Getting on track but appreciate input!

MartialArtMan

I've been in debt for most of my childrens lifes with a few spells of paying it all off only to slip back to where I was before. So here I am looking to sort this once and for all. My LBM occurred when I realised just how much I am paying Barclays for my overdraft each month; that £200+ would be much better in my own pocket....

This is my SOA which I've not really analyzed until I post this thread, although couple of surprises in there like how much gifts cost per year and in honesty that could be a bit of a conservative figure.

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................ 1990
Partners monthly income after tax....... 250
Benefits................................ 82.8
Other income............................ 0
Total monthly income.................... 2322.8

Monthly Expense Details
Mortgage................................ 442
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 123
Electricity............................. 41
Gas..................................... 41
Oil..................................... 0
Water rates............................. 17
Telephone (land line)................... 23
Mobile phone............................ 50
TV Licence.............................. 12.12
Satellite/Cable TV...................... 31
Internet Services....................... 0
Groceries etc. ......................... 440
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 35
Car Insurance........................... 130
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 0
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 28
Contents insurance...................... 0
Life assurance ......................... 24
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1817.12


Assets
Cash.................................... 0
House value (Gross)..................... 210000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 213000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 92000....(442)......0
Total secured & HP debts...... 92000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................5140......118.......0
Overdraft......................3850......100.......0
Overdraft......................5000......100.......0
Total unsecured debts..........13990.....318.......-


Monthly Budget Summary
Total monthly income.................... 2,322.8
Expenses (including HP & secured debts). 1,817.12
Available for debt repayments........... 505.68
Monthly UNsecured debt repayments....... 318
Amount left after debt repayments....... 187.68

Personal Balance Sheet Summary
Total assets (things you own)........... 213,000
Total HP & Secured debt................. -92,000
Total Unsecured debt.................... -13,990
Net Assets.............................. 107,010

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.
I have 2 cars but also am paying the insurance on my eldest daughters car (1st year driving to help her out with the costs). This is £110pm and will finish in December when she will be taking it over herself. My own cars cost £240 and £140 per year to insure.
(SOA updated to reflect this)

Both my girls are working, Pizza Hut and KFC. I pay for my youngest daughters mobile each month £32 and will continue to do so for the nest 2 years (as I did for eldest daughter). I also give youngest daughter travel money for college (£120pm), lunch money (£60pm) and pocket money (£40pm)....Wow! I told her this will be reviewed after Xmas when I will be stopping her pocket money as she is working anyway. (SOA updated to reflect this)

I repair bicycles on the side so do get a little income from that and I've also started match betting/ sign up offers so that's helping too.

Looking at starting a DFW diary and start possibly start using YNAB

Can't think of anything else to confess to or admit so lets have a look at this thing and see where I'm at. :beer:

MartialArtMan

Oh and Gym member ship thats £17pm, well £34 as both myself and my missus go

National_Debtline

Hi MartialArtMan


I take it that your older daughter is no longer classed as a dependent, as you only appear to be getting Child Benefit for one of them, is that correct?


Re: running two cars, granted your overheads across the two appear relatively low, but I'm just wondering for debate's sake whether the second one might be surplus to requirements? You will know that better than me.


It does look on the face of it like you are capable of moving forward without being reliant on overdraft facilities, although whether you can refinance your existing debts more affordably will obviously depend on your creditworthiness. I can't really advise on further borrowing/consolidation in my capacity but I'm sure others will have suggestions on that score.


Dennis
@natdebtline

MartialArtMan

Thanks for your input.

Unfortunately my credit is not good enough to transfer my overdrafts onto a better deal but I'm working on that.

Yes eldest daughter is 19 (at Uni and Pizza Hut), youngest is 16 (at college and KFC)

My second car is surplus to requirements, my partner doesn't drive! I have my family car and my little 2 seater convertible weekend car (1990 MX5). It's an extravagance and kind of a hobby but I know that I could sell it and save as well as make some money but I'd rather not....Neither car gets used much as I work across the road and the girls are pretty much independent these days.

MartialArtMan

Just been accepted for a Halifax 0% card but looks like they only do transfers from other cards, how can I get my overdraft onto the Halifax card!!!?

-taff

MartialArtMan wrote: »

My second car is surplus to requirements, my partner doesn't drive! I have my family car and my little 2 seater convertible weekend car (1990 MX5). It's an extravagance and kind of a hobby but I know that I could sell it and save as well as make some money but I'd rather not....Neither car gets used much as I work across the road and the girls are pretty much independent these days.

If I were you I'd be adding up everything you spend per month on your cars and seeing how much a whole year costs....


Is there a reason your partner doesn't work so much? given that both of your children don't need looking after anymore.

[Deleted User]

Why aren't you daughters (especially the older one, who is legally an adult), paying something toward the household income?

tlc678910

MartialArtMan wrote: »

Just been accepted for a Halifax 0% card but looks like they only do transfers from other cards, how can I get my overdraft onto the Halifax card!!!?

What is your existing credit card?
If it is a Barclaycard they often offer money to bank account offers for existing customers so you could use the Halifax card to reduce the existing credit card and then wait for a money transfer offer on the existing card.
(Two sets of balance transfer fees though)
Tlc

MallyGirl

Is the new card 0% on balance transfers only? What about purchases?

If also purchases then you could put everything on the card and use the liberated cash to pay off the OD. If not purchases then that is a shame but you applied for the wrong thing

enthusiasticsaver

You need a money transfer card at 0%, (Virgin money and MBNA do some at various lengths, almost 4 years on some but there is a fee so you need to work it out.) Alternative do as Mallygirl suggests and pay maybe your groceries, travel etc and anything else on the new Halifax card and leave your salary in the current account to reduce the overdraft each month. That requires a lot of discipline though as you could be in the situation in a few years time of still having overdrafts plus two credit cards so debt increased. If you cannot trust yourself to be rigorous in sticking to budget and decreasing the overdraft of say £500 per month and only sticking £500 on the Halifax card you might be better off trying for a Virgin card but applying for 2 at the same time may not be successful. You should have researched it better before putting the Halifax application through.

A few other things about your soa. Your partner should be working longer hours given your situation. What is your pension situation? What interest rates are you paying on the credit card and overdrafts. Overdrafts are usually the most expensive form of borrowing. Do your daughters not contribute to household expenses if they are working or is that part time work in addition to studying? How old are they?

ReadingTim

SORN the runaround if you don't want to sell it, knock the gym and sky on the head, go SIM only on the mobiles, reduce the grocery shopping and tell the younger daughter she's taking sandwiches rather than getting lunch money. Entertainment and presents spending should also be cut back, until you're out of the red. That should find you a couple of extra hundred quid a month