Oooops. Took my eye off the ball

HelleBelle

I've been here before but didn't stick with it. I've been suffering with anxiety and depression and have been spending quite blindly.
I'm not in deep trouble yet but I finally steeled myself to sit down and take stock. So here is my SOA. I've halved my share. I haven't yet declared the extent of debt to my OH.
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2389
Partners monthly income after tax....... 0
Benefits................................ 136
Other income............................ 0
Total monthly income.................... 2525

Monthly Expense Details
Mortgage................................ 840 << oops, this is full mortgage. I pay half)
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 0
Gas..................................... 33
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 25 (incl sky & broadband)
Mobile phone............................ 12
TV Licence.............................. 0 (OH pays this)
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 260
Road tax................................ 20
Car Insurance........................... 0
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 250
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8.7
Pet insurance/vet bills................. 10
Buildings insurance..................... 13
Contents insurance...................... 0 (incl in buildings)
Life assurance ......................... 19
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 1986.7


Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 303000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 18000....(840)......2
Total secured & HP debts...... 18000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................9218......200.......18.95 (I've just done a bad transfer so now this is 3218)
Sainsburys.....................159.......0.........? (+ 0% bal trans from Halifax = 3159)
Barclaycard....................5809......170.......0 (+ 0% bals trans from Halifax = 8895 incl 87 fee)
Paypal.........................718.......50........0
Virgin.........................8101......80........0
Total unsecured debts..........24005.....500.......-


Monthly Budget Summary
Total monthly income.................... 2,525
Expenses (including HP & secured debts). 1,986.7
Available for debt repayments........... 538.3
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... 38.3

Personal Balance Sheet Summary
Total assets (things you own)........... 303,000
Total HP & Secured debt................. -18,000
Total Unsecured debt.................... -24,005
Net Assets.............................. 260,995

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I think I've done this right??

I'm in my overdraft every month but so far I'm not going over.
I was pretty bad at drinking every evening (1 bottle between us and a nightcap or two) but have vowed to give up booze for November.

Help!

[Deleted User]

Welcome back HelleBelle

I'm sure someone will be along shortly xx

National_Debtline

Hi HelleBelle and welcome back to MSE,


Your SOA is a great starting point to look at options. One thing I would note is that you included the full mortgage but noted you only pay half. So, your expenses would total £1566.70 if you only pay £420 pcm to the mortgage. This means your surplus would also increase to £958.30.


If this is correct you can look to overpay the debts by nearly double per month (before you make any other changes to your budget). You can overpay the higher APR debts first to help as well.

You also mentioned an overdraft (that is not listed on your debt list). You must change banks, away from any of the debts that you owe money to, to keep your money safe from the creditors and then repay the overdraft gradually like the other debts (and hopefully they won't call it in before you have chance to clear it). If they do, this could cause some damage to your credit file but, nevertheless, changing banks is essential. Good luck,


Laura
@natdebtline

middleclassbutpoor

Your mortgage payment looks high for £18k?

Is the childcare costs in addition to payments you pay through salary - if not have you got this facility with work?

Your petrol/diesel costs look high also.

Your groceries could be significantly reduced if you are spending money on a bottle a night - presume you mean wine? Even at £5 a bottle, thats over £150 a month on that alone.

EssexHebridean

welcome back - comments in red as usual...

HelleBelle wrote: »

I've been here before but didn't stick with it. I've been suffering with anxiety and depression and have been spending quite blindly. But you've recognised it, and know the triggers. A spending diary might help you with tracking spends,
and also recognising patterns.
I'm not in deep trouble yet but I finally steeled myself to sit down and take stock. So here is my SOA. I've halved my share. I haven't yet declared the extent of debt to my OH.
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3 All contributing to costs?
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2389
Partners monthly income after tax....... 0
Benefits................................ 136
Other income............................ 0
Total monthly income.................... 2525

