It's about time I sort it out...

MissWorry

Hey all

I've been lurking around on this site for a longgg time. I've just never posted until now!

I'm in desperate need of sorting my finances out as our first baby is due beginning of Feb!! Of course we are both over the moon but after the initial excitement the realisation of maternity pay / amount of debts have dawned on me! :eek:

It's time to sort myself out and get on the straight and narrow. I want to clear as much debt as I can, build up an emergency fund & be more frugal!!

So a bit of background info before I post my SOA later

• I work full time and I earn a decent enough salary (for now)..
• My partner had his own company but it recently went bump so he is now doing regular labouring work (which is not the industry he was previously in) whist looking for a steady full time job in sales/recruitment
• I have debts - mainly incurred by buying stupid things when I was younger but also more recently buying a dodgy car and having to spend out £££££ to get it fixed - all funded by CC's of course
• At the moment my income covers all household bills and my debts which I pay at the beginning of the month, my partner gets paid weekly so he transfers me money each week to cover his side of the bills (it get's very confusing!)
• Now my car is fixed (fingers crossed!) I am planning on selling it privately and using the money to clear debts! We have a cheap run around car that we can share for the time being, and the type of jobs my partner is applying for will include a company car which will help immensely!
• ..... and last but not least.... my debts total a whopping £20k roughly! :eek: I will go through it all later and do a complete SOA, I will need to look into current APR rates etc as I honestly have no idea

In the meantime thanks for reading! I am ready for my MSE journey and to eventually become debt free! :T

MissWorry

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.................... 2

Monthly Income Details
Monthly income after tax................ 1760
Partners monthly income after tax....... 600 - What my partner gives me towards bills, obviously this will go up once he gets a full time job
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2360

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 795
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 70 - Inc Arrears
Gas..................................... 70 - Inc Arrears
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50 - I'm in contract for another year!
TV Licence.............................. 13
Satellite/Cable TV...................... 50 - Could downgrade this maybe? I'm not sure if we're in contract still
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50 - This needs to come off really! I've bought myself some maternity clothes recently so this is why
Petrol/diesel........................... 130
Road tax................................ 29 - For 2 cars - Once 1 has been sold will reduce to £17.00
Car Insurance........................... 110 - For 2 cars - Once 1 has been sold will reduce to £45.00
Car maintenance (including MOT)......... 0 - I have put 0 as not saving anything! Hence why I have spend ££££'s on CC's to fix
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0 - Really need to get this ASAP
Buildings insurance..................... 0
Contents insurance...................... 0 - Really need to get this ASAP
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - Not saving a penny... looks like no one will be getting anything for xmas or birthdays...
Haircuts................................ 0 - I get a haircut and colour once/twice a year and I get it bought for me for a birthday/ xmas present
Entertainment........................... 200 - It is less than this now but I put worse case
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1911


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 7000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Loan ...................14703.....295.......13.9
Lloyds CC......................2998.67...40........0
Barclaycard ...................790.......18........0
Bristow & Sutor ...............300.......60........0
Ikano .........................395.......55........0
MBNA ..........................623.53....25........18.94
Very ..........................580.......50........0
Next...........................299.38....15........23.9
Total unsecured debts..........20689.58..558.......-


Monthly Budget Summary
Total monthly income.................... 2,360
Expenses (including HP & secured debts). 1,911
Available for debt repayments........... 449
Monthly UNsecured debt repayments....... 558
Amount short for making debt repayments. -109 - My partner will give me a bit extra if he has it so I am not using my CCs for the shortfall

Personal Balance Sheet Summary
Total assets (things you own)........... 7,000 - Both cars ... need to sell one worth 6k
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,689.58
Net Assets.............................. -13,689.58

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.

MissWorry

We haven't paid for our water bill yet, we have been in the property for a year so need to sort this out also

Willing2Learn

Didn't want to just read without first congratulating you on the soon to be addition to your family. This is an exciting for you.

I was just wondering something. If your electricity and gas are both in arrears, are you also in arrears for your council tax (or is that up-to-date)?

