What have i done!

Well, after finding this site i finally pulled my finger out and decided it was time to do something about my finances. mid 30's from a family where money talks and for too long I've put other peoples opinions and my own selfishness before whats actually important. Been living beyond my means for years, the divorce didn't help but neither did the exotic holidays and expensive tastes.

I'm currently finalising my budget, got a new bank account sorted and im quietly crapping myself when i tell my family that x-mas is going to be very lean this year and as for the discussions with my creditors, first one wasn't as bad as i expected, so that's something.

Letters to creditors all ready typed up, DD's cancelled and my reigns are well and truly in. Friday is the day i start my debt free journey. Aim to be in the black by 40.

Wish me luck!
«1

Replies

  • MrsTinksMrsTinks Forumite
    15.2K Posts
    Part of the Furniture 10,000 Posts Combo Breaker Name Dropper
    Good luck! :)

    Why not post up your SOA on here for the peeps to help you? You'd be amazed at the suggestions that sometimes come up that you may never have thought of :)

    http://www.stoozing.com/calculator/soa.php use the format for MSE and then just copy paste the bit that comes up :)

    I doubt many of us here can say we never made any mistakes so don't worry. And most of us have had to "have that chat" with family or spouses etc

    It may even be possible to tell extended family that this year you are going old school because you're fed up with the crass commercialization of christmas? :) Just a thought!
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's! :)

    My DFW Diary - blah- mildly funny stuff about my journey
  • EssexHebrideanEssexHebridean Forumite
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    Welcome! Agree with Mrs T's post wholeheartedly! :T

    First off, stop worrying what other people think of you - really, do their opinions matter? There is a phrase - Them who matter, won't mind, and those who mind, don't matter. True. ;) Of the people who DO matter to you, prioritise them - tell the most important ones first, and cascade down from there.

    It's fixable. Well done for wanting to sort it - the hardest step is taken.
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  • Thanks Mrs Tinks

    Done this quickly, Not to the penny but its close. Any advice would be welcomed. Im trying to cut down further but this is realistic currently. already done things like removing sky TV and changing service providers.

    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.................... 1

    Monthly Income Details

    Monthly income after tax................ 2594
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2594


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 297
    Rent.................................... 300
    Management charge (leasehold property).. 0
    Council tax............................. 74
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 20
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 20
    Groceries etc. ......................... 300
    Clothing................................ 45
    Petrol/diesel........................... 294
    Road tax................................ 20
    Car Insurance........................... 40
    Car maintenance (including MOT)......... 25
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 25
    Medical (prescriptions, dentist etc).... 7
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 15
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, Christmas etc)...... 30
    Haircuts................................ 10
    Entertainment........................... 35
    Holiday................................. 35
    Emergency fund.......................... 25
    various................................. 0
    NRT / Healthcare............................ 80
    maintenance............................. 400
    Total monthly expenses.................. 2199



    Assets

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



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 13000....(297)......3
    Total secured & HP debts...... 13000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    cc1............................11000.....397.......0
    cc2............................2500......100.......0
    cc3............................4500......197.......0
    od.............................1100......0.........0
    Total unsecured debts..........19100.....694.......-



    Monthly Budget Summary

    Total monthly income.................... 2,594
    Expenses (including HP & secured debts). 2,199
    Available for debt repayments........... 395
    Monthly UNsecured debt repayments....... 694
    Amount short for making debt repayments. -299


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -13,000
    Total Unsecured debt.................... -19,100
    Net Assets.............................. -32,100


    Created using the SOA calculator at
    Reproduced on Moneysavingexpert with permission, using other browser.
  • EssexHebrideanEssexHebridean Forumite
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    Pro-Idiot wrote: »
    Thanks Mrs Tinks

    Done this quickly, Not to the penny but its close. Any advice would be welcomed. Im trying to cut down further but this is realistic currently. already done things like removing sky TV and changing service providers.

    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.................... 1

    Monthly Income Details

    Monthly income after tax................ 2594
    Partners monthly income after tax....... 0
    Benefits................................ 0 Too high an earner for Child Benefit?
    Other income............................ 0
    Total monthly income.................... 2594


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 297
    Rent.................................... 300
    Management charge (leasehold property).. 0
    Council tax............................. 74
    Electricity............................. 40 Have you checked your tariff? can you cut usage?
    Gas..................................... 40 COLOR="red"]Have you checked your tariff? can you cut usage?[/COLOR]
    Oil..................................... 0
    Water rates............................. 20Metered? Go back to basics on water-saving if so.
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 20
    Groceries etc. ......................... 300 There's a saving for a start - you can knock £100 off this - start meal planning and shopping to a list. If impulse purchases are an offer switch to online
    Clothing................................ 45 Cut back to just buying kids clothes at the moment, and only those when actually needed. Ebay/Charity shops can be great for smaller kids stuff.
    Petrol/diesel........................... 294 Ouch. Check Martin's guide about driving efficiently etc if your mileage can't be reduced
    Road tax................................ 20 Paid monthly?
    Car Insurance........................... 40 Have you done the price comparison thing to check this can't be reduced?
    Car maintenance (including MOT)......... 25 Are you actually setting this aside each month? There's no cash assets shown...
    Car parking............................. 10 Any option to switch to parking free, even if it adds a short walk?
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 25
    Medical (prescriptions, dentist etc).... 7
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 15 This is steep - do a price comparison. Shoulod be able to get that under £10 per month and every little helps
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, Christmas etc)...... 30
    Haircuts................................ 10
    Entertainment........................... 35
    Holiday................................. 35 Are you actually setting this aside each month? There's no cash assets shown...
    Emergency fund.......................... 25Are you actually setting this aside each month? There's no cash assets shown...
    various................................. 0
    NRT / Healthcare............................ 80
    maintenance............................. 400
    Total monthly expenses.................. 2199



