Where on earth do i start!!! breakdown of finances included,please help.

right well im not sure where to start but just bought martins book and addicted to this site so i thought i'd bite the bullet so to speak and post a breakdown on here.....did try pm'ing martin :o but he said you lovely people were the best place to start.
i desperately want to start paying off our debt and be debtfree.....i have two young daughters(2.5 and 8 weeks) and i want if nothing else to set a good example to them rather than let them follow our bad example.
im not sleeping,eating much and constantly worry about our situation and how to get out of it,before we've consolidated loans etc,got 0% cards but then carried on using them.........NO MORE! IT REALLY DOES HAVE TO STOP!!!
i've tried to gather as much info as i can here in the hope that you may be able to help.
incomings:- hubby's wages=£1290 28th of every month.
childbenefit = £113.60 every 4 weeks.
we are also in reciept of tax credits but it is under change atm cos of birth of second baby and annual review so im not counting that as i havent a clue how much it would be.

outgoings:- rent = £235.
council tax = £101
water = £33.33
car ins = £51.65
egg loan = £235.46
egg card = £40.00
house contents ins = £10.01
phone/tv/internet = £85
petrol = £80.00
shopping = £200
going out/ourselves etc = £120
newspapers = £20
argos card = £10
virgin card = £30
gas = £30
electric = £35
barclaycard = £10

am also aware that i should(sensible in an ideal world) be putting money away each month for xmas,birthdays,tv licence,car tax,mot,hubby's pre pay prescription certificate,holidays,clothes rather than putting on credit cards etc when they pop up.

debts:- virgin card = £2200....is 0% for another 6 months.
egg card = £1,105.48....rate was 0% but just finished,unsure what it is now.
barclaycard = £150.91.....£18.9%
my bank a/c = £175 into overdraft.
egg loan = loan taken out was for £12,500....but figure showing to repay with ppi is £14,244.78......is canceling ppi a good idea?? this would reduce our payments by around £35 a month.
argos card = £752.......£259.99 on 6 months buy now pay later,finishes next month,£362.86 on 12 month bnpl....finishes sept.....the rest is normal credit-unsure of rate.



so there it is.........god it looks even more depressing written down :eek:
please help me find a way to pay it off.....i really am determined this time.....and before anyone asks i cant get a job myself as my husband works 6 on 4 off shift pattern never getting the same days off so i cant be contracted anything,i dont have anyone to look after my children and couldnt afford childcare.i have looked into it but i could only do something like supermarket work(is what i did before children was checkout superviser) and i have gone for interviews but once they hear i cant be contracted to perm hours they arent interested....even though i have hubby's rota until march 06 so could agree with them hours until them they are not interested in giving me flexible time.
i am already planning to cancel the newspapers as they are a non - neccessity.....am going through oldstyle boards and trying to cut shopping budget etc,trying to cut the crap things we buy like magazines out....but i really want to make headway into paying the debt off!! i would love to work out how to do this and work out a debt free date as i think something like that would really inspire us to stick to it and we would get a buzz out of overpaying and seeing it shorten.
will check back as reg as i can as i am really raring to go on this...please help.
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Comments

  • debtbuster2K5
    debtbuster2K5 Posts: 1,515 Forumite
    Hi,
    Well done on taking the first step..You have come to the right place.

    Firstly, going through your expenditure there are some areas where you could cut back, but its all about personal choice. If you really want to do this and do it well, then be prepared for some lifestyle changes.

    Your car insurance amounts to £620 per year. Is this for 1 or 2 cars? If 2 do you really need 2? If 1, you need to find a better insurer or downgrade the car as that is far too much on insurance.

    Phone, Tv and internet @ £85 per month is also high. Telewest do all 3 for £30 per month. Failing that, look at call18866.co.uk and review whether you really need sky tv.

    Shopping £200, How many of there are you?. Have a look on Money saving Old Style boards for some great ideas about making your shop go further.

    Going out/ Ourselves £120. This seems a fair whack, when you consider your debts. Even if you halved this you would give yourselves £60 per month extra to throw at the debts.

    Newspapers £20. Read them online, or cut them out entirely.

    You asked whether to cancel the ppi on the loan. I would definately cancel it, as these plans are not great at paying out when you need them, plus you would have an extra £35 per month for your debts.

    To make real headway with the debts, plug all your details into the snowball calculator here https://www.whatsthecost.com/snowball.aspx and you will see that the more surplus income you can find, the quicker the debts will be paid off.

    Good luck and keep posting.

    Regards
    24 hours in a day. 24 beers in a case ... coincidence? :beer:
  • debtbuster2K5
    debtbuster2K5 Posts: 1,515 Forumite
    Hi again,

    Looking at your Child Tax Credits, and making some crude assumptions, Ie:
    Hubby earns £20,000 per year before tax?
    You have 2 Children, 1 under 1 year old ?
    You stay at home to look after the Children?

