I don't think it gets much worse than this. Feel totally beaten

zippygeorgeandben

Going back to the post 90 regarding entertainment, what does £350 go on if you are struggling with all these debts?

worriedDan

zippygeorgeandben wrote: »

Going back to the post 90 regarding entertainment, what does £350 go on if you are struggling with all these debts?

Hi

I have changed that amount to £200 - this might still be too much. We are on month 1 of new budget so I will be tweaking it as we move forward

zippygeorgeandben

Yes - still too much - I'd say £30 a week in your situation, so let's say £125 a month maximum.

Suffolk_lass

zippygeorgeandben wrote: »

Yes - still too much - I'd say £30 a week in your situation, so let's say £125 a month maximum.

Really? That is a round of 6 drinks in London (I know, because I took my team out last week and that was it) - if that is just two of you, and maybe a takeaway I can see it but there might be a bit of an illusion to maintain with important people or an expensive location, like London. I would start with £200 and write down what you spend in the first month of your budget - then it becomes obvious what you need to change

zippygeorgeandben

Isn't that the problem though in essence? Creating an illusion i.e. a lifestyle you can't afford to live?
Personally, going out once a week and a takeaway is too much for someone who is struggling to pay off debts.

Verbatim

It's important to find a level which is both possible for the level of debt and to allow a long repayment slog without giving up. This will be different for different people and perhaps different for the same people at different times of their debt payment journey. It needs to be doable for the long term. Dan has a good income with plenty of wiggle room and I'm sure sometimes he'll be paying off more than at others. He needs some slack perhaps to enable him to continue in the long term. He doesn't have to wear a hair shirt!

worriedDan

here is our new SOA for the next 3 months. The £375 will reduce after 3 months as we will have a buffer. It's a bit more hardcore than our last SOA but after my wife and I finally got our heads together, we think that this is the way it needs to be! We accept that things will crop along the way and that it's not going to be plain sailing, but we have finally accepted that we
need to reign in our spending. I have not listed every debt again as I have already done that on previous SOA's. I have put £2000 in as the debt payment, although this is about £800 more than the minimum payments.

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

Monthly Income Details
Monthly income after tax................ 3377
Partners monthly income after tax....... 1010
Benefits................................ 82.8 - might lose this due to earning - gonna wait till letter arrives.
Other income............................ 0
Total monthly income.................... 4469.8

Monthly Expense Details
Mortgage................................ 489
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 85.8
Electricity............................. 40
Gas..................................... 80
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 60 - This will reduce significantly when contracts end.
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 22
Groceries etc. ......................... 200
Clothing................................ 10
Petrol/diesel........................... 180
Road tax................................ 5
Car Insurance........................... 21 - looking for cheaper quote
Car maintenance (including MOT)......... 30 - this is going into a separate pot to pay for repairs.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 100
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 10
Life assurance ......................... 30
Other insurance......................... 30
Presents (birthday, christmas etc)...... 0 - We are going to use my additional summer income to put some aside for this.
Haircuts................................ 10
Entertainment........................... 200 - Still not 100% sure about this - this may need to be amended
Holiday................................. 0 - Extra summer income will cover a cheap UK break - IF we have one.
Emergency fund.......................... 375 - for 3 mnths
Total monthly expenses.................. 2036.8


Assets
Cash.................................... 12000 - not really accessible right now but nice to know it's there.
House value (Gross)..................... 155000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 174000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 75000....(489)......1.25
Total secured & HP debts...... 75000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
All debt.......................55000.....2000......0 - It will never be this high again
hmrc...........................2000......122.......0
Total unsecured debts..........57000.....2122......-


Monthly Budget Summary
Total monthly income.................... 4,469.8
Expenses (including HP & secured debts). 2,036.8
Available for debt repayments........... 2,433
Monthly UNsecured debt repayments....... 2,122
Amount left after debt repayments....... 311 - I guess this should be zero but lets see where we are at the end of month 1. Any surplus will be saved or used to pay something else off. previously this would have dissapeared down a black hole of uneccesary purchases

Personal Balance Sheet Summary
Total assets (things you own)........... 174,000
Total HP & Secured debt................. -75,000
Total Unsecured debt.................... -57,000
Net Assets.............................. 42,000 - at least I am actually worth something!!


I have also enquired about doing some additional work on the side doing some private education. This could net me an extra £300 per month after taxes for just a couple of hours extra work per week!

Kantankrus_Mare

All debt.......................55000.....2000......0 - It will never be this high again


I believe you!! And you can do it!! You are doing so well! :j

worriedDan

Kantankrus_Mare wrote: »

All debt.......................55000.....2000......0 - It will never be this high again


I believe you!! And you can do it!! You are doing so well! :j

Thank you. the numbers still scare me but a proper plan in place makes it all feel a bit more manageable

Suffolk_lass

Verbatim wrote: »

It's important to find a level which is both possible for the level of debt and to allow a long repayment slog without giving up. This will be different for different people and perhaps different for the same people at different times of their debt payment journey. It needs to be doable for the long term. Dan has a good income with plenty of wiggle room and I'm sure sometimes he'll be paying off more than at others. He needs some slack perhaps to enable him to continue in the long term. He doesn't have to wear a hair shirt!

I agree. That was my thinking exactly. If you don't retain a little wiggle room it is much harder to maintain the journey.

Hey Dan, I just wanted to question your HMRC debt? If this is owed for any time previous to April 2016 I suggest you prioritise this a bit higher - most of your unsecured debt is now stoozed on to 0% CC - look at the interest and penalty rate HMRC are going to charge you and if necessary, prioritise it to take that £1200 pm above minimum payments to get rid of it by May