Dinah dog bites back

Dinah_dog

Hi - I would be really grateful for some help sorting out my current position. Here is my Soa and I will post some details below, many thanks


Updated SOA
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 3
Monthly Income Details
Monthly income after tax................ 1844
Partners monthly income after tax....... 1050
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2894
Monthly Expense Details
Mortgage................................ 205
Secured/HP loan repayments.............. 65.25
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 86
Electricity............................. 35
Gas..................................... 0
Oil..................................... 60
Water rates............................. 39.53
Telephone (land line)................... 0
Mobile phone............................ 95
TV Licence.............................. 12.15
Satellite/Cable TV...................... 0
Internet Services....................... 22.44
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 53
Car Insurance........................... 55
Car maintenance (including MOT)......... 60
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 55
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 11.47
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 1614.84

Assets
Cash.................................... 100
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 102100

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 67000....(205)......0
Secured Debt.................. 10000....(65.25)....0
Total secured & HP debts...... 77000.....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Vanquis credit card............2500......150.......NaN
Barclaycard....................5400......120...... .0
Capital one....................1700......70........0
Bank of Scotland...............8000......40........0
Step change DMP................11000.....200.......0
Total unsecured debts..........28600.....580.......-

Monthly Budget Summary
Total monthly income.................... 2,894
Expenses (including HP & secured debts). 1,614.84
Available for debt repayments........... 1,279.16
Monthly UNsecured debt repayments....... 580
Amount left after debt repayments....... 699.16
Personal Balance Sheet Summary
Total assets (things you own)........... 102,100
Total HP & Secured debt................. -77,000
Total Unsecured debt.................... -28,600
Net Assets.............................. -3,500

Dinah_dog

Hi everyone. I have been reading your diaries for time and have been completing inspired and amazed at the changes people have made. Every time I have tried to make changes in the past they have been short lived and but now finally feel I have had my LBM loud and clear. I would be delighted to join in and try to get some help from you all if that's ok? Ive got myself in a really bad place with money over the years but want 2017 to be the year it all changes. My very scary SOA is above. Thank you x

Dinah_dog

Hi all - I would really appreciate any advice on my SOA - above. Its a shocking state of affairs for which I am truly ashamed. I have had debt problems for about 20 years - partly I think to mental health problems and challenges in life from damage in childhood. Now I want to look to the future, clear these debts and enjoy my life - I am 56!! Many thanks

Dinah_dog

Just to update you on more details for my SOA - my daughter is at home having finished University - it has been difficult as she has been unwell with serious mental health issues and has needed a lot of support but seems a lot better recently and is due to start a job Monday so will be able to help a little with food and pet care costs (they are both hers!). Also, she is learning to drive and currently we pay 2 lessons each a month - forgot to add these in - so an extra £44 a month for me. She can pay fully when earning.


I have 3 other children and 3 lovely grandkids who have all left home now so don't often need financial support.


Also, the reason we have a 3rd vehicle is that we bought a mpv converted into a camper in Dec 16 for £950 to use for cheap holidays for the next couple of years. Unfortunately it means that we have to pay tax and insurance on a third vehicle now - may decide to get rid of one of the cars when the insurance runs out to reduce costs. Our mortgage is on interest only as we changed it temporarily due to a job loss and the mortgage company are no longer lending so wont change it back. Our house is non standard construction so very difficult to get a mortgage on. We have been advised to overpay the £2000 a year we can and save the rest in an account which we have to give notice on to keep it safe and save further mortgage fees. Thanks and sorry for the essay!! (one of the reasons the posts are a bit messy is that I joined someone elses diary and was advised it may be best to start my own so I have cut and pasted - all in now I think .

boxofpaws

Hello Dinah Dog,:)

I tried to do an SOA when I first joined and quickly realised I had no idea where our money went! How accurate is yours? Do you have money left over ever month?

Boxofpaws

louby40

Welcome Dinah. You will find lots of support and encouragement here.
Sorry to hear about your daughter too, that must have been worrying.

You have £699 left over each month according to your SOA. is this correct? Can this go towards your debt? Or is that going towards your mortgage?

Only thing that jumps out is your mobile at £95? Is that for 2/3 phones?

Lots of people will come and give you advice soon. Also if you post your SOA on the Debt Free Wannabe board (the diary board is a sub board) you'll get even more help!

Louby

Kitten868

Hello,

First things first stick to your SOA. Find out where that extra £700 a month is going. That's the main thing. Then build on it from there. With that £700 I would be snowballing it (paying it off the highest interest debt first). Once you get a grip on things as they are then you can start cutting back. Plus if you are snowballing then your debts are getting smaller and easier to pay down. Or you can pay it off the smaller debts first so you have fewer creditors quicker.
You can do this. It's tricky as this decision makes you want to get it done now and it's a long slog but you'll get there. Xxx

Dinah_dog

Thanks everyone - yes we do have some disposable income but in the past have just spent it!! I have finally realised the seriousness of the situation (after many years of doing the same thing) and am ready to learn some lessons and aim to get out of debt. From now on its all going to go on paying off the highest interest debts and then once they are cleared - the mortgage. The mobile is for 4 phones but will be reducing soon as my daughters contract end and she will pay for her own and a sim only for one of my sons who is unemployed. The plan is always to buy a second hand phone in the future and have a £10 sim only deal - then it should be only £20 a month xx

Dinah_dog

Hi box of paws - I think my soa is quite accurate now after forgetting to add a few of the debts. I have kept my head in the sand about it in the past and my husband doesn't seem to worry about it. I would say it is making me quite unwell from a physical and psychological perspective and that this is my LBM. Doing the SOA is quite a shock. Hope you get on ok xx

HappyNow

You started one! Good for you

My main advice would be:

1. Keep a positive mind-set. Paying off debt can be rewarding and fulfilling and surprisingly good fun! It's not about punishing yourself for past mistakes; it's about developing new habits and new skills - all of which are very, very rewarding in themselves.
2. Get a good budgeting tool. I swear by YNAB (You Need A Budget) and my main regret is that I didn't discover it sooner. It gives me absolute clarity on what money I have available and what I can and can't afford. It helps me to save for upcoming expenses so the year is financially balanced, no more 'good' months and 'bad' months. There are other tools, so find one that suits you.
3. Keep posting on your diary where you will get lots of support and good advice.
4. Set up a signature that you can update every month so you actually see the debt go down. I like to monitor mine by percentages, other people use different methods. Have a look at a few and pinch the idea you like best.
5. Don't get disheartened. It's a long slog (I'm 5 years into my 7 year plan!) but every month the debt is a little lower and you're a little closer to debt-freedom.

Dinah_dog

Thank you Happy Now. I will get on with them now. Have sat a re-wrote all the finances down with my hubby and we have decided to have a year of austerity together which is great. I have even managed to get him to do the food shop and he ALWAYS sticks to the list. I will try YNAB and see how I get on. Its brilliant having some support with this xx