Venturing Out of the Vault (of Debt)

Pip_Boy_111

Ummmm no. I have no idea what's gone on with that 14 decimal place figure :rotfl:
The phone bill is landline,broadband,two sim only plans, bt sport lite all packaged up. I just couldn't really be bothered picking through the bill to separate it all out. As you can see after two attempts at this, it's an achievement to be breathing today :rotfl:

Pip_Boy_111

Ok coffee in hand. First thoughts looking at this.
Entertainment seems high. This soa is based on the last 3 months and has included things like new year, several christenings and birthday bash. I am 110% certain this is NOT our usual spend. However, it nicely highlights my philosophy of paying debt down relatively quickly, but not at the expense of living. Same for the tv and broadband. If we were really struggling then, yes, these would go/be cut back.
The cars....hmmmm. I'd already decided a few weeks back that these will go at the end of the term and be replaced by second hand cars (not bangers by any means). Possibly even just one car and a scooter. We just don't do the mileage anymore. Effectively, we have a nice ornament on the drive :rotfl:
I am p!eased with the grocery budget. We don't exactly to without but that figure shows we're doing things right.
Looking at this i'm happy that we seem to be enjoying a nice balance of debt repayment and enjoying life without being over the top (cars aside, plan in place for that).
I've just thought, I've forgotten to add in child benefit:mad: wow. Epic fail today. This and overtime goes towards debt anyway, so doesn't impact any other area of the budget i suppose.
Should probably go to bed :rotfl:

Sanctioned_Parts_List

Pip_Boy_111 wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2950
Partners monthly income after tax....... 388
Benefits................................ 147
Other income............................ 0
Total monthly income.................... 3485

Monthly Expense Details
Mortgage................................ 707.2
Secured/HP loan repayments.............. 416.20
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 146
Electricity............................. 58
Gas..................................... 50
Oil..................................... 0
Water rates............................. 40.78
Telephone (land line)................... 115.47 [Reasonable for quad-play phone, mobile, broadband and tv]
Mobile phone............................ 0
TV Licence.............................. 12.66
Satellite/Cable TV...................... 40.49 [Satellite and BT Sport?]
Internet Services....................... 0
Groceries etc. ......................... 257.95
Clothing................................ 11.66
Petrol/diesel........................... 50
Road tax................................ 14.16
Car Insurance........................... 35.41
Car maintenance (including MOT)......... 14.58
Car parking............................. 3
Other travel............................ 8
Childcare/nursery....................... 0
Other child related expenses............ 17.08
Medical (prescriptions, dentist etc).... 10.41
Pet insurance/vet bills................. 0
Buildings insurance..................... 13.61 [Buildings and contents together, right?]
Contents insurance...................... 0
Life assurance ......................... 50.27 [Whose? Does your company not provide life cover as part of its package?]
Other insurance......................... 0
Presents (birthday, christmas etc)...... 35
Haircuts................................ 9.25
Entertainment........................... 237.98 [As you noted, a little on the high side. Maybe £150pm is fair?]
Holiday................................. 41.66
Emergency fund.......................... 0
Total monthly expenses.................. 2396.82


Assets
Cash.................................... 0
House value (Gross)..................... 176000
Shares and bonds........................ 0
Car(s).................................. 24000
Other assets............................ 0
Total Assets............................ 200000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 141926...(707.2)....2.7
Hire Purchase (HP) debt ...... 24879....(416.2)....6
Total secured & HP debts...... 166805....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
LOAN...........................21212.3...407.9.....12.4
Barclaycard....................3429.83...90........0
Overdraft......................750.......0.........16.6 [The overdraft is a higher priority than the loan, for two reasons - first, it has the higher interest, second, the bank can call it in at any time, whereas loans are paid over a defined term, so focus overpayments here, first]
Total unsecured debts..........25392.13..497.9.....-


Monthly Budget Summary
Total monthly income.................... 3,485
Expenses (including HP & secured debts). 2,396.82
Available for debt repayments........... 1088.18
Monthly UNsecured debt repayments....... 497.9
Amount left after debt repayments....... 590.28

Personal Balance Sheet Summary
Total assets (things you own)........... 200,000
Total HP & Secured debt................. -166,805
Total Unsecured debt.................... -25,392.13
Net Assets.............................. 7,802.87

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

Well, tomorrow's my weekend, so I can sleep in for a change (hooray). Payslip arrived and it's a thing of beauty Looking at yours, really there's not a lot to do - you've got a good surplus, couple of little areas of waste, but nothing dramatic. Maybe post an update every 3 months or so, so we can follow your progress.

