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Soundgirlrocks
Posts: 746 Forumite
Glup, the last year has been hard, income was reduced, IVF, head gasket repair on the car (its a classic and I love her so not up for sale!!) and renovations to get my flat rented out. The good news is income is now up (thanks to rent) bills are down as partner and I are living together, mortgage is about to switch to a BTL interest only (will go down to £200pcm once its completes) and I don't pay towards my partners mortgage.
Time to get on top of this, I don't pay the bills but I do get all the groceries, debt needs to go but my partner also wants us to have holidays and enjoy life as its been hard and he feels I've got more income so we can now do more. I'd love to get this cleared in a year so clothing budget is getting slashed, as is eating out (although we live in London and this is something we both enjoy I can reduce it considerably)
Debts - Halifax is interest free I'll update the other rates when I can get the info, but they are the priority
Gym is for the swimming mainly (at least twice a week) & its something we do as couple
Assets
Secured & HP Debts
Time to get on top of this, I don't pay the bills but I do get all the groceries, debt needs to go but my partner also wants us to have holidays and enjoy life as its been hard and he feels I've got more income so we can now do more. I'd love to get this cleared in a year so clothing budget is getting slashed, as is eating out (although we live in London and this is something we both enjoy I can reduce it considerably)
Debts - Halifax is interest free I'll update the other rates when I can get the info, but they are the priority
Gym is for the swimming mainly (at least twice a week) & its something we do as couple
Statement of Affairs and Personal Balance Sheet
Household Information
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly Income Details
Monthly income after tax................ 2218.35
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 1250[b]
Total monthly income.................... 3468.35[/b]
Monthly Expense Details
Monthly Expense Details
Mortgage................................ 585.2
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 150
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 13.37
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 200
Petrol/diesel........................... 50
Road tax................................ 14.43
Car Insurance........................... 46
Car maintenance (including MOT)......... 25
Car parking............................. 10
Other travel............................ 185
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 32.17
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 31.02
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Gym..................................... 50
Eating out.............................. 100
Total monthly expenses.................. 1877.19
Total monthly expenses.................. 1877.19
Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 306000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 112633...(585.2)....0
Total secured & HP debts...... 112633....-.........-
Total secured & HP debts...... 112633....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................9400......100.......0
MBNA...........................5947.3....100.......20.93
PayPal.........................1716.61...56.34.....0
Overdraft......................2000......0.........0
AMEX...........................487.74....0.........0
Barclaycard....................981.38....0.........0[b]
0
Comments
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I've added some comments above in boldSoundgirlrocks said:Glup, the last year has been hard, income was reduced, IVF, head gasket repair on the car (its a classic and I love her so not up for sale!!) and renovations to get my flat rented out. The good news is income is now up (thanks to rent) bills are down as partner and I are living together, mortgage is about to switch to a BTL interest only (will go down to £200pcm once its completes) and I don't pay towards my partners mortgage.
Time to get on top of this, I don't pay the bills but I do get all the groceries, debt needs to go but my partner also wants us to have holidays and enjoy life as its been hard and he feels I've got more income so we can now do more. I'd love to get this cleared in a year so clothing budget is getting slashed, as is eating out (although we live in London and this is something we both enjoy I can reduce it considerably)
Gym is for the swimming mainly (at least twice a week) & its something we do as couple[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2 (I'd maybe put this as just you, as you are only looing at YOUR bills and not the household if that makes sense)Number of children in household......... 0Number of cars owned.................... 2[b]Monthly Income Details[/b]Monthly income after tax................ 2218.35Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 1250[b]Total monthly income.................... 3468.35[/b][b]Monthly Expense Details[/b]Mortgage................................ 585.2Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (leasehold property).. 150Council tax............................. 0Electricity............................. 0Gas..................................... 0Oil..................................... 0Water rates............................. 0Telephone (land line)................... 0Mobile phone............................ 35 - This can be dropped. I'm on EE PAYG monthly contract, £10 with unlimited calls, texts and 10gb data. Haggle
