Boring Diary

HeavyMetalFan · 2 September 2024 at 6:30PM

I used to frequent these forums about ten years ago but started to drop off in 2016. I got myself into a situation where I didn’t have a lot of debt, but the monthly payment was high for my income at the time. The diary fell by the wayside and after coming to the realisation that I will never be able to afford to move house, I pretty much gave up on my finances which resulted in me receiving two CCJs in 2018.

The situation continued until 2021 until I decided that I wanted to be a “proper” person again and manage my finances. This brings me to the present position. Unfortunately I did not read the forums at this time and I made the stupid mistake of chasing my credit rating i.e taking out credit to have a credit history. Stupid decision. So now I’m paying it back.

I will post a full SOA but this is a brief summary:-

Net monthly salary- £2,242
Mortgage - £362 😂

CC1 - £19
CC2 - £28
CC3 - £569 34.9%
CC4 - £1,036 0% until August 2023
L1 - £1,621
L2 - £936 (not including interest)
L3 - £938 (not including interest)
Cash - £2,100

CC3 has an outstanding balance for a mountain bike, CC4 has my football season ticket, a guitar and my home insurance on there.

I took three loans out for £1000 in a short space of time and spent the money on a new boiler but really I should have used the cash I already have. Stupid decisions really but the total payments are only £91 a month so it’s not too much of a pain but it is stupid.

I get paid on the 20th of the month and have £428 to last until then. Time to make a plan.

Sarahwithlove · 2 September 2024 at 6:34PM

If that's your mortgage costs, can't wait to see SOA to see where you are spending your money

WinterWarrior · 2 September 2024 at 7:54PM

You have a lovely low mortgage payment. I’d be tempted to keep £1000 in cash as an emergency fund and clear off the 3 smallest cards and part of the 4th cc. It will seem much nicer having less balances to worry about.

MFWannabe · 2 September 2024 at 8:18PM

I would definitely pay off cc’s 1, 2 and 3 and close them
Also fill in and post an soa so we can see where all your money is being spent

HeavyMetalFan · 2 September 2024 at 8:50PM

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

Household Information[/b]

Number of adults in household........... 1

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

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

Monthly Income Details[/b]

Monthly income after tax................ 2242

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

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

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

Total monthly income.................... 2242[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 359

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

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

Management charge (leasehold property).. 0

Council tax............................. 90

Electricity............................. 90

Gas..................................... 70

Oil..................................... 0

Water rates............................. 26

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

Mobile phone............................ 10

TV Licence.............................. 13.26

Satellite/Cable TV...................... 105

Internet Services....................... 0

Groceries etc. ......................... 180

Clothing................................ 100

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

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

Other travel............................ 44

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

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

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 30

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

Life assurance ......................... 0

Other insurance......................... 15

Presents (birthday, christmas etc)...... 25

Haircuts................................ 5

Entertainment........................... 420

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

Emergency fund.......................... 120

Savings (not accessible) ............... 300[b]

Total monthly expenses.................. 2032.26[/b]

[b]

Assets[/b]

Cash.................................... 2100

House value (Gross)..................... 110000

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

Car(s).................................. 0

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

Total Assets............................ 112100[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 46859....(359)......5.9[b]

Total secured & HP debts...... 46859.....-.........- [/b]

[b]Unsecured Debts[/b]

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

CC1 ...........................569.......28........34.9

CC2............................1036......25........0

Loan 1.........................1621......33.02.....0

Loan 3.........................936.......33.09.....0

Loan 2 ........................938.......29.6......0[b]

Total unsecured debts..........5100......148.71....- [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,242

Expenses (including HP & secured debts). 2,032.26

Available for debt repayments........... 209.74

Monthly UNsecured debt repayments....... 148.71[b]

Amount left after debt repayments....... 61.03[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 112,100

Total HP & Secured debt................. -46,859

Total Unsecured debt.................... -5,100[b]

Net Assets.............................. 60,141[/b]

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

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

HeavyMetalFan · 2 September 2024 at 8:53PM

£61 left over sounds about right. I normally put that in my EF or overpay on my mortgage but I’ll start putting it towards my second largest credit card.