As much as I'd love a :beer: right now, it's illegal over here

Pip_Boy_111

“
Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2950
Partners monthly income after tax....... 388
Benefits................................ 147
Other income............................ 0
Total monthly income.................... 3485

Monthly Expense Details
Mortgage................................ 707.2
Secured/HP loan repayments.............. 416.20
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 146
Electricity............................. 58
Gas..................................... 50
Oil..................................... 0
Water rates............................. 40.78
Telephone (land line)................... 115.47 [Reasonable for quad-play phone, mobile, broadband and tv]
Mobile phone............................ 0
TV Licence.............................. 12.66
Satellite/Cable TV...................... 40.49 [Satellite and BT Sport?] Sky,Netflix
Internet Services....................... 0
Groceries etc. ......................... 257.95
Clothing................................ 11.66
Petrol/diesel........................... 50
Road tax................................ 14.16
Car Insurance........................... 35.41
Car maintenance (including MOT)......... 14.58
Car parking............................. 3
Other travel............................ 8
Childcare/nursery....................... 0
Other child related expenses............ 17.08
Medical (prescriptions, dentist etc).... 10.41
Pet insurance/vet bills................. 0
Buildings insurance..................... 13.61 [Buildings and contents together, right?] Right
Contents insurance...................... 0
Life assurance ......................... 50.27 [Whose? Does your company not provide life cover as part of its package?] Decreasing term to cover mortgage. Company provides death in service payment, which off the top of my head is a number of years salary. Somewhere around 3 rings a bell but not certain without digging out the contract, plus the pension would pay out if the unfortunate happened. Must watch DW. I'm worth more to her gone :eek:
Other insurance......................... 0
Presents (birthday, christmas etc)...... 35
Haircuts................................ 9.25
Entertainment........................... 237.98 [As you noted, a little on the high side. Maybe £150pm is fair?] Agreed and is usually the figure I aim for (give or take). As noted earlier, spendy few months
Holiday................................. 41.66
Emergency fund.......................... 0
Total monthly expenses.................. 2396.82


Assets
Cash.................................... 0
House value (Gross)..................... 176000
Shares and bonds........................ 0
Car(s).................................. 24000
Other assets............................ 0
Total Assets............................ 200000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 141926...(707.2)....2.7
Hire Purchase (HP) debt ...... 24879....(416.2)....6
Total secured & HP debts...... 166805....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
LOAN...........................21212.3...407.9.... .12.4
Barclaycard....................3429.83...90....... .0
Overdraft......................750.......0........ .16.6 [The overdraft is a higher priority than the loan, for two reasons - first, it has the higher interest, second, the bank can call it in at any time, whereas loans are paid over a defined term, so focus overpayments here, first] Absolutely the plan. £50 gone today. Another £350 on pay day. Paid off next month :j
Total unsecured debts..........25392.13..497.9.....-


Monthly Budget Summary
Total monthly income.................... 3,485
Expenses (including HP & secured debts). 2,396.82
Available for debt repayments........... 1088.18
Monthly UNsecured debt repayments....... 497.9
Amount left after debt repayments....... 590.28

Personal Balance Sheet Summary
Total assets (things you own)........... 200,000
Total HP & Secured debt................. -166,805
Total Unsecured debt.................... -25,392.13
Net Assets.............................. 7,802.87

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.
Originally posted by Pip Boy 111

Sanctioned_Parts_List wrote: »

Well, tomorrow's my weekend, so I can sleep in for a change (hooray). Payslip arrived and it's a thing of beauty Looking at yours, really there's not a lot to do - you've got a good surplus, couple of little areas of waste, but nothing dramatic. Maybe post an update every 3 months or so, so we can follow your progress.

As much as I'd love a :beer: right now, it's illegal over here

Added replies above. Thanks as always for taking the time to comment. Re: Beer. I shall be opening a bottle of the finest ruby beer (well, a good ruby beer anyway) to consume with one's tea of Cumberland sausage, egg and chips (fine dining in this household :rotfl:) Will savour it for the both of us :beer:

Sanctioned_Parts_List

Pip_Boy_111 wrote: »

Life assurance ......................... 50.27 [Whose? Does your company not provide life cover as part of its package?] Decreasing term to cover mortgage. Company provides death in service payment, which off the top of my head is a number of years salary. Somewhere around 3 rings a bell but not certain without digging out the contract, plus the pension would pay out if the unfortunate happened. Must watch DW. I'm worth more to her gone :eek:

I know the problem!

Your policy's quite expensive though - for a similar amount of cover, I pay about £30. Maybe shop around a little - the policy the mortgage broker advises isn't always the best value.

