My debt free diet

donkids22

I am writing this while i am work so i have things clear and i know why i need to do this i work in a toxic atmosphere and toxic workplace with a director who is always on my back about the most mundane things.  It is getting me down and the only way i can see out of this is to become debt free and then i will have more options when it comes to work i could even work part time if i wanted.  I will update my next post with my current debts.  

mark55man

A brave first step, as you post more details the experts on here will come and help out.  I'm sorry its toxic at work, but you are right having a better emergency fund will give you more freedom to change

donkids22

This is what I currenttly owe
Car loan £2524
M card £10627.29
B card £139.76
S card £1649.60
V card £2930.00
All apart from b card are 0% at the moment.  Still have 13 payments on the car loan left.  Eldest daughter is 16 and wants to go to university in 2 years I looked at the costs on here and nearly died we are expected to help her to the tune of 3600 per year and the course she wants to do is not local and is for 5 years so that would 18000 total.  That gives me more incentive to get rid of this debt.  Other daughter is 11 just started secondary school so have a few more years before she goes to uni.  

mark55man

sounds like me a few years ago - so there is hope.
people do it different ways - its best to pay off the highest interest first, but if you have a small balance some people like to clear it.  Maybe do that and then ask a month later if they have any offers.
My DD had to work at Uni as she chose an expensive place to live, and I just couldn't cover it.  So maybe start setting that expectation - I think your figures are about right but only if you DD does some work.  For me DD1 didn't work at term time but literally blitzed it in vacations, DD2 enjoyed her vacations but did 20 hours a week during term time - although I think DD1 is better as less interference with work 

you should look at one of these https://www.stoozing.com/soa.php and post it when you are happy - you will get a lot of helpful advice, that may be hard to take, but if you need to cut down my advice is take the medicine hard and fast and then get on with it (not what I di by the way, but much better)

donkids22

[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......... 2 Number of cars owned.................... 1[b] Monthly Income Details[/b] Monthly income after tax................ 1810.34 Partners monthly income after tax....... 0 Benefits................................ 140 Other income............................ 0[b] Total monthly income.................... 1950.34[/b][b] Monthly Expense Details[/b] Mortgage................................ 0 Secured/HP loan repayments.............. 157.7 Rent.................................... 0 Management charge (leasehold property).. 0 Council tax............................. 125 Electricity............................. 31.25 Gas..................................... 31.25 Oil..................................... 0 Water rates............................. 42.6 Telephone (land line)................... 0 Mobile phone............................ 90.59 TV Licence.............................. 13.37 Satellite/Cable TV...................... 101.43 Internet Services....................... 7.5 Groceries etc. ......................... 300 Clothing................................ 0 Petrol/diesel........................... 40 Road tax................................ 0 Car Insurance........................... 24.43 Car maintenance (including MOT)......... 0 Car parking............................. 0 Other travel............................ 0 Childcare/nursery....................... 0 Other child related expenses............ 0 Medical (prescriptions, dentist etc).... 0 Pet insurance/vet bills................. 7.53 Buildings insurance..................... 9.54 Contents insurance...................... 0 Life assurance ......................... 52.15 Other insurance......................... 62.71 Presents (birthday, christmas etc)...... 135 Haircuts................................ 0 Entertainment........................... 24.29 Holiday................................. 0 Emergency fund.......................... 0[b] Total monthly expenses.................. 1256.34[/b] [b] Assets[/b] Cash.................................... 0 House value (Gross)..................... 0 Shares and bonds........................ 0 Car(s).................................. 0 Other assets............................ 0[b] Total Assets............................ 0[/b] [b] Secured & HP Debts[/b] Description....................Debt......Monthly...APR Mortgage...................... 0........(0)........0 Secured Debt.................. 2524.....(157.7)....0[b] Total secured & HP debts...... 2524......-.........- [/b] [b]Unsecured Debts[/b] Description....................Debt......Monthly...APR M..............................10627.2...140.......0 B..............................139.76....5.........0 S..............................1649.6....20........0 V..............................2930......30........0[b] Total unsecured debts..........15346.56..195.......- [/b] [b] Monthly Budget Summary[/b] Total monthly income.................... 1,950.34 Expenses (including HP & secured debts). 1,256.34 Available for debt repayments........... 694 Monthly UNsecured debt repayments....... 195[b] Amount left after debt repayments....... 499[/b] [b]Personal Balance Sheet Summary[/b] Total assets (things you own)........... 0 Total HP & Secured debt................. -2,524 Total Unsecured debt.................... -15,346.56[b] Net Assets.............................. -17,870.56[/b] [i]Created using the SOA calculator at www.stoozing.com. Reproduced on Moneysavingexpert with permission, using other browser.

Not included oh income as we keep our income separate.  He pays mortgage and for his car.  Also clothing and household repairs and upgrades.  My car tax is 30 a year not put this on as not a major payment.

Seeing it like this does make it look simple have 499 left a month but I never have this left it is always gone or there are other expenses that just pop up.  Mainly overspending on grocery shopping and popping in local shops for chocolate or treats a few times a week.  I have decided that the child benefit 140 when it comes in will go straight on debt repayment so that wont be wasted on things I can't remember buying.  

mark55man

I think you have to tick or copy a box on the stoozing site to get it to format straight, no need to do it manually

joedenise

You have used the wrong SOA for MSE - the one you've used is an old version.  Please redo it using this link:
https://www.lemonfool.co.uk/financecalculators/soa.php
and then format for MSE to post here.  It will be much easier to read and we can help you better.

