SOA and advice

DMc92

Sadly there is no good regular public transport where I live so a car is necessary for me to get to work! I commute about an hour each day.
I did go to the NHS before but was told for my particular hearing impairment type and because I am so young, it would be worth investing in a higher range pair that will last me a long time. Which is fair enough!

Indout96

ryanm8655 wrote: »

I’m stunned the NHS don’t provide hearing aids or financial help...sorry to hear that.

They do, including free batteries BUT they are no where near as good as is available privately. My dad had just gone from NHS to Private and its a massive improvement but just over £5k

Yellow_mango

So is the £77 for hearing aids actually a repayment plan of some kind? I’m wondering if it might be better treated as a debt that you could aim to pay off early and reduce monthly payments?

As an obvious point, the £337 payment on a £450 credit card is clearly over the minimum repayment. Is this a card that you pay off in full each month? In which case I wouldn’t include it - you might be double counting the card payment and the expenses you put on it.

That gives you £3-400 a month to play with for debt repayment.

Willing2Learn

Yellow_mango wrote: »

So is the £77 for hearing aids actually a repayment plan of some kind? I’m wondering if it might be better treated as a debt that you could aim to pay off early and reduce monthly payments?

I was wondering the same thing...

DMc92

Actually yes, the hearing aids are a repayment plan. I didn’t consider paying them off early for some reason.
Yeah, I pay off the credit card in full each month. But I always seem to end up reaching for it before payday. It’s a terrible cycle and one I need to kick.

Looking at the statement, I feel pretty ashamed. I used to be very good at budgeting and paying all my bills and rent on time. I realise it must look very irresponsible right now, and that I’m wasting the opportunity to save while living with family.

Kentish_Dave

What’s the situation with your partner; will they be working in the near future?

Willing2Learn

DMc92 wrote: »

Looking at the statement, I feel pretty ashamed. I used to be very good at budgeting and paying all my bills and rent on time. I realise it must look very irresponsible right now, and that I’m wasting the opportunity to save while living with family.

No need to fell ashamed. Most of us posting here have been down the same well trodden path as you.

If you make the changes suggested to your SOA and then repost it, then it will look far more healthy.

So, just to clarify, you need to:

• add the overdraft and monthly interest to your unsecured debts
• add the hearing aid to your unsecured debts
• make the outstanding balance and repayments for the card as £0, if you are diligently paying in full each month and paying zero interest/charges. (Or just remove this account totally)

getmore4less

Payment plans should be under debt as they finish at some point.
What interest rate are they charging?

£70pn fees on a £4500 OD is in the order of equivalent of 20%

Can you cut back on the trainer to 1/2 if one a week every 2 weeks

£140 on food is quite a lot if your rent covers household like toilet roll and cleaners.
As part of weight control you could bring that down.

Yellow_mango

Actually yes, the hearing aids are a repayment plan. I didn’t consider paying them off early for some reason.
Yeah, I pay off the credit card in full each month. But I always seem to end up reaching for it before payday. It’s a terrible cycle and one I need to kick.

Looking at the statement, I feel pretty ashamed. I used to be very good at budgeting and paying all my bills and rent on time. I realise it must look very irresponsible right now, and that I’m wasting the opportunity to save while living with family.

We’ve all been there. That’s why this is such a valuable exercise. Seeing it all in black and white and being forced to confront each item can in itself be transformational.

I have also been on the credit card float for a long time. Kicking it has been the best thing for my budget.

What I did was set up a separate current account, with no overdraft, for my discretionary spending. I then give myself a weekly allowance to cover food, shopping, entertainment etc. And when it’s gone it’s gone. I don’t allow myself to spend at all out of my main account, or on a credit card.

I can if necessary transfer more to my spending account from the main account (or ideally savings!) but i try to do this only for “needs” (eg car tyres) and not “wants” (eg takeaway). And it is done with very clear and conscious understanding, rather than being “accidental” overspending.

ReadingTim

DMc92 wrote: »

As for the trainer, I know this is a massive luxury. It has been a huge help as I was very overweight and unfit previously but am doing better now. He is very good so I feel pretty awkward saying I no longer want to continue the sessions. My friend and I both do training with him so it would be losing two sources of support unless I go to the gym with my friend on other days.

It's a luxury you can't afford, and encapsulates why you're in debt - you're simply spending more than you earn.

Getting out of debt is like losing weight - there are no short cuts or easy fixes, just hard work. You eat less, and exercise more. Getting out of debt is the same: you spend less, and earn more.