Judge me- new lightbulb moment

amy17brook

Hi,

So I'm in debt. Have just had a lightbulb moment that I should probably do something more proactive to clear it. I have done an SOA:

]Statement of Affairs and Personal Balance Sheet[

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1430
Partners monthly income after tax....... 800
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 2312

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 525
Management charge (leasehold property).. 0
Council tax............................. 88
Electricity............................. 33
Gas..................................... 33
Oil..................................... 0
Water rates............................. 59
Telephone (land line)................... 18
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 28
Internet Services....................... 5
Groceries etc. ......................... 400
Clothing................................ 5
Petrol/diesel........................... 20
Road tax................................ 3
Car Insurance........................... 44
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 80
Childcare/nursery....................... 40
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1534


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 1000
Total Assets............................ 3000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Sunny..........................355.42....239.......1299
Vanquis........................231.84....15.11.....29.9
York Council...................500.......30........0
Very...........................250.18....11.43.....44.9
Overdraft......................2000......36........19.94
Robinson Way...................23.35.....23.35.....0
118............................2663.39...156.7.....71.36
Next...........................143.35....8.........25.99
Aqua...........................1250......55........29.9
Rossendales....................1000......20........0
Total unsecured debts..........8417.53...594.59....-


Monthly Budget Summary
Total monthly income.................... 2,312
Expenses (including HP & secured debts). 1,534
Available for debt repayments........... 778
Monthly UNsecured debt repayments....... 594.59
Amount left after debt repayments....... 183.41

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,417.53
Net Assets.............................. -5,417.53

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Doesn't look particularly readable but I will post it anyway. Most of it is accurate in regards to debts, the rest is an educated guess but it looks about right TBH.

Please judge me, and advise on the next steps. I am in favour of the snowballing technique. I have also just been accepted for a balance transfer credit card so am going to transfer most of the aqua card to that for an interest free 6 months.

Would love to get a mortgage at some point in the future so I'm gonna go for debt free as soon as I can.

TIA

Cornucopia

£400 a month on groceries could be somewhat "top end" unless you have some expensive dietary requirements within your family.

Other than that, the unsecured lending could easily be sorted out, depending on Ts & Cs of each loan. Since you have a small amount of money to spend each month, I would start by paying off the smallest ones that are non-zero interest rates. Work your way up as you free up more of your income.

Not wanting to be a killjoy, but are you really spending £600 a year on presents?

michelle2008

Are you sure you have included all your expenditure? Clothing seems really low? And no haircuts?

amy17brook

In groceries I have also included cleaning products and loo roll ect. I'm lactose intolerant and I have a wheat intolerant dog who needs special food. (I know this sounds ridiculous). To be honest though I have also included tobacco in this and know if I quit I will have at least an extra £20 per week so that's my first task.

Probably don't spend £600 a year on presents. It's probably more like £400. We both have really big families and feel like we have to buy for people.

amy17brook

The next debt is from clothes. I have enough there to last me a few years. I only buy them when they have holes in. I tend to buy in bulk of eBay otherwise.

And I have a friend who cuts my hair for a fiver twice a year. I do my husbands.

ViolaLass

Do you actually have £183 left at the end of every month?

amy17brook

Generally not, no. But then some of the money is my husbands so I'm not sure what he spends it on. (actually, no. He has a private loan where he has to pay off 100 a month to my dad) The rest just disappears

Cornucopia

When the Sunny loan ends will that free up £239 pm as the SOA suggests? Presumably it ends soon?

FullTimeAdult

I have a Sunny loan too... trying to pay that off first as the interest rate is ridiculous!

amy17brook

Yes, can do that one by the end of January. Got another one ending next month too. Am actually excited about it. Then can snowball that money into smaller ones to get them started.

Mr.Generous

what choices did you make to get in debt and have you made a decision to change?