Debt, Endo and Reno

birdsfoottrefoil

So the forum tells me today is my one year anniversary. So it’s probably time for a bit of a look back and forward.

Negatives:

- I have increased my debt by about 5K - not great to admit it. However this has primarily been costs on the house and a few dental/car etc disasters along the way which has limited my ability to pay off more. Definitely need to prioritise saving an emergency fund once the house is let.
- House is still not finished
- Down to no savings this month.

So that all sounds like there’s no progress or doom and gloom. But I think without the diary I wouldn’t be as close with the house and my debt would have been much worse.

Positives:

- House is nearly there!!!
- Roughly 4.5K of the debt is on necessary house spends ie new bathroom, boiler problems and flooring. I think I’ve had good value on this and the extra debt hasn’t just been coffees and clothes. Admittedly this should be better as I’ve been paying off as well. So really this that’s an extra 3K….. that I’ve spent and paid off. Not good.
- Having a diary and recording my spends in a spreadsheet has made me realise how TERRIBLE I was with money. Was routinely spending 1k plus over my salary each month with nothing to show for it. This is now much better, still some over spends like last month and December but generally I’ve learnt to budget. I know that sounds ridiculous for someone who’s lived away from home for 14 years, but I clearly had no clue.

Looking Forward:

- I’ve got a deadline of mid July on the house so it HAS to be done, I’ve painted once set of flooring upstairs last weekend and this week. So need to get the other done this weekend/next week. I’ve got a fairly low key Birthday party to attend on Saturday and a hospital appt, so I’ll eat mark some evenings next week as well. The BF was working away this week, so I should have more time next week as he can make supper and walk the dogs some nights. 

- Keep on with the spreadsheet.
- Make sure I’m not just spending what I pay off
- Build some savings, also have 2 pots one for emergencies and one for presents/a holiday.
- Once it’s let stick to current budget and over pay!!!
- longer term I’d like to retrain as a nurse…. Need to be letting the house out to be able to go back to study. Definite motivation!!!

So not the greatest but I think things would be much worse without this. Also aware that if I’d been better and more honest with myself about money pre-Covid I’d not be in this situation now and would be in the position where I could have nice holidays and overpay my mortgage. 

twiggy86

I wonder if it's worth you working out exactly how much you've spent on the house and if this will help with your motivation? For example, your debt may have increased by £5k but you've spent £10k on the house meaning you've managed to cash flow £5k worth of work whilst also maintaining life? If that makes sense! I did it as I felt I hadn't made as much progress as I'd have liked when I was solely looking at the debt figure, but when you look at the bigger totals it doesn't feel so bad. 

However, even though your debt has increased it sounds like you are actually in a much better position - as in you know where your money goes and have a plan! So well done! 

birdsfoottrefoil

Soooo… very long gap since posting! 

Didn’t feel like I should as my debt had just been growing. However, the house is let!!!!! 

Cost me more to get it over the line than expected, so debt is at just under 28k. All I can say is towels and things like that that you have to buy new are so expensive!!!

The plan going forward:

- struggle through this month as I’m completely spent up to get it over the line and no money comes in till September. Have £150 in bank and £800 space on final credit card if a disaster happens. 

- should have an £1000 come in from the house at the beginning of September (it’s weird that it’s let out but yet to see any improved finances). Planning to put £500 in savings (I want to build up a buffer of £1000 before I fully focus on paying debt down) £300 towards debt, £100 to BF (agreed I’d contribute more to household once it was let, this will increase once more debt is paid off) and £100 extra towards my living costs/current account as clearly I’ve been spending on cards and I want to give myself more of a buffer. 

- once savings are at £1000, then split extra income as so 1/2 to debt, 1/4 to tax and repairs fund. Then of the final 1/4 £100 to BF, £100 to current account, rest to savings.

As for the credit cards I want to pay off Tesco first as it has interest on part of it and it’s a smaller amount. Also hoping if I can pay that off fully then they should offer me a balance transfer so I can transfer some of the other interest accruing amounts to that.

I may to a full list of balances today but if not before pay day.

birdsfoottrefoil

So…. here we are.

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

Monthly Income Details[/b]

Monthly income after tax................ 2436

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 600[b]

Total monthly income.................... 3036[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 640

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 133

Electricity............................. 40

Gas..................................... 0

Oil..................................... 150

Water rates............................. 27.6

Telephone (land line)................... 0

Mobile phone............................ 34

TV Licence.............................. 19

Satellite/Cable TV...................... 0

Internet Services....................... 29

Groceries etc. ......................... 250

Clothing................................ 20

Petrol/diesel........................... 150

Road tax................................ 22.31

Car Insurance........................... 38

Car maintenance (including MOT)......... 50

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 90

Pet insurance/vet bills................. 38.9

Buildings insurance..................... 23.35

Contents insurance...................... 0

Life assurance ......................... 25.83

Other insurance......................... 0

Presents (birthday, christmas etc)...... 30

Haircuts................................ 50

Entertainment........................... 120

Holiday................................. 30

Emergency fund.......................... 20

Other half.............................. 100

NT...................................... 7.6

Netflix................................. 9

Disney.................................. 4.99

Apple................................... 12.99

Pet/poultry other....................... 20[b]

