Time to make a change - Debt-free wannabee!

Sncjw

I'm curious why doesn't your partner contribute more to the household. Surely they will want to help at least get the secured debt cleared as it's risk to house. 
Also the mortgage will likely go to too. 

If the partner is on the mortgage I think they need to help with the costs of running the house. 

fatbelly

I agree that the partner should be helping with the secured loans.

For your part you should concentrate on clearing the overdraft by cutting any expenditure that you can live without - and probably switch to another bank.

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/
https://www.moneysavingexpert.com/banking/cut-overdraft-costs/

RAS

Lamech_43 said:

Thank you for all the replied, I have tried to clarify some of the points below...

• The SOA is purely based on my income & expenditure.
• My current mortgage interest rate is fixed for another 3 years & is entirely mine.
• My partner contributes towards groceries & holiday fund, but I have only included my contributions in the SOA.
• I have only just opened the LISA following a post I read on this forum. It is in my name only - I will move it into the asset section for the next SOA update I post.
• The secured & unsecured loans showing 0% interest are accurate.
• My buildings & contents insurance are a combined policy - £33.50/Month
• The bank fee of £21/Month covers mobile phone insurance, worldwide travel insurance & AA breakdown cover, I have only kept this going as its quite an extensive package (Travel ins. includes winter sports & AA covers other cars if you are a passenger etc.).
• The emergency savings is something I have done each month but spent due to poor money management / impulsive spending so there is nothing to show for this currently.
• The unsecured loans have been taken out for previous debt consolidation.

• The SOA is purely based on my income & expenditure.
• My current mortgage interest rate is fixed for another 3 years & is entirely mine. That's lucky as it gives you some time to clear debt before you renew. 
• My partner contributes towards groceries & holiday fund, but I have only included my contributions in the SOA. Your partner should pay their share of the CT, utilities, water rates, contents insurance and any household media costs. Obviously you want to avoid them contributing to the mortgage or property costs, but if they can afford a car, they can pay their way.
• I have only just opened the LISA following a post I read on this forum. It is in my name only - I will move it into the asset section for the next SOA update I post. It's good that you've opened a LISA before your 40th birthday but misguided if you think saving into it is higher priority than debt busting. That £150 needs to clear the OD for starters. The first payment can just sit there meantime.
• The secured & unsecured loans showing 0% interest are accurate.
• My buildings & contents insurance are a combined policy - £33.50 Month Shop around before renewal
• The bank fee of £21/Month covers mobile phone insurance, worldwide travel insurance & AA breakdown cover, I have only kept this going as its quite an extensive package (Travel ins. includes winter sports & AA covers other cars if you are a passenger etc.). You can't afford winter holidays. You're in house swap or camping territory, if you can get a free tent. How much is standalone breakdown cover? Why is mobile cover not an add-on, or even included in your main insurance?
• The emergency savings is something I have done each month but spent due to poor money management / impulsive spending so there is nothing to show for this currently. Unless you really get a handle on this or you'll start defaulting soon. Your are heading into a situation where you won't be able to get cheap credit anymore, and you have property. Unless you are a DIY fiend, you needs savings to cover maintenance and breakdowns. Go for a limited access savings account.
• The unsecured loans have been taken out for previous debt consolidation. You know the one about doing the same thing over and over again, and expecting a different outcome? Your existing life style ain't sustainable. And no friend's weddings, celebration parties, overseas holidays or cocktails. It must have taken 10 years to get in this mess? It'll take as long to sort it out.

Lamech_43

My SOA has very much been filled out as a "this is what I should be doing" as opposed to "this is what I am doing" yes. I set the money aside each month but it subsequently spent it - I appreciate this is not very helpful but its hard to put any figures on paper as my spending has been different month to month. I don't want to go into too much detail about how the money was wasted or exactly what on as I want to stay anonymous on this forum. I would say I have been overspending by £600/month for some time.

Some of the key points I have taken from the comments so far...

1) Priority#1 is to clear my overdraft

2) Get rid of the bank account fee & look into a standalone AA policy

3) Check contents insurance to see if mobile phone is covered

3) Shop around for cheaper house & contents insurance when this is up for renewal

4) Good that a LISA has been opened but this is right down the priority list for now

5) Swap the expensive monthly mobile phone contract for a cheap SIM only deal when my contract ends

6) Lower the amount I am budgeting for entertainment

I have just opened a limited access savings account for my EF money and will start to utilise this going forward.

