Mummy to be of three...want to be debt free!

edited 10 February 2020 at 11:17AM in Debt free diaries
21 replies 1.2K views
Achar90Achar90 Forumite
13 Posts
Newbie
edited 10 February 2020 at 11:17AM in Debt free diaries
Ok hey goes....

I've decided that next year I really need to get my finances in check on credit cards alone my husband and I have £4,800 on them, must of this is just stuff which makes me so ashamed - since October alone my husband and I have put £1000 on credit cards :eek: part of this is Christmas (totally overspent this year!) and In September my husband started an apprenticeship in electrical engineering so his wage dropped by £300pm however we know that it is short term pain for long term game as once he has qualified hopefully his wage will be more than it has been (Previous warehouse working on just above min wage)

It will be a struggle as I am due baby number three in March! I'm only taking 6months maternity leave and luckily my work pay 90% for 9 weeks and 50% for 9 weeks before I go onto SMP.

My main aim is to pay the £747 off my virgin by June and £623 from barclaycard by December 2020 as this is when the 0% deal ends. -Update Jan 2020 - paid off the £747 from Jan by doing a no spend month

So here is my SOA, any helps/tips will be much appreciated!!
Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2
Number of children in household......... 2 (4yr old, 2yr old, 1 on the way)
Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 1339
Partners monthly income after tax....... 1270.19
Benefits................................ 137.6 (Child benefit)
Other income............................ 0
Total monthly income.................... 2746.79


Monthly Expense Details

Mortgage................................ 507
Secured/HP loan repayments.............. 114 (Car)
Council tax............................. 96
Electricity............................. 35
Gas..................................... 35
Water rates............................. 34.9
Mobile phone............................ 60 (Two phones- in contract)
TV Licence.............................. 13.2
Satellite/Cable TV...................... 8.99 (Netflix)
Internet Services....................... 27
Groceries etc. ......................... 400 (Incl nappies, cleaning products)
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 32.14
Car maintenance (including MOT)......... 0
Childcare/nursery....................... 195
Other child related expenses............ 66 (Piano lessons)
Medical (prescriptions, dentist etc).... 19.2 (Sovereign health care, hubby and kids are covered)
Buildings insurance..................... 11.19
Life assurance ......................... 40.2 (& Critical illness cover)
Other insurance......................... 6.26 (Mortgage protection if hubby gets made unemployed)
Presents (birthday, christmas etc)...... 22
Postcode lottery........................ 10

Total monthly expenses.................. 1803.08


Assets

Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 187000



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 122388...(507)......3.99
Hire Purchase (HP) debt ...... 4449.....(114)......0
Total secured & HP debts...... 126837....-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
Zopa loan .....................1647......86.75.....3
Halifax loan...................2946......159.4.....3
Virgin credit card.............1535......25........0 (No interest till Jan 21)
Barclaycard....................2183......36........0 (No interest until July 21)
Barclaycard....................860.......19........0 (No interest until Dec 20)
Total unsecured debts..........9171......326.15....-



Monthly Budget Summary

Total monthly income.................... 2,746.79
Expenses (including HP & secured debts). 1,803.08
Available for debt repayments........... 943.71
Monthly UNsecured debt repayments....... 326.15
Amount left after debt repayments....... 617.56

Personal Balance Sheet Summary
Total assets (things you own)........... 187,000
Total HP & Secured debt................. -126,837
Total Unsecured debt.................... -9,819
Net Assets.............................. 50,344
«13

Replies

  • Unicorn_cottageUnicorn_cottage Forumite
    879 Posts
    Fifth Anniversary 500 Posts Name Dropper Photogenic
    Forumite
    Hello and welcome!

    Did you use the soa calculator? Any chance you can repost using the format for mse option?

    Congrats on the decision as a family to study electrical engineering! Very exciting :)
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • CJRyderCJRyder Forumite
    238 Posts
    Fifth Anniversary 100 Posts Mortgage-free Glee! Photogenic
    Forumite
    Quick and easy win - Ditch the TV Licence. So much on Netflix, cheaper and better choice at a time of your choosing. Also consider switching your Amazon Music to a Prime account if it's not already. £80 for the year. However you could ditch this too and use Youtube.

    With regards to mobile phones, are you able to switch onto any sim only deals? I'm with EE on under £10/month, unlimited calls and texts. With the prevalence of free wifi hotspots there is little need to have more than 500MB of data. I think I get 200-300MB and hardly ever need to use it.
    Mortgage free by 33 - (21/07/22 - 32 years and a bit...)