TV Licence.............................. 13.37 - Do you watch the TV? We only use netflix and prime now, no TV Licence needed.Satellite/Cable TV...................... 0Internet Services....................... 0Groceries etc. ......................... 250 This is high. I spend this a month for 1 adult, 2 kids and 2 dogs! Look at what you are eating / cooking etc. Downshift supermarkets/ Products.Clothing................................ 200 - A month? This could easily be reduced.Petrol/diesel........................... 50Road tax................................ 14.43Car Insurance........................... 46Car maintenance (including MOT)......... 25Car parking............................. 10Other travel............................ 185 - Whats this?Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 0Pet insurance/vet bills................. 32.17 - This seems high? I paid this for a horse..... Have you checked this is the best price?Buildings insurance..................... 0Contents insurance...................... 0Life assurance ......................... 0Other insurance......................... 31.02 - Not sure what this isPresents (birthday, christmas etc)...... 0 - Nothing? This seems incorrectHaircuts................................ 0 - Is this accurate? (Apologies if it is!)Entertainment........................... 100 - This could be reducedHoliday................................. 0Emergency fund.......................... 0Gym..................................... 50 - See if you can get this cheaper. Try a council gym, or see if your work do a gym package? do they do "couples" subscriptions? Or out of rush hour?Eating out.............................. 100[b] - This could also be reducedTotal monthly expenses.................. 1877.19[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 300000Shares and bonds........................ 0Car(s).................................. 400Other assets............................ 0[b]Total Assets............................ 300400[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 112633...(585.2)....0[b]Total secured & HP debts...... 112633....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRHalifax........................9400......100.......0MBNA...........................5947.3....100.......20.93PayPal.........................1716.61...56.34.....0Overdraft......................2000......0.........0AMEX...........................487.74....0.........0Barclaycard....................981.38....0.........0[b]
Essentially:
You have an income of: 3468.35
Prior to paying your debts you have: 1,591.16
Your debts are: £256.34
So in theory you should have £1,334.82 left the end of the month. If this isn't the case then i think you need to go through your bank statements and have a look at WHERE you are spending the money.
If you have that £1334.82 spare I'd personally get rid of the over draft then throw as much as you can at MBNA which seems to be the only thing charging you interest at the moment and get it down as quickly as possible
2 -
Hello and welcome - see above in bold!Soundgirlrocks said:Glup, the last year has been hard, income was reduced, IVF, head gasket repair on the car (its a classic and I love her so not up for sale!!) and renovations to get my flat rented out. The good news is income is now up (thanks to rent) bills are down as partner and I are living together, mortgage is about to switch to a BTL interest only (will go down to £200pcm once its completes) and I don't pay towards my partners mortgage.
Time to get on top of this, I don't pay the bills but I do get all the groceries, debt needs to go but my partner also wants us to have holidays and enjoy life as its been hard and he feels I've got more income so we can now do more. I'd love to get this cleared in a year so clothing budget is getting slashed, as is eating out (although we live in London and this is something we both enjoy I can reduce it considerably)
Debts - Halifax is interest free I'll update the other rates when I can get the info, but they are the priority
Gym is for the swimming mainly (at least twice a week) & its something we do as coupleStatement of Affairs and Personal Balance Sheet
Household InformationNumber of adults in household........... 2Number of children in household......... 0Number of cars owned.................... 2
Monthly Income DetailsMonthly income after tax................ 2218.35Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 1250[b]Total monthly income.................... 3468.35[/b] This is a good starting point!
Monthly Expense DetailsMortgage................................ 585.2Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (leasehold property).. 150Council tax............................. 0Electricity............................. 0Gas..................................... 0Oil..................................... 0Water rates............................. 0Telephone (land line)................... 0Mobile phone............................ 35 Are you tied into a contract? if not that can come down lots - resign yourself to phone upgrades just because you want a new one being a thing of the past - far more environmentally friendly to use them for longer anyway! Find a good SIM only deal being offered and either just switch, or take it to your current provider and use it to haggle.TV Licence.............................. 13.37Satellite/Cable TV...................... 0Internet Services....................... 0Groceries etc. ......................... 250 with an eating out budget too this could probably be reduced a bit without leaving you feeling as though you're living on bread and water.Clothing................................ 200 OK - until the debt is cleared it's "needs" only - socks and pants, and only then if they're holey and disreputable! Everything else will "do another trip"!Petrol/diesel........................... 50Road tax................................ 14.43Car Insurance........................... 46Car maintenance (including MOT)......... 25Car parking............................. 10 Can you lose this by parking a little further away and walking the rest?Other travel............................ 185 As ou are keeping the car anyway can you make a saving here by using the car a little more or is that not practical because of the nature of the commute? Even in London it's sometimes possible to drive to the edge of a zone and walk to the next station in, for example.Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 0Pet insurance/vet bills................. 32.17Buildings insurance..................... 0Contents insurance...................... 0Life assurance ......................... 0Other insurance......................... 31.02Presents (birthday, christmas etc)...... 0 You need to budget here - unless you never buy presents for anyone, which seems unlikely!Haircuts................................ 0 Is it very long, or do you have a hairdresser in the family?Entertainment........................... 100 If you want to keep the eating out budget the same can you trim this a little?Holiday................................. 0 You never go on holiday? Not even a weekend away with friends, or to visit family? Yes - of course you do, start budeting for it!Emergency fund.......................... 0 You know what we're going to say don't you - you need to build an emergency fund sharpish with houses and cars to consider!Gym..................................... 50Eating out.............................. 100
