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YNAB...ing my way to freedom!

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  • enthusiasticsaver
    enthusiasticsaver Posts: 16,053 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Hi enthusiasticsaver

    Thanks for posting :)

    Regarding the SOA, I just went through my last statement and I paid a total of £899 towards my debt. So I was getting deeper and deeper into my overdraft every month. Does that change your mind when it comes to the DMP? The entertainment is for what I spend on DD and also myself for the whole week :) the last couple of weeks though I have had money left over because I am using cash and being more mindful on what I spend my cash on.

    Frank :)

    Whether a DMP is right for someone depends on the following criteria.

    Can you make minimum payments every month? If you can it does not mean that a DMP is not advisable but it may not necessarily help your situation. If the £899 is minimum payments but that is higher than your surplus (ignoring the secured loan repayment which presumably is for your car?) and you are going overdrawn to live then yes a DMP may be for you.

    How is the debt broken down? Is it loans, overdrafts and credit cards? If a large proportion of the debt is loan repayments (due to previous debt consolidations perhaps then can they be restructured over a longer period?)

    Are you paying interest on the debt and is it reducing month on month? If the interest is high and you cannot get deals any more then I agree a DMP may be best.

    I think though to give you some breathing space you should redo that soa before giving it to stepchange to allow emergency savings even if you manage to save a decent fund between now and your DMP starting you need an ongoing amount and an amount higher than £10 a month for car maintenance (£50 would make more sense).
    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 forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • Whether a DMP is right for someone depends on the following criteria.

    Can you make minimum payments every month? If you can it does not mean that a DMP is not advisable but it may not necessarily help your situation. If the £899 is minimum payments but that is higher than your surplus (ignoring the secured loan repayment which presumably is for your car?) and you are going overdrawn to live then yes a DMP may be for you.

    How is the debt broken down? Is it loans, overdrafts and credit cards? If a large proportion of the debt is loan repayments (due to previous debt consolidations perhaps then can they be restructured over a longer period?)

    Are you paying interest on the debt and is it reducing month on month? If the interest is high and you cannot get deals any more then I agree a DMP may be best.

    I think though to give you some breathing space you should redo that soa before giving it to stepchange to allow emergency savings even if you manage to save a decent fund between now and your DMP starting you need an ongoing amount and an amount higher than £10 a month for car maintenance (£50 would make more sense).

    I have just done the most accurate SOA based on my December statement. Will post below :)

    Thank you so much for all your help I really am taking it all on board.

    Frank :)
  • Statement of Affairs and Personal Balance Sheet

    Monthly Income Details

    Monthly income after tax................ 2024
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2024


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 268
    Rent.................................... 275
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 18.54
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 20
    Petrol/diesel........................... 150
    Road tax................................ 13.56
    Car Insurance........................... 36.17
    Car maintenance (including MOT)......... 50
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 100
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 40
    Haircuts................................ 20
    Entertainment........................... 120
    Holiday................................. 0
    Emergency fund.......................... 50
    Total monthly expenses.................. 1371.27



    Assets

    Cash.................................... 1621
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 4500
    Other assets............................ 0
    Total Assets............................ 6121



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 4175.5...(268)......0
    Total secured & HP debts...... 4175.5....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Avant..........................9114......335.......0
    Vanquis........................2500......97........0
    Aqua...........................3437......150.......0
    Shop Direct....................358.......37........0
    Secure Trust...................1493......83........0
    Secure Trust...................1198......50........0
    Halifax overdraft .............750.......0.........0
    Halifax CC.....................1454......40........0
    Barclaycard ...................342.......10.45.....0
    118 118 Money..................214.......10........0
    Capital One....................683.......37........0
    Capital One....................1069......38.5......0
    Total unsecured debts..........22612.....887.95....-



    Monthly Budget Summary

    Total monthly income.................... 2,024
    Expenses (including HP & secured debts). 1,371.27
    Available for debt repayments........... 652.73
    Monthly UNsecured debt repayments....... 887.95
    Amount short for making debt repayments. -235.22


    Personal Balance Sheet Summary
    Total assets (things you own)........... 6,121
    Total HP & Secured debt................. -4,175.5
    Total Unsecured debt.................... -22,612
    Net Assets.............................. -20,666.5


    Created using the SOA calculator at https://www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,053 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    That soa looks a bit more realistic and of course there is nothing to stop you saving and offering full and finals or paying the DMP off early. You have put 0% in the interest rate columns of all the debts. Have they all agreed to stop charging interest or do you just not have that information to hand?
    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 forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    The 365 Day 1p Challenge 2025 #1 £667.95/£162.90
    Save £12k in 2025 #1 £12000/£7000
  • That soa looks a bit more realistic and of course there is nothing to stop you saving and offering full and finals or paying the DMP off early. You have put 0% in the interest rate columns of all the debts. Have they all agreed to stop charging interest or do you just not have that information to hand?