Total monthly expenses.................. 2185.57[/b]

[b]

Assets[/b]

Cash.................................... 800

House value (Gross)..................... 225000

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

Car(s).................................. 800

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

Total Assets............................ 226600[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 113818...(640)......4.2[b]

Total secured & HP debts...... 113818....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Halifax........................4398......75........6.9

L CC 1.........................1177......50........21

L CC 2.........................5366......135.......0

S Loan.........................4180......156.......20.89

S CC ..........................5330......14........18

T CC3 .........................4095......40........0

T CC 2.........................1543......43........22

T CC1..........................2312.23...70........22[b]

Total unsecured debts..........28401.23..583.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,036

Expenses (including HP & secured debts). 2,185.57

Available for debt repayments........... 850.43

Monthly UNsecured debt repayments....... 583[b]

Amount left after debt repayments....... 267.43[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 226,600

Total HP & Secured debt................. -113,818

Total Unsecured debt.................... -28,401.23[b]

Net Assets.............................. 84,380.77[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

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

birdsfoottrefoil

I’ve updated some of my outgoings (oil, groceries, electric etc).

I’ve estimated the extra amount. I’ve put this at £600pm but hopefully this should go up once I’ve saved over £1000. I’ve also estimated my salary as we’ve just had our wage for this year confirmed and the back pay for the year in our pay, so I’m not 100% sure what it will be next month without the back pay. 

I’m hoping this will be the highest point of my debt and I’m pleased that for the first time in MONTHS!! I’ve not spent on my CC since I had some extra income come in from the cottage in the middle of the month (thankfully earlier than expected!)

As per the savings didn’t manage to save as much of the income that came from the house as hoped as I had a to buy a new dishwasher, big positive though that this could come out of the money from the house rather then going on the credit card. 

Should have regular amounts start to come in from the house in mid September, I’m aiming to be able to put about a 1/4 of the income against my debt as it comes in. I’ll prioritise the interest baring credit cards first.

Not entirely sure how this will go but will update after I’ve had some bookings through in September.

birdsfoottrefoil

Just realised I should have probably put all the extra income in and then split it out for going into savings/fund for house repairs/tax; however I do not have the brain power for that this morning!!! So estimating it to be about £1000-£1900pm, however still unsure.

vampirotoothus

Hi it's not clear if the SOA is just for you or for you both, as you mention giving your b/f an extra £100 to up your contribution. If it's your half then some of these numbers are really high when doubled (ie groceries would then be £500 pcm). Also if this is just yours why does it have council tax if the property is rented out. As I said it's not clear to me, but if it is to you then that's fine. Well done on getting the house rented, you must be really happy to have got that over the line V x 

birdsfoottrefoil

Hi @vampirotoothus so it’s probably a bit of an odd SOA! So I have always done most of the grocery shopping so that’s for both of us. We did agree that once I’d got the house finished I’d contribute a bit more which is the £100. All the other payments are to cover costs at my house or my personal bills. With the council tax I have to have let it out for about 6 months before I can apply for business rates so until then I’m paying council tax. I hope that makes a bit more sense!

birdsfoottrefoil

Did a big shop on Friday (£94) and treated myself and BF to a nice bottle of wine (£23). It’s one of my indulgences and we have a really good wine shop locally, so I like to pop in after pay day for a treat. I know it sounds a lot but I never buy wine when I’m “out” as contradictory as it is I think it’s often too expensive for what it is in pubs! I also bought a cheaper bottle of wine (£10) as we’d been invited round to a neighbours for some supper on Friday night. Which was lovely… though I probably sound a bit mean getting a cheaper bottle for other people!!

Saturday, took my nephews out for the day to a local agricultural show. About £38, including tickets and something to eat. I don’t think it’s too bad for all of us and I’ve not taken them out all summer so nice to have a day with them.

No spend day today! Cleaning the cottage this morning (or should be, I’ve no one in till next week so it’s not urgent and I’m feeling hormonal and like I’m starting with a cold. So really I’m just going to strip beds etc and chill out!) then going to go pick some brambles etc this afternoon. Hopefully this should even out the spends over Friday/Saturday

On the supper on Friday, I’ve recently been diagnosed with ADHD. Super lucky as it was through the NHS! I’m still debating on medication as I’ve family history with aneurysms and stokes etc. It’s no surprise at all to family, BF or close friends but I’ve found acquaintances or less close friends really doubting or “isn’t everyone on the spectrum”. As I don’t think I fit the stereotype outwardly to people I don’t see regularly probably as I’m quite good at hiding it or that people seem to think if you have a job and hobbies you must be fine (little do they know about the reality). So I’ve just not been telling people, it slipped on Friday and I had a 10 minute “lecture” by one of them (both work in the NHS as a nurses) about why they didn’t think I was ADHD or I must be highly medicated or really good at masking. It’s !!!!!! me off tbh! BF is quite “don’t let it bother you as what can you expect”. 

in_need_of_direction

Be grateful you didn’t bring the expensive wine