Can you still love your luxuries while defying debt? Let's find out...

Misty_Blue

I've been on MSE for a lot of years now, though never had a diary. My time on the forums has covered everything from being a broke student, to coping with debt through redundancy, to making pretty good money and having minimal debts. Now, I find my situation changing again, and it appears the debts have snuck back up on me, the pesky things! :eek:

I am self-employed, and until a few months ago was making a very comfortable monthly salary. However, I've seen it reduce by about £500 a month recently, but of course I didn't adjust my spending accordingly, and now I find myself here, wanting to get a grip on things.

A mini biography. Mid 30s, live with OH and two beautiful dogs. Last summer we moved to a rented house in a gorgeous village, which we love. Although we can cover our monthly bills fairly comfortably, we do both like the finer things in life, and therefore we tend to "burn" money on fancy hotels, dinners out, expensive cocktails etc. We do pay more than the minimum on our credit cards, but otherwise we tend to coast along and not really put a huge amount of effort into paying them off. I admit that I am the worst one for impulse purchases and throwing them on the plastic because "it won't make much difference in the long run!"

We've just come back from a holiday to Las Vegas, where we were lucky enough to win quite a bit of money. We brought back $2000 (about £1400) of it, some of which I planned to put aside towards the next holiday, and throw the rest at debt. HOWEVER. Life has a way of throwing a spanner in the most soundly laid plans! On the way back from the airport, our car started making a hideous noise. It's currently in the garage, waiting to be stripped down, but the mechanic thinks the engine sounds terminal. And worse, the car is still on finance. This has really given me a wake-up call, as we saved up to go to Vegas and then all but emptied our savings accounts for spending money and shopping. Now, I'm rather worried about this car situation...

Without further rambling, then. As the title would suggest, I want to see if it's possible to crack on with reducing debts, but at the same time live in a little bit of luxury, at least. In other words, I don't want to cut out our treats completely, and want to have reasonably regular things to look forward to. But there will be (hopefully!) no putting treat things on plastic and worrying about them later. If I want it, it has to be paid for upfront (breaking the habit of a lifetime!)

Let battle commence!

Misty_Blue

SOA. As it's 2am, some of this is guesswork because OH is asleep and some of the cards are his. I also need to confirm some of the APRs. But in any case, I was shocked when I totalled this up. In my head, we owed a combined total of probably £15-£18k. Almost £30k is bad, by anyone's standards!

My monthly income is changeable, because of SE. I've erred slightly on the conservative side, just in case.

The info in red is to be confirmed.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 1500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 146.6
Rent.................................... 575
Management charge (leasehold property).. 0
Council tax............................. 151
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 36.92
Telephone (land line)................... 35.86
Mobile phone............................ 36.05 (this is for two phones)
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0 (Included in phone package)
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 200
Road tax................................ 25.37
Car Insurance........................... 57.78 (includes breakdown cover)
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 85.27 (not negotiable, as the dogs need the best cover and cheap pet insurance is usually false economy)
Buildings insurance..................... 0
Contents insurance...................... 13.46
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 0 (Need to start one though, as the car situation proves!)
Dog food................................ 120
Savings................................. 100
Total monthly expenses.................. 2115.43

Assets
Cash.................................... 849.49
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. ???? Who knows, at this time?!
Other assets............................ 0
Total Assets............................ 849.49

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 3666.25..(146.6)....7
Total secured & HP debts...... 3666.25...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax 1......................627.......6.27......0
Natwest Loan...................4771.87...174.7.....0 (Need to check APR)
Barclaycard ...................6132.16...161.8.....34.06
Virgin Credit Card.............4709.04...114.......22.9
Next...........................853.14....43........17
Treadmill......................432.54....16.02.....0
Natwest Mastercard.............3342.33...75.21.....17.43
Halifax 2......................1969.73...19.7......0
Total unsecured debts..........22837.81..610.7.....-

Monthly Budget Summary
Total monthly income.................... 3,400
Expenses (including HP & secured debts). 2,115.43
Available for debt repayments........... 1,284.57
Monthly UNsecured debt repayments....... 610.7
Amount left after debt repayments....... 673.87

Personal Balance Sheet Summary
Total assets (things you own)........... 849.49
Total HP & Secured debt................. -3,666.25
Total Unsecured debt.................... -22,837.81
Net Assets.............................. -25,654.57

Misty_Blue

Now, after the bad, let's have a bit of good news! My income had tailed off in recent months because of a decreased workload. However, this looks set to increase quite a bit over the coming weeks/months. Also, OH is due a payrise from September. It won't be a huge one (should be somewhere between £100-£200 a month), but all to the good. I also recently started some freelance audio typing, working from home. Early days but it's bringing in about £150 per month so far, and I hope this will increase.

However, I've just taken two weeks holiday, and therefore my income for August will be significantly reduced. This would have been ok, more than likely, just by being careful with money for a few weeks until the next pay day, but now we have the whole thing with the car, so will have to see. The sooner we get some news about it, the better and then I can put some planning into action!

Bobarella

Good luck with your DF journey. Vegas sounded fun though hope your car may be fixable.

[Deleted User]

Hey Misty Blue,

Sorry to hear about the car :-(

I am also someone who is trying to pay off debt whilst still enjoying some of the finer things in life, just can't give them up!

