Statement of Affairs - help me not let 2k grow back to 15k debt!

Hello

I'm 40, single.  Net income after tax, minimum pension etc is £2200/month
My mortgage is £50k on a 200k place. 6 years to run. Fixed for the next year at 1%. 
I own an old-ish car outright.
8 years ago I was in 15k credit card debt following living in an expensive area then a rship breakdown and job loss.  Plus general overspending.  I paid it off by working extra but that work has gone !!!!!! after covid. 
I have racked up 2k on credit card again - just slightly overspending each month I think. There always seems to be something I "need" eg new bedding, a book. 
Please let me have your thoughts - what I'm doing right and wrong. 
Thanks

BASIC BILLS per month
Mortgage 700
Gas & Electric 50 but to rise to 120 in 6 months
Council Tax/water  91
Food 300
Travel/Petrol 10/week (I work from home)
Mobile 12
Internet 38
Tithing (charity/church) 200 - kinda non-optional! 

DISCRETIONARY per month
TV subs 12
Hair/beauty 50
Gym 20

ANNUAL BILLS - a lot to itemise but comes to about 2k/year
Car insurance/MOT/Servicing/breakdown, tax
house insurance
Communal charges for flat eg garden maintenance   
Amazon Prime, microsoft
Dentist/optician, flu jab etc









Comments

  • joedenise
    joedenise Posts: 16,549 Forumite
    First Post Name Dropper First Anniversary
    It would be helpful if you filled out the SOA on https://www.lemonfool.co.uk/financecalculators/soa.php and formatted for MSE.  This includes everything you are likely to need to budget for.

    Do you actually save for your annual bills?  If not that is a good starting point!

    From what you have posted I would say that you are spending quite a lot on food.  My DH and I eat well and spend between £200 and £250 a month so this could be an area where you could start cutting down.  Have a look at the Grocery Challenge in the Old Style forum for some ideas.

    Good luck with reducing and not increasing your debt.
  • shell16
    shell16 Posts: 1,354 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Morning

    I would second what @joedenise has said, Grocery is really high, we are a family of 4 and our budget is £100 a week.  Also seems a lot on hair and beauty too is that every month?  If you could complete a SOA, this would help alot more, will give a true picture of whats left cash wise for sending towards debt.

    Thanks
    Shellx

                                                                                             

     Debt Free - 04/03/23.  Total LBM August 2021 £15410.70

  • What is your job? We don't really have tithering in the UK.

    Trying to workout your budget it looks like you have around £500 left a month. I don't think you are listing everything you spend. a full SOA would be ideal. With only £2k of debt you can pay that off in only a few months.
    Debt £7976 | Savings £350Aims: Buy first home 2026-8. £20k deposit
  • You grocery budget sounds high. We are a family of four and we spend and average of £338 per month. Are you including 'household items in this, like household cleaning products, toilet rolls and toiletries?

    When does your mobile and internet contracts end? I just switched from paying £12 mobile to £7.95 without a drop in service level.
    • Mortgage over-payments to date: = £16,746
    • Original redemption date: August 2043
    • Current redemption date: July 2041
    • Debt: £15,930
    • Savings: £12,430
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