£45k debt - how?

foxgloves

Sounds like you ate really getting cracking, Boxofpaws. Before I discovered the sanity of budgeting, car services & MOTs always caught us out too. Don't know why, as the big winter service always came due in the same month each year, ditto the smaller summer check up. I find my filofax (of course I don't use the branded inserts now I'm reformed, lol) is a great mse tool because I write in when these annual expenses are due. I also write in insurance renewal dates & add a reminder a month earlier to start comparing prices. I keep my weekly meal plan on a page at the front, also my monthly grocery budget so that I can update it as & when it is spent. I always know exactly how much grocery budget we have left until payday (£50-14!!) which is when I set the new budget for the coming month. Our dentist check-ups are in July, so at some point in June, I note that I will need to budget a minimum of 2 check-ups/hygienist with a contingency for any treatment. It is all very routine practical stuff but it has stopped us getting 'caught out' by stuff which occurs every year, mostly at predictable times. Cat vaccination is another one.
It isn't at all difficult. It's just a change of mindset......but think of that goal. Debt-free. How awesome would that feel? In practical terms, you've spent that 45K in advance (as in Buy now, pay later). Now it's payback time. It won't be forever. The more £££s you can free up to throw at your debts, the quicker it will be. Every £ helps.
F x

boxofpaws

Onthebeach777, I have no experience of IVAs or DMPs. You might be better starting a new thread posting all your details. People on here really know their onions and they will be able to give you good advice.


Good luck
Boxofpaws

On_my_way

You have to be careful about grown up children's crises!

I know too many people in their late twenties who pay hundreds for lovely haircuts but they then grovel to their parents claiming poverty!

I am not saying this is your situation but be careful!

MrsTinks

onthebeach777 wrote: »

I am in the same position, and am looking for help myself. Maybe we can settle each other down? What I want to know is, My DMP has come to an end, I still owe a lot of money, I was told that they can no longer act in my best interests and advise us to go to a free DMP. Will a new DMP (Debt Management Plan) take us on with the same principle, we pay our creditors a pound a month? Maybe someone on this forum could answer my question? I don't want an IVA, I really prefer to make an offer of payment to my creditors, but am not sure about this method either. What is your trouble with money? It helps to talk to someone.

onthebeach777 - start your own thread and we;ll take you through all the options too But in short - if you have been paying a cowboy outfit to manage your DMP then it's a GOOD thing they have dropped you because they would have been taking a sizable chunk of your payments just for passing money from you to your creditors. Biggest waste of money ever!

MrsTinks

On_my_way wrote: »

You have to be careful about grown up children's crises!

I know too many people in their late twenties who pay hundreds for lovely haircuts but they then grovel to their parents claiming poverty!

I am not saying this is your situation but be careful!

I have a step brother who got bailed out numerous times when eh couldn't pay rent, but had just bought a (brand new out at the time) PS3 and new phone etc...

Step sister wasn't much better, but parents finally learnt to say no...

Not saying I'm perfect but at least I've always cleared my own messes

boxofpaws

I have posted this into my diary but I thought I would post it here too. Any advice welcome.


I've updated my SOA. This is based on what we have spent so far this month, multiplied up.


A couple of notes
Car maintenance is high because the husband has a car and a motorbike. They are his hobby.
Nothing on clothes. That's not quite true. I don't love clothes shopping but I lost quite a bit of weight over the last 18 months and I have had to replace quite a lot of stuff. I have a decent core wardrobe but in the summer I may need some more things. I will try and make do.
Nothing for holidays. We are not planning to have one this year, unless we cut back somewhere else.
Gym - I used to use it for the classes but my new job is quite stressful and I never get there. So open to cancelling.
Petrol - is quite low because I get some expenses back from work for travel and it covers quite a lot more than we actually spend.
The garden - not mentioned on here but buying plants is my Achilles heel. I am new to gardening and it turns out I love it. I don't need anything new through and have propagated quite a lot last year so have vowed to husband not to buy anything apart from £10 at the spring charity plant sale.
BT- is extortionate. Apparently there are some more hikes coming so I might take that as my opportunity to go elsewhere.


