Think I've had a light bulb moment .... SOA just Added

kazza292_2

look we obviously need to drastically see where our overspends are and it is easier than you think getting it all on paper.. im trying to re do it

i put my soa in place first with what i called spare money of say 400 in a fantasy world i suppose not looking at savings i should have in place for car/ xmas etc etc

kazza292_2

ok ive tried to alter things .
I am in process of changing the following list so have reduced or not included in this soa as they will be off with immediate effect.
being
-no sky/netflix
-water meter installation soon
-mobile phone ( my contract almost up and wont renew) husband just started his
-grocery bill reduced but realism of tobacco added (hopefully my oh will stop ASAP )
-land line is in with internet
-car insurance includes breakdown cover
-I have organised life insurance to top up our occupational schemes to cover mortgage, this is included below and have tried to put things as realistic as i can
i am going to look at eat well for less links etc, doing a massive car boot at weekend to start ball rolling, husband was ace last night i have to say and i had a mini breakdown in work today but overall i feel better for making changes. I plan to get an emergency fund up and running quickly 800 next 2 months... and then hit credit card at a time, i am determined not to buy a single item unless it is essential. the hair cuts i will try to reduce

[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1650
Partners monthly income after tax....... 1950
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 3680

Monthly Expense Details
Mortgage................................ 590
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 350
Clothing................................ 30
Petrol/diesel........................... 250
Road tax................................ 5
Car Insurance........................... 70
Car maintenance (including MOT)......... 80
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 40
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 10
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 20
Other insurance......................... 10
Presents (birthday, christmas etc)...... 50
Haircuts................................ 40
Entertainment........................... 40
Holiday................................. 40
Emergency fund.......................... 50
Total monthly expenses.................. 2067


Assets
Cash.................................... 0
House value (Gross)..................... 145000
Shares and bonds........................ 0
Car(s).................................. 12000
Other assets............................ 4000
Total Assets............................ 161000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 108000...(590)......2.39
Total secured & HP debts...... 108000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
tesco loan.....................20500.....281.......3.4
nationwide loan................20000.....370.......3.9
mbna cc........................5800......87........18.9
barclyacard cc.................2200......50........17.9
barclaycard cc.................8100......165.......0
santander loan.................5000......125.......0
Total unsecured debts..........61600.....1078......-


Monthly Budget Summary
Total monthly income.................... 3,680
Expenses (including HP & secured debts). 2,067
Available for debt repayments........... 1,613
Monthly UNsecured debt repayments....... 1,078
Amount left after debt repayments....... 535

Personal Balance Sheet Summary
Total assets (things you own)........... 161,000
Total HP & Secured debt................. -108,000
Total Unsecured debt.................... -61,600
Net Assets.............................. -8,600

[/t

[/tt]

[Deleted User]

kazza292 wrote: »

husband works as" police staff" in custody,, frightened now about him perhaps being disciplined in some way

Currently, he's OK, because the debts aren't unmanageable.

However, you need to consider what would happen if you were to become unemployed, long term sick, disabled etc., resulting in a substantial drop in the household income.

It is for this reason, you should be looking to clear these debts (especially the large and high APR ones) as soon as, and as quickly, as possible.

I see from your revised SOA, that you have over £500 left each month.

If you do actually have this amount left, you should be using it to hammer those debts, starting with the two high APR ones.

At £500 pm, you could clear the MBNA card in just 13 months.

enthusiasticsaver

Have you tried to put the Mbna and Barclaycards on 0% deals? The payment on the mbna card does not even look enough to cover the interest. I would sort that one out urgently either by moving it to a 0% deal if you can still get credit or by focusing the spare £500 to that each month as bedsit bob suggests.

Sanctioned_Parts_List

kazza292 wrote: »

ok ive tried to alter things .

Thanks kazza, and well done for taking swift action on some of the waste. Overall your plan for the next couple of months looks solid.

In terms of repayments, ES's advice on switching to 0% is sensible, but if this is not possible debt snowballing is far and away the lowest cost method of clearing debts rapidly, as well as helping you to develop a saving habit (that is, at the end, the giant debt-fighting snowball you've amassed should be targeted at your savings account).

What I would be tempted to do, especially in these early days, is keep a spending log - just pen and paper will do, tracking income and outgoing and keeping a running total. (Or you can keep the same on a spreadsheet or in dedicated software*.)

The reason for this exercise is to take the uncertainty out of your spending. After a month or so, you'll be able to tot all of this up and come up with a razor-sharp SOA with which to fine tune your plan. Maybe your surplus isn't realistic - or maybe you can manage a lot more. You'll know if you keep a proper record.

* I never budget, so cannot bring myself to recommend YNAB.

kazza292_2

Thanks guys,, it's been an emotional week,
And I've started to feel less fear
I'm truly relived that this has happened and although I have felt so frightened all week I am FULL of determination now, husband has been great too
My spending is going to completely change and I'm quite excited to see just what I can achieve .

I used to not believe in things I am about to say but have seen a few white feathers this week and Sunday night was weird ...when I had my moment , thank god no one knocking on my door has made us change our bad ways xxx and breathe

kazza292_2

looking at balance transferring mbna cc and barclaycard cc total 8090. to 0% deal
found Santander offering ( with 8/10) chance the following
fees and interset- £1156 ,23 month deal 0%
is this good to go ahead with

kazza292_2

ive got this big impulsion to put some money away first to make me feel a bit safer and see something grow .
should i do the balance transfer do you think

kazza292_2

i dont understand when you say" soa unclear as doesnt say when things are due" ?

kazza292_2

thanks going to change approach and and hit cards , massive car boot at weekend can be a safety pot