Pip_Boy_111 wrote: »

Re: Beer. I shall be opening a bottle of the finest ruby beer (well, a good ruby beer anyway) to consume with one's tea

Cruel, very cruel ;);)

Pip_Boy_111

Sanctioned_Parts_List wrote: »

I know the problem!

Your policy's quite expensive though - for a similar amount of cover, I pay about £30. Maybe shop around a little - the policy the mortgage broker advises isn't always the best value.

Cruel, very cruel ;);)

The price of policy is inflated due to the fact that vaping is apparently still classed the same as a smoker (nicotine product is how they define it). So unfortunately still paying for the dirty habit i kicked a while back. Have shipped around and most quotes were the same. i think the cheapest was around £1 P/m cheaper. I realise it's a lot of months but for the hassle of filling out forms I'll take the £1 penalty every month :rotfl:
Forgot to add. This covers both of us and covers critical illness. Got me thinking now. Tomorrow I will dig out the policy and check in detail what, exactly is covered. I'm sure I remember it covering the kids for certain illnesses too, but it may be my stupid, sleep deprived brain playing tricks :rotfl:

Pip_Boy_111

Early start, everyone off to school/work.
Have dug out the life cover documents and i was, indeed, correct. Good to know.:)
Some figures of the journey since 5/3/2019
Personal Loan 5/3/19 - £21620.29 - 29/3/19 - £21212.36
Barclaycard 5/3/19 - £3755.57 - 29/3/19 - £3429.83
Overdraft 5/3/19 - £800 - 29/3/19 - £750
Total starting Debt 5/3/19 - £26,275.86p
Debt @ 29/3/19 - £25,392.19p
Total Paid off - £883.67p (3.48%)

Pleased with the debt busting so far this month. A big help has been tidying up the loose change amounts in the joint account by rounding down to the nearest £ every so often. An extra £18.29p has been paid doing this :j

Morning Ramblings It's intriguing, the psychology behind debt. On the face of it I'm very good at budgeting, shopping around for the best prices and making things last with some old school make do and mend. Since 20 yrs old I've given up 10% of salary into the company pension schemes and have recently increased to 15% to try and retire in my late 50's. Retirement planning is another reason why I had my LBM. No point saving for retirement with £30k of debt in tow :eek:. But for some reason I just didn't see debt as a problem. Who knows why? Ironically even when buying things with credit I still shopped around for the lowest prices, so it wasn't like I was saying "to hell with it". It certainly makes me think. Why, when I was generally good with money and budgets, did I not consider that debt was money owed, rather than money of mine? How many others get into debt like this? I've seen many factors on here that contribute to debt. Spendaholics, keeping up with the Joneses, using credit to survive and then the people who, on the face of it, have no reason to be in debt. Yes, things were tight at one point in the distant past and I HAVE used credit to pay bills, but the majority is just from buying "things" or do work on the house that could, in reality, have waited until cash was saved up. Not to keep up or because I am a spendaholic, but just, well, who knows really. The dangerous part wasn't using credit. It was not considering the cost and time involved in paying it back or ,indeed, having a PLAN to pay it back. It was just available money. The mindset I had then horrifies me now. Strange how the human mind works...……

Enough rambling. Off to make a big batch of chilli for the freezer (homemade ready meals are a god send for work :money:)

efes_shareholder

Just popping by to say "welcome"

The reflection mirrors my own and hindsight is a wonderful thing , I hate the fact I am paying back "old" money , spent on things that I mostly can no longer recall

Pip_Boy_111

efes_shareholder wrote: »

Just popping by to say "welcome"

The reflection mirrors my own and hindsight is a wonderful thing , I hate the fact I am paying back "old" money , spent on things that I mostly can no longer recall

Hi and thankyou.
It is indeed and after my LBM the figure made me anxious and down. Thankfully I've been able to shake that feeling by looking at it as a challenge (or game). Rather than see the figures and get upset about it or mope about how it's money wasted I'm fortunate that I can see it as challenge to reduce the numbers. It actually (sad alert) makes me excited on paydays to watch the numbers tumble :rotfl:
I'm really lucky that I can have this mindset and not get anxious and worried about it. Like I say, the mind is a strange thing

Sanctioned_Parts_List

Pip_Boy_111 wrote: »

But for some reason I just didn't see debt as a problem. Who knows why?

There was another thread along these lines not long ago. For a lot of us, debt was almost normalised at university, with the easy credit conditions and low charges creating a kind of "minus blindness" that meant, when we finally exited the protective environment of academia and became liable for interest and charges, we didn't really see the problem with being in debt, and just meekly handed over high percentages of interest each year.

Actually curing oneself of "minus blindness" is a tough challenge - it's rather like that first cigarette, a habit best not caught in the first place, but tough to kick once you have it.