Total monthly expenses.................. 1877.19
AssetsCash.................................... 0House value (Gross)..................... 300000Shares and bonds........................ 0Car(s).................................. 6000Other assets............................ 0Total Assets............................ 306000
Secured & HP DebtsDescription....................Debt......Monthly...APRMortgage...................... 112633...(585.2)....0
Total secured & HP debts...... 112633....-.........-Unsecured DebtsDescription....................Debt......Monthly...APRHalifax........................9400......100.......0MBNA...........................5947.3....100.......20.93PayPal.........................1716.61...56.34.....0Overdraft......................2000......0.........0AMEX...........................487.74....0.........0Barclaycard....................981.38....0.........0[b]
From Mimi's workings out it looks like you have a decent surplus there, so the first question is where is that £16,000 a year going? Yes - looked at like that it's a lot of money isn't it, and that's why you need to get a handle on it. Obviously it's not that much because you are paying something to the other debts, but it's still a good figure, and you can get the debt shifted pretty fast especially allowing the savings on the SOA above. As you're already facing a big budget change with moving in together (congratulations!) etc, now is a great time to really get to grips with things too.
First up, find all the relevant interest rates and also when any 0% periods are ending. If you're still using cards other than for emergencies (genuine ones, not "ooh, pretty, I want..." ) then stop - with that surplus you really don't need to. Start setting aside money now for your next year's car insurance and tax and pay those upfront as a lump sum, then start again budgeting for the next - that saves on the extra you pay for instalments. Build an emergency fund. Then any surplus left gets directed first and foremost towards the highest interest rate card - everything else gets the monthly payment set to just above the current minimum - that way you chip away a little bit more each month as the payment doesn't fall off as it otherwise would. Keep an eye for whether you are likely to be successful in applying for any new 0% deals to switch interest bearing debt over to. You're in a massively fortunate position to be able to hit this hard and fast, and you can be debt free in relatively little time, but don't forget the lessons you learn while clearing it! 🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Soundgirlrocks said:Other income............................ 1250[b]Total monthly income.................... 3468.35[/b]
Monthly Expense DetailsMortgage................................ 585.2Secured/HP loan repayments.............. 0Rent.................................... 0Management charge (leasehold property).. 150Other insurance......................... 31.02
I think it would be clearer for your thinking not to muddle the rental income and costs in with your personal finances but to have them on a separate sheet, as the business they are. With income, tax, (you have accounted for that?), mortgage, insurance, management charges, boiler servicing, maintenance costs, tenancy changes, unlet periods, redecoration etc. And then just bring the after tax profit over to your personal account. Otherwise you run the risk of thinking you personally have more money to spend than you do.
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
Given you have a decent surplus I would sort out that debt and forget holidays etc for a year. You never know if you are going to have a reduced income in the future and you have no emergency savings and more than £20k of debt so addressing this now rather than splurging on things you want rather than need is a better option. Also surely some of that £1250 of presumably rent should be set aside for tax and maintenance on the BTL?I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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The observation I would make is that it's hard to justify £350 a month on clothing, gym and eating out when you're paying out such high levels of credit card interest at the same time. The occasional small treat is fine but in the main, the bulk of any excess income should be going to paying down your debts.
As others have mentioned, don't neglect to to set money aside to pay the tax bill on your BTL income.0 -
Hi all, thanks for the comments, as I mentioned the SOA is the current state of affairs (which is not where i normally am but normal has gone out the window this last year!) Maintenance for the rental is in part covered by service charge. I manage the building so am on top of any big costs there, it’s just had a complete new heating system and redecorated thought out so there shouldn’t be anything big to deal with. Rent included is after tax (it’s a London property)
Parking is on the road permit as we have no driveway but once ULEZ kicks in the car is being sent to Lincoln to be properly stored as a classic.
Pet insurance is high because dog is 9 and had a few claims (also included his worming and flea treatment) been stung in the past with cheaper policies that offer very little cover
Other insurance in critical illnesses income protection cover, I dropped the redundancy insurance one after the rental was up and running as the premium had gone up to £100pcm
Phone contact is up in 2 months will be going sim only after that
Gym is already 50% reduced (vitality with work) can’t go off peak as working full time. Council gym is fractionally cheaper but facilities are much worse.
