mad at myself: £12K and counting

luffa

Not even sure where to start. I hate debt. It makes me feel miserable. I can't seem to stop spending though, and I'm completely rubbish at budgeting. Income is decent, I own my flat (with a large mortgage but this is London - rent would've been higher). Yet I'm drowning in debt and it's not going down. Last week it was the last straw.... tooth abscess, root canal re-treatment - part of it is paid by private insurance provided by work, but there's still a good chunk left to be paid by me, to the tune of £500. And of course I didn't have any emergency savings... so that's going on a credit card next week

Grand total credit card debt is £12,075 (AA, BOS, and Barclaycard)... most of it on 0% promo rates for another 18-20 months or so (I have to check dates). £700 of it is on 7.9% though on my Barclaycard, so I have to get rid of that first (plus the tooth abscess money) - can't balance transfer anymore as the promo rates on the AA and BOS cards are no longer valid, not for new transfers. I've got no other loans or debt apart from the mortgage. Credit rating is unblemished so at least that's not a concern.

I'm not sure where to start. I've changed utility providers, reduced TV package/net/phone cost, stopped eating out, and now trying to but 'down a brand' for everything - from food to clothes. Holidays - for now not taking any until summer 2017 - if I can find money for it, I won't be putting that one on a card.

Any other ideas? Thanks for reading.

Malmo

Post your Statement of Affairs (SoA) using the site here.
Use the "MSE" option to format the results correctly for this forum. Other members can then provide constructive feedback on your circumstances.

luffa

Thanks malmo. I did complete the SOA, however the parts in blue are targets - not what I actually spend - as I have no idea how much I spend on these things. Credit card payments are also target/ideal payments, not minimum ones.

I left out holidays for now as I won't be taking any for a while. All amounts are rounded up, so that I don't use decimals.

Thanks for any suggestions... feeling so depressed now.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 2522
Partners monthly income after tax....... 0
Benefits................................ 83
Other income............................ 500
Total monthly income.................... 3105

Monthly Expense Details
Mortgage................................ 1000
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 59
Council tax............................. 99
Electricity............................. 25
Gas..................................... 30
Oil..................................... 0
Water rates............................. 14
Telephone (land line)................... 30
Mobile phone............................ 31
TV Licence.............................. 13
Satellite/Cable TV...................... 30
Internet Services....................... 5
Groceries etc. ......................... 250
Clothing................................ 100
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 107
Childcare/nursery....................... 395
Child activities and school dinners..... 115
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Mortgage insurance...................... 35
Presents (birthday, christmas etc)...... 50
Haircuts & toiletries................... 50
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 2568


Assets
Cash.................................... 0
House value (Gross)..................... 400000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 400000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 194500...(1000).....2.34
Total secured & HP debts...... 194500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
BOS............................7600......200.......0
AA.............................3700......200.......0
Barclaycard....................675.......100.......7.9
Total unsecured debts..........11975.....500.......-


Monthly Budget Summary
Total monthly income.................... 3,105
Expenses (including HP & secured debts). 2,568
Available for debt repayments........... 537
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... 37

Personal Balance Sheet Summary
Total assets (things you own)........... 400,000
Total HP & Secured debt................. -194,500
Total Unsecured debt.................... -11,975
Net Assets.............................. 193,525

roxykitten

I don't have much to add as debt wise I'm pretty much in the same boat! But I will follow your journey while I work at my own!

MallyGirl

luffa wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 2522
Partners monthly income after tax....... 0
Benefits................................ 83
Other income............................ 500
Total monthly income.................... 3105

Monthly Expense Details
Mortgage................................ 1000
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 59
Council tax............................. 99
Electricity............................. 25
Gas..................................... 30
Oil..................................... 0
Water rates............................. 14
Telephone (land line)................... 30 why so high
Mobile phone............................ 31
TV Licence.............................. 13
Satellite/Cable TV...................... 30
Internet Services....................... 5
Groceries etc. ......................... 250
Clothing................................ 100 need to cut down here
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 107
Childcare/nursery....................... 395
Child activities and school dinners..... 115
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Mortgage insurance...................... 35
Presents (birthday, christmas etc)...... 50 a bit high
Haircuts & toiletries................... 50 need to cut this down
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 2568


Assets
Cash.................................... 0
House value (Gross)..................... 400000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 400000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 194500...(1000).....2.34
Total secured & HP debts...... 194500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
BOS............................7600......200.......0
AA.............................3700......200.......0
Barclaycard....................675.......100.......7.9 Pay min to the others and max to this till it is gone.
Total unsecured debts..........11975.....500.......-


Monthly Budget Summary
Total monthly income.................... 3,105
Expenses (including HP & secured debts). 2,568
Available for debt repayments........... 537
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... 37

Personal Balance Sheet Summary
Total assets (things you own)........... 400,000
Total HP & Secured debt................. -194,500
Total Unsecured debt.................... -11,975
Net Assets.............................. 193,525

Telephone (land line)................... 30
Mobile phone............................ 31
Satellite/Cable TV...................... 30
Internet Services....................... 5

That is nearly £100 on phone/TV/internet. Surely there must be cheaper.

how old is your child?

NotNormal

Okay look at the blue figures, that's where your focus needs to be.
For a start, not knowing what you're spending is normally a bad thing because it means you're not in control.

