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Pay off which first? Help please
Comments
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Monthly Income Details
Monthly income after tax................ £1695
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... £1695
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... £200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ £20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... £175
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ £330
Medical (prescriptions, dentist etc).... £21
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
HELP TO BY ISA.......................... £200
SIPP.................................... £25
STOCKS AND SHARES ISA................... £25
Total monthly expenses.................. £996
Assets
Cash.................................... £5200
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ £5200
No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
PESRONAL LOAN...........£3228......£154.......2.8%
CREDIT CARD....................£4769......£108.......0%
Total unsecured debts..........£7997......262.......-
Monthly Budget Summary
Total monthly income.................... £1,695
Expenses (including HP & secured debts). £996
Available for debt repayments........... £699
Monthly UNsecured debt repayments....... £262
Amount left after debt repayments....... £437
Personal Balance Sheet Summary
Total assets (things you own)........... £5,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -£7,997
Net Assets.............................. -£2,797
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Please could you guys look over list I posted above.
Many thanks0 -
Is anyone around to look in to this for me?0
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No clothing, no entertainment, no haircuts?
I appreciate that your living arrangements may be still in a period of adjustment but it's worth trying to think about what expenses you may occur and plan for those by putting some money aside for them.
Another example is Birthdays which you have nothing for. Let's say you were to allocate £200 towards all of these things. This leaves you £237.
The good news is that if you were to stop your HTB ISA, SIPP and ISA, you have £300 there which gives you £537 for overpayment on your debts. If you apply this to your credit card...
£4769 divided by £645 (£537 + £108) = 7.39 months (8 months)
Congratulations, you are credit card free by September/October.
You then have £799 (£645 +£154) to pay towards your loan - You will be debt free by this time next year...
You will then have £800 to dump back into your HTB ISA/SIPP/ISA as you fit in time for the tax year end...
You have this!0 -
Bringvaluetome wrote: »Please could you guys look over list I posted above.
Many thanks
For other posters to be able to give accurate advice on your SOA, it needs to be a true reflection of your spending. Do you really have over £900 left at the end of the month?
I understand that you are now living with your parents so your expenses will have changed, but you seem to have missed some key categories:
- groceries - this will often include personal items such as toiletries, some people include work lunches etc in here
- car maintenance (and tax and MOT) - even if buying a new car you still need to budget something in here
- entertainment - you never go out?
- gifts
- haircuts
I would recommend digging out your bank statements and seeing how much you have spent on these things over the last few months as you may get more accurate figures, and therefore, better advicehttps://forums.moneysavingexpert.com/discussion/6086606/debt-free-by-23/p1True LBM, December 2019 = £32934. Current Debt = £12762. 1% Challenge = 61.1%. #51 3-6 Month EF Challenge = £1200/£6000
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Reply to Middleclass -
No clothing, no entertainment, no haircuts?
-I rarely buy new clothes and have a haircut every 2.5/3 months at a cost of £12
I appreciate that your living arrangements may be still in a period of adjustment but it's worth trying to think about what expenses you may occur and plan for those by putting some money aside for them.
Another example is Birthdays which you have nothing for. Let's say you were to allocate £200 towards all of these things. This leaves you £237.
-Next child’s birthday is next month and will prob spend around £100 then next child is in December. Already had one birthday last month. I have 3 kids!
The good news is that if you were to stop your HTB ISA, SIPP and ISA, you have £300 there which gives you £537 for overpayment on your debts. If you apply this to your credit card...
- It would £250 – (HTB £200 / SIPP £25 / ISA £25. The problem is the SIPP & ISA both require a minimum monthly Direct Debit of £25, if I stop those then I will have to close the accounts. And for the HTB ISA, I guess I could stop payments for a while but is that wise?
£4769 divided by £645 (£537 + £108) = 7.39 months (8 months)
Congratulations, you are credit card free by September/October.
You then have £799 (£645 +£154) to pay towards your loan - You will be debt free by this time next year...
You will then have £800 to dump back into your HTB ISA/SIPP/ISA as you fit in time for the tax year end...
You have this!0 -
The thing with an SOA is you really should be thinking about your expenses across a 12 month period. If you have 3 kids and you spend £100 each at each birthday, it can be assumed you do the same at Christmas, therefore £600 in a year. You need to plan ahead for these and save separately, and your SOA would reflect this. That's £50 a month on kids presents.
I think it would be wise to stop paying in to your HtB ISA. I've started listening to Dave Ramsey who inspires me on debt. His philosophy suggests that you need to have 100% focus on one thing to be successful at it. He suggests you focus entirely on debt pay off (once you have saved up a small starter emergency fund). Once you've paid off your debt, which will be quicker as you will be completely focused, you can go back to saving in the ISA. Take a look at the Dave Ramsey baby stepshttps://forums.moneysavingexpert.com/discussion/6086606/debt-free-by-23/p1True LBM, December 2019 = £32934. Current Debt = £12762. 1% Challenge = 61.1%. #51 3-6 Month EF Challenge = £1200/£6000
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Reply to MidHollie -
For other posters to be able to give accurate advice on your SOA, it needs to be a true reflection of your spending. Do you really have over £900 left at the end of the month?
I understand that you are now living with your parents so your expenses will have changed, but you seem to have missed some key categories:
- groceries - this will often include personal items such as toiletries, some people include work lunches etc in here
£200 Rent includes everything. I guess I spend £50 / £60 a food a month – work / out with kids
- car maintenance (and tax and MOT) - even if buying a new car you still need to budget something in here
Tax paid in full in August 2020 and Mot isn’t due until December 2020. Car isn’t high maintenance.
- Entertainment - you never go out? Not much at the moment as trying to save, plus work evenings and every other weekend.
- gifts – Not really
- haircuts – every 2.5/3 months at a cost of £12 per time.
I would recommend digging out your bank statements and seeing how much you have spent on these things over the last few months as you may get more accurate figures, and therefore, better advice.
I guess I don’t allocate for misc things like hair etc, I just take it out of surplus cash each month.0 -
This is what my current spread sheet looks like.
FEBRUARY
CSA £330
RENT / FOOD £200
HELP TO BUY ISA £200
FUEL £175
LOAN £154
CREDIT CARD £108
SIPP £25
ISA £25
OPTICIANS £21
PHONE £20
TOTAL £1,258
SALARY - CURRENT £1,695
TOTAL £1,695
TOTAL £4370 -
Is it wise to stop saving whilst in debt?
Would you borrow money to invest?0
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