Time to take control

Midgetgem82

Good afternoon peeps

I took a look at YNAB and quickly decided its not for me and i much prefer good old fashioned pen and paper.

Colour coding spends is a good idea im going to steal that one, will definitely make it easier to see what im spending.
I already have a list of all my bills and tick them off as they leave my account each month.

I have indeed checked out the apr on all my accounts and am shocked to see that its as high as 47.9% on my very account. I think im going to focus on getting rid of this as quickly as possible.

Had a couple of really good spending days. spending on groceries and only splashing out £6.50 on a brand new coat for myself from the charity shop. Today will be a no spend day.
Ive also decided to try and deal only in cash, leaving enough to cover the bills in my account and removing the rest so its easier to visually see how quickly it disappears. Im hoping this will make me think twice about spending.

enthusiasticsaver

Very is usually one of the most expensive cards out there but not seen one as high as 47.9%. That means that if the £100 payment you are making each month then £73 of that is interest meaning you are only reducing it by £27 a month. Can you edit the soa to show the interest rates on all your debts? You have quite a high surplus although there are gaps in your soa so yes any spare surplus should go to very initially firstly because the interest rate is high and secondly because it is the biggest. Some people start with the smallest debt and snowball. Personally I think the most sensible way is to target the most expensive.

As you rely on the car you need an emergency savings account in case it breaks down and you have no funds to repair it. Reaching for a credit card or sticking bills on the overdraft should be a thing of the past.

Midgetgem82

Here is an updated SOA
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 2952.18
Other income............................ 0
Total monthly income.................... 2952.18

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 895
Management charge (leasehold property).. 0
Council tax............................. 28
Electricity............................. 52
Gas..................................... 52
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 107
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 27.74
Groceries etc. ......................... 320
Clothing................................ 30
Petrol/diesel........................... 200
Road tax................................ 13.12
Car Insurance........................... 20.23
Car maintenance (including MOT)......... 20.36
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 133
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 9.58
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 30
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 50
contact lenses.......................... 18
window cleaner.......................... 8
netflix + spotify....................... 23
Total monthly expenses.................. 2191.15


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
very...........................1825.21...0.........47.9
argos..........................698.02....0.........29.9
barclay card...................352.9.....0.........26.43
next...........................319.56....0.........22.9
Total unsecured debts..........3195.69...0.........-


Monthly Budget Summary
Total monthly income.................... 2,952.18
Expenses (including HP & secured debts). 2,191.15
Available for debt repayments........... 761.03
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 761.03

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,195.69
Net Assets.............................. -195.69#

I have looked on my very statements and can confirm the interest rate is correct at 47.9% paying roughly £44 a month purely on interest.
I have also got myself contents insurance today and am starting an emergency fund to cover any car costs that may crop up

Midgetgem82

So far today i had to send £4 each in to school with ds2 and ds3 for santa tickets and raffle tickets. £45 in the petrol tank as that was all that was left in my account until tomorrow.
I paid a cheque into my other account last week and that cleared this money so made a token payment of £11.88 to my very account, doesn't feel significant but i must remember that all these small amounts add up and will help more than i realize right now.
I have put things on fb for sale and if and when they sell i think i will put the money in my emergency fund.

Forgot to put minimum payments in on the last SOA so just done that.

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 2952.18
Other income............................ 0
Total monthly income.................... 2952.18

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 895
Management charge (leasehold property).. 0
Council tax............................. 28
Electricity............................. 52
Gas..................................... 52
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 107
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 27.74
Groceries etc. ......................... 320
Clothing................................ 30
Petrol/diesel........................... 200
Road tax................................ 13.12
Car Insurance........................... 20.23
Car maintenance (including MOT)......... 20.36
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 133
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 9.58
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 30
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 50
contact lenses.......................... 18
window cleaner.......................... 8
netflix + spotify....................... 23
Total monthly expenses.................. 2191.15


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
very...........................1825.21...100.......47.9
argos..........................698.02....10........29.9
barclay card...................352.9.....10........26.43
next...........................319.56....20........22.9
Total unsecured debts..........3195.69...140.......-


Monthly Budget Summary
Total monthly income.................... 2,952.18
Expenses (including HP & secured debts). 2,191.15
Available for debt repayments........... 761.03
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 621.03

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,195.69
Net Assets.............................. -195.69

-taff

You could try to get a money transfer card at 0% and transfer your debt to that, at least you'll be paying no interest then.

Midgetgem82

Thanks Taff
I have tried but alas i dont seem to be able to get one, much to my annoyance

-taff

Then the other option is a loan, providing you cut up all cards and never ever use them again while you are paying off the loan, and don't apply for any more credit. And the loan would only be viable if you could get one with a low interest rate.

Electricity and gas are quite high, have you checked out switching?
You could also try the old style board for grocery shopping info, and a girl called jacks blog for cheap food ideas.

enthusiasticsaver

I think considering the Very account has such high interest then you should put as much of the disposable income towards that as possible. You need to start building up emergency fund too so selling stuff is a good idea to raise cash. I am still not convinced your soa is correct as where has the spare £600 been going? Some obviously on takeaway coffees but there must be other areas of overspending. I would up that very payment to £300 per month minimum.

thegreenone

On the coffee front.... could you buy, either a cheap coffee machine or just a cafetiere and make your own. Insulated mugs can be picked up quite cheap. Lidl Gold coffee is gorgeous.

Midgetgem82

Taff, ive also tried a loan and no success there either.
Ive bben looking on the os boards for tips and will try and get my groceries down too,,,,gas and electric im tied to until feb so will look at changing over then, not something i have done in the 10 years ive lived here.
Enthusiasticsaver, my SOA is how im planning on allocating money from now on whilst still going through statements and see where i spend. My biggest shock is definitely getting coffee from a certain coffeeshop beginning with C. nearly £200 last month, that must and will stop.
thegreenone I have a coffee machine at home and thermo mugs so need to be stricter about using what i have.