Why is spending money so easy......

badmemory

I can see I may have a problem with British Gas.  Nothing new there though their billing system used to be pathetic & I don't suppose much has changed in 4 years.  I am expecting mine to go up to approaching £200/month, so who knows what they are going to estimate!  I am really not looking forward to this at all.  I really enjoy having to tell the phone people to slow down & enunciate properly because I can't tell what they are saying.  People's Energy were a joy until they took on all the last ones as SoLR.

Snwps

Hi everyone, Im still here chipping away ever so slowly. When I started this diary back in 2019 I thought I'd be at zero by now but seem to be doing this is little bursts instead of being 100% all the time. Ah well Im in a better position now that what I was. 

Debt figure today is at £20,362.36. All of which is on 0% APR but I have a couple of deals ending this year. These are being prioritised. We have kept the cards cleared open and sitting at £0 balance and we use these to shuffle when the deals ends. (Not that I want to prolong things). 

I'm so close to this £20k mark its killing me. I've found it really hard to get under this for a long time now but Im determined to do it.

I've not been up to much since I last posted. Had a nice quiet Christmas and New Year. Moneywise:

Following one of my last posts, I had a right fight on my hands with British Gas which I'm glad to say, I think may be sorted now. They offered me a fixed tariff in October which I accepted. After a lot of contact and being promised this tariff on multiple occassions they finally admitted that the tariff was no longer available and it was not possible, I was gutted. The move to this tariff would save me around £80 per month compared to the Std Var Tariff. After a long escalated complaint a manager was finally able to put me on the tariff offered AND backdate it to October. This was such a worry, with the utility sector being in dissaray at the moment. I know this is an issue for a lot of people at the moment and its going to get worse before it gets better.

I done a remortgage to a new provider at the end of 2021. I managed to get a 5 year fixed mortgage at 0.99% so decided to pay the early penalty fees to my old provider and switch. It was really straightforward and looking back not sure why I worried so much. Now my monthly repayments are a lot lower and we've agreed to overpay to match the monthly amount we were paying and reduce the term of the mortgage. I know a lot would say to use this surplus to clear the debt but I'd rather continue as I am in clearing the debt and think of the mortgage on the old deal and quietly reducing in term in the background.

In 2021 I managed to keep up with the monthly savings to the savings pots. This helped me save for Christmas (not put it on the debt) and I'm on track to pay off all my insurances annually this year as I have the money ready. I've also got £400 in an emergency fund and have savings for Car Tax/MOT and Maintenance. My car needs new tyres ASAP and I have the cash ready. 

My home insurance is due early Feb and I've had my renewal invite. I've looked around and they seem to be the cheapest and only £2 more for the annual policy. 

I've been re-jigging my 2022 budget to see where more savings can be done. I'm either on the cheapest possible deal or the bill is un-challengable (i.e council tax). The other things to look at are grocery shop spends, (dare I say it again) Take away spends, and misc family spends. This last point includes Amazon purchases, which over Christmas has got a little out of hand, so I've set up a new 'field' on my YNAB named 'Amazon' to keep an eye on this. Need to get back in the mindset of needs/wants and hold off impulse purchases. 

Off to catch up on some other diaries. 

Snwps

Popping on to give a quick update. Last year you may remember that we had an issue with underpayment of PAYE through DH's 2nd job. To sort this, HMRC changed his tax code on his main job to reclaim and clear this tax in 21-22 tax year. I've just logged on to check how things are going and he originally owed £2144 and this is now down to £196.80. So relieved this is fast going down. It should be cleared by start of April for the new financial year. This means he wont be paying as much tax as he has been over the last 10 months so should have more disposable income (I've worked it out about £40 per week). This debt wasnt included in the overall figures I've been keeping track with. Still a step in the right direction.

Snwps

Debt update at 31/03/2022 - £19,710.19 = Paid off £17,753.06 (47.35%) Getting close now to the 50% paid off mark and Im relieved to finally be under the £20k barrier.

This month (March) a couple of 0% deals were ending so I done a shuffle which added some balance transfer fees to the debt. But everything is still on 0% until early 2023. 

