Where to start...HELP!

angelpye

Hi, I am sure people more in the know will have suggestions but the loans etc should be current balances and a spending diary including petrol etc will enable you to monitor what you are doing.

I put £33 away a month for my car maintenance at the moment as service and MOT is £150 a year and leaves extra for tyres or something to be fixed.

Mobile phone is high - how long is your contract? locked in for ? Could you lower it?

Food - is that just for you? I spend a little more than that for two of us so perhaps this could be something to look at cutting down if just half of what you actually spend for you and husband. I am seeing this as my challenge - to eat healthy and well but cheap.

You can add extra things in budget on the original sheet so if I was you I would go back and add anything you missed, reduce the car maintenance and loan amounts and you will have a better picture.

Then I would use the snowball calculator with any amount thats left over to figure out what to concentrate on and how long it will take. If you put different amounts in (say if you were able to reduce food by £20 and put that into repayment) you can look at how that will effect your debt free date. It shows how much interest you will pay over that time too so will help you figure out if loan is more expensive or will take more time.

Personally I would be in two minds about a loan - not sure could trust myself not to spend on card again but nice to know its all together?

Well done for facing up to your budget - it's hard but will definitely be worth it.

angelpye

Essex and determined posted whilst I was typing...they are some of those in the know

rhr83

The mobile contract is due up in Aug 17, I've every intention of taking a SIM only option based on my usage.

The groceries is my contribution, picking up bits & pieces (wine, take-away etc.) can be majorly cut back!!

Building & Contents insurance paid by OH, you guessed right!! Mortgage in OH name Sourcrates

I'll look into the car tax, if I can just put a bit away each month to pay the 6 months up front that would also help.

With me just starting today, I've yet to actually see what I have left come pay day once everything has been paid. I had set up direct debts and spend until there's nothing left, then was using my credit card.

determined_new_ms

I have an 11 year old car and I put aside £60 pm and that includes tax & ins

rhr83

My cars 8 years old and serving me well, OH just fitted a new coil pack and serviced it, hopefully it'll continue serving me well for a few years yet.

I think I need to download my bank statements to get a proper idea of what is going where. Thankfully all my DD come out on my payday so I've never missed a single payment.

angelpye

rhr83 it's all a process, it took me a week of keep coming back to my SOA to really get to grips with what I need to spend, income and overall budget. Just keep up the momentum and you will get there.

sourcrates

So, if the mortgage is not in your name, then technically you are not a homeowner.

And you have no assets.

A more complete budget is required really to say for sure, but have you considered a debt relief order ?

rhr83

I'll get a list of my actual outgoings over the next few days. Currently shopping for car insurance to get a better deal. I'm also going to phone 2moro to see if I can reduce my mobile contract. Its a start.

EssexHebridean

rhr83 wrote: »

I'll get a list of my actual outgoings over the next few days. Currently shopping for car insurance to get a better deal. I'm also going to phone 2moro to see if I can reduce my mobile contract. Its a start.

Take a look at the SIM only deals Plusnet are offering - might give you some bargaining power. I know for a fact that EE have a £10.99 sim only deal too - that gives me 4gb data and unlimited texts & calls.

Drawingaline

Ok, having seen your soa and read your further comments I would be inclined to hold fire on a consolidation loan too. It worked for me this time because it took a 29% credit card down to a 3% loan, alongside a LBM, signing up to YNAB and really focusing on where the money was going.

You can do this, certainly look at the snowball calculator, and going through the last few months bank statements is a good place to start. Working out a realistic budget is important, otherwise you end up having to fall back on the credit card for things like car insurance etc. For the first time I am putting £50 a month aside for car maintenance (my car is 16 years old mind!!!) Which means I am prepared for buying new tyres etc, previously they would be stuck on the credit card.