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0 You own a car - stick its value in here!
    Other assets............................ 0
    Total Assets............................ 0



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 13000....(297)......3
    Total secured & HP debts...... 13000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    cc1............................11000.....397.......0 Are these definitely all on 0%?
    cc2............................2500......100.......0
    cc3............................4500......197.......0
    od.............................1100......0.........0
    Total unsecured debts..........19100.....694.......-



    Monthly Budget Summary

    Total monthly income.................... 2,594
    Expenses (including HP & secured debts). 2,199
    Available for debt repayments........... 395
    Monthly UNsecured debt repayments....... 694
    Amount short for making debt repayments. -299


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -13,000
    Total Unsecured debt.................... -19,100
    Net Assets.............................. -32,100


    Created using the SOA calculator at
    Reproduced on Moneysavingexpert with permission, using other browser.

    It's not pretty but there are a few options. Do we assume that you have another child and that's where the maintenance comes in? Or is your little one just with you part of the time, in which case there seems to be a heavy liability on you for things like clothes, but on the flip side, the grocery bill can come down further.
    🎉 MORTGAGE FREE 30/09/2016 🎉
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    2023 "Gym Neutral Fund" - £0.00/£280 (Membership taken 01/2/23)🏋🏻♀️ 2023/24 Gym cost per use: at 01/02/23 £280.00 per visit! (0) 🏋🏻♀️
    she/her
  • MrsTinksMrsTinks Forumite
    15.2K Posts
    Part of the Furniture 10,000 Posts Combo Breaker Name Dropper
    I'm going to try and not repeat EH so a few extra points:
    Pro-Idiot 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.................... 1

    Monthly Income Details

    Monthly income after tax................ 2594
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2594


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 297 secured on what? Is this the car payment?
    Rent.................................... 300
    Management charge (leasehold property).. 0
    Council tax............................. 74 Is it me or does that feel high for a place with a £300 rent? Might be totally correct, just feels high?
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 20
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 20
    Groceries etc. ......................... 300 this can definitely come down :)
    Clothing................................ 45
    Petrol/diesel........................... 294 ouch - is any of this business miles? Can you reclaim any?
    Road tax................................ 20
    Car Insurance........................... 40 probably about right if you travel that amount of miles
    Car maintenance (including MOT)......... 25
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 25 such as?
    Medical (prescriptions, dentist etc).... 7
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 15
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, Christmas etc)...... 30 £360 a year? Can you reduce this any? Depends in part on the age of your child...
    Haircuts................................ 10
    Entertainment........................... 35
    Holiday................................. 35 £420 a year? Can you cut this for a couple of years?
    Emergency fund.......................... 25
    various................................. 0
    NRT / Healthcare............................ 80 Is this private medical like Bupa? can it be gotten cheaper?
    maintenance............................. 400 OK - I appreciate that you want to support your child, but is this the court agreed amount? the amount set out as per the % of your salary or what you have privately agreed with your ex? It might be worth working with them on if you paid only what you HAVE to would that then be made up for in tax credits etc for them so they aren't loosing out?
    Total monthly expenses.................. 2199



    Assets

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



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 13000....(297)......3 Assume this is the car? Can you down grade? Depending on how far into your agreement you are then can you voluntary surrender the car? Buy a cheaper run around or part ex it for a cheaper one? best done before any defaults start registering...
    Total secured & HP debts...... 13000.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    cc1............................11000.....397.......0
    cc2............................2500......100.......0
    cc3............................4500......197.......0
    od.............................1100......0.........0
    Total unsecured debts..........19100.....694.......-



    Monthly Budget Summary

    Total monthly income.................... 2,594
    Expenses (including HP & secured debts). 2,199
    Available for debt repayments........... 395
    Monthly UNsecured debt repayments....... 694
    Amount short for making debt repayments. -299


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -13,000
    Total Unsecured debt.................... -19,100
    Net Assets.............................. -32,100


    Created using the SOA calculator at
    Reproduced on Moneysavingexpert with permission, using other browser.