Monthly Expense Details
Mortgage................................ 840 << oops, this is full mortgage. I pay half) 420 then - which increases your surplus by a great big lump doesn't it!
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 0 No electricity cost at all? Does OH pay it?
Or do you pay on dual fuel as one amount so you've simply shown one but not the other,
in which case that makes sense
Gas..................................... 33
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 25 (incl sky & broadband)
Mobile phone............................ 12
TV Licence.............................. 0 (OH pays this)
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 Is this the full amount monthly (in which case, not bad at all, or half (in which case that's ludicrous, you can definitely take great bit chunks off that spend!)
well done) or
Clothing................................ 20
Petrol/diesel........................... 260 This is high - is this just your own mileage?
Car maintenance must cost you a fortune
Road tax................................ 20 Are you actually paying this monthly?
If so stop and allowing for your surplus pay the year upfront, then set money aside monthly to pay next year. They charge extra for paying by monthly DD!
Car Insurance........................... 0 ???
Car maintenance (including MOT)......... 20 This wouldn't be enough to cover a low mileage driver - it is DEFINITELY not enough to cover you! You need to remember everything - MoT test, I'm guessing you need a service more than once annually on that mileage? So the cost of a full and interim service, at least one set of tyres per year, screenwash, wiper blades, bulbs....add your estimate together, divide by 12 and that's the amount you'll need monthly. I'm guessing you need to allow at least £45 a month and that's without any of those nasty unexpected jobs that suddenly need doing.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 250
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 8.7 One prescription a month? currently £8.60 if so.
Pet insurance/vet bills................. 10
Buildings insurance..................... 13
Contents insurance...................... 0 (incl in buildings)
Life assurance ......................... 19
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 20
Emergency fund.......................... 0
Total monthly expenses.................. 1986.7


Assets
Cash.................................... 0 OK - you show monthly amounts for things like presents, holiday etc - you're not spending those amounts every months so where are you saving them if no cash assets?
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 303000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 18000....(840)......2
Total secured & HP debts...... 18000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................9218......200.......18.95 (I've just done a bad transfer so now this is 3218)
Sainsburys.....................159.......0.........? (+ 0% bal trans from Halifax = 3159)
Barclaycard....................5809......170.......0 (+ 0% bals trans from Halifax = 8895 incl 87 fee)
Paypal.........................718.......50........0
Virgin.........................8101......80........0
Total unsecured debts..........24005.....500.......- You need to redo this with the accurate amounts for the monthly payments on everything here to make this clearer.


Monthly Budget Summary
Total monthly income.................... 2,525
Expenses (including HP & secured debts). 1,986.7
Available for debt repayments........... 538.3
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... [STRIKE]38.3[/STRIKE] 458.30 allowing for the change in the figure above

Personal Balance Sheet Summary
Total assets (things you own)........... 303,000
Total HP & Secured debt................. -18,000
Total Unsecured debt.................... -24,005
Net Assets.............................. 260,995

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I think I've done this right??

I'm in my overdraft every month but so far I'm not going over. OK you REALLY shouldn;t be in your OD at all looking at the surplus you have - and now you've identified the spending issues that should rein in pretty easily.
I was pretty bad at drinking every evening (1 bottle between us and a nightcap or two) but have vowed to give up booze for November. Allowing for your aformentioned issues with anxiety and depression that sounds like an extremely good plan - you know drinking alcohol to excess (yes, you were, and it sounds like you know it) is a common factor in depression, right?

Help!

OK the good news is that once that error on the mortgage is accounted for you have a good, healthy surplus. (In excess of 6k a year)

There's not much slack on your SOA subject to the answers on a few questions, and I do think you need to factor in some spending money for yourself - doesn't need to be much, but definitely something, so you don't beat yourself up if you DO spend small amounts unplanned.

Are you still using the CC's? If not then set all the direct debits to a few pounds above the current minimum and leave them to run - then start attacking the one with the highest APR first. Once that's gone you turn your attention to the next highest OR the first one on which the 0% rate will run out. either way though setting the DD's to a set amount rather than the "minimum payment" is a great way of chipping away at debt a little more than you would otherwise. It really does work!

Oh, and talk to your OH - that's not a secret you need the stress of keeping, and he'll feel dreadful if he finds out later you didn't feel you could tell him.

HelleBelle

Thanks Laura @natdebtline - I will switch bank accounts

EssexHebridean - Thank you. I appreciate the candour which is much needed! I think I have made a few errors in my SOA... My mortgage is 180,000! I've done the remortgage calculator and we're on a reasonable deal, locked in until July 2018
I have a lot of random spending - this and that on Amazon, buying drink ad hoc therefore not included in the groceries.
Yes, my fuel is about that high. I commute 30 miles each way to work and my car does about 36mpg.
I think my car expenses will be a little higher. My OH normally does all the servicing and he normally buys the parts he needs to do so (whereas I get all the groceries for the household).
Childcare: We have an au pair (hence 3 adults) and pay her £100 per week (rounded up to £500 per month input into the joint account to build up a surplus). I used to use childcare vouchers until my youngest started school this year. I still have the account open with a token £1 per month just in case....
I did use one CC last week to buy some new glasses but I WILL STOP NOW! I ought to know that I cannot trust myself with a CC.
I will talk to OH... we have a good relationship so I should be able to talk to him. I guess I'm embarrassed.
I think I need to go through my bank statements and have a look at where my money goes.... I definitely don't have excess each month :huh:

HelleBelle

Just took a look at my October spending.... I thought I spent £300 on groceries but when I add up all the supermarket shop etc..... it was £800 :mad:
Reality check!
In my defence, my Dad was staying with us during half term and we ate more luxuriously but even so, this is ridiculous.
November will be better. It has to be!:)

nkkingston

Food spends are often the area where people get their estimates most wrong. It's also one of the easiest areas to control, because a bit of meal planning and some online shopping allows you to stay absolutely on top of your spending.

Do you and your partner have a joint account the bills come out of, or do you each pay your separate shares out of your own accounts? If you're spending £800 a month on food (and it won't just have been this month, tbh) then your household spending is almost certainly outpacing his. There are multiple ways to approach it, but ideally you want to be putting into your essential spends amounts equivalent to your incomes - so whoever's paid more contributes more to the household costs. You can decide between you what counts as household costs (do clothes count, for example? Women's clothes are more expensive and fall apart more quickly than mens, which makes it hard to "fairly" divide a clothing spend) but it's important that it doesn't become a my money / your money scenario.

While you're in debt it may not be the best time to open a joint account, since it'll financially link you, but I would definitely consider one of your opening a basic account to pay all bills and household costs out of. Putting your essential money into another pot can also help with your spending, because you can see how much you've got left each month.

Marisco

You have income listed as £2389, and partners income as 0, is this correct? I only ask because if one of you are not working, why do you need an au pair? That would save £500 pm straight away.

EssexHebridean

Marisco wrote: »

You have income listed as £2389, and partners income as 0, is this correct? I only ask because if one of you are not working, why do you need an au pair? That would save £500 pm straight away.

This is clearly explained in the thread - they DO both work, and the expenses on the SOA represent half of the outgoings, for the most part.

Hellebelle Yep I did smell a rat with that grocery spend - it was either half or you were underestimating a LOT!

Try this as a starting point - do a full audit of cupboards, fridge, freezer etc, and work out exactly what you have. From there you write a week's meal plan - the aim is to make your meals as much from what you have in as you can - in other words, you make your week's shop cost as little as you possibly can, that first week. From then on, Fridge audits need to happen weekly - before you shop. Note down anything that is lurking in there that needs using, and prioritise the use of that when you write your meal plan. Shop with a list ALWAYS and oinly buy what is on that list, and as you have cars, you can aim to so a single shop, once a week - ditch the "top up shops" - if your list, and your plan, was accurate, you won't need them.

Remember to tell other members of the family that the way you're shopping is changing, so the milk/bread/cheese/whatever they see is ALL there is for the week, and once it's gone, it's gone. Familiarise yourself with prices for items you buy most often and work out where they can be got cheapest. Abuse supermarket vouchers shamelessly - I'm a devoted Sainsbugs shopper at the moment because they've sent me a load of vouchers for £3 or £4 off £20 spends. Once those are gone though I will cheerfully butterfly back to T's or Mozzas or wherever seems best at the time! Alsi and Lidl can be good but personally I find they don't work for me for a full week's shop - a great way of keeping costs down though can be to meal plan partly around their "pick of the week" or "Super 6" offers - ie if cauliflowers are cheap, make cauliflower cheese!

Getting a really good grasp of prices is half the battle I think - we have mentally set "target prices" for certain things so we know if we see an offer that puts something within that price it's good to buy. Oh, and another one on offers - they cycle round, so if you have lots of, say washing up liquid, and see an offer for it at the target price, you can safely ignore it knowing there will be another identical offer along somewhere very soon indeed!

HelleBelle

Thank you. I've set a meal plan for the week and will tighten the belt. Am also trying to eat a lot healthier so the two will go hand in hand.
I've done a meal plan and shopped for the required ingredients. We do need to top up mid week with bread and bananas as they don't last long but I can do this in a managed way by getting enough cash out for it and putting it in the household pot for our au pair. Then I'm not tempted to buy anything extra!
I really appreciate the advice