Finally Facing Up To Reality

ELM1981

Hello all, I have been lurking for a few months and started to make changes already.

So far I have managed to shift my credit card debt to a 0% until 2019 and a 6.9% life of balance on the rest, couldn't get another 0%.

I have got rid of sky, and started to bring down food bills which were crazy for 2 people.

Unfortunately my other half has lost his job so has stopped contributing to bills in the house. He suffers from depression so I feel another job he can bare will not come round quickly. But all the debt is mine, the house is mine, etc.
So the SOA excludes his car costs or phone, he has no debt. So thats not included as wont become mine to cover.

Any tips based on the below, have I missed anything off, things feel tight but not impossible right now. A little early to say if the remain figure is right due to the recent changes but I think it is about right. Or due to the level of debt should we consider a different route than just slowly plodding through it?

Also note the cash is from having a clear out and needs to be put in the bank.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2430
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2430

Monthly Expense Details
Mortgage................................ 599
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 102
Electricity............................. 40
Gas..................................... 20
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 17.40
Mobile phone............................ 28
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 24
Groceries etc. ......................... 240
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 21.40
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 15.90
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1512.82


Assets
Cash.................................... 2300
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 50
Total Assets............................ 126350


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 88962....(599)......???
Total secured & HP debts...... 88962.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan 1.........................7175.26...198.5.....5.2
Loan 2.........................11548.4...287.3.....16.4
Virgin Credit Card.............4562.11...45.62.....0
Barclays Credit Card...........7717.5....192.9.....6.9

ELM1981

Seems to have missed the summary

Total monthly income: £2,430

Expenses (incl. HP & secured debts): £1,512.82

Available for debt repayments: £917.18

Unsecured debt repayments: £724.32

Surplus (shortfall if negative) £192.86

Personal Balance Sheet Summary
Assets: £126,350

Secured & HP Debt £-88,962

Unsecured Debt £-31,003.27

Net Assets £6,384.73

Teacher2

You seems to be in a pretty good place in which to pay back what you owe. It seems as if your number one priority is getting your partner into some sort of work. If he is depressed perhaps some sort of low levelish job where there is little responsibility might be an idea, at least in the short term. What about retail or restaurant/cafe work. It doesn't pay hugely but anything he could bring in would speed up the payback.

Your expenses seem quite reasonable and you have already cut back on pricey packages like Sky and groceries.

You might get some more 0% finance by trying some of what Martin Lewis calls 'soft searches' which don't mark your credit file.

Good luck. Unlike many others who have not reached their lightbulb moment when they first post here you seem to know what you need to do. It'll be a long haul but worth it. Don't give up!

EssexHebridean

A glance suggests that you're right with "tight but doable" - and that's always a good start isn't it. A suggestion with your OH is to avoid the risk of him feeling "useless" and as though he isn't contributing is for him to contribute in a non financial way - so dealing with most of the housework, taking care of the shopping, cooking if that's something he can do (and learning to cook if it's not!) - there are more ways to contribute to a relationship than just with money.

Notes on SOA in red as usual...

ELM1981 wrote: »

Hello all, I have been lurking for a few months and started to make changes already.

So far I have managed to shift my credit card debt to a 0% until 2019 and a 6.9% life of balance on the rest, couldn't get another 0%.

I have got rid of sky, and started to bring down food bills which were crazy for 2 people.

Unfortunately my other half has lost his job so has stopped contributing to bills in the house. He suffers from depression so I feel another job he can bare will not come round quickly. But all the debt is mine, the house is mine, etc.
So the SOA excludes his car costs or phone, he has no debt. So thats not included as wont become mine to cover.

Any tips based on the below, have I missed anything off, things feel tight but not impossible right now. A little early to say if the remain figure is right due to the recent changes but I think it is about right. Or due to the level of debt should we consider a different route than just slowly plodding through it?

Also note the cash is from having a clear out and needs to be put in the bank. Stick at least £1000 of this into an account as your emergency fund, only be to touched in a genuine emergency, and consider using some of the balance to pay things like insurances up front when they become due - then you can continue to set side your monthly amounts and the money will be waiting there for the next year's policies when they become due.*

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2430
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2430

Monthly Expense Details
Mortgage................................ 599
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 102
Electricity............................. 40
Gas..................................... 20
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 17.40 Can you make a saving here by using some of your cash to pay a year up-front, then continue to set aside money monthly ready for the next year?
Mobile phone............................ 28 Any chance of reducing this - are you tied in to a contract?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 24 Seems high - have you shopped around?
Groceries etc. ......................... 240 You can knock at least £50 a month off this easily - and more if you want to be really determined about it
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 21.40
Car maintenance (including MOT)......... 20 As a rough guide if you're looking to start setting aside money for car expenses months - we budget £155 a month which accumulates into an account and pays tax, insurance, breakdown, servicing, MOT and depreciative costs like tyres for our 2 cars - looks like your tax & insurance are a fair bit more than mine though
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10 Is there a saving to be made using a pre-paid certificate for prescriptions or is this medical insurance or something?
Pet insurance/vet bills................. 0
Buildings insurance..................... 15.90 Is this buildings and contents?
Contents insurance...................... 0 See above
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1512.82