DH started back as job #2. This will massivley help get this debt down by about £600-£750 extra per month on top of the DD's and snowballs already going on. Just need to stay focused and not think that 'well we are earning a little more so can afford to spend a little more WE CANT!!' 

All new April 2022 bills have come in and YNAB updated to new payments amounts. House insurance was sorted in Jan and we're back to saving monthly for 2023. Also started on the Christmas savings.

Finally sorted out BG and had the credit from old supplier. Figures are not great, like mose people I suppose at the moment, and we're all working hard to try and reduce usage (not easy with teens etc) but weather is changing so drying clothes is getting easier (no tumble/dehumidifier). I'm keeping track of reading and usage on my spreadsheet as well as using the smart meter IHD but dont trust that to be honest. 

Just been in touch with Sky as my broadband contract is ending in May and they wanted to increase my payments. Managed to keep it to what we're paying but getting a better fibre. So saved around £9.50/month.

Only a couple of birthdays and Easter in April and we dont go mad with the kids. So should be all budgeted in my pots. (Setting up savings pots has been a huge change in how I view our finances now. Plus Im impressed how I can keep money in the bank and not spend it, just because its been assigned a 'pot')

If I was 100% in April and didnt have any unessecary spends I could possiblt get it under £18k but that's a big IF. I'm going to aim for this but not be dissapointed if I cant reach that milestone.

shell16

Thought I would post after reading your journey from the very start.

Its definitely been a roller coaster ride hasn't it? I see the same issues throughout your journey being grocery spends, take aways etc. 

One thing I didn't see was a personal spends amount for both of you. I have set up a nominal amount of £25 a month for me and DH and i know this may not seem like alot but If I see something I can buy it without feeling awful or if I Don't want anything then it rolls over to the next month plus the new allocation.  Just a thought as you will feel you can treat yourselves especially if you are keeping on the debt repayments without any guilt.

Did you stop the Spending money for your sons??

I wish you all the very best going forwards 
Shell xx

Snwps

Thanks for your post Shell. You're right it has been a roller coaster but at least its going down I suppose. It does seem to be taking forever mind and it's a hard slog. I honestly thought we'd have cleared it all by now. It will be 3 years this May since I started my journey and we're half way there. It can be better, we must to better. 

No we dont really have personal spends. DH smokes so I would class his tobacco as his personal spends and I rareley buy stuff for me, unless I really need it, I feel guilty lol

On the pocket money front, no I havent stopped the payments yet. But good news, my DS2 has also got himself a little part time job and is due to start in the next few weeks. Once he gets his first pay I'll stop the pocket money as they'll both be earning their own pocket money going forward. In fact DS1 has a nice little savings pot in his bank account. He seems sensible with his money and dont frit it away (lets hope this continues)

BabyStepper

I just wanted to drop by and say congratulations on your DFW achievements - you have really come a long way. Your diary is motivating and will be really helping other DFW - ers. I can relate to all the struggles in the early days of debt repayment, trying to get a handle on budgets, etc. You're doing so well. It can be a long hard slog but do keep going, the rewards are worth it.  

I also wanted to say that with the cost of living is going through the roof, you are in a much, much stronger position to deal with it now. Well done. 

Snwps

Hi BabyStepper, thanks for your comment and encouragement, means a lot.

DH been paid today from job #2. Paid straight to cards so total debt now stands at £19,063.12 - 49.16% paid off. Almost at the 50% stage. Will reach this when the DD's come out over the next couple of weeks. 

Im concentrating on my Tesco card at the moment and the balance at today is £2,011.78. Hoping this one be cleared by end of May. 

List of balances:
Tesco £2,011.78
MBNA 2 £2,375.41
Halifax £2,521.53
MBNA £2,346.81
MBNA 3 £3,651.46
B/Card £5,731.53
HMRC £424.90

All on 0% until at least January 2023. List above is in order of when 0% ends.

Its been a while since I posted a SOA so may sort that a little later today seen as things have changed a little recently with bills going up and DH job #2 income etc. Plus Ive been keeping a really acurate spend diary for last 3 months (it's eyewatering!)

