Really needing help with debt spiral

jmb1

Ok I'm having trouble with all this... I'm heavily bogged down, spending ages trying to calculate a budget, and what I need to account for income wise, what debts to service first etc, what and how to save for tax, payment plans, and feel like I'm sinking with panic and can't see the wood for the trees.

Is it ever possible to use an accountant to help with personal finance and budgeting? I really feel I could use wholistic help, esp in my debt situation. My own accountant helps to certain level, ie able to tell me what tax liabilities I have, but show no inclination to help further, which I assume as it's beyond their paid remit. Or would I need to pay an ifa?

I know this seems a bit crazy when I'm trying to cut my spending but I need dedicated help from somewhere. I'm spending (wasting) so much time trying, I feel, to do something I can't figure out. The general advice on here is great and appreciated but I think I need something more. Someone who'll do as my accountant does for my business, but also covers my personal finances. Does that exist?? Even if just to help get me out of my current hole. 

EssexHebridean

I think you're overthinking the whole thing now. I'm sure your accountant *could* help you with your personal finances, but I don't think you need to pay someone else to do this. Wind it back to basics - update the SOA to reflect the things you have already learned - the double-accounting etc. Just stick with the single budget for now if that helps you to manage things and stay calm around it. Then direct your attention for the first little while in starting to cut outgoings - you already know where you need to take action on that so choose one area at a time, make a plan, and then you can move on to the next. 

See your GP for assistance with giving up smoking if you feel you need that - some people do and others not, and only you know which camp you fall into. Cut back on the other areas but probably don't try to cut out ALL the lifestyle stuff inside the first month - that might just make the whole thing feel impossible. 

DrEskimo

EssexHebridean said:

I think you're overthinking the whole thing now. I'm sure your accountant *could* help you with your personal finances, but I don't think you need to pay someone else to do this. Wind it back to basics - update the SOA to reflect the things you have already learned - the double-accounting etc. Just stick with the single budget for now if that helps you to manage things and stay calm around it. Then direct your attention for the first little while in starting to cut outgoings - you already know where you need to take action on that so choose one area at a time, make a plan, and then you can move on to the next. 

See your GP for assistance with giving up smoking if you feel you need that - some people do and others not, and only you know which camp you fall into. Cut back on the other areas but probably don't try to cut out ALL the lifestyle stuff inside the first month - that might just make the whole thing feel impossible. 

I was going to write basically this!

No need to do everything at once. Break it up and go one step at a time. 

First step, redo the SOA (use link below for a MSE friendly version) and just look at your outgoings for the last few months. The forum can help build on it from there and then you can identify areas to cut. This will then form the basis of your new budget going forward. 

https://www.lemonfool.co.uk/financecalculators/soa.php

Others use YNAB. That has some handy tips and advice on what you should include in your budget. 

https://www.youneedabudget.com/

jmb1

Good observation. I am notoriously guilty for over-thinking things! Thanks both. Will do as suggested. 

theoretica

There is quite a difference between what your accountant probably does for your business and what your personal finances need.  Your personal finances need decisions - what to do about the caravan for instance and whether or not to try and cut the spending on coffee. Only your family can make these.  We can say 'give up smoking' but know it's easier said than done!  I imagine your accountant doesn't tell you what stock to buy for your business or how to set your pricing structure.  Often an accountant just documents what you have already done and puts the invoices and receipts into the right categories.

SusieT

It may be easier for you to do a business budget, using a bit below your average monthly (non Christmas) numbers as sales, less costs to give your profit. Then profit minus tax catchup payment, and minus an allowance for tax on this years profit (put that away in a savings account or pay it to HMRC straight away so you do not use it) will give the monthly total to transfer to your personal income in your personal budget. 

If you cut back fairly hard on the takeaways, drinking out, smoking, groceries etc as others have suggested you should be able to hit the debt hard and suprise yourself when you see it coming down. Its worth paying a bit above minimum on all of them, and then targeting them in order of overdraft if you have one (can be recalled immediately, and going to be very expensive soon), cards with highest interest, loan with highest interest to save the most possible interest and clear the debt faster. 
Treating your budget as having a lower income will get your spending habits set at that rate and you will have a nice bonus if its more that you can put aside for an emergency fund as I would guess you do not have one yet?