HELP! Rubbish at this!

WannabeRich

Can definitely get rid of cable in January when the contract is up. Definitely. Will ask for a cheap Freeview box for Christmas.

enthusiasticsaver

WannabeRich wrote: »

Hello everyone.

I'm 45, and only just now getting to grips with my money. Isn't that awful? I've been self-employed for 22 years, NO PENSION, NO LIFE INSURANCE, and am behind with my National Insurance.

I've always been hopeless with budgeting, and just relied on earning more to get me out of tight spots. But I've finally got a mortgage and that has REALLY focussed my mind on sorting out my cash.

My SOA is below. Recently, one of my regular clients cut my hours by 50% so my money has halved. I'm also married now, and don't get the Tax Credits anymore (in fact, I have an overpayment to repay). I have £2,790 on a Barclaycard that will lose its 0% next month. I applied for an MBNA 40mnths 0% card, and I got it, but only for £1,500.

BUT I recently stopped smoking and that's saving me over £250 a month.

I have a tax bill (2014/15) to pay soon (don't know exact amount, accountant is calculating it, maybe £3k), plus everything you see below. Then I'll have another, larger, tax bill (2015/16) to find.

I feel sick. This budget below is bare bones -- I have NOT been spending this little, I think I must have been overspending for most of my life.

What do I do? Where do I start?

Oh -- I have a husband, but we haven't merged our finances. He pays me £489 a month, which is 50% of our shared household bills (mortgage, Council Tax, etc).

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1379
Partners monthly income after tax....... 0
Benefits................................ 137.6
Other income............................ 680.17
Total monthly income.................... 2196.77

Monthly Expense Details
Mortgage................................ 735.8 Is this on the best rate?
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131
Electricity............................. 69.5
Gas..................................... 69.5
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 0
Mobile phone............................ 48 You could get a cheaper deal than this or is this for more than one phone?
TV Licence.............................. 12.12
Satellite/Cable TV...................... 22 Can you get rid of this and just to freeview?
Internet Services....................... 5.99
Groceries etc. ......................... 200
Clothing................................ 45 Is this for the children?
Petrol/diesel........................... 10 This looks low. Do you really need a car?
Road tax................................ 15
Car Insurance........................... 35
Car maintenance (including MOT)......... 17.5
Car parking............................. 0
Other travel............................ 70
Childcare/nursery....................... 90
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 14
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100Can this be reduced?
Haircuts................................ 20
Entertainment........................... 100 Can this be reduced?
Holiday................................. 50You may have to put these on hold until debt cleared or income rises
Emergency fund.......................... 50
Total monthly expenses.................. 2051.41


Assets
Cash.................................... 1500
House value (Gross)..................... 330000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 500
Total Assets............................ 333000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 132700...(735.8)....2.99
Total secured & HP debts...... 132700....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................2790......64........22
Tax Credit repayment...........2700......91.11.....4
Dad............................7000......167.5.....0
Total unsecured debts..........12490.....322.61....-


Monthly Budget Summary
Total monthly income.................... 2,196.77
Expenses (including HP & secured debts). 2,051.41
Available for debt repayments........... 145.36
Monthly UNsecured debt repayments....... 322.61
Amount short for making debt repayments. -177.25

Personal Balance Sheet Summary
Total assets (things you own)........... 333,000
Total HP & Secured debt................. -132,700
Total Unsecured debt.................... -12,490
Net Assets.............................. 187,810

Reproduced on Moneysavingexpert with permission, using other browser.[/i]

You have a shortfall so there are various things you can do. Can you move the Barclaycard on to a 0% deal to get this down? Will your Dad give you some breathing space for repaying the loan to him? Can you use some of your £1500 cash towards repaying some of your debt? Things like holidays, entertainment, clothes and satellite tv could be reduced as could the mobile phone bill. Your car upkeep costs are very high considering you obviously don't use it/them much as the fuel costs are low. Can you get rid of one of the cars? Presumably one or both of you use public transport as there is £70 in the soa for that. Where is the mbna debt on your soa?

On the plus side you have lots of equity in your home, there are some trims in your soa to get you within budget and your unsecured debt is not astronomically high so if you resolve to do without holidays, clothes for you and partner and cut down on birthdays, entertainment etc and maybe reduce the amount to your dad to £100 per month until the tax credits overpayment clawed back you could definitely live within your income.

kazwookie

Hello

Can you find another customer/s to up your hours, what type of work is it, can you look online for similar or agency work to fill in the 50% drop in hours?

Tax bill for 14/ 15 you really need to know NOW how much that is, when does your tax year end as it seems to me you are at least a year behind,
As most folk me included are working on tax bill for 15 / April 16

Just out of pure nosyness, why does your husband pay you, surely if you are married every thing should be joint.

Good luck

Moneywhizz

There is no need to feel embarrassed about your money situation, especially on a board like this where everyone is looking for help in becoming debt free. There have been a few suggestions already for you to look at. It is just a matter of changing your way of looking at things and always being sure you are doing the best you can with the money you have. Sounds like you really want to make this work so keep posting and you will keep getting help. This can be done and it shouldn't take too long.

WannabeRich

My car costs are high, aren't they? Hmm, that's a really good point.

I don't really use mine very much -- lately, it's just been a couple of times a month. We moved somewhere where everywhere I go is within walking distance so I walk everywhere! The £70 travel is trainfare for when I go into London for work. I wouldn't get much for my car (althoigh I Dan check it online) and I certainly couldn't get a comparable car for that money.

But I don't need the AA membership if I never go anywhere! So that's £70 I can drop.

Thank you

WannabeRich

Just looked my car up on Parkers, and it's saying it would resell for £500!

I don't know that it's worth selling it? I do need a car occasionally and I'd never be able to buy such a reliable car for £500.

Am I thinking about this the right way? Quite confused now. I just feel I'd be giving up a LOT of independence if I sold my car.

WannabeRich

Yes you're right - I'm a year behind with tax. Which has also given me a massive fine.

WannabeRich

Oh, don't share finances with husband. His credit rating isn't very good at all and I didn't want to be tangled up in money stuff with him yet -- as you can see, I'm bad enough at doing my own!

I value my independence very highly. Probably shouldn't have got married either time, to be honest, as I'm fiercely independent. But I did, so here we are.

Moneywhizz

Personally I wouldn't give up the car unless you can't manage to make enough savings elsewhere in your budget. Hopefully with the changes you are planning and a more realistic contribution from your husband you should be able to get on top of things and start saving/ paying off your debts.

WantToBeSE

HI WannaBeRich

You've completed the hardest and most important step- to sort through your debts and see how much you owe.

Good news? The only way is up now! Looking at your SOA, I'd say that holiday money can go straight towards debt, as can half of the presents money.
I know it's really hard to say to people 'I'm on a budget this year, how about we only buy for each others kids/have a secret santa/only spend £X amount', but it is possible.

Re the car,, you have to work out what would be cheaper, using public transport more but erasing all of your car expenses, or not.

Your grocery budget looks great at £200, but make sure it's realistic. Will you often go over this amount?

Good luck