Snwps

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 4

Number of children in household......... 0

Number of cars owned.................... 2

Monthly Income Details

Monthly income after tax................ 1600.08

Partners monthly income after tax....... 2398.06

Benefits................................ 140.6

Other income............................ 0

Total monthly income.................... 4138.74

Monthly Expense Details

Mortgage................................ 366.6

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 133

Electricity............................. 140

Gas..................................... 50

Oil..................................... 0

Water rates............................. 54.74

Telephone (land line)................... 0

Mobile phone............................ 42.05. -- 4 sim only rolling contracts

TV Licence.............................. 13.37

Satellite/Cable TV...................... 49.5. -- TV/Fibre/Phone Line

Internet Services....................... 0

Groceries etc. ......................... 546.55

Clothing................................ 50

Petrol/diesel........................... 189.91

Road tax................................ 25. -- Paid Annually

Car Insurance........................... 35. -- Paid Annually

Car maintenance (including MOT)......... 25. -- Paid Annually

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 15 -- Paid Annually (Buildings and contents)

Contents insurance...................... 0

Life assurance ......................... 32.19

Other insurance......................... 0

Presents (birthday, christmas etc)...... 135

Haircuts................................ 10

Entertainment........................... 350  If I can half this I'd be happy! 

Holiday................................. 0

Emergency fund.......................... 50

Lunch Money............................. 40

Hobbies ................................ 150 - This is for allotment. Been high last few months as season starts. Will slow/stop going forward.

Bank Fee................................ 2

Tobacco................................. 180

Total monthly expenses.................. 2684.91

Assets

Cash.................................... 986.27

House value (Gross)..................... 160000

Shares and bonds........................ 0

Car(s).................................. 2

Other assets............................ 500

Total Assets............................ 161488.27

Secured & HP Debts

Description....................Debt......Monthly...APR

Mortgage...................... 78902.7..(366.6)....0.99

Total secured & HP debts...... 78902.7...-.........-   

Unsecured Debts

Description....................Debt......Monthly...APR

Tesco..........................2011.78...30........0

MBNA 2.........................2375.41...60........0

Halifax........................2521.23...25........0

HMRC...........................424.9.....20........0

Barclaycard....................5731.53...130.......0

MBNA...........................3651.46...90........0

MBNA 1.........................2346.81...30........0

Total unsecured debts..........19063.12..385.......- 

Monthly Budget Summary

Total monthly income.................... 4,138.74

Expenses (including HP & secured debts). 2,684.91

Available for debt repayments........... 1,453.83

Monthly UNsecured debt repayments....... 385

Amount left after debt repayments....... 1,068.83

Personal Balance Sheet Summary

Total assets (things you own)........... 161,488.27

Total HP & Secured debt................. -78,902.7

Total Unsecured debt.................... -19,063.12

Net Assets.............................. 63,522.45

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Snwps

I bought DS2 a nice new winter coat for Chrismas from a well known outdoor activewear brand. After wearing it for about 5 weeks he told me that the zip had broken. The zip teeth had come away from the plastic strip which was attached to the coat. I was gutted I paid £80 for that coat and ordered it slightly too big so that he could have plenty of wear out of it. I decided to contact the brand and ask if they had a guarantee and explained what had happened. They apologised and asked me to return the coat using the free postage address and they'd replace it. We've just received the replacement and I'm really happy with the level of customer service. I honestly have never done that before and didnt think they'd do this seen as I purchased it back in November. 

We got super lucky this week, someone was giving away a multi gym on facebook FOR FREE. These multigyms are really expensive new and can price from a few hundred £ to over a grand. Its in good condition with the weights etc. DS2 was super happy as he's been on about joining our local gym so this will save him money and help get him fit.

DS1 is hoping to start driving lessons in the next few weeks. Its £35 per lesson so he'll have one or maybe two a week. I need to readjust the budget to account for this. 

I need to get thinking about easter. My boys are older now so it's a more quiet affair. I'm planning on doing a little clothes shopping, they're desparate for new clothes, especially for summer, so that can be for easter instead of eggs/money. I'll combine the easter/clothes pots but may have to add more cos I can see this costing a pretty penny.