    Most DIY problems can be solved by a combination of spanner, pliers, screwdriver, Allan key and a blade. (Hold it, twist it, cut it!) Very occasionally industrial language, a hammer and an adhesive may need to be added to the mix. (Curse it, hit it, patch it!)
  • JoxJox Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Photogenic
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    Try to reduce grocery spends where possible, have a budget in mind and stick to it, shop at Aldi if you can.

    Childcare costs will go down when you're on maternity so that can go towards debts?

    I would cut out netflix and amazon music and postcode lottery personally until debts were paid.
  • Achar90Achar90 Forumite
    13 Posts
    Newbie
    Hello and welcome!

    Did you use the soa calculator? Any chance you can repost using the format for mse option?

    Congrats on the decision as a family to study electrical engineering! Very exciting :)

    I did my SOA via Stoozing.com however when I clicked to calculate the totals it put a comma inbetween the numbers so could not convert to MSE format:(Is there an other website I can use?
  • Achar90Achar90 Forumite
    13 Posts
    Newbie
    CJRyder wrote: »
    Quick and easy win - Ditch the TV Licence. So much on Netflix, cheaper and better choice at a time of your choosing. Also consider switching your Amazon Music to a Prime account if it's not already. £80 for the year. However you could ditch this too and use Youtube.

    With regards to mobile phones, are you able to switch onto any sim only deals? I'm with EE on under £10/month, unlimited calls and texts. With the prevalence of free wifi hotspots there is little need to have more than 500MB of data. I think I get 200-300MB and hardly ever need to use it.

    Yes I really need to look into our TV usage - at the moment I feel like I am paying £13 for cbeebies but it is a good point you make about youtube as I am sure most of the shows are on that.

    Unfortunately we are both in contract until the end of next year.
  • Achar90Achar90 Forumite
    13 Posts
    Newbie
    Jox wrote: »
    Try to reduce grocery spends where possible, have a budget in mind and stick to it, shop at Aldi if you can.

    Childcare costs will go down when you're on maternity so that can go towards debts?

    I would cut out netflix and amazon music and postcode lottery personally until debts were paid.


    Yes groceries is something we need to look into - I shop online so that I am not tempted to impulse buy and do meal plan. My kids are fruit monsters and most go through about £15 worth of fruit a week and my hubby can't have milk so have to buy expensive milk alternatives.

    Childcare costs will stay the same - If I take my little girl out of her childminders her space could be taken up which would leave me !!!!!!ed for when I return to work in Oct.
  • Unicorn_cottageUnicorn_cottage Forumite
    879 Posts
    Fifth Anniversary 500 Posts Name Dropper Photogenic
    Forumite
    What are you prepared to do to get yourself in a better position? Am saying this as a challenge really :)

    For example if you cancelled the following for a period of time until you are in a better position you would save £137.19 a month. Would you be prepared to buy kids clothes from charity shops etc to save money - food for thought....

    TV Licence.............................. 13.2
    Clothing................................ 40 (This is what I save for children's clothes)
    Other child related expenses............ 66 (Piano lessons)
    Presents (birthday, christmas etc)...... 22
    Amazon music ........................... 7.99
    Postcode lottery........................ 10

    Do you have anything you can sell? It really helped me when I was on my way to paying of £25k ish of debt.
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • Achar90Achar90 Forumite
    13 Posts
    Newbie
    So hubby and I have decided to do a no spend Janauary:T We have never attempted anything like this before so abit nervous. We dont spend alot during the week but tend to go out for a couple of drinks on a Friday and often go swimming, soft play, cafes etc with the kids on a weekend.

    We will only allow money to be spent on petrol, groceries and I will still take my DD to playgroup on Fridays (£1.50)

    I estimate I we could save £365 which would go straight to my Virgin card - great bonus today I received an email from postcode lottery saying we had won £20 and from sky saying they owe us £11.40 from when we cancelled. That's £31.40 to start off our Jan no spend pot!:D
  • enthusiasticsaverenthusiasticsaver Forumite, Ambassador
    13.9K Posts
    Ninth Anniversary 10,000 Posts Name Dropper I've been Money Tipped!
    Ambassador
    I would ditch the postcode lottery and amazon music and work on getting the groceries down. I would also either get rid of Netflix or ditch the tv licence (not keep both). You will need a good emergency fund before going on maternity leave but you have a good surplus. Your childcare costs will go up when you return to work but it depends when your youngest turns 3 and gets her free hours. Is the 4 year old in school? Are the piano lessons critical for such a young child or are those for you?

    I would focus on getting rid of the £623 on Virgin before June when interest is charged and then focus on the £860 on Barclaycard over the year. £72 per month will get rid of it by December which is £53 more than you currently pay. Getting rid of the piano lessons until you are in a better financial position will more than cover that.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected] All views are my own and not the official line of MoneySavingExpert.
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