Edit: Also, is this thread meant to be the start of a diary charting your progress on your debt-busting journey, or is it the start of a general DFW forum request for advice, support and guidance?

MissWorry

Willing2Learn wrote: »

Didn't want to just read without first congratulating you on the soon to be addition to your family. This is an exciting for you.

I was just wondering something. If your electricity and gas are both in arrears, are you also in arrears for your council tax (or is that up-to-date)?

Edit: Also, is this thread meant to be the start of a diary charting your progress on your debt-busting journey, or is it the start of a general DFW forum request for advice, support and guidance?

Thank you very much!

Yes we are in arrears with the council tax, it was passed to a debt management company "Bristow and Sutor", I have included it on my SOA. There is £300.00 outstanding that needs to be cleared.

Yes this is the start of my diary, I have just started with an SOA so I can look back and compare in a few months time

Willing2Learn

Ahh...I was wondering what Bristow & Sutor was all about. Even though that amount is low, I would recommend focussing your repayment funds toward this account. It is a 'priority debt' and I believe is the only account that can end up in a magistrates court...

ratrace

Hi congrats on the little one.

Just looking over your soa apart from a few areas where you could cut back overall its no too bad, the rent is the real killer thats taking a chunk

seen as you have 2 cars can you OH get a driving job in the evening and weekends to bring in some extra money while he gets a full time job, the extra cash would allow you to build up a small emergency fund just in case somthing breaks in the house etc... try a local takaway or somewhere like domiones etc... i did this when i had my hours cut at work and it helped and stopped me adding to my debt

also could you sell anything to pay things off quicker, is the 20k debt just yours or does your oh also have his own debt in which case it needsto be added to the soa so you can get a true picture of all the income and outgoing

you are a family now so from my pov you need a household budget, its our money and our debts not his and hers, its very important that you work as a team and tackle this togeather not only will it pay of faster but also it will be good for you long term relationship/family unit

ceb1995

MissWorry wrote: »

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.................... 2

Monthly Income Details
Monthly income after tax................ 1760
Partners monthly income after tax....... 600 - What my partner gives me towards bills, obviously this will go up once he gets a full time job
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2360

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 795
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 70 - Inc Arrears
Gas..................................... 70 - Inc Arrears
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50 - I'm in contract for another year!
TV Licence.............................. 13
Satellite/Cable TV...................... 50 - Could downgrade this maybe? I'm not sure if we're in contract still
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50 - This needs to come off really! I've bought myself some maternity clothes recently so this is why
Petrol/diesel........................... 130
Road tax................................ 29 - For 2 cars - Once 1 has been sold will reduce to £17.00
Car Insurance........................... 110 - For 2 cars - Once 1 has been sold will reduce to £45.00
Car maintenance (including MOT)......... 0 - I have put 0 as not saving anything! Hence why I have spend ££££'s on CC's to fix
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0 - Really need to get this ASAP
Buildings insurance..................... 0
Contents insurance...................... 0 - Really need to get this ASAP
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 - Not saving a penny... looks like no one will be getting anything for xmas or birthdays...
Haircuts................................ 0 - I get a haircut and colour once/twice a year and I get it bought for me for a birthday/ xmas present
Entertainment........................... 200 - It is less than this now but I put worse case
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1911


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 7000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Loan ...................14703.....295.......13.9
Lloyds CC......................2998.67...40........0
Barclaycard ...................790.......18........0
Bristow & Sutor ...............300.......60........0
Ikano .........................395.......55........0
MBNA ..........................623.53....25........18.94
Very ..........................580.......50........0
Next...........................299.38....15........23.9
Total unsecured debts..........20689.58..558.......-


Monthly Budget Summary
Total monthly income.................... 2,360
Expenses (including HP & secured debts). 1,911
Available for debt repayments........... 449
Monthly UNsecured debt repayments....... 558
Amount short for making debt repayments. -109 - My partner will give me a bit extra if he has it so I am not using my CCs for the shortfall

