Spending more than I earn and don’t know what to do!

[Deleted User]

Hi All,

I’m hoping I can find help on this forum as I feel so lost on what to do! I just keep getting more and more in debt every month and I feel like my attempts to stop it are useless.

I have done the MSE Budget Brain and I’m spending £224 more than I’m earning!

I have debt which I’m paying off each month and have recently moved my credit card debt through the 0% balance transfer to reduce interest expense and to pay it off quicker.

I have went through every bill I have and reduced them down. I don’t know what else to do because I can’t carry on like this!

chevalier

hi there try filling in this and see where you can cut back
http://www.stoozing.com/calculator/soa.php
format it for MSE and then you can post it on here.
good luck
chev

MrsSave

It's definitely time for an soa. There will probably ways to save money that you haven't noticed.

fatbelly

And there are ways to deal with the debts

[Deleted User]

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 150
Other income............................ 0
Total monthly income.................... 1750

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 480
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 40
Gas..................................... 45
Oil..................................... 0
Water rates............................. 53
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 27
Groceries etc. ......................... 225
Clothing................................ 20
Petrol/diesel........................... 200
Road tax................................ 17
Car Insurance........................... 92
Car maintenance (including MOT)......... 20
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 34
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 11
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 26
Holiday................................. 0
Emergency fund.......................... 0
Prescriptions .......................... 11
Overdraft interest ..................... 30
Total monthly expenses.................. 1567


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................2750......0.........20
Credit Card....................2500......60........30
Loan 1.........................2650......130.......15
Loan 2.........................5000......91........15
Total unsecured debts..........12900.....281.......-


Monthly Budget Summary
Total monthly income.................... 1,750
Expenses (including HP & secured debts). 1,567
Available for debt repayments........... 183
Monthly UNsecured debt repayments....... 281
Amount short for making debt repayments. -98

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,900
Net Assets.............................. -8,900

fatbelly

First impressions are that your soa looks realistic

You are not overspending £224 on this as your first post said - you are £98 short. I suspect as things stand though it is worse than this as your overdraft will not be fee and charge-free at £2750 overdrawn, or is it?*

I think you're heading for a debt management plan over around 6 years. Your first priorities are a new bank account unconnected to your debts and an emergency fund..

* Just noticed it's costing £30 per month in your expenditure list

PS Have you put prescriptions in twice?

Sagz_2

Gas and electricity seem high, we pay a total of £44 a month for dual fuel for a 2 bed house. Have you investigated switching?

Jon_B_2

Only one income. Why can’t you have 2? Even a minimum wage job would be bringing in nearly a grand a month.

[Deleted User]

@fatbelly - Yes I though did the MSE budget brain but this has worked out slightly better. Is it worth having a separate bank account because i feel I will pay more interest as when my wages go in I’m paying interest on less of a balance for part of the month if this makes sense so I feel it may be counter productive to by at 2750 for the entire month and pay more interest. Totally agree about the emergency fund!

@Sagz - I have but I don’t understand it fully. I’ll have a look around on MSE switching guide again and see if I can work it out thanks.

@Jon B - My wife is currently unable to work but is not eligible for benefits so for now it’s just the one income.

fatbelly

Sagz wrote: »

Gas and electricity seem high, we pay a total of £44 a month for dual fuel for a 2 bed house. Have you investigated switching?

Seems average to me but always worth a check and, if you go to Bulb, use a referral link and collect £100 provided you do it before the end of Monday.

Panda - if you're going for a debt management plan - and I accept you haven't made that decision yet - then the £2750 overdraft is a debt that you walk away from and put in the plan.

It must be with a different bank family and also a different family from the loans and credit card, as they would retain the right to take money from your bank account by right of set-off.

You'll only be able to build up an emergency fund once you take the decision to stop paying the debts and moved away from that bank, and there would be a short period before you re-started payments through the dmp.

Lungboy

£92 a month for car insurance seems high, as does £53 for water. Internet and mobile can be found quite a bit cheaper. Nothing on contents insurance?