Again, thank you all for the comments so far. I know this is not a good situation but I am determined to make a change & am confident I can get things moving in the right direction. Enough is enough.

I want to make as much of a dent as I possibly can in this debt over the course of the next 36-Months

enthusiasticsaver

Good you are taking the comments on board. Hope you manage to sort the finances out. 

EssexHebridean

Ignore the AA completely - you will get equivalent cover to suit your needs for a far lower price elsewhere. I mentioned AXA Breakdown previously I think - they are certainly worth a look (Our cars are both around 7 years old and our policies for this year cost under £40 per car)

We usually make a point of saying that an aspirational SOA written from the point of view of what you think ought to be happening is unhelpful - hopefully some of the comments already made here will explain why this is. Essentially though it hides from us where the big mistakes are being made (which makes offering constructive suggestions harder), and the bigger risk is that it also conceals that from the person whose SOA it is - sometimes coincidentally, and sometimes more deliberately. Just be sure that you have a really good grasp on where the mistakes have been, and ensure that you watch for them creeping back in. I'd actually suggest that you do an additional SOA just for yourself (if you wish) that really reflects what has been happening - as at least then you will have a clearer picture of all the areas needing work on them. 

Stateofart

You're paying around £250 a year for mobile cover, travel insurance and AA.  If you're not intending to travel, it doesn't matter.  I re-signed with the AA for around £75 this year and mobile insurance is literally a few pounds a month - in essence, get rid.

Also, I don't think you've addressed the mobile phone - this is collosally high for one person - can you clarify this.  I bought a new iPhone direct from Apple for £16 a month 0% and spend another £10 on a sim only....

RAS

Lamech_43 said:

My SOA has very much been filled out as a "this is what I should be doing" as opposed to "this is what I am doing" yes. I set the money aside each month but it subsequently spent it - I appreciate this is not very helpful but its hard to put any figures on paper as my spending has been different month to month. I don't want to go into too much detail about how the money was wasted or exactly what on as I want to stay anonymous on this forum. I would say I have been overspending by £600/month for some time.

As EH has explained, you need to know where your money has been going, and identify those areas where your budget is still leaking money.

It's irrelevant to us whether you bought it, smoked it, experienced it, drank it or snorted it. We don't want or need to know, but you do. 

And you need to spot the latte habit that's totting up £80 a month or the tendency to buy nice presents for other people.

Next time you're bored, get out the last 6 months' statements are work through, allocating every spend to a budget line. Once you've done that you can start to turn those aspirations in achievable targets.

You may not get there first time; you may need to change tactics; change the payment date, only take out cash in certain circumstances, freeze the cards, but over time you'll find what suits you. 

You may be really bored by the end but you'll have the ammo needed make the changes you want.

kimwp

Hiya! Just popped in to say keep your spirits up, you're doing a great job of taking on board the feedback and putting together a good list of actions. I very much echo what the others have said - an accurate understanding of where you've spent money (whether you keep it to yourself or share it here) is really important so that you know what you need to do to cut back in each area to achieve your aspirational SOA. It's surprising how seemingly little spends can really add up. And being honest with ourselves can help us face an issue head on. Another practical job to add to the list - look into a water meter - my bill went from £45 to under £20 for two people - that's £300 a year I'd been spending for no reason.

Stateofart

kimwp said:

Hiya! Just popped in to say keep your spirits up, you're doing a great job of taking on board the feedback and putting together a good list of actions. I very much echo what the others have said - an accurate understanding of where you've spent money (whether you keep it to yourself or share it here) is really important so that you know what you need to do to cut back in each area to achieve your aspirational SOA. It's surprising how seemingly little spends can really add up. And being honest with ourselves can help us face an issue head on. Another practical job to add to the list - look into a water meter - my bill went from £45 to under £20 for two people - that's £300 a year I'd been spending for no reason.

Definitely second a meter, we halved our bills with no real difference in water usage.  I know the water companies are not too fond of them now as they've realised that people use less than typical rates.