Personal Balance Sheet Summary
Total assets (things you own)........... 7,000 - Both cars ... need to sell one worth 6k
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,689.58
Net Assets.............................. -13,689.58

Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using other browser.

good luck on your journey, you could cancel the satellite tv and swap to now tv/netflix/amazon prime video or perhaps alternate if you can't manage to do with just freeview.

we've the one car but a similar income and we're in about 15.5k of debts ourselves, we're trying to cut our groceries and entertainment budget as they're somewhere you can knock a few pounds off.

when you get your contents insurance, you could get it through compare the market to get the 2 for 1 meals and films if you don't already have it to save on entertainment.
how do you feel about second hand maternity clothes off ebay?

MissWorry

ratrace wrote: »

Hi congrats on the little one.

Just looking over your soa apart from a few areas where you could cut back overall its no too bad, the rent is the real killer thats taking a chunk

seen as you have 2 cars can you OH get a driving job in the evening and weekends to bring in some extra money while he gets a full time job, the extra cash would allow you to build up a small emergency fund just in case somthing breaks in the house etc... try a local takaway or somewhere like domiones etc... i did this when i had my hours cut at work and it helped and stopped me adding to my debt

also could you sell anything to pay things off quicker, is the 20k debt just yours or does your oh also have his own debt in which case it needsto be added to the soa so you can get a true picture of all the income and outgoing

you are a family now so from my pov you need a household budget, its our money and our debts not his and hers, its very important that you work as a team and tackle this togeather not only will it pay of faster but also it will be good for you long term relationship/family unit

Thank you for your commenting

The rent is a huge killer to be honest! Our house is a tiny two bed terrace but it is in a really nice sought after area and I feel comfortable and happy living there so I really don't want to move if I can help it.

We will be selling the second car ASAP, plus we are not using it at the moment as I am too scared it will break again and cost me another small fortune - Already spent around 2k on fixing it.

He has applied for loads of full time jobs so hopefully he will get something soon...

These are all my debts... He has a few little debts but I don't think he is paying any of them off at the moment, once he gets a full time job it will be easier and he will start paying them back.

I will speak to him later to see if we can complete an SOA together. I always help him out and he always helps me out so we do work as a team but our money is just all over the place at the minute, we are not controlling it properly at all

MissWorry

ceb1995 wrote: »

good luck on your journey, you could cancel the satellite tv and swap to now tv/netflix/amazon prime video or perhaps alternate if you can't manage to do with just freeview.

we've the one car but a similar income and we're in about 15.5k of debts ourselves, we're trying to cut our groceries and entertainment budget as they're somewhere you can knock a few pounds off.

when you get your contents insurance, you could get it through compare the market to get the 2 for 1 meals and films if you don't already have it to save on entertainment.
how do you feel about second hand maternity clothes off ebay?

Thank you for commenting

Yes this is definitely something I am going to look into doing, £50 a month on sky is ridiculous and to be honest we use my brother's Netflix account more than we use sky...

That's a great idea, we will do it through compare the market, I will take a look in a bit.

I have quite a good range of maternity clothes now, I'm pretty much kitted out until she is born. I will probably just need to get myself some maternity pj's but I will look on eBay first. I have bought a few bits off eBay for the baby already so I have no issue with second hand items

MissWorry

Day 1 of officially starting debt busting .. I feel so overwhelmed and I keep beating myself up about how I have ended up in this mess

But there is no point dwelling on the past, on wards and upwards, time to make a change!

First things first... I need sit down with my partner later and discuss our money situation. I am going to print off the SOA I did yesterday and show him where we can improve etc.

We have decided will be putting the second car up for sale this evening, I am hoping to get around 6k for it. It's probably worth more but I just want it gone now. We are paying £80 a month for a car we don't even use (tax and insurance). So it NEEDS to go!

I have £20.00 left in my bank account until Friday. I need to get £10.00 worth of fuel later to last me the rest of the working week and a top up shop - bread, sandwich filling and milk