Taking control so we can enjoy life

Soph890

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 1450
Benefits................................ 0
Other income............................ 40
Total monthly income.................... 3190

Monthly Expense Details
Mortgage................................ 589
Secured/HP loan repayments.............. 297
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 136
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 125
TV Licence.............................. 13
Satellite/Cable TV...................... 56
Internet Services....................... 0
Groceries etc. ......................... 240
Clothing................................ 1
Petrol/diesel........................... 120
Road tax................................ 12
Car Insurance........................... 30
Car maintenance (including MOT)......... 1
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..................... 17
Contents insurance...................... 0
Life assurance ......................... 19
Other insurance......................... 0
Presents (birthday, christmas etc)...... 1
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 1
Total monthly expenses.................. 1810


Assets
Cash.................................... 0
House value (Gross)..................... 229950
Shares and bonds........................ 0
Car(s).................................. 13000
Other assets............................ 0
Total Assets............................ 242950

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 165000...(589)......0
Secured Debt.................. 45990....(1)........0
Hire Purchase (HP) debt ...... 15000....(296)......0
Total secured & HP debts...... 225990....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
(Unnamed debt).................800.......100.......0
(Unnamed debt).................16800.....348.......0
Total unsecured debts..........17600.....448.......-


Monthly Budget Summary
Total monthly income.................... 3,190
Expenses (including HP & secured debts). 1,810
Available for debt repayments........... 1,380
Monthly UNsecured debt repayments....... 448
Amount left after debt repayments....... 932

Personal Balance Sheet Summary
Total assets (things you own)........... 242,950
Total HP & Secured debt................. -225,990
Total Unsecured debt.................... -17,600

Soph890

Net Assets.............................. -640[/b]

Soph890

Hi everyone ��

So I’ve decided to start a diary to try and help me on my journey to becoming debt free.

A little about me .... I’m 30, married, homeowner, no kids. We have a car on PCP finance, £800 on a credit card and £16,800 on a loan. We have disposable income so not really sure why we always find ourselves skint at the end of the month waiting for payday!!

Most of our debt is from our wedding and buying our dream home. Obvs it’s also from just generally living beyond our means!! We don’t currently budget for holidays, birthdays etc so I haven’t added them it but know that going forward I need to include money for things like this.

I’ve found it really motivating reading all your diaries.

Any help or advice is much appreciated!!

Lovely to meet you all ��

MovingForwards

Spread your council tax over 12 months, if it isn't already.

Look to ditch the PCP and buy a runabout. You will be quids in.

Do you not have to pay for repairs/tyres/MOT?

Shop around for better gas / electric providers.

SIM only phone as that's a lot you are paying out.

What package do you have for your sky/cable money?

You never go to the Dr? Have your eyes tested? Go to the dentist? Or buy any over the counter meds?

Buildings insurance, that includes contents?

You never get a haircut?

Never go out?

Be honest, do you really only spend £240 on food/booze?

You never buy smalls/ new clothes for work/for going out?

You own a home but have no emergency fund?

And you need a holiday fund if you go away.

You need to keep a strict diary about where you are spending, write down everything each day and you will soon sus where your money is going.

Weekly coffee at work? Lunches? It soon builds up.

Good luck and sorry if you think it's harsh, it's not meant to come out that way

Soph890

No doesn’t sound harsh at all and is exactly the type of help I need

Council tax is already over 12 months (high banded newbuild!)

Tried to hand car back but £3500 negative equity, I can hand it back in 21 months. I’ve been trying to weigh up buying a run around and just paying the £3500 off. My PCP deal included all maintenance for the 4 years.

Just switch gas and electricity but we have a lay z spa so usage jumps in the summer.

Tied into contract on mobile phones but looking to switch to SIM only when they run off. I have 30% discount as ex employee and the £40 extra income is for my brothers phone so we pay £40 each phone.

Just dropped sky to lowest package, that is also broadband - we were paying over £100 which is shocking!!

Yep, insurance is both buildings, contents and boiler cover.

£60 a weeks shopping seems to be ok for us, we’ve swapped to LIDL.

No emergency fund - do you think I should prioritise this before the debts? I’m never sure which way to do this so any help is appreciated.

All the other things you have mentioned are where we are going wrong! We spend a lot on haircuts, clothes etc and generally ‘living the lifestyle’. This is the first year we have gone without a sunny holiday and it’s really been hard. We both have quite stressful jobs so I would love to start a holiday fund so we have something nice to look forward to.

We’ve opened a joint bills account. We have both agreed to pay in a set amount each month then see what we’re left with and budget with that. Do you think this is a good way of doing it?

Thanks for your help - any advice is much appreciated.

ratrace

Hi welcome to the forum

The secured loan it says you pay only £1 a month is that correct also what was that for, was it the help to buy loans that are offerd to ftb's to get on the property ladder etc... if so when is it due to be paid back

Do you have anything of value that you could sell ie: phones gadgets clothes you no longer wear etc... that would help pay down the debt faster

you car per month is killing you to be honest £297 + £120 + £30 = £447 so thats a whole week you have to work just for the car (one wage £1700/4=£425 per week)


Again mobiles are very very high, i pay £10 per month sim only and always buy my phones used

hope you dont think im being harsh as people can get offended when you point out where they have over spent

FootyFanDan

Hey

Firstly welcome to the forum , there is some very knowledge people that will be able to offer some fab advice. I would say the thing I was surprised at when I did my SOA was the amount of money that was disappearing without trace, its only when you dig deeper you realise that I was not budgeting correctly. It will take a little time to get the SOA right but a spending diary will help track where the hole the money disappears to is haha:)

Good luck with your journey

Soph890

Hi

Yeah the secured loan is HTB loan. It’s interest free and due to be paid back August 2022 or the interest kicks in at £75 per month.

I agree with the car but hadn’t realised it was a weeks wages, it’s scary when you see it like that. I’m stuck between a rock and a hard place, my fault I signed for it before realisation hit how much it would cost. I’ve spoke to company and it’s actually £4500 to hand it back. The other option is I buy it, the man sell it myself but again I will lose approx £3500 looking at auto trader values.

Definitely not offended - any advice is good advice to me. I think others can see what sometime we can’t .

Soph890

Thanks FootyDanDan, I think a spending diary will definitely help.

I’ve just done a rough count and think we’re spending over £100 a month just on coffees from costa!! Disgraceful really!

Time to tighten our belts!!

FootyFanDan

Soph890 wrote: »

Thanks FootyDanDan, I think a spending diary will definitely help.

I’ve just done a rough count and think we’re spending over £100 a month just on coffees from costa!! Disgraceful really!

Time to tighten our belts!!

I know that feeling! :rotfl:it is crazy and i was spending on coffees and work lunches as well as buying food in that was supposed to be for lunches it can get so out of hand. It is only when you sit and go through things you realise it. I try to use Costa for a treat every so often rather than a nessecity.

enthusiasticsaver

You have plenty of income and debt is not horrendous so I think you have more of a budgeting problem.

I think you have probably over extended yourselves with the wedding and car but given there is a surplus it is fixable.

First you need emergency savings.

A spending diary will show where you are overspending.

Start saving for presents, car maintenance, holidays, annual bills like insurance, car tax etc.

A joint bills account is a good start. Well done on tracking down £100 on the coffee each month. It is shocking when you see it in black and white.