Diary of a reformed shopaholic (I hope)

Sarahwithlove

Sorry to hear you had such a set back but at least it wasn't on something wasteful it sounds like it was very much needed. Are the cards all 0% out of interest? If so what's your plan to tackle them? 

alt80

Sorry to hear about family member hope all gets sorted there. Don’t feel too bad about the debt - I’ve got a potential spanner in the works too (development project which requires additional finance - if I don’t get, going to have cash flow issues in business to finish it so my debt will go up). Thing is we’ve both put ourselves in better positions through paying off some of the debt - you’re in less debt than you could have been in had you not been paying down. 

shoppingobsessed2020

Thanks, the only debt on interest free is his Barclays for another year.  Part of the Lloyd’s balance is interest free and that’s it.

plan is clear overdraft and his Lloyd’s card this month.  Then depending on balance transfers available I’m going to start balance transferring his mbna to his Lloyd’s and just throwing everything at the mbna card for the next few months after I clear my tsb card. 

Savings pots will build up and every 6 months I’ll look at them and then throw excess funds to a card.

id like my next and tsb gone within the next 6 months and his is just a work in progress.

ideally I’d like to take a loan to refinance some of the debt but until I get my income to debt ratio down I don’t think that will happen but I’ll look in 3/4 months and see what offers of any I have.

Drawingaline

Most people say don't consolidate, however I think you have proved that you can pay the debt down when the circumstances are right, and if your partner is beginning to see the benefit of having less debt then it may work. Also you can normally overpay loans, so you can carry on overpaying once all the cc debt is gone.

Sarahwithlove

I'd try and get some of your other cards down to 50% usage as this usually helps with getting better deals as well rather than focusing on the 0% ones. Also will help reduce amount of interest you're paying. 

alt80

Not being 0% is a pain so understand the loan tbh. However do you genuinely think you won’t just build card debt up again? 

If the spend binges happen when your husband is back and he isn’t bothered about the debt - do you think he won’t just build debt up? Think the two of you need to have a plan you can realistically work on together. Yeah I know change in attitude from me suppose now I’ve told wife everything and she’s being more of a help than a hinderance has made me see I shouldn’t have lied to her in the first place.

shoppingobsessed2020

Totally get where your coming from
@alt80 re the debt building up again.  This is why I’ve been closing my cards as they’ve been paid off.  

I’d like to move it to a more even split so that we can get more interest free offers. His Lloyd’s keeps offering and I’d assume his Halifax does but that card is empty to be closed when we get round to it.

will see how we go over the next few months and then reassess but and see where we are and what if any offers are available but this debt needs gone as we both want to move somewhere bigger as our house is too small for us.  

Thankfully Christmas and the next 2 birthdays are paid for already so there isn’t much more to spend on bar food over the next few months all being well.

shoppingobsessed2020

Oh he has now gone to cash so knows exactly how much fun money he had to spend if he wants to pop to the shops so it’s really myself now to watch for on the shopping binges but Ibe been pretty good on that front, closing the cards down has really helped

shoppingobsessed2020

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 1

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 1300

Partners monthly income after tax....... 4000

Benefits................................ 82

Other income............................ 0[b]

Total monthly income.................... 5382[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 285.6

Secured/HP loan repayments.............. 639.1999999999999

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 137

Electricity............................. 60

Gas..................................... 60

Oil..................................... 0

Water rates............................. 36

Telephone (land line)................... 0

Mobile phone............................ 65

TV Licence.............................. 12

Satellite/Cable TV...................... 85

Internet Services....................... 0

Groceries etc. ......................... 500

Clothing................................ 20

Petrol/diesel........................... 100

Road tax................................ 20

Car Insurance........................... 50

Car maintenance (including MOT)......... 80

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 135

Other child related expenses............ 150

Medical (prescriptions, dentist etc).... 25

Pet insurance/vet bills................. 0

Buildings insurance..................... 10

Contents insurance...................... 10

Life assurance ......................... 45

Other insurance......................... 0

Presents (birthday, christmas etc)...... 50

Haircuts................................ 25

Entertainment........................... 50

Holiday................................. 0

Emergency fund.......................... 50

House alarm............................. 12

Union................................... 50[b]

Total monthly expenses.................. 2761.8[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 117000

Shares and bonds........................ 0

Car(s).................................. 20000

Other assets............................ 35000[b]

Total Assets............................ 172000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 66452....(285.6)....2.25

Secured Debt.................. 10486....(135)......2.25

Hire Purchase (HP) debt ...... 17663....(294.2)....NaN<

His car........................4191.....(210)......NaN[b]

Total secured & HP debts...... 98792.....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Lloyds loan....................14278.1...449.8.....3.05

Tesco loan.....................12661.....362.......NaN

Next...........................1565.52...79........NaN

My tsb.........................940.48....26........NaN

My Barclays ...................6343.06...160.......NaN

Mbna...........................12991.....400.......NaN

Barclays his...................4683......103.......0

Lloyds card....................3825.72...0.........NaN[b]

Total unsecured debts..........57287.88..1579.8....-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 5,382

Expenses (including HP & secured debts). 2,761.8

Available for debt repayments........... 2,620.2

Monthly UNsecured debt repayments....... 1,579.8[b]

Amount left after debt repayments....... 1,040.4[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 172,000

Total HP & Secured debt................. -98,792

Total Unsecured debt.................... -57,287.88[b]

Net Assets.............................. 15,920.12[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

up to date soa, that 1k surplus isn’t really there, 200 to his lordship for fun money, 200 to his work account to pay for courses and then 100 a month to me for my nails and anything else I want.  So £500 spare, food budget had increased but that’s due to now supporting another house which we are happy with.

i have also included my jewellery as it’s been valued but it’s last resort selling, it makes for a healthier reading of the soa though.  Have had to increase my insurance to take into account the valuation but it wasn’t overly bad.  

lloyds card will be paid at end of month using his lordships bonus, balance of the bonus will be slushed into his work account fund.  Joint account is now -900 but I get paid tomorrow s higher amount due to various things but ti won’t be every month I get the extra so that will be clear, leaving £700 to pay rest of bills due £240 remaining,  my Barclays £80 remaining and then next so literally 0 remaining.  His lordship has his fun moneystill as he hasn’t touched that so the cash is still in the drawer and there is £240left in his lordships account so we are pretty set to balance in time for November pay day.

its going to be a bit tighter than we had planned a couple of months ago as we also have car insurance due at the end of December and last year I think that was around £600 for the 2 cars so I’ll have to find the rest of that money come december.  I can juggle some of it using the surplus and then from the new year I’ll be firing that £500 to mbna so we can reduce it by £900 a month.

i am learning towards firing the surplus every other month to one of my cards to improve my debt to income ratio.  haven’t fully decided but will see what happens once interviews for his lordship and courses are finished and paid for.  Just £600 acomodationto pay and anywhere between 300 to 1k to pay for one more course, he’s paid for his masters (that’s sat on the Lloyds credit card and will be clear end of the month)

alt80

I've managed to clear a couple of cards but not cancelled accounts. Made sure the cards aren't easily accessible though. Understand why you'd close them though.

Really will need to make a dent in the debts to move tbh.

Jewellery worth 30% of your home value appreciate I have the right to judge no one but wow not even sure what to say to that. Surprised you live in such a low value home tbh - I don't meant that in rude way, just interesting seeing people's differing priorities on here. Always been property and cars for me. Yeah we have other nice stuff, our jewellery / watches probably add up to a similar amount but that's 5% the value of my home. You spend a long time in your res home. All my opinion/ priorities of course perhaps just something to think about when debts cleared putting that jewellery towards a better res home.