Take 2, a shopaholics diary

shoppingobsessed2020

i did a bad thing!  maybe or maybe not depending on how you look at it.  sat here with a glass of wine looking over the accounts and checked credit score (i know meaningless but gives an idea)

so applied for a joint loan and got accepted!  10% interest over 7years for 37.5K.  monthly £614.

so going to pay the following.

his mbna, his lloyds card, tsb overdraft, small lloyds loan and big lloyds loan.  monthly payments for the them all are more than the loan cost.  allows the budget to be more streamlined and gets rid of a few monthly payments.  I am aware that yes it does mean we will pay more in interest but when i think we did a money transfer on his mbna card and the interest free period has run out, we are probably better off streamling the accounts this way to allow for less interest to be paid to the credit card.

budget this month and next are slightly off due to hen, stag and wedding costs, but from july pay day which is augusts budget money it will be approx 2.5K a month we can throw at things, and after the tesco loan is clear with its last payment in September we will have 2.9K a month to throw at things.

that would then mean i can clear things a lot quicker, and close things down as well.  im getting rid of my credit cards that are clear as i dont need them, and im going to try convice his lordship to close all his down as well as we dont need access to that much credit.

obviously the goal is not to have that loan for the full 7yrs, but if we can keep it for a while and then possibly refinance to a lower rate then great, if not well it would always be a target for overpaying so would reduce the interest we will pay that way as well.

im not going to bother with an amended soa just yet, no point until the tesco loan is cleared so it looks nicer.

but yeah, i did a bad thing i think.

shoppingobsessed2020

rough maths calculation, i can potentially by the end of this year have the following outstanding

joint loan
tsb loan
car loan
virgin credit card

thats insane!  i need to go to bed as this wine has gone to my head!  maybe it was a good thing rather than a bad thing!

shoppingobsessed2020

thought i had imagined this last night, clearly not as alert pinged on my phone to let me know that the money was in the account!

tsb overdraft clear, both lloyds loans clear, 5K cleared of big mbna (due to payment limits on faster payments), 2K to joint account to advance payday on wednesday, lloyds card clear.  leaves 11505 to pay off mbna card tomorrow.  then payday on wednesday which resets budget for the upcoming month.

i stupidly said i wasnt doing a new soa last night, im just about to start working on one.

shoppingobsessed2020

full soa, with everything added

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

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 1

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 1400

Partners monthly income after tax....... 6100

Benefits................................ 96

Other income............................ 0[b]

Total monthly income.................... 7596[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 286

Secured/HP loan repayments.............. 431

Council tax............................. 153 - paid over 10 months

Electricity............................. 100

Gas..................................... 100

Water rates............................. 29

Telephone (land line)................... 0 included with broadband

Mobile phone............................ 60 - upped this as bill was higher this month due to use abroad

TV Licence.............................. 0 - dont watch live tv, only netflix or disney

Satellite/Cable TV...................... 25 - netflix

Internet Services....................... 35 

Groceries etc. ......................... 400

Clothing................................ 0 - comes out of entertainment budget

Petrol/diesel........................... 100

Road tax................................ 50 - paid for in full, will put aside to keep for next time due

Car Insurance........................... 50 - paid for in full, seperate car account to budget for this

Car maintenance (including MOT)......... 50 - put in car account

Car parking............................. 0 - out of entertainment budget

Medical (prescriptions, dentist etc).... 25

Pet insurance/vet bills................. 0 - pay as and when - very old cat would credit card it.  thankfully pretty fit and healthy

Buildings insurance..................... 25 - paid for in full - put to one side to pay for next years

Contents insurance...................... 25 - paid for in full - put to one side to pay for next years

Life assurance ......................... 43

Presents (birthday, christmas etc)...... 200 - put to one side to cover this

Haircuts................................ 0 - out of entertainment budget

Entertainment........................... 500

Holiday................................. 300

Emergency fund.......................... 50

work account............................ 100 - to pay for his lordships courses, tax advisor etc

kid pocket money........................ 40

his union............................... 25

tutor................................... 60

cleaner................................. 160

gardener................................ 40

joint account charge.................... 25

my union................................ 15

kid pension............................. 57

alarm company........................... 12

contact lenses.......................... 12

swimming lessons........................ 46[b]

Total monthly expenses.................. 3629[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 160000

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

Car(s).................................. 35000

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

Total Assets............................ 195000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 61220....(286)......2.25