Travel is for the tube, OH doesn’t want me cycling atm because of the IVF and parking cost if we are away
Clothing is done now, I needed to replace quiet a few bits that had completely worn out.Holidays at the moment it’s nothing but other half wants to get some big things booked for next year (we both turn 40), we have companion vouchers and airmiles which will reduce it but not going would a be a major issue for him as he works for himself he only stops when he goes away. It’s will slow my progress, but there are too many variables to predict what and where theses trips will be. (If IVF works then I’m not skiing for example!)
Hair is long, cut in the summer may treat myself to a cut at Christmas depending on annual bonus.
I manage the rental myself so no fees to deal with, tenant should be long term (mum with two kids) I have no interest is increasing rent each year so hopefully she is settled. Obviously no guarantees.
The surplus has only just been created- it will be going on the debts! As I mentioned it’s been a tough year (not I appreciate anywhere near as bad as for some) We may need more IVF in which case that will take some of the surplus.
I will be targeting the highest interest debts first1 -
Honest suggestion, and I know this may be hard to hear. If the current round of IVF doesn’t do the trick - and I should add I very much hope for you that it does - then put that on the back burner for a year and fix the debt situation. Right now you can’t afford maternity leave etc - and right now you have also created a good surplus to be able to clear things back with. Hit it hard - with absolutely everything you can spare for a while. You will then be in a far better position both financially AND mentally (reduced stress from being debt free) to look forward to introducing a new arrival to your lives too.Totally agree with keeping the pet insurance where it is once an animal is getting on in years - it’s too risky to otherwise find yourself with a policy which excludes more than it covers as new insurers refuse to cover previous conditions.If you are set on getting away on “big holidays” next year you do need to decide between you in a budget for those and start setting aside money now though - something to discuss between you there. Ideally you’d set that plan aside for another time too but when there is a second person in the mix it can be tricky to find a compromise so a solid budget, forward (financial) planning and then sticking to your plans will help there. A good thing to remember for the future is that “next year’s holidays need saving for during this year” though, otherwise come next year it’ll be back to the credit cards again!Final thought - you have road tax listed as an outgoing but classic’s aren’t charged tax are they. A good friend of ours has a Landrover that has just reached classic age and he mentioned it recently.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
I understand where you are coming from but we have agreed one more round and time is critical without going into to much personal details waiting a year isn’t an option.EssexHebridean said:Honest suggestion, and I know this may be hard to hear. If the current round of IVF doesn’t do the trick - and I should add I very much hope for you that it does - then put that on the back burner for a year and fix the debt situation.EssexHebridean said:Final thought - you have road tax listed as an outgoing but classic’s aren’t charged tax are they. A good friend of ours has a Landrover that has just reached classic age and he mentioned it recently.She’s 30 years old so doesn’t yet qualify for the tax reduction or ULEZ unfortunately.
I really appreciate everyone’s comments, I realise I may sound like I’m not listening, but I am. I’ve got a clear plan, & if the ivf works I’ve still got 9 months to clear the bulk (certainly everything that is costing interest plus a good bit on top) before income drops. Other half is also earning and will be contributing to maternity, baby or ivf cost. I’ve not included his income as at the moment we keep our money separate.
Once the btl mortgage completes I should in total (including minimum payments) have about £2k a month to chuck at the debts1 -
Absolutely understand where you’re coming from with the IVF - but it needed to be said, it would have been irresponsible not to have mentioned it. Sometimes the best advice isn’t always the most practical for someone, but as long as you know the risks, only you can make the decision there.
Looking at the debts, as someone mentioned earlier, you need to get the overdraft sorted next - either by making it your priority for the surplus you’re creating or by seeing if you qualify for a 0% money transfer card and then paying that off in it’s own place in the pecking order. OD’s are horrible “dangerous” debt because they can be called in at any time, so getting rid of that is critical. If you have no other debts while not ideal a small OD isn’t much of an issue - but where there are other debts as well, particularly if any of those debts are with the same bank as the OD, it can act as a bit of a red flag, so prioritise that. After that you know what to do - highest interest rate first, keep your eye out for 0% BT’s you may be accepted for, and transfer the interest bearing stuff to those. Even if you get everything to 0% though don’t take your eye off the ball in relation to paying off - at that stage priority is the one with the shortest time remaining on the 0% deal.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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