Anyway, what do you think we should cut back on? Any other suggestions?



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2018
Partners monthly income after tax....... 2050
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4068
Monthly Expense Details
Mortgage................................ 1165
Secured/HP loan repayments.............. 161
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 169
Electricity............................. 50
Gas..................................... 63
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 46.39
Mobile phone............................ 22.4
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35.6
Internet Services....................... 0
Groceries etc. ......................... 273.77
Clothing................................ 0
Petrol/diesel........................... 23
Road tax................................ 18.75
Car Insurance........................... 59.58
Car maintenance (including MOT)......... 83.33
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 48
Buildings insurance..................... 8.5
Contents insurance...................... 8.5
Life assurance ......................... 21.39
Other insurance......................... 0
Presents (birthday, christmas etc)...... 83.33
Haircuts................................ 55
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Nutracheck.............................. 6
Netflix................................. 6
Apple music............................. 9.99
Gym..................................... 42
Charity................................. 16
Collections at work..................... 10
Window cleaner.......................... 17.5
Pet food ............................... 28
Drinks for home......................... 36
Toiletries.............................. 27
Total monthly expenses.................. 2792.15

Assets
Cash.................................... 1000
House value (Gross)..................... 260000
Shares and bonds........................ 150
Car(s).................................. 10000
Other assets............................ 9000
Total Assets............................ 280150

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 182000...(1165).....5
Secured Debt.................. 4600.....(161)......1.5
Total secured & HP debts...... 186600....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................4213......85........0
Lloyds.........................7260......73........0
MBNA...........................7831......79........0
Loan...........................8330......323.......0
Tesco..........................8300......83........0
Total unsecured debts..........35934.....643.......-

Monthly Budget Summary
Total monthly income.................... 4,068
Expenses (including HP & secured debts). 2,792.15
Available for debt repayments........... 1,275.85
Monthly UNsecured debt repayments....... 643
Amount left after debt repayments....... 632.85
Personal Balance Sheet Summary
Total assets (things you own)........... 280,150
Total HP & Secured debt................. -186,600
Total Unsecured debt.................... -35,934
Net Assets.............................. 57,616
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Karonher

boxofpaws wrote: »

I have posted this into my diary but I thought I would post it here too. Any advice welcome.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2018
Partners monthly income after tax....... 2050
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4068
Monthly Expense Details
Mortgage................................ 1165
Secured/HP loan repayments.............. 161
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 169
Electricity............................. 50
Gas..................................... 63
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 46.39 - if you can manage with mobiles losing this will help.
Mobile phone............................ 22.4
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35.6
Internet Services....................... 0
Groceries etc. ......................... 273.77 IThis could be cut back at least £50 a month
Clothing................................ 0
Petrol/diesel........................... 23
Road tax................................ 18.75
Car Insurance........................... 59.58
Car maintenance (including MOT)......... 83.33
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 48
Buildings insurance..................... 8.5
Contents insurance...................... 8.5
Life assurance ......................... 21.39
Other insurance......................... 0
Presents (birthday, christmas etc)...... 83.33 Start shopping early and you could find bargains throughout the year.
Haircuts................................ 55 Go to 8 weeks
Entertainment........................... 150 Reduce to £100 - Groupon and the likes have offers and some places can be mystery shopped.
Holiday................................. 0
Emergency fund.......................... 0 There should be something here
Nutracheck.............................. 6 - could you just Google calories
Netflix................................. 6 -Do you really need this if you have satellite?
Apple music............................. 9.99 - do you really need this?
Gym..................................... 42 - It would be best to cancel if you dont go.
Charity................................. 16
Collections at work..................... 10
Window cleaner.......................... 17.5 - could this be every other month.
Pet food ............................... 28
Drinks for home......................... 36 - cut down to maybe 25
Toiletries.............................. 27 - do you need anything special for medical reasons. If there are no skin problems this could be reduced.
Total monthly expenses.................. 2792.15