    Thank you, that’s good to hear.

    Everyone has agreed to stop interest until the end of this month. But I don’t have the interest %’s to hand. I will be posting letters on Monday to all of my creditors to tell them I am still in the process of seeking advice from Stepchange on setting up a DMP and will be in touch in due course. Obviously during this time I will be saving as much as I can into my EF :)
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,053 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Thank you, that’s good to hear.

    Everyone has agreed to stop interest until the end of this month. But I don’t have the interest %’s to hand. I will be posting letters on Monday to all of my creditors to tell them I am still in the process of seeking advice from Stepchange on setting up a DMP and will be in touch in due course. Obviously during this time I will be saving as much as I can into my EF :)

    That sounds good. Although £22.6k sounds a lot of debt it is by no means the highest and if you can manage £650 a month you are looking at clearing it within 3 years. How is the car financed and when is that due to finish?
    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 forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    The 365 Day 1p Challenge 2025 #1 £667.95/£162.90
    Save £12k in 2025 #1 £12000/£7000
  • That sounds good. Although £22.6k sounds a lot of debt it is by no means the highest and if you can manage £650 a month you are looking at clearing it within 3 years. How is the car financed and when is that due to finish?

    I agree, I was petrified when I first added it up but then I realised that it could be a lot worse.

    Yes 3 years is the target. The car is on HP and will be mine in March next hear when the last payment goes out. No lump sum to pay. So I will plan to add that £268pm towards the DMP which will bring it down even quicker, but I will obviously have to wait and see what situation I am in at that time.
  • pidge04
    pidge04 Posts: 792 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    You sounds so chipper and determined! Will follow with interest. Good luck!
    Store card £140 £117 - Store card £150 - Overdraft £200 - PayPal £364 - Loan 1 £5052 - Loan 2 £1733 - Credit card £2890 - Car hire purchase £3200 - Savings £0.
  • pidge04 wrote: »
    You sounds so chipper and determined! Will follow with interest. Good luck!

    Thank you, I wasn’t feeling like that before I had my “lightbulb moment” but thankfully I found this fantastic forum! At the end of the day....it’s only money!

    Yes I’ve been immature & irresponsible in the past, but I’m excited to having a goal to work towards. I can do this! I will do this! Then I’ll try and pass on the amazing support I’ve received, onto others who were like me & felt overwhelmed by debt!

    I’m a firm believer in “Your health is your wealth”. So I refuse to let this little blip affect my health & wellbeing :)

    Got a bit deep there sorry :rotfl: watching Heli Meds program and really does put things into perspective!

    Hope you can share some tips & advice with me along this journey :beer:
  • Evening all :wave:

    So today has been really relaxing. Had a nice lay in this morning then had a bit of a sort out. It was a beautifully frosty day here so we decided to have a tip run to get rid of a load of junk! Seems everyone else had the same idea :doh: it was so busy there! but hey ho it is done now!

    Today was a NSD :T

    Just made a big batch of soup for work for the week, leek & potato this week. I love taking soup because I am a big lad and like big portion sizes so can load up my bowl knowing it's a healthy version rather than shop bought! Boiled some eggs for my snacks along with fruit, and put a beef stew in the slow cooker for tomorrow evenings meal. My three fav kitchen gadgets! Soup maker, egg maker (steam boils 7 eggs at a time) and the slow cooker. Saves me spending £3+ a day on a meal deal and also I know exactly what I am eating is full of goodies! Can feel the Xmas weight coming off too ;)

    So plans for this week....

    I am still in my grace period with my creditors so it should be quiet on that front! Will draft up the letters tomorrow and print them off ready to send off towards the end of the month when my grace period ends.

    So another week of same old really. Will try and get on here as much as I can.

    Frank :beer: (Don't know why I keep using that emoji, I don't even drink!)
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