I shouldn't feel skint ...

chemteacher78

Little_bit_taller said:

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

I could, but I also have enough to address the problem. And shouldn't have relied on credit for at least the past five years or so. 

chemteacher78

enthusiasticsaver said:

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. 

Thak you for this really useful advice!

The loans weren't consolidation loans, no. One (the larger one) was for work on my house. The other is a car loan. Thakfully I love my car, and it's super reliable. I have no intention of 'upgrading' it etc. The plan is to look after it well, and keep it running for as long as it is economic to do do. 

I agree re. the credit card debt. at the moment the plan is to throw as much as I can at it to clear it in 2024. Then I'll tackle the small FD loan, so that my car is paid off. I'm currently paying off the Barclaycard at £325 a month, so will increase that next month. I'll also reduce the saving into my emergency fund to £100.

I am aware of mortage rates, and also am aware that I've probably almost reached the ceiling for my income. I'm pretty much at the top of my profession, so am unlikely to increase that much further. The plan, eventually, is to start to put more money into it each month to bring the captial down before I need to remortage. 

Please do transfer this to the diaries section - I'd really like to track how I am doing and have found people to be really supportive on here. 

Right - off to look at a Monzo or Starling account so I can really carefully manage budgets from next month. I like the sound of pots! (And will also spend a bit of time setting up a spreadsheet). 

katsu

To manage the spend on clothes etc, develop a personal style so you are still looking smart (I get what you mean about some jobs and environments requiring a style of dress) but you don't have to keep up with new clothes as much as your smart style is more personalised and not just new suits.

The car and house work plus buying furniture and whatever else suggests you aren't thinking about budgeting in terms of what you'll need in future. Do get a handle on your daily spending budgets and monthly spending but then think about what else you need to save up for. 

Your current car won't last you the rest of your life, so how much do you need to save for the future for a new car? What will you want to do in your house in future or need? 

Are you saving into your pension at work at more than just minimums?

You can't fix all these things today, but as you get the debt and daily spending in hand, you can start to think about what you want to do and how you further adjust your spending for after you've cleared this debt. 

It looks like you've not been a saver but the debt clearing mindset can get you there! 

chemteacher78

katsu said:

To manage the spend on clothes etc, develop a personal style so you are still looking smart (I get what you mean about some jobs and environments requiring a style of dress) but you don't have to keep up with new clothes as much as your smart style is more personalised and not just new suits.

The car and house work plus buying furniture and whatever else suggests you aren't thinking about budgeting in terms of what you'll need in future. Do get a handle on your daily spending budgets and monthly spending but then think about what else you need to save up for. 

Your current car won't last you the rest of your life, so how much do you need to save for the future for a new car? What will you want to do in your house in future or need? 

Are you saving into your pension at work at more than just minimums?

You can't fix all these things today, but as you get the debt and daily spending in hand, you can start to think about what you want to do and how you further adjust your spending for after you've cleared this debt. 

It looks like you've not been a saver but the debt clearing mindset can get you there! 

I think you've hit the nail on the head there - I have never been much of a saver. 

I think the car and house have been linked to moving up North, and getting a bigger and and house. There is more work I'd like to do in the furture, but not lots. Once I've cleared the credit cars, furniture loands and car loan then I intend to set up a savings account towards the next car (I do think it has a fair few years in it yet. It's a 68 plate and a very reliable model...,).

Thankfully I have a good pension (public sector - not gold-plated but probably sterling silver) and have been paying into it steadily for over 15 years now. I am not worried about retirement at the moment. It would be nice, when I get to that stage, to be well out of debt, and I plan to be mortage free (I imagine I'll be able to cover at least some of my mortage balance from inheritance (hopefully long) into the furture).  

I want to get on top of the daily and monthly spending, as it is clear I have been frittering cash away for a long time - hence the post on here. Doing an SOA was a bit of a shocker, but also very useful. 

Onwards and upwards...,

Little_bit_taller

Floss said:

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.

BUT they are in debt and any additional payments will help them save money so am not sure what the issue is. It they get a grip of their spending and learn other skills such as looking for other sources of money then I am not sure what the issue is.

Floss

chemteacher78 said:Little_bit_taller said:

Floss said:

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.

BUT they are in debt and any additional payments will help them save money so am not sure what the issue is. It they get a grip of their spending and learn other skills such as looking for other sources of money then I am not sure what the issue is.

Little_bit_taller said:

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

I could, but I also have enough to address the problem. And shouldn't have relied on credit for at least the past five years or so. 

I think the OP has addressed your suggestion. 

Little_bit_taller

Floss said:

chemteacher78 said:Little_bit_taller said:

Floss said:

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.

BUT they are in debt and any additional payments will help them save money so am not sure what the issue is. It they get a grip of their spending and learn other skills such as looking for other sources of money then I am not sure what the issue is.

Little_bit_taller said:

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

I could, but I also have enough to address the problem. And shouldn't have relied on credit for at least the past five years or so. 

I think the OP has addressed your suggestion. 

Floss said:

chemteacher78 said:Little_bit_taller said:

Floss said:

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.

BUT they are in debt and any additional payments will help them save money so am not sure what the issue is. It they get a grip of their spending and learn other skills such as looking for other sources of money then I am not sure what the issue is.

Little_bit_taller said:

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

I could, but I also have enough to address the problem. And shouldn't have relied on credit for at least the past five years or so. 

I think the OP has addressed your suggestion. 

If you have over a certain amount of income then you can claim these bonuses, Martin Lewis is clear on this. Why is my suggestion an issue? I know the OP has enought but they could clear the debt earlier with this hack - anyone would be mad not too.

Floss

chemteacher78 said:

Little_bit_taller said:

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

I could, but I also have enough to address the problem. And shouldn't have relied on credit for at least the past five years or so. 

As the OP has said, he has enough income to sort his problems without needing to switch.

Little_bit_taller

Floss said:

chemteacher78 said:

Little_bit_taller said:

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

I could, but I also have enough to address the problem. And shouldn't have relied on credit for at least the past five years or so. 

As the OP has said, he has enough income to sort his problems without needing to switch.

Am not sure what is going on here. I made my suggestions without prejudice. The criticism of my comments seems to be based on the OP having a good income. So what? The suggestions are valid and workable. If the OP doesn't want to take up the suggestions no problem. Am not sure why some people are gate keeping the thread.

TheAble

Little_bit_taller said:

Floss said:

chemteacher78 said:

Little_bit_taller said:

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

I could, but I also have enough to address the problem. And shouldn't have relied on credit for at least the past five years or so. 

As the OP has said, he has enough income to sort his problems without needing to switch.

Am not sure what is going on here. I made my suggestions without prejudice. The criticism of my comments seems to be based on the OP having a good income. So what? The suggestions are valid and workable. If the OP doesn't want to take up the suggestions no problem. Am not sure why some people are gate keeping the thread.

Your suggestions aren't without merit - I think all we're saying is that perhaps they may have their place further down the line, but they aren't an immediate priority. It's never really made any appeal to me but I would guess you can only play the bank account switching game so many times so if you are going to do it you should probably choose your moments judiciously.