    I think, (and please dont rely on this) you could be entitled to £2,585 per annum in Child tax credits, whilst one child remains under the age of 1.

    This is about £198.85 every 4 weeks.

    Have you not received your new award notice yet?
    You could also try https://www.entitledto.co.uk and plug in your actual details.

    Regards
    24 hours in a day. 24 beers in a case ... coincidence? :beer:
  • LearningToSave.
    LearningToSave. Posts: 1,428 Forumite
    hiya,
    thanks for your swift reply :-)
    yep i stay at home to look after children......one is 2 and a half,the other 8 weeks.and yep hubby's wages last year were £20,036(year before was £17,775 but had payrise this year)......we were getting £23.31 a week in tax credits but when i rang them to say about new child they upped it to £70 a week.....this based on all the calculaters etc seems far too high,the anual renewal(new award notice) has just come and i have sent it back but until i hear from them i am not counting tax credits into our budget.when we do find out how much i will be using it to pay towards debts.

    newspapers.....will be going to the shop tomorrow to cancel them,siince birth of second baby dont get to read them really.

    car insurance.....is only the one car,its a rover 216 sei....this was actually the cheapest quote i could get!!! i think its due to hubby only having one year no claims having had accidents in 2003-his fault and 2004-not his fault!!

    shopping.....as said in original quote going thro old style and learning :D

    going out/ourselves.....yes going to try and cut this back and pay the excess off.

    cable/tv/phone......includes all phone calls made too,but have registered with 18866......it was originally the 3 for £30 but we now have sky sports and movies too for £25 a month,i guess we could cut that but to be honest id rather not as i dont really go out at all (so internet and tv kinda my lifeline-sad but true)and when we did it was to cinema or pub to watch football(hubby!!) which is why we got the sports/movies package for £25 as it was a hell of a lot cheaper than cinema and him going to the pub several times a month to watch sporting events.

    loan.........is in hubby's name but will be getting him to phone and cancel ppi later....we were assured by egg we could do this at any time,we did say originally we didnt want it but were basically told if we didntgo for it we wouldnt be given the loan.

    meant to say,all payments that can go direct debit so saving small amounts.

    going to look at the snowball thing tonight when dd's give me proper time too :-)
  • ms_london
    ms_london Posts: 2,852 Forumite
    First Post Photogenic Name Dropper First Anniversary
    incomings:- £1290 28th of every month.
    £113.60 every 4 weeks.

    Total Income £1403.60

    outgoings:- rent = £235
    council tax = £101
    water = £33.33
    car ins = £51.65
    house contents ins = £10.01
    phone/tv/internet = £85
    petrol = £80.00
    shopping = £200
    going out/ourselves etc = £120
    newspapers = £20
    gas = £30
    electric = £35

    Total Outgoings £1000.99

    Creditor Min Payment Balance
    argos card = £10 (£752……?%)
    virgin card = £30 (£2200……..0% for 6 months)
    barclaycard = £10 (£150.91.....18.9%)
    egg loan = £235.46 (£12,500 without PPI, £14,244.78 with ?%)
    egg card = £40.00 (£1,105.48……?%)
    Overdraft £0.00 (£175…….?%)

    ARGOS - £259.99 JULY, £362.86 SEPT, £129.15 REST

    Total Minimum Repayments £325.46

    Net Monthly Surplus £77.15

    Outgoings

    • Water, gas & electric seem a little high? Or perhaps they’re not. Do you pay monthly or are these figures an average of the quarterly bill? Could you change suppliers? If you are on the monthly payments (we use a payment card for ours), perhaps you could reduce your payments for the summer months, call them and see what they say? There is no point your account sitting in credit waiting for winter bills.

    • Car insurance. As someone else asked, is this for one or two cars? (the same with petrol) – could you get a better deal?

    • Phone/tv/internet – as another poster mentioned, you should be able to shop around for an all in one. £85 a month is £1020 a year, that’s a lot of money. Even if you could half it it could save you £510 a year.!! That would perhaps pay for your car insurance outright.

    • Shopping. For 2 adults & 2 small children, this seems quite a lot – but then if you are buying nappies & things, perhaps not. Do you think you could reduce it to £150??

    • Going out/yourselves – I think this amount, combined with the amount you spend on home entertainment (tv, internet etc) is too much. I think it should be one or the other, not both – or perhaps if you just cut back on both.

    • Newspapers – cancel these, £20 a month is a lot. Start using the library or reading online (since you are paying for the internet, youd might as well make the most of it, spend more time on here, lots of fab tips).

    Debts

    • You need to find out the APR’s for you the Argos Card, Egg Loan, Egg card & Overdraft. If you can only find out the monthly rate, still let us know what that is & we can convert it into an APR for you. The interest rates will let you see which debt is a priority & which need to be paid off first.

    • The argos card I suspect 25.9% (just looking at the rate on the internet, but I might be wrong). If this is the case, then this would need to be one of your priority debts.

