I shouldn't feel skint ...

Little_bit_taller · 8 December 2023 at 8:16PM

Also are you able to make a few quid from switching bank accounts?

TheAble · 9 December 2023 at 1:49AM

Little_bit_taller said:

Also are you able to make a few quid from switching bank accounts?

Op doesn't really have an income problem tbh. It's getting a grip on the spending that's the priority.

kimwp · 9 December 2023 at 9:12AM

Just pondering the car insurance numbers- you said you paid £650 this year (which still feels a bit high, are you using price comparison websites?) - but you've put the monthly cost as £89, which totals £1068 for the year?

PedroMatias · 9 December 2023 at 4:22PM

Out of interest, does your employer offer a car salary sacrifice scheme?

An electric car salary sacrifice is a great way of saving a lot of cash while BIK remains low, especially for a relative high earner like yourself, and would free up a big chunk of cash to pay down the majority of your debt.

Little_bit_taller · 9 December 2023 at 9:02PM

TheAble said:

Little_bit_taller said:

Also are you able to make a few quid from switching bank accounts?

Op doesn't really have an income problem tbh. It's getting a grip on the spending that's the priority.

The Op is in debt so can use additional sources of income to pay off the debt should they wish.

Floss · 9 December 2023 at 9:33PM

Little_bit_taller said:

TheAble said:

Little_bit_taller said:

Also are you able to make a few quid from switching bank accounts?

Op doesn't really have an income problem tbh. It's getting a grip on the spending that's the priority.

The Op is in debt so can use additional sources of income to pay off the debt should they wish.

With a monthly income of over £4,300, they are in a very good position to get a grip on their debt.

enthusiasticsaver · 9 December 2023 at 10:22PM

chemteacher78 said:

SOA - I found it incredibly hard to put this all down:

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

Monthly Income Details[/b]
Monthly income after tax................ 4327.66
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 4327.66[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 1272
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 164
Electricity............................. 145
Gas..................................... 0
Oil..................................... 0
Water rates............................. 7
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 13.25
Satellite/Cable TV...................... 19.98
Internet Services....................... 30
Groceries etc. ......................... 200
Clothing................................ 100
Petrol/diesel........................... 180
Road tax................................ 15.75
Car Insurance........................... 89
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 22
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20.7
Life assurance ......................... 0
Other insurance......................... 26
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 200
Holiday................................. 60
Emergency fund.......................... 250[b]
Total monthly expenses.................. 2914.68[/b]
[b]

Assets[/b]
Cash.................................... 1694.74
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 15000
Other assets............................ 0[b]
Total Assets............................ 316694.74[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 238000...(1272).....3.43[b]
Total secured & HP debts...... 238000....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Virgin.........................2763.07...25........0
Barclaycard....................5299.37...198.7.....0
First direct loan..............13703.....144.8.....8.7
Furniture village..............0.........45........0
Ikano..........................1060......60........0
First direct loan..............8445.6....175.9.....8.7[b]
Total unsecured debts..........31271.04..649.4.....- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 4,327.66
Expenses (including HP & secured debts). 2,914.68
Available for debt repayments........... 1,412.98
Monthly UNsecured debt repayments....... 649.4[b]
Amount left after debt repayments....... 763.58[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 316,694.74
Total HP & Secured debt................. -238,000
Total Unsecured debt.................... -31,271.04[b]
Net Assets.............................. 47,423.7[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

I won't comment too much on the individual budget lines as you have already had some good suggestions.

Were the loans debt consolidation loans. If they were that indicates a pattern of behaviour it would be good to break. Debt consolidation never works in reducing debt. It just kicks the can down the road so instead of dealing with £10k of debt a few years later you have £30k+ I assume maybe your car was bought using the loan too which is no bad way to buy a car but I strongly suggest you sort the credit card debt out before the 0% deals finish.

I would suggest you set the credit card repayments so that the debts are repaid by November 25 in the case of Virgin and January 2026 for Barclaycard. That would mean upping the Virgin card repayment to £115 and the Barclaycard repayment to £204. Any extra money you can throw at the debt I would pay off one of the FD loans maybe the smallest one to start with. Your soa suggests you could easily afford an extra £500 towards the debt even without saving on clothing and insurance, the two areas I would target. I would also reduce the money to your emergency fund to £100 a month as undoubtedly you are paying higher interest on the loan than you get on savings. I would definitely suggest you get that debt down as far as possible before your mortgage renews as unless rates drop again(unlikely) you will be paying more than 3.43%.

You have a high income so that is good but learning to live without credit may be difficult if this is something you have always done. Starting a diary is a good suggestion and I can request this thread be moved to the diaries section if you wish.

chemteacher78 · 10 December 2023 at 12:00PM

TheAble said:

Little_bit_taller said:

Also are you able to make a few quid from switching bank accounts?

Op doesn't really have an income problem tbh. It's getting a grip on the spending that's the priority.

Exactly! Having calmed down a bit, it has been very useful to do an SOA and really get to grips with where I am. As it is, I'm aware I am in a good position to deal with this (assuming I don't get fired next week). I'm just so CROSS at myself for having not faced the reality sooner.

chemteacher78 · 10 December 2023 at 12:02PM

kimwp said:

Just pondering the car insurance numbers- you said you paid £650 this year (which still feels a bit high, are you using price comparison websites?) - but you've put the monthly cost as £89, which totals £1068 for the year?

I've added in my payments to the RAC into that amount. The breakdown cover is bundled into my insurance cost, it's not up for renewal until next August unfortunately, but I will defintely be looking to get the cost of both down.

chemteacher78 · 10 December 2023 at 12:04PM

PedroMatias said:

Out of interest, does your employer offer a car salary sacrifice scheme?

An electric car salary sacrifice is a great way of saving a lot of cash while BIK remains low, especially for a relative high earner like yourself, and would free up a big chunk of cash to pay down the majority of your debt.

It doesn't unfortunately. Am also a bit dubious about an electric car at present. I live in the Dales, so really do feel I need something that can cope with difficult weather (I have definitely needed by AWD every winter I've been here). I also don't have somewhere I could easily charge overnight...,

I shouldn't feel skint ...

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