The 'tail between my legs' diary

Dairydodger

Having paid off over £17000 of debt in 2013, I'm on here again with more debt. 

I got into this situation mainly due to my sausage dog rupturing a disc in her spine back in April. Although she had insurance, it was only for 2K for each new condition in any year. The operation and recovery set me back over 6K so I had to take out a loan for the rest.

To be fair, I was in a bit of a pickle due to borrowing for a couple of art courses and several ancient credit cards that started off as 0% balance transfers. I'm an artist and trying to set up my art business. At the moment I'm doing pet portraits to bring some money in and I've just started private tutoring for an hour a week.

I have several medical conditions and was pensioned off back in 2005. I'm not able to work in any 'regular' job due to my disabilities and conditions (believe me I've tried) so being my own boss is the only way to actually earn anything. I bring in about £100 a month, which is paltry but I've only just started out and it's going to take a while.

On top of everything, we need to move as this place is far too big. We need a bungalow because of disabilities (my other half has MS in addition to my medical stuff) and we can't quite make the mortgage payments when the fix ends in March next year. We need to be as near mortgage free as possible but accept we will probably have to apply again and I'm worried that my debts will screw it all up=LIGHT BULB MOMENT!

Today I've sat down and worked everything out. I'm shocked at how much I owe. I thought it was around 6K but it's 9K   I can comfortably afford the payments, some of them are over the minimum needed, but it's tight.

So, here I am doing the thing again. I will be going through the boards and picking up new strategies, but basically just knuckling down and paying it off as much as I can.

I'm putting my SOA up because it will help focus me especially when it comes to the art business and let's be honest we all love a SOA Any suggestions welcome.

I feel I need to explain the SOA: I have done it on only my income as we have separate bank accounts and divvy up the household expenses. OH sends over her half of the mortgage and council tax for me to pay, while she pays for all gas, electric etc. The groceries is my half of the food and any petrol for the car. The car is on motorbility.

I get free prescriptions due to my medical conditions. My income is a civil service pension and benefits and the 'other' income is what I earn each month. I'm still finding out the apr rates and will put them in when I can. The mobile phone bill is for two mobiles, one each. I'm still in contract for those and not able to change them. The internet is the cheapest we can get because of our rural location. The childcare and nursery money is what I send to my adult son. He has autism and is on DLA only. He lives with his BF in a very rural part of Wales and they are barely managing, so I top up his income. I won't compromise on this payment. The other childcare is Disney+ and Kindle fire accounts for our 2 grandchildren. Again I don't really want to drop this.

Let the journey begin  

Statement of Affairs and Personal Balance Sheet

Household Information

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

Number of children in household......... 0

Number of cars owned.................... 0

Monthly Income Details

Monthly income after tax................ 1600.42

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

Benefits................................ 0

Other income............................ 100

Total monthly income.................... 1700.42

Monthly Expense Details

Mortgage................................ 341 my half

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

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

Management charge (leasehold property).. 0

Council tax............................. 97 my half

Electricity............................. 0 OH pays

Gas..................................... 0 and this

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

Water rates............................. 0 and this

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

Mobile phone............................ 39.57 two phones still in contract

TV Licence.............................. 0 OH pays

Satellite/Cable TV...................... 0 have freeview

Internet Services....................... 32 all I can get due to location

Groceries etc. ......................... 200 my half of food and petrol averaged out

Clothing................................ 0 Ha!

Petrol/diesel........................... 0 included in groceries

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

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

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

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

Childcare/nursery....................... 180 for son

Other child related expenses............ 9.97 Disney and Kindle

Medical (prescriptions, dentist etc).... 8 Dentist

Pet insurance/vet bills................. 0 I've just cancelled this

Buildings insurance..................... 0 OH deals with this

Contents insurance...................... 0 and this

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

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

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

Haircuts................................ 25 I will look at cutting this down

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

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

Emergency fund.......................... 0 Ha!

Apple storage........................... 0.79 Need this for the business

HP ink.................................. 4.49 and this

Total monthly expenses.................. 937.82

Assets

Cash.................................... 136

House value (Gross)..................... 230000

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

Car(s).................................. 0

Other assets............................ 0

Total Assets............................ 230136

Secured & HP Debts

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

Mortgage...................... 91000....(341)......0

Total secured & HP debts...... 91000.....

Unsecured Debts

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

Vanquis........................2642......165.......0 consolidation loan (I know!)

Capital One....................807.17....50........0 more consolidation

Zopa...........................3545.96...183.......0 Vet loan

M&S............................390.......9.........0 Ancient cc

MBNA...........................682.89....50........0 Another ancient card

Halifax cc.....................1069.4....100.......0 Art courses

Paypal Credit..................320.35....53........0 Art course 0% til Jan 23

Total unsecured debts..........9457.77...610.......

Monthly Budget Summary

Total monthly income.................... 1,700.42

Expenses (including HP & secured debts). 937.82

Available for debt repayments........... 762.6

Monthly UNsecured debt repayments....... 610

Amount left after debt repayments....... 152.6

Personal Balance Sheet Summary

Total assets (things you own)........... 230,136

Total HP & Secured debt................. -91,000

Total Unsecured debt.................... -9,457.77

Net Assets.............................. 129,678.23

Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser

shell16

Hi there, just noticed this and that no one has commented yet.

Well done for coming back on here, you know what the most important thing is to do first....an emergency fund so that you are not adding anything new to credit.  Most opt for £1K, personally I like to have at least £500, you can always pay in more once you have a handle on the finances.

Can you update the APR's on the credit you have and also if you can get any on balance transfer at 0%?  There are some quick wins here, you could possibly go for, which is the snowball method.  You have a couple of credit cards with lowish balances so if you can clear them, it will make you feel better as having accomplished a paid off card and then use that payment to the next and so on.  Are those payments you have listed minimum payments?

Can you side hustle any more cash?  clearing out in view of looking to downsize the home? Survey sites, I find prolific is really good but there are others, and this is effectively free cash to put towards your debt. 

I think the most important thing I have found is regularly coming on here, filling out your diary and being able to look back on your progress.  There will also be others on here that can help along the way.  Look at other DFW's diaries, there is a whole mine of tips and tricks hidden in them which may just help you.

Good luck with your journey!
Shell x

Four_Seasons

Very best of luck will be cheering you on x

MalMonroe

Hello, I'm really sorry for your situation and please don't have the tail between your legs! You sound really lovely, particularly the bit about your dachshund, which really got to me - I have such a soft spot for those pooches. What an expense. But thank you so much for doing so much for your pet.

Although you are shocked at having £9k of debt, I don't think that's too bad, to be honest. You also have a property, a partner for support and not such a bad income. 

Have you thought of contacting one of the free debt help agencies? Stepchange, National Debtline or Citizens Advice? I know regulars on here are sick of me saying it but Stepchange really helped me to turn my life around. I was in a much worse situation than you are. I'm not saying it was easy but then don't they say that things worth having aren't always easy? (Or something).

Even if it's only that they can talk you through some options, give some advice, guidance, etc., you have already prepared a SOA and they will go through that with you. You don't have to accept any advice they give, if you don't want to. But sometimes it's just good to talk things through and get things off your chest. 

https://www.stepchange.org/

Good luck, I wish you, your partner and pet all the very best because you all deserve it.