    I actually think if you wanted to that you could possibly make the savings needed to not default - HOWEVER it would be a long hard slog and it all depends on what your goals are. If you know you won't suddenly get an inheritance in the next 6 years and want to buy a house then defaulting and getting more room to live in your budget is probably the best way. It would also mean most of your interest rates would hopefully be frozen so all your payments would go towards your debt and not the fees.

    Some food for thought at least :)
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's! :)

    My DFW Diary - blah- mildly funny stuff about my journey
  • Hi, Thanks to both of you.

    Maintenance is based of previous years P60 which included hefty bonus payments. this year they are gone, but legally i have to pay based on last years P60. I am discussing this with my ex and have advised her they may reduce.

    Rent is privately agreed, Covers my friends mortgage as they now live with their partner at the other end of the country and she has someone to look after the place and do repairs/ongoing maintenance etc.

    Unfortunately the car is currently worth less than the repayment on the HP. However i will be looking into downsizing.

    This process is extremely new to me still and i thank you all for your support. I know im going to have to tighten my belt in all areas however i wanted to set a realistic initial budget that wouldn't mean i was left with no money and no credit with a week to go to payday. At least for the first 3 months.
  • MrsTinksMrsTinks Forumite
    15.2K Posts
    Part of the Furniture 10,000 Posts Combo Breaker Name Dropper
    Pro-Idiot wrote: »
    Hi, Thanks to both of you.

    Maintenance is based of previous years P60 which included hefty bonus payments. this year they are gone, but legally i have to pay based on last years P60. I am discussing this with my ex and have advised her they may reduce.

    Rent is privately agreed, Covers my friends mortgage as they now live with their partner at the other end of the country and she has someone to look after the place and do repairs/ongoing maintenance etc.

    Unfortunately the car is currently worth less than the repayment on the HP. However i will be looking into downsizing.

    This process is extremely new to me still and i thank you all for your support. I know im going to have to tighten my belt in all areas however i wanted to set a realistic initial budget that wouldn't mean i was left with no money and no credit with a week to go to payday. At least for the first 3 months.

    Depending on what you've paid on the car and the agreement you bought it under you may be able to just hand it back... Under a lot of the PCP agreements etc once you have paid half of the agreement you can simply hand it back, doesn't matter if it's in negative equity, that's not your problem... (You see why we do it this way now LOL)

    I'll admit I am not familiar with the child support aspect, it's a fine line between what you can afford and what will create bad blood between you and your ex when there is a kid involved. I also don't know if you can apply to have it re-evaluated in the middle of a tax year? If your salary has dropped significantly due to bonuses etc then it would make sense there is a way to get that taken into consideration?

    Rent on the house seems like a win in that case!

    There is no 100% "this is what you MUST do" way here - on the one hand if you tighten your belt a lot and get your ex to be realistic on the child support then you could actually do this without any defaults on your credit reports. On the other hand you could probably get your interest stopped on most of them but you would hammer your ability to get new credit for the next 6 years more than likely... if that's an issue then it's something you need to keep in mind.
    DFW Nerd #025
    DFW no more! Officially debt free 2017 - now joining the MFW's! :)

    My DFW Diary - blah- mildly funny stuff about my journey
  • monzmonz Forumite
    4.1K Posts
    Part of the Furniture 1,000 Posts Debt-free and Proud! Stoptober Survivor
    Forumite
    You can do it :)

    If you update your signature it keeps an eye on what you owe and you can focus on that.

    Also a spreadsheet worked wonders for me :) xx
    Debt (1/9/14) £6,702.11 Debt free (30/11/2016) mortgage port- £70,077.82 and mortgage £126,517.39 o/s currently
    Debt - £17,190.83 (29/7/22) now (19/8/22) £16,688.80
  • Mrs Tinks
    Car isn't on a PCP, and if i hand it back i have no way to get to work and little chance of getting another at the moment. It will be the next thing i look at however

    CSA, Ex is coming round to the idea of her payments dropping after an initial resistance. Actual amount i owe based on flat wage in £300, Im trying to work out a compromise on this. i cant continue to pay her what i have been until bonus is re-instated. and even then the plan is to knock it off the debt and reduce it as quickly as possible.

    Re Defaults, Currently this isn't a concern. I've resided myself tot he fact that the next 4-6 years are going to be tough and there is zero chance of me being able to afford a house / mortgage with my current expenditure anyway and it will take some time following clearing debts to save a deposit.

    Debts first. anything else is for another day.

    Monz.
    Thanks for your support. Ill be keeping an eye on debt levels and budgeting once my creditors have hopefully agreed to the DMP and frozen the interest.


    I've also had another look at my budget and found another £50-80 i can save and put towards debts. Holidays and things will have to wait.
    I just didnt want to screw myself over initially and end up having to borrow from family etc. its going to be a tough few first months while i change my attitudes towards spending, however im prepared for it.
  • Ray_Singh-BlueRay_Singh-Blue Forumite
    495 Posts
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    Forumite
    The car is a really big expense

    There are some thought provoking articles on mrmoneymustache.com about the benefits of living really close to where you work. Financial, environmental, personal.
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