We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

New here, desperate to get out of debt

Options
2456

Comments

  • kimwp
    kimwp Posts: 2,909 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    I don't think it's necessary to have a combined SOA, but it is simpler and if you are having a baby together, presumably your finances will become more entwined, particularly with her having a period of time on reduced pay during maternity leave.

    What is definitely necessary is for your SOA to accurately reflect your spend - this means going through your bank statements for the last 3-12 months and putting every spend in. If it was cash and you can't remember what it was for, create a new category called misc cash (but start keeping track of this.) Knowing what you spend on is the first step to getting spend and debt under control.
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • thank you all so very much, I am so grateful for your advice and input. The general consensus seems to be that my SOA is far from accurate (I think it is a budget that makes me feel good when I do it, but fails every single month so I am starting to realise I am living in a dream world!)

    I am in the process of going through 6 months worth of statements in order to put together an accurate monthly budget, to try to get out of the credit card cycle. Will do this then update again.

    Thanks again
    Starting debt June 2024 - £19,294.53 
    Dec 2024 - £12,321.17
    Jan 2025 - £11,487.28
    April 2025 - £9319.18
  • kimwp
    kimwp Posts: 2,909 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    thank you all so very much, I am so grateful for your advice and input. The general consensus seems to be that my SOA is far from accurate (I think it is a budget that makes me feel good when I do it, but fails every single month so I am starting to realise I am living in a dream world!)

    I am in the process of going through 6 months worth of statements in order to put together an accurate monthly budget, to try to get out of the credit card cycle. Will do this then update again.

    Thanks again
    Fab! Noone really has a good idea of what they spend until they dig out the actual numbers.
    If you are going to do six months of accounts, try to recall any unusual large spends in the other six months eg holidays,  Christmas spend, other half birthday month and include those as well. It's not super important, as you can add these as you go through the next six months, but the more knowledge you have, the better.
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • elsien
    elsien Posts: 35,953 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 25 November 2024 at 11:06PM
    It’s a work in progress.
    For example, if you asked, I would have said I spend very little on clothes. Then I checked and realised my charity shop habit was a lot worse than I thought it was. Plus, my rather more expensive walking gear that I decided to treat myself to because was in the sale  and “it was a bargain.”
    Which is when  I realised that  the amount I spend on “bargains” is ridiculous.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • please see my revised SOA below. Sadly with all of the numbers crunched, I am left with nothing! With Christmas around the corner, a baby due in April and upcoming mat leave, this makes me very nervous to see it all typed out. Any advice really welcome, again I am so grateful.

    I have left out my partners income and expenditure because we are paying off debts separately for now. Once I get mine paid off I will plan to redo a SOA and help her to clear hers.


    Statement of Affairs and Personal Balance Sheet


    Household Information

    Number of adults in household 2

    Number of children in household 0 (baby due April 2024)

    Number of cars owned 0


    Monthly Income Details

    Monthly income after tax 3124

    Partners monthly income after tax -

    Benefits 0

    Other income 0

    Total monthly income 3124


    Monthly Expense Details

    Mortgage 0

    Secured/HP loan repayments 0

    Rent 1000

    Management charge (leasehold property) 0

    Council tax 103.5

    Electricity 35.34

    Gas 26.75

    Water rates 19

    Telephone (land line) 0

    Mobile phone 16.18

    TV Licence 7.5

    Satellite/Cable TV 0

    Internet Services 16.5

    Groceries, takeaways 125 (we are going to aim for £250 total per month instead of previous £150 which we were constantly over-budget on)

    Clothing 0 (I am spending nothing on clothing at present)

    Other travel 125 (I am trying to cycle for commuting to save on this, but £50 was unrealistic)

    Medical (prescriptions, dentist etc) 5

    Pet insurance/vet bills 19.13

    Pet food 8

    Contents insurance 7.66

    Other insurance 6.64

    Entertainment 150

    Emergency fund 5

    Nursing fees 30.32

    Apple storage 2.99

    Spotify 11.99

    Extra paid towards joint account 225

    Total monthly expenses 1946.50


    Unsecured Debts

    Description

    Debt

    Monthly  payment

    APR

    Abound loan

    6004.64

    622

    12.2

    Plata loan

    1349.87

    260.90

    34.9

    Halifax CC

    1970.48

    50

    0 until August 2025

    Family member credit card

    2760

    150

    0 until August 2025

    Tesco credit card

    1140.96

    90

    28.94

    Total unsecured debts 13225.95

    Monthly payments 1172.90



    Monthly Budget Summary

    Total monthly income 3,124

    Expenses 1946.50

    Available for debt repayments 1177.50

    Monthly UNsecured debt repayments 1172.90

    Amount left after debt repayments 4.60


    Total Unsecured debt -13,225.95

    Net Assets -13,225.95

    Starting debt June 2024 - £19,294.53 
    Dec 2024 - £12,321.17
    Jan 2025 - £11,487.28
    April 2025 - £9319.18
  • elsien
    elsien Posts: 35,953 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I’m a little bit confused still about what the joint account is for because if you’re paying your share of all the bills anyway and those are all covered earlier in your SOA then what is the money going into the joint account paying for? 
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • kimwp
    kimwp Posts: 2,909 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 25 November 2024 at 11:37PM
    elsien said:
    It’s a work in progress.
    For example, if you asked, I would have said I spend very little on clothes. Then I checked and realised my charity shop habit was a lot worse than I thought it was. Plus, my rather more expensive walking gear that I decided to treat myself to because was in the sale  and “it was a bargain.”
    Which is when  I realised that  the amount I spend on “bargains” is ridiculous.
    Charity shops definitely a pitfall for me too - little and often can be a bad thing as well as good. Another thing is I tend to get a little treat meal for myself when I do the weekly shop- sometimes a few prepared snack items can add up to a quarter of the shop!
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • elsien said:
    I’m a little bit confused still about what the joint account is for because if you’re paying your share of all the bills anyway and those are all covered earlier in your SOA then what is the money going into the joint account paying for? 
    I pay my share of all the bills, but then also pay an extra £225 so that my partner can pay £225 less than me into the joint account. So I pay in £1600 per month, she pays in £1150 per month. The joint account is where all of our household bills, rent, groceries come out of. Hope that makes sense!
    Starting debt June 2024 - £19,294.53 
    Dec 2024 - £12,321.17
    Jan 2025 - £11,487.28
    April 2025 - £9319.18
  • dawnybabes
    dawnybabes Posts: 3,327 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Will your partner still be able to pay that when she starts maternity leave ? 
    Sealed pot challenge 822

    Jan - £176.66 :j
  • kimwp
    kimwp Posts: 2,909 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    please see my revised SOA below. Sadly with all of the numbers crunched, I am left with nothing! With Christmas around the corner, a baby due in April and upcoming mat leave, this makes me very nervous to see it all typed out. Any advice really welcome, again I am so grateful.

    I have left out my partners income and expenditure because we are paying off debts separately for now. Once I get mine paid off I will plan to redo a SOA and help her to clear hers.


    Statement of Affairs and Personal Balance Sheet


    Household Information

    Number of adults in household 2

    Number of children in household 0 (baby due April 2024)

    Number of cars owned 0


    Monthly Income Details

    Monthly income after tax 3124

    Partners monthly income after tax -

    Benefits 0

    Other income 0

    Total monthly income 3124


    Monthly Expense Details

    Mortgage 0

    Secured/HP loan repayments 0

    Rent 1000

    Management charge (leasehold property) 0

    Council tax 103.5

    Electricity 35.34

    Gas 26.75

    Water rates 19

    Telephone (land line) 0

    Mobile phone 16.18

    TV Licence 7.5

    Satellite/Cable TV 0

    Internet Services 16.5

    Groceries, takeaways 125 (we are going to aim for £250 total per month instead of previous £150 which we were constantly over-budget on)

    Clothing 0 (I am spending nothing on clothing at present)

    Other travel 125 (I am trying to cycle for commuting to save on this, but £50 was unrealistic)

    Medical (prescriptions, dentist etc) 5

    Pet insurance/vet bills 19.13

    Pet food 8

    Contents insurance 7.66

    Other insurance 6.64

    Entertainment 150

    Emergency fund 5

    Nursing fees 30.32

    Apple storage 2.99

    Spotify 11.99

    Extra paid towards joint account 225

    Total monthly expenses 1946.50


    Unsecured Debts

    Description

    Debt

    Monthly  payment

    APR

    Abound loan

    6004.64

    622

    12.2

    Plata loan

    1349.87

    260.90

    34.9

    Halifax CC

    1970.48

    50

    0 until August 2025

    Family member credit card

    2760

    150

    0 until August 2025

    Tesco credit card

    1140.96

    90

    28.94

    Total unsecured debts 13225.95

    Monthly payments 1172.90



    Monthly Budget Summary

    Total monthly income 3,124

    Expenses 1946.50

    Available for debt repayments 1177.50

    Monthly UNsecured debt repayments 1172.90

    Amount left after debt repayments 4.60


    Total Unsecured debt -13,225.95

    Net Assets -13,225.95

    Great start, I'm impressed that you managed to get six months together so quickly! 

    It feels like you are verging on not having enough to service your debts and living if you are giving that £225 to your partner to help pay her debts. And if you are just paying the minimums and not the debt capital, then there's a high chance that your debt will increase.

    What is your actual spend on groceries and takeaways (as two separate numbers) rather than your intended budget? Are any other items on there an intended budget rather than a true reflection of your spend?
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.8K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.8K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 257.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.