Assets
Cash.................................... 1000
House value (Gross)..................... 260000
Shares and bonds........................ 150
Car(s).................................. 10000
Other assets............................ 9000
Total Assets............................ 280150

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 182000...(1165).....5
Secured Debt.................. 4600.....(161)......1.5
Total secured & HP debts...... 186600....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................4213......85........0
Lloyds.........................7260......73........0
MBNA...........................7831......79........0
Loan...........................8330......323.......0
Tesco..........................8300......83........0
Total unsecured debts..........35934.....643.......-

Monthly Budget Summary
Total monthly income.................... 4,068
Expenses (including HP & secured debts). 2,792.15
Available for debt repayments........... 1,275.85
Monthly UNsecured debt repayments....... 643
Amount left after debt repayments....... 632.85
Personal Balance Sheet Summary
Total assets (things you own)........... 280,150
Total HP & Secured debt................. -186,600
Total Unsecured debt.................... -35,934
Net Assets.............................. 57,616
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Comments wre all supposed to be in purple. If you could do them that will be £219 a month extra. That is without taking into account the months you miss out the haircuts and window cleaner - another £72.

On top of that, there could be more if you shop around for insurance, make cuts to the Christmas present budget and make further cuts into drinks for home, entertainment and toiletries.

enthusiasticsaver

Your soa does not look too bad but I think there is room for savings on telephone land line, gym, haircuts, nutracheck, and maybe either cancel net flix or cable (no real need for both). Apple music could also go unless you use it a lot, window cleaner is expensive (we pay £12 every 6 weeks so £8 per month and that is for 4 bed detached with conservatory).

Personally I would aim to pay minimum of £1000 to your unsecured debt and carry on putting spare money aside for emergencies, holidays etc so you get in the habit of saving for treats rather than using cards. At least you are not paying interest though.

boxofpaws

Karonher wrote: »

Comments wre all supposed to be in purple. If you could do them that will be £219 a month extra. That is without taking into account the months you miss out the haircuts and window cleaner - another £72.

On top of that, there could be more if you shop around for insurance, make cuts to the Christmas present budget and make further cuts into drinks for home, entertainment and toiletries.

Toiletries - we did a stock up on loo roll and dishwasher tablets this month, I would hope every month isn't as spends so yes I reckon we could reduce this. I also buy brands, but I'm going to try lidl loo roll and dishwasher powder next time.

I will cancel the gym, you've made my mind up, I'm not getting use of it

I use Apple Music all, the time, I love it, so that will stay, but I might not renew nutracheck.

Hair, I'm already at 7 weeks do I will go to 8 weeks.

Phone includes landline for broadband so will keep it but shop around (Sky) when they increase prices

Groceries, I think you're right, I reckon we could get more off.

Thank you, that's helpful, I reckon that's £120 saved.:T

boxofpaws

enthusiasticsaver wrote: »

Your soa does not look too bad but I think there is room for savings on telephone land line, gym, haircuts, nutracheck, and maybe either cancel net flix or cable (no real need for both). Apple music could also go unless you use it a lot, window cleaner is expensive (we pay £12 every 6 weeks so £8 per month and that is for 4 bed detached with conservatory).

Personally I would aim to pay minimum of £1000 to your unsecured debt and carry on putting spare money aside for emergencies, holidays etc so you get in the habit of saving for treats rather than using cards. At least you are not paying interest though.

Thank you, it great to hear we've made a good start.

Re Netflix, you're right, we never use it. But we've had the account for ages and we've got the full package at the original price so we've kept it in case we want to use it. We have used it in the past when our sky deal ran out. Sky wouldn't extend the offer so we cancelled for 2 months until a letter came through the door offering 60% off. Since then, they have just renewed the offer when it runs out, maybe because they know we WILL cancel our contract if not. So we've sort of kept Netflix as insurance (and for better call Saul and oitnb) which is ridiculous. I'll talk to the husband about it, he suggested cancelling a few weeks ago.