I was keeping up with his lifestyle mixed with having the inability to say 'No I can't really afford that' I just thought oh well, whip out the credit cards!

I moved house a few years ago and had a bit of cash from the sale of the old house and cleared off £17,000 of credit cards, and was debt free for the first time in my adult life! This was short lived and less than 2 years later they are all building up again! I should have bought what I could and when, but the house needed a total renovation and typical me took out credit cards and went full steam ahead!

But we have both seen the light! I think these diaries are def the way forward and can spur each other on and feel accountable for our actions by writing them down!

Look forward to reading your diary and picking up some debt busting tips! I'm off to try and think of a list of things I have to sell....

xxx

note3

Oh man I wrote a long post and it got deleted as I wasn't logged in!
Our spending habits and mentality before are so alike and I'm guessing it's the same for many more out there...shows how easy it is. Plus like you I nearly paid off all debt and now am worse than before in what I owe after only a few years. Never again.

I'm someone who can't have an overdraft or a debt card. Decided I'll only get a future loan if it's for a specific household purchase too and not general spending which is where I went wrong before as got a loan to pay off cards then kept some back and spanked that too on toot...grr

The SOA has made me own up even more to what I owe as it's combined all debts and given me a horrifying total whereas until then I viewed the loans and tax credits repayments as separate as they're fixed and was only really taking into account the credit cards as APRs vary and cost fortune to pay but once I've tackled them it'll be nice to tackle loans earlier if poss esp the general santander loan as that's not 0%

ShiftThisDebt

Hey note. Good luck on your debt free journey. I'm at the beginning of mine too after a couple of years of thinking about it, I finally had my LBM and I'm not going back!! Look forward to seeing your progress!