    • If you can, it would be more worthwhile paying £10 towards your virgin card, and the £30 you are currently paying them to Barclaycard (with the higher APR). Is £150.91 your total balance on your Barclaycard? If so, perhaps try & clear this one first, then cut the card up, or just use strictly for emergencies!!!!

    • Your total debt is £18,628.17 (assuming you DO have to pay the PPI on your egg loan) – it might sound scary, but its not too bad, really :0) – its manageable, and good that you’ve realised it now, rather than a few months/years down the road it being 10 times more.

    • The above figures, don’t take into account you trimming your outgoings or you extra benefits that you are waiting to hear about it, do don’t despair. Perhaps you could post another SOA (statement of affairs) once you know exactly what you will receiving.

    Other

    “am also aware that i should(sensible in an ideal world) be putting money away each month for xmas,birthdays,tv licence,car tax,mot,hubby's pre pay prescription certificate,holidays,clothes rather than putting on credit cards etc when they pop up.”

    • This is definitely a good idea to do, if you budget for everything, then there are never any nasty suprises. Work out how much the above cost you & divide the amount by 12, that’s how much you need to be putting aside each month into an “emergency account”. When is the car tax/MOT next due? And your hubby’s prescription? TV licence?

    • You really need to stop using credit though, cancel your overdraft, cancel your credit cards – if you really do need one for emergencies, make it the ONE, cut the others up & cancel your accounts (after you’ve paid them off of course).

    • I appreciate it must be hard for you to find a job around your hubby’s shifts & your children, but there are ways that you could boost your income. Selling things on ebay or doing a car boot (old children’s clothes, your clothes, anything you have in the loft, lying around the house – someone will buy it.). Could you do mystery shopping? You can take your children along with you, you could make £50+ a month, every little helps, can you sew? You could do sewing/ironing for friends & family, look after their children (this will bring in money & means your children with have others to play with).


    That’s all I can think of for now, but well done posting – you are not alone & can come here for help whenever you need it. You can get through this, you have options & are not stuck, so things will get better.

    See budgeting as fun – use as many money-off coupons as you can & hunt for the deals – see how little you can spend.

    If you have any questions, message or email me and I will be happy to help.

    Take care,

    Ms_London
  • lou_martin
    lou_martin Posts: 28 Forumite
    Hi

    well done for trying to tackle it all, seems daunting at first but you'll get there in the end.

    Just be careful about cancelling the PPI on loan as depending on the agreement and time you've had the loan then you might have to pay a penalty for cancelling the laon or you will have to pay off the entire loan and take it out again with out the PPI (and then they might increase your APR). Mine was with Northern Rock so it might just be them but maybe you should check that out before you go ahead and cancel it (like i did - oops!).

    Good luck with it all!
    lou_martin :rotfl:

    Debt-free date Sept 2008
  • LearningToSave.
    LearningToSave. Posts: 1,428 Forumite
    thanks lou-martin........when we took out the loan with egg we said we didnt want the ppi but were told that the loan was being authorised with ppi but not without so basically we had to have it.......but they also said that it could be cancelled at anytime.so i hope this is still the case.
  • Edinburghlass_2
    Edinburghlass_2 Posts: 32,680 Forumite
    First Post Combo Breaker
    Obviously the telephone/internet/tv at £85 is of most interest to me and I am sure can be cut down.

    Just for me how about jotting down for a week just how often you watch those films and sport that you are paying extra for? I appreciate that if you don't go out these expenses become your entertainment but with summer coming will you really be watching a film every night?
  • mummytofour
    mummytofour Posts: 2,636 Forumite
    Did you get your sure start maternity grant?? £500 MUST be claimed before baby is 3 months old.
    Also real/washable nappies? there are many types you cna get now, its not all plastic pants and terries.
    I have been using washable nappies since ds3 was born if you need my to point you in the right direction please PM me.
    Vxx
    Debt free and plan on staying that way!!!!
  • LearningToSave.
    LearningToSave. Posts: 1,428 Forumite
    the tv......hmmmmmm i can see everybody is going to comment on this!!
    well i wont get rid of the internet or the phone-have registered with 18866 though,as for the tv we watch at least 3 films a week and my husband watches all the rugby,football and there are other things too that i cant remember!! previously we would have gone to the cinema(about £11 a time for two) when able and when not able bought dvd's(anywhere from 9.99 to 14.99) and husband would have gone to the pub every week to watch events on sky sports about £20 min spent per visit.........so to me £25 a month for these seems a good save anyway.
    i honestly will keep it in mind but as i said i dont go out at all and when hubby goes out i watch the movies myself,i also dont drink or smoke so count that tv package as my only extravagance. jeez makes my like sound crap doesnt it!!!!
    please dont judge me too harshly for this.
  • Smudge32
    Smudge32 Posts: 373 Forumite
    How about becoming a DVD tart for a bit?
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