Assets
Cash.................................... 2300
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 50
Total Assets............................ 126350


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 88962....(599)......???
Total secured & HP debts...... 88962.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan 1.........................7175.26...198.5.....5.2
Loan 2.........................11548.4...287.3.....16.4
Virgin Credit Card.............4562.11...45.62.....0
Barclays Credit Card...........7717.5....192.9.....6.9

With the loans, check whether there is an advantage to paying them off early. If there's not, then set the DD for the Virgin card to the minimum, and throw every spare penny at Barclays. Remember also to set a reminder on your phone or email account to prompt you ahead of when that 0% ends - as the interest rate will no doubt hike when it finishes.

* on the question of budgeting for insurances etc, what we find helpful is to set up a number of "offshoot" online savings accounts off our main current account - we then have monthly transfers set into each of these for car expenses, household expenses, holiday money etc. That way it vanishes straight out of the current account as soon as we've been paid and that removes any risk of it not ending up where it's needed!

One thing to think about - do you actually have that £192 left over at the end of the month or is that currently getting frittered? A spending diary may be useful here.

ELM1981

Firstly thanks for the information, answers in line below

EssexHebridean wrote: »

A suggestion with your OH is to avoid the risk of him feeling "useless" and as though he isn't contributing is for him to contribute in a non financial way - so dealing with most of the housework, taking care of the shopping, cooking if that's something he can do (and learning to cook if it's not!) - there are more ways to contribute to a relationship than just with money.

Yes we have recently gone that route, he has taken on all the housework which is a little odd for me not having to do any of it as we split it before. But does mean I get to relax more in the evenings and take on bits of overtime when they pop up.

With the loans, check whether there is an advantage to paying them off early. If there's not, then set the DD for the Virgin card to the minimum, and throw every spare penny at Barclays. Remember also to set a reminder on your phone or email account to prompt you ahead of when that 0% ends - as the interest rate will no doubt hike when it finishes.

Minimums on everything are on DD already just so nothing is forgotten and rates not lost. The loans are my target as both have advantages in terms of interest savings when paid back early as interest is added monthly based on total amount and I find no over payment maxes or anything silly. I need to have a talk to them just in case I have missed something in the original agreement information. So im technically tackling my largest debt first :eek: well minus the mortgage.

Stick at least £1000 of this into an account as your emergency fund, only be to touched in a genuine emergency, and consider using some of the balance to pay things like insurances up front when they become due - then you can continue to set side your monthly amounts and the money will be waiting there for the next year's policies when they become due.*

Excellent idea, will do, I have an unused esaver account I can put this in thats instant access and currently unused.

Telephone (land line)................... 17.40 Can you make a saving here by using some of your cash to pay a year up-front, then continue to set aside money monthly ready for the next year?
Mobile phone............................ 28 Any chance of reducing this - are you tied in to a contract?
Internet Services....................... 24 Seems high - have you shopped around?
Groceries etc. ......................... 240 You can knock at least £50 a month off this easily - and more if you want to be really determined about it
Car maintenance (including MOT)......... 20 As a rough guide if you're looking to start setting aside money for car expenses months - we budget £155 a month which accumulates into an account and pays tax, insurance, breakdown, servicing, MOT and depreciative costs like tyres for our 2 cars - looks like your tax & insurance are a fair bit more than mine though
Medical (prescriptions, dentist etc).... 10 Is there a saving to be made using a pre-paid certificate for prescriptions or is this medical insurance or something?
Buildings insurance..................... 15.90 Is this buildings and contents?
Contents insurance...................... 0 See above

Phone and broadband, I am tied in for a couple more months as it was a set term deal I went into before I can change this one but then will. And have been looking a the pre pay when we do.
Mobile, will be switching to PAYG as I dont use it that much and get a company phone too so in an emergency can use that.
Groceries, I have recently started using YNAB and to my horror realised we had spent £600 one month on food!! So 240 is what we have got down to so far, will keep squeezing here as the other half learns to cook more
Car, need to sit down and see what the car has truly cost me in recent years, I did think I had underestimated here especially when I now think of tyres, I think I will have to allocate more here as being mobile for getting to work is needed for me.
Medical, I havent looked into medical insurance,etc. I dont really ever visit the doctor, I have only put money here as I know my teeth will need a check up, clean and maybe a filling in the next year.
Building/Contents, yes it is for both.

One thing to think about - do you actually have that £192 left over at the end of the month or is that currently getting frittered? A spending diary may be useful here.

I have YNAB so still a work in progress, I think I do have about that much left but like the car, im not putting enough away just yet so bills are still knocking me back at times.

Long road ahead time, I have learnt more about interest rates and debt in general in the last month than I have known most of my life. Just keep thinking why oh why didn't I do this sooner.