Have you considered online shopping for your groceries? This way you can maintain control and shop around for the best deals? I personally rate mysupermarket because you can compare supermarkets but also you can look at the lowest priced per unit items - basically better value as sometimes it works out best to spend £1 more for twice the quantity of something. Although obviously work out where it's worth it.

Clothing - what are you spending on needs and what is wants? For example I just spent £100 yesterday but that was cold weather pjs, socks, undies and leggings for two and was all necessary (due to a lack of tumble dryer it takes a few days for clothes to dry, due to being a small household it takes a few days to get together an entire load of washing...). All I now need clothes wise for winter is a couple of extra jumpers and considering a spare coat as I only have one. Which will mean no more/minimal clothes spends.

Haircuts/toiletries - do you need to regularly get a haircut or could you DIY it? I have been to the hair dressers twice in two years, both times I shopped around for the best deal and paid £10. Treatwell offers £10 for new customers if you've not used it before. Both times I went it was for a restyle. For a trim I just do it at home. Toiletries, check what you actually have in. I have so many body lotions it's ridiculous. At one point I even had 10 bottles of shower gel still waiting to be used! I'm currently on my last one so will buy some more. Home bargains is great for toiletries, I have an unopened shampoo and conditioner but as soon as I open those I will buy more. I use alberto balsam so I buy them on offer at 4 for £3 or something and those tend to last me a couple of months at the minute due to short hair. Tampons/pads I also buy there as they do huge boxes cheaply. Though I will admit I'm lucky in the respect I only need them a couple of times a year.

Presents - buy things on offer and put them in a big box. You'll spend less and not have to stress last minute. Also "it's the thought that counts" is very much a thing. That's not to say don't buy something expensive, but it should be about the feeling behind it. A bath gift set may not mean anything, an iPad may be cool but meeting in the middle and buying a family photo shoot for your mother because she's always wanted a decent one in a frame is more likely to make her smile. Get the idea?

Entertainment - What is included in this? For example cinema, takeaway? How can you lower this? Buy a pizza from the supermarket/make your own? Collection instead of delivery to avoid delivery/minimum spend charges?

luffa

Thanks @MallyGirl: my child is year 4 so school age.

Mobile phone - can't change that until March 2017 but will def consider sim-only package when contract ends

Phone/TV/Internet: £17.40 is line rental, £22.40 TV (contract ends in 10 months...), £12 is a phone package that includes international calling - can't change that one as I do conference calling for work and I can't use Skype, not reliable. Internet is currently free for 10 months, that £5 is in fact web hosting (which I need for a hobby)

Your suggestion on credit card payments is bang on... tackle Barclaycard first, as the other 2 cards have long term 0% rates.

luffa

@NotNormal: thanks so much. I'm already shopping online and trying hard to reduce my weekly cost for that, I should be able to get under £200!

The rest are budget estimates that I want to stick to going forward... I'm afraid to check my bank statements and credit card to calculate actuals. In any case, a lot of spending was on holidays this year, totally unbudgeted... also some theatre and concert tickets. I don't think it's clothes or presents or eating out. But, plan is to enter all spending in an app and look at it again after 1 month.

NotNormal

luffa wrote: »

@NotNormal: thanks so much. I'm already shopping online and trying hard to reduce my weekly cost for that, I should be able to get under £200!

The rest are budget estimates that I want to stick to going forward... I'm afraid to check my bank statements and credit card to calculate actuals. In any case, a lot of spending was on holidays this year, totally unbudgeted... also some theatre and concert tickets. I don't think it's clothes or presents or eating out. But, plan is to enter all spending in an app and look at it again after 1 month.

That's absolutely the right way to do it. Things vary and that's okay, just hold onto your receipts and then sit and plug it all into your budget. You Need A Budget (YNAB) is apparently great software, I unfortunately can't use it as I'm on a chromebook so I made my own spreadsheet but took some tips from there. Although I'm shocked! Just re-did my SOA and apparently I have £300 a month to play with after expenses, where the hell is it all going?

luffa wrote: »

Thanks @MallyGirl: my child is year 4 so school age.

Mobile phone - can't change that until March 2017 but will def consider sim-only package when contract ends

Phone/TV/Internet: £17.40 is line rental, £22.40 TV (contract ends in 10 months...), £12 is a phone package that includes international calling - can't change that one as I do conference calling for work and I can't use Skype, not reliable. Internet is currently free for 10 months, that £5 is in fact web hosting (which I need for a hobby)

Your suggestion on credit card payments is bang on... tackle Barclaycard first, as the other 2 cards have long term 0% rates.

Don't feel too bad, I'm currently stuck paying £56 for TV package. Ends the start of next year. Won't be downgrading, I'll just get rid all together. I'll switch to NowTV/Netflix, I'll probably keep the broadband/landline with them if I can get another free broadband deal.

luffa

Thanks. I forgot to mention Netflix (it's included in the £30 I listed in the SOA though) and also forgot my gym membership which is £50. I won't get rid if that as it's helped me lose weight and feel better and it's cheaper than PAYG if I go 2x per week (and I currently do 3x per week).

Hopefully I have not missed anything. Food for thought.

luffa

PS. I just got 6 Amazon boxes. I ordered LED bulbs of different sizes and they came for some weird reason in separate packages... the look on the delivery guy when he handed me 6 packages.. a good one for my spending habits.