Just from a quick skim through (but as I said hard to read) I think your Groceries may be a little low for 4 people especially with 2 children, one of whom is a teenager who always seem to have hollow legs!  We are only a couple and spend about £250 a month, although compared to some people that it is high.  You actually say yourself that you find yourself going over your budget so you really need to know what you actually spend.  Try keeping a Spending Diary for a month to see just what you actually spend rather than guessing what you think you spend - I suspect you probably spend nearer £400 than the £300 you put in your SOA. 

The other things that stands out is the amount you spend on mobile phones and internet.  I'm sure all of these could be reduced.  Sim only deals are really cheap - you can get deals for around £5 a month.  As soon as you are out of contract on any of the phones you should look out for much cheaper deals.  There is certainly no need to get new phones every time.  I've had my phone about 5 years now and my DH used it prior to that for about 4 years so they do carry on working after the end of the contract!

Please redo your SOA and then you can get more help.

donkids22

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2 Number of children in household.........2 Number of cars owned....................1
Monthly Income Details
Monthly income after tax...1810.34
Benefits.......................        140.00
Total monthly income....... 1950.34

Monthly Expense Details
 Secured/HP ...............157.75
Council tax............................. 125 Electricity............................. 31.25 Gas..................................... 31.25
Water rates............................. 42.6
 Mobile phone............................ 90.59
Mobile is for 3 contracts 

TV Licence.............................. 13.37 Satellite/Cable TV...................... 101.43 Internet Services....................... 7.5 Groceries etc. ......................... 300 Clothing................................ 0 Petrol/diesel........................... 40
 Road tax................................ 0
Pet insurance/vet bills................. 7.53 Buildings insurance..................... 9.54 Contents insurance................9.00
 Life assurance ......................... 52.15 Other insurance......................... 62.71 Presents (birthday, christmas etc)...... 135
Haircuts................................ 0 Entertainment...........................
Total monthly expenses.................. 1256.34
Unsecured Debts
Description..........Debt......Monthly...APR M.........................10627.2...140.......0 B...........................139.76....5.........0 S.........................1649.6....20........0 V.........................2930......30........0[b] Total unsecured debts..........15346.56..
Monthly Budget Summary
Total monthly income........... 1,950.34 Expenses (including HP & secured debts). 1,256.34

Available for debt repayments........ 694
Monthly UNsecured debt repayments..... 195
Amount left after debt repayments....... 499
Personal Balance Sheet SummaryTotal HP & Secured debt................. -2,524 Total Unsecured debt.........-15,346.56 Net

donkids22

joedenise said:

You have used the wrong SOA for MSE - the one you've used is an old version.  Please redo it using this link:
https://www.lemonfool.co.uk/financecalculators/soa.php
and then format for MSE to post here.  It will be much easier to read and we can help you better.

Just from a quick skim through (but as I said hard to read) I think your Groceries may be a little low for 4 people especially with 2 children, one of whom is a teenager who always seem to have hollow legs!  We are only a couple and spend about £250 a month, although compared to some people that it is high.  You actually say yourself that you find yourself going over your budget so you really need to know what you actually spend.  Try keeping a Spending Diary for a month to see just what you actually spend rather than guessing what you think you spend - I suspect you probably spend nearer £400 than the £300 you put in your SOA. 

The other things that stands out is the amount you spend on mobile phones and internet.  I'm sure all of these could be reduced.  Sim only deals are really cheap - you can get deals for around £5 a month.  As soon as you are out of contract on any of the phones you should look out for much cheaper deals.  There is certainly no need to get new phones every time.  I've had my phone about 5 years now and my DH used it prior to that for about 4 years so they do carry on working after the end of the contract!

Please redo your SOA and then you can get more help.

The mobiles are high mine is contract only I pay oh mobile and Dd1 phone contracts as well.  Probably could keep the food spend under £300 if I could go to a!$? Every week but my work is eratic at the moment and I keep having to work till 6pm ( 2 hours over which i do not get paid for)so I have no energy to go shopping and we have been doing deliveries and collections which could add 30 to a normal weekly shop.  This month I am making a list of how much we spend on food so I have a better understanding.  The amount shown for credit card payments are wrong those are the minimums and I try to pay £300 a month across the 4 cards.

joedenise

I still think mobile phones are high even for 3 phones; are they all in contract?  If not change them to sim only deals.

Your SOA shows £135 per month for presents but there is nothing listed in Savings so where is the £135 going?

You have nothing for clothes or entertainment.  I'm sure you must buy at least some clothes for your children even if not for yourself and DH!  What about days out, eating out or takeaways?  All these things cost so need to be budgeted for.

donkids22

joedenise said:

I still think mobile phones are high even for 3 phones; are they all in contract?  If not change them to sim only deals.

Your SOA shows £135 per month for presents but there is nothing listed in Savings so where is the £135 going?

You have nothing for clothes or entertainment.  I'm sure you must buy at least some clothes for your children even if not for yourself and DH!  What about days out, eating out or takeaways?  All these things cost so need to be budgeted for.

The mobiles are still under contract it's a bit of a bone of contention as eldest daughter always wants the newest phone youngest not so bothered at the moment.  We only eat out for birthdays and normally use the christmas/birthday savings for this.  We don't really have days out as eldest don't want to go anywhere or be seen with us lol.  I take your point about the clothing and I will add this in to the budget.