Sarahwithlove · 2 September 2024 at 9:07PM

Gonna jump straight in. Tv services, that is alot. What do you have? Are you still in a contract? Does it include other subscriptions?
Also clothing £100 a month again is a lot. Maybe do a wardrobe once over to see if anything you don't wear that could maybe sell? Look for cheaper alternatives until you are debt free.
Entertainment - again that's a lot of money. Something may need to change. I have a personal spending money pot of £150 p/m for my entertainment!
Your SOA seems to be for someone who is debt free and allowing themselves more fun money as a result.

HeavyMetalFan · 2 September 2024 at 9:18PM

TV is all services with Virgin - TV, internet and landline- yep I’ve still got one of those.

I can easily cut the clothing down to zero tbh. I need some winter footwear and I’m getting that when I get my bonus but I don’t need anything else.

MFWannabe · 2 September 2024 at 9:28PM

HeavyMetalFan said:

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

Household Information[/b]
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... [b]

Monthly Income Details[/b]
Monthly income after tax................ 2242
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2242[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 359
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 90 - This is very high for one person
Gas..................................... 70 - This is very high for one person
Oil..................................... 0
Water rates............................. 26
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 13.26
Satellite/Cable TV...................... 105 - This is very high - I assume you are out of contract? Do you actually watch all channels? You need to urgently look at this
Internet Services....................... 0
Groceries etc. ......................... 180
Clothing................................ 100 - This is very high, look through your wardrobe to see what you already have, could easily cut this amount in half
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 44
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30 - This is very high, shop around when your renewal is due. Does this also include contents insurance?
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 15. - What is this for?
Presents (birthday, christmas etc)...... 25
Haircuts................................ 5
Entertainment........................... 420 - This is very high and could easily be cut in half. Do you really spend £100 per week?
Holiday................................. 30 - This is very low, is this accurate?
Emergency fund.......................... 120 - Are you actually saving this?
Savings (not accessible) ............... 300[b]
Total monthly expenses.................. 2032.26[/b]
[b]

Assets[/b]
Cash.................................... 2100 - Is this accessible?
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 112100[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 46859....(359)......5.9[b]
Total secured & HP debts...... 46859.....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
CC1 ...........................569.......28........34.9
CC2............................1036......25........0
Loan 1.........................1621......33.02.....0
Loan 3.........................936.......33.09.....0
Loan 2 ........................938.......29.6......0[b]
Total unsecured debts..........5100......148.71....- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,242
Expenses (including HP & secured debts). 2,032.26
Available for debt repayments........... 209.74
Monthly UNsecured debt repayments....... 148.71[b]
Amount left after debt repayments....... 61.03[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 112,100
Total HP & Secured debt................. -46,859
Total Unsecured debt.................... -5,100[b]
Net Assets.............................. 60,141[/b]

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

Hi. I’ve made some comments above in your soa
I totally agree with Sarah, you are spending as if you are debt and carefree

Also your soa doesn’t match your first post, number of credit cards doesn’t match? You have 4 in your original post but only two in your soa

HeavyMetalFan · 2 September 2024 at 9:45PM

Do you think £160 is high for G and E? I thought I was doing quite well with that.

I’ve looked at reducing the virgin package but with the way they get you, you don’t really save anything unless you get the most basic package. I think the broadband accounts for half the cost.

I’m going to reduce clothes spending to zero for at least six to eight months.

Buildings insurance does include contents. I agree it’s high but I tried three or four providers and they were all about 350 for the year.

Other insurance is mortgage protection in case of redundancy.

I do save the £120 - that’s why I have a £2,100 EF which I do have access to.

I didn’t bother putting the other two CCs on the SOA with them being £46 in total.

MFWannabe · 2 September 2024 at 9:59PM

You need to pay off the two small credit cards and the high interest one, there’s no point paying high interest when you have savings
Yes I do think you gas and electric are high, are you in credit?

Are you out of contract with virgin? You can negotiate a new deal, you need to threaten to leave
Well done reference clothing budget

You can sort out your debts relatively quickly by making cutbacks
Also you need to budget and live within the budget to stop relying on credit

Boring Diary

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free