Debt Free WILLabes!

Janner89

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1338.62
Partners monthly income after tax....... 0
Benefits................................ 1640.85
Other income............................ 0
Total monthly income.................... 2979.47

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 625
Management charge (leasehold property).. 0
Council tax............................. 153
Electricity............................. 56
Gas..................................... 0
Oil..................................... 25
Water rates............................. 98
Telephone (land line)................... 12.5
Mobile phone............................ 47.03
TV Licence.............................. 0
Satellite/Cable TV...................... 5.99
Internet Services....................... 12.5
Groceries etc. ......................... 526
Clothing................................ 0
Petrol/diesel........................... 240
Road tax................................ 34.99
Car Insurance........................... 105
Car maintenance (including MOT)......... 108.5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 272.82
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 45.34
Buildings insurance..................... 0
Contents insurance...................... 18.38
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 40
Total monthly expenses.................. 2441.05


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Family Loans...................6200......200.......0
Housing Benefit Repay..........1891......100.......0
Credit Cards...................1500......100.......0
Halifax Overdrafts.............5000......80........0
Southern Electric..............400.......20........0
Total unsecured debts..........14991.....500.......-


Monthly Budget Summary
Total monthly income.................... 2,979.47
Expenses (including HP & secured debts). 2,441.05
Available for debt repayments........... 538.42
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... 38.42

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,991
Net Assets.............................. -12,491

Janner89

Sorry for the delay in getting this on. As you can see we can afford the repayments on our debt however the £80 monthly repayment on the Halifax Overdraft is just for fees. It isn't actually paying anything back. We've also been very fortunate in that a family member has written off £2k of debt we owed since I initially posted last week.

determined_new_ms

Janner89 wrote: »

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1338.62
Partners monthly income after tax....... 0
Benefits................................ 1640.85
Other income............................ 0
Total monthly income.................... 2979.47

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 625
Management charge (leasehold property).. 0
Council tax............................. 153
Electricity............................. 56
Gas..................................... 0
Oil..................................... 25
Water rates............................. 98 can you look at water saving options? This seems very high. We pay £41 pm for water and live in the SE which is generally quite expensive for water
Telephone (land line)................... 12.5
Mobile phone............................ 47.03 how many phones is this for? Seems a bit high to me. My contract is £15pm unlimted called & texts & more than enough data
TV Licence.............................. 0 should you have anything here?
Satellite/Cable TV...................... 5.99
Internet Services....................... 12.5
Groceries etc. ......................... 526 this is high and you could realistically cut this down to £250. There are 3 of us in our house and we spend about £200-220. Look at ways to bring this down
Clothing................................ 0 you need something here
Petrol/diesel........................... 240can this be reduced? Car used less? I try to use my car as little as possible when not working
Road tax................................ 34.99
Car Insurance........................... 105this seems high
Car maintenance (including MOT)......... 108.5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 272.82 what's this for? Can it be reduced?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 45.34 if there a reason why this is so high?
Buildings insurance..................... 0
Contents insurance...................... 18.38
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 you honestly never spend anything here?
Haircuts................................ 15
Entertainment........................... 0as above this seems unrealistic
Holiday................................. 0
Emergency fund.......................... 40
Total monthly expenses.................. 2441.05


Assets
Cash.................................... 0 where is the £40pm going?
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Family Loans...................6200......200.......0
Housing Benefit Repay..........1891......100.......0
Credit Cards...................1500......100.......0
Halifax Overdrafts.............5000......80........0
Southern Electric..............400.......20........0
Total unsecured debts..........14991.....500.......-


Monthly Budget Summary
Total monthly income.................... 2,979.47
Expenses (including HP & secured debts). 2,441.05
Available for debt repayments........... 538.42
Monthly UNsecured debt repayments....... 500
Amount left after debt repayments....... 38.42

Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,991
Net Assets.............................. -12,491

I think this version of your budget is not the finished version. Some suggestions about reducing costs but you also need to work out what you are realistically spending each month

Janner89

Water rates are slightly higher because of a debt owed but only a month behind I'm under the impression it will drop but not a lot I wouldn't imagine. South West Water have ridiculous rates, I did look into it but appears we have one of the highest in the country.



Mobiles it is for two. My contract runs out soon so the deals pretty old. It's for unlimited everything as I used to use it for a business I had but on a personal contract.


No TV, so no license. We don't use iPlayer either. Hence the 5.99 in the "Cable" catergory is Netflix.



The groceries part is essentially because we take out £80 a week for anything for that week. So food, Car parking, entertainment etc etc as it's all in cash I haven't got a clue what exactly the amounts are. We also have a bulk buy scheme we are a part of and have a budget of £150. Which is for anything but Fruit and Veg essentially.



I have to have a car for commuting. We home educate so my wife also needs her car for getting out and about. Unfortunate downside to very rural living is lack of public transport.


Car Insurance is for two vehicles. £105 a month is pretty reasonable for our ages and years driving.


Child expenses accounts for any activities and days out but around £150 is for a private Occupational Therapist we see three times a month.



Pet insurance is high because our dog had to have surgery last year and we claimed. He's likely to have future issues and insurance companies wont pay out if we swap as it's a pre existing condition. We've been told it will drop again next year as long as we don't claim.


Quite right, the £40 is just stashed for a rainy day. It rarely gets above £200 but it's a small fall back.

determined_new_ms

Maybe it would be a good idea to keep a spending diary for a month or two to see where the money is going specifically so you can see if there are any areas you can cut back on

when we were clearing our debt we kept our grocery spends very low and then had £100 for spending money. The rest of our cash went to debt repayments. I only spent £100 on clothes for the year. Anything we wanted to do above the £100 spending money we had to get extra money in. We probably had a similar income to you, although we didn't have 2 kids, and we cleared £16k pretty quickly by doing this.

Have a think about how you want to do this and what sacrifices you're prepared to make

fatbelly

Janner89 wrote: »

Water rates are slightly higher because of a debt owed but only a month behind I'm under the impression it will drop but not a lot I wouldn't imagine. South West Water have ridiculous rates, I did look into it but appears we have one of the highest in the country.

The highest, I think. But your rate is around what you'd pay on a rateable value basis. If you have a meter and you're using £98 per month there's probably a leak somewhere. If you're not on a meter, I suggest you look into swapping.

Janner89 wrote: »

The groceries part is essentially because we take out £80 a week for anything for that week. So food, Car parking, entertainment etc etc as it's all in cash I haven't got a clue what exactly the amounts are. We also have a bulk buy scheme we are a part of and have a budget of £150. Which is for anything but Fruit and Veg essentially.

Working in cash can help to concentrate the mind and £80 per week for groceries for a family of 4 is reasonable. But your soa is over £120 per week so you need to look at that too.

Janner89 wrote: »

I have to have a car for commuting. We home educate so my wife also needs her car for getting out and about. Unfortunate downside to very rural living is lack of public transport.


Car Insurance is for two vehicles. £105 a month is pretty reasonable for our ages and years driving.

Next time you get a renewal quote use all the tools on this site, and play with quidcco/topcashback (which you should use for everything you buy online). You might be surprised how much you could save there.

I don't think you need a debt management plan or insolvency at present. But it's close.

You do need to get out of that overdraft. There's some advice here

https://www.moneysavingexpert.com/banking/cut-overdraft-costs/