Las Vegas is amazing isn't it, we won 2500USD when we went there, spent pretty much all of it as we went to New York straight after!

Looking forward to seeing you pay off this debt!

Good luck.

Dxxx

Misty_Blue

Thanks, both. Vegas is indeed amazing. We managed to win about $5000 this trip, but we spent quite a bit of it while we were out there, on helicopter trips etc. We wouldn't have done, had we known the car was about to self-destruct, but what's done is done and at least it's given me the kick up the backside I really needed!

The main current account has just over £2300 in it, with OH due to be paid this week, about Thursday. The rent is due out on Tuesday, which is £575. I also have £849.49 sitting in various accounts, at least part of which I'd hoped to put to a credit card, but until I find out some news about the car I'd better keep it where it is. I don't think we'll find out this week as the garage owner/head mechanic is on holiday, but OH is going into town to pick up their courtesy car tomorrow, so at least we have transport again.

I spent £42.34 online with Approved Foods today, but by my reckoning this means we won't have to buy any cleaning products, including laundry tablets or dishwasher tablets, until 2017! Luxury alert: included in the order is a box of "cocktail mixers." These are pre-mixed pouches, meant to be added to Champagne to make fizzy cocktails. Absolutely not an essential, of course, but as OH's birthday is in a few weeks, I thought these might be nice to try. We already have the fizz in the drinks cupboard, and the box was £4.99 for five mixers, as opposed to about £10-£12 per cocktail if we went out instead! So, MSE in its way.

[Deleted User]

Wow $5000 is amazing!!

I would leave the cash in those accounts, see what the damage is with the car then you can re-jig it to see what you can afford to pay to the CC's.

I love panic buying as my DH calls it. We don't have a lot of storage space but I don't think that is a valid reason to not buy stuff when the price is right!

Luxury alert - good for you. We all need a wee treat now & again. What better excuse than a birthday!

Dxxx

ViolaLass

Do you actually have £670 left at the end of every month?

Have your dogs really gone through £1000 of vet bills in the last year?

lilian1977

Hi

Have you tried signing up to a mystery dining website? We go out about once a month for dinner and once you've submitted the report to them and it's been approved you get the money back within a month. Maybe nothing around your area but worth a look.

Subscribing, good luck! x

Misty_Blue

Deleted_User wrote: »

I would leave the cash in those accounts, see what the damage is with the car then you can re-jig it to see what you can afford to pay to the CC's.

Yes, it will have to stay there for now. I'm itching to try and clear my Next card, but it will have to wait for car news.

ViolaLass wrote:

Do you actually have £670 left at the end of every month?

Have your dogs really gone through £1000 of vet bills in the last year?

I didn't have £670 left, because I was seeing it as "free money" and spending it on Chanel/Victoria's Secret/£12 a glass cocktails. So this is what has to change.

As for the dogs, this year has been quiet, vet bill wise (touch wood). Both dogs are young and have been in good health so far. However, previously, one of my dogs (no longer with us ) required medication which was £180 per month, and he was on it long-term. His insurance premiums at the time were £40 a month, so the maths speaks for itself. The same dog also generated a £7000 vet bill in two visits a couple of years ago. My insurance paid it without a murmur and I was able to take him to the top specialist in the country. They also paid for him to be neutered (£350, as it was more complicated than standard), and for dental work. Most insurers don't cover either of those things. Another dog, also no longer with us, once went from being in perfect health at 9am, to being rushed into the vet's surgery at 11am with a gastric torsion. £1000 bill for emergency surgery, fully covered by insurance. I would never self-insure or just get the cheapest quote possible with insufficient cover.

lilian1977 wrote:

Have you tried signing up to a mystery dining website? We go out about once a month for dinner and once you've submitted the report to them and it's been approved you get the money back within a month. Maybe nothing around your area but worth a look.

Hi Lilian. I actually work for a mystery shopping company. I don't mean as a mystery shopper, I mean as my actual job, doing business development. My local area doesn't really have any mystery dining, sadly. OH does quite a lot of mystery shopping though. I didn't include it on my SOA, as it's not guaranteed, but he usually brings in £100-150 a month on average. So that will go to debts, from now on, instead of being frittered on treats all the time.

NSD today so far for me, but OH took out £10 to cover train fares into the city, to pick up the courtesy car (which apparently is filthy and needs a good clean!). I found a scratch card with £5 waiting to be cashed in, so a net result of -£5 today.

We're off to a big dog show in Edinburgh this weekend, so will need petrol for that. However, instead of staying overnight in a fancy hotel as we usually do, we will be doing it in one day. I'll also take Coke and snacks from home to save us spending a small fortune on bacon rolls while we're there! The entry fees were paid in advance.

Misty_Blue

45 minute audio file typed up tonight, plus the first 15 minutes done on an hour long one that's due at the end of this week, so some extra £££s on the way. OH also has about £150 of mystery shops lined up for tomorrow, which is excellent.

The garage called about the car. They've partially stripped it down and discovered that the oil filter was blocked and so no oil was getting to the engine. The mechanic said he is "70% sure" that it's not terminal after all, and if that's all it is, we would be looking at a bill of about £150!!! Everything crossed that this is the case!