Secured Debt.................. 6370.....(135)......2.25

Hire Purchase (HP) debt ...... 9130.....(296)......0[b]

Total secured & HP debts...... 76720.....-.........-   [/b]

[b]Unsecured Debts[/b]

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

tsb loan.......................13449.....282.......0 - not sure on interest rate, imagine around 13-15%

mbna...........................11432.....165.......0 high!!!!!

tesco loan.....................1447......362.......0 not fussed as last payment september

next...........................3500......150.......0 - not sure on interest rate

my mbna........................7800......200.......0% until november

virgin credit card.............9373......200.......0 until mid next year

joint loan.....................37533.....615.......10[b]

Total unsecured debts..........84534.....1974......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 7,596

Expenses (including HP & secured debts). 3,629

Available for debt repayments........... 3,967

Monthly UNsecured debt repayments....... 1,974[b]

Amount left after debt repayments....... 1,993[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 195,000

Total HP & Secured debt................. -76,720

Total Unsecured debt.................... -84,534[b]

Net Assets.............................. 33,746[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

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

shoppingobsessed2020

have 11.5K from the new loan left, that will get paid to the interest bearing mbna card tomorrow.

i need to streamline our accounts as we have 3 sole accounts and 1 joint account between us.  in a few months i will cancel the nat west sole account and just use my tsb sole account.  

the new plan is to pay next off, then throw everything spare at my mbna card, then the virgin card, then split between the loans.

GeorgianaCavendish

I know they often say not to take debt consolidation loans, but I think it can work if it’s saving you higher interest rates on credit cards and streamlining the debt to fewer accounts. 

The critical thing to do is to make sure you and your other half are 100% on the same page about spending and your debt repayment plans. If his qualifications are always something he’s going to spend on, start a savings pot for them to reduce the damage next time. 

Why do you need to keep some of this loan money to advance payday? 

WinterWarrior

Absolutely @GeorgianaCavendish, I agree consolidating isn’t dreadful as long as a) it makes repayments manageable and easier to track and b) you cancel every single account, overdraft or card you pay off so there is no temptation to increase the debt.  Consolidation seems to fail when people fall into the trap of thinking they have more disposable income left to spend and start using the paid off accounts again. As long as you are disciplined it should help a lot. 

CRANKY40

I consolidated my debts half way through because my job was supposed to be finishing and I wanted a payment that I knew that I could afford on a reduced income. The happy ending was that my job didn't finish until January this year so as well as paying the loan off early I was able to save an emergency fund too. 

I have kept one credit card for online purchases. I also use it to pay for the food shopping as it gives me vouchers to spend but whenever I use it I transfer the money straight away. As @WinterWarrior says, discipline is the key.

shoppingobsessed2020

with it being half term next week its why ive advanced 2K to the joint account so that there is money there to cover a good chunk of the bills that come out so that if i get distracted and dont move funds till later than i usually would the money is there to cover the bills.  the 2K ive advanced will be paid back come pay day on wedneday, but its giving me a slight buffer.

tomorrow is a spend day, been invited to go bowling, but ive got cash in my purse which will cover that, Tuesday and Wednesday ive got a first aid course so monkey boy is at holiday club (prepaid) and we both just need a packed lunch.  Thursday ive got fire warden training  and monkey boy is with a friend for the day, friday i want to use some of the entertainment budget on him and possibly do the cinema and lunch (awkward age where its not cool to do things with mum) and then saturday im on the hen night, back sunday afternoon and then work monday.  busy week and high spend week especially towards the end.

i do think we are more on the same page than we have been in a long time, and i think him getting this promotion at long last has finally helped see that the income we have coming in its ridiculous to have this level of debt as this is not a normal level of debt, its insane.  i just need to keep him distracted this summer when he is home on leave which should be more managable than previous years as i will be off with him and monkey boy.  i worked it out for him and told him it equates to a 115K a year gross salary if he were to pay tax, that literall would put him in the top 10% of uk earners

i do hope that this is the final loan that we take out bar future car loans, and weve got a couple of K that we can throw and soon that will increase to 2.5K within the next few months so i just need to blast debt whilst he is away and keep him a slush fund from the entertainment budget so he can spend what he wants when home.

will see what happens come home time and just go from there, but i plan on being militant and if it means i have to take his cards off him when hes home and give him cash well thats something that we will have to discuss.  I dont want to go that route, but i dont want to be paying out this debt for years to come.

CRANKY40

If he's away at sea is there any chance of him getting a tax year in or does he not go far enough out from the uk coast?