An oldie returns, circumstances are very different

RhiBi

I was a fairly regular poster for a while and loved joining in many of the challenges etc, however life took a few unexpected turns and my circumstances are very different to what they were.  I am now a divorced and single parent, the separation is mainly amicable, and I do get a good monthly maintenance allowance which helps.  

For the first time in my life though I am having to manage to run a household and pay debts on my own.  It’s daunting to say the least.  I’ve done an SOA which I know is not great as I don’t save for things I should, for example my recent mot bill was over £300 and had to go on a credit card.  I have 2 credit cards, one (MBNA) is all currently interest free, the Halifax isn’t but I intend to transfer to the MBNA this month as I have a 20 month interest free offer.  I thought to keep the Halifax open in case I need to transfer some of the MBNA back as I am unsure when my current transfer deal ends.

I desperately need help in organising my finances, I just don’t know where to start having never been alone in this before.  Please be kind, I know there are many things that are missing as I have very little money at the end of the month, I need someone to sit with me and tell me what to put where.  Please help, I need to get this sorted before it spirals further, at the moment I feel it is doable, but it is starting to give me sleepless nights.

I have 4 daughters, one has moved out, 1is at uni in term time, so whilst technically an adult, I’ve classed her as a child for the purpose of the soa.  Daughter no.3&4 are 16 and 14 and in school still.  I am conscious that as they get older, any benefits and maintenance will decrease and eventually stop so I have to get this sorted before that time.

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

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 3

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 1130

Partners monthly income after tax....... 0

Benefits................................ 444

Other income............................ 792[b]

Total monthly income.................... 2366[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 292

Secured/HP loan repayments.............. 0

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

Management charge (leasehold property).. 0

Council tax............................. 107 single parent applied, paid over 10 months

Electricity............................. 100 this is actually gas and electricity! Octopus energy

Gas..................................... 0

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

Water rates............................. 40.26

Telephone (land line)................... 31.17 includes broadband

Mobile phone............................ 42.43, 3 phones, currently in contract

TV Licence.............................. 13.54

Satellite/Cable TV...................... 49

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

Groceries etc. ......................... 350 this is an estimate

Clothing................................ 0

Petrol/diesel........................... 55

Road tax................................ 0

Car Insurance........................... 39

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................. 0

Buildings insurance..................... 9.72 includes contents

Contents insurance...................... 0

Life assurance ......................... 0

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

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 0

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

Emergency fund.......................... 0

Plum account transfer................... 200

Child expenses.......................... 50[b]

Total monthly expenses.................. 1379.12[/b]

[b]

Assets[/b]

Cash.................................... 1000

House value (Gross)..................... 120000

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

Car(s).................................. 2000

Other assets............................ 0[b]

Total Assets............................ 123000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 16000....(292)......1[b] 4 years left to pay

Total secured & HP debts...... 16000.....-.........-   [/b]

[b]Unsecured Debts[/b]

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

MBNA...........................3009.4....70.3......0

Halifax........................2605.5....48.67.....0 not actually zero but intend to transfer this month

Nationwide loan................2250......59........13[b] 46 months left to pay

Total unsecured debts..........7864.9....177.97....-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,366

Expenses (including HP & secured debts). 1,379.12

Available for debt repayments........... 986.88

Monthly UNsecured debt repayments....... 177.97[b]

Amount left after debt repayments....... 808.91[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 123,000

Total HP & Secured debt................. -16,000

Total Unsecured debt.................... -7,864.9[b]

Net Assets.............................. 99,135.1[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

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

zenshi

Do you have £800 left over? If so, I’d be inclined to put away £300 in an emergency fund and whack £500 per month off the Nationwide debt to clear it. Then rethink

* missed the fact that you already have £1000 cash which would be emergency fund?!

RhiBi

No I don’t, so I really need to sit down and look at where it’s going.  The nationwide is a loan and I’m happy to just let that tick over for now, it’s the credit cards that worry me because I’m afraid it’s going to spiral out of control if I’m not careful.

zenshi

How long are the 0% offers valid till? Many years ago I was in your position without thinking ahead and when my child maintenance stopped, I was down £800 per month and things got out of hand. It’s tough but very doable

comeandgo

I think you need to keep receipts for a month or two and see where the money is actually going.  I’d bet you are spending a lot more than £5 per week on each girl and you don’t buy any presents or have any haircuts?

zenshi

the first few months, I kept a spending diary. Literally writing down every penny I spent. That helped

ratrace

Hi welcome again, i can remember reading your last dairy and you was going through some tough time im reaaly glad you have got out and moved on,

can i ask What is going to happen to the house in 4 years time once its paid off do you get to keep it for yourself or will you have to sell it and pay half the cash to your ex and find another place as i assume the kids will all be over 18, if that is the case trying to build up some savings would be good as the more deposit you have the better deals you will get

RhiBi

As part of the divorce settlement we agreed that I keep the house, and I don’t make a claim on his full nhs pension, so the house is essentially mine xx

ratrace

RhiBi said:

As part of the divorce settlement we agreed that I keep the house, and I don’t make a claim on his full nhs pension, so the house is essentially mine xx

Thats brill once the debt is paid off, then try to put some money away for future repairs such as new roof, new boiler etc... having that cushion there will prevent you from borrowing money and as a result not be in debt which is the overall goal

in terms of soa i would write down (i do mine on my phone on a spending tracker app) every penny you spend then this will allow you to see where you extra cash that the soa is showing you have has gone, 

BlueJ94

Hello and welcome back!

Out of curiosity where do you shop for groceries? it seems alot.. Do you meal plan at all?  

RhiBi

I used to be a fantastic meal planner, but it’s all gone a bit haywire with everything else that’s been going on.  I need to sit down and start doing that again because I am throwing out a lot of fresh food that just isn’t getting used.  I’ve gone through my freezer today and wMade a list of what is in each drawer.  I do not need to buy chicken fillets, beef mince, meatballs or pork until next January at least.  It’s shocked me how much is in there, so I need to get back to meal planning based on what I have here already.