34 and new to debt (SOA included)

chelseablue

Think I need to put my thoughts down somewhere and see if anyone can help!

I'm 34 and up until this year have never been in debt but this year has turned out to be the most expensive ever so have had to put some on my Barclaycard and loan

We're getting married in June (but that's all paid for from savings, NO borrowing)

We had to buy a car last month, so had to get a loan as savings are for the wedding.

In December we are going to Australia on honeymoon/family holiday (had to put the flights on my credit card as savings are for wedding)

Obviously going to Australia isn't the best idea but its a one off holiday, our son will only be in Reception (he wont be missing school any other year) plus husbands uncle lives out there and has cancer so might be the last time we see him

SOA:

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.................... 2

Monthly Income Details
Monthly income after tax................ 2050
Partners monthly income after tax....... 1800
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 3932

Monthly Expense Details
Mortgage................................ 791
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 157
Electricity............................. 61
Gas..................................... 0
Oil..................................... 0
Water rates............................. 17
Telephone (land line)................... 0
Mobile phone............................ 58
TV Licence.............................. 12
Satellite/Cable TV...................... 35
Internet Services....................... 41
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 210
Road tax................................ 19.25
Car Insurance........................... 65
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 220 This will end in September
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2166.25


Assets
Cash.................................... 16000
House value (Gross)..................... 435000
Shares and bonds........................ 5200
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 464200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 220000...(791)......1.79
Total secured & HP debts...... 220000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................7200......190.......15.7
Nationwide Loan................5800......136.......4.5
Lloyds.........................2482......110.......0
Sainsburys.....................916.......40........0
Total unsecured debts..........16398.....476.......-


Monthly Budget Summary
Total monthly income.................... 3,932
Expenses (including HP & secured debts). 2,166.25
Available for debt repayments........... 1,765.75
Monthly UNsecured debt repayments....... 476
Amount left after debt repayments....... 1,289.75

Personal Balance Sheet Summary
Total assets (things you own)........... 464,200
Total HP & Secured debt................. -220,000
Total Unsecured debt.................... -16,398
Net Assets.............................. 227,802

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

We should have about £5,000 savings left after the wedding so I'm planning on sending it straight to Barclaycard but nervous about having no savings left so maybe I should keep £2,000 back?

Need to also save up for the spending money in Australia

When we're back in January my plan is to pay off the debt at £500 a month and save £500 a month

chelseablue

Should also add the Lloyds and Sainsbury's cards are 0% until 2020, the £110 and £40 direct debits that go to them will ensure they are cleared by the end of the 0% deal

Oh and I don't have the actual cards, they were cut up as soon as they arrived!

The only card I have is Barclaycard that I used to clear in full each month until I bought the flights on it

indesisiv

After your wedding you have 6 months before your honeymoon? Personally I would clear the barclaycard with your savings and then save again for the honeymoon spending money.
If your SoA is correct you have over £1k each month after debt repayments so with clearing the barclaycard you could then save that payment and have £1.5k each month to save. (Would save you a fortune in interest charges)

Other than that you have zero for car maintenance, parking. Also you spend £200 a month on entertainment (whilst not extravagant on your wages) you have £0 in clothing? Even with a child?
Also no life insurance or contents insurance?
£76 on satellite and internet, can you not join these together and get it cheaper?

I guess the question is do you really have over £1k left at the end of each month?

ReadingTim

chelseablue wrote: »

Mobile phone............................ 58
Satellite/Cable TV...................... 35
Internet Services....................... 41
Groceries etc. ......................... 200
Presents (birthday, christmas etc)...... 50
Entertainment........................... 200

Clothing................................ 0
Car maintenance (including MOT)......... 0
Contents insurance...................... 0
Life assurance ......................... 0
Holiday................................. 0
Emergency fund.......................... 0

All of the amounts in the first set of figures should be reduced, as they're wants not needs. However, you need some numbers for the 2nd set of figures. Take some of the savings you make from the frivolous spending in the first category and allocate them to the sensible boring amounts you need to save in the 2nd.

chelseablue

indesisiv wrote: »

After your wedding you have 6 months before your honeymoon? Personally I would clear the barclaycard with your savings and then save again for the honeymoon spending money.
If your SoA is correct you have over £1k each month after debt repayments so with clearing the barclaycard you could then save that payment and have £1.5k each month to save. (Would save you a fortune in interest charges)

Other than that you have zero for car maintenance, parking. Also you spend £200 a month on entertainment (whilst not extravagant on your wages) you have £0 in clothing? Even with a child?
Also no life insurance or contents insurance?
£76 on satellite and internet, can you not join these together and get it cheaper?

I guess the question is do you really have over £1k left at the end of each month?

Yes, we have 6 months between wedding and honeymoon so will be saving up spending money.

We don't spend anything on parking, we park at work for free
For car maintenance we normally take it from savings.

Haven't bought any clothes since December and even that was £8 from Sainsbury's for some new tops for my son

Yes we do normally have £1k a month left over, which we've been saving for the wedding.

chelseablue

ReadingTim wrote: »

All of the amounts in the first set of figures should be reduced, as they're wants not needs. However, you need some numbers for the 2nd set of figures. Take some of the savings you make from the frivolous spending in the first category and allocate them to the sensible boring amounts you need to save in the 2nd.

The £58 for mobiles is for both of them, mine is sim only. When husbands is out of contract I can reduce his

The internet is with BT and includes line rental and the BT Sport Channel (will be getting rid of in July)

The £200 entertainment is what husband keeps from his wages, he transfers the whole lot to me so I guess I cant complain about him having a bit of his own money :rotfl:

BoGoF

Personally I would pay the minimum to the 0% cards and pay extra to the Barclaycard.....borrowing @ 15.7% is expensive.

Candyapple

Is your car insurance £65pm in total for 2 people?

Your electricity seems high. What about gas or is your electricity bill combined to include gas?

Do neither of you ever visit the dentist for a check-up?

You need to put something in the emergency fund.

With regards to Barclaycard, if you don't want to clear it right now you can call them up and ask them to reduce the APR, lots of people have reported success recently of getting them down to 9.9% APR, which seems to be their given rate for the past 3 years now.

https://forums.moneysavingexpert.com/discussion/5308285/negotiating-lower-rate-barclaycard

chelseablue

Candyapple wrote: »

Is your car insurance £65pm in total for 2 people?

Your electricity seems high. What about gas or is your electricity bill combined to include gas?

Do neither of you ever visit the dentist for a check-up?

You need to put something in the emergency fund.

With regards to Barclaycard, if you don't want to clear it right now you can call them up and ask them to reduce the APR, lots of people have reported success recently of getting them down to 9.9% APR, which seems to be their given rate for the past 3 years now.

https://forums.moneysavingexpert.com/discussion/5308285/negotiating-lower-rate-barclaycard

The car insurance is just my partners, he only passed 4 years ago, its up in July and I always shop around every year.

Sorry the £61 is for gas and electric

Funnily enough I went to the dentist on Monday, was £21 for a check up. I just paid on my debit card.

Never thought of asking them to reduce the interest. Does that leave any mark on my credit file?

BoGoF

You are making your monthly surplus look better than it actually is by not including things such as car maintenance etc. Where is your car insurance? Might be better to set up 'pots' for these type of expenses. As things stand your savings are not really savings.

chelseablue

BoGoF wrote: »

You are making your monthly surplus look better than it actually is by not including things such as car maintenance etc. Where is yourcan insurance. Might be better to set up 'pots' for these type of expenses. As things stand your savings are not really savings.

Yes that's true. My car insurance is around £250 so I pay it in full each year.

I pay it from the current account, so that month instead of saving £1,000 I'd only save £750 that month.

Same in February when I pay the buildings insurance, this year it was £125 for the year so I just paid it on the debit card and saved less that month.

Probably the wrong way of doing it I have a current account I don't use so I can